407.410. Double damages, when--limitation on actions--cancellation of franchise without notice grounds for award of damages. - Missouri Statutes

Double damages, when--limitation on actions--cancellation offranchise without notice grounds for award of damages.

407.410. 1. Any contract made in violation of section407.405 is void and any person who, directly or through the useof agents or intermediaries, induces or causes another person toparticipate in a pyramid sales scheme will be liable to thatperson in civil damages in an amount equal to the sum of twicethe amount of consideration paid, and in the case of anysuccessful action to enforce such liability, the costs of theaction together with a reasonable attorney's fee, as determinedby the court. An action under this section may be brought in thecircuit court having venue within five years from the date onwhich the consideration was paid.

2. A franchisee suffering damage as a result of the failureto give notice as required of the cancellation or termination ofa franchise, may institute legal proceedings under the provisionsof sections 407.400 to 407.420 against the franchisor whocanceled or terminated his franchise in the circuit court for thecircuit in which the franchisor or his agent resides or can belocated. When the franchisee prevails in any such action in thecircuit court, he may be awarded a recovery of damages sustainedto include loss of goodwill, costs of the suit, and any equitablerelief that the court deems proper.

(L. 1974 H.B. 1132 § 3, A.L. 1975 H.B. 810 § 3)

*No continuity with § 407.410 as repealed by L. 1963 S.B. 2 § 10-102, effective 7-1-65.

(1980) General intent of the legislature in the enactment of statutes prohibiting pyramid sales schemes is to buttress a strong public policy against pyramid sales schemes involving cover or disguise of some seemingly legitimate commercial transaction. State ex rel. Ashcroft v. Wahl (A.), 600 S.W.2d 175.

(1987) Franchisor who fails to provide time notice of termination to a franchisee under section 407.405 the franchisee is not entitled to recover punitive damages in an action brought pursuant to this section. Ridings v. Thoele, Inc., 739 S.W.2d 547 (Mo.banc.).