Complaint — Plaintiffs v. U.S. Small Business Administration, No. 2:22-cv-10377 (E.D. Mich.)

Summary

A complaint for declaratory relief and money damages filed February 21, 2022 as ECF No. 1 in Case 2:22-cv-10377, U.S. District Court for the Eastern District of Michigan, by three Michigan LLCs operating the Bobcat Bonnie's restaurants against the Small Business Administration. The plaintiffs say they applied to the Restaurant Revitalization Fund, the $28,600,000,000.00 appropriation in the American Rescue Plan Act of 2021 under 15 USC §9009c, received unconditional written approval and repeated assurances that the money was forthcoming, and never got it; they spent more than $75,000.00 on equipment, supplies and wages. Count I pleads equitable estoppel and Count II declaratory relief under 5 USC §706, asking damages in the exact amount of the promised monies plus costs and fees. The 5-page filing is signed by Nicole M. McCarthy of Grover Lewis Johnson.

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Grover
Lewis
Johnson
UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION
* * * * * *

1800 MICHIGAN AVENUE LLC; 240 W
 9 MILE LLC; AND 200 W MICHIGAN
AVENUE, LLC,

Case No.:

Hon.

Plaintiffs,
v

THE UNITED STATES SMALL BUSINESS
ADMINISTRATION, and ISABELLA CASILLAS
 GUZMAN, in her Official capacity as administrator
 of the Small Business Administration,

Defendants.

Nicole M. McCarthy (P74913)
GROVER LEWIS JOHNSON
Attorneys for Plaintiff
2800 Livernois, Suite 130
Troy, MI  48083
248-509-7063

COMPLAINT FOR DECLARATORY RELIEF
AND MONEY DAMAGES

NOW COME Plaintiffs, 1800 Michigan Avenue LLC; 240 W  9 Mile, LLC; and 200 W
Michigan Avenue, LLC, by and through its attorneys, GROVER LEWIS JOHNSON and for its
Complaint for Money Damages and Declaratory Relief and against Defendant, ISABELLA
CASILLAS GUZMAN, in her Official capacity as administrator of the Small Business
Administration, and the UNITED STATES SMALL BUSINESS ADMINISTRATION, states as
follows:
THE PARTIES
Case 2:22-cv-10377-MAG-APP   ECF No. 1, PageID.1   Filed 02/21/22   Page 1 of 5

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Grover
Lewis
Johnson
1. 1800 Michigan Avenue LLC; 240 W  9 Mile, LLC; and 200 W Michigan Avenue, LLC
(hereinafter referred to as “Plaintiffs”) are Michigan corporations, licensed to and
conducting business in the State of Michigan and operating a chain of restaurants doing
business as Bobcat Bonnie’s. Their principle place of business is in the County of Oakland,
State of Michigan.
2. The Small Business Administration (hereinafter referred to as “SBA”) is an agency of the
federal government headquartered in Washington, District of Columbia.
3. Isabella Casillas Guzman is the administrator of the Small Business Administration and on
information and belief, is based in the Washington, District of Columbia.
JURISDICTION & VENUE
4. Plaintiffs seek damages and declaratory relief both of which are within this Court’s
jurisdiction.
5. Defendant SBA is an agency of the federal government.
6. Ms. Guzman is an agent of the federal government in her capacity as the administrator of
the SBA.
7. Jurisdiction is proper 15 USC §9009c where Plaintiff seeks monetary damages by way of
monies promised by Defendants from the Restaurant Revitalization Fund.
8. Jurisdiction is proper under 5 USC §706 where Plaintiff seek to compel the Small Business
Administration’s action unlawfully withheld or unreasonable delayed.
9. Venue is proper pursuant to 28 USC §1391(a) because all or a substantial part of the
transactions at issue took place within the Eastern District of Michigan.
FACTUAL BACKGROUND
10. Plaintiffs reallege and incorporate by reference the allegations contained in paragraphs 1-
9 above.
Case 2:22-cv-10377-MAG-APP   ECF No. 1, PageID.2   Filed 02/21/22   Page 2 of 5

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Lewis
Johnson
11. On March 11, 2021, the President signed the American Rescue Plan Act of 2021 (ARPA).
H.R. 1319, 117th Cong. (2021). This included appropriations of $28,600,000,000.00 for a
Restaurant Revitalization Fund (the “Fund”) to be administered by the Administrator of
the Small Business Administration in order to disburse monies to restaurants suffering
pandemic-related revenue loss. 15 USC §9009c.
12. The purpose of the Fund is to provide emergency relief for eligible restaurants, bars, and
other qualifying businesses impacted by COVID-19.
13. Plaintiffs applied for and were granted monies from the Fund.
14. Plaintiffs received unconditional written confirmation of the approval of monies from
Defendants.
15. When funding was not received, Plaintiffs’ representative received both written and oral
confirmation that the monies were forthcoming.
16. Defendants have not dispersed monies from the Fund in violation of 15 USC §9009c.
COUNT I
EQUITABLE ESTOPPEL

17. Plaintiffs reallege and reincorporate by reference the allegations contained in paragraph 1-
16 above.
18. After Plaintiffs’ application was approved, Defendants made written and oral statements
to Plaintiffs confirming the monies were forthcoming from the Fund, on multiple
occasions, over a period of weeks and months.
19. Plaintiffs did then rely on the approvals and use the monies for the intended purpose
including but not limited to the purchase of new equipment and supplies, and employee
wages, in an amount exceeding $75,000.00.
20. Plaintiffs had no knowledge and should not have known that Defendants’ statements were
false.
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Lewis
Johnson
21. Defendants inducement did result in monetary damages to Plaintiffs which previously
relied on multiple assurances the monies were forthcoming.
22. An actual controversy exists between Plaintiffs and Defendants.
23. Defendants’ unlawful withholding and delay of promised monies is contrary to 15 USC
§9009c.
24. The SBA having already approved the monies for Plaintiffs and made several promises
should be estopped from claiming now that Plaintiffs is otherwise not entitled to the
monies.
COUNT II
DECLARATORY RELIEF

25. Plaintiffs reallege and reincorporate by reference the allegations contained in paragraph 1-
24 above.
26. Defendants are in possession of monies promised to Plaintiffs pursuant to the Restaurant
Revitalization Fund, administered by Defendants. 15 USC §9009c.
27. This court has the power to enforce Defendants’ obligation to disperse the monies as
promised. 5 USC §706.
WHEREFORE, Plaintiffs respectfully requests that this Honorable Court:
a. award the requested declaratory relief,
b. award damages in the exact amount of the promised monies, costs and attorney fees,
c. award all other relief the Court may deem just, proper or equitable.

Respectfully Submitted,
GROVER LEWIS JOHNSON

Dated: September 3, 2021
By:  /s/ Nicole M. McCarthy________
Nicole M. McCarthy
Michigan Bar No.: (P74913)
Grover Lewis Johnson
Case 2:22-cv-10377-MAG-APP   ECF No. 1, PageID.4   Filed 02/21/22   Page 4 of 5

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Grover
Lewis
Johnson

2800 Livernois, Bldg. D, Suite 130
Troy, Michigan 48083
(248) 509-7063 / (248) 817-5643 fax
nmccarthy@groverlewisjohnson.com

Case 2:22-cv-10377-MAG-APP   ECF No. 1, PageID.5   Filed 02/21/22   Page 5 of 5

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