Kunal Khiyani v. Allied Adult Day Care, LLC, d/b/a Allied Billing Company et al.

CourtDistrict Court, W.D. Kentucky
DecidedDecember 9, 2025
Docket4:25-cv-00114
StatusUnknown

This text of Kunal Khiyani v. Allied Adult Day Care, LLC, d/b/a Allied Billing Company et al. (Kunal Khiyani v. Allied Adult Day Care, LLC, d/b/a Allied Billing Company et al.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kunal Khiyani v. Allied Adult Day Care, LLC, d/b/a Allied Billing Company et al., (W.D. Ky. 2025).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY OWENSBORO DIVISION CIVIL ACTION NO. 4:25-CV-00114-GNS

KUNAL KHIYANI PLAINTIFF

v.

ALLIED ADULT DAY CARE, LLC, d/b/a ALLIED BILLING COMPANY et al. DEFENDANTS

MEMORANDUM OPINION AND ORDER This matter is before the Court on Plaintiff’s Motions for Leave to Seal (DN 6, 9, 23), Plaintiff’s Motion for Temporary Restraining Order and Preliminary Injunction (DN 8), and Defendants’ Motion to File Belated Brief (DN 27). The motions are ripe for adjudication. I. BACKGROUND In April 2023, Plaintiff Kunal Khiyani (“Khiyani”) entered into an equity purchase agreement (“Purchase Agreement”) with Defendants Stephen and Kimberly Bryson (collectively, “the Brysons”) for the purchase of the Brysons’ membership interests in three Kentucky limited liability companies—Devoted Senior Care, LLC, Legacy Senior Care, LLC, and Noble Senior Care, LLC (collectively, “the Companies”). (Am. Compl. Ex. 1, at 1, DN 15-1). The Companies are each franchisees of Home Instead, Inc. (Am. Compl. Ex. 1, at 1). The Companies provide in-home care and personal assistance services, roughly half of which are paid for by Medicaid. (TRO & Prelim. Inj. Hr’g, Oct. 30, 2025, 10:28-29 AM). Medicaid requires clients to work with a case manager, who will refer them to a Medicaid licensee providing care services. (TRO & Prelim. Inj. Hr’g at 2:40 PM). The Companies are subcontractors for these licensees. (TRO & Prelim. Inj. Hr’g at 10:28-29 AM). Medicaid requires a client’s case manager to be distinct from the care provider as an oversight mechanism. 907 KAR 7:010; 42 C.F.R. § 441.301(c)(1)(vi); (TRO & Prelim. Inj. Hr’g at 2:41 PM). The Brysons provide case management services through Defendant Allied Adult Day Care, LLC, (“Allied”) in western Kentucky. (TRO & Prelim. Inj. Hr’g at 2:40-41 PM). Allied provides attendant care services in other parts of the state. (TRO & Prelim. Inj. Hr’g at 2:40-41 PM).

The Purchase Agreement prohibits the Brysons from using the Companies’ confidential information. (Am. Compl. Ex. 1, at 16). The Purchase Agreement also includes a noncompetition provision, preventing the Brysons from: (i) directly or indirectly, alone or as a partner, equityholder, owner, joint venturer, officer, director, manager, member, employee, consultant, agent, or independent contractor of, or lender to, any Person (other than any of the Affiliated Entities (as defined below)), engage in any Restricted Business (as defined below) anywhere within the exclusive area described in the Franchise Agreements (provided that the passive ownership of less than 5% of the ownership interests of an entity having a class of securities that is traded on a national securities exchange or over-the-counter market is not a violation of this paragraph); (ii) directly or indirectly, alone or as a partner, equityholder, owner, joint venturer, officer, director, manager, member, employee, consultant, agent, or independent contractor of, or lender to, any Person, request or advise any customer or any other Person, firm, vendor, contractor, lessor, franchisee, or other entity having a business relationship (whether formed prior to or after the date of this Agreement) with Buyer or any of his Affiliates (including the Companies) (Buyer and his Affiliates, including the Companies, each an “Affiliated Entity” and collectively the “Affiliated Entities”), to withdraw, curtail, or cancel any of its Restricted Business (as defined below) with such Affiliated Entity or engage in any other activity that could reasonably be expected to have an adverse effect on the business relationship such Person has with such Affiliated Entity; (iii) directly or indirectly, alone or as a partner, equityholder, owner, joint venturer, officer, director, manager, member, employee, consultant, agent, or independent contractor of, or lender to, any Person, solicit or divert Restricted Business (as defined below) from, or attempt to convert to other methods of using the same or similar products or services as provided by an Affiliated Entity, any customer, client, account or location of an Affiliated Entity; or (iv) directly or indirectly, alone or as a partner, equityholder, owner, joint venturer, officer, director, manager, member, employee, consultant, agent, or independent contractor of, or lender to, any Person, solicit for employment, or engagement as an independent contractor, or for any other similar purpose, any Person who was in the twelve-month period preceding the solicitation or is at the time of the solicitation, an employee of any Affiliated Entity, except with respect to Madison Fariss.

