A Palm Beach County jury rejected a man who claimed that he was wrongly eliminated from the business operations of the Brooklyn Water Bagels restaurant chain.

On May 21, 2010, plaintiff Eliayahu Azulay was directed to discontinue all business he was performing for a Delray Beach-based restaurant chain, Brooklyn Water Enterprises. The directive was delivered via an email sent by Brooklyn Water Enterprises' CEO, Steven Fassberg. Azulay, through a corporate entity named Original Brooklyn Bagels 247 LLC, had been acting as a development agent for Brooklyn Water Enterprises.

Another Azulay-owned company, Palm Beach Gardens-based Royalty Design Kitchen & Bath Inc., had been retained to perform tiling at a Brooklyn Water Enterprises restaurant. Azulay and a partner, Michael D'Angelo III, had created a third company, NJA Brooklyn Bagels LLC, to operate a Brooklyn Water Enterprises franchise. Brooklyn Water Enterprises ultimately terminated its agreements with all three of Azulay's companies, and it established a new franchise agreement with a company D'Angelo owned, Water Bagels 247 LLLP.