Martino v McDonalds System Inc

1979

Venue: 7th Cir.

Facts: Martino is a McDonald's franchisee. This includes an agreement that no member of his immediate family will acquire an interest in a competitor without written permission. His son purchases a Burger Chef franchise.

Posture: McDonald's sues in diversity. Gets a consent judgment. Now he sues claiming antitrust violations. District court says res judicata and 13(a) bar the action.

Issue: Is there preclusion?

Holding: The district court was wrong about 13(a), but this is preclusion.

Rule: Res judicata is about respect for judgments: there was a judgment in the prior matter.

Reasoning: As to 13(a), there was no pleading, so it's not applicable.

However.

This is a direct challenge to the outcome of the earlier suit. It should have been pled at that time.


Dicta: