Aoki v. Benihana Inc.

839 F. Supp. 2d 759, 2012 WL 899691, 2012 U.S. Dist. LEXIS 35312
CourtDistrict Court, D. Delaware
DecidedMarch 15, 2012
DocketCiv. No. 11-489-SLR
StatusPublished
Cited by23 cases

This text of 839 F. Supp. 2d 759 (Aoki v. Benihana Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aoki v. Benihana Inc., 839 F. Supp. 2d 759, 2012 WL 899691, 2012 U.S. Dist. LEXIS 35312 (D. Del. 2012).

Opinion

MEMORANDUM OPINION

SUE L. ROBINSON, District Judge.

I. INTRODUCTION

On June 2, 2011, Keiko Ono Aoki (“Aoki”) and Benihana of Tokyo, Inc. (“BOT,” collectively “plaintiffs”) filed a complaint (D.I. 1) against Benihana, Inc. (“BI” or “defendant”) for defamation and injurious falsehood. On June 24, 2011, defendant filed a motion to dismiss (“original motion”) (D.I. 6) pursuant to Federal [762]*762Rule of Civil Procedure (“Rule”) 12(b)(6). On July 11, 2011, plaintiffs filed an amended complaint (“amended complaint”) (D.I. 9) as well as an answering brief (D.I. 10) to the original motion. In its reply brief to the original motion (D.I. 13), defendant noted plaintiffs’ timely filing of the amended complaint pursuant to Rule 15(a)(1)(B), and properly assumed that the original motion was moot as a result. (D.I. 13 at 1-2)

Presently before the court are defendant’s motions to dismiss the amended complaint (D.I. 16) and to strike plaintiffs’ prayer for relief, allegations and exhibits (D.I. 18). This court has jurisdiction under 28 U.S.C. § 1332.

II. BACKGROUND

Rocky Aoki, the founder of the original Benihana restaurant and of plaintiff BOT, passed away on July 10, 2008. (D.I. 9 at ¶¶ 6, 11; D.I. 17 at 2-3) His wife, at the time, was plaintiff Aoki. (Id.) By virtue of her powers as sole executor of Rocky Aoki’s estate and sole trustee of the testamentary trust created in Rocky Aoki’s will, plaintiff Aoki was elected Chief Executive Officer of BOT. (D.I. 9 at ¶¶ 9-11; D.I. 17 at 2-3) BOT is the owner of a substantial shareholder interest in the common voting stock of defendant. (D.I. 9 at ¶ 12; D.I. 17 at 2)

On December 3, 2010, BOT initiated a lawsuit against BI and Noodle Time, Inc.1 (“Delaware I litigation”)2 arguing, inter alia, that defendants in that matter were in breach of contract and were infringing BOT’s trademark rights in certain disputed countries.

On May 17, 2011, BI, Noodle Time and Benihana National Corporation3 (colleetively “Florida plaintiffs”) initiated an action in the State of Florida (“Florida litigation” and “Florida complaint”), against Aoki, BOT and Takanori Yoshimoto (“Yoshimoto,” collectively “Florida defendants”). (D.I. 17, ex. 1) In the Florida litigation, BI claimed “breach of contract, civil conspiracy, injury to business reputation ... tortious interference, and unfair competition” allegedly arising out of the Florida defendants’ “deceptive, unfair and unlawful conduct relating to their disparagement of [Florida plaintiffs] in an attempt to dilute the value of [BI], discourage prospective purchasers from purchasing stock in [BI], and to deceive the public into believing that the title to the BENIHANA® Trademarks is in question when it is not.” (D.I. 17, ex. 1 at ¶ 1)

The Florida complaint alleges that “[i]n or about July 2010[, BI] announced it was looking at strategic alternatives, including a possible sale, in order to maximize shareholder value[, and] began a competitive bidding process and solicited third parties with respect to a possible transaction.” (Id. at ¶ 27) The Florida complaint further alleges that the Delaware I litigation “was aimed at causing prospective purchasers to question [BI’s] relationship with BOT, the value of [BI’s] assets, and the stability of the company.” (Id. at ¶ 30)

Through its publicist, Kekst and Company, and in concert with PR Newswire Association LLC and Comtex News Network, Inc., BI issued a press release (“press release”) announcing the Florida litigation. (D.I. 9 at ¶ 22-23; D.I. 17 at 3-4, 8; D.I. 20 at 5) The dateline of the press release read “MIAMI, May 18, [763]*7632011/PRNewswire via COMTEX/ — In relevant part, the press release stated:

Benihana Inc. (NASDAQ: BNHN; BNHNA) (“Benihana”), operator of the nation’s largest chain of Japanese theme and sushi restaurants, today announced that it, together with its affiliates Benihana National Corp. and Noodle Time (collectively “the Plaintiffs”), has filed a complaint against Benihana of Tokyo, Inc. (“BOT”), Keiko Aoki, and Takanori Yoshimoto (collectively “the Defendants”) in the Circuit Court of the Eleventh Judicial Circuit in and for MiamiDade County, Florida.
According to the Complaint, Aoki, motivated by a desire to perpetuate her position of control over BOT and influence over Benihana, directed BOT and Yoshimoto to engage in actions damaging to all Benihana stockholders, including BOT’s other beneficiaries. The Complaint details the Defendants’ breach of contract, civil conspiracy, injury to business reputation, violation of the Florida Deceptive and Unfair Trade Practices Act, tortious interference, and unfair competition arising out of the Defendants’ deceptive, unfair and unlawful conduct relating to their disparagement of the Plaintiffs. Through these actions, the Defendants have deliberately attempted to dilute the value of Benihana and deceive the public into believing that the title to the BENIHANA® Trademarks is in question when it is not, according to the Complaint.
Benihana said that it has pursued this litigation in order to protect the interests of all its shareholders from the Defendants’ alleged self-serving actions and agenda.

(D.1.17, ex. 2)

III. STANDARDS OF REVIEW

In reviewing a motion filed under Rule 12(b)(6), the court must accept all factual allegations in a complaint as true and take them in the light most favorable to plaintiff. See Erickson v. Pardus, 551 U.S. 89, 94, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007); Christopher v. Harbury, 536 U.S. 403, 406, 122 S.Ct. 2179, 153 L.Ed.2d 413 (2002). A court may consider the pleadings, public record, orders, exhibits attached to the complaint, and documents incorporated into the complaint by reference. Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308, 322, 127 S.Ct. 2499, 168 L.Ed.2d 179 (2007); Oshiver v. Levin, Fishbein, Sedran & Berman, 38 F.3d 1380, 1384-85 n. 2 (3d Cir.1994). A complaint must contain “a short and plain statement of the claim showing that the pleader is entitled to relief, in order to give the defendant fair notice of what the ... claim is and the grounds upon which it rests.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 545, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (interpreting Fed.R.Civ.P. 8(a)) (internal quotations omitted). A complaint does not need detailed factual allegations; however, “a plaintiffs obligation to provide the ‘grounds’ of his entitle[ment] to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Id. at 545, 127 S.Ct. 1955 (alteration in original) (citation omitted).

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839 F. Supp. 2d 759, 2012 WL 899691, 2012 U.S. Dist. LEXIS 35312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aoki-v-benihana-inc-ded-2012.