June 19, 2019

Colorado Court of Appeals: Quizno’s Franchising II, LLC v. Zig Zag Restaurant Group, LLC

on June 10, 2010.

Order to Show Cause—Appeal—Dismissal—Notice—Sanctions.

This case came before the Court of Appeals on its order to show cause why (1) appellant, Quizno’s Franchising II LLC (Quiznos), did not file a motion to dismiss within a reasonable time, and (2) this court should not impose sanctions. Sanctions were not imposed, the order to show cause was discharged, and the appeal was dismissed.

This case involved consolidated appeals by Quiznos. The matter was fully briefed; the case was at issue as of February 8, 2010; and on March 12, 2010, oral argument was set for May 12, 2010. The parties reached an agreement and signed a Settlement, Release, and Termination Agreement on March 22, 2010. On May 5, 2010, Quiznos filed a motion to dismiss and to vacate the oral argument. Because Quiznos offered no explanation for its long delay in filing its motion to dismiss, the Court issued an order to show cause. Quiznos filed a response apologizing and explaining that although the settlement agreement was signed on March 22, 2010, the settlement resolution was not completed until a number of other actions, including a payment, were complete. Quiznos further explained that counsel for Quiznos contacted the Court and verbally informed it of the settlement on April 7, 2010. Oral notification of the settlement of a pending appeal is insufficient. A party must provide the court with notice of the settlement of a pending appeal immediately and in writing. In the circumstances presented here, however, the Court declined to impose such sanctions. Accordingly, the order to show cause was discharged and the appeal was dismissed.

This summary is published here courtesy of The Colorado Lawyer. Other summaries by the Colorado Court of Appeals on June 10, 2010, can be found here.

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