Gorenstein Enterprises, Inc. v. Quality Care-USA, Inc.

874 F.2d 431 (1989)

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Gorenstein Enterprises, Inc. v. Quality Care-USA, Inc.

United States Court of Appeals for the Seventh Circuit
874 F.2d 431 (1989)

Facts

Gorenstein Enterprises, Inc. (Gorenstein) (plaintiff) owned and operated nursing-home facilities. Gorenstein entered into a franchise agreement with Quality Care-USA, Inc. (Quality Care) (defendant) that allowed Gorenstein to provide home healthcare services using Quality Care’s name under Quality Care’s registered trademark in exchange for royalty payments to Quality Care. A dispute arose over whether the franchise agreement required Quality Care to obtain a license that would have allowed Gorenstein to provide certain home-health services that unlicensed providers could not. Quality Care terminated the franchise agreement and demanded that Gorenstein stop using Quality Care’s trademark after Gorenstein defaulted on the royalty payments. Gorenstein filed suit against Quality Care, seeking rescission of the franchise agreement. The jury found Gorenstein liable to Quality Care for trademark infringement. Quality Care was awarded treble damages, attorney’s fees, and prejudgment interest. The district court calculated prejudgment interest at 9 percent rather than the prime rate. Gorenstein appealed, arguing that the prejudgment interest rate of 9 percent was too high.

Rule of Law

Issue

Holding and Reasoning (Posner, J.)

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Economics and Law

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