(Lyle Dep. Defendants challenge the credibility of RSS's allegations in the pleadings and affidavits. This case was filed in Duval Unlike other mattress lawsuits like the Purple lawsuit, Nectar lawsuit, Ashley lawsuit, and the Zinus lawsuit; Mattress By Appointment wasnt sued because of how their mattresses are manufactured. Instead, their lawsuits are all based on their business practices. Web1) Was Mattress By Appointment previously known as Carolina Bedding Direct? at 13; ECF No. Id. 21 0 obj Theunissen, 935 F.2d at 1459. 1988) ; Shaker Constr. To read the whole thing, the dealers would have to scroll through a 3 x 5 box. I think you are referring to BoxDrop Mattress. 21-22.) << (Hackett Aff. Urine washes pretty easily. v. R.E. /Annots [] >> O.R.C. (Compl. The Ohio long-arm statute's " transacting any business' standard is coextensive with the purposeful availment prong of constitutional analysis." 's Mem. >> /Rotate 0 /Annots [] One after the other, deceptive practices, lies, and illegal activities of Mattress By Appointment LLC were surfacing.if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[250,250],'sleepline_com-leader-2','ezslot_12',663,'0','0'])};__ez_fad_position('div-gpt-ad-sleepline_com-leader-2-0'); They learned about the business playbook being stolen from Retail Service Systems, along with all of the training, marketing, and other strategies. What you should ALL be offended by is the pricing at Big retailers; such as Mattress Firm and Furniture stores. If you want to pay $3k for a mattress, which places like Mattress by appointment sell for 1/2 or less, go waste your money. Here, the cause of action against defendants is sufficiently connected to its in-state activities. Conrad and Shoffner managed to grow the business and expand by finding people to be franchise owners, promising them yearly earnings of $75,000 to $150,000, and leaving them stranded when the franchises would fail. 425, 431 (6th Cir. Given that RSS alleges its trade secrets were originally developed and stolen in Ohio and that RSS is based in Ohio and suffers harm there, defendants' Ohio activities appear to be sufficiently linked to the matter at hand. A district court may combine similar matters "when actions involving nearly identical parties and issues have been filed in two different district courts," in which case the first suit filed will proceed. That makes me think you responded in an over the top manner, and that might be why the patron threatened a lawsuit. The draft agreement with Shoffner is the only evidence of MBA (SC) operating anywhere. Defendants maintain that "MBA (SC) conducts no business, whatsoever, in any state, as it is a non-operational limited liability company." Cancellation and Refund Policy, Privacy Policy, and endobj WebAt Mattress By Appointment, we deliver great value on an ever-changing selection of top brand mattresses, at prices generally 50%-80% below full-price retailers. /MediaBox [0 0 612 792] , No. Plaintiff here has alleged sufficient facts showing that defendants have purposefully availed themselves of the privilege of acting in Ohio. Following trial, the Franklin County Court of Common Pleas granted PMD a fifteen-month permanent injunction (to run from January 26, 2009 to June 26, 2010) in addition to $140,000 in compensatory damages and $40,000 in punitive damages. /Annots [] Ohio, Eastern Division. (Id. The four factors outlined above demonstrate that the court's exercise of personal jurisdiction over defendants MBA (FL) II and Shoffner is reasonable. /Parent 2 0 R 61-63; ECF No. Federal Rule of Civil Procedure 12(b)(2) provides for dismissal when a court lacks personal jurisdiction over a defendant. 2020-10-08, Duval County - Fourth Judicial Circuit Court | Contract | Make your practice more effective and efficient with Casetexts legal research suite. 4; ECF No. First, RSS has alleged that as sole owner and operator of MBA (FL) II, Shoffner has complete control over MBA (FL) II such that the entity has no separate mind, will, or existence of its own. /Parent 2 0 R << 2006) However, the negotiations here do not seem to involve Ohio in any way. 8 0 obj >> We don't have hard-and-fast traditional retail hours mandated by a corporate office. This argument is not persuasive however, given that to "transact" merely contemplates to "carry on business" or "have dealings with." In considering a motion to dismiss for lack of personal jurisdiction, district courts have discretion to either decide the motion on the pleadings alone, permit discovery in aid of deciding the motion, or conduct an evidentiary hearing to resolve any apparent factual questions. 8-10.) Defendants now move to dismiss for lack of personal jurisdiction. Without more, plaintiff has not pled sufficient facts showing that MBA (SC) transacted business in Ohio or is subject to personal jurisdiction under another long-arm provision. 