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IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION Ryan Badii Plaintiff, vs. Rick’s Cabaret International, Inc; XTC Cabaret (Dallas), Inc.; XTC Cabaret, Inc., and XTC Cabaret Defendants. § § § § § § § § § § § § § § Case No. _____________ Judge ________________ COMPLAINT 1. Plaintiff brings this civil claim pursuant to Title VII of the Civil Rights Act of 1964 which makes it an unlawful employment practice for an employer to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment because of such individual’s race, color, religion, sex, or national origin. Plaintiff was subject to severe and pervasive discriminatory treatment on the basis of race, color, religion, and national origin. As a consequence of the discriminatory treatment, Plaintiff was subject to reduced compensation, less favorable work assignment, demotion, and retaliation. Plaintiff also brings a common law claim for wrongful discharge as Plaintiff was terminated for the sole reason he refused to perform an illegal act. Plaintiff seeks all available damages, interest, costs, and attorneys’ fees for the wrongful acts of Defendants. COMPLAINT PAGE 1 OF 16 Case 3:12-cv-04541-B Document 1 Filed 11/12/12 Page 1 of 16 PageID 1

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Page 1: Ricks Cabaret Ryan Bad i i

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

Ryan Badii Plaintiff, vs. Rick’s Cabaret International, Inc; XTC Cabaret (Dallas), Inc.; XTC Cabaret, Inc., and XTC Cabaret Defendants.

§ § § § § § § § § § § § § §

Case No. _____________ Judge ________________

COMPLAINT

1. Plaintiff brings this civil claim pursuant to Title VII of the Civil Rights Act of 1964

which makes it an unlawful employment practice for an employer to discriminate against

any individual with respect to his compensation, terms, conditions, or privileges of

employment because of such individual’s race, color, religion, sex, or national origin.

Plaintiff was subject to severe and pervasive discriminatory treatment on the basis of

race, color, religion, and national origin. As a consequence of the discriminatory

treatment, Plaintiff was subject to reduced compensation, less favorable work

assignment, demotion, and retaliation. Plaintiff also brings a common law claim for

wrongful discharge as Plaintiff was terminated for the sole reason he refused to perform

an illegal act. Plaintiff seeks all available damages, interest, costs, and attorneys’ fees for

the wrongful acts of Defendants.

COMPLAINT PAGE 1 OF 16

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I. PARTIES

2. Plaintiff, Ryan Badii, is a citizen of the United States and a resident of Dallas County,

Texas.

3. Defendant, Rick’s Cabaret International, Inc., is a publicly traded company incorporated

under the laws of the State of Texas. Defendant’s business address is 10959 Cutten

Road, Houston, Texas 77066. Defendant may be served with process through its

registered agent, Robert Axelrod, at 5300 Memorial Drive, Ste 700, Houston, Texas

77007. Eric S. Langan sits as President and is a director of Defendant. Defendant’s

website indicates it owns and operates XTC Cabaret venues including XTC Cabaret in

Dallas, Texas. Rick’s has over 1,200 employees and 3,200 independent contractors.

4. Defendant, XTC Cabaret (Dallas), Inc., is a corporation formed under the laws of the

States of Texas. Defendant’s corporate offices are listed as 10959 Cutten Road, Houston,

Texas 77066. Defendant may be served with process through its registered agent, Robert

Axelrod, at 5300 Memorial Drive, Ste 700, Houston, Texas 77007. Eric S. Langan sits as

President and sole director of Defendant. Defendant is registered in Dallas County,

Texas as conducting business under the assumed name XTC Cabaret, 8550 N. Stemmons

Freeway, Dallas, Texas 75247.

5. Defendant, XTC Cabaret, Inc. is a corporation formed under the laws of the States of

Texas. Defendant’s corporate offices are listed as 10959 Cutten Road, Houston, Texas

77066. Defendant may be served with process through its registered agent, Robert

Axelrod, at 5300 Memorial Drive, Ste 700, Houston, Texas 77007. Eric S. Langan sits as

President and sole director of Defendant.

COMPLAINT PAGE 2 OF 16

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6. Defendant, XTC Cabaret, is the assumed name for XTC Cabaret (Dallas), Inc.

Defendant’s place of business is 8550 N. Stemmons Freeway, Dallas, Texas 75247.

Defendant may be served with process through its registered agent, Robert Axelrod, at

5300 Memorial Drive, Ste 700, Houston, Texas 77007.

II. JURISDICTION AND VENUE

7. The Court holds original jurisdiction in this case pursuant to 28 U.S.C. § 1331 (federal

subject matter jurisdiction).

