SUPER 8 WORLDWIDE, INC. v. MI PTS8 LLC

CourtDistrict Court, D. New Jersey
DecidedJuly 14, 2025
Docket2:21-cv-09579
StatusUnknown

This text of SUPER 8 WORLDWIDE, INC. v. MI PTS8 LLC (SUPER 8 WORLDWIDE, INC. v. MI PTS8 LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SUPER 8 WORLDWIDE, INC. v. MI PTS8 LLC, (D.N.J. 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

SUPER 8 WORLDWIDE, INC., a South

Dakota Corporation, Civil Action No. 21-cv-9579 (JXN)(JRA)

Plaintiff,

OPINION v.

MI PTS8 LLC, an Arizona Limited Liability Company; VENKAT IYER, an individual; and ROBERT A. MCCUNE, an individual,

Defendants.

NEALS, District Judge: Before this Court is Plaintiff Super 8 Worldwide, Inc.’s (“Plaintiff”) unopposed motion for default judgment against Defendant MI PTS8 LLC (“MI PTS8”), pursuant to Federal Rule of Civil Procedure 55(b) (ECF No. 76), and unopposed motion for summary judgment against Defendant Venkat Iyer (“Iyer”), pursuant to Federal Rule of Civil Procedure 56 (ECF No. 77). Jurisdiction and venue are proper pursuant to 28 U.S.C. §§ 1332 and 1391(b), respectively. The Court has carefully considered Plaintiff’s submissions and decides this matter without oral argument pursuant to Federal Rule of Civil Procedure 78(b) and Local Civil Rule 78.1(b). For the reasons stated below, Plaintiff’s motion for default (ECF No. 76) is GRANTED against MI PTS8; and Plaintiff’s motion for summary judgment (ECF No. 77) is GRANTED against Iyer as to Count Six only. Plaintiff is entitled to $63,064.84 in liquidated damages, and $56,322.10 in interest on the liquidated damages award. The Court RESERVES decision on attorneys’ fees and costs pending the Court’s review and receipt of supplemental submissions as instructed herein. I. BACKGROUND A. Factual Background This case arises out of Plaintiff’s attempts to collect outstanding debts and damages from MI PTS8 and Iyer’s default of the parties’ franchise agreement. Plaintiff is a South Dakota

corporation with its principal place of business in New Jersey, which provides customers access to a “guest lodging facility” franchise network. (Plaintiff’s Statement of Undisputed Material Facts (ECF No. 78) (“PSOF”)1 ¶¶ 1-2). Plaintiff’s franchise system is “comprised of federally registered trade names, service marks, logos, and derivations thereof (the “Super 8® Marks”), as well as the distinctive Super 8® System.” (Id. at ¶ 3). Plaintiff neither owns nor operates any hotels. (Id.) Iyer and Robert A. McCune (“McCune”) are the only members of MI PTS8. (Id. at ¶ 4; ECF No. 31 (“Amended Complaint” or “Am. Compl.”) ¶ 5). On or about June 1, 2019, Plaintiff and MI PTS8 entered into a Franchise Agreement whereby MI PTS8 would operate a 42-room Super 8® guest lodging facility located at 1202 East White Mountain Boulevard, Pinetop, Arizona 85028, designated as Site No. 08416-15325-03 (the

“Facility”). (Id. at ¶ 5). That same day, Plaintiff and MI PTS8 also entered into a SynXis Subscription Agreement (the “SynXis Agreement”), which governed MI PTS8’s access to and use of certain computer programs, applications, features, and services, as well as any and all modifications, corrections, updates, and enhances to same. (Id. at ¶ 7). Iyer executed the Franchise Agreement and SynXis Agreement on behalf of MI PTS8. (Id. at ¶¶ 6, 8). Pursuant to the Franchise Agreement, MI PTS8 was obligated to operate the Facility for a period of twenty (20) years. (Id. at ¶ 9). The Franchise Agreement and SynXis Agreement required that MI PTS8 make certain payments to Plaintiff for royalties, system assessment fees, taxes, interest, SynXis fees, and other

