In-N-Out Burger

by Stacy Perman

  “Led by the company’s longtime general counsel Arnold Wensinger,”: Stephen Gregory, “Lessons and Insight on Southland Businesses, Outsized; Small Firms Feel Pinch of More Aggressive Trademark Policing,” Los Angeles Times, March 7, 1998.

  “In December 2000, In-N-Out Burger filed a federal lawsuit”: Caleb Correa, “Double Double Talk,” Phoenix New Times, December 21, 2000; “Lawsuit Claims Burger Infringement,” Associated Press, June 1, 2001; In-N-Out Burger v. Whataburger Inc. (U.S. D.C. Ariz. 2000), 2:00-cv-02285-JAT.

  “In-N-Out took its trademarks very seriously.”: Ibid.

  “In-N-Out sued them in September 2003, days after the Rizzas opened an In & Go Burger”: Edward Russo, “Burger Chain Says ‘In & Go’ Is Out of Line,” Register-Guard, September 12, 2003.

  “Rather than fight it out in court, the Rizzas settled with In-N-Out.”: Edward Russo, “After In-N-Out Feud, Owner Sticks with & Burger,” Register-Guard, October 13, 2003.

  “But shortly after Chadder’s opened, In-N-Out began receiving inquiries from customers”: “Memorandum Decision and Order Granting in Part Plaintiff’s Motion for Temporary Restraining Order,” In-N-Out Burger v. Chadders Restaurant…and Chad Stubbs, 2:07-CV–394 TS (C.D. Utah 2007); Sara Israelsen, “Chadder’s Eatery in American Fork Denies Imitating In-N-Out Burgers,” Deseret Morning News, June 26, 2007.

  “Once there, In-N-Out’s attorney stood in line and ordered”: “Memorandum Decision and Order Granting in Part Plaintiff’s Motion for Temporary Restraining Order,” In-N-Out Burger v. Chadders Restaurant…and Chad Stubbs, 2:07-CV–394 TS (C.D. Utah 2007), 3.

  “News of the lawsuit spread quickly.”: “Memorandum Decision and Order Granting in Part Plaintiff’s Motion for Temporary Restraining Order,” In-N-Out Burger v. Chadders Restaurant…and Chad Stubbs, 2:07-CV–394 TS (C.D. Utah 2007); Grace Leong, “A.F. Chadder’s Restaurant Sued,” Daily Herald, June 20, 2007.

  “We don’t want to be known as a bully, especially in the legal field.”: Stephen Gregory, “Lessons and Insight on Southland Businesses, Outsized; Small Firms Feel Pinch of More Aggressive Trademark Policing,” Los Angeles Times, March 7, 1998.

  CHAPTER 23

  “Among those gathered at the pre-opening party was Harry Snyder’s nephew”: Deirdre Newman, “In-N-Out Reaches Milestone in Temecula: 200th Store,” North County Times, December 30, 2005.

  “the chain was generating an estimated $350 million in sales”: Sales estimates, growth percentage based on sales, and rankings from Technomic Inc.

  “In-N-Out executive and Snyder family friend Richard Boyd filed a lawsuit”: Richard Boyd v. In-N-Out Burger, BC344043, December 7, 2005.

  “She owned 23.59 percent of the corporation’s stock independent of the trusts”: “Petition of Co-trustee Richard Boyd,” In Re the Matter of Esther L. Snyder Trust–1989, BP095380 (S.C. Calif. 2005), 16.

  “Esther’s share,”: “Lynsi Martinez’s cannibus memorandum in reply to Boyd’s omnibus opposition to Lynsi Martinez’s demurrers,” In Re the Matter of Esther L. Snyder Trust–1989, BP095640 (S.C. Calif. 2006).

  “the family trusts, valued at $450 million.”: “Petition of Co-trustee Richard Boyd,” In Re the Matter of Esther L. Snyder Trust–1989, BP095380 (S.C. Calif. 2005), paragraph 8, page 8.

  “Boyd contended that she was colluding with Mark Taylor”: “Plaintiffs Ex Parte Application for Temporary Restraining Order and Order to Show Cause Re Preliminary Injunction,” Richard Boyd v. In-N-Out, BC 345506, January 5, 2006, 4.

  “We’re in good shape,”: John Pomfret, “In California, Internal Lawsuits Served Up at Burger Chain,” Washington Post, January 30, 2006.

  “There was a brief period of calm as the two parties and their teams of lawyers began settlement discussions.”: In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006), paragraph 74, page 20; Lisa Jennings, “In-N-Out Insiders’ Lawsuits Roil Icon’s Executive Ranks,” Nation’s Restaurant News, January 23, 2006.

  “On January 5, 2006, Boyd returned to court and re-filed his original suit.”: Richard Boyd v. In-N-Out Burger, BC 345506 (S.C. Calif. 2006).