8. The Court holds supplemental jurisdiction over all related claims under 28 U.S.C. § 1367.

9. Venue is proper in this district under 28 U.S.C. § 1391 (b)(2) because a substantial part of

the events or omissions giving rise to the claim occurred in this district.

10. Venue is proper in this district under 42 U.S.C. §2000e-5(f)(3) because the alleged

unlawful employment practice was committed in this district.

III. FACTS

11. Mr. Badii is a United Stats citizen who identifies himself as of Iranian ancestry. He

identifies himself as of the Bahai faith.

12. In 2009, Mr. Badii moved to the Dallas metropolitan area to be closer to family.

13. Mr. Badii held around eight years of managerial experience in the human resources and

the restaurant industries. He previously pursued a degree in Human Resources

Management from Portland State University in Portland, Oregon.

14. Desperate for employment, Mr. Badii responded to an advertisement on Craigslist for a

manager position with XTC Cabaret in Dallas, Texas.

15. XTC Cabaret is a part of a chain of gentleman’s clubs featuring topless entertainers and

restaurant services.

COMPLAINT PAGE 3 OF 16

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16. XTC Cabaret is owned an operated by Rick’s Cabaret International, Inc (“Rick’s”). a

publicly traded company.

17. Defendants XTC Cabaret, Inc. and XTC Cabaret (Dallas), Inc. are affiliated entities with

shared ownership and control as XTC Cabaret.

18. Mr. Badii was offered the position of Waitress Manager.

19. Mr. Badii accepted the position and began working around March 2009.

20. From the onset of employment with XTC, Mr. Badii was subject discriminatory treatment

on the basis of race, color, religion, and national origin. As a consequence of the

discriminatory treatment, he was subject to reduced compensation, less favorable work

assignment, demotion, and retaliation.

21. Mr. Badii was subject to discrimination from the first day of employment. After

introducing himself to fellow co-workers, he was asked where he was from. Mr. Badii

responded that he was Iranian. Mr. Badii’s manager, Erin Fry, immediately stated, “Oh

my god, you are a Muslim Terrorist.” Shortly thereafter, other staff members began

repeating the statement.

22. Around April 2010, Josh Stern was hired as a General Manager at XTC Cabaret. He had

supervisory duties over Mr. Badii.

23. Josh Stern began harassing Mr. Badii almost immediately. Josh Stern made statements

like, “Where is your bomb?” and “Does your girlfriend wear veils and cover her body?”

Mr. Badii informed Josh Stern that he was extremely offended by his comments.

24. Josh Stern also referred to Mr. Badii on multiple occasions as Muslim, Terrorist, and

Arab. Josh Stern would ask Mr. Badii about his “ties to al Qaeda and Osama bin Laden.”

Mr. Badii told Josh Stern that he did not find the remarks funny.

COMPLAINT PAGE 4 OF 16

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25. Josh Stern showed express racial preference in the management of the business, including

payment of wages, assignment of shifts, hiring of staff, and treatment of customers.

26. Josh Stern promoted a staff member named Marty Ray Carl to manager level. Marty Ray

Carl was a self professed Klu Klux Klan (“KKK”) member. Marty Ray Carl made

statements like the first cloth to touch his body was a KKK robe. On a regular basis,

Marty Ray Carl would refer to Mr. Badii as Persian Fuck, Muslim, or Muslim Terrorist.

27. Josh Stern reduced Mr. Badii’s working shifts and gave those shifts to Marty Ray Carl.

28. Josh Stern paid Marty Ray Carl more money for working the same shifts as Mr. Badii.

29. Fights and illegal activities were an ongoing problem at XTC Cabaret. Mr. Badii banned

one group of customers for frequently fighting in the club. Both Josh Stern and Marty

Ray Carl harassed Mr. Badii for his decision. Josh Stern and Marty Ray Carl knew the

customers were of Palestinian ancestry. Josh Stern said, “How can you turn your back on

your brothers?” and asked, “Aren’t you Palestinian, too?” Josh Stern laughed at his own

comments.

30. Around September 2010, Josh Stern announced a policy to create a more “White

friendly” club. He wished to accomplish the goal by hiring White floor hosts and

entertainers instead of minority floor hosts and entertainers. He told staff that they were

to hire any White female who applied for work. He also told staff that no Black

entertainers were to be hired.

31. Although a large percentage of customers were Hispanic and Spanish speaking, Josh

Stern refused to hire any Spanish speaking floor hosts.

32. General Managers claimed that the discriminatory policies in the hiring of staff came

directly from Rick’s corporate office. In April 2009, Mr. Badii was reprimanded by

COMPLAINT PAGE 5 OF 16

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manager Erin Fry for hiring several African American waitresses. Erin Fry stated that it

was a policy from Rick’s corporate office not to hire Black people. In Fall 2011, Josh

Stern announced that the next person who hired Black staff would be fired. He ordered

that any reason be found to fire the Black waitresses. Josh Stern openly stated that he did

not want Black customers because it ruins the White and Hispanic customer base.

33. Mr. Badii realized that he would have no promotion opportunities because of his

background. After Josh Stern attacked Mr. Badii with another racist comment, Mr. Badii

responded “actually I’m half Russian.” Mr. Badii’s declaration that he was of half-

Russian ancestry resulted in almost immediate better treatment including promotion.

34. Mr. Badii was promoted to the position of Entertainment Manager in late 2010.

Entertainment Manager duties included recruiting staff and increasing entertainer count.

35. In his time as Entertainment Manager, Mr. Badii increased the number of entertainers

working at XTC Cabaret by double. He substantially increased revenue for the club as

well as his own commissions.

36. In Summer 2011, Josh Stern hired Tim St. Onge, who was White. The two began using

racial slurs constantly towards staff and in reference to customers. Mr. Badii was

regularly referred to as Terrorist, Muslim, and Italian Mafia. The two regularly referred

to customers as Niggers, Spicks, Wetbacks, and Beaners.

37. Josh Stern and Tim St. Onge also targeted other staff who they believed were of Middle

Eastern or Muslim background. They referred to one floor host as Arab, Muslim Guy,

Taliban, Terrorist, and Rag Head.

38. In September 2011, Mr. Badii learned that Josh Stern was paying Tim St. Onge more per

shift and a greater percentage of the tips. Mr. Badii confronted Josh Stern regarding the

COMPLAINT PAGE 6 OF 16

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Specific Incidents Occurring After October 2011

39. Around October 2011, Josh Stern ordered Mr. Badii to work the Sunday night shift with

two objectives: 1) reduce incidents and 2) increase the entertainer count within 4 weeks.

Mr. Badii reduced the number of incidents to 1 and increased the entertainer count from

30 to 50 within 4 weeks.

40. In December 2011, Mr. Badii made offers of employment to several African American

waitresses and entertainers who were well qualified for the positions.

41. Josh Stern reprimanded Mr. Badii for the hires. Josh Stern stated that there were too

many Black people on staff already and that Mr. Badii should hire less qualified

applicants as long as they are not Black.

42. Shortly thereafter, Mr. Badii was demoted from Entertainment Manager to Floor Host

Manager. Tim St. Onge was given the position of Entertainment Manager. The

entertainer count immediately fell.

43. When the drop in entertainer count was discussed, it was suggested that Mr. Badii be

made Entertainment Manager again. Josh Stern laughed. He stated only a White guy can

be manager and that performance wasn’t relevant.

44. In December 2011, Josh Stern reiterated his policy that no African Americans could be

hired. Any African Americans on staff were to be reevaluated for employment and

terminated. Any person with one drop of African American blood was barred from

hiring.

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45. Around January 2012, Josh Stern complemented Mr. Badii’s performance and suggested

that he would be promoted to Assistant General Manager within less than a month. The

statement was made prior to a meeting of managers of clubs operated by Rick’s to be

held in the Dallas metropolitan area.

46. Mr. Badii was required to attend the regional meeting of General Managers from Rick’s

clubs in Houston, San Antonio, Dallas, and Ft. Worth. The meeting was mandatory for

him.

47. The meeting included a tour of clubs owned and operated by Rick’s by Regional

Manager Wayne Fenlon. The tour group included five General Managers, Tim St. Onge,

and Mr. Badii.

48. The tour group stopped at a club owned by Rick’s called Cabaret North. Mr. Badii

introduced himself and stated he worked at XTC Cabaret. An entertainer accompanying

one of the General Managers stated, “Oh my god, you are a Nigger. You come from

Niggers. Go back to your Niggers.” The entertainer began chanting, “Nigger! Nigger!

Nigger!” The harassment went on for more than one minute. None of the managers

interceded to stop the harassment.

49. Mr. Badii was deeply offended and felt that he had to leave. He told the entertainer, “If

you worked for me, you wouldn’t have a job using this language.” As he walked away,

one of the General Managers yelled out, “Nigger!” and the entire group laughed.

50. Mr. Badii worked the following day at XTC Cabaret. Robert Bonilla, a representative

from Rick’s corporate, brought an extremely large physically intimidating man towards

Mr. Badii. The man was referred to as and believed to be John Henry or “Paw Paw.”

The man was believed to be an employee of Rick’s at the Onyx club in Houston, Texas.

COMPLAINT PAGE 8 OF 16

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51. The man began to verbally threaten and push Mr. Badii. He stated that Muslim Arabs

had been persecuting Black people for a thousand years. He stated that Mr. Badii’s

people have subjected Black people to torture and terror long before 9/11 and that Arab

Muslims refer to Black people as Abdi or slave. The tirade lasted for several minutes.

52. Security workers for XTC Cabaret came over in fear of Mr. Badii’s safety and to prevent

John Henry from physically attacking Mr. Badii. John Henry was yelling racial slurs and

cursing.

53. Mr. Badii explained that he was not Arab or Muslim and diffused what he believed to be

a dangerous situation.

54. Mr. Badii believes that the incident with John Henry was staged in order to retaliate

against, intimidate, and harass him following the incident at Cabaret North the night

before.

55. Mr. Badii reported the incidents to Josh Stern. Josh Stern stated that Mr. Badii was

overreacting.

56. Mr. Badii formally complained to Josh Stern in front of Tim St. Onge regarding the

discrimination he was experiencing. He brought up the mandatory meeting he attended at

Cabaret North, which he left after being called Nigger repeatedly. Josh Stern demanded

that Mr. Badii call the General Manager of Caberet North and apologize for the incident.

57. Mr. Badii asked for permission to write the corporate human resources department. Mr.

Badii was told there was not a human resources department. Mr. Badii asked to write Ed

Anakar, Director of Operations for Rick’s. Josh Stern stated that Mr. Badii could not

contact anybody outside of the club regarding club issues. Josh Stern stated, “Your

actions must not affect my control of this club and you are especially forbidden from

COMPLAINT PAGE 9 OF 16

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contacting Ed [Anakar]or Wayne [Fenlon].” Josh Stern also stated that Mr. Badii was

half-White anyway and stated “so what was [the] problem.”

58. Illegality was a regular issue in the XTC Cabaret. On a regular basis, there were incidents

of shooting, stabbing, attempted rapes, drug sales, drug use, illegal alcohol sales, and

underage admission.

59. Mr. Badii would regularly intervene to stop criminal acts and assist victims of assault,

attempted rape, and other crime. Automatic weapons were used inside of XTC Cabaret

by customers. On one occasion, Robert Bonilla threatened Mr. Badii with a laser scope

guided gun. On another Robert Bonilla threatened to use a machete against Mr. Badii.

Mr. Badii attempted to contact law enforcement regarding many of the incidents.

However, XTC Cabaret policy prohibited contacting law enforcement or even

ambulances. It was Mr. Badii’s refusal to commit and attempt to report illegality that

resulted in his subsequent termination in February 2012.

60. On or about January 29, 2012 Mr. Badii learned that a doorman was taking money to

allow minors under the age of eighteen years into the club. The doorman admitted

collecting almost $2,000 that night by charging minors $20, $50, or $100 for entry

without showing identification.

61. Mr. Badii terminated the doorman. In an effort to put Rick’s corporate office on notice of

the illegal entrants, Mr. Badii rang the money given to XTC Cabaret by the doorman in

the register as a VIP Sale. Mr. Badii then called Josh Stern to inform him of the

illegality. Josh Stern stated that he was working very closely with the front door and that

the doorman was doing exactly what Josh Stern wanted. Mr. Badii informed Josh Stern

that he rang the money up in the register. Josh Stern began yelling. He screamed,

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“What? You did what? You rang up the money? You should never have rang up that

money! How are we going to explain it to corporate? That is minor cover charges you

Stupid Nigger!”

62. Robert Bonilla, Rick’s corporate representative at XTC Cabaret, then threatened Mr.

Badii to stay away from employees working the door because Robert Bonilla claimed he

carried a machete with him. Robert Bonilla grabbed Mr. Badii’s finger bent it causing

Mr. Badii severe pain in his hand and wrist.

63. On February 3, 2012, Mr. Badii reported to Josh Stern that Robert Bonilla had attacked

him and threatened to use a machete against him. Mr. Badii also told Josh Stern that

Robert Bonilla was stealing $3,000 to $6,000 per weekend in cover charges. Josh Stern

stated that Mr. Badii was rocking the boat too much.

64. Later that day, Josh Stern terminated Mr. Badii. Josh Stern claimed that he and Robert

Bonilla found a drug pipe in the manager’s office and claimed that it belonged to Mr.

Badii. Mr. Badii denied the claim. Josh Stern asked Mr. Badii to leave the premises.

IV. EXHAUSTION OF ADMINISTRATIVE REMEDIES

65. As Texas law prohibits employment discrimination on the same bases as Title VII, the

filing deadline is extended to 300 calendar days. TEX. LAB. CODE § 21.051; 42 U.S.C.

