Coffee Beanery Foes Lose House
Back in March, we ran a story about Deborah Williams and Richard Welshans, a Maryland couple who alleged that they’d been defrauded by the Coffee Beanery, a national coffee franchiser. They tried to sue to recover some of the more than $1 million they lost after opening a Coffee Beanery cafe, alleging that the company had failed to disclose the fact that most of their franchises failed within three years rather than netted $250,000 in profits, as the company officials had promised. Instead, the couple landed in mandatory arbitration hell. A private arbitrator, hired by Coffee Beanery, ruled against them and ordered them to pay Coffee Beanery more than $100,000, which included the opposing counsels’ lunch tab during the hearing.
The couple fought the decision all the way through the 6th Circuit Court of Appeals, which earlier this year overturned the arbitrator’s decision, paving the way for Williams and Welshans to sue the Coffee Beanery in Maryland civil court. But Welshans and Wiliams might have had a much happier ending to their story if they’d been able to access the civil justice system from the beginning, and had their complaint heard in a real court of law, with a real judge and a real jury. Instead, the failure of their franchise plus the arbitration and expensive legal battle sent them into bankruptcy. Now, they are about to lose their house. Last week, Deborah wrote to me saying that their lovely waterfront Annapolis home was going into foreclosure and they had 45 days to leave the premises. In an email she writes:
We now have nothing left to lose. We thought that if by a miracle, we should win our appeal we would finally achieve Justice. But even that was not to be. We are the first franchisee in the State of Maryland to be denied the protection of Maryland Law. I'm crying as I write this, because for the first time I realize our backs are broken and there seems to be nothing left for us. We don't know where we will go. Renting will be almost impossible, I still have not been able to find a job, and then there is the bankruptcy. As you can imagine, any landlord would determine us a high risk.