NAVRAJ RESTAURANT GROUP, LLC et al v. PANCHERO'S FRANCHISE CORPORATION et al

Filing 40

MEMORANDUM filed. Signed by Judge Peter G. Sheridan on 4/10/2014. (jjc)

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW JERSEY

NAVRAJ RESTAURANT GROUP, LLC,
RAJENDRA I. PATEL, NAVNEET
PATEL, AMP FOOD HOLDINGS LLC,
ERIK PAPADOPOLO, BAHRAM
ASGARIAN and PRABODH MENON,

Civil Action No. 11-7490 (PGS) (LHG)

Plaintiffs,
MEMORANDUM
v.

PANCHERO’S FRANCHISE
CORPORATION and RODNEY L.
ANDERSON,
Defendants.

SHERIDAN, U.S.D.J.
This matter comes before the Court on Defendants Panchero’s Franchise Corporation and
Rodney L. Anderson’s (collectively, “Defendants”) Motion to Alter or Amend the Court’s August
14, 2013 Memorandum Decision & Order pursuant to FED. R. CIV. P. 59(e) (ECF No. 36). 1 The
Court decides this matter without oral argument pursuant to FED. R. CIV. P. 78(b). For the reasons set
forth herein, Defendant’s Motion for Reconsideration is denied.
I.

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BACKGROUND

While Defendants labeled their motion as a “Motion to Alter or Amend Decision and Order of August 14, 2013[,]”
the Court will construe the motion as a Motion for Reconsideration. See Osterneck v. Ernst & Whinney, 489 U.S.
169, 174, 109 S. Ct. 987, 103 L. Ed. 2d 146 (1989) (quoting White v. New Hampshire Dept. of Employment Security,
455 U.S. 445, 451, 102 S. Ct. 1162, 71 L. Ed. 2d 325 (1982)) (indicating that a post judgment motion “will be
considered a Rule 59(e) motion where it involves ‘reconsideration of matters properly encompassed in a decision on
the merits.’”).

The Court will not now belabor the facts of this case which are familiar to the parties. A
more detailed recitation of the underlying facts was stated in this Court’s Memorandum Decision &
Order of August 14, 2013. As such, the Court will rely on those facts in analyzing Defendant’s
Motion for Reconsideration.
For purposes of the present Motion for Reconsideration, it suffices to recall that Plaintiffs
Navraj Restaurant Group, LLC (“Navraj”), Rajendra I. Patel and Navneet Patel (“Navraj Owners”),
AMP Food Holdings, LLC (“AMP”), and Erik Papadopolo, Bahram Asgarian, and Prabodh Menon
(“AMP Owners”) filed an eight-count Amended Complaint on October 22, 2012 asserting statutory
violations of the New Jersey Franchise Practices Act (“NJFPA”), N.J.S.A. § 56:10-1, the New Jersey
Consumer Fraud Act (“NJCFA”), N.J.S.A. § 56:8-1, and the Iowa Business Opportunity Promotions
Law (“IBOPL”), IOWA CODE § 551A et seq., as well as common law claims for breach of contract,
tortious interference with prospective economic advantage, breach of the implied duty of good faith
and fair dealing, fraud and lost income. On November 26, 2012, Defendants moved for dismissal of
the Amended Complaint pursuant to FED. R. CIV. P. 12(b)(6), 9(b) and 10(b). The Court held oral
argument on Defendants’ Motion to Dismiss on July 22, 2013.
On August 14, 2013, the Court issued a Memorandum Decision & Order denying
Defendants’ Motion to Dismiss to the extent it sought dismissal of the Navraj Parties’ claims based
on a forum selection clause included in an agreement between the parties. The Court further held
that the AMP Parties’ claims must be pursued before an arbitrator and permitted the parties fourteen
(14) days within which to assert their right to seek arbitration of the Navraj Parties’ claims. On
August 15, 2013, Plaintiffs’ counsel informed the Court that Plaintiffs had instituted arbitration
proceedings against the Defendants pursuant to the Court’s decision. As such, the Court deemed