§2000e-5 (e)(1),

66. Plaintiff filed a timely charge of discrimination against Defendants with Equal

Employment Opportunity Commission (“EEOC”) on August 13, 2012.

67. EEOC issued notice of right to sue on August 13, 2012. Plaintiff files this complaint

within 90 days after receiving a notice of the right to sue from the EEOC. The 90th day

falls on Tuesday, November 13, 2012 because the period would end on a Sunday or legal

COMPLAINT PAGE 11 OF 16

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holiday (Veteran’s Day). See FED. R. CIV. PRO. 6 (a)(1)(C). A copy of the notice of the

right to sue is attached as Exhibit A.

V. CLAIMS

DISCRIMINATION UNDER TITLE VII

68. Plaintiff brings this action for unlawful employment practices pursuant to Title VII of the

Civil Rights Act of 1964. 42 U.S.C. §§ 2000e, et seq.

69. Plaintiff is an employee within the meaning of Title VII and belongs to a class protected

under the statute, namely race, color, religion, and national origin.

70. Defendants are an employer within the meaning of Title VII.

71. Defendants intentionally discriminated against Plaintiff because of his race, color,

religion, and national origin in violation of Title VII by:

A. Discriminating on the conditions of employment, including pay, job assignment,

promotion, and demotion when:

i. Sometime after November 1, 2012, Josh Stern expressly stated that Mr.

Badii would not be made manager because only a White person could be

manager regardless of performance;

ii. Sometime after November 1, 2012, Mr. Badii was demoted from the

position of Entertainment Manager even though he brought greater

revenue to the club than his replacement Tim St. Onge, who was White;

iii. Mr. Badii was paid less per shift and received a lower percentage of tips

than Tim St. Onge, who was White.

iv. Mr. Badii’s shifts were reduced and given to Marty Ray Carl, who was

White.

COMPLAINT PAGE 12 OF 16

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v. Mr. Badii was paid less than Marty Ray Carl for working the same shifts;

vi. Mr. Badii was given less favorable shifts in favor of Marty Ray Carl;

B. Retaliating against Mr. Badii for opposition to discrimination when:

i. Sometime after November 1, 2012, Mr. Badii was reprimanded and

demoted from Entertainment Manager for hiring African American

employees;

ii. Defendants engaged in retaliation against Mr. Badii through physical and

verbal intimidation and prohibiting Mr. Badii from reporting the incidents

to higher authorities;

iii. Mr. Badii was subject to reduced shifts after confronting Josh Stern about

differences in shift pay and tips;

C. Subjecting Mr. Badii to severe or pervasive harassment and creating a hostile

working environment including when:

i. On or about January 29, 2012, Josh Stern referred to Mr. Badii as “Stupid

Nigger” after Mr. Badii reported illegal activities;

ii. Sometime after December 1, 2012, Mr. Badii was refused permission to

contact human resources or Rick’s corporate officials outside of XTC

Cabaret regarding the ongoing discrimination to which he was subject;

iii. Sometime after December 1, 2012, Mr. Badii was verbally threatened and

assaulted by John Henry in which Mr. Badii was called racial slurs and

intimidated;

iv. Sometime after December 1, 2012, Mr. Badii was repeatedly called a

racial slur during the mandatory meeting at Cabaret North;

COMPLAINT PAGE 13 OF 16

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v. Mr. Badii was subject to ongoing offensive jokes, slurs, epithets, name

calling, physical assaults, threats, intimidation, ridicule or mockery, insults

or put-downs, and interference with work performance.

D. And other actions as aforementioned in this complaint.

72. Defendants behaved with malice or reckless indifference to the protected rights of Mr.

Badii through its acts or omissions.

COMMON LAW WRONGFUL DISCHARGE

73. Plaintiff was wrongfully discharged under the common law. Texas allows employees to

sue their employers if they are discharged for the sole reason that the employee refused to

perform an illegal act. Safeshred, Inc. v. Martinez, 365 S.W.3d 655, 658 (Tex. 2012).

74. Plaintiff was discharged for the sole reason that he refused to participate in and attempted

to report the admission of minors into a sexually oriented business, an act which violates

the following laws :

A. Knowingly allowing a minor to enter the premises of a sexually oriented business,

violating Dallas City Code § 41A-20.1 and Texas Local Government Code §

243.010, a Class A misdemeanor;

B. Committing the criminal offense of theft;

C. Acting as accessory, accomplice, or conspirator in the criminal offense of

indecency with a child.

75. Defendants acted with malice and are therefore subject to punitive damages.

VI. DAMAGES

76. As a direct and proximate result of defendant’s conduct, plaintiff suffered injuries and

damages, including:

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A. Plaintiff received reduced compensation, including fewer wages, commissions,

and tips as a result of Defendants’ actions.

