JTH Tax, Inc. v. Frashier

624 F.3d 635 (2010)

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JTH Tax, Inc. v. Frashier

United States Court of Appeals for the Fourth Circuit
624 F.3d 635 (2010)

SR
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Facts

JTH Tax, Inc. (Liberty) (plaintiff) franchises tax preparation offices throughout the country. Harry Frashier (defendant) entered into a franchise agreement with Liberty in 2006. Liberty brought suit against Frashier in federal court under its diversity jurisdiction, alleging violations of post-termination provisions of the franchise agreement. Liberty’s complaint sought $80,000.00 in damages and a permanent injunction requiring Frashier to comply with the post-termination provisions. Liberty later filed a motion for summary judgment in which Liberty reduced its claim for money damages to $60,456.25. The district court then dismissed Liberty’s complaint for its failure to meet the $75,000.00 amount-in-controversy requirement for diversity actions. Liberty appealed.

Rule of Law

Issue

Holding and Reasoning (Motz, J.)

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