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FILED: NEW YORK COUNTY CLERK 10/22/2021 05:48 PM INDEX NO. 655374/2018
NYSCEF DOC. NO. 341 RECEIVED NYSCEF: 10/22/2021
EXHIBIT A
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK: COMMERCIAL DIVISION
IS CHRYSTIE MANAGEMENT LLC and
DEVONWOOD CORPORATION LLC, Index No.: 655374/2018
Plaintiffs,
(Motion Seq. No. ____)
- against -
NOTICE OF MOTION
ADP, LLC,
Oral Argument Requested
Defendant.
PLEASE TAKE NOTICE that, upon the annexed Affirmation of Randall L.
Morrison, Jr., dated June 4, 2021 and the exhibits attached thereto, the Affidavit of John Pender
dated June 4, 2021 and the exhibit attached thereto, the accompanying memorandum of law, the
accompanying Rule 19-a Statement of Undisputed Material Facts, and all prior pleadings and
proceedings had herein, defendant ADP, Inc, (“ADP”), formerly known as ADP, LLC, by its
attorneys, Kelley Drye & Warren LLP, will move this Court at the Courthouse, located at 60
Centre Street, Room 130, New York, New York 10007 on August 6, 2021 at 9:30 a.m., or as
soon thereafter as counsel can be heard, for an Order pursuant to CPLR 3212(b) granting partial
summary judgment to ADP on the sole remaining claim for breach of contract in the Amended
Complaint, and for such other relief as this Court deems just and proper.
PLEASE TAKE FURTHER NOTICE that, pursuant to CPLR 2214(b), any
answering papers or notices of cross-motion, with supporting papers, if any, shall be served upon
the undersigned at least seven days before the return date of this motion and reply papers shall be
served at least one day before the return date of this motion.
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Dated: New York, New York Respectfully submitted,
June 7, 2021
KELLEY DRYE & WARREN LLP
By: /s/ William S. Gyves
William S. Gyves
Randall L. Morrison, Jr.
Robert N. Ward
3 World Trade Center
175 Greenwich Street
New York, NY 10007
Tel.: (212) 808-7800
Fax: (212) 808-7897
Attorneys for Defendant
TO: Y. David Scharf
Latisha Thompson
Joaquin Ezcurra
Amber R. Will
Morrison Cohen LLP
909 Third Avenue
New York, New York 10022
Tel.: (212) 735-8600
Attorneys for Plaintiff
IS Chrystie Management LLC
Devonwood Corporation LLC previously dismissed from this action
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK: COMMERCIAL DIVISION
IS CHRYSTIE MANAGEMENT LLC and
DEVONWOOD CORPORATION, LLC,
Plaintiffs, Index No.: 655374/2018
(Motion Seq. No. 004)
- against -
ADP, LLC,
Defendant.
AFFIRMATION OF RANDALL L. MORRISON, JR.
Randall L. Morrison, Jr., an attorney duly admitted to practice law in the State of New
York, affirms under penalty of perjury, and in accordance with CPLR 2106, as follows:
1. I am an associate with the law firm of Kelley Drye & Warren LLP. We represent
defendant ADP, Inc. (“ADP”), formerly known as ADP, LLC.
2. I respectfully submit this affirmation in support of ADP’s motion for partial
summary judgment.
3. Attached hereto as Exhibit A is a true and correct copy of the Amended
Complaint filed in this action by plaintiff IS Chrystie Management LLC (“IS Chrystie”). (Doc.
No. 39).
4. Attached hereto as Exhibit B is a true and correct copy of the transcript of the
deposition of Joan (O’Connor) Farooqi in this action (“Farooqi Deposition”).
5. Attached hereto as Exhibit C is a true and correct copy of IS Chrystie’s
Objections and Responses to ADP’s Second Set of Interrogatories. Therein, in response to
ADP’s Interrogatory Nos. 15 and 16, IS Chrystie identified Ms. Farooqi as the only person with
knowledge of facts concerning each component of its alleged damages in this case.
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6. Attached hereto as Exhibit D is a true and correct copy of ADP’s Commercial
Division Rule 11-f Deposition Notice served upon IS Chrystie. Therein, at Topic Nos. 13, 14
and 20, ADP requested that IS Chrystie produce a witness designated to testify on its behalf with
respect to the “components of IS Chrystie’s alleged damages”; the “calculation of, and
documentary support for, each component” of those alleged damages; and the factual basis for IS
Chrystie’s assertion that it “has been damaged in an amount … estimated to be at least
$1,000,000” as a result of ADP’s alleged breaching conduct.
7. In response to ADP’s Rule 11-f Deposition Notice, IS Chrystie produced Ms.
Farooqi as the witness designated to testify on its behalf with respect to Topic Nos. 13, 14 and
20.
8. Attached hereto as Exhibit E is a true and correct copy of ADP’s Amended
Commercial Division Rule 11-f Deposition Notice served upon IS Chrystie. Therein, at Topic
Nos. 1, 5, 6 and 20, ADP requested that IS Chrystie produce a witness designated to testify on its
behalf with respect to “IS Chrystie’s understanding of the respective rights and obligations” of
the parties under the controlling contract; the “operation of Public Kitchen”; the “operation of
Public Hotel”; and “the corporate structure of IS Chrystie, including the identity of its principals,
members and/or managers.”
9. Attached hereto as Exhibit F is a true and correct copy of IS Chrystie’s responses
and objections to ADP’s Amended Rule 11-f Deposition Notice. Therein, IS Chrystie designated
Ms. Farooqi as the witness designated to testify on its behalf with respect to Topic Nos. 1, 5, 6
and 20.
10. I have reviewed the website of the Ian Schrager Company available at:
https://www.ianschragercompany.com. Attached hereto collectively as Exhibit G are excerpts
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from that website concerning Ian Schrager’s experience as a hotelier and real estate developer.
On behalf of ADP, I respectfully request that the Court take judicial notice of these documents.
See Guide to NY Evidence Rule 2.01(1), Judicial Notice of Facts,
https://www.nycourts.gov/judges/evidence/2-notice/2.01_judicial%20notice%20of%20facts.pdf
(facts that may be judicially noticed include “facts that are capable of accurate and ready
determination by resort to sources whose accuracy cannot reasonably be questioned”); Wells
Fargo Bank, N.A. v. Wrights Mill Holdings, LLC, 127 F. Supp. 3d 157, 166-67 (S.D.N.Y. 2015)
(court takes judicial notice of information reflected on party’s website); Doron Precision Sys.,
Inc. v. FAAC, Inc., 423 F. Supp. 2d 173, 178-179 n. 8 (S.D.N.Y. 2006) (same).
11. I have reviewed Public Hotel’s website available at: https://publichotels.com/eat-
and-drink. Attached hereto collectively as Exhibit H are excerpts from that website, as of May
24, 2021, reflecting that the food and beverage venues at Public Hotel include The Roof, Public
Diego, Public Lobby Bar and Public Louis. On behalf of ADP, I respectfully request that the
Court take judicial notice of these documents. See Wells Fargo Bank, 127 F. Supp. 3d at 166-
67; Doron Precision Sys., 423 F. Supp. 2d at 178-179 n. 8.
12. On June 1, 2021, The New York Times published an article headlined “Star Chef
From Peru to Head Public Hotel Restaurants.” The article, a true and correct copy of which is
attached hereto as Exhibit I, states that “global hotelier Ian Schrager has completely made over
the restaurants” at Public Hotel and that a new restaurant has replaced Public Kitchen as the
“signature restaurant” at Public Hotel. On behalf of ADP, I respectfully request that the Court
take judicial notice of this document. See In re SAIC Inc. Derivative Litig., 948 F. Supp. 2d 366,
386 n. 8 (S.D.N.Y. 2013) (court takes judicial notice of newspaper article).
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13. I note that Public Kitchen is no longer mentioned on Public Hotel’s website.
Attached hereto as Exhibit J are excerpts from that website, as of June 4, 2021. Instead, the
website references Popular, the new restaurant featured in the article attached as Exhibit I. On
June 4, 2021, I called the telephone number for Public Kitchen and the voicemail now indicates
that the number belongs to Popular. Based on the above, all indications are that Public Kitchen
has been closed. On behalf of ADP, I respectfully request that the Court take judicial notice of
the website excerpts attached as Exhibit J. See Wells Fargo Bank, 127 F. Supp. 3d at 166-67;
Doron Precision Sys., 423 F. Supp. 2d at 178-179 n. 8.
14. Attached hereto as Exhibit K is a true and correct copy of the Master Services
Agreement executed by and between ADP and IS Chrystie, and marked as Exhibit C at the
Farooqi Deposition.
15. Attached hereto as Exhibit L is a true and correct copy of a December 19, 2017
letter from the law firm of Fitapelli & Schaffer, LLP (“Fitapelli & Schaffer”) to Public Kitchen
c/o Fox Rothschild LLP (“Fox Rothschild”). IS Chrystie produced this document during
discovery in this case.
16. Attached hereto as Exhibit M is a true and correct copy of ADP’s First Set of
Requests for Admission to IS Chrystie dated May 7, 2021.
17. Attached hereto as Exhibit N is a true and correct copy of IS Chrystie’s
Responses and Objections to ADP’s First Set of Requests for Admission dated May 27, 2021.
18. Attached hereto as Exhibit O is a true and correct copy of a January 10, 2018
tolling agreement executed by Fitapelli & Schaffer and Fox Rothschild concerning the claims
identified in Fitapelli & Schaffer’s letter of December 19, 2017. IS Chrystie produced this
document during discovery in this case.
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19. Attached hereto as Exhibit P is a true and correct copy of a memorandum of
understanding by and between Fitapelli & Schaffer and Fox Rothschild concerning the
settlement of the claims identified in Fitapelli & Schaffer’s letter of December 19, 2017. IS
Chrystie produced this document during discovery in this case.
20. Attached hereto as Exhibit Q is a true and correct copy of the Settlement
Agreement and Release between IS Chrystie and Fitapelli & Schaffer’s client, Dinara
Zhanpiessova. (Doc. No. 6 in Public Kitchen Class Action, as defined below). On behalf of
ADP, I respectfully request that the Court take judicial notice of this publicly-filed document.
See Spencer Stuart Human Resources Consultancy (Shanghai) Co. v. American Indus.
Acquisition Corp., 2017 WL 4570791, at *1 (S.D.N.Y. Oct. 12, 2017) (court takes judicial notice
of publicly-filed documents in U.S. Bankruptcy Court proceedings); MJD Constr., Inc. v.
Woodstock Lawn & Home Maint., 293 A.D.2d 516, 517 (2d Dep’t 2002) (court entitled to take
judicial notice of the record in a related bankruptcy proceeding); People ex rel. Rosenberg v.
Rosenberg, 160 A.D.2d 327, 329 (1st Dep’t 1990) (court may take judicial notice of the ruling of
a court in another jurisdiction).
21. Attached hereto as Exhibit R is a true and correct copy of the Class Action
Complaint filed in the litigation captioned Dinara Zhanpiessova v. Devonwood Corporation,
LLC, Index No. 516028/2018 (N.Y. Supreme Kings Co.) (the “Public Kitchen Class Action”).
(Doc. No. 1). On behalf of ADP, I respectfully request that the Court take judicial notice of this
publicly-filed document. See Spencer Stuart, 2017 WL 4570791, at *1; MJD Constr., 293
A.D.2d at 517; Rosenberg, 160 A.D.2d at 329.
22. Attached collectively hereto as Exhibit S are true and correct copies of the
unopposed motion for preliminary approval of the settlement in the Public Kitchen Class Action
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with supporting brief. (Doc. Nos. 3 and 4). On behalf of ADP, I respectfully request that the
Court take judicial notice of these publicly-filed documents. See Spencer Stuart, 2017 WL
4570791, at *1; MJD Constr., 293 A.D.2d at 517; Rosenberg, 160 A.D.2d at 329.
23. Attached hereto as Exhibit T is a true and correct copy of the proposed Notice of
Class Action Lawsuit Settlement and Fairness Hearing in the Public Kitchen Class Action. (Doc.
No. ). On behalf of ADP, I respectfully request that the Court take judicial notice of this
publicly-filed document. See Spencer Stuart, 2017 WL 4570791, at *1; MJD Constr., 293
A.D.2d at 517; Rosenberg, 160 A.D.2d at 329.
24. Attached hereto as Exhibit U is a true and correct copy of the November 26, 2018
order granting preliminary approval of the settlement in the Public Kitchen Class Action. (Doc.
No. 10). On behalf of ADP, I respectfully request that the Court take judicial notice of this
publicly-filed document. See Spencer Stuart, 2017 WL 4570791, at *1; MJD Constr., 293
A.D.2d at 517; Rosenberg, 160 A.D.2d at 329.
25. Attached collectively hereto as Exhibit V are true and correct copies of the
unopposed motion for final approval of the settlement in the Public Kitchen Class Action with
supporting affirmation. (Doc. Nos. 12 and 13). On behalf of ADP, I respectfully request that the
Court take judicial notice of these publicly-filed documents. See Spencer Stuart, 2017 WL
4570791, at *1; MJD Constr., 293 A.D.2d at 517; Rosenberg, 160 A.D.2d at 329.
26. Attached hereto as Exhibit W is a true and correct copy of the March 26, 2019
order granting final approval of the settlement in the Public Kitchen Class Action. (Doc. No.
21). On behalf of ADP, I respectfully request that the Court take judicial notice of this publicly-
filed document. See Spencer Stuart, 2017 WL 4570791, at *1; MJD Constr., 293 A.D.2d at 517;
Rosenberg, 160 A.D.2d at 329.
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27. Attached hereto as Exhibit X is a true and correct copy of a January 25, 2019
letter from Fitapelli & Schaffer to Public Hotel c/o Fox Rothschild concerning claims related to
employees assigned to certain food and beverage venues in the Public Hotel other than Public
Kitchen, including The Roof, Public Arts, Public Diego, Public Lobby and Lobby Bar, and
Public Louis. IS Chrystie produced this document during discovery in this case.
28. Attached hereto as Exhibit Y is a true and correct copy of the April 10, 2019
tolling agreement executed by Fitapelli & Schaffer and Fox Rothschild concerning the claims
identified in Fitapelli & Schaffer’s letter of January 25, 2019. IS Chrystie produced this
document during discovery in this case.
29. IS Chrystie commenced this action on October 29, 2018.
30. The Amended Complaint in this action is focused on ADP's services with respect
to IS Chrystie employees assigned to Public Kitchen.
31. Public Kitchen is referenced in the Amended Complaint fifty-five times.
32. Public Hotel is referenced in the Amended Complaint once in describing the
physical location of Public Kitchen.
33. The Roof, Public Arts, Public Diego, Public Lobby and Lobby Bar, and Public
Louis are not referenced in the Amended Complaint.
34. The Amended Complaint was filed nearly three months before Public Hotel’s
receipt of Fitapelli & Schaffer’s letter of January 25, 2019 relating to tipped employees at The
Roof, Public Arts, Public Diego, Public Lobby and Lobby Bar, and Public Louis.
35. IS Chrystie has neither sought nor obtained leave to amend or supplement the
Amended Complaint.
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36. Attached hereto as Exhibit Z is a true and correct copy of the transcript of the
deposition of Scott Englund of New York Hospitality LLC (“New York Hospitality”) in this
action.
37. In response to an amended deposition subpoena ADP served on New York
Hospitality, New York Hospitality produced Mr. Englund as its corporate representative
designated to testify on its behalf pursuant to Commercial Division Rule 11-f. Attached hereto
as Exhibit AA is a true and correct copy of ADP’s amended deposition subpoena served on New
York Hospitality.
