Sullivan, Jr. v. Doctor's Associates LLC

District Court, S.D. New York·Decided May 8, 2020·No. 1:19-cv-00719·Unknown

Opinion

UNITED STATES DISTRICT COURT DOC #: _________________ SOUTHERN DISTRICT OF NEW YORK DATE FILED: 5/8/2020 ------------------------------------------------------------------X PHILLIP SULLIVAN, JR., : : Plaintiff, : : 1:19-cv-719-GHW -against- : : MEMORANDUM OPINION DOCTOR’S ASSOCIATES LLC, GEETA : AND ORDER FASTFOOD ENTERPRISE INC, and : ABHIMANUE MANCHANDA, : : Defendants. : ------------------------------------------------------------------X

GREGORY H. WOODS, United States District Judge: Plaintiff Phillip Sullivan, Jr. is deaf. He alleges that he was treated poorly by a restaurant employee and was ultimately unable to order a sandwich. Plaintiff argues that the rude treatment he received amounted to actionable discrimination in violation of Title III of the Americans with Disabilities Act (“ADA”) and analogous state and city law provisions. Plaintiff argues that these anti-discrimination statutes require each and every Subway restaurant to install technology that would allow hearing-impaired individuals to place orders though a touch-screen interface, which would obviate the need for customers to interact with restaurant employees to place an order. Defendant Doctor’s Associates LLC (“DAL”), the franchisor of Subway restaurants, has moved to dismiss Plaintiffs’ claims against it. Because the ADA and the analogous state and city law provisions upon which Plaintiff relies require only that an establishment ensure that its employees can communicate effectively with disabled patrons—and, so long as they meet this requirement, do not require establishments to adopt specific technology, no matter how allegedly cost-effective or convenient—and because Plaintiff has failed to allege that DAL operates the Subway restaurant at which Plaintiff allegedly experienced discrimination, DAL’s motion to dismiss is GRANTED. I. BACKGROUND1 Plaintiff, “a profoundly deaf individual,” SAC ¶ 23, alleges that an employee at a Subway restaurant (the “Restaurant”) “became hostile and angry, using hostile hand gestures and aggressive body language” when plaintiff attempted to order a steak sandwich. Id. ¶ 26. Plaintiff asserts that DAL, as the franchisor of Subway restaurants, “has actual control and responsibility over all Subway restaurants’ compliance, adherence to laws, franchise training, and the way franchise owners conduct their business[.]” Id. ¶ 15. Thus, based on his experience at Subway, Plaintiff alleges DAL violated the ADA and analogous New York state and New York City law provisions by not providing technology to improve accessibility for hearing impaired individuals in Subway restaurants. Id.

¶¶ 76-132. Plaintiff commenced this action on January 24, 2019, Dkt No. 1, and filed the FAC on May 31, 2019. Dkt. No. 42. DAL then filed a motion to dismiss on June 28, 2019 seeking dismissal of all claims asserted in the FAC against DAL. Dkt. Nos. 46-47. A. The Court’s Opinion in The Court granted DAL’s motion to dismiss. Sullivan I, 2020 WL 353752, at *8. The Court initially noted that, to survive the motion to dismiss, Plaintiff was required to “plausibly allege that DAL owns, leases, or operates the Restaurant.” Id. at *5 (citing Camarillo v. Carrols Corp., 518 F.3d 153, 156 (2d Cir. 2008) (“To state a claim under Title III, [a plaintiff] must allege (1) that she is disabled within the meaning of the ADA; (2) that defendants own, lease, or operate a place of public accommodation; and (3) that defendants discriminated against her by denying her a full and equal opportunity to enjoy the services defendants provide.”) (citations omitted)); see also 42 U.S.C. §

1 The Court has published an opinion in this case that provides further background. See Sullivan v. Doctor’s Assocs. LLC (“Sullivan I”), 1:19-CV-719-GHW, 2020 WL 353752 (S.D.N.Y. Jan. 17, 2020). Sullivan I provides a thorough exposition of the relevant facts as alleged in Plaintiff’s First Amended Complaint (“FAC”), Dkt No. 42. Most of the relevant facts are unchanged between the FAC and the operative complaint on this motion to dismiss, Plaintiff’s Second Amended Complaint (“SAC”), Dkt No. 58. Thus, although the Court’s discussion in this section focuses principally on the new facts alleged in the SAC, the Court has considered all of the factual allegations in the SAC. The facts alleged in the SAC are accepted as true for the purposes of this motion to dismiss. See, e.g., Chambers v. Time Warner, Inc., 282 F.3d 147, 152 (2d Cir. 2002). However, “[t]he tenet that a court must accept as true all of the allegations contained in a complaint is inapplicable to legal conclusions.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). 12182(a). Because Plaintiff inadequately pleaded that DAL was the lessor of the Restaurant and did not allege that DAL owned the Restaurant, the principal issue was whether DAL “operated” the Restaurant within the meaning of Title III. Sullivan I, 2020 WL 353752, at *5-6. In its analysis, the Court adopted the definition of “operate” stated in Neff v. Am. Dairy Queen Corp., 58 F.3d 1063, 1066 (5th Cir. 1995). Sullivan I, 2020 WL 353752, at *6. Neff held that “supervisory authority, without more, is insufficient to support a holding that a franchisor ‘operates,’ in the ordinary and natural meaning of that term, a franchisee.” Id. (quoting Neff, 58 F.3d at 1068- 69) (brackets omitted). Thus, the issue was “whether Plaintiff ha[d] adequately alleged that DAL specifically controls the Restaurant’s accessibility to the disabled.” Id.

The Court held that Plaintiff’s allegations failed to meet this standard. Id. at *7. Plaintiff’s argument that “DAL operates all Subway restaurants through its Operations Manual and mandatory training program” failed because “general allegations that a franchisor provides a manual and a training program for employees are not sufficient to establish” specific control over a restaurant’s accessibility to the disabled. Id. at *6 (quotation marks and citation omitted). The Court found Plaintiff’s argument that “DAL has absolute authority to enforce and modify the Restaurant’s policy practice and procedure, including ADA policy and employee training protocol” under the franchise agreement unpersuasive. Id. (quotation marks omitted). Plaintiff again failed to plausibly allege that DAL specifically controlled the Restaurant’s accessibility to the disabled because the franchise agreement conferred only general supervisory authority to DAL over the Restaurant. Id. The Court also rejected Plaintiff’s argument that DAL’s control over the “customer ordering process” demonstrated DAL’s specific control over the Restaurant. Id. at *7. Plaintiff’s allegations that DAL “controls operations, including the type of equipment, point-of-sale system, trademarks,

decoration, [and the] look and feel of each franchise” again only highlighted DAL’s general supervisory authority over the Restaurant. Id. (quotation marks omitted). Similarly, the Court concluded that a provision in DAL’s franchise agreement, which was attached as an exhibit to the FAC, “specifying that employees must use a ‘computer based point-of- sale (“POS System”), including software that DAL specifies and hardware compatible with DAL’s requirements” was insufficient to allege that DAL specifically controlled the Restaurant’s accessibility to the disabled. Id. (citation omitted). That was because this provision was “directed toward controlling back-end communications between DAL and franchisees[,]” while “Plaintiff’s allegations pertain[ed] to communications between restaurant employees and customers[.]” Id.

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