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Haynes and Boone Team Obtains Favorable Result in Lawsuit Over Passport Health Franchise Agreement
12/21/2011

DALLAS – Haynes and Boone, LLP attorneys have secured a favorable court decision for client Passport Health, Inc., a franchisor of travel health services, in its lawsuit against a franchisee for breach of contract and violation of trademark.

The Haynes and Boone team -- Partner Aimee Furness of Dallas and Associate Jason Gonder of the firm’s Silicon Valley office -- obtained more than $400,000 in damages and lost profits for Passport Health in addition to more than $175,000 in fees and costs.

Passport Health brought the case (No. 2:09-cv-01753-GEB-JFM) against Travel Med, Inc. in June 2009 in the U.S. District Court for the Eastern District of California. It alleged that the franchisee, without warning, terminated a 10-year franchise agreement. Passport Health’s lawsuit sought a permanent injunction against use of its trademarks, and recovery of past and future royalties owed by Travel Med. 

Travel Med had several affirmative claims in the lawsuit including breach of the franchise agreement, breach of the implied covenant of good faith and fair dealing, breach of fiduciary duty, intentional interference with prospective business advantage, trade libel and unfair business practices.

 

Each of Travel Med's affirmative claims was either dismissed by the court or by Travel Med. 

 

After trial, the court awarded Passport Health $279,798 in damages for breach of the franchise agreement and breach of the guaranty. That amount included both past due and future royalties under the agreement. 

 

The court further awarded Passport Health $157,110 calculated from the franchisee's profits for trademark infringement for April through June 2009. It also issued a permanent injunction against the franchisee designed to prevent further use of Passport Health's trademarks. 

 

Finally, the court awarded Passport Health $175,712 in fees and costs incurred by Passport Health in bringing the case. 

 

Haynes and Boone, LLP and Jan Gilbert have represented Passport Health for more than 7 years.

 

About Haynes and Boone

 

Haynes and Boone, LLP is an international corporate law firm with offices in Texas, New York, California, Washington, D.C., Mexico City and Moscow, providing a full spectrum of legal services. With more than 525 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal. The firm has been named one of the "Best Corporate Law Firms in America" (Corporate Board Member Magazine, 2001-2011) and recognized as a “Top 20 Law Firm” for culture and for diversity with respect to both women and minorities (Vault, 2012). For more information, visit www.haynesboone.com.