Henderson v. Golden Corral Systems, Inc.

CourtDistrict Court, S.D. New York
DecidedSeptember 23, 2021
Docket7:19-cv-02878
StatusUnknown

This text of Henderson v. Golden Corral Systems, Inc. (Henderson v. Golden Corral Systems, Inc.) 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
Henderson v. Golden Corral Systems, Inc., (S.D.N.Y. 2021).

Opinion

USDC SDNY UNITED STATES DISTRICT COURT DOCUMENT SOUTHERN DISTRICT OF NEW YORK ELECTRONICALLY FILED DOC #: SHERRANCE HENDERSON, Daxbe REVEISS 9/23/2021 _. Plaintiff, v: 19 CV 2878 (NSR) GOLDEN CORRAL FRANCHISING SYSTEMS, OPINION & ORDER INC., LANCE TRENARY, ANTHONY SEGRETI, NIRAL PATEL, TD BANK, and JOHN CRAIG, Defendants. NELSON S. ROMAN, United States District Judge Plaintiff Sherrance Henderson (“Plaintiff”), brings this action pro se against Golden Corral Franchising Systems, Inc. (“Golden Corral”) and others, alleging, inter alia, breach of contract and violation of 42 U.S.C. §§ 1981 and 1985 stemming from her endeavors to open and operate a Golden Corral restaurant franchise in Poughkeepsie, New York.! Before the Court is Golden Corral’s motion to dismiss,” which Plaintiff opposed (“Opp’n Aff.” (ECF No. 53-5; accord ECF Nos. 47-10 and 50)). For the reasons that follow, the Court GRANTS Golden Corral’s motion and dismisses Plaintiff's claims against Golden Corral without prejudice for lack of standing. Defendants TD Bank and Anthony Segreti also filed motions to dismiss. (ECF Nos. 47 and 48.) In her opposition papers, Plaintiff voluntarily withdrew her claims against these Defendants. (Opp’n Aff. § 3.) Accordingly, TD Bank and Anthony Segreti’s motions are DENIED as moot.

' The Amended Complaint contains causes of action for violations of violations of the Racketeer-Influenced Corrupt Organizations statute (“RICO”) and intentional infliction of emotional distress, which Plaintiff withdrew in her affidavit in opposition to the motions to dismiss. (Opp’n Aff. § 4.) ? Golden Corral’s motion was also filed on behalf of Golden Corral CEO Lance Trenary; however, Plaintiff has voluntarily withdrawn her claims against Trenary. (Opp’n Aff. § 3.) Accordingly, the Court need not address any claims against Trenary.

BACKGROUND The facts herein are drawn from Plaintiff’s Amended Complaint (“AC”)3 and Affidavit in Opposition to Golden Corral’s motion, and some of the exhibits in support of her original complaint, which Plaintiff cited in the Amended Complaint.4 The Court “accepts all well-pleaded facts in the Complaint and Supplemental Pleading as true for the purpose of ruling on a motion to

dismiss.” Jackson v. NYS Dep’t of Labor, 709 F.Supp.2d 218, 222 (S.D.N.Y. 2010). I. Factual Allegations Plaintiff is a disabled African American female with two autistic children. (AC ¶ 2.) A. Franchise Agreement On or about March 2013, Golden Corral presented Plaintiff with a written Franchise Disclosure Document (“FDD” or “franchise agreement”). (AC ¶ 6.) Plaintiff alleges that at this time, the Vice President of Franchise Sales asked Plaintiff, on behalf of Golden Corral, whether she was married or had any children and “told/informed/instructed Plaintiff to acquire two other people, preferably men, to share her franchise license with [r]estaurant experience because Plaintiff could not aid in managing the business due to her disability and because she is a woman who has never operated a business of this type.” (AC ¶ 8.) Plaintiff further alleges that she signed

the FDD without sufficient legal knowledge or advice of counsel (AC ¶ 7 ) and that that because

3 On page 3 of the Amended Complaint, the paragraph numbering inexplicably jumps from 8 to 24. There are no paragraphs numbered 9 through 23. 4 A court reviewing a motion to dismiss may “consider factual allegations made by a pro se party in his papers opposing the motion.” Walker v. Schult, 717 F.3d 119, 122 n.1 (2d Cir. 2013). Additionally, when the Court sua sponte directed Plaintiff to file an amended complaint that complied with Federal Rule of Civil Procedure 8, the Court stated that Plaintiff was not required to reattach her over 200 pages of exhibits to the amended pleading. (ECF No. 5.) Accordingly, the Court has reviewed and cited to certain exhibits Plaintiff appended to her original complaint that were directly referenced in the Amended Complaint. of the Vice President’s instruction, issued Darren “Chip” Joyner and Milton A. Dewar five percent (5%) each of her Golden Corral franchise license, retaining ninety percent (90%) ownership. (Id.) Plaintiff alleges that within the FDD and other written and oral communication, Golden Corral made certain promises regarding training, personnel services, and support that Golden

Corral would provide. (Opp’n Aff. ¶ 9). B. Allegations of Discrimination Prior to Cornucopia Queen Assignment On or about September 2014, Plaintiff, Joyner, and Dewar were in an informal meeting with Golden Corral’s lead legal counsel who asked Plaintiff why she and Dewar were not married given that they were cohabitating as a common law married couple. (AC ¶ 24.) On or about May 5, 2016, Plaintiff requested training to become a Golden Corral certified manager and was informed that Golden Corral was not training owners and it would be too difficult for Plaintiff due to her disability and her use of a single prong cane. (AC ¶ 25.) Plaintiff alleges that between the time Plaintiff entered into the franchise agreement and January 2014, Plaintiff was told by the Senior Vice President of Franchising that Plaintiff could not handle a store in a strip mall because she was a new franchisee, lacked the experience, and her

financial status only afforded her to have a “GC-11” store. (AC ¶ 64.) Plaintiff alleges that male franchisees and new owners were offered and have stores in strip malls. (AC ¶ 65.) Plaintiff further alleges that Golden Corral told her that she had to change her location after she received new franchise/store tax abatements from Newark and Orange, New Jersey. (AC ¶ 65.) Between July and October 2014, Golden Corral again told Plaintiff to pick a different location on Long Island, New York. (AC ¶ 65.) Plaintiff met with the Franchise Area Development Vice President, whose first name was Richard, on an unspecified date and he allegedly told plaintiff that she had to call him “Big Dick” in what he called Plaintiff’s “sexy radio voice” if she wanted any area approved for a store. (AC ¶¶ 66-67.) C. Assignment to Cornucopia Queen On or about July 31, 2015, Plaintiff assigned her rights in connection with her Golden Corral Franchise to her “holding company,” Cornucopia Queen, Inc. (Opp’n Aff. ¶ 10.) Plaintiff avers that following the assignment, Golden Corral continued to make verbal and written representations and warranties that it would provide training, personnel services and other support.

(Opp’n Aff. ¶ 11.) In reliance on these representations, on or about December 22, 2015, Plaintiff personally guaranteed a loan in excess of $3,600,000.00 to Cornucopia Queen, Inc. (Opp’n Aff. ¶ 13.) In addition, Plaintiff personally invested over a million dollars in Cornucopia Queen, Inc. (Opp’n Aff. ¶ 14.) D. Poughkeepsie, New York Golden Corral Restaurant The Poughkeepsie Golden Corral store (“Poughkeepsie Store”) was built from raw land at 2345 South Road, Poughkeepsie, New York. (AC ¶¶ 29-30.) It opened in January 2017. (AC ¶ 30.) On or about February 1, 2017, Plaintiff emailed Golden Corral’s Vice President of Franchise Development requesting additional support for the Poughkeepsie Store and he responded by sending 20-year Golden Corral veteran Jaymie Aimalefoa to work with the

Poughkeepsie Store. (AC ¶¶ 37-38.) Plaintiff avers that from about February 1, 2017 through March 15, 2017, Aimalefoa “did not offer support . . . . was cynical, distrustful” and gave negative reports regarding Plaintiff and her store to unspecified persons affiliated with Golden Corral.

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Bluebook (online)
Henderson v. Golden Corral Systems, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-v-golden-corral-systems-inc-nysd-2021.