Coan v. Tremont Advisors, Inc.

129 F. Supp. 2d 113, 2001 U.S. Dist. LEXIS 482, 2001 WL 43774
CourtDistrict Court, D. Connecticut
DecidedJanuary 9, 2001
Docket3:98 CV 1705 SRU
StatusPublished
Cited by1 cases

This text of 129 F. Supp. 2d 113 (Coan v. Tremont Advisors, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coan v. Tremont Advisors, Inc., 129 F. Supp. 2d 113, 2001 U.S. Dist. LEXIS 482, 2001 WL 43774 (D. Conn. 2001).

Opinion

RULING ON MOTION TO DISMISS

UNDERHILL, District Judge.

William Vasu 1 brought various New York common law claims against his former employer, Tremont Advisors, Inc., (“Tremont”), 2 for terminating him without cause before his alleged two-year employment contract had expired. Tremont has moved to dismiss and Vasu has objected. For the foregoing reasons, Tremont’s motion to dismiss (Doc. #25) is granted in part and denied in part.

1. FACTS

The court accepts the facts alleged in the complaint as true for the purposes of the present motion. In May 1997, Tre-mont hired Vasu as a managing director of Tremont’s offshore insurance subsidiary. Complaint (“Compl.”) dated May 12, 1998 at ¶¶ 7, 9. Tremont set forth the terms and conditions of Vasu’s employment in a letter dated May 16, 1997 (“Letter”). See Letter attached to Compl.; Compl. ¶¶ 9-16. On June 1, 1997, Vasu began working for Tre-mont. Id. at. ¶ 10. In addition to the Letter,. Tremont made representations and assurances and provided instructions, directions, and supervision to Vasu, promising to employ Vasu on the same terms as did the Letter. Id. at ¶ 22-24.

On September 30, 1997, Tremont fired Vasu with no explanation and without cause, after the expiration of any applicable probationary period and before the expiration of the two-year term of employment in the Letter. Id. at. ¶¶ 18, 32. Tremont did not pay Vasu the wages that were due him under the Letter. Id. at ¶ 40. Tremont terminated Vasu knowing it would interfere with Vasu’s ability to “realize the financial benefits of the contacts he had made with potential Investors” and for the purpose of avoiding paying Vasu an “Incentive Bonus, the Equity Interest and other compensation.” Id. at ¶¶ 48, 53.

On November 7, 1997, Vasu and his wife filed a voluntary petition for relief under Chapter 7 of the Bankruptcy Code. Id. at ¶ 4. Richard M. Coan was appointed Trustee for Vasu. Id. at ¶ 5.

On May 12, 1998, Coan, as Trustee, sued Tremont in Bankruptcy Court for claims arising out of Vasu’s pre-petition employment with Tremont. The complaint alleged breach of express and im *116 plied contract, promissory estoppel, unjust enrichment, violation of good faith and fair dealing, interference with financial benefits under prima facie tort, violation of New York Labor Law §§ 190, et seq., and defamation.

On August 20, 1998, the District Court granted Tremont’s motion to withdraw the reference. On September 22, 1999, the District Court granted Tremont’s motion to stay the case pending arbitration with respect to the defamation claim in Count IX. On October 18, 1999, Tremont moved to dismiss the remaining eight counts. On December 12, 1999, the plaintiff objected to Tremont’s motion to dismiss.

II. DISCUSSION

A. Standard of Review for a Motion to Dismiss

When deciding a motion to dismiss under Rule 12(b)(6), the court must accept as true all factual allegations in the complaint and must construe any well pleaded factual allegations in the plaintiffs favor. See Albright v. Oliver, 510 U.S. 266, 268, 114 S.Ct. 807, 127 L.Ed.2d 114 (1994); Boyd v. Nationwide Mut. Insurance Co., 208 F.3d 406, 409 (2d Cir.2000). In addition, the court must draw all reasonable inferences in the light most favorable to the plaintiff. See Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974). Dismissal is not warranted “unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957); see also Kittay v. Kornstein, 230 F.3d 531, 537-38 (2d Cir.2000). The issue on a motion to dismiss “is not whether the plaintiff will prevail, but whether he is entitled to offer evidence to support his claims.” United States v. Yale New Haven Hosp., 727 F.Supp. 784, 786 (D.Conn.1990) (citing Scheuer, 416 U.S. at 236, 94 S.Ct. 1683).

Under Rule 12(b)(6), a court may dismiss a claim for either “(1) the lack of a cognizable legal theory; or (2) the absence of factual assertions to support a claim.” Titan Sports, Inc. v. Hellwig, 1999 WL 301695 at *5 (D.Conn.1999) (citations omitted). “To withstand a motion to dismiss, a complaint must allege facts setting forth all of the essential elements of a viable legal theory....” Id. at *12. Bald assertions and conclusions of law unsupported by factual allegations will not defeat a motion to dismiss, despite the liberal pleading standard. Id.; DeJesus v. Sears, 87 F.3d 65, 70 (2d Cir.1996); Leeds v. Mettz, 85 F.3d 51, 53 (2d Cir.1996). In deciding such a motion, a district court must “limit itself to the facts stated in the complaint, documents attached to the complaint as exhibits and documents incorporated by reference in the complaint.” Hayden v. County of Nassau, 180 F.3d 42, 54 (2d Cir.1999).

B. Analysis

This court has jurisdiction pursuant to 28 U.S.C. § 1334. The parties agree that New York law applies. See Plaintiff's Brief dated Dec. 2, 1999 (“PLBrief’) at 3; Defendant’s Brief dated Oct. 18, 1999 (“Def.Brief’) at 4-6; Wells Fargo Asia Ltd. v. Citibank, N.A., 936 F.2d 723, 726 (2d Cir.), cert. denied, 505 U.S. 1204, 112 S.Ct. 2990, 120 L.Ed.2d 868 (1992); In re Bidermann Industries USA Inc., 241 B.R. 76, 82 (S.D.N.Y.1999).

The gravamen of Vasu’s claim is that Tremont, his former employer, wrongfully discharged him without cause: (1) to deny Vasu compensation that was due or soon to be due; and (2) before Vasu’s two-year term of employment had expired.

Vasu’s complaint does not specifically identify the legal theories underlying each of his claims. Accordingly, Tremont and Vasu have characterized the claims under different legal theories in their respective memoranda. The court will, therefore, address each of Vasu’s claims under the legal theory apparently set forth by the pleading and, where appropriate, will address other possible bases for relief.

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129 F. Supp. 2d 113, 2001 U.S. Dist. LEXIS 482, 2001 WL 43774, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coan-v-tremont-advisors-inc-ctd-2001.