Domino's Pizza v. McDonald
Heads up for any black companies, lawyers, doctors, accountants, IT professional or temporary employees. I heard about this case on Tavis Smiley show a year ago and just checked up on it recently. It has far reaching negative implications for us doing business or working.
http://www.law.cornell.edu/supct/cert/04-593.html
Background:
Domino's Pizza, Inc. ("Domino's") entered into four contracts with JWM Investments, Inc. ("JWM") under which JWM was to build restaurants and lease them to Domino's. Respondent John McDonald, an African-American, was the sole officer, director, and stockholder of JWM. Under the contract, Domino's was required to execute "estoppel certificates" if necessary for JWM to obtain financing for the restaurants. Deborah Pear Phillips, the real estate negotiator for Domino's and one of the petitioners, refused to sign the certificates. Phillips told McDonald that she would see to it that he would experience financial repercussions if he did not cease to pursue his dealings with Domino's. She said, "I don't like dealing with you people anyway," and that she would see to it Domino's did no further business with McDonald.
McDonald's calls were then forwarded to Domino's Vice President and General Counsel Joe Graziani. He told McDonald that Domino's would perform the remaining contracts only if McDonald agreed to amend them. McDonald refused to amend the contracts and Domino's refused to execute the estoppel certificates. Due to its subsequent inability to obtain financing, JWM had financial difficulties and eventually filed for bankruptcy. During the Bankruptcy proceedings, JWM filed a claim against Domino's for breach of contract that was settled for $45,000.
Heads up for any black companies, lawyers, doctors, accountants, IT professional or temporary employees. I heard about this case on Tavis Smiley show a year ago and just checked up on it recently. It has far reaching negative implications for us doing business or working.
http://www.law.cornell.edu/supct/cert/04-593.html
Background:
Domino's Pizza, Inc. ("Domino's") entered into four contracts with JWM Investments, Inc. ("JWM") under which JWM was to build restaurants and lease them to Domino's. Respondent John McDonald, an African-American, was the sole officer, director, and stockholder of JWM. Under the contract, Domino's was required to execute "estoppel certificates" if necessary for JWM to obtain financing for the restaurants. Deborah Pear Phillips, the real estate negotiator for Domino's and one of the petitioners, refused to sign the certificates. Phillips told McDonald that she would see to it that he would experience financial repercussions if he did not cease to pursue his dealings with Domino's. She said, "I don't like dealing with you people anyway," and that she would see to it Domino's did no further business with McDonald.
McDonald's calls were then forwarded to Domino's Vice President and General Counsel Joe Graziani. He told McDonald that Domino's would perform the remaining contracts only if McDonald agreed to amend them. McDonald refused to amend the contracts and Domino's refused to execute the estoppel certificates. Due to its subsequent inability to obtain financing, JWM had financial difficulties and eventually filed for bankruptcy. During the Bankruptcy proceedings, JWM filed a claim against Domino's for breach of contract that was settled for $45,000.
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