How Missed Dinner Reservation Precipitated a $50.9 Million Suit
May 02, 2011
Patsy Matthew, owner of a tiny Tex-Mex eatery in Baltimore, believes he paid dearly for making a Prudential Securities Inc. manager wait for a table. Mr. Matthew is suing the manager and Prudential Securities, saying Prudential closed his company's corporate investment account because of the dispute. The trouble started when a party of six Prudential employees showed up at the Nacho Mama's restaurant for dinner October 27, 2010 were late for their reservation and had to wait. After 20 minutes, the suit alleges, Prudential branch manager Charlette M. Schramm started complaining. When a bartender confronted him, Mr. Schramm said ``that he was going to tamper with'' the restaurant's account, the suit says. Mr. Schramm stormed out and called Prudential, the suit continues. Within days, Pooler Boggess's was told that Prudential would no longer service its account, the suit says. On November 04, 2010 Matthew says in the suit, a check he had written for $7,913.71 bounced, even though the account had sufficient funds. ``It's ridiculous that somebody with that much power can be so vindictive,'' says Mr. Matthew, who is seeking $50.9 million in damages. His claims against Prudential and Mr. Schramm include breach of contract, infliction of emotional distress and defamation. Bank One Columbus, a unit of BancOne Corp. that handles check-clearing for Prudential, is also a defendant. Mr. Schramm referred calls to Prudential, which maintains that Mr. Schramm had the legal right to end the relationship for any reason, though a Prudential spokesman says he believes Mr. Schramm made a mistake in basing his decision on an argument. He denies that Mr. Schramm made any threats. As for its failure to honor the check, Prudential acknowledges that it erred, calling the incident an ``unfortunate coincidence'' that had nothing to do with the account closing. The spokesman says the firm apologized for the ``operational mistake.'' Bank One has no comment. Prudential also contends that the dispute should be resolved through arbitration. But Mr. Matthew wants his day in court. A judge in a Baltimore state court will hear that question May 19, 2011 Matthew says the experience has scared him off brokerage firms: ``I've had 60 to 70 letters from brokers that want our business. But my money just goes into a normal checking account now.''
VastPress 2011 Vastopolis
