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LOUISIANA RECORD

Friday, September 27, 2024

Thomas Nieto alleges improper removal against Main Squeeze Juice Holdings

State Court
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In a legal battle that has captured the attention of the business community, Thomas Nieto has filed an emergency writ against Jennifer Dodd and Main Squeeze Juice Holdings, LLC. The complaint was lodged in the Civil District Court for Orleans Parish on March 25, 2024, by Mr. Nieto, who is challenging his removal as Chief Executive Officer from the juice and smoothie franchise.

The conflict began when Mr. Nieto, an owner and Board Manager of Main Squeeze Juice Holdings, LLC, was ousted from his position as CEO on March 20, 2024. He quickly responded by filing a petition seeking a temporary restraining order and both preliminary and permanent injunctions. In his complaint, Mr. Nieto alleges that his removal was improper and violated the company's operating agreement established on June 6, 2022. The defendants named in this initial filing included CCG MSJC, LLC; Conscious Capital Growth, LLC; Heather Elrod; Christo Demetriades; and Main Squeeze Juice Holdings, LLC.

On April 1, 2024, the defendants removed the case to federal court but it was remanded back to state court on May 16, 2024. During this period of jurisdictional limbo, Mr. Nieto also filed a second petition for a writ of quo warranto on April 30, 2024. This second filing sought to declare that Ms. Dodd had no legal right to assume the role of CEO and accused Main Squeeze Juice Holdings of exceeding its powers by employing her.

Jennifer Dodd and Main Squeeze Juice Holdings countered with an exception of lis pendens on May 8, arguing that Mr. Nieto's second lawsuit was redundant as it raised issues already addressed in his first filing. However, Mr. Nieto opposed this exception by pointing out that Ms. Dodd was not named in the first proceeding.

On May 16, Judge Kern A. Reese denied the exception of lis pendens but set a hearing for the quo warranto for the following day at 11:00 AM. In response to this ruling, Jennifer Dodd and Main Squeeze Juice Holdings sought emergency supervisory review from the Court of Appeal Fourth Circuit State of Louisiana.

The appellate court reviewed whether all three elements required for lis pendens were satisfied: two or more suits pending; involving the same transaction or occurrence; and involving the same parties in similar capacities. While there was no dispute about the first two elements—both lawsuits centered around Mr. Nieto's removal as CEO—the third element required further scrutiny since Ms. Dodd was not initially named in both suits.

The appellate court found that Ms. Dodd’s exclusion from the first suit did not defeat an exception of lis pendens because she appeared in her capacity as CEO in both proceedings—a critical factor given that both lawsuits revolved around her appointment and Mr. Nieto’s removal.

Ultimately, Judges Paula A. Brown, Tiffany Gautier Chase (who authored the opinion), and Dale N. Atkins ruled in favor of granting the writ requested by Jennifer Dodd and Main Squeeze Juice Holdings LLC., reversing Judge Reese's decision denying their exception of lis pendens and lifting any stay orders previously issued.

This ruling effectively consolidates all claims into one proceeding under Civil District Court Division L., ensuring judicial efficiency while addressing complex corporate governance issues within Main Squeeze Juice Holdings LLC.

Representing Jennifer Dodd and Main Squeeze Juice Holdings are attorneys Rebecca Sha., David Korn., Clerc Cooper from Phelps Dunbar LLP., while Martin L Morgan represents Thomas Nieto.

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