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Cornwell intends to contest the allegations very vigorously, including but not limited to the class action claims and the attempt to bring the action outside arbitration. 11 114 Y 01759 11 in the American Arbitration Association, was filed on October 21, 2011. The other plaintiffs, all former dealers as well in Ohio and Illinois, subsequently joined the action, alleging the same claims.The Demand was brought by nine former Cornwell dealers as individuals and as claimed representatives of the putative class of all former Cornwell dealers terminated within four years of the filing of the Complaint in the Common Pleas case reported above, or subsequently. Cornwell filed motions to stay the proceedings pending arbitration, as to each of the plaintiffs.

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It seems that Cornwell Tools sues a significant percentage of its franchisees each year for not being able to pay for the interest and the tools it is selling them on credit. 2010-0375) On November 3, 2010, Cornwell entered into a Consent Decree with the Securities Commissioner of Maryland to resolve issues arising from entering into franchise agreements in Maryland even though the renewal of Cornwell’s registration in 2008 had not been approved and thus had expired.

Cornwell paid a civil penalty of $10,000.00, offered the rescission of franchises entered into after the registration expiration and has implemented procedures to reduce the risk of future violations. FR1400020) On August 19, 2014, a Consent Order was issued against Cornwell by the Commissioner of Commerce of Minnesota.

The Court of Common Pleas ruled on June 6, 2010, that the case was not subject to arbitration.

Cornwell appealed that ruling to the Court of Appeals for the Ninth District of Ohio, Case No.

In 2005, a couple counterclaimed that their franchise had been wrongfully terminated by Cornwell Tools. In 2012, a Wisconsin dealer sued over the termination of his Cornwell dealer agreement.

In the preceding fiscal year, Cornwell Tools filed collection suits against 43 former Cornwell Tools franchisee dealers for their inability to pay Cornwell Tools for the tools it sold them on credit.An arbitration award granting recovery to the Company and dismissing the counterclaims with prejudice was issued on February 19, 2007. Justin Gray, American Arbitration Association Case (No. 53 114 E 00759 10, was filed by Cornwell against Geoffrey L. Barnes on September 9, 2010, seeking recovery of amounts owed on account. Salzgeber on his account and for attorney fees arising from the replevin. Salzgeber failed to counterclaim in the arbitration to assert the allegations he had made in his lawsuit and the time for doing so has passed.0 06) and Chancery Court of Tipton County, Tennessee (No. Gray filed an action for declaratory judgment and request for an injunction to stay the arbitration proceedings in the Chancery Court of Tipton County. A hearing was held in the arbitration on March 8, 2013, resulting in an award for Cornwell. Salzgeber’s allegations very vigorously, if they are presented in any forum.25444, which reversed in Cornwell’s favor on May 25, 2011.The Ohio Supreme Court declined jurisdiction of the matter on October 5, 2011.In 2004, twelve former Cornwell dealers alleged deceptive trade practices, violations of Ohio’s consumer sales practices act, Ohio’s business opportunity statute, fraud, fraud in the inducement, consumer fraud, negligent misrepresentation, breach of contract, and breach of fiduciary duty.

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