B. Plaintiff was denied promotion, resulting in lost pay and benefits, as a result of

Defendants’ actions.

C. Plaintiff was demoted resulting in lost pay and benefits, as a result of Defendants

actions.

D. Plaintiff was given less favorable work assignments resulting in lost pay and

benefits, as a result of Defendants actions.

E. Plaintiff suffered lost pay as a result of his wrongful termination, which was done

with malice.

F. Plaintiff has suffered mental anguish and emotional distress as a result of the

Defendants’ actions.

G. Plaintiff has suffered physical injuries as the result of Defendant’s actions.

H. Although plaintiff has diligently sought other employment, he has been unable to

find a job. In addition, plaintiff has incurred expenses in seeking other

employment.

77. The acts, conduct, and behavior of Defendants were performed with malice and reckless

indifference to Plaintiff’s federally protected rights, by reason of which Plaintiff is

entitled to an award of punitive damages in such amount as will sufficiently punish

defendants for their conduct and as will serve as an example to prevent a repetition of

such conduct in the future.

VII. ATTORNEY FEES

COMPLAINT PAGE 15 OF 16

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COMPLAINT PAGE 16 OF 16

78. Plaintiff is entitled to an award of attorney fees and costs under Title VII, 42 U.S.C.

§2000e-5(k).

VIII. PRAYER

WHEREFORE Plaintiffs respectfully requests judgment against the Defendants, jointly and severally, for:

i. general compensatory damages, ii. punitive damages, iii. back pay and interest on back pay iv. front pay v. past pecuniary losses vi. special damages for medical, hospital, and physician’s expenses, vii. interest according to law, viii. costs of suit, ix. attorneys fees, and x. such other and further relief as the court deems just and proper.

Respectfully submitted, s/ Vishal Chander _________________________ Vishal Chander The Chander Law Firm A Professional Corporation 3102 Maple Avenue Suite 450 Dallas, Texas 75201 Telephone: (214) 677-4990 Fax: (214) 953-9353 Email: [email protected] State Bar Number 24036349

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JS 44 (Rev. 09/11) CIVIL COVER SHEETThe JS 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as providedby local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiatingthe civil docket sheet. (SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)

I. (a) PLAINTIFFS DEFENDANTS

(b) County of Residence of First Listed Plaintiff County of Residence of First Listed Defendant(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES ONLY)

NOTE: IN LAND CONDEMNATION CASES, USE THE LOCATION OF THE TRACT OF LAND INVOLVED.

(c) Attorneys (Firm Name, Address, and Telephone Number) Attorneys (If Known)

II. BASIS OF JURISDICTION (Place an “X” in One Box Only) III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for Plaintiff)(For Diversity Cases Only) and One Box for Defendant)

’ 1 U.S. Government ’ 3 Federal Question PTF DEF PTF DEFPlaintiff (U.S. Government Not a Party) Citizen of This State ’ 1 ’ 1 Incorporated or Principal Place ’ 4 ’ 4

of Business In This State

’ 2 U.S. Government ’ 4 Diversity Citizen of Another State ’ 2 ’ 2 Incorporated and Principal Place ’ 5 ’ 5Defendant (Indicate Citizenship of Parties in Item III) of Business In Another State

Citizen or Subject of a ’ 3 ’ 3 Foreign Nation ’ 6 ’ 6 Foreign Country

IV. NATURE OF SUIT (Place an “X” in One Box Only)CONTRACT TORTS FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES

’ 110 Insurance PERSONAL INJURY PERSONAL INJURY ’ 625 Drug Related Seizure ’ 422 Appeal 28 USC 158 ’ 375 False Claims Act’ 120 Marine ’ 310 Airplane ’ 365 Personal Injury - of Property 21 USC 881 ’ 423 Withdrawal ’ 400 State Reapportionment’ 130 Miller Act ’ 315 Airplane Product Product Liability ’ 690 Other 28 USC 157 ’ 410 Antitrust’ 140 Negotiable Instrument Liability ’ 367 Health Care/ ’ 430 Banks and Banking’ 150 Recovery of Overpayment ’ 320 Assault, Libel & Pharmaceutical PROPERTY RIGHTS ’ 450 Commerce

& Enforcement of Judgment Slander Personal Injury ’ 820 Copyrights ’ 460 Deportation’ 151 Medicare Act ’ 330 Federal Employers’ Product Liability ’ 830 Patent ’ 470 Racketeer Influenced and’ 152 Recovery of Defaulted Liability ’ 368 Asbestos Personal ’ 840 Trademark Corrupt Organizations

