A Florida hotel franchisee named in a sex trafficking lawsuit was granted a motion to dismiss by a New Jersey court, a significant favorable ruling secured by Goldberg Segalla under which the case will now be transferred to a Florida venue thus enabling our client to defend itself individually rather than as part of a sweeping mass tort.

The litigation is tied to a nationwide string of lawsuits filed by a handful of firms which claim hotels where prostitution occurs can be sued by the alleged victims of trafficking.

In this case, Goldberg Segalla represented a local Orlando airport hotel which is a franchise of a national hotel chain headquartered in New Jersey. The plaintiff sued the national franchisor and our client in New Jersey District Court. The plaintiff also has filed more than 15 similar cases against other franchisees and the same New Jersey franchisor, with the aim of having the suits consolidated and managed as a mass tort.

Goldberg Segalla partner David S. Osterman served as lead attorney in the case and was assisted by partner Bryan P. Regan. The team immediately moved to dismiss the claim, arguing the New Jersey court lacked personal jurisdiction against our client.

Although the court has previously denied several similar motions by other out-of-state franchisees, it agreed with the argument put forth by Goldberg Segalla and in granting our motion transferred the case to the Middle District of Orlando, Fla. which is expected to be a much more favorable venue to our client.

The court’s decision marked one of the first rulings of which we are aware that favored an out-of-state franchisee in this situation. Our client was especially pleased given that the plaintiff was likely seeking an award of seven figures to resolve the matter.