Maury v. Ventura In Manhattan, Inc.

CourtDistrict Court, S.D. New York
DecidedJune 10, 2021
Docket1:18-cv-07496
StatusUnknown

This text of Maury v. Ventura In Manhattan, Inc. (Maury v. Ventura In Manhattan, 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
Maury v. Ventura In Manhattan, Inc., (S.D.N.Y. 2021).

Opinion

UO. SUNT DOCUMENT UNITED STATES DISTRICT COURT ELECTRONICALLY FILED SOUTHERN DISTRICT OF NEW YORK cancer □□ nn nn nnn nn nn nnn nn nnn nnn nnn nnn nn nn nnn cn nn □□□ □□□ XK DATE FILED: 6/10/2021 JULIE MAURY, : : 18-CV-7496 (RWL) Plaintiff, : : DECISION AND ORDER: - against - : MOTION TO DISMISS VENTURA IN MANHATTAN, INC., and VSM NY HOLDINGS LLC, : Defendants. ---------------------------------------------------------------X ROBERT W. LEHRBURGER, United States Magistrate Judge. Plaintiff Julie Maury (“Plaintiff”), who is disabled and uses a wheelchair, filed this action against the tenant and landlord of a Fairway Market grocery store (the “Store”) for violation of the American with Disabilities Act (the “ADA”) and its state and local counterparts. Defendants Ventura In Manhattan, Inc. (“Ventura”), and VSM NY Holdings LLC (“VSM”) are, respectively, the property’s current landlord and tenant. Earlier in the action, the predecessor tenant defendant, Fairway East 86th Street LLC (“Legacy Fairway”), filed for bankruptcy, at which point Plaintiff dropped Legacy Fairway from the case and added VSM as a defendant. Defendant VSM now moves to dismiss the claims against it pursuant to Federal Rule of Civil Procedure 12(b)(6) on the basis that Plaintiff's claims are barred by the sale of the Store to VSM, and, alternatively, on the basis that Plaintiff has failed to plausibly plead a claim based on alterations made to the Store. For the following reasons, Defendant’s motion is DENIED. Factual And Procedural Background The facts are drawn from Plaintiff's Third Amended Complaint, filed on October 30, 2020, which is the currently operative complaint (the “Complaint”), as well as from

documents incorporated by reference in the Complaint, public records, and matters of which the Court may take judicial notice. See Kleinman v. Elan Corp., 706 F.3d 145, 152 (2d Cir. 2013) (identifying materials that a court may consider on motion to dismiss).

A. Plaintiff’s Claims Plaintiff lives near and shops at the Store. (Compl. ¶¶ 9, 31.) On August 17, 2018, she commenced litigation against Legacy Fairway and Ventura. (Dkt. 1.) She alleged then, and continues to allege now against VSM as current operator of the Store, that the Store is a place of public accommodation not readily accessible as required by the ADA, state, and local law. (Compl. ¶¶ 19-21, 38.) The Store has at least 27 discrete barriers that impede equal access. (Compl. ¶¶ 22, 33, 39.) The barriers include, for example, pathways that are less than 36 inches wide due to merchandise displays; food service counters that are too high; inaccessible checkout aisles; and others. (Compl. ¶ 39.) Plaintiff further alleges that both Defendants made alterations to

the Store but when doing so failed to make changes that would make the Store accessible to Plaintiff to the maximum amount feasible. (Compl. ¶¶ 55, 64.) As a result, Plaintiff has not been able to enjoy full and equal access to the Store but would like to do so in the future. (Compl. ¶¶ 41-45, 50, 52, 54.) The Complaint advances four causes of action. The First Cause of Action, seeking injunctive relief for violation of Title III of the ADA, and the Third Cause of Action, seeking injunctive relief and damages for violation of the Administrative Code of the City of New York (the “NYCHRL”), are asserted against both Defendants. The Second Cause of Action (mislabeled as “Third Cause of Action” in the Complaint), for violation of the New York State Executive Law, and the Fourth Cause of Action, for violation of the New York State Civil Rights Law, are asserted against only Ventura. B. Legacy Fairway’s Bankruptcy And Sale To VSM Certain allegations in the Complaint turn on the divide before and after May