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Defendants’ Motion to Dismiss moot and ordered that the case be administratively terminated on
August 21, 2013.
On September 11, 2013, Defendants filed the instant Motion for Reconsideration. Defendants
contend that the Court erred in ordering arbitration for two reasons. First, Defendants contend that
the Navraj Plaintiffs “waived their right to arbitrate and thus are barred from arbitrating their claims
against Defendants[.]” (Defs.’ Br. in Supp. of Mot. for Recons. (“Defs.’ Br.”) at 1). Specifically,
Defendants argue that the Navraj Plaintiffs “chose[] . . . [to] litigate[] their claims [in this forum] for
two years before invoking the arbitration clause in the Development Agent Agreement[,]” and, thus,
“should be estopped from doing so at this late date.” (Id. at 1-2). Second, Defendants contend that
the Panchero’s Franchise Corporation Development Agent Agreement dated March 14, 2007
(“Development Agreement”) between Navraj and Panchero’s was not a franchise agreement and,
therefore, the forum selection clause within that Agreement is enforceable. (Id. at 1) Defendants
argue that the Development Agreement was not a franchise agreement because: (1) the Navraj
Plaintiffs do not have a “place of business” as that term is contemplated in the NJFPA; (2) the
Navraj Plaintiffs did not sell goods or services; and (3) the Development Agreement did not grant a
license to the Navraj Plaintiffs. (Id. at 2).
II.

DISCUSSION
Motions for reconsideration are governed by FED. R. CIV. P. 59(e) and L. CIV. R. 7.1(i). The

“extraordinary remedy” of reconsideration is “to be granted sparingly.” A.K. Stamping Co., Inc. v.
Instrument Specialties Co., Inc., 106 F. Supp. 2d 627, 662 (D.N.J. 2000) (quoting NL Indus., Inc. v.
Commercial Union Ins. Co., 935 F. Supp. 513, 516 (D.N.J. 1996)). The Rule “does not contemplate
a Court looking to matters which were not originally presented.” Damiano v. Sony Music

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Entertainment, Inc., 975 F. Supp. 623, 634 (D.N.J. 1996) (quoting Florham Park Chevron, Inc. v.
Chevron U.S.A., Inc., 680 F. Supp. 159, 162 (D.N.J. 1988)).
The Third Circuit has held that the “purpose of a motion for reconsideration is to correct
manifest errors of law or fact or to present newly discovered evidence.” Harsco Corp. v. Zlotincki,
779 F.2d 906, 909 (3d Cir. 1985), cert. denied, 476 U.S. 1171, 106 S. Ct. 2895, 90 L. Ed. 2d 982
(1986). “Reconsideration motions, however, may not be used to relitigate old matters, nor to raise
arguments or present evidence that could have been raised prior to the entry of judgment.” NL
Indus., Inc., 935 F. Supp. at 516; see also Wright, Miller & Kane, Fed. Practice and Procedure: Civil
2d § 2810.1. Such motions will only be granted only where (1) an intervening change in the law has
occurred, (2) new evidence not previously available has emerged, or (3) the need to correct a clear
error of law or prevent a manifest injustice arises. See North River Ins. Co. v. CIGNA Reinsurance
Co., 52 F.3d 1194, 1218 (3d Cir. 1995). Because reconsideration of a judgment after its entry is an
extraordinary remedy, requests pursuant to these rules are to be granted “sparingly,” Maldonado v.
Lucca, 636 F. Supp. 621, 630 (D.N.J. 1986), and only when “dispositive factual matters or
controlling decisions of law” were brought to the Court’s attention but not considered. Pelham v.
United States, 661 F. Supp. 1063, 1065 (D.N.J. 1987).
Here, the Court finds that there has not been any extraordinary circumstance, such as the
discovery of new evidence, an intervening development or change in the law, or the need to correct a
clear error or prevent manifest injustice, that necessitates reconsideration of its prior decision.
Rather, the Defendants’ Motion for Reconsideration seeks to relitigate matters that have already
been considered by the Court and present arguments that should have been raised earlier in this
litigation. Accordingly, the Defendants’ Motion for Reconsideration is denied.

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III.

CONCLUSION
For the reasons set forth above, Defendant’s Motion for Reconsideration is denied. An

appropriate Order follows.

s/Peter G. Sheridan
PETER G. SHERIDAN, U.S.D.J.

April 10, 2014

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