Former City of Binghamton Mayor Richard David and downtown bar owner Kristopher Kasmarcik are being sued by their business partner for allegedly violating a non-competition clause.
Mikaila Fargnoli, a co-owner of the Stadium 138 restaurant and bar on Washington Street, is seeking damages from David and Kasmarcik after the two opened Blazin’ Saddles on Court Street, allegedly bringing her business “to the brink of collapse,” according to a complaint filed on Oct. 14.
Fargnoli alleges David and Kasmarcik, co-owners of Stadium 138 and Blazin’ Saddles, violated a non-competition clause stated within their business agreement as part owners of the Washington Street bar.
In the complaint, Fargnoli seeks an order from the court directing Blazin’ Saddles to cease and desist further operations. She’s also looking for further relief from both David and Kasmarcik including damages for breach of fiduciary duty, unjust enrichment and a minority shareholder suit which seeks the dissolution of RMK Association and Confluence Properties, two limited liability companies of which David and Kasmarcik are members.
David and Kasmarcik’s attorney Kurt Schrader said on Oct. 16 that after reviewing the complaint, his clients “generally deny” the allegations.
“We don’t feel that there’s any merit to the lawsuit and we think the court will feel the same way once we send in our responding papers,” Schrader said.
Stadium 138, allegations in the complaint
In the complaint, Fargnoli alleges David recruited her to participate in owning and operating Stadium 138 because of her “skills in the bar and restaurant business.” As a part of this partnership, David offered to loan her capital to become 24.5% owner in RMK Association in the amount of $60,000 and Confluence Properties, in the amount of $62,500.
Both of the limited liability companies were formed for the purpose of operating Stadium 138, according to court documents. Kasmarcik, who now also co-owns Blazin’ Saddles, was also recruited by David and received the same deal to become 24.5% owner of both companies.
The three borrowed a $420,000 commercial loan for the construction of the Washington Street restaurant. On Dec. 31, 2023, Stadium 138 opened.
While Fargnoli was devoting “many hours working the bar, engaging in managerial activity and otherwise applying her skills” to ensure the business succeeded, the lawsuit claims David was failing to pay taxes and other money that was due to creditors while “siphoning off resources” from Stadium 138 to use for Blazin’ Saddles.
Within the operating agreement of RMK and a non-compete clause agreed upon in Confluence Properties, the three co-owners were “forbidden to directly or indirectly engage in any competitive activities without the express written permission of members which could be withheld, conditioned or denied at the sole discretion of the member,” according to the complaint.
Additionally, the agreements indicated the involved parties were not allowed to “directly or indirectly take or usurp any business opportunity of RMK or Confluence” without the approval of all members.
Sometime in 2025, according to the complaint, David and Kasmarcik allegedly breached those agreements when they created another limited liability company, K & D Hospitality, in order to operate Blazin’ Saddles. Prior to opening the Court Street bar and restaurant on Sept. 5, the complaint alleges the two began recruiting employees from Stadium 138 to work at their new business.
Fargnoli alleges David and Kasmarcik not only breached the non-competition agreement, but they then targeted Stadium 138’s customer base by duplicating activities hosted by the business, ranging from line dancing to football season specials, to recruiting the same bands who often performed at Stadium 138.
In a motion asking the court to grant an instant motion to close down Blazin’ Saddles which was filed by Fargnoli on Oct. 14, a comparison of the first week of Blazin’ Saddles opening with Stadium 138’s sales from the year before shows an alleged 33.21% drop in sales, then a 46.22% drop the following week and a 51.8% drop for the next week.
