What specific actions of conversion were alleged against the defendants in the Dryer Vent Squad lawsuit?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
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 the 2024 Dryer Vent Squad Franchise Disclosure Document, one lawsuit filed by Thomas J. Scott against Leiby Goldberger and Curt Swanson included an allegation of conversion. Specifically, Scott alleged that the defendants seized control over his personal property at the time of his expulsion from the businesses. This claim was part of a larger suit that included allegations of breach of duty of loyalty, duty of care, duty of good faith and fair dealing, concealment of material information in the franchise disclosure documents, defamation, false light, and civil conspiracy.
It is important to note that this lawsuit was dismissed by the plaintiff, Thomas Scott, without prejudice and without any settlement. This means the case was dropped, and no judgment was made on the merits of the conversion claim or any of the other allegations. The court order reflected the dismissal on December 16, 2022.
For a prospective Dryer Vent Squad franchisee, this information highlights the importance of understanding the litigation history of the franchisor and its principals. While the conversion claim was never adjudicated, the fact that it was raised as part of a broader dispute suggests potential areas of conflict or concern within the franchise system's leadership and partner relationships. It would be prudent for a potential franchisee to seek further clarification from Dryer Vent Squad regarding the circumstances surrounding this lawsuit and its implications for the ongoing management and stability of the franchise.