Vaghar v. BeGreat Sports, LLC

CourtDistrict Court, S.D. New York
DecidedJanuary 22, 2025
Docket1:23-cv-03487
StatusUnknown

This text of Vaghar v. BeGreat Sports, LLC (Vaghar v. BeGreat Sports, LLC) 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
Vaghar v. BeGreat Sports, LLC, (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK VINCENT VAGHAR, Plaintiff, No. 1:23-cv-03487 (JLR) (HJR) -against- OPINION AND ORDER BEGREAT SPORTS, LLC and BARRY GARDNER, Defendants. JENNIFER L. ROCHON, United States District Judge: Plaintiff Vincent Vaghar (“Vaghar” or “Plaintiff”) brings this diversity action against Defendants BeGreat Sports, LLC (“BeGreat”), and Barry Gardner (“Gardner,” together with BeGreat, “Defendants”), asserting claims for breach of a promissory note, unjust enrichment, conversion, and fraudulent misrepresentation in connection with an alleged loan transaction. See generally Dkt. 14 (“Compl.”). Defendants assert two counterclaims against Plaintiff for abuse of process and tortious interference with business relations. See generally Dkt. 73 (“Second Amended Answer” or “SAA”). Plaintiff now moves to dismiss Defendants’ counterclaims pursuant to Federal Rule of Civil Procedure (“Rule”) 12(b)(6) for failure to state a claim upon which relief can be granted. See Dkt. 78 (“Br.”). For the reasons stated below, the Court GRANTS Plaintiff’s motion and dismisses Defendants’ two counterclaims. BACKGROUND For purposes of resolving this motion, the Court accepts the factual allegations in Defendants’ counterclaims as true and draws all reasonable inferences in Defendants’ favor. See, e.g., CDC Newburgh Inc. v. STM Bags, LLC, 692 F. Supp. 3d 205, 217 (S.D.N.Y. 2023); Kingvision Pay-Per-View, Ltd. v. Falu, No. 06-cv-04457 (JGK), 2008 WL 318352, at *1 (S.D.N.Y. Feb. 4, 2008). The Court also considers materials incorporated by reference in the counterclaims “and documents that, although not incorporated by reference, are integral to the [pleading].” Temple v. Hudson View Owners Corp., 222 F. Supp. 3d 318, 322 (S.D.N.Y. 2016) (quoting L-7 Designs, Inc. v. Old Navy, LLC, 647 F.3d 419, 422 (2d Cir. 2011)). I. Factual Background Gardner is the “sole owner and manager” of BeGreat and has made “substantial capital investments” in the company. SAA ¶ 1. Vaghar is a “longtime investor” in BeGreat, id. ¶ 2, and “has made various capital investments in BeGreat over the course of several years,” id.

¶ 3. In 2019, Vaghar learned that BeGreat was “having discussions with additional potential investors who were planning on infusing a substantial amount of capital into BeGreat.” Id. ¶ 5. At Vaghar’s insistence, the parties agreed that on receipt of the anticipated infusion of capital, Vaghar’s investment in BeGreat would be repaid prior to Gardner’s investment. See id. ¶¶ 6-7. In November 2019, the parties engaged in negotiations to “execute a promissory note in favor of Plaintiff to effectuate [their] agreement” regarding the repayment of their investments. Id. ¶¶ 8-9; see also Dkt. 73-1. “Defendants were not represented by counsel during any of these negotiation communications.” SAA ¶ 10.

On November 12, 2019, Gardner emailed an executed promissory note to Vaghar that “listed [BeGreat] as the only debtor,” id. ¶ 12; see Dkt. 73-1; Dkt. 73-2. Later that day, Vaghar emailed Gardner “a redlined version of the same promissory note that was modified to reflect both BeGreat and [Gardner] (in his personal capacity) as co-debtors under the note,” among other changes. SAA ¶ 13; see Dkt. 73-3. Subsequently, Gardner, on behalf of BeGreat, “execute[d] the modified version of the promissory note . . . with the express intention that [he] would not be personally bound by the terms of the note,” SAA ¶ 14, and returned it to Vaghar by email, id. ¶ 15; see Dkt. 73-4. “[T]o ensure that the note was not enforceable against [him] personally,” Gardner signed only the signature line for BeGreat, leaving blank the signature line for Gardner in his individual capacity. SAA ¶ 15. Based on Vaghar’s representations, BeGreat’s understanding when executing the revised promissory note was that it served only “to ensure that Plaintiff’s investment in BeGreat was repaid before [Gardner]’s investment in BeGreat was repaid,” id. ¶ 19, and “that it would only be enforceable if BeGreat finalized the deal to bring on the new investors and

