April 23, 2005

Finger Lickin’ Good

The woman who allegedly found a 1.5” fingertip in her chili while dining at a Wendy’s in San Jose, California was arrested on April 22, 2005 in Las Vegas. San Jose police have not provided any details on the arrest but, as reported in the NY Times, officers have said that they believe her claim against the San Jose Wendy's restaurant is a hoax.

Two weeks ago, Anna Alaya, the finger lady, announced that she decided not to sue Wendy’s, curiously citing as the reason for her decision the “great emotional distress” of her claim, which may be the least-cited reason ever for deciding not to pursue a lawsuit. She has filed, however, a claim against the franchise owner, Fresno-based JEM Management Corporation. According to reports, Alaya has been involved in at least half a dozen other legal battles in the San Francisco area, including a claim against another fast-food restaurant, an auto dealership and a former employer. With witnesses now coming forward recounting Ayala's story of putting the finger in her chili, Ms. Ayala's legal battles will more likely place her in the defendant's seat.

Meanwhile, sales at Wendy’s franchises in Northern California dropped precipitously since the alleged incident on March 22, 2005, resulting in a $2.5 million loss to those restaurants and forcing layoffs and reduced hours. The case has also unfortunately spawned a number of copycat incidents, requiring Wendy's to investigate on a case by case basis, as reported in The Herald. The company offered a $100,000 reward for anyone with information leading to the finger’s owner.

Posted by franchiselawblog at April 23, 2005 04:59 PM