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Keywords

plaintiffdefendantliabilitymotionmotion to dismiss
plaintiffdefendantliabilitymotionmotion to dismiss

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BKR Restaurants, LLC, d/b/a

Facts

Plaintiff Chang Yan Chen worked as a delivery worker for two restaurants in New York City from July 2014 to June 2019. He previously sued these restaurants for wage and hour violations and later filed this action against L&L New Beginnings LLC and Yasmin Kuhn, alleging they were successors to the restaurants. Chen claimed that L&L was incorporated after the restaurants closed and that it employed some of the same staff, but he did not allege that he was ever employed by L&L.

Plaintiff Chang Yan Chen worked as a delivery worker for two restaurants in New York City from July 2014 to June 2019. He previously sued these restaurants for wage and hour violations and later filed this action against L&L New Beginnings LLC and Yasmin Kuhn, alleging they were successors to the restaurants. Chen claimed that L&L was incorporated after the restaurants closed and that it employed some of the same staff, but he did not allege that he was ever employed by L&L.

Issue

The main legal issue was whether L&L New Beginnings LLC could be held liable under a theory of successor liability for the wage and hour claims stemming from the operations of the predecessor restaurants.

The main legal issue was whether L&L New Beginnings LLC could be held liable under a theory of successor liability for the wage and hour claims stemming from the operations of the predecessor restaurants.

Rule

The court applied two tests for establishing successor liability in New York: the substantial continuity test and the traditional common-law test, both of which require a showing that the successor entity purchased assets from the predecessor.

The court applied two tests for establishing successor liability in New York: the substantial continuity test and the traditional common-law test, both of which require a showing that the successor entity purchased assets from the predecessor.

Analysis

The court analyzed whether Chen had sufficiently alleged that L&L purchased any assets from the predecessor restaurants. It noted that while Chen claimed L&L operated similarly to the previous restaurants, he failed to provide any factual basis to support the assertion that L&L acquired assets or operated in the same location as the predecessors. The court emphasized that without such allegations, the claim for successor liability could not stand.

The court analyzed whether Chen had sufficiently alleged that L&L purchased any assets from the predecessor restaurants. It noted that while Chen claimed L&L operated similarly to the previous restaurants, he failed to provide any factual basis to support the assertion that L&L acquired assets or operated in the same location as the predecessors. The court emphasized that without such allegations, the claim for successor liability could not stand.

Conclusion

The court granted the defendants' motion to dismiss, concluding that Chen had not stated a plausible claim for successor liability against L&L or Kuhn.

The court granted the defendants' motion to dismiss, concluding that Chen had not stated a plausible claim for successor liability against L&L or Kuhn.

Who won?

L&L New Beginnings LLC and Yasmin Kuhn prevailed in the case because the court found that Chen failed to establish that they were his employers or that they had successor liability for the wage claims.

L&L New Beginnings LLC and Yasmin Kuhn prevailed in the case because the court found that Chen failed to establish that they were his employers or that they had successor liability for the wage claims.

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