1 For brevity, all citations to Plaintiff’s Rule 56.1 statement incorporates the evidentiary citations contained therein. fees (collectively, “Recurring Fees”), as well as interest on fees or debts that were past due. (PSOF ¶ 10; Affidavit of Kendra Mallet in support of Plaintiff’s Motion for Summary Judgment (“Mallet MSJ Aff.”), Ex. A, ECF No. 77-6 at 20-21, 44-46).2 Moreover, the Franchise Agreement provided Plaintiff the opportunity to terminate the agreement before the end of the twenty-year term in two

circumstances: (1) if MI PTS8 discontinued operating the Facility as a Super 8® hotel; and/or (2) if MI PTS8 lost possession or the right to possess the Facility. (PSOF ¶ 17). In the event that the Franchise Agreement was terminated under one of these two circumstances, Section 12.1 of the Franchise Agreement provides that MI PTS8 would pay Plaintiff liquidated damages. (Id. at ¶ 18). Moreover, early termination made MI PTS8 responsible for reimbursing Plaintiff for any outstanding recurring fees and costs. (Id. at ¶ 31). Finally, as part of the Franchise Agreement, Iyer and McCune signed a Guaranty, which upon a default of the Franchise Agreement, made them liable for money MI PTS8 owed to Plaintiff. (PSOF ¶ 25; Affidavit of Kendra Mallet in support of Plaintiff’s Motion for Default Judgment (“Mallet MDJ Aff.”) ECF No. 76-6 at ¶ 13). In a June 29, 2020 letter, Plaintiff acknowledged that MI PTS8 defaulted on the Franchise

Agreement by losing possession of the Facility, and informed MI PTS8 that, due to the default, it was terminating the agreement early. (PSOF ¶¶ 30-31). The letter further notified MI PTS8 that it was required to pay Plaintiff liquidated damages and all outstanding recurring fees and costs, pursuant to the terms of the Franchise Agreement. (Id. at ¶ 31). B. Procedural History On April 16, 2021, Plaintiff filed a six-count Complaint against MI PTS8, Iyer, and McCune. (ECF No. 1). On July 20, 2021, MI PTS8, Iyer, and McCune filed an Answer to the

2 For sake of clarity, when citing Plaintiff’s briefs and supporting documents, the Court cites to the page number listed in the ECF header. If there is no page number listed in the ECF header, the Court cites to the page number listed in the respective document. Complaint. (ECF No. 13). On May 23, 2022, after leave to file an amended complaint was granted (ECF No. 30), Plaintiff filed an Amended Complaint, which corrected the spelling of McCune’s last name. (ECF No. 31). The Amended Complaint seeks an Order directing: (i) MI PTS8 to account for all revenue derived from the Facility (First Count); (ii) MI PTS8 to pay $84,000.00 in

liquidated damages (Second Count); (iii) MI PTS8 to pay actual damages if liquidated damages are not awarded (Third Count); (iv) MI PTS8 to pay $50,282.32 in Recurring Fees (Fourth Count); (v) MI PTS8 to pay damages for unjust enrichment if Recurring Fees are not awarded (Fifth Count); and (vi) Iyer and McCune to pay liquidated damages or actual damages and Recurring Fees for MI PTS8’s breach, which Iyer and McCune are allegedly liable for under the Guaranty Agreement (Sixth Count). (Am. Compl. ¶¶ 25-51). On October 10, 2022, MI PTS8, Iyer, and McCune filed an Answer to the Amended Complaint. (ECF No. 36). Thereafter, on December 20, 2022, this matter was administratively terminated pending the consummation of the parties’ settlement. (ECF No. 41). The Court subsequently entered an Order dismissing the action with prejudice on February 22, 2023. (ECF No. 42). On August 30,

2023, the Court subsequently vacated the Notice of Dismissal and reinstated Plaintiff’s Amended Complaint and MI PTS8, Iyer, and McCune’s Answer to the active trial list. (ECF No. 49). On November 3, 2023, Plaintiff and McCune entered into a confidential settlement agreement, which satisfied the outstanding Recurring Fees and part of the liquidated damaged owed by Defendants. (PSOF ¶ 35). On November 16, 2023, McCune was dismissed, without prejudice, as a result of the settlement agreement. (ECF No. 54).

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