E. 18th Mgmt. Corp. v. CSC ServiceWorks Inc.

MEMORANDUM & ORDER In this putative class action, Plaintiff East 18th Management Corporation brings this action against Defendant CSC Service Works, Inc. alleging breach of the lease agreements entered into between the parties (Compl. (Dkt. 1).) Before the court is Defendant’s motion to dismiss for lack of subject matter jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(1), failure to state a claim upon which relief can be granted pursuant to Federal Rule of Civil Procedure 12(b)(6), or, in the alternative, to strike nationwide class allegations and inapplicable remedies pursuant to Federal Rules of Civil Procedure (12)(f) and 23(c)(1)(a). (See Def. Mot. to Dismiss (“Mot.”) (Dkt. 19).) For the reasons stated below, Defendant’s motion is GRANTED.I. BACKGROUNDThe court takes the following statement of facts largely from Plaintiff’s complaint, the well-pleaded allegations of which the court generally accepts as true for purposes of Defendants’ motion to dismiss. N.Y. Pet Welfare Ass’n v. City of New York, 850 F.3d 79, 86 (2d Cir. 2017).A. Defendant’s BusinessDefendant is the largest provider of coin-operated laundry machines to commercial and residential buildings in the United States. (Compl. 10.) Since its formation in 2013, Defendant has acquired “Mac-Gray Corporation (one of the nation’s largest laundry service providers operating in 44 states), Sparkle Solutions Corporation (Canada’s third largest laundry route operator), Continental Laundry Systems (Pittsburgh’s largest laundry route operator), Laundryland Route, Inc. (one of the largest laundry facility operators in the Midwest), and other entities.” (Id.

11-12.)Through its regular course of business, Defendant and its acquired companies have “entered into long-term, standardized lease agreements with multi-unit residential buildings, commercial entities, colleges, and universities.” (Id. 13.) Pursuant to these agreements, Defendant is granted exclusive use and possession of a laundry room and is permitted to place laundry equipment in such room. (Id.) In exchange, Defendant pays these entities an agreed-upon percentage of amounts collected from its laundry services after deducting any refunds paid to the building occupants and any taxes, fees, or other charges imposed on its equipment or laundry services. (Id.