IN THE CIRCUIT COURT OF THE SEVENTEENTH JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA
CIVIL DIVISION
Case No.: 1021-00006
VERIMARK HOSPITALITY GROUP INC., a Delaware corporation,
Plaintiff,
v.
COASTAL PALMS FRANCHISE HOLDINGS LLC, a Florida limited liability company; RANDALL BRECKER, individually; and SUNCOAST ROOM MANAGEMENT INC., a Florida corporation,
Defendants.
SUMMONS / NOTICE TO APPEAR
Directed to Defendant: SUNCOAST ROOM MANAGEMENT INC. a Florida corporation
Date of Issuance: March 7, 2022
I. IDENTIFICATION OF DEFENDANT
TO: SUNCOAST ROOM MANAGEMENT INC., a Florida corporation (hereinafter "Suncoast" or "Defendant")
President: Randall Brecker
Capacity in Which Sued: Defendant, named individually in Count VII (Unjust Enrichment — alternative) and Count X (Civil Conspiracy) of the Complaint filed herein.
IMPORTANT: Service of this Summons and the attached Complaint shall be made upon a registered officer, director, or agent authorized to accept service of process on behalf of Suncoast Room Management Inc. in accordance with Section 48.081, Florida Statutes, and Rule 1.070, Florida Rules of Civil Procedure, or upon such other person or entity designated by Suncoast Room Management Inc. as its registered agent for service of process with the Florida Department of State, Division of Corporations.
II. NOTIFICATION OF LAWSUIT
YOU ARE HEREBY NOTIFIED that a civil action has been commenced and is now pending against Suncoast Room Management Inc. in the Circuit Court of the Seventeenth Judicial Circuit in and for Broward County, Florida, bearing Case No. 1021-00006.
The Plaintiff in this action is Verimark Hospitality Group Inc., a Delaware corporation, with its principal office located at 2400 East Las Olas Boulevard, Suite 3100, Fort Lauderdale, Florida 33301.
The nature of this action involves claims for breach of contract, fraudulent concealment, civil conspiracy, unjust enrichment, and related causes of action arising from the systematic underreporting of Gross Room Revenue under franchise agreements entered into between Verimark Hospitality Group Inc. and co-defendant Coastal Palms Franchise Holdings LLC. Suncoast Room Management Inc. is alleged to have participated in and facilitated the scheme to underreport Gross Room Revenue by, among other things, collecting and retaining guest-room revenues generated through off-platform and direct-booking channels that were not reported to Plaintiff, thereby depriving Plaintiff of royalties, marketing-fund contributions, technology fees, and other amounts owed under the subject franchise agreements.
III. COMPLAINT ATTACHED
A true and correct copy of the Complaint is attached hereto and served herewith. The Complaint contains ten (10) counts, was filed with the Clerk of the Circuit Court of the Seventeenth Judicial Circuit in and for Broward County, Florida, on March 7, 2022, and sets forth in detail the factual allegations and legal claims asserted by Plaintiff against all named Defendants, including Suncoast Room Management Inc.
Suncoast Room Management Inc. is directed to read the Complaint carefully in its entirety, including but not limited to the counts in which Suncoast Room Management Inc. is specifically named as a Defendant, as described in Section V below.
IV. REQUIREMENT TO RESPOND
YOU ARE REQUIRED to serve a written response to the Complaint — which may consist of an Answer, Motion to Dismiss, or other responsive pleading authorized under the Florida Rules of Civil Procedure — upon Plaintiff's counsel at the following address:
Priya Anand, Esq. Florida Bar No. 0087451 Calderwood & Harkness LLP 110 SE 6th Street, Suite 2800 Fort Lauderdale, Florida 33301 Telephone: (954) 555-3200 Counsel for Plaintiff, Verimark Hospitality Group Inc.
The written response must be served within twenty (20) days after the date of service of this Summons and the attached Complaint upon Suncoast Room Management Inc., exclusive of the date of service, or within such other time as may be provided by the Florida Rules of Civil Procedure, including but not limited to Rule 1.140(a)(1), Florida Rules of Civil Procedure. In addition, the original of the responsive pleading must be filed with the Clerk of Court either before service or immediately thereafter, in accordance with Rule 1.080, Florida Rules of Civil Procedure, and applicable administrative orders of this Court governing electronic filing.
V. WARNING — DEFAULT
IF YOU FAIL TO SERVE A WRITTEN RESPONSE TO THE COMPLAINT WITHIN THE TIME REQUIRED BY LAW, A DEFAULT MAY BE ENTERED AGAINST YOU BY THE COURT FOR THE RELIEF DEMANDED IN THE COMPLAINT.
YOU ARE HEREBY WARNED that if Suncoast Room Management Inc. fails to file and serve a timely written response to the Complaint as required herein, Plaintiff may apply to the Court for the entry of a default against Suncoast Room Management Inc. pursuant to Rule 1.500, Florida Rules of Civil Procedure. Upon entry of a default, the Court may thereafter enter a default final judgment against Suncoast Room Management Inc. for any and all relief demanded in the Complaint, including but not limited to monetary damages, equitable relief, prejudgment and post-judgment interest, attorneys' fees, costs, and such other relief as the Court deems just and proper.
