Alemayehu v. Abere

199 F. Supp. 3d 74, 2016 U.S. Dist. LEXIS 101658, 2016 WL 4133499
CourtDistrict Court, District of Columbia
DecidedAugust 3, 2016
DocketCivil Action No. 2016-0596
StatusPublished
Cited by11 cases

This text of 199 F. Supp. 3d 74 (Alemayehu v. Abere) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alemayehu v. Abere, 199 F. Supp. 3d 74, 2016 U.S. Dist. LEXIS 101658, 2016 WL 4133499 (D.D.C. 2016).

Opinion

*77 MEMORANDUM OPINION

Granting in Part and Denying in Part Defendant’s Motion to Dismiss

RUDOLPH CONTRERAS, United States District Judge

I. INTRODUCTION

Plaintiff Neway Alemayehu brings this action alleging that three individuals, Belay Abere, Bekalu Bayabile, and Iyossias Tilahun (collectively, “Defendants”), worked together to defraud Mr. Alemaye-hu out of his $460,000 investment in a restaurant enterprise currently known as Amsterdam Café and Lounge. See generally Compl., ECF No. 1. Mr. Tilahun, proceeding pro se, has moved to dismiss Mr. Alemayehu’s complaint under Federal Rule of Civil Procedure 12(b)(6). See Def.’s Mot. Dismiss at 1, ECF No. 5. Because the Court concludes that Mr. Alemayehu has failed to state a claim upon which relief can be granted for his promissory estoppel and quantum meruit causes of action, the Court will grant Mr. Tilahun’s motion to dismiss as to those claims. Because, however, the Court also determines that Mr. Alemayehu has properly alleged his remaining claims, the Court will deny Mr. Tilahun’s motion to dismiss as to Mr. Ale-mayehu’s remaining claims.

II. BACKGROUND

According to the complaint, Mr. Baya-bile and Mr. Abere approached Mr. Ale-mayehu about investing in a restaurant enterprise in April 2015. 1 Compl. ¶ 7. A written agreement, signed by Mr. Abere, described the terms of the investment: Mr. Abere would transfer a building lease and liquor license to BelayAbere Enterprises, LLC (“the LLC”); Mr. Abere and Mr. Bayabile would be 5 percent and 15 percent shareholders in the LLC, respectively; Mr, Alemayehu would be the majority shareholder (owning the remaining 80 percent) of the LLC; and Mr. Alemayehu would serve as the executive manager of both the LLC and the restaurant. Id. Mr. Abere also made oral assurances reinforcing these terms. See id.

Based on these written agreement and oral assurances, Mr. Alemayehu decided to proceed with investing in the restaurant. Id. Mr. Alemayehu thus began contributing funds to “(a) pay back rents that [Mr.] Abere owed the landlord, along with taxes and insurance; (b) pay all legal fees to get the lease and liquor license transferred to the LLC; (c) finish the renovation of the restaurant; (d) replace the HVAC and water heater systems; (e) purchase and install new kitchen equipment; (f) install security and fire alarm systems; and (g) furnish the restaurant with tables, chairs, bar stools, a liquor/wine inventory, and a computerized cash register system.” Id. ¶9. Mr. Alemayhu paid for “substantial construction work” that was “performed over the course of more than three months.” Id. ¶ 8.

But Mr. Alemayehu soon encountered difficulties. The landlord for the restaurant’s building refused to allow Mr. Abere to assign the building lease to the LLC. Id. ¶ 10. Because of Mr. Abere’s “history of being dishonest, not paying rent, and disappearing on [the landlord] for months at a time,” the landlord wanted Mr. Abere to be personally liable for the rent. Id. Mr. Alemayehu, however, worked with the *78 LLC’s attorneys in an effort to persuade the landlord to allow assignment of the building lease to the LLC. Id. Mr. Alema-yehu also attempted to transfer the liquor license to the LLC, in accordance with the written agreement and oral assurances he had received. Id.

During this time, however, Mr. Abere left the United States without informing Mr. Alemayehu, traveling to East Africa. Id. Mr. Abere remained abroad for nearly three months, and was “hardly reachable” during this time. Id. Mr. Alemayehu eventually received, however, assurance from Mr. Abere that he would return to the United States shortly, and that he would reach out to the landlord’s attorney to arrange assignment of the lease. Id. With this assurance, Mr. Alemayehu continued to supply funds for the restaurant’s rent, tax, and insurance. Id.

After Mr. Abere’s return to the United States, he informed Mr. Alemayehu and the LLC attorneys that, curiously, the landlord would only assign the lease to the LLC if the landlord was “presented with an LLC operating agreement which showed [Mr.] Abere as the only member.” Id. ¶ 11. Mr. Abere requested, therefore, that Mr. Alemayehu be temporarily removed from the LLC membership docur ments. Id. Although “[njeither [Mr. Alema-yehu] nor the LLC attorneys believed this to be an acceptable outcome, ... the attorneys made the temporary changes until the assignment was accomplished.” Id. The amended operating agreement listed both Mr. Alemayehu and Mr. Abere as “manager[s].” Id.

As a result of these issues with the lease and license transfers, the LLC attorneys eventually recommended a new plan for the restaurant, which they suggested was the “only realistic way forward.” Id. ¶ 12. First, “the lease, liquor license[,] and business license,” would remain “under [Mr.] Abere’s name.” Id. Mr. Abere would also “sign a binding agreement with the LLC that made the LLC the managing company until [Mr.] Abere regained the landlord’s trust and obtained her permission to transfer the lease, liquor license!,] and business license to the LLC.” Id. Mr. Ale-mayehu, meanwhile, “would be the executive manager, have daily access to financial records, be able to participate in major corporate decisions, and secure the power of attorney from [Mr.] Abere.” Id.

In accordance with this plan, in October 2015, the liquor license was subsequently transferred to Mr. Abere. Id. ¶ 13. But Mr. Abere once again left the United States “without completing the management agreement, without giving the power of attorney to [Mr. Alemayehu], and without resolving an ongoing disagreement with [Mr. Alemayehu] regarding the financial aspect of the management agreement.” Id. Despite these issues, the restaurant opened and began operating around this time. Id.

A few months later, Mr. Abere returned to the United States. Id. ¶ 14. Shortly af-terwards, Mr. Abere “argued that his superior liability protection and experience required that he take over the management and operation of the business.” Id. Mr. Abere assured Mr. Alemayehu that this takeover would be temporary. Id. Mr. Alemayehu eventually relented as he believed this course of action “to be beneficial ... as long as [the] management was performed in an inclusive, collaborative way.” Id. But later, when Mr. Alemayehu requested that Mr. Abere complete the management agreement and sign the power of attorney, Mr. Abere delayed because “he needed legal advice.” Id. ¶ 15. Mr. Abere eventually refused to sign the power of attorney, id. and also refused to sign the “management agreement ... that would have made [Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
199 F. Supp. 3d 74, 2016 U.S. Dist. LEXIS 101658, 2016 WL 4133499, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alemayehu-v-abere-dcd-2016.