Millionaire Tom Knox sues Table 31 for ending 50 percent discount
Millionaire and 2015 mayoral hopeful Tom Knox sued Table 31 restaurant in the Comcast Center for allegedly ending his 50 percent food and drinks discount.
Philadelphia 2015 mayoral hopeful and millionaire Tom Knox has sued Table 31 restaurant in the Comcast Center for allegedly taking an axe to Knox's 50 percent discount, as first reported by The Philly Post.
A breach of contract suit filedThursday in Philadelphia's Court of Common Pleas on behalf of Knox and his wife Linda Knox names 1701 JFK Restaurant, LLC, as well as owner Chris Scarduzio.
According to the complaint, Knox in 2008 became a partner in the "redefined steakhouse bistro," agreeing to invest $250,000 for partnership shares "as well as in exchange for the guaranteed 50 percent discount on all food and beverage purchases."
Knox claims the discount was "material" to his agreement.
Table 31 allegedly discontinued the half-price investor mealstwo years later "without explanation" and didn't reinstate it despite Knox's "repeated requests."
Due to a lack of working capital, an amendment to the Table 31 partnership was proposed in January 2011 to include more investors and convert some advances into capital contributions, according to the suit.
The complaint states Knox refused to sign the amended partnership agreement without assurances the discount would again be honored
Partnership CFO Edward Lack allegedly wrote to the Knoxes the same month "to assure them that the 50 percent discount would be applied to all 'food and bev' charges going forward."
But the 50 percent discount was allegedly again discontinued in 2012 "without explanation or basis."
The Knoxes are seeking a court order dissolving their partnership with the restaurant, along with unspecified economic damages.
"The expense of operating the partnership including, inter alia, the cost of the guaranteed payments to Scarduzio and the ongoing rental expenses, are so great that the partnership cannot operate at a net gain in the future," the complaint concludes.
It further states Table 31 is disqualified under the U.S. Security and Exchange Commission's rules from making offerings to raise additional capital in the future.
Knox is asking for full access to the partnership's books and financial records to determine "the extent of the mismanagement" as far as Table 31's handling of its assets and compliance with SEC regulations.