received their capital infusion,” id. ¶ 20; see also id. ¶ 21 (“Consistent with this further understanding, the parties chose a maturity date of March 20, 2020 specifically to coincide with BeGreat’s anticipated receipt of the capital infusion from the new investors.”). However, “[t]he deal with new potential investors was never finalized, and BeGreat never received the expected capital infusion.” Id. ¶ 22. Several years later, in or around November 2022, “a series of attorneys/debt collectors began contacting Defendants to secure repayment of the promissory note.” Id. ¶ 24. Then, in April 2023, Gardner received a letter from Vaghar’s counsel informing him that Vaghar would “immediately proceed with filing [his] lawsuit” if he did not receive a “written commitment” to “repay the loan amount and associated fees by a date certain,” or “something

substantially similar.” Dkt. 73-5; see SAA ¶ 25. In the letter, Vaghar’s counsel threatened to “provide a copy” of the lawsuit to the NFL Players Association (the “NFLPA”), SAA ¶ 25 — “the union for [Defendants’] professional athlete clients,” id. ¶ 45 — and to “issue a press release announcing the filing of the lawsuit and circulate the same to all major media outlets,” Dkt. 73-5. On April 26, 2023, Vaghar proceeded to file the instant suit, see Dkt. 1, and the next day, a “self-described sports reporter” posted about the filing, which was “reposted by others,” SAA ¶ 26; see Dkt. 73-6; Dkt. 73-7. Subsequently, “BeGreat lost several of its clients, including its biggest client, within one month of the filing of this lawsuit,” SAA ¶ 27, and “had its reputation tarnished with the NFLPA,” id. ¶ 47; see also id. ¶ 28 (“The biggest client that BeGreat lost as a direct result of Plaintiff’s actions signed a new player contract mere months after terminating its relationship with BeGreat that would have been very lucrative to BeGreat.” (footnote omitted)). Defendants allege that “the version of the promissory note attached to the Complaint

which includes [Gardner]’s signature in his personal capacity is a forged, falsified and/or altered document,” id. ¶ 18, because Gardner “never affixed his electronic signature — or authorized his electronic signature to be affixed — to any version of any promissory note in favor of Plaintiff,” id. ¶ 17. Accordingly, Defendants argue that Vaghar initiated the Complaint based on a fraudulent promissory note, see Dkt. 14-1, with the “intent to harm” Gardner and his business, SAA ¶ 40, and “to pressure [them] into making payments,” id. ¶ 42. II. Procedural History On April 26, 2023, Plaintiff filed his Complaint, seeking damages in connection with Defendants’ alleged refusal to fulfill the terms of the promissory note attached to the Complaint. See Dkt. 1. On January 11, 2024, Defendants filed their answer, see Dkt. 48,

which they amended on April 30, 2024, to assert two counterclaims against Plaintiff for abuse of process and tortious interference with business relations, see Dkt. 71. Plaintiff moved to dismiss the counterclaims on May 21, 2024, see Dkt. 72, after which Defendants filed their Second Amended Answer on June 6, 2024, see SAA, mooting Plaintiff’s motion, see Dkt. 74. The Second Amended Answer asserted the same two counterclaims, but with the addition of several supporting exhibits. See generally SAA. On June 21, 2024, Plaintiff filed the instant motion to dismiss Defendants’ amended counterclaims pursuant to Rule 12(b)(6) for failure to state a claim for relief. See generally Br.

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Vaghar v. BeGreat Sports, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vaghar-v-begreat-sports-llc-nysd-2025.