19; ECF No. EST., VIA ZOOM, MOTION TO COMPEL (PLAINTIFF'S SECOND) AGAINST DEFENDANTS, NOTICE OF CANCELLATION OF DEPOSITION (PLAINTIFF'S) DUCES TECUM OF CORP. REP. OF NATIONWIDE MARKETING GROUP LLC. 8-10.) they have good prices and they have good beds Heather Golden recommends Mattress By Appointment Defendants argue that the agreement is not "transacting business" because provision 16 provides that it does not create any "form of legal association or arrangement that would impose liability upon one part for the acts or omission of the other party." citing Decision at 11; ECF No. (Defs.' Duval County - Fourth Judicial Circuit Court, 11/28/2022- D45- MOTION (PLTF EMERGENCY) TO SCHEDULE STATUS CONFERENCE AND STAY PLTF OBLIGATIONS UNDER CONFIDENTIAL SETTLEMENT AGREEMENT, 12/6/2022- D48- NOTICE OF CANCELLATION OF HEARING ON 12/7/22 @ 950AM, 12/6/2022- D47- STIPULATION OF DISMISSAL (JOINT) WITH PREJUDICE, 11/30/2022- D46- NOTICE OF STATUS CONFERENCE ON 12/07/2022 @950AM VIA ZOOM, 11/17/2022- D44- MOTION TO STRIKE (JOINT) AND SEAL, 11/17/2022- D43- NOTICE OF HEARING ON FRIDAY, NOVEMBER 18, 2022 AT 09:00 A.M. %PDF-1.4 WebDefendant Mattress By Appointment, LLC (MBA (FL) II) is a Florida limited liability company with its principal place of business at 2817 Alaskan Way, Jacksonville, Florida 32226. (Mot. Andre only It's a privilege to do, By Appointment dealer purchases mattress inventory for. For the reasons stated above, Defendants' Motion to Dismiss for lack of personal jurisdiction (ECF No. They still continue to sue people who werent able to fulfill their side of the shady contract. Their business model is in their name customers schedule one-on-one appointments and try mattresses out with a salesman helping them decide which ones the right for them. 15.) << at 4; ECF No. Ripoff Report | Mattress By Appointment complaints, reviews, scams, lawsuits and frauds reported, 2 results MATTRESS BY APPOINTMENT Ripoff Reports, The total damage caused to RSS is hard to determine but is worth millions of dollars.if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[250,250],'sleepline_com-large-mobile-banner-1','ezslot_9',661,'0','0'])};__ez_fad_position('div-gpt-ad-sleepline_com-large-mobile-banner-1-0'); Thats why the plaintiff asked for the defendant to get a permanent injunction from using RSSs proprietary materials, pay all damages, past and future royalties, punitive damages, interest as allowed by law, and any attorneys fees and expenses. 8-6.) They basically just have to pay for the storefront and the inventory. The whole time they did business with the MBA, defendants were told that the practices each mattress store had to adhere to were MBAs proprietary methods. Plaintiff has not alleged sufficient facts to make a prima facie showing of personal jurisdiction over MBA (SC) under Ohio's long-arm statute. Additionally, the same in-state activities alleged here are also at issue in the related litigation before the court. 12 0 obj The case has since been transferred to this Court. endobj Through these activities, defendants have established a substantial connection to the state. (ECF Nos. See, From approximately 2000 to 2003, Darren Conrad worked for PMD as a dealer and manager in Columbus, Ohio. /Resources 86 0 R Defendants dispute this characterization and argue that Shoffner worked at Park Place as a Sales Representative where he was paid the standard sales commission. 7.) Lawsuit against Mattress By Appointment. In March 2013, Shoffner purchased a 45% ownership interest in Carolina Bedding Direct (FL). /Resources 82 0 R Ins. endobj Courts in the Sixth Circuit make this determination using the three-part test set forth in Southern Machine Company v. Mohasco Industries, Inc., 401 F.2d 374, 381 (6th Cir. at 47576, 105 S.Ct. Reply at 14; ECF No. 1868, 80 L.Ed.2d 404 (1984) ; World wide Volkswagen Corp., 444 U.S. at 299, 100 S.Ct. at 4.) Retail Service Systems, Inc. v. Carolina Bedding Direct, LLC, et al., No. Regardless of the true agent, defendants do not allege that actual notice to MBA (FL) II was deficient. Great over all experience! >> Not only is the product great, but the man behind the counter has an, awesome heart and a local, can do attitude. x+ | the website contains incorrectly labeled graphics, links, and buttons. Our stores dont have expensive overhead, so you dont pay for it in your mattress price. << endobj In a deceitful manner, MBA manipulated the dealers to accept the terms of a non-compete/territory agreement. 19 0 obj endobj ("Our History," Mattress By Appointment; ECF No. endobj /Contents [59 0 R 60 0 R 61 0 R] /Annots [] in Opp. 8.) to Dismiss ("Pl. (Defs.' & Additives Co. v. PXL Chemicals BV. All of their mattresses come with a free trial so you can replace or return it if it isnt working out for you. We are local entrepreneurs, who work hard to build and support our local communities. It's a privilege to dobusiness with Mattress By Appointment! 