The plaintiff franchisor brought a motion for default judgment against former franchisees for defamation.
Following the termination of their franchise agreements, the defendants engaged in a widespread campaign of making false and defamatory statements about the plaintiff to suppliers, landlords, competitors, and the media.
The defendants failed to defend the action and were noted in default.
The court granted default judgment, finding the statements were defamatory and made with malice.
The court awarded $425,000 in general damages, $75,000 in punitive damages, and granted a permanent injunction restraining the defendants from publishing further defamatory statements.
