Opinion ID: 752950
Heading Depth: 3
Heading Rank: 1

Heading: Motions to Dismiss and for Summary Judgment

Text: 32 On January 20, 1989, Hannex brought this suit in the Eastern District of New York, with jurisdiction based on diversity of citizenship, 28 U.S.C. § 1332(a), naming GMI, Gallen, Brockway, and S & S Japan as defendants, asserting five causes of action, and again seeking equitable relief. The first cause of action asserted that each of the Defendants tortiously interfered with Salvo's fiduciary duties to Hannex. The second cause of action alleged that GMI, Gallen and Brockway tortiously interfered with Hannex's contractual and prospective business relations with S & S Japan. The other causes of action were for injunctive relief, for breach of contract against S & S Japan and for antitrust violations. 33 The district court (Charles Sifton, Chief Judge ), in a memorandum and order, dated June 15, 1989, denied the motion for the preliminary injunction, and dismissed the contract action against S & S Japan, referring them to arbitration before the JCAA pursuant to the arbitration clause in the 1985 Agreement. The district court also dismissed Hannex's antitrust claim. Subsequently on a motion for summary judgment by Defendants, the district court, in a memorandum and order, dated December 1991, stayed the action pending arbitration before the JCAA. In this order, the district court also denied Defendants' motion for summary judgment on the tortious interference with contractual and prospective business relations claim, reasoning that that claim depended upon the results of the arbitration. 6 The order also denied Defendants' motion for summary judgment on the tortious interference with fiduciary duty claim, because that claim did not depend upon the existence of a contractual relationship between Hannex and S & S Japan. The court reasoned that: 34 When viewed in the light most favorable to [Hannex], the evidence presented could lead a jury to conclude that Salvo breached a contractually based fiduciary duty of loyalty by helping S & S Japan and GMI to enter into an arrangement that decimated Hannex'[s] business and that S & S Japan and GMI brought about or participated in this conduct. 35 The district court specifically pointed to the circumstantial evidence supporting this claim, which included: 36 Meetings between Salvo and the alleged co-conspirators with the purpose of shifting S & S Japan's business from Hannex to GMI, Salvo's lying to Hannex about those meetings, GMI's payment of money to Salvo for expenses incurred while he was still on Hannex'[s] payroll, an apparent agreement between S & S Japan and GMI that GMI would hire Salvo, and Salvo's sending of internal Hannex correspondence to GMI.... 37 Following the JCAA ruling, Defendants moved again for summary judgment. They argued that the JCAA's ruling precluded Hannex's tortious interference with existing and prospective business relations claim. The district court, (Sterling Johnson, Jr., Judge ), again denied the motion in a brief order. Accordingly, a trial was necessary to resolve Hannex's first two causes of action. 38