Student Loans ’ 340 Marine Injury Product ’ 480 Consumer Credit (Excl. Veterans) ’ 345 Marine Product Liability LABOR SOCIAL SECURITY ’ 490 Cable/Sat TV

’ 153 Recovery of Overpayment Liability PERSONAL PROPERTY ’ 710 Fair Labor Standards ’ 861 HIA (1395ff) ’ 850 Securities/Commodities/ of Veteran’s Benefits ’ 350 Motor Vehicle ’ 370 Other Fraud Act ’ 862 Black Lung (923) Exchange

’ 160 Stockholders’ Suits ’ 355 Motor Vehicle ’ 371 Truth in Lending ’ 720 Labor/Mgmt. Relations ’ 863 DIWC/DIWW (405(g)) ’ 890 Other Statutory Actions’ 190 Other Contract Product Liability ’ 380 Other Personal ’ 740 Railway Labor Act ’ 864 SSID Title XVI ’ 891 Agricultural Acts’ 195 Contract Product Liability ’ 360 Other Personal Property Damage ’ 751 Family and Medical ’ 865 RSI (405(g)) ’ 893 Environmental Matters’ 196 Franchise Injury ’ 385 Property Damage Leave Act ’ 895 Freedom of Information

’ 362 Personal Injury - Product Liability ’ 790 Other Labor Litigation Act Med. Malpractice ’ 791 Empl. Ret. Inc. ’ 896 Arbitration

REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS Security Act FEDERAL TAX SUITS ’ 899 Administrative Procedure’ 210 Land Condemnation ’ 440 Other Civil Rights ’ 510 Motions to Vacate ’ 870 Taxes (U.S. Plaintiff Act/Review or Appeal of ’ 220 Foreclosure ’ 441 Voting Sentence or Defendant) Agency Decision’ 230 Rent Lease & Ejectment ’ 442 Employment Habeas Corpus: ’ 871 IRS—Third Party ’ 950 Constitutionality of’ 240 Torts to Land ’ 443 Housing/ ’ 530 General 26 USC 7609 State Statutes’ 245 Tort Product Liability Accommodations ’ 535 Death Penalty IMMIGRATION’ 290 All Other Real Property ’ 445 Amer. w/Disabilities - ’ 540 Mandamus & Other ’ 462 Naturalization Application

Employment ’ 550 Civil Rights ’ 463 Habeas Corpus -’ 446 Amer. w/Disabilities - ’ 555 Prison Condition Alien Detainee

Other ’ 560 Civil Detainee - (Prisoner Petition)’ 448 Education Conditions of ’ 465 Other Immigration

Confinement Actions

V. ORIGINTransferred fromanother district(specify)

(Place an “X” in One Box Only)’ 1 Original

Proceeding’ 2 Removed from

State Court’ 3 Remanded from

Appellate Court’ 4 Reinstated or

Reopened’ 5 ’ 6 Multidistrict

Litigation

VI. CAUSE OF ACTIONCite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity): Brief description of cause:

VII. REQUESTED IN COMPLAINT:

’ CHECK IF THIS IS A CLASS ACTIONUNDER F.R.C.P. 23

DEMAND $ CHECK YES only if demanded in complaint:JURY DEMAND: ’ Yes ’ No

VIII. RELATED CASE(S) PENDING OR CLOSED: (See instructions): JUDGE DOCKET NUMBER

DATE SIGNATURE OF ATTORNEY OF RECORD

FOR OFFICE USE ONLY

RECEIPT # AMOUNT APPLYING IFP JUDGE MAG. JUDGE

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JS 44 Reverse (Rev. 09/11)

INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44

Authority For Civil Cover Sheet

The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as requiredby law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for theuse of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of Court for each civilcomplaint filed. The attorney filing a case should complete the form as follows:

I. (a) Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use onlythe full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and then the official, givingboth name and title.

(b) County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at thetime of filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In land condemnationcases, the county of residence of the “defendant” is the location of the tract of land involved.)

(c) Attorneys. Enter the firm name, address, telephone number, and attorney of record. If there are several attorneys, list them on an attachment, notingin this section “(see attachment)”.

II. Jurisdiction. The basis of jurisdiction is set forth under Rule 8(a), F.R.C.P., which requires that jurisdictions be shown in pleadings. Place an “X” in oneof the boxes. If there is more than one basis of jurisdiction, precedence is given in the order shown below.United States plaintiff. (1) Jurisdiction based on 28 U.S.C. 1345 and 1348. Suits by agencies and officers of the United States are included here.United States defendant. (2) When the plaintiff is suing the United States, its officers or agencies, place an “X” in this box.Federal question. (3) This refers to suits under 28 U.S.C. 1331, where jurisdicti on arises under the Constitution of the Unite d States, an amendment to theConstitution, an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes precedence, and box1 or 2 should be marked.Diversity of citizenship. (4) This refers to suits under 28 U.S.C. 1332, where parties are citizens of different states. When Box 4 is checked, the citizenship ofthe different parties must be checked. (See Section III below; federal question actions take precedence over diversity cases.)

