What was the resolution of the Sutherland/Palumbo, LLC lawsuit related to Cicis?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Sutherland/ Palumbo, LLC v SSCP Management, Inc. et al, Case No. 4:22-cv-00277 (United States District Court, Northern District of Texas).
On April 7, 2022, the plaintiff filed a complaint against the defendants, including SSCP Management, Inc. and Sunil Dharod, seeking damages arising out of a commercial lease. The plaintiff alleged breach of contract, fraud by non-disclosure, civil conspiracy, and violation of the Racketeer Influenced and Corrupt Organizations Act. The plaintiff sought to recover from the defendants actual and exemplary damages, together with fees, costs, and interest. On September 12, 2022, the parties entered into a confidential settlement agreement, and on September 19, 2022, the case was dismissed with prejudice.
Source: Item 3 — LITIGATION (FDD pages 10–11)
What This Means (2025 FDD)
According to Cicis's 2025 Franchise Disclosure Document, Sutherland/Palumbo, LLC filed a complaint on April 7, 2022, against defendants including SSCP Management, Inc. and Sunil Dharod, alleging breach of contract, fraud by non-disclosure, civil conspiracy, and violation of the Racketeer Influenced and Corrupt Organizations Act. The plaintiff sought actual and exemplary damages, along with fees, costs, and interest.
The case, identified as Case No. 4:22-cv-00277 in the United States District Court, Northern District of Texas, reached a resolution on September 12, 2022, when the parties entered into a confidential settlement agreement. Subsequently, on September 19, 2022, the court dismissed the case with prejudice.
For a prospective Cicis franchisee, this lawsuit indicates the types of legal challenges that SSCP Management, Inc., a company associated with Cicis, has faced in the past. While the details of the settlement are confidential, the fact that the case was dismissed with prejudice suggests that the matter was resolved to the satisfaction of the court. Franchisees should be aware that legal disputes, including those related to commercial leases and allegations of fraud, can arise in the course of business operations.