The counts asserted against Suncoast Room Management Inc. in the Complaint include, without limitation, Count VII (Unjust Enrichment — alternative) and Count X (Civil Conspiracy), each of which seeks substantial damages and equitable relief. Suncoast Room Management Inc. is urged to consult with an attorney immediately upon receipt of this Summons and the attached Complaint.
VI. COUNTS APPLICABLE TO SUNCOAST ROOM MANAGEMENT INC.
For the convenience and notice of Suncoast Room Management Inc., the following is a brief summary of the counts of the Complaint in which Suncoast Room Management Inc. is specifically named as a Defendant. This summary is provided for reference purposes only and is not a substitute for the Complaint itself. Suncoast Room Management Inc. is directed to review the Complaint in its entirety.
Count VII — Unjust Enrichment (Alternative)
Plaintiff alleges that Suncoast Room Management Inc. was unjustly enriched by collecting and retaining guest-room revenues — including, without limitation, a twelve percent (12%) management fee calculated on direct-booking revenue generated through off-platform booking channels — that constituted Gross Room Revenue as defined under the franchise agreements between Plaintiff and co-defendant Coastal Palms Franchise Holdings LLC. Plaintiff alleges that royalties, marketing-fund contributions, technology fees, and other contractual payments were owed to Plaintiff based upon the full amount of such Gross Room Revenue, and that Suncoast Room Management Inc. received and retained the benefit of revenues that were improperly diverted from the reporting and payment obligations owed to Plaintiff, thereby conferring upon Suncoast Room Management Inc. an unjust benefit at Plaintiff's expense. Plaintiff asserts this count in the alternative to its breach of contract claims.
Count X — Civil Conspiracy
Plaintiff alleges that Suncoast Room Management Inc. entered into and participated in a conspiracy with co-defendants Randall Brecker and Coastal Palms Franchise Holdings LLC to systematically divert and conceal guest-room revenues through off-platform booking channels — including, without limitation, the unbranded website known as gulfcoastrooms.com — and through affiliated management arrangements involving Suncoast Room Management Inc. Plaintiff alleges that this conspiracy resulted in the underreporting of an estimated One Hundred Ninety-Seven Million Eight Hundred Thousand Dollars ($197,800,000.00) in Gross Room Revenue over the period from January 2013 through and including 2021. Plaintiff alleges that Suncoast Room Management Inc., acting in concert with the other Defendants, knowingly and willfully engaged in overt acts in furtherance of the conspiracy, including the processing, collection, and retention of guest-room revenues outside of the reporting systems and channels established under the franchise agreements, with the purpose and effect of depriving Plaintiff of franchise fees and other compensation to which Plaintiff was entitled.
VII. CLERK'S CERTIFICATION
ISSUED by the Clerk of the Circuit Court of the Seventeenth Judicial Circuit in and for Broward County, Florida, on this 7th day of March, 2022.
BRENDA D. FORMAN CLERK OF THE CIRCUIT COURT SEVENTEENTH JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA
By: ________
Deputy Clerk
Date: March 7, 2022
[SEAL]
Official Seal of the Clerk of the Circuit Court Broward County, Florida
VIII. RETURN OF SERVICE
(To be completed by the process server upon service of this Summons and the attached Complaint.)
I HEREBY CERTIFY that I served this Summons and the attached Complaint upon the above-named Defendant, Suncoast Room Management Inc., as follows:
Date of Service: ________
Time of Service: ________
Person Served (Name): ________
Title / Capacity of Person Served: ________
Address Where Served: ________
________________________________________
________________________________________
Manner of Service:
Personal Service (Fla. Stat. § 48.031)
Substituted Service (Fla. Stat. § 48.031(1)(a))
Service upon Registered Agent (Fla. Stat. § 48.081)
Service upon Officer or Director (Fla. Stat. § 48.081)
Other (specify): ________
Non-Service (if applicable): ________
________________________________________
________________________________________
Signature of Process Server
Printed Name: ________
Process Server Identification No.: ________
Date: ________
FILING AND CASE INFORMATION
Plaintiff's Counsel of Record:
Priya Anand, Esq. (Florida Bar No. 0087451) Douglas Carmichael, Esq. (Florida Bar No. 0093217) Calderwood & Harkness LLP 110 SE 6th Street, Suite 2800 Fort Lauderdale, Florida 33301 Telephone: (954) 555-3200 Counsel for Plaintiff, Verimark Hospitality Group Inc.
| Field | Information |
| Case Number | 1021-00006 |
| Court | Circuit Court of the Seventeenth Judicial Circuit in and for Broward County, Florida |
| Division | Civil Division |
| Assigned Judge | Hon. Richard M. Calloway, Circuit Judge |