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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND, NORTHERN DIVISION * 7-ELEVEN, INC., Plaintiff/Counter-defendant, v. DOUGLAS McEVOY, * * * * CIVIL ACTION NO: WDQ-02-3834 * * * * * * *

Defendant/Counter-plaintiff. * * * * * * * *

MEMORANDUM OPINION Pending are cross-motions for summary Inc. judgment filed by and

Plaintiff/Counter-defendant

7-Eleven,

("7-Eleven")

Defendant/Counter-plaintiff Douglas McEvoy. I. Background This case arises out of the termination of Mr. McEvoy's 7Eleven franchise agreement. McEvoy entered the franchise agreement ("agreement") with Southland Corporation, the predecessor of 7Eleven, on January 27, 1994. Memorandum of Law in Support of

Douglas McEvoy's Motion for Partial Summary Judgment on 7-Eleven, Inc.'s Verified Civil Complaint ("McEvoy Mot."), Ex. 2. As a 7-

Eleven franchisee, McEvoy leased the store from 7-Eleven and received a percentage of the net profits as compensation. McEvoy Mot. at 3-4, McEvoy Ex. 2. During McEvoy's tenure as a 7-Eleven franchisee, his

relationship with the franchisor soured. McEvoy Mot. at 4. McEvoy frequently complained about changes in 7-Eleven's accounting

practices which he claimed resulted in more errors.

McEvoy Depo.

at 14-27; Carter Depo. at 78-79, 84 (7-Eleven changed accounting system by no longer attempting to reconcile franchisee's reports with its own). McEvoy also complained about a 7-Eleven program,

the Central Distribution Center ("CDC"), which attempted to reduce wholesale costs by allowing franchisees to purchase goods through a centralized system rather than individual vendors. at 37; Cox Depo. at 57. McIver Depo.

McEvoy also complained about 7-Eleven's See, e.g., McEvoy

failure to renovate and repair the premises.

Depo. at 41-43 (indicating that his store needed renovations and updates); McEvoy Opp. at 17 (appearance of McEvoy's store made it difficult to compete with newer competitors' stores). Starting in 1999, McEvoy repeatedly failed to make timely document submissions and bank deposits. See, e.g., Adkins Aff. at

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