Magistrate Judge Theodore H. Katz
Gallagher’s NYC Steakhouse Franchising Inc. franchises restaurants. Tully and Walker guaranteed NY Steakhouse of Tampa Inc.’s obligations—including royalty payments—under a 2006 agreement. Tampa’s nonpayment breached the pact, which plaintiff terminated in 2010. Tampa breached a later agreement allowing it to stay open into 2011. In plaintiff’s action for contract breach—and Tully and Walker’s breach of guarantee—defendants conceded breach and that plaintiff was owed $106,393 in royalties, and $11,774 in interest. In holding plaintiff entitled to judgment, the court rejected counterclaims that an issue existed over damages because of plaintiff’s alleged interference with Tampa’s agreement to cater Gallagher’s food to the Tampa Bay Arena. Discussing Lazard Freres & Co. v. Crown Sterling Mgmt., the court found the counterclaims—for breaches of contract and the implied covenant of good faith and fair dealing—independent of plaintiff’s claims, and not presenting facts affecting plaintiff’s right to damages. Although the “prevailing” party the court denied plaintiff’s request for $31,256 in attorney fees, reasonableness was not shown.