38. Mr. Englund was designated to testify concerning, among other things, the
services New York Hospitality provided with respect to Public Hotel.
Dated: New York, New York
June 4, 2021 Randall L. Morrison, Jr.
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INDEX TO EXHIBITS
Exhibit A: Amended Complaint
Exhibit B: Transcript of the Deposition of Joan (O’Connor) Farooqi
Exhibit C: IS Chrystie’s Objections and Responses to
ADP’s Second Set of Interrogatories
Exhibit D: ADP’s Commercial Division Rule 11-f
Deposition Notice to IS Chrystie
Exhibit E: ADP’s Amended Commercial Division Rule 11-f
Deposition Notice to IS Chrystie
Exhibit F: IS Chrystie’s Responses and Objections to ADP’s Amended
Commercial Division Rule 11-f Deposition Notice
Exhibit G: Excerpts from the website of Ian Schrager Company
Exhibit H: Excerpts from the website of Public Hotel as of May 24, 2021
Exhibit I June 1, 2021 New York Times article headlined “Star Chef From Peru to
Head Public Hotel Restaurants”
Exhibit J: Excerpts from the website of Public Hotel as of June 4, 2021
Exhibit K Master Services Agreement between ADP and IS Chrystie
Exhibit L: Letter of December 19, 2017 from Fitapelli & Schaffer to Public Kitchen
Exhibit M: ADP’s First Set of Requests for Admission to ISC
Exhibit N: IS Chrystie’s Responses and Objections to
ADP’s First Set of Requests for Admission
Exhibit O: Tolling Agreement dated January 10, 2018 between Fitapelli & Schaffer
and Fox Rothschild in the Public Kitchen Class Action
Exhibit P: Memorandum of Understanding between Fitapelli & Schaffer and
Fox Rothschild in the Public Kitchen Class Action
Exhibit Q: Settlement Agreement and Release dated April 30, 2018 in the
Public Kitchen Class Action
Exhibit R: Class Action Complaint in the Public Kitchen Class Action
Exhibit S: Unopposed motion (with supporting brief) for preliminary approval of
the Public Kitchen Class Action settlement
Exhibit T: Proposed Notice of Class Action Lawsuit Settlement
and Fairness Hearing in the Public Kitchen Class Action
Exhibit U: November 26, 2018 order granting preliminary approval to the
Public Kitchen Class Action settlement
Exhibit V: Unopposed motion (with supporting brief) for final approval of the
Public Kitchen Class Action settlement
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Exhibit W: March 26, 2019 order granting final approval of the
Public Kitchen Class Action settlement
Exhibit X: Letter of January 25, 2019 from Fitapelli & Schaffer to Public Hotel
Exhibit Y: Tolling Agreement dated April 10, 2019 between Fitapelli & Schaffer
and Fox Rothschild re Public Hotel
Exhibit Z: Transcript of the Deposition of Scott Englund
Exhibit AA: ADP’s Amended Deposition Subpoena to New York Hospitality LLC
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EXHIBIT A
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SUPREME COURT OF THE STATE OF NEW YORK
COUNTY OF NEW YORK
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:
IS CHRYSTIE MANAGEMENT LLC, DEVENWOOD : Index No. 655374/2018
CORPORATION LLC and DEVONWOOD :
CORPORATION, LLC, :
:
Plaintiffs, :
: AMENDED
-against- : COMPLAINT
:
ADP, LLC :
:
Defendant. :
:
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Plaintiffs IS Chrystie Management LLC (“IS Chrystie”) and Devonwood Corporation,
LLC (“Devonwood,” together with IS Chrystie, “Plaintiffs”), by and through their undersigned
counsel, Morrison Cohen LLP, as and for their Amended Complaint against Defendant ADP,
LLC (“Defendant” or “ADP”), allege as follows:
INTRODUCTION
1. Plaintiff Devonwood operates and controls the popular, upscale restaurant
Public Kitchen. Public Kitchen, known for its innovative cuisine prepared by a world-renowned
chef, employs dozens of tipped employees such as servers, bartenders and the like. Plaintiff IS
Chrystie, in its role as Public Kitchen’s manager, enters into service contracts on behalf of Public
Kitchen to ensure that Public Kitchen’s essential services are met, including those provided to its
employees.