  “A week later, In-N-Out countersued,”: “Plaintiff In-N-Out Burgers’ Complaint,” In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006).

  “On January 30, In-N-Out fired Boyd from his position”: In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006), paragraph 15, page 6.

  “such bitter infighting and legal wrangling had left the fortunes of the Haft family of Washington D.C.’s estimated $500 million”: Margaret Webb Pressler, “Herbert Haft Agrees to Settlement,” Washington Post, April 22, 1997.

  “the Chicago-based Pritzker family’s $15 billion real estate holdings,”: Jodi Wilgoren, “$900 Million Accord Enables Breakup of Pritzker Dynasty,” New York Times, January 7, 2005.

  “and the Mondavi family’s $1 billion Napa Valley winery”: Carol Emert, “Legendary California Wine Company Is Sold,” San Francisco Chronicle, November 4, 2004.

  “Boyd’s lawsuit, she declared, ‘contains outright lies and awful inaccuracies’”: Lisa Jennings, “In-N-Out Insiders’ Lawsuits Roil Icon’s Executive Ranks,” Nation’s Restaurant News, January 23, 2006.

  “The feud began around 2003.”: Richard Boyd v. In-N-Out Burger, BC345506 (S.C. Calif. 2006), paragraphs 31, 32, 33, page 7.

  “According to the filings, Lynsi held weekly prayer meetings”: In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006), paragraph 4, page 3.

  “Boyd charged that she used Taylor to convey her wishes,”: In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006).

  “According to court documents, Mark Taylor and Roger Kotch,”: Richard Boyd v. In-N-Out Burger (S.C. Calif. 2006), paragraph 35, page 7.

  “On April 8, 2004, Boyd asked to meet with Lynsi, Taylor, and a complement of lawyers”: Ibid., paragraph 36, page 8.

  “In order to reduce about $47 million in taxes from his estate and pay off the outstanding federal and state taxes owed,”: “Petition of Co-trustee Richard Boyd,” In Re the Matter of Esther L. Snyder Trust–1989, BP095380 (S.C. Calif. 2005), pages 13–16; Internal Revenue Service, “Closing Agreement on Final Determination Covering Specific Matters, Estate of Harry Guy Snyder, Deceased, Richard Boyd and Mark Taylor,” August 20, 2005.

  “However, Boyd claimed that Lynsi refused to attend the meeting.”: Richard Boyd v. In-N-Out Burger (S.C. Calif. 2006), paragraphs 37, 38, page 8.

  “a week later, on April 14, Taylor informed Boyd that Lynsi was asking whether he had reconsidered resigning as cotrustee.”: Ibid., paragraphs 39, 40, 41, 42, 43, 44, pages 8, 9, 10.

  “From that point on, Boyd contended that he was left out of vice presidents’ meetings”: Ibid., paragraph 46, page 10.

  “Beginning in June, Boyd was no longer asked to take documents to Esther’s home”: “Declarations of Richard Boyd and Elisa Boyd,” Richard Boyd v. In-N-Out Burger, BC345506 (S.C. Calif. 2006); “Declaration of Richard Boyd,” April 27, 2006; Ibid., paragraph 9, page 3; In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006), paragraphs 76–103, pages 20–27.

  “Increasingly, Taylor was exercising his ambitions”: In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006).

  “In a company that had long made decisions by consensus,”: Ibid.

  “Sometime during 2004, Taylor reportedly attempted to have Esther put in a home.”: Ibid., paragraph 38, page 10.

  “The episode did not exactly endear Mark to Esther,”: Ibid., paragraph 38, page 10.

  “A campaign of isolating Esther, Boyd charged, began in earnest.”: “Verified Complaint,” Richard Boyd v. In-N-Out Burger, BC 345 506 (S.C. Calif. 2006)
, paragraph 25, page 5.

  “During this time, Boyd insisted that he continued to consult and advise Esther”: “Declaration of Richard Boyd and Elisa Boyd in Support of Plaintiff’s Ex Parte Application for Entry of Temporary Restraining Order and OSC Re Preliminary Injunction,” Richard Boyd v. In-N-Out Burger, BC345506 (S.C. Calif. 2006), paragraph 9, page 3.

  “The company initiated an internal investigation”: In-N-Out Burgers v. Richard Boyd, BC345657 (S.C. Calif. 2006), paragraph 13, page 4.

  “It also maintained that he favored one contractor, Michael Anthony Companies,”: Ibid., paragraph 11, page 3.

  “On September 16, 2005, Boyd was given a notice of non-renewal”: Ibid., paragraph 22, page 6; copy of the letter addressed to Mr. Richard Boyd, Re. Notice of Non-Renewal of Employment Agreement, September 16, 2005.

  “When Boyd showed Esther the notice, according to court filings, she said that she didn’t recognize it.”: “Declaration of Richard Boyd and Elisa Boyd in Support of Plaintiff’s Ex Parte Application for Entry of Temporary Restraining Order and OSC Re Preliminary Injunction,” Richard Boyd v. In-N-Out Burger, BC345506 (S.C. Calif. 2006), paragraph 21, page 5.

  “Shortly after he left her house, Boyd claimed that Taylor telephoned him,”: Ibid., paragraph 23, page 5.

  “Following this episode, Boyd contended that his contact with Esther became less frequent”: Ibid., paragraphs 28–31, pages 6–7.

  “After being marginalized for some time, Boyd asserted that by September 2005,

  Esther was essentially a prisoner”: In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006), paragraph 3, page 3.

  “Her phone calls and correspondence were screened,”: “Declaration of Richard Boyd and Elisa Boyd in Support of Plaintiff’s Ex Parte Application for Entry of Temporary Restraining Order and OSC Re Preliminary Injunction,” BC345506 (S.C. Calif. 2006), paragraphs 28–31, pages 6–7.

  “On November 5, 2005, In-N-Out Burger retained Grant Thornton,”: Grant Thornton, special investigative report for In-N-Out Burgers, December 5, 2005.

  “The firm was given access to Boyd’s department offices and files.”: Ibid., introduction, 9, 15, 16.

  “Five days later, In-N-Out notified Boyd that it would hold a hearing on December 13”: Mark J. Taylor, “Notice of Meeting of Board of Directors of In-N-Out Burgers, A California Corporation,” November 8, 2005.

  “A month later, Lawrence A. Rosipajla, Grant Thornton’s director, delivered a thick, seventy-eight-page report”: Grant Thornton, special investigative report for In-N-Out Burgers, December 5, 2005.

  “In January, the board of directors called a special meeting, the purpose of which was to discuss Boyd’s termination.”: “Declaration of Robert L. Wallan,” BC345506; In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006), paragraphs 76–97, pages 20–23.

  “The battle moved to the chambers of the Superior Court in downtown Los Angeles.”: In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006), paragraph 121, page 31; “Trustee of Family Fortune Claims Defamation,” Fagelbaum & Heller press release, March 15, 2006.

  This entire section comes from the declaration of Michael Anthony Madrid, signed and dated on October 31, 2005. Note: According to the Declaration of Richard Kemnitzer, he visited Michael Anthony Madrid’s office in October 2005 and November 17, 2005. “Declaration of Richard Kemnitzer,” Richard Boyd v. In-N-Out Burger, BC345506 (S.C. Calif. 2006).

  “On March 30, Judge Mitchell Beckloff suspended Boyd as cotrustee of the family trusts,”: In the Matter of Lynsi L. Martinez Trust–1989, BP 095640, Ruling on Submitted Matter, Superior Court of California, County of Los Angeles, March 30, 2006.

  “Then, on April 5, the burger chain suffered a setback”: Fagelbaum & Heller press release; Aurelio Munoz ruling, April 5, 2006.

  “This is an action for a wrongful discharge,”: “Motion to Strike Portions of the Cross Complaint,” In-N-Out Burgers v. Richard Boyd et al., BC345657 (S.C. Calif. 2006).

  “Lynsi, Taylor, and In-N-Out filed a motion in February”: Superior Court of California, County of Los Angeles, April 28, 2006.

  “Boyd claimed that Lynsi did very little work at the company”: This description comes variously from the following filings: In the Matter of Harry Guy Snyder Testamentary Trust, BP095639 (S.C. Calif. 2006); In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006).

  “She is often late for work and meetings or does not show up at all.”: Ibid.

  “Boyd himself reportedly became ensnared in Lynda’s wrath”: In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006), paragraph 30 page 8.

  “Married to Traci Perkins, Taylor considered himself Guy’s son-in-law”: In the Matter of Harry Guy Snyder Testamentary Trust, BP095639 (S.C. Calif. 2006); In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006).

  “The renovation and landscaping were so all-encompassing”: Notes of meeting from Glendora Planning Commission, city staff, City Design Review Committee, City Planning Commission, and City Council, September 2, 2003–September 16, 2003.

  “Boyd later claimed that Taylor’s remodeling project cost $2 million”: In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v. INO et al., BC345657 (S.C. Calif. 2006), paragraphs 41–44, pages 11–12.

  “According to Boyd’s filings, Taylor was a ‘lackluster manager.’”: “Petition of Co-trustee Richard Boyd,” In Re the Matter of Esther L. Snyder Trust–1989, BP095380 (S.C. Calif. 2005), paragraph 8, page 7.

  “Boyd insisted that Taylor’s ambitions overshadowed his abilities.”: In the Matter of Harry Guy Snyder Testamentary Trust, BP095639 (S.C. Calif. 2006); In-N-Out v. Richard Boyd and Michael Anthony Concrete and Richard Boyd v INO et al., BC345657 (S.C. Calif. 2006).

  “In his own court filings, Taylor denied Boyd’s allegations.”: “Respondent and Counter Petitioner Lynsi Martinez’s Verified Petition: (1) to remove Richard Boyd as Trustee; (2) For appointment of Mark Taylor as trustee; (3) in the alternative, for appointment of Northern Trust Bank of California; (4) for an accounting by trustee Richard Boyd, and (5) For attorneys’ fees and costs…,” In the Matter of Harry Guy Snyder Testamentary Trust, BP095639 (S.C. Calif. 2006).

  CHAPTER 24

  “At In-N-Out corporate headquarters in Irvine, the inner circle fumed”: In the Matter of Harry Guy Snyder Testamentary Trust, BP095639 (S.C. Calif. 2006), 7.

  “In-N-Out Lawsuit Exposes Family Rift,”: Ronald D. White, “In-N-Out Lawsuit Exposes Family Rift,” Los Angeles Times, January 7, 2006; John Pomfret, “Iconic In-N-Out Battles Executive over Firm’s Direction,” Washington Post, January 30, 2006.

  “The chain was a ‘state treasure,’”: “Double-Double Trouble,” Los Angeles Times, January 18, 2006.

  “The whole thing seems sordid, ugly and, worst of all, familiar,”: Joe Christiano, “Wherefore the Double Double,” Los Angeles Times, February 12, 2006.

  “The $380 million company”: Sales figure estimated by Technomic Inc.

  “The Los Angeles–based firm operated”: Sitrick & Company website, http://www.sitrick.com.

  “charging $695 an hour for what it liked to boast was its expertise in shaping news and public opinion.”: Stevey Oney, “Call Mike Sitrick,” Los Angeles, July 2006.

  “the Catholic Archdiocese of Los Angeles during the pedophile scandal”: Carla Hall, “L.A. Archdiocese Enlists Services of Top PR Firm,” Los Angeles Times, May 30, 2001.

  “as well as embattled talk show host Rush Limbaugh”: Peter Whoriskey, “Rush Limbaugh Turns Himself In on Fraud Charge in Rx Drug Probe,” Washington Post, April 29, 2006.

  “A kind of ‘bull in the china shop’”: Stevey Oney, “Call Mike Sitrick,” Los Angeles, July 2006.r />
  “On March 31, 2006, an article billed as a behind-the-scenes”: Nancy Luna, “Behind the Scenes at In-N-Out,” Orange County Register, March 31, 2006.

  “Esther’s attorney bluntly told the Orange County Register that Esther would likely side with her granddaughter.” Nancy Luna, “Ailing Leader of In-N-Out Burger Dies,” Orange County Register, August, 5, 2006.

  “In a notarized statement dated January 12, 2006, and signed by Esther,”: “Statement of Esther L. Snyder Concerning Richard C. Boyd,” January 12, 2006.

  “Eleven days later, on January 23, Boyd’s attorneys secured a signed declaration from Esther refuting many of In-N-Out’s assertions.”: “Declaration of Esther L. Snyder,” January 23, 2006.

  “In February, Boyd moved to have Esther give a deposition.”: “Opposition to Motion to Compel Compliance with Subpoena for Deposition of Esther Snyder,” In Re the Matter of Esther L. Snyder Trust–1989; declarations of James P. Larsen, MD, and Kenneth R. Jutzy, MD, BP095380, April 4, 2006; signed letter from Dr. Larsen to Esther’s attorney James Morris, dated February 22, 2006.

  “There was no shortage of legal muscle-flexing.”: Ibid.

  “Esther’s niece Alice Meserve Manas signed a court declaration describing Esther as anything but happy”: “Declaration of Alice Meserve Manas,” BP095380 signed April 25, 2006.

  “in addition to being named to the board”: “Declaration of Richard Boyd,” January 30, 2006.

  “a transcript of a thirty-four-minute recorded telephone conversation between Esther Snyder and Elisa Boyd,”: “Declaration of Elisa Boyd, (authenticating Transcript of April 25, 2006 Telephone Conversation with Esther Snyder),” In Re the Matter of Esther L. Snyder Trust–1989, BP095380 (S.C. Calif. 2006).

  CHAPTER 25

  “On Tuesday, June 6, Esther’s dear friend Margaret Karcher”: Mary Rourke, “Margaret Karcher,” Los Angeles Times, June 9, 2008.

  “On January 11, 2008, a year and half later, Karcher died”: Carl Karcher Enterprises, “Carl N. Karcher, Founder of Carl’s Jr. (R), Dies,” January 11, 2008.