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Federal Judge Approves $2.75 Million Settlement in Super 8 Litigation

Mar 1, 14

Johnson, Abdallah, Bollweg & Parsons, LLP is pleased to announce that a $2.75 million settlement reached between Super 8 Motels, Inc. and a class of 160 franchisees has been approved the federal district judge overseeing the litigation.

Johnson, Abdallah, Bollweg & Parsons, LLP represented the franchisees in this nationwide class action alleging that Super 8 required them to pay additional mandatory fees in violation of their standard franchise agreements. Specifically, the plaintiffs contended that the imposition of a new mandatory monthly fee of five percent of gross room sales for customers enrolled in the hotel chain's point-based loyalty rewards program was not authorized by their franchise agreements.

The case was brought in South Dakota because Super 8 was originally started by two South Dakotans over a cup of coffee in Aberdeen. The hotel chain was called Super 8 because the original price of rooms was $8.88 per night. Although Super 8 was later sold to Cendant Corporation in New Jersey and then, later, to Wyndham Worldwide, the class members were still operating under their South Dakota contracts. Seven of the class members are in South Dakota, including two in Sioux Falls and one each in Wagner, Winner, Murdo, Wall and Sturgis.

U.S. District Judge Lawrence L. Piersol granted partial summary judgment to the franchisees on liability. The parties then reached a settlement on June 24, 2010.

Scott Abdallah and Ron Parsons of Johnson, Abdallah, Bollweg & Parsons, LLP represented the franchisees.

Bird Hotel Corp. v. Super 8 Motels, Inc., United States District Court for the District of South Dakota, Civ. 06-4073.

It is great to work with the attorneys at Johnson, Janklow, and Abdallah. They always provide excellent advice and service that is second to none.

Mike Miller | former NBA player

The lawyers at Johnson, Janklow, and Abdallah are consistently ranked as the top business lawyers in the state. Our business can always count on them to aggressively fight for our rights and provide straight-forward advice on complex issues.

Mark McNeary | Primrose Retirement Communities, LLC

Lawyers from Johnson, Janklow, and Abdallah regularly participate in legal education by judging intramural student skills competitions; helping prepare our nationally competitive litigation skills teams; serving or leading the South Dakota State Bar's Law School Committee; and, from time to time , providing guest lecturers. The Law School is grateful for the generous participation of lawyers like those from Johnson, Janklow, and Abdallah.

Tom Geu | former Dean, USD School of Law