2. In 2016, IS Chrystie entered into an agreement for ADP to provide critical
payroll services for Public Kitchen’s employees. Pursuant to the agreement, ADP was to, among
other things, process the payroll for Public Kitchen’s employees, deliver pay checks and related
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reports to Public Kitchen and design a system to carry out those payroll services in compliance
with applicable legal and regulatory requirements.
3. At the time it entered into the agreement, ADP not only represented that it
would provide payroll services of the highest quality, but specifically contracted to “be
responsible for the accuracy of” the services to “assist [Public Kitchen] in complying with its
legal and regulatory requirements.” Contrary to its representations, the payroll services provided
by ADP were designed in an improper and haphazard manner, with a reckless and wanton
disregard for the effect on Public Kitchen and its employees and otherwise failed to assist Public
Kitchen in complying with existing law. Among other things, ADP failed to properly process
the payroll of Public Kitchen’s employees and ultimately provided pay checks that failed to
include information required under New York law.
4. As a result of ADP’s willful and reckless failure to perform the payroll
services in conformance with applicable law, Plaintiffs are facing significant liability—all of
which arise out of payroll statements improperly prepared and processed by ADP.
5. Plaintiffs have reached out to ADP on numerous occasions seeking
recompense for ADP’s failure to live up to its representations and to provide the contracted
services in a reasonable manner, to no avail. ADP has both refused to return the money it was
paid for its services and to indemnify Plaintiffs for the harm caused by ADP’s willful and
reckless failure to perform the payroll services. As such, Plaintiffs are now compelled to bring
this lawsuit.
6. Upon information and belief, ADP’s willful failure to perform payroll
services in conformance with applicable law is part of a pattern with respect to ADP’s treatment
of its customers that has required other ADP customers and/or their employees to sue ADP.
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Plaintiffs have now been forced to join that line of ADP customers who have been wronged by
ADP’s reckless, grossly negligent service. Plaintiffs should be compensated for ADP’s
misconduct.
PARTIES
7. IS Chrystie is a Delaware limited liability company with its principal place
of business located at 215 Chrystie Street, New York, New York 10002.
8. Devonwood is a Delaware limited liability company with its principal
place of business located at 215 Chrystie Street, New York, New York 10002.
9. Defendant is a Delaware limited liability company with its principal place
of business located at One ADP Boulevard, Roseland, New Jersey 07068.
JURISDICTION AND VENUE
10. Jurisdiction is proper in this Court under New York Civil Practice Law
and Rules (“CPLR”) Sections 301 and 302 because Plaintiff is located and transacts business in
New York, and Defendant transacts business and supplies services in New York and has
committed a tortious act within New York.
11. Venue is proper in New York County pursuant to CPLR Section 503
because Plaintiff’s principal place of business is located in New York County.
FACTUAL ALLEGATIONS
Background of Public Kitchen
12. Public Kitchen is a restaurant located in lower Manhattan that opened in or
about June 2017.
13. Public Kitchen is a world-renowned restaurant, located within New York’s
Public Hotel. Its menu focuses on sustainable seafood, organic poultry and grass-fed meats, as
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well as the use of fresh and organic fruits and vegetables.
14. As is typical for an upscale restaurant, Public Kitchen’s management
employs numerous staff including servers, server assistants, food runners, bartenders, barbacks
and other tipped employees.
15. In order to make sure each of Public Kitchen’s employees would be
properly compensated in full compliance with all applicable federal and state laws, Plaintiffs
began the search for a company to provide payroll processing services for their employees even
before the restaurant’s doors opened.
16. In or about early 2016, Public Kitchen entered into discussions with ADP,