Stop Franchising Spe LLC v. Michael Mendoza, Inc.
Plaintiff: STOP FRANCHISING SPE LLC
Defendant: MICHAEL MENDOZA, INC. and Michael Mendoza
Case Number: 2:2022cv01471
Filed: September 8, 2022
Court: US District Court for the District of Nevada
Presiding Judge: Gloria M Navarro
Referring Judge: Brenda Weksler
Nature of Suit: Contract: Franchise
Cause of Action: 28 U.S.C. § 1332 Diversity-Breach of Contract
Jury Demanded By: Both
Docket Report

This docket was last retrieved on April 24, 2023. A more recent docket listing may be available from PACER.

Date Filed Document Text
October 24, 2022 Opinion or Order Filing 31 ANSWER to #23 Amended Complaint (, Discovery Plan/Scheduling Order due by 12/8/2022.), COUNTERCLAIM against Stop Franchising Spe LLC by Michael Mendoza, Michael Mendoza, Inc.. filed by Michael Mendoza, Michael Mendoza, Inc..(Blum, Jonathan) NOTICE of Certificate of Interested Parties requirement: Under Local Rule 7.1-1, a party must immediately file its disclosure statement with its first appearance, pleading, petition, motion, response, or other request addressed to the court.
October 24, 2022 Opinion or Order Filing 30 MINUTE ORDER IN CHAMBERS of the Honorable Judge Gloria M. Navarro on 10/24/2022. Before the Court is Plaintiff Stop Franchising Spe., LLC's ("Plaintiff's") #24 Response and Defendant Michael Mendoza, Inc.'s ("Defendant's") #29 Response to the Court's 19 Order to Show Cause ("OSC"), which state that this case satisfies the jurisdictional requirements set forth in 28 U.S.C. 1332. (See Pl.'s Resp. Ct.'s OSC 3:10-5:22, ECF No. #24 ); (Def.'s Resp. Ct.'s OSC 2:2-15, ECF No. #29 ). Specifically, Plaintiff explains that the amount in controversy exceeds $75,000.00 because Plaintiff suffered damages in excess of $400,000.00 as a result of Defendant's breach of contract. (See Pl.'s Resp. Ct.'s OSC 3:20-4:2). Defendant does not dispute that the amount in controversy exceeds the jurisdictional requirement. (Def.'s Resp. Ct.'s OSC 2:2-15). In addition, since entering the 19 OSC, Plaintiff has amended its Complaint to include claims arising under federal law. (See First Am. Compl. paras. 5, 14, 91-105, ECF No. #23 ). Thus, after reviewing the #24 and #29 Responses, the Court HEREBY finds that the 19 OSC is SATISFIED, and that the Court has subject matter jurisdiction over this case.(Copies have been distributed pursuant to the NEF - EH)
October 17, 2022 Opinion or Order Filing 29 RESPONSE to 19 Order to Show Cause,,,,,, #24 Response to Order to Show Cause by Defendant Michael Mendoza, Inc.. (Blum, Jonathan)
October 13, 2022 Opinion or Order Filing 28 WAIVER OF SERVICE Returned Executed by Stop Franchising Spe LLC re #27 Summons Issued. Michael Mendoza waiver sent on 10/12/2022, answer due 12/11/2022. (Kay, Rory)
October 11, 2022 Opinion or Order Filing 27 SUMMONS ISSUED as to Michael Mendoza re #23 Amended Complaint. (TRW)
October 10, 2022 Opinion or Order Filing 26 PROPOSED SUMMONS to be issued (Michael Mendoza) by Plaintiff Stop Franchising Spe LLC. (Kay, Rory)
October 10, 2022 Opinion or Order Filing 25 DECLARATION of Mark Dawson re #24 Response to Order to Show Cause by Plaintiff Stop Franchising Spe LLC.. (Kay, Rory)
October 10, 2022 Opinion or Order Filing 24 RESPONSE to 19 Order to Show Cause by Plaintiff Stop Franchising Spe LLC.. (Kay, Rory)
October 10, 2022 Opinion or Order Filing 23 First AMENDED COMPLAINT with Jury Demand against All Defendants by Stop Franchising Spe LLC. Adds new parties. (Kay, Rory)
October 5, 2022 Opinion or Order Filing 22 ORDER Granting #21 Stipulation for Extension of Time. Michael Mendoza, Inc. answer due 10/12/2022. Signed by Magistrate Judge Brenda Weksler on 10/5/2022. (Copies have been distributed pursuant to the NEF - JQC)
October 4, 2022 Opinion or Order Filing 21 STIPULATION FOR EXTENSION OF TIME (First Request) for Defendant to File its Response to Plaintiff's Complaint by Defendant Michael Mendoza, Inc.. (Blum, Jonathan) (extend) (answer)
October 3, 2022 Opinion or Order Filing 20 REPLY to Response to #10 Motion for TRO, by Plaintiff Stop Franchising Spe LLC. (Kay, Rory)
October 3, 2022 Opinion or Order Filing 19 ORDER TO SHOW CAUSE. Pending before the Court is Plaintiff Stop Franchising Spe, LLC's ("Plaintiff's") #10 Emergency Motion for Temporary Restraining Order. After reviewing Plaintiff's #10 Motion and #1 Complaint, the Court is unconvinced that it has jurisdiction over this matter. Plaintiff must provide specific, factual allegations showing how the case in controversy exceeds $75,000. See Matheson v. Progressive Specialty Ins. Co., 319 F.3d 1089, 1090 (9th Cir. 2003) ("Where it is not facially evident from the complaint that more than $75,000 is in controversy, the [complaining] party must prove, by a preponderance of the evidence, that the amount in controversy meets the jurisdictional threshold.... Conclusory allegations as to the amount in controversy are insufficient."). Accordingly, IT IS HEREBY ORDERED that Plaintiff show cause as to why the Court should not dismiss this action for failure to satisfy the jurisdictional requirements set forth in 28 U.S.C. 1332. Plaintiff shall have until October 10, 2022, to file a brief, not to exceed ten pages, addressing the Court's concern regarding the jurisdictional requirements under 1332. Thereafter, Defendant Michael Mendoza, Inc. shall have until October 17, 2022, to file a responsive brief, not to exceed ten pages. Failure to comply with this Order may result in this case being dismissed without prejudice. (Copies have been distributed pursuant to the NEF - EH)
September 26, 2022 Opinion or Order Filing 18 CERTIFICATE of Interested Parties by Michael Mendoza, Inc.. There are no known interested parties other than those participating in the case (Blum, Jonathan)
September 26, 2022 Opinion or Order Filing 17 MOTION for Leave to File Excess Pages re #10 Motion for TRO, by Defendant Michael Mendoza, Inc.. Responses due by 10/10/2022. (Attachments: #1 Exhibit 1 - [Proposed] Opposition to Plaintiff's Renewed Emergency Motion for Temporary Restraining Order and Preliminary Injunction, #2 Exhibit A - Declaration of Michael Mendoza in Support of Michael Mendoza, Inc.'s Opposition, #3 Exhibit A-1 - STOP Map, #4 Exhibit A-2 - Correspondence to Mike Dawson, #5 Exhibit A-3 - Website Screenshot, #6 Exhibit A-4 - Multiple Website Screenshot, #7 Exhibit A-5 - STOP Franchise Disclosure Document)(Blum, Jonathan) (answer)
September 26, 2022 Opinion or Order Filing 16 ORDER Granting #14 Verified Petition for Permission to Practice Pro Hac Vice Robert A. Schultz and approving Designation of Local Counsel Tara U Teegarden. Signed by Judge Gloria M. Navarro on 9/26/2022. Any Attorney not yet registered with the Court's e-filng system shall register on the PACER website #www.pacer.gov(Copies have been distributed pursuant to the NEF - JQC) (Main Document 16 replaced on 10/11/2022) (JQC).
September 26, 2022 Opinion or Order Filing 15 ORDER Granting #13 Verified Petition for Permission to Practice Pro Hac Vice Kevin A. Adams and approving Designation of Local Counsel Tara U Teegarden. Signed by Judge Gloria M. Navarro on 9/26/2022. Any Attorney not yet registered with the Court's e-filng system shall register on the PACER website #www.pacer.gov(Copies have been distributed pursuant to the NEF - JQC) ). (Main Document 15 replaced on 9/26/2022) (JQC). (Main Document 15 replaced on 9/26/2022) (JQC).
September 23, 2022 Opinion or Order Filing 14 MOTION/VERIFIED PETITION for Permission to Practice Pro Hac Vice by Robert A. Schultz and DESIGNATION of Local Counsel Tara U. Teegarden (Filing fee $ 250 receipt number ANVDC-7059764) by Plaintiff Stop Franchising Spe LLC. (Teegarden, Tara)
September 23, 2022 Opinion or Order Filing 13 MOTION/VERIFIED PETITION for Permission to Practice Pro Hac Vice by Kevin A. Adams and DESIGNATION of Local Counsel Tara U. Teegarden (Filing fee $ 250 receipt number ANVDC-7059759) by Plaintiff Stop Franchising Spe LLC. (Teegarden, Tara)
September 16, 2022 Opinion or Order Filing 12 SUMMONS Returned Executed by Stop Franchising Spe LLC re #7 Summons Issued, #10 Motion for TRO, #1 Complaint, #5 Motion for TRO,, 8 Order on Motion for TRO,,,,,,,,,,, Minute Order,,,,,,,,,, #9 Errata. Michael Mendoza, Inc. served on 9/14/2022. (Teegarden, Tara)
September 14, 2022 Opinion or Order Filing 11 MINUTE ORDER IN CHAMBERS of the Honorable Judge Gloria M. Navarro on 9/14/2022. Pending before the Court is Plaintiff STOP Franchising SPE, LLC's ("Plaintiff's") #5 Emergency Temporary Restraining Order ("TRO"). Under LR IC 6-1, parties are prohibited from including, or must partially redact, where inclusion is necessary sensitive information from all documents filed with the Court, including exhibits, such as social security numbers. Failure to comply with LR IC 6-1 may lead to the Court striking the non-complying document. LR IC 7-1. Here, Plaintiff filed an exhibit containing a social security number. (See generally "2016 Franchise Agreement," Ex. 1 to Ex. 2 to Emergency TRO, ECF No. #5 -5). Accordingly, IT IS HEREBY ORDERED that the Clerk is instructed to STRIKE Exhibit 1 to Exhibit 2, titled "2016 Franchise Agreement," (ECF No. #5 -5), from the docket for failing to comply with LR IC 6-1.(Copies have been distributed pursuant to the NEF - EH)
September 13, 2022 Opinion or Order Filing 10 Emergency MOTION for Temporary Restraining Order by Plaintiff Stop Franchising Spe LLC. Responses due by 9/27/2022. (Attachments: #1 Exhibit 1, #2 Exhibit 1 to Exhibit 1, #3 Exhibit 2 to Exhibit 1, #4 Exhibit 2, #5 Exhibit 1 to Exhibit 2, #6 Exhibit 2 to Exhibit 2, #7 Exhibit 3 to Exhibit 2, #8 Exhibit 4 to Exhibit 2, #9 Exhibit 3)(Kay, Rory)
September 13, 2022 Opinion or Order Filing 9 ERRATA to #5 Motion for TRO, by Plaintiff Stop Franchising Spe LLC. (Attachments: #1 Exhibit A)(Kay, Rory)
September 13, 2022 Opinion or Order Filing 8 MINUTE ORDER IN CHAMBERS of the Honorable Judge Gloria M. Navarro on 9/13/2022. Pending before the Court is Plaintiff STOP Franchising SPE, LLC's ("Plaintiff's") #5 Emergency Temporary Restraining Order ("TRO"). After reviewing the #1 Complaint and #5 TRO, the Court is unconvinced that Plaintiff has satisfied the four elements under Winter v. Natural Res. Def. Council, Inc., 555 U.S. 7, 24 (2008). In the #5 TRO, Plaintiff alleges that Defendant Michael Mendoza, Inc. ("Defendant") breached its Franchise Agreement, signed in 2016. (See Emergency TRO 7:25-13:7, ECF No. #5 ). To prevail in a breach of contract case in Nevada, Plaintiff must demonstrate: "(1) the existence of a valid contract; (2) that the plaintiff performed or was excused from performance; (3) that the defendant breached the terms of the contract; and (4) that the plaintiff was damaged as a result of the breach." Patel v. Am. Nat'l Prop. & Cas. Co., 367 F. Supp. 3d 1186, 1191 (D. Nev. 2019).As a preliminary matter, the agreement Plaintiff provides does not include a signature date. (See "2016 Franchise Agreement" at 2-6, Ex. 1 to Ex. 2 to Emergency TRO, ECF No. #5 -5). Thus, the veracity of this agreement being the "2016 Franchise Agreement" is questionable. More importantly, however, Plaintiff fails to provide evidence of the terms of the 2016 Franchise Agreement. Although Plaintiff provides part of an agreement, it does not include the pertinent terms of the contract. Specifically, the agreement Plaintiff provides begins with "Section 15: Attorney's Fees" and concludes with "Section 26: Governing