What court removed the action to federal court in the lawsuit involving Dryer Vent Squad?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
Thomas Scott v. Leiby Goldberger and Curt Swanson, Docket No. 3:22-cv-00763 in the United States District Court for the Middle District of Tennessee (originally filed in Chancery Court for Davidson County, Tennessee at Nashville on August 24, 2022 as Thomas J. Scott v. Leiby Goldberger and Curt Swanson, Case No. 22-1140-I). Defendants removed the action to federal court on September 29, 2022. The plaintiff, Thomas J. Scott, the former member and COO of Clozetivity Franchising, LLC, Dryer Vent Squad Franchising, LLC, Frost Shades Franchising, LLC, and Magnetainment Franchising, LLC filed a suit against our CEO and COO, Leiby "Leo" Goldberger and Curt Swanson, respectively, alleging a breach of the duty of loyalty, duty of care, and duty of good faith and fair dealing in connection with his expulsion from the businesses. The plaintiff alleges the defendants concealed material information that they had a duty to disclose to plaintiff and in the Clozetivity, Dryer Vent Squad, Frost Shades, and Magnetainment Franchise Disclosure Documents. The plaintiff further alleges conversion, alleging the defendants seized control over his personal property at the time of his expulsion. The plaintiff alleges that following his expulsion, communications between the management team and the franchisees have defamed him and placed him in a false light and that defendant engaged in civil conspiracy in connection with his expulsion. Prior to Defendants filing an answer, Plaintiff dismissed the complaint without prejudice and without any settlement, and the Court entered an order reflecting the dismissal without prejudice on December 16, 2022.
Source: Item 3 — LITIGATION (FDD pages 11–15)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, the case Thomas Scott v. Leiby Goldberger and Curt Swanson, originally filed in the Chancery Court for Davidson County, Tennessee, was removed to the United States District Court for the Middle District of Tennessee. The defendants in the case, Leiby Goldberger and Curt Swanson, removed the action to federal court on September 29, 2022.
The lawsuit involved allegations by Thomas J. Scott, the former member and COO of several franchising companies including Dryer Vent Squad Franchising, LLC, against Dryer Vent Squad's CEO and COO. Scott alleged a breach of duty of loyalty, duty of care, and duty of good faith and fair dealing related to his expulsion from the businesses. He also claimed that the defendants concealed material information in the Dryer Vent Squad Franchise Disclosure Documents and alleged conversion and civil conspiracy.
It is important to note that prior to the defendants filing an answer, Thomas Scott dismissed the complaint without prejudice and without any settlement. The court entered an order reflecting the dismissal without prejudice on December 16, 2022. This means the case was dropped without a resolution, and Scott could potentially refile the lawsuit in the future, although he has not done so to date.