2020, when VSM acquired Legacy Fairway assets, a transaction arising out of Legacy Fairway’s bankruptcy. Legacy Fairway filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code on January 23, 2020. (Dkt. 54, Ex. A.) The bankruptcy filing resulted in the automatic stay of claims against Legacy Fairway pursuant to Section 362 of the Bankruptcy Code, 11 U.S.C. § 362. (Dkt. 55.) On March 25, 2020, Plaintiff was served notice of the potential sale of the Store by Legacy Fairway to VSM pursuant to Section 363 of the Bankruptcy Code and informed of her right to object to the sale by April 1, 2020. (Bisceglie Decl. Exs. 1-2.1) Plaintiff did not lodge any objection or other attempt to preserve her claims with respect to the Legacy Fairway business.

By order dated April 20, 2020 (the “Sale Order”), the bankruptcy court approved the sale of the Store to VSM. (Bisceglie Decl. Ex. 3.) The acquisition was effectuated by an Asset Purchase Agreement.2 (Compl. ¶ 13.) The sale closed on May 14, 2020. (Compl. ¶ 12.) The assets, acquired for $73.2 million, included five supermarkets, a production distribution center parking lot, and certain intellectual property. (Compl. ¶ 14; Asset Purchase Agreement at p. 1.) As part of the sale, VSM also assumed

1 “Bisceglie Decl.” refers to the Declaration of Kyle Bisceglie, filed November 16, 2020 (Dkt. 88). That declaration attaches, among other items, legal documents from Legacy Fairway’s bankruptcy of which the Court takes judicial notice.

2 The Asset Purchase Agreement appears as Exhibit A to the Sale Order attached as Exhibit 3 to the Declaration of Kyle Bisceglie. certain liabilities (Compl. ¶ 14), including liabilities incurred after the bankruptcy “relating to or arising out of the ownership or operation of the [Store].” (Asset Purchase Agreement §§ 1.1 (definition (d) of “Assumed Liabilities”), 2.2.) Both the assets acquired and liabilities assumed were “on ‘as is’ condition and on a ‘where is’ basis,

without any representation or warranty of any kind ….” (Compl. ¶ 30 (quoting Asset Purchase Agreement § 4.8).) The Sale Order includes limitations and prohibitions on claims made arising out of the assets acquired through the sale. For instance, the Sale Order provides that holders of any claims who did not object to the sale are deemed to have consented to the sale pursuant to the Bankruptcy Code. (Bisceglie Decl. Ex. 3 ¶ 14.) More broadly, VSM acquired the Fairway Legacy assets “free and clear of all encumbrances, claims …, interests, and liens, … and any derivative, vicarious, transferee or successor liability claims, rights or causes of action (whether in law or in equity …), whether arising prior to or subsequent to the [commencement of the bankruptcy proceedings].” (Bisceglie

Decl. Ex. 3 ¶ 13.) Further, the Sale Order bars litigants (among others) who held claims against Legacy Fairway prior to the sale and arising out of the acquired assets (including the Store) from commencing or continuing any such claims against the buyer – i.e., VSM. (Bisecglie Decl. Ex. 3 ¶ 15.) In other words, litigants who, before the sale, asserted claims, as defined within the Bankruptcy Code, against Legacy Fairway arising out of its business may not, after the sale, assert those claims against VSM. C. Plaintiff’s Pleading Amendments After The Legacy Fairway Sale On June 11, 2020, Plaintiff filed an amended complaint to account for the sale of the Fairway business to VSM. (Dkt. 67.) In particular, she dropped Legacy Fairway as a defendant, and added VSM as a defendant. Plaintiff made further amendments, culminating in the current Complaint. (Dkt. 84.) The Complaint maintains many of the allegations that were made against Legacy Fairway in the initial complaint, including assertion of the same barriers to equal access

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Bluebook (online)
Maury v. Ventura In Manhattan, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/maury-v-ventura-in-manhattan-inc-nysd-2021.