HORNSWAGGLED
The Forum Shopper's Lament
Act I: A Second Front Opens
There's an old saying among trial lawyers: when you're losing in one courtroom, don't open a second front. But nobody ever accused Mitchell Stein of listening to old sayings. What happened next in the Sea Tow saga isn't just a case study in forum shopping — it's a masterclass in how not to play chess when the board is already on fire.
The court's message was unmistakable: the case is limited, the discovery is limited, stop trying to relitigate what's already been dismissed.
Sea Tow heard the message. They just didn't like it.
Act II: The Clandestine Meeting
In or around April 2025 — while the walls were closing in with the federal case — something happened in Florida. Upon information and belief, Sea Tow convened a meeting of Gulf Coast franchisees and recruited co-plaintiffs for a new state-court action. Several franchisees refused to join.
[Web-edition note: this edition presents the principal retrieved text of the original mailing. The full state-court narrative — the Suffolk County filing with co-plaintiffs H2FRO, Inc., Triton Tow and Salvage, and Southwest Florida Maritime (Index No. 606928/2025), and Justice John J. Andrews' January 12, 2026 Short Form Order staying the action and finding the franchise question "plausible" (NYSCEF Doc. 55) — is covered in full in The Ghost in the Rigging, elsewhere in this archive.]
The Franchisee Analysis
The franchisees who joined the state action are now co-plaintiffs in a lawsuit where a judge has found their own agreements may be void. They are spending money on legal fees to advance Sea Tow's interests while potentially waiving their own claims against Sea Tow for operating an illegal franchise system.
The franchisees who refused to participate made the better choice. They preserved their independence, avoided antitrust exposure, and kept their rescission rights intact.
Every franchisee should consult an independent franchise attorney — not Mitchell Stein, not anyone connected to Sea Tow, but a truly independent lawyer who can evaluate your specific agreement and advise you on your rights under the New York Franchise Sales Act, the FTC Franchise Rule, and applicable state franchise laws.
FOR THE RECORD
Sea Tow has never registered as a franchisor with the New York Attorney General. This was confirmed by a February 27, 2023 FOIL response. Under NY General Business Law § 683, offering or selling a franchise without registration is a criminal misdemeanor. Every management agreement signed without a Franchise Disclosure Document is potentially void and subject to rescission.
The View from the Crow's Nest
The state case appeal is a sideshow. It's the legal equivalent of rearranging deck chairs while the ship takes on water. The federal case has its March 2026 depositions — Mitchell Stein, Joseph Frohnhoefer III, and Kristen Frohnhoefer, all under oath. The SBA Franchise Directory certification deadline looms on June 30, 2026. Document discovery is closed. The walls are closing in.