Barista’s Coffee Franchise: Attorney Violated Ethical Standards

by sean on May 22nd, 2008

(FranchisePick.Com) Related story: People Lie. People Cheat. People Advertise., Want to Franchise Your Business? Do Your Homework First.

The Kearney Hub reports that the “referee” overseeing disciplinary proceedings against Kearney, Nebraska attorney Jeff Orr is blowing the whistle on Orr, and giving him a 15 yard penalty for impersonating a franchise attorney.

In 2002, Barista’s owners Sickler and Mettenbrink hired Orr to assist them in franchising their 1 1/2 year old coffee shop concept. Orr told Sickler and Mettenbrink that he had franchise legal experience. His experience, however, was limited to having read a handful of disclosure documents. He as much as admits that he copied the Quizno’s franchise agreement.

Here are some highlights from the Kearney Hub article:

“…Orr took on the Barista’s case knowing he was not competent to handle the work. “Not only had he never undertaken such a task previously, but also he was warned by an intellectual properties lawyer, whom he respected, that franchise law is ‘pretty specialized,’”

“… Although he knew that certain aspects of franchising were governed by the Federal Trade Commission, he did not adequately prepare himself for the task,” Olson said of Orr.

“Before learning that their disclosure statement did not comply with FTC rules, Barista’s sold 21 franchises between 2003 and 2006. Barista’s Daily Grind currently operates in west Kearney under new ownership.”

“Barista’s closed its two Kearney locations at 4402 Second Ave. and 2400 Central Ave. last summer after Sickler and Mettenbrink defaulted on loan payments and lost ownership of their properties to Kearney State Bank & Trust Co. in a foreclosure.”

“Although the exact nature and extent of the harm suffered by the clients was not addressed in detail, the evidence is clear and convincing that the consequences to the client were serious,” Olson said.

“Waldine Olson, who is acting as referee in Orr’s disciplinary proceedings, has ruled that Orr violated four of 13 ethical standards and provisions listed in the State Bar Association’s Code of Professional Responsibility and Rules of Professional Conduct. (Click here to view Referee Waldine Olson’s 36-page referee’s report in the Jeff Orr discipline case.)”

Read the entire article:

Referee: Orr should be reprimanded, but ex-Barista’s attorney appears in the clear on some violations

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