DeWitt Stern Group, Inc. v. Eisenberg

257 F. Supp. 3d 542
CourtDistrict Court, S.D. New York
DecidedJune 26, 2017
Docket13 Civ. 3060
StatusPublished
Cited by14 cases

This text of 257 F. Supp. 3d 542 (DeWitt Stern Group, Inc. v. Eisenberg) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeWitt Stern Group, Inc. v. Eisenberg, 257 F. Supp. 3d 542 (S.D.N.Y. 2017).

Opinion

OPINION

ROBERT W. SWEET, U.S.D.J.

Defendants Richard Eisenberg (“Eisen-berg”) and Arthur J. Gallagher Risk Management Services, Inc. (“AJG”) (collectively, “Defendants”), have moved pursuant to Fed. R.- Civ. P. 56 for summary judgment to dismiss the claims of Plaintiff DeWitt Stern Group, Inc. (“DeWitt” or the “Plaintiff’) as set forth in the Second Amended Complaint (“SAC”). DeWitt has moved pursuant to Fed. R. Civ. P. 56 for summary judgment on the same, as well as summary judgment dismissing Eisenberg’s counterclaims. Defendants have also [547]*547moved to exclude the testimony and report of Plaintiffs expert Pamela M. O’Neill (the “O’Neill Testimony and Report”). ■

Based upon -the facts and conclusions set forth below, Defendants’ motion for summary judgment dismissing the SAC is granted, Plaintiffs motion for summary judgment granting the SAC is denied, Plaintiffs motion for summary judgment dismissing, Eisenberg’s counterclaims . is granted, and Defendants’ motion to exclude the O’Neill Testimony and Report is dismissed as moot.

Prior Proceedings

On May 6, 2013, DeWitt initiated the present action based upon the employment agreements between, the parties relative to the brokerage of insurance for entertainment producers. (Dkt. 1.) A preliminary injunction barring violation by Eisenberg of his employment agreement was entered June 4, 2013. (Dkt. 12.)

On June 18, 2013, DeWitt filed his First Amended Complaint (“FAC”), which added AJG as a defendant. (Dkt. 15.) The FAC contained the following causes of action: claim for declaratory relief (Count I); breach of contract against Eisenberg (Count II); misappropriation of confidential information and/or trade secrets against Eisenberg and AJG (Count III); breach of fiduciary duty against Eisenberg (Count IV); breach of duty of loyalty against Eisenberg (Count V); preliminary and permanent injunctive relief against Ei-senberg (Count VI); tortious interference with contractual relations against AJG (Count VII); aiding and abetting breach of duties against AJG (Count VIII); unfair competition against Eisenberg and AJG (Count IX); and intentional interference with business relations against Eisenberg and AJG (Count X). (Id.) On July 12, 2013, Defendants timely filed their answer to the FAC, in which Eisenberg filed counterclaims against DeWitt asserting breach of employment agreement, unjust enrichment/restitution, and failure to pay wages under the New York Labor law. (Dkt. 18.)

On July 17, 2013, DeWitt filed an application for sanctions, claiming that Eisen-berg and AJG had violated the terms of the Court’s June 4, 2013 order by Eisen-berg’s continued solicitation of-customers with whom he had pre-existing relationships prior to joining DeWitt. (Dkt. 22.) On October 29, 2013, DéWitt’S application for sanctions was denied. (Dkt. 39.)

On April 9, 2014, Plaintiffs motion to amend the FAC was granted in part and denied in part. (Dkt. 57.) On April 16,2014, DeWitt filed the SAC,containing the same claims as the FAC but adding its claim for unjust enrichment against Eisenberg (Count XI). (Dkt.- 60.) Defendants’ timely filed their answer to the SAC on April 30, 2014. (Dkt. 61.) DeWitt filed its answer to Eisenberg’s counterclaims on May 12, 2014. (Dkt. 62.) The parties completed discovery in May 2016.

On August 5,-2016, Defendants moved for summary judgment on the SAC, (Dkt. 106), and 'to' exclude the O’Neill Testimony and Report, (Dkt. 110). On the same day, Plaintiff moved for summary judgment on the SAC, (Dkt. 112), arid on Eisenberg’s counterclaims, (Dkt. 116). The instant motions were heard and marked fully submitted on December 15,2016.

The Facts

1. The Facts as Relevant to Defendants’ Motion for Summary Judgment

With respect to Defendants’ motion for summary judgments, the following facts are set forth in Defendants’ Statement of Undisputed Material Facts Pursuant to Local Rule 56.1 (“Defs.’ 56.1”), (Dkt. 108), Plaintiffs Counterstatement of Facts Pursuant to Local Rule 56.1 (“PL’s Counter 56.1”), (Dkt. 147), and accompanying declarations and exhibits, which together form [548]*548the basis of the following factual recitation. The facts are not in dispute except as otherwise noted.

1. The nature of the entertainment insurance industry is disputed. Defendants describe it as small compared to the general insurance industry and one driven almost entirely by personal relationships, a field where relationships are the primary source of repeat business. (Declarations of Peter J. Biging dated October 5, 2016 (“Biging Decl”), Dkts. 125 and 126, Exs. 11 and GG, and Declarations of Aaron Warshaw dated August 5, 2016 and October 7, 2016 (“Warshaw Decl.”), Dkts. 109 and 140, Ex. C (together, “Hamby Dep.”), at 48:14-50:2.) By contrast, DeWitt contends that while “there are a lot of firms” in the entertainment industry, it is only in terms of “the number of insurance brokerage agencies that write entertainment insurance” that the industry is small when compared to the general insurance industry. (Hamby Dep. at 49:21-25.)

2. In the entertainment insurance business, clients include film and television production companies, advertising agencies, event production companies, event venues, and theaters. (Hamby Dep. at 22:9-14.) These clients may move between projects and companies, but the clients can continue to work with the same insurance brokers. (Hamby Dep. at 50:3-12.) Plaintiff augments this description by noting that not all client do continue to work with the same insurance brokers, and that industry clients tend to switch brokers around fifty-percent of the time. (Hamby Dep. at 50:3-12.)

3. The identities of the decision-makers who make purchases in the entertainment insurance industry are generally known throughout the industry. (See Hamby Dep. at 56:19-57:2.)

4. Numerous industry resources (e.g., Deadline.com, Variety, and IMDb Pro) exist that contain key information regarding new films that are about to go into production, as well as regarding key comings and goings in the entertainment industry. (Hamby Dep. at 79:2-81:11.) These resources are available to everyone. (Id.) Plaintiff notes, however, that such resources do not necessarily contain every movie, contact information, movie scripts, cast logs, or other kinds of information.

5. Defendants state that types of insurance coverages placed for clients in the entertainment insurance industry are not a secret, and any competent broker in the industry would know what the coverages consist of. (Hamby Dep. at 55:12-22.) Plaintiff contends that while those in the insurance industry may generally know what types may be available, they do not know the specific details, and that not every insurance broker knows the particular client’s preferences, risk tolerances, desires and concerns of key account contacts, insurance programs in place, and other such detail.

6. A broker can request policy information, including expiration information and account characteristics, directly from a client, even if that broker is not the broker of record (“BOR”), and the client is free to provide that information to a competing broker because the information belongs to the client. (Warshaw Deck, Ex. B, and Biging Decl., Ex. Y (together, “Johnson Dep.”), at 121:12-18, 121:25-124:16, 128:22-130:8.)

7.

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257 F. Supp. 3d 542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dewitt-stern-group-inc-v-eisenberg-nysd-2017.