ENVIRONMENTAL CONSTRUCTION SERVICES, INC. v. MENTA

CourtDistrict Court, E.D. Pennsylvania
DecidedApril 13, 2022
Docket2:19-cv-03477
StatusUnknown

This text of ENVIRONMENTAL CONSTRUCTION SERVICES, INC. v. MENTA (ENVIRONMENTAL CONSTRUCTION SERVