Argus Capital Management LLC v. The Grounds Guys SPV, LLC

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA 10 ARGUS CAPITAL, Case No. 1:23-cv-00043 JLT Plaintiff, ORDER DENYING DEFENDANTS’

MOTION TO DISMISS PURSUANT

v. FEDERAL CIVIL PROCEDURE RULES 12(b)(1) and 12(b)(6) KATHLEEN ALLISON, PETER ALDANA, ROB BONTA, AND BRIAN (Docs. 15, 16, 20, 23) CATES, Defendants. 17 The matter before the Court arises from the franchise agreement between Argus Capital Management LLC and The Grounds Guys SPV LLC. The current dispute concerns the enforceability of a mandatory out-of-state mediation provision. Specifically, an express “condition precedent” requires Argus Capital, a California franchisee, to meet and mediate with The Grounds Guys, the franchisor, in Texas before filing or initiating any action in court. Argus Capital filed a complaint in this Court alleging fraud-based claims against The Grounds Guys. The Grounds Guys filed two motions: (1) a motion to dismiss under Federal Civil Procedure Rules 12(b)(1) and 12(b)(6) and (2) a…