2001) ). He first founded Carolina Bedding and Furniture, which was renamed Carolina Bedding Direct, and then finally Mattress By Appointment. Yes, Mattress By Appointment LLC sued numerous individuals (current or former franchise owners) as a way of debt collection. 1-3. According to Scott Andrew, President of RSS, Shoffner "undoubtedly engages in various interactions" with its Ohio dealers, including providing training materials, processing regular orders, and weekly phone calls. /Resources 58 0 R << Here, "MBA (FL) II" will be used to refer to the more recently registered company (also formerly known as Carolina Bedding Direct, LLC) and present Defendant. Defendant C. Edwin Shoffner is a South Carolina citizen and the sole owner and operator of MBA (FL) II and MBA (SC). 5:09cv01575, 2010 WL 816344, at *5 (Mar. at 19; ECF No. 140. Greetings Corp. v. Cohn, 839 F.2d 1164, 1169 (6th Cir. Through its activities in Ohio, MBA (FL) II and Shoffner have established a substantial connection to the state. << /MediaBox [0 0 612 792] 8.) Here, RSS has made a prima facie showing that defendants MBA (FL) II and Shoffner have transacted business in Ohio by listing its Ohio dealers on its public website, contracting with dealers to sell mattresses in Ohio, and actively advertising open sales positions in Ohio. And the best part of all, documents in their CrowdSourced Library are FREE! /Parent 2 0 R In the meantime, Power Marketing Direct, Inc. changed the company name to Retail Service Systems, Inc. Another change took place, but on the other side Conrad made an arrangement with another shady character, Edwin Shoffner. Mattress brands sold /Length 22 0 R Plaintiff bears the burden of establishing personal jurisdiction. /Contents [43 0 R 44 0 R 45 0 R] /Contents [79 0 R 80 0 R 81 0 R] I will say though that we bought a mattress from them about a year ago for $600 (broke newlyweds), and we are regretting the purchase. Webmattress by appointment lawsuit. Though questionably broad, it is the precise manner in which defendants conduct their business that plaintiff alleges is at issue. endobj (Compl. Defendant Mattress By Appointment, LLC ("MBA (SC)") is a South Carolina limited liability company. The attached PDF is a summarization of a lawsuit against Mattress By Appointment and it predecessor (s) for stealing and enforcing a business model that was never theirs. However, a nonresident must do more than simply solicit business in Ohio; "a nonresident's ties must create a "substantial connection" with the [state]. " U.S. Sprint Commc'ns Co. Ltd. P'ship v. Mr. K's Foods, Inc., 68 Ohio St.3d 181, 624 N.E.2d 1048, 1052 (1994) (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475, 105 S.Ct. 2015cp0402161 (S.C. Ct. Com. at 16.) 1:08cv278, 2008 WL 4346777, at *1 (S.D. Although Shoffner admits that he intended to transfer the business of MBA (FL) II to MBA (SC) when he formed it, no such transfer has occurred yet. 3:06CV122, 2006 WL 2486562, at *2 (S.D. Details About Ashley Furniture Mattress Lawsuits There have been many lawsuits against Ashley Furniture Industries, Inc. in the past few years from dissatisfied Shoffner knew about the injunction the court had placed, but still agreed upon this deal, and the deal was he would be able to sell mattresses at Conrads franchise stores and Conrad would take a cut.if(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[250,250],'sleepline_com-large-leaderboard-2','ezslot_4',659,'0','0'])};__ez_fad_position('div-gpt-ad-sleepline_com-large-leaderboard-2-0'); In 2011, Conrad made a new company in North Carolina, called Carolina Bedding Direct. /Annots [] 8.) at 28; ECF No. 1 0 obj First Nat'l Bank v. J.W. 1:08cv278, 2008 WL 4346777, at *1 (S.D. 2:13cv994 (S.D. 1982). Id. They then found out about numerous versions of the plaintiffs name, and that they had signed a contract with the non-functioning Mattress By Appointment the one we mentioned above the company whose name was only registered, but never active. /Resources 62 0 R Co., 91 F.3d 790, 793 (6th Cir. >> Plaintiff next offers the deposition Nick Lyle, who was employed by Carolina Bedding Direct, the predecessor of MBA (FL) II. /CreationDate (D:20150831153924) Mgmt., LLC v. City of Sevierville, Int'l Petroleum Prods. >> << Plaintiff insists that "[a] corporation should not be allowed to evade service of process by simply failing to file its agent's new address." To Defs.' 2:13cv994 (S.D. Indeed, as the Sixth Circuit has explained, a court disposing of a 12(b)(2) motion "does not weigh the controverting assertions of the party seeking dismissal." In considering a 12(b)(2) motion, the court is not required to "weigh the controverting assertions of the party seeking dismissal." Grp. 1996). /MediaBox [0 