One of the owners of the doughnut shop says there are ‘irreconcilable’ differences between her and her business partner.
Just four months after the Doughdrop Inn sold its first doughnut in July, the limited liability corporation that owns the business appears to be on the verge of crumbling.
Doughdrop Inn LLC, which operates a doughnut shop at 1529 W. 38th St., is owned equally by Lisa Farbo, of Erie, and Mark Ruby, of Oil City.
In a lawsuit filed this past week in Erie County Common Pleas Court, Farbo says there are “irreconcilable” differences between her and her partner and seeks the dissolution or the breakup of the LLC.
Among other things, Farbo claims:
“Defendant Ruby refuses to respond to texts, emails or telephone calls from Ms. Farbo regarding Doughdrop Inn LLC.”
“Additional capital is required to satisfy outstanding sales tax obligations in the amount of $2,800, but defendant Ruby refuses to provide additional capital, while Ms. Farbo is willing to do so on an equal basis with defendant Ruby.”
“There is an irreconcilable difference between the members as to the marketing, management and operations of the Doughdrop Inn LLC.”
Farbo’s lawsuit goes on to detail a series of bills totaling more than $13,000 owed to creditors.
The goal of the lawsuit isn’t to close the business but to end the business arrangement, said John Mizner, an Erie lawyer who represents Farbo.
“Her goal would be to keep the business, run it without the involvement of Mr. Ruby,” Mizner said. “There is such great potential there. It’s really being held back by Mr. Ruby.”
Asked about the unpaid sales tax obligations, Mizner said his client is operating within a legal grace period.
“Ms. Farbo is going to make sure any taxes that are owed are paid,” he said.
In the meantime, the business remains open as usual, Mizner said.
Although the two business partners are not communicating, Mizner said Ruby continues to work at the doughnut shop.
A message left for Ruby was not returned Monday afternoon.
Original article by: Jim Martin can be reached at 870-1668 or by email. Follow him on Twitter