11:12 AM EST January 15, 2025
WASHINGTON — Harrison Suarez, co-founder of Compass Coffee, has filed a lawsuit against his former business partner Michael Haft and Haft’s father, Robert Haft. Suarez claims he was wrongfully pushed out of the company and that Covid-19 relief funds were misused.
Compass Coffee, based in Washington, D.C., was founded in 2013. Suarez and Michael Haft, who met in college and served together in the Marines, started the company after bonding over their shared love of morning coffee. Both invested $100,000 and initially held 25% ownership under the company’s first operating agreement.
Robert Haft, a prominent figure in Washington, D.C. business, provided additional funding through his LLC, Colby Bartlett LLC, which owned the remaining 50% of the company.
In the lawsuit, Suarez alleges that despite being assured of equal partnership, Michael Haft quickly became the majority owner. This, Suarez claims, allowed Michael Haft and his father to force him out of the company without warning.
The suit further alleges that Colby Bartlett LLC’s 50% ownership was transferred to another LLC, which Suarez believed Robert Haft owned. However, according to the lawsuit, Michael Haft was actually the owner of the new LLC, increasing his ownership stake to 75%.
In a LinkedIn post, Suarez detailed his efforts to resolve the matter privately before resorting to legal action.
“In 2013, I co-founded Compass Coffee with my close friend from the Marines,” Suarez wrote. “In July 2021, after years of hard work and while I was out of the country, my co-founder and his father forcibly exited me from the company and refused to compensate me for my equity. Since then, I have sought to resolve this dispute privately, constructively, and in accordance with our agreements. Yesterday, left with no other option, I filed suit in DC Federal Court.”
The lawsuit includes several allegations, including that the Hafts used $10.5 million in Covid-19 relief funds obtained for Compass Coffee to prepay personal loans and make risky investments, rather than covering company expenses like rent and bills.
After being terminated, Suarez attempted to sell his stake back to Compass Coffee, which he claims was his right under their operating agreement. However, the lawsuit alleges that the Hafts blocked the sale by preventing an independent valuation firm from determining the fair market value of his shares.
Suarez also claims he was not compensated for his full-time work over the years. He is seeking monetary damages, including compensation for the alleged forced relinquishment of his 50% stake.
Additionally, Suarez is accusing the Hafts of engaging in a pattern of racketeering activity, violating the Racketeer Influenced and Corrupt Organizations Act (RICO).
Compass Coffee currently operates 20 locations across Washington, D.C. As of now, neither Michael Haft nor Robert Haft has publicly responded to the lawsuit.