0 612 792] (Pl. /Type /Page 15. However, "the first-to-file rule is inapplicable where the prior-filed similar action was filed in state court, not federal court." /Type /Page /Type /Page "Transacting business" does contemplate "business negotiations" that have been "partly brought to a conclusion." Ohio Mar. Lawsuit against Mattress By Appointment. Zinus, Inc. is among the defendants in a proposed class action that claims some of the companys mattresses can release large amounts of glass fibers, included in the product by law for fire retardant purposes, into the surrounding environment, potentially resulting in life-threatening injury. endobj (Defs.' Ride, Inc. v. Bowshier, No. JavaScript seems to be disabled in your browser. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. As sole owner of both companies, Conrad transferred the company's assetsincluding dealers, employees, playbook, bank accounts, and federal Employer Identification Numberto the Florida entity and thereafter dissolved the North Carolina entity in April 2012. However, an agreement to limit liability does not negate the existence of a business transaction. 2021-03-19. >> Defendants argue that there is no evidence they "transacted any business" in Ohio. He broke the rules of this contract by becoming a direct competitor, using stolen methods, marketing techniques, and other trade secrets. Ohio has a strong interest in safeguarding RSS's legal options over the misappropriation of an Ohio corporation's trade secrets given that the trade secrets were allegedly developed and stolen in Ohio and continue to be misappropriated in Ohio. /Type /Page >> at 3-4; ECF No. Now there was one Carolina Bedding in North Carolina, one Mattress By Appointment that was just registered, but not active, and another Mattress By Appointment entity, which was previously Carolina Bedding from Florida. ), MATTRESS BY APPOINTMENT LLC VS JEREMY CORNELL, Fees- Description : CIR/GENERALCIVIL 7/1/2019; Assessed : $401.00; Paid : $401.00; Balance : $0.00, Entered: 9/20/2021; CASE FEES PAID: $401.00 ON RECEIPT NUMBER 3988778, Entered: 9/20/2021; COMPLAINT FOR DAMAGES AND INJUNCTIVE RELIEF, Entered: 9/20/2021; CONTRACT AND INDEBTEDNESS. at 28, 3031.) Defendants argue that Lyle's professional titles were self-imposed and thereby do not convey substantive meaning. /MediaBox [0 0 612 792] /Subtype /XML Accordingly, "where the defendant deliberately has engaged in significant activities within a State, or has created continuing obligations' between [itself] and residents of the forum, [it] manifestly has availed [itself] of the privilege of conducting business there." Manage Settings /Contents [55 0 R 56 0 R 57 0 R] at ECF No. endobj Ault Int'l Med. citing Lyle Dep. Sys. Mot. The Judge overseeing this case is DEARING, KATIE L. The case status is Disposed - Other >> "Only when the operative facts of the controversy are not related to the defendant's contact with the state can it be said that the cause of action does not arise from that [contact]." The lawsuit was triggered by a negative review of the brand that was posted on a website that the company viewed as having inaccurate information. Second, RSS contends that Shoffner knew about the injunction against Conrad when he joined Carolina Bedding Direct (now MBA (FL) II) and has continued to misappropriate RSS's trade secrets as the sole owner of MBA (FL) II. To satisfy Ohio's long-arm statute, defendants must not only have "transacted any business in the state," but there must also exist a sufficient nexus between Defendants' business dealings in Ohio and the matters at issue in this case. Baker v. Tom Joseph Enterprises, Inc., No. Taking RSS's allegations as true, RSS has pled sufficient facts to establish personal jurisdiction over defendant Shoffner. (Defs.' Am., Inc. v. Branch, No. Our advice to any prospective customer is to stay away from Mattress By Appointment, LLC and spread the word, if possible. They dont have many brands they do have Serta, for example, but its not cheaper than elsewhere in many cases, its the exact opposite. >> to Intervene and Stay; 2:13-cv-994, ECF No. Thus, to find that it has personal jurisdiction over Defendants, the Court must determine first whether Defendants' actions meet the criteria of Ohio's long-arm statute, O.R.C. (Defs.' When Conrad left Power Marketing Direct, Inc., he signed a three-year non-compete agreement. (Id. ) /Annots [] They claim to sell all brand new sealed mattresses and furniture that they purchase direct from manufacturers and pass on the savings. Mattress By Appointment had promised the dealers that they would get favorable pricing, although it was never defined what favorable pricing meant. Sevierville, Int ' l mattress by appointment lawsuit v. J.W such as Mattress Firm and Furniture.. 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