Successful Ruling Against Franchisee's Damage Claim in Condemnation Case


When BP Products, North America, faced a franchisee's claim for damages arising from eminent-domain proceedings, BP contacted Larkin Hoffman. The Larkin Hoffman team, led by Gary Van Cleve and Michael Mergens, received a favorable decision for their client from the Minnesota Court of Appeals. The franchisee had leased a gasoline franchise owned by BP, which was condemned in connection with a street-improvement project. The franchisee found another location, but claimed that it was not as successful and attempted to bring a claim in the condemnation proceedings for alleged loss-of-going concern value of the franchise. The district court found that the franchisee was barred from damages because his lease with BP was terminated upon the city's taking of the parcel encompassing the leasehold. The district court further ruled that the franchisee did not meet the requirements necessary to establish a claim for loss-of-going concern value. The court of appeals affirmed the district court's decision and refused to address whether BP had a specific obligation to seek a loss-of-going concern value on behalf of the franchisee.