Law." (See id., Ex. 1 to Ex. 2 to Emergency TRO). It does not, however, include the terms of the contract that Plaintiff alleges Defendant has breached, namely: Sections 3 and 8. As such, Plaintiff does not show that it performed or was excused from performance or that Defendant breached the terms of the agreement. See Patel, 367 F. Supp. 3d at 1191. Therefore, Plaintiff does not satisfy the Winter factors to justify granting the #5 TRO. See Garcia v. Google, Inc., 786 F.3d 733, 740 (9th Cir. 2015) ("Because it is a threshold inquiry, when 'a plaintiff has failed to show the likelihood of success on the merits, we "need not consider the remaining three [Winter elements]."'"). Accordingly, IT IS HEREBY ORDERED that Plaintiff's #5 TRO is DENIED. (Copies have been distributed pursuant to the NEF - EH)
September 13, 2022 Opinion or Order Filing 7 SUMMONS ISSUED as to Michael Mendoza, Inc.. (JQC)
September 13, 2022 Opinion or Order Filing 6 PROPOSED SUMMONS to be issued by Plaintiff Stop Franchising Spe LLC. (Teegarden, Tara)
September 12, 2022 Opinion or Order Filing 5 Emergency MOTION for Temporary Restraining Order by Plaintiff Stop Franchising Spe LLC. Responses due by 9/26/2022. (Attachments: #1 Exhibit 1, #2 Exhibit 1 to Exhibit 1, #3 Exhibit 2 to Exhibit 1, #4 Exhibit 2, Stricken per 11 Minute Order (JQC) #5 Exhibit 1 to Exhibit 2, #6 Exhibit 2 to Exhibit 2, #7 Exhibit 3 to Exhibit 2, #8 Exhibit 4 to Exhibit 2, #9 Exhibit 3)(Kay, Rory) Modified on 9/15/2022 - Exhibit stricken (JQC). Modified on 9/15/2022 (JQC).
September 9, 2022 Opinion or Order Filing 4 NOTICE TO COUNSEL PURSUANT TO LOCAL RULE IA 11-2. Counsel Kevin A. Adams and Robert A. Schultz to comply with completion and filing of the Verified Petition and Designation of Local Counsel. For your convenience, click on the following link to obtain the form from the Court's website - #www.nvd.uscourts.gov. Upon approval of the Verified Petition, counsel is required to register for the Court's Case Management and Electronic Case Filing (CM/ECF) system and the electronic service of documents. Please visit the PACER website www.pacer.gov to register Attorney. Verified Petition due by 9/23/2022. (no image attached) (TRW)
September 9, 2022 Opinion or Order Filing 3 STANDING ORDER. This case has been assigned to the Honorable Judge Gloria M. Navarro. Judge Navarro's Chambers Practices, which are posted on the U.S. District Court, District of Nevada public website, may also be accessed directly via this hyperlink #www.nvd.uscourts.gov. (Copies have been distributed pursuant to the NEF - TRW)
September 8, 2022 Opinion or Order Case randomly assigned to Judge Gloria M. Navarro and Magistrate Judge Brenda Weksler. (TRW)
September 8, 2022 Opinion or Order Filing 2 CERTIFICATE of Interested Parties by STOP FRANCHISING SPE LLC that identifies all parties that have an interest in the outcome of this case. Corporate Parent Authority Brands, Inc., Other Affiliate AB Assetco LLC for STOP FRANCHISING SPE LLC added.. (Teegarden, Tara)
September 8, 2022 Opinion or Order Filing 1 COMPLAINT against MICHAEL MENDOZA, INC. (Filing fee $402 receipt number ANVDC-7042109) by STOP FRANCHISING SPE LLC. Proof of service due by 12/7/2022. (Attachments: #1 Civil Cover Sheet Civil Cover Sheet) (Teegarden, Tara) NOTICE of Certificate of Interested Parties requirement: Under Local Rule 7.1-1, a party must immediately file its disclosure statement with its first appearance, pleading, petition, motion, response, or other request addressed to the court.

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Plaintiff: STOP FRANCHISING SPE LLC
Represented By: Tara U Teegarden
Represented By: Kiley Harrison
Represented By: Rory T Kay
Represented By: Kevin A. Adams
Represented By: Robert A. Schultz
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Defendant: MICHAEL MENDOZA, INC.
Represented By: Jonathan D. Blum
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Defendant: Michael Mendoza
Represented By: Jonathan D. Blum
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