III. Residence (citizenship) of Principal Parties. This section of the JS 44 is to be completed if diversity of citizenship was indicated above. Mark this sectionfor each principal party.

IV. Nature of Suit. Place an “X” in the appropriate box. If the nature of suit cannot be determined, be sure the cause of action, in Section VI below, issufficient to enable the deputy clerk or the statistical clerks in the Administrative Office to determine the nature of suit. If the cause fits more than one nature ofsuit, select the most definitive.

V. Origin. Place an “X” in one of the seven boxes.Original Proceedings. (1) Cases which originate in the United States district courts.Removed from State Court. (2) Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section 1441. When the petitionfor removal is granted, check this box.Remanded from Appellate Court. (3) Check this box for cases remanded to the district court for further action. Use the date of remand as the filing date.Reinstated or Reopened. (4) Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date.Transferred from Another District. (5) For cases transferred under Title 28 U.S.C. Section 1404(a). Do not use this for within district transfers or multidistrictlitigation transfers.Multidistrict Litigation. (6) Check this box when a multidistrict case is transferred into the district under authority of Title 28 U.S.C. Section 1407. When thisbox is checked, do not check (5) above.Appeal to District Judge from Magistrate Judgment. (7) Check this box for an appeal from a magistrate judge’s decision.

VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional statutesunless diversity. Example: U.S. Civil Statute: 47 USC 553

Brief Description: Unauthorized reception of cable service

VII. Requested in Complaint. Class Action. Place an “X” in this box if you are filing a class action under Rule 23, F.R.Cv.P.Demand. In this space enter the dollar amount (in thousands of dollars) being demanded or indicate other demand such as a preliminary injunction.Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded.

VIII. Related Cases. This section of the JS 44 is used to reference cases that are related to this filing, if any. If a realted case exists, whether pending orclosed, insert the docket numbers and the corresponding judge names for such cases. A case is "realted" to this filing if the case: (1) involves some or allof the same parties and is based on the same or similar claim; (2) involves the same property, transaction, or event; (3) involves substantially similar

issues of law and fact; and/or (4) involves the same estate in a bankruptcy appeal.

Date and Attorney Signature. Date and sign the civil cover sheet.

Case 3:12-cv-04541-B Document 1-1 Filed 11/12/12 Page 2 of 2 PageID 18

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UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS

Plaintiff

Defendant

v.Civil Action No.

CERTIFICATE OF INTERESTED PERSONS (This form also satisfies Fed. R. Civ. P. 7.1)

Pursuant to Fed. R. Civ. P. 7.1 and LR 3.1(c), LR 3.2(e), LR 7.4, LR 81.1(a)(3)(D), and LR 81.2,

provides the following information:

For a nongovernmental corporate party, the name(s) of its parent corporation and any publicly held corporation that owns 10% or more of its stock (if none, state "None"): *Please separate names with a comma. Only text visible within box will print.

A complete list of all persons, associations of persons, firms, partnerships, corporations, guarantors, insurers, affiliates, parent or subsidiary corporations, or other legal entities that are financially interested in the outcome of the case: *Please separate names with a comma. Only text visible within box will print.

Dallas Division

Ryan Badii

Rick's Cabaret International, Inc, et al.

3:12-CV-04541

Ryan Badii

None

Ryan Badii, Rick's Cabaret International, Inc., XTC Cabaret (Dallas), Inc., XTC Cabaret, Inc, and XTC Cabaret (Dallas) d/b/a/ XTC Cabaret

Case 3:12-cv-04541-B Document 1-2 Filed 11/12/12 Page 1 of 2 PageID 19

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Date:

Signature:

Print Name:

Telephone:

Address:

City, State, Zip:

Bar Number:

Fax:

E-Mail:

NOTE: To electronically file this document, you will find the event in our Case Management (CM/ECF) system, under Civil/Other Documents/Certificate of Interested Persons

11/12/2012

s/ Vishal Chander

Vishal Chander

(214) 677-4990

3102 Maple Ave Ste 450

Dallas, TX 75201

24036349

(214) 953-9353

[email protected]

Case 3:12-cv-04541-B Document 1-2 Filed 11/12/12 Page 2 of 2 PageID 20