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Dunkin’ dipping into legal reserves

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Dunkin’ Brands Group Inc., the parent of Dunkin’ Donuts cafes and Baskin-Robbins ice cream shops, said it would increase its legal reserve in the current quarter following a court ruling against it in Canada. A group of Dunkin’ Donuts franchisees in Quebec had filed a lawsuit against the company in 2003 on a variety of claims. The Quebec Superior Court ruled against Dunkin’ Brands last week and ordered the company to pay $16.4 million Canadian plus costs and interest to compensate the franchises for losses they incurred. Dunkin’ Brands, which operates in nearly 60 countries, said it had earlier reserved C$4 million for the potential loss. The company, which recently expanded into Iowa, said the damages awarded were unwarranted and it intends to appeal the decision.