Balakrishnan v. TTEC Digital LLC

CourtDistrict Court, D. Colorado
DecidedApril 16, 2024
Docket1:23-cv-01204
StatusUnknown

This text of Balakrishnan v. TTEC Digital LLC (Balakrishnan v. TTEC Digital LLC) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Balakrishnan v. TTEC Digital LLC, (D. Colo. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Judge Charlotte N. Sweeney

Civil Action No. 1:23-cv-01204-CNS-NRN

DILIP BALAKRISHNAN,

Plaintiff,

v.

TTEC DIGITAL LLC, a Colorado limited liability company,

Defendant.

ORDER

Before the Court are three separate but closely related motions: (1) Defendant/Counterclaim Plaintiff TTEC Digital’s Opposed Motion for Declaratory Judgment and Request for Expedited Determination with Speedy Hearing, ECF No. 68; (2) TTEC’s Opposed Motion for Specific Performance and Request for Expedited Determination with Speedy Hearing, ECF No. 70; and (3) Plaintiff Dilip Balakrishnan’s Opposed Motion to Dismiss TTEC’s Counterclaims, ECF No. 77. For the reasons explained below, the Court DENIES TTEC’s motions and GRANTS in part and DENIES in part Mr. Balakrishnan’s motion. I. FACTUAL BACKGROUND This case arises from the parties’ execution of a February 7, 2020 Stock Purchase Agreement (SPA). ECF No. 67 (TTEC’s Countercl.), ¶¶ 1, 14; ECF No. 67-4 (SPA). In executing the SPA, TTEC acquired 70% of Serendebyte Inc., the company Mr. Balakrishnan founded. Countercl., ¶¶ 14, 21. The SPA permitted Mr. Balakrishnan, on behalf of Serendebyte’s rolling shareholders (including himself), to sell the remaining 30% of Serendebyte to TTEC during the period of January 31, 2023, to December 31, 2023, which the SPA defines as the “Put Option.” Id., ¶ 29; SPA, § 8.02. The buyout price for the remaining 30% of Serendebyte was based on Serendebyte’s financial performance over the previous three- year period. Countercl., ¶ 30; SPA at 2 (defining pre-agreed formula). On December 8, 2023, Mr. Balakrishnan notified TTEC that he, as the majority

seller, was electing to exercise the Put Option pursuant to § 8.02. Countercl., ¶ 2. Mr. Balakrishnan’s exercise notice calculated the amount of the second buyout—the remaining 30% of the shares—at $300,000. ECF No. 68 at 3. Mr. Balakrishnan identified the closing date as February 6, 2024. Id. TTEC agreed to process the Put Option request provided that Mr. Balakrishnan also complied with his obligations under § 8.02 and § 8.04, which, according to TTEC, included signing a full release—requiring him to dismiss this lawsuit against TTEC. Id. Mr. Balakrishnan refused, claiming that § 8.02 and § 8.04 do not require a release for the Put Option to be exercised. Id. at 4. The central issue before the Court in the instant motions is whether those provisions require Mr. Balakrishnan to sign a full release of all claims prior to exercising

the Put Option. II. PROCEDURAL BACKGROUND Mr. Balakrishnan initiated this lawsuit on May 12, 2023. ECF No. 1. He alleged that TTEC breached its implied obligation under the SPA to support Serendebyte, and that TTEC fraudulently induced him to execute the SPA by falsely representing that it could and would support Serendebyte after the 70% acquisition. See generally id.; ECF No. 47 (Am. Compl.). On November 16, 2023, this Court dismissed without prejudice Mr. Balakrishnan’s claims of unjust enrichment, breach of the implied duty of good faith and fair dealing, and negligent misrepresentation, but it permitted him to proceed with his fraudulent

inducement claim. ECF No. 44. Mr. Balakrishnan filed his Amended Complaint shortly thereafter, maintaining his fraudulent inducement claim and adding a breach of indemnification claim pursuant to the terms of the SPA. See Am. Compl. Since Mr. Balakrishnan exercised the Put Option on December 8, 2023—seven months after filing his lawsuit—the parties have engaged in back-and-forth arguments concerning the purported release. See Countercl., ¶¶ 44–46. Having reached an impasse, on January 30, 2024, TTEC filed an Amended Answer to Mr. Balakrishnan’s Amended Complaint, and at the same time, filed two Counterclaims. TTEC first seeks a declaratory judgment that the SPA requires Mr. Balakrishnan to “execute a full release” of his claims. Id., ¶¶ 77–96. TTEC’s second claim for breach of contract seeks specific

performance of the SPA (i.e., requiring Mr. Balakrishnan to execute a full release of all claims). Id., ¶¶ 97–124. The same day it filed its Counterclaims, TTEC filed its motion for declaratory judgment and motion for specific performance. ECF Nos. 68, 70. TTEC requested expedited determination of both motions; it asked this Court to rule on its January 30, 2024 motions prior to February 6, 2024—the date Mr. Balakrishnan identified as the closing date in his December 8, 2023 exercise notice. Finally, on February 13, 2024, Mr. Balakrishnan moved to dismiss TTEC’s counterclaims. ECF No. 77. These motions are now fully briefed. Finally, the Court notes that discovery is ongoing in this matter. Discovery is currently set to close on July 15, 2024, and the deadline for dispositive motions is August

23, 2024. ECF No. 97. III. LEGAL STANDARDS A. Declaratory Judgment The Declaratory Judgment Act grants courts the authority to “declare the rights and other legal relations of any interested party seeking such declaration, whether or not further relief is or could be sought.” 28 U.S.C. § 2201(a); see also Fed. R. Civ. P. 57 (“These rules govern the procedure for obtaining a declaratory judgment under 28 U.S.C. § 2201.”). “Any such declaration shall have the force and effect of a final judgment or decree and shall be reviewable as such.” 28 U.S.C. § 2201(a). The Federal Rule of Civil Procedure 57 Advisory Committee noted that

[a] declaratory judgment is appropriate when it will “terminate the controversy” giving rise to the proceeding. Inasmuch as it often involves only an issue of law on undisputed or relatively undisputed facts, it operates frequently as a summary proceeding, justifying docketing the case for early hearing as on a motion. Fed. R. Civ. P. 57. B. Specific Performance “Specific performance is an equitable remedy designed to protect a party’s expectation under a contract by compelling the other party to perform its agreed upon obligation.” Sarissa Capital Domestic Fund LP v. Innoviva, Inc., No. 2017-0309-JRS, 2017 WL 6209597, at *26 (Del. Ch. Dec. 8, 2017) (unpublished) (citation omitted).1 “A party seeking specific performance must establish that (1) a valid contract exists, (2) [it] is ready, willing, and able to perform, and (3) that the balance of equities tips in favor of the party seeking performance.” Osborn ex. rel. Osborn v. Kemp, 991 A.2d 1153, 1158 (Del. 2010). C. Federal Rule of Civil Procedure 12(b)(6) Mr. Balakrishnan moves to dismiss the Counterclaims under Federal Rule of Civil Procedure 12(b)(6). ECF No. 77 at 1. Under Rule 12(b)(6), the dispositive inquiry is whether the complaint contains “enough facts to state a claim to relief that is plausible on

its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007).

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Bluebook (online)
Balakrishnan v. TTEC Digital LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/balakrishnan-v-ttec-digital-llc-cod-2024.