Ohio Decision on “Successor” Franchise Law Provision a Win for Suppliers

Dear Client:Last week, the U.S. Court of Appeals for the Sixth Circuit handed down a decision on Tri County Wholesale Distributors v. Labatt USA Operating Company. It provided clarity on the much-litigated "successor" provision in Ohio's franchise law. In an email bulletin, McDermott Will and Emery bev alc lawyer Marc Sorini dubbed it a favorable decision for the supplier tier. It could ultimately disincentivize wholesaler challenges to successor terminations under Ohio statute. The decision is binding for lower federal courts