Charles H. Schlobohm v. Pepperidge Farm, Incorporated

REAVLEY, Circuit Judge:

The district court’s award to a terminated franchisee of attorney’s fees, prejudgment interest, and costs turns on the interpretation of an arbitration agreement as well as the application of Texas and federal law to the franchisee’s lawsuit. We modify the judgment to eliminate the award of attorney’s fees and costs, and affirm.

I

Charles Schlobohm owned a Pepperidge Farm franchise. His contract provided that Pepperidge Farm could terminate the franchise without cause upon written notice. The contract further provided that upon termination Pepperidge Farm would pay…