Family Of Deceased NJ Diner Owner Sues New Owners Over Use Of His Name

PATERSON, NJ — On the day that a well-known Paterson diner opened with new managers — but the same name — the former owner's family filed a federal lawsuit seeking to stop the restaurant from using his likeness.

"Mr. G's" has been the diner's name since 2008, when the late civil rights activist Russell “G” Graddy bought the building. Graddy, a longtime Paterson resident who died in 2021, was part of a group that organized for Dr. Martin Luther King Jr. to speak in the city just days before his assassination.

The diner, which sits at the corner of 10th Avenue and 18th Street, has changed hands multiple times since it was first built in 1940. It was closed for several years after Graddy's death, then reopened this past weekend.

The new owners renovated the diner, and decided to keep the name despite protests from the Graddy family — who ran Mr. G's until 2022 and had planned to re-open it elsewhere according to his wishes, according to court documents.

Graddy's estate filed the lawsuit on Friday, Aug. 15 in New Jersey federal court, the same day there was a ribbon-cutting to celebrate the diner opening its doors again.The family is seeking an injunction to prevent the owners from using the name, saying they violated federal trademark law by touting the "Mr. G's" brand and using an old logo to promote the restaurant.

Lauren B. Emerson, one of the attorneys representing the family, said the new owners "are trading off a great man’s name, likeness and legacy" in violation of state and federal law.

"Worse, they are doing so against the express wishes of his still-grieving family," said Emerson, a partner at Leason Ellis LLP in White Plains, N.Y.

The diner's new management team consists of businessman Yaakoub Hijazi, who bought the building in 2023 and also owns Star Laundry; and entrepreneurs Vaughn and Marnie McKoy, who have local ties.

Marnie McKoy has worked for Paterson Public Schools and the Community Charter School of Paterson. Vaughn McKoy is a Paterson native and formerly served as the city business administrator under Mayor Andre Sayegh, who has been promoting the restaurant on social media.

These new owners "have been shameless in their unlawful efforts to mislead the public into believing that (the) Counterfeit Diner is the same beloved diner business that was once operated by the Graddys," his family said.

The lawsuit refers to the restaurant as "the Counterfeit Diner," and claims the owners are trying "to actively deceive consumers into believing that Mr. G’s Diner closed for renovations and will 'reopen' one day to continue serving consumers the same quality of goods and services as (the original) Mr. G’s Diner."

A two-block section of 10th Avenue is named for Graddy, who also managed a restaurant and gift shop in the Atlantic City Bus Terminal with his wife Loretta for close to 20 years.

Earlier this year, his daughter Lenise told NorthJersey.com that the family was considering taking legal action against the new owners for using the Mr. G's name — and said some community members thought the Graddy family was involved in the re-opening since they had mentioned bringing it back in the past, albeit in a new location.

"Only Mr. Graddy’s family and the business he left behind are entitled to commercialize the MR.G’s name and mark," said Emerson. "Our hope remains that the Court adjudicates this willful misconduct in a manner that acknowledges the exceptional circumstances underpinning this case."

Patch has reached out to both parties' legal teams for further comment.