Dignity means treating another as if they have intrinsic needs.
MAx's actions show little value given to Jay or Sam's intrinsic needs of honesty. He made his friend decieve his girlfriend and ofcourse, deceived his girlfriend. He is not justified using respect as a value. Max's actions had the potential to destroy all three relationships and it almost did. He did however, manage to bring Jay and Sam togethor therefore he is justified by principle of utility.