Barber Surgeons Guild PC et al. v. Louis Mariotti et al.

CourtDistrict Court, S.D. New York
DecidedMarch 25, 2026
Docket1:25-cv-02537
StatusUnknown

This text of Barber Surgeons Guild PC et al. v. Louis Mariotti et al. (Barber Surgeons Guild PC et al. v. Louis Mariotti et al.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barber Surgeons Guild PC et al. v. Louis Mariotti et al., (S.D.N.Y. 2026).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -------------------------------------------------------x

BARBER SURGEONS GUILD PC et al.,

Petitioners,

-v- No. 25-CV-2537-LTS

LOUIS MARIOTTI et al.,

Respondents.

-------------------------------------------------------x MEMORANDUM ORDER Petitioners Barber Surgeons Guild PC and Barber Surgeons, Inc. (collectively, “Petitioners”) request that the Court vacate an arbitration award rendered in a proceeding brought against Louis Mariotti, Roy Stoller, Louis J. Mariotti, DO, PLLC, and R. Stoller, DO, PLLC (collectively, “Respondents”) under sections 10(a)(3) and (4) of the Federal Arbitration Act (“FAA”). Respondents counterclaim for confirmation of the arbitration award. The award addresses claims of misappropriation of trade secrets, breach of contract, and defamation asserted by Petitioners and their affiliate Justin Edward Rome MD PC, which apparently did business as Barber Surgeons Guild New York.1 0F Pending before the Court are various motions and a proposed stipulation, including: • Petitioners’ motion to seal certain materials (docket entry no. 24 (“Motion to Seal” or “Mot. Seal”));

1 The parties refer to Justin Rome and the New York entity Justin Edward Rome MD PC together as “BSG NY,” and the Court does likewise in this Memorandum Order. BSG NY is not a party to this action. • Respondents’ motion to dismiss Petitioners’ initial Petition (docket entry no. 1 (“Initial Petition”)) for lack of subject matter jurisdiction under Rule 12(b)(1) of the Federal Rules of Civil Procedure (docket entry no. 28 (“First Motion to Dismiss” or “First MTD”));2 • Respondents’ motion to dismiss the Amended Petition (docket entry no. 31 (“Amende1Fd Petition” or “Am. Pet.”)) under Rule 12(b)(7) of the Federal Rules of Civil Procedure for failure to join an indispensable party under Rule 19 (docket entry no. 36 (“Second Motion to Dismiss” or “Second MTD”)); • a proposed stipulation (docket entry no. 38 (“Stipulation”)) purporting to resolve the Second MTD by approving the joinder of BSG NY as a party to what Respondents characterize as their compulsory counterclaim for confirmation of the arbitration award, as pleaded in their Answer to the operative amended Petition (docket entry no. 41 (“Answer”)); • Petitioners’ letter motion seeking to amend the case caption (docket entry no. 49 (“Letter Motion”)); • Petitioners’ motion to vacate the arbitration award (docket entry no. 16 (“Motion to Vacate” or “Vacate Mot.”)); and • Respondents’ motion to confirm the arbitration award (docket entry no. 46 (“Motion to Confirm”)). For the reasons that follow, the Motion to Seal is granted. The Court, however, declines to “So Order” the Stipulation and denies the Letter Motion. The Court further concludes that this case must be dismissed for failure to name an indispensable party under Rule 19 of the Federal Rules of Civil Procedure3 and accordingly terminates all other pending 2F motions as moot. I. BACKGROUND The following facts are drawn from the parties’ papers and the underlying Arbitration Award (docket entry no. 36-2 (“Arbitration Award”)) and are not in dispute unless otherwise noted. BSG NY and Petitioner Barber Surgeons Guild PC are hair restoration clinics that are headquartered in New York and California, respectively, and both are managed by

2 The First Motion to Dismiss was rendered moot by the filing of the Amended Petition (docket entry no. 31) and is accordingly denied. 3 Hereinafter, references to any numbered Rule refer to the corresponding numbered provision of the Federal Rules of Civil Procedure. Petitioner Barber Surgeons, Inc., which is also headquartered in California. (Initial Pet. ¶ 1.) Respondents Louis Mariotti (“Mr. Mariotti”) and Roy Stoller (“Mr. Stoller”) are physicians who respectively own and operate their medical practices through Respondents Louis J. Mariotti, DO, PLLC and R. Stoller, DO, PLLC. (Id. ¶ 2.)

This suit concerns an arbitration award rendered in a proceeding related to arbitration provisions of contracts entered into between BSG NY and Mr. Mariotti in 2021 (see docket entry no. 36-3 (“Mariotti Agreement”)) and between BSG NY and Mr. Stoller in 2022 (see docket entry no. 36-4 (“Stoller Agreement”)). Under those contracts, BSG NY retained Mr. Mariotti and Mr. Stoller to provide hair restoration services in its New York office. Those contracts provided, among other things, that “[a]ny dispute arising out of or relating to this Agreement or the subject matter thereof . . . will be resolved by arbitration.” (Mariotti Agreement ¶ 14; Stoller Agreement ¶ 14.) It is undisputed that BSG NY was the only other signatory to each agreement and was the only entity with which Respondents contracted and worked.

According to Petitioners, after Mariotti left his employment with BSG NY in 2023, Mr. Stoller accessed the files of thousands of patients and transferred them to Mr. Mariotti, who then solicited the patients via text messages. (Am. Pet. ¶ 5.) In response to these actions, and in light of the arbitration clauses contained in the Agreements, BSG NY and Petitioners initiated arbitration proceedings against Respondents, alleging trade secret violations under California’s Uniform Trade Secrets Act, Cal. Civ. Code § 3426, and the federal Defend Trade Secrets Act, 18 U.S.C. § 1836. (Id. ¶ 6.) On February 7, 2025, an arbitrator from the American Health Lawyers Association issued an Arbitration Award that rejected all of the parties’ claims and counterclaims and declined to award any relief. (Arbitration Award at 10-11.) On March 27, 2025, Petitioners and BSG NY jointly filed the Initial Petition in this proceeding, which sought vacatur of the Arbitration Award. In particular, they argued that the arbitrator exceeded her authority and acted in violation of fundamental fairness when she concluded that “sharing patient information was reasonably within the scope of [the physicians’] professional

relationship.” (Initial Pet. ¶ 8-9.) The Initial Petition asserted that the Court had federal question jurisdiction of this action under 28 U.S.C. section 1331 based on the underlying Defend Trade Secrets Act claims that the arbitrator had decided. (Id. ¶ 10.) Respondents moved to dismiss the Initial Petition for lack of subject matter jurisdiction, arguing that Supreme Court precedent squarely foreclosed the asserted jurisdictional ground. (First MTD at 1 (citing Badgerow v. Walters, 596 U.S. 1, 5 (2022) (holding that a “‘look-through’ approach to jurisdiction” does not apply to requests to vacate arbitral awards)).) In response, Petitioners filed an Amended Petition that was largely identical to the Initial Petition, except that it dropped BSG NY as a Petitioner and asserted that the Court has diversity jurisdiction of this action under 28 U.S.C. section 1332. (Am. Pet. ¶¶ 10-

15.) BSG NY then filed a case against Respondents in New York state court and moved to vacate the arbitral award on grounds nearly identical to Petitioners’. (See docket entry no.

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Barber Surgeons Guild PC et al. v. Louis Mariotti et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/barber-surgeons-guild-pc-et-al-v-louis-mariotti-et-al-nysd-2026.