Papa John’s PR Firm Waited Too Long to Invoke Arbitration Clause

A public relations firm that spent years defending itself in court against a lawsuit brought by the founder of Papa John’s International Inc can’t now invoke a contractual right to send disputes to arbitration, a Sixth Circuit panel ruled.

The dispute between 247 Group LLC—otherwise known as Laundry Service—stems from a leaked conference call in which the pizza chain’s founder and former CEO John Schnatter used a racial slur and described acts of violence against minorities. Schantter, who resigned from the company’s board following a news report about the call, sued Laundry Service for violating a non-disclosure agreement.

The US ...