(Am. Compl. Ex. 1, at 16-17 (original emphasis omitted)). Restricted business is defined as “providing various in-home nonmedical care and personal assistance services, including care and companionship services, bathing, dressing, grooming, personal hygiene assistance, light housekeeping, meal planning and preparation, running errands, transportation, medication reminders, and Alzheimer’s and dementia care.” (Am. Compl. Ex. 1, at 17). Khiyani alleges that the Brysons misrepresented Allied as providing only Medicaid billing services and failed to disclose Allied’s performance of case management services. (Pl.’s Mem. Supp. Mot. TRO Prelim. & Inj. 10, DN 8-1). According to Khiyani, by referring Medicare patients to the Companies’ direct competitors and enrolling patients in Kentucky’s Participant-Directed Services (“PDS”) program connecting patients to individual caregivers, Allied diverts business away from the Companies in violation of the noncompetition agreement. (Pl.’s Mem. Supp. Mot. TRO & Prelim. Inj. 12). Khiyani also asserts that the Brysons are using the Companies’ confidential information—including former client lists, caregiver schedules, and wage information—to provide case management services and hire caregivers for PDS. (Pl.’s Mem. Supp. Mot. TRO & Prelim. Inj. 13). Khiyani initiated this suit and moved for a preliminary injunction. (Compl., DN 1; Pl.’s Mot. TRO & Prelim. Inj., DN 8). An evidentiary hearing was held on October 30, 2025. (Text Order, DN 19). Allied moved for leave to file a belated brief. (Defs.’ Mot. Leave File Belated Br., DN 27). II. JURISDICTION The Court has subject matter jurisdiction over this action under 28 U.S.C. § 1332 as there is complete diversity between the parties and the amount in controversy exceeds $75,000.00. III. DISCUSSION A. Defendants’ Motion for Leave to File Belated Brief

Allied moved for leave to file a belated brief. (Defs.’ Mot. Leave File Belated Br. 1). At the October 30 evidentiary hearing, the parties were ordered to submit supplemental briefs. (Text Order, DN 19). While Defendants’ supplemental brief was due by November 13, 2025, they did not file their supplemental brief until November 14, 2025. (Defs.’ Supp. Br., DN 26). In the interest of having the arguments fully presented for the Court’s consideration, Defendants’ brief will be considered. Accordingly, Allied’s motion is granted. B. Plaintiff’s Motion for Temporary Restraining Order and Preliminary Injunction

Evaluating a request for the “extraordinary remedy” of a temporary restraining order or preliminary injunction requires considering and balancing four factors: (1) whether the movant has a strong likelihood of success on the merits; (2) whether the movant would suffer irreparable injury without the injunction; (3) whether issuance of the injunction would cause substantial harm to others; and (4) whether the public interest would be served by the issuance of the injunction. Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7

Free access — add to your briefcase to read the full text and ask questions with AI

Related

International Dairy Foods Ass'n v. Boggs
622 F.3d 628 (Sixth Circuit, 2010)
Charles Adams v. Federal Express Corporation
547 F.2d 319 (Sixth Circuit, 1976)
Roland MacHinery Company v. Dresser Industries, Inc.
749 F.2d 380 (Seventh Circuit, 1984)
Greg McNeilly v. Terri Land
684 F.3d 611 (Sixth Circuit, 2012)
Eastern Ky. Lumber & Development Co. v. Waddell
239 S.W.2d 68 (Court of Appeals of Kentucky, 1951)
Sahni v. Hock
369 S.W.3d 39 (Court of Appeals of Kentucky, 2010)
Patio Enclosures, Inc. v. Herbst
39 F. App'x 964 (Sixth Circuit, 2002)
Apex Tool Group, LLC v. Wessels
119 F. Supp. 3d 599 (E.D. Michigan, 2015)
Smith v. Tarter
305 F. Supp. 3d 733 (E.D. Kentucky, 2018)
Ferrero v. Associated Materials Inc.
923 F.2d 1441 (Eleventh Circuit, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
Kunal Khiyani v. Allied Adult Day Care, LLC, d/b/a Allied Billing Company et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/kunal-khiyani-v-allied-adult-day-care-llc-dba-allied-billing-company-kywd-2025.