Carmen Caruso

Carmen D. Caruso is a trial lawyer first, and a franchise lawyer second. Carmen has tried more than 40 cases to decision in state and federal courts in Illinois and across the country. In addition, as an Arbitrator, he has presided over nearly 20 hearings.

Caruso started in franchise litigation as a protege of former federal prosecutors Tom Foran and Dick Schultz, with whom he successfully defended McDonald's Corporation and Godfather's Pizza in numerous cases.

After serving as the Chair of the Franchise & Distribution Practice of a larger firm (a practice group that he founded for that firm), Caruso formed his own law firm to be free of conflicts of interest that result from his representation of franchisees and dealers, and more importantly to take compelling cases to trial. To this end, Caruso has assembled a talented small firm team of associates, paralegals and law clerks at Carmen D. Caruso Law Firm that enables him to compete across the country in significant cases against much larger law firms.

Over the years Caruso has emerged as one of the most highly regarded trial attorneys in the nation on the franchisee/ dealer side of these contentious disputes.

In addition, Caruso has been successful in legal malpractice cases, representing either plaintiffs and defendants in different cases. Some, but not all of his legal malpractice cases have involved alleged negligence by other lawyers in the practice of franchise law. Other cases have involved very serious alleged breaches by other attorneys of their ethical duties.

Caruso has also enjoyed considerable success in employment litigation, again on behalf of either plaintiffs and defendants, and most frequently in cases involving company executives or high performing sales persons (including cases involving franchise industry executives).

Caruso accepts challenging cases in all areas of commercial litigation and frequently works with other attorneys as their client's counsel in Chicago, or as trial counsel for their clients.

• American Arbitration Association - Member, Roster of Neutrals

• American Bar Association Forum on Franchising - Frequent Lecturer and Writer

• American Bar Association, Section of Litigation - Chair, Section 1981 Committee

• American Franchisee Association - Member

• Association for Justice - Member

• Catholic Charities of Chicago - Board of Advisors

• Chicago Bar Association - Member

• Illinois State Bar Association - Member

• International Franchise Association - Member

● Authored “A Non-Partisan Review of the $353 Million Civil Judgment Against Donald Trump,” 2024, New York Law Journal.

https://cdcaruso.com/whats-new/new-york-law-journal-publishes-carmen-d-caruso-article-on-consumer-fraud-law/

● Wrote “Simple Solution to End Dispute Over National Injunction Rulings,” 2020, Chicago Daily Law Bulletin. https://docs.google.com/document/d/1URG9mldnbJSM6-YfXrhLtezEToIXJ0V5XV1K1HyPhqw/edit?tab=t.0

● Co-authored “Repair work violates law on estimates, Bell v. Ring” 2018, Chicago Daily Law Bulletin.

● Authored “Arbitrator rejects Tilted Kilt’s damage claim as ‘disproportionate, unreasonable, unconscionable and grossly oppressive’ Dec 13, 2017 , Blue MauMau. https://cdcaruso.com/franchisees/arbitrator-rejects-tilted-kilts-damage-claim-disproportionate-unreasonable-unconscionable-grossly-oppressive/

● Authored “The Myth of Secrecy (and Other Problems)” October 17, 2017, Blue MauMau. https://cdcaruso.com/franchisees/myth-secrecy-problems-franchise-arbitration/

● Authored “The Art of Storytelling: Using War Stories to Teach Enduring Trial Lessons,” August 20, 2017, American Bar Association (Section of Litigation), Solo/Small Firm Committee newsletter. https://cdcaruso.com/whats-new/art-storytelling-using-war-stories-teach-enduring-trial-lessons/

● Authored “The Growing Wave of Gender Discrimination Lawsuits Against Big Law.” August, 2017, American Bar Association Section of Litigation Diversity & Inclusion newsletter. https://cdcaruso.com/wp-content/uploads/2016/08/the-growing-wave-of-gender-discrimination-lawsuits-against-big-law.pdf

● Co-Authored “Damages for Lost Future Profits in Franchise Disputes, Overcoming the New Business Rule and Establishing Reasonable Certainty,” American Bar Association Forum on Franchising, Franchise Law Journal, Summer 2016. https://cdcaruso.com/wp-content/uploads/2017/02/flj-36-1_01caruso.pdf

● Young Advocates American Bar Association (Section on Litigation), Just the Facts on Franchise Litigation”, Summer Newsletter, 2013 https://cdcaruso.com/wp-content/uploads/2017/02/just-the-facts-on-franchise-litigation1.pdf

● American Bar Association (Section on Litigation)-Civil Rights Litigation, Section 1981 Litigation: Making Free Markets Free, https://cdcaruso.com/wp-content/uploads/2017/02/section-1981-litigation-making-free-markets-free.pdf

● The Franchise Law Journal, a publication of the American Bar Association, Franchisees Claims for Constructive Termination Under the PMPA After Mac’s Shell. Published in The Franchise Law Journal Vol. 30 N 1 Winter Edition 2011.

https://cdcaruso.com/wp-content/uploads/2017/02/flj_win11v30n3_caruso.pdf

● “Just the Facts on Franchise Litigation”, an interview with Carmen D. Caruso by the Young Advocates American Bar Association Section of Litigation, Just the Facts on Franchise Litigation

• Thermodyne v. McDonald's Corporation

Defense of international franchisor accused of theft of trade secrets in oven technology.

• Interim Health Care of Northern Illinois v. Interim Health Care, Inc.

Victory in the U.S. Court of Appeals on behalf of a franchisee who was terminated for non-payment of royalties, where the franchisor had breached its duty of good faith and fair dealing in failing to refer national account patients to the franchisee.

• Dairy Queen Operators Association v. International Dairy Queen

We represent this association in its ongoing battles to protect its franchisee members from conduct by the franchisor that is arguably overreaching. We would be pleased to provide additional details on request.

• Defense of Legal Malpractice Claim against Franchise Attorney (names withheld)

Successful defense of attorney accused of negligence in failing to properly advise client on compliance with the FTC Franchise Rule and applicable state law in preparing franchise agreement for client's use in selling franchises.

• Berggren v. Bang & Olufsen Corp.

Obtained a significant confidential settlement for five retail dealers across the country who claimed that they were defrauded in the purchase of their dealerships.

• Bellaver v. Quanex Corp.

Success in the U.S. Court of Appeals on behalf of a female manager in a Title VII case, helping to shatter the "glass ceiling" that had existed at the company.

• Home Repair, Inc. v. Paul W. Davis Co.

Successful claim under 42 U.S.C. Section 1981 on behalf of an African American franchisee who was denied the opportunity to expand into the Chicago metropolitan market, unless he agreed to locate in a minority community.

• Mages v. MC Sports

Recovery for defrauded sellers of a sporting goods business in an arbitration lasting three weeks.

• Advanced Concrete et al v. Superior Walls of America

Successful resolution of arbitrated claims for multiple franchisees in a somewhat unique franchise system, where the license to manufacture and sell the franchisor's patented products are the essence of the franchise, and where the franchisor had arguably breached its duty of good faith and fair dealing by failing to stay in compliance with national building code standards and had engaged in unreasonable product pricing.

• Representation of a prominent Chicago CEO in a fee dispute with his matrimonial law firm

When the combined fees in a recent divorce case exceeded $3 million, the senior partner of the firm that represents the husband's company referred the CEO to us. We appeared in the divorce case and initiated a four-way mediation process that led to a settlement of the underlying divorce as well as separate settlements with the law firms representing each spouse.

• Representation of law firm involving franchising agreements

The president of the State Bar in Nebraska enlisted Carmen to join the team defending a law firm charged with legal malpractice in negligently preparing franchising agreements and disclosure documents for their client, a local coffee shop business that sought to launch a national franchising program and then tried to cover up errors. There was no cover-up, and the damage claim was wildly inflated. Carmen helped the defense successfully establish that the coffee shop franchisees were dissatisfied due to the franchisor’s false earnings claims, not to the result of non-compliance with the FTC Franchise or any action made by his lawyer.

• Success again large oil company in fraud by omission bench trial.

We were successful in proving in a bench trial that one of the world’s largest oil companies committed fraud by omission in offering its company-owned gas stations for sale as PMPA franchises. This created the false impression that purchasing franchisees would earn more profit margin on every gallon of gasoline to be sold than the company would allow.

• Precedent-setting case won by Carmen in the U.S. Court of Appeals for Seventh Circuit.

For franchisees, we won a precedent-setting case in the United States Court of Appeals for the Seventh Circuit. He persuaded the court to hold that even where a franchisor might establish good cause for termination due to the franchisee’s failure to pay royalties, the franchisee’s claims against the franchisor for conduct that caused the franchise to fail survive the termination. Thus, the franchisee might recover damages even though the termination was lawful.

Born and raised in Chicago, Caruso graduated from Marquette University (B.A. in psychology, with honors) in 1980 and from Loyola University of Chicago (J.D. 1983), where he won the American Jurisprudence Award in antitrust law, made the Law Review, taught a Street Law/Mock Trial class in a Chicago public high school, argued a federal court appeal, and served as an extern for the United States Attorney for the Northern District of Illinois. He also obtained a Masters Advocate certificate from the prestigious National Institute of Trial Advocacy (N.I.T.A.) and completed the American Bar Association’s comprehensive training in commercial arbitration.

Outside the office, Carmen enjoys traveling with his wife, swimming and playing with his grandchildren who keep him grounded. He lives in the Beverly neighborhood of Chicago.

Marquette University

J.D.

1980 - 1983

Loyola University

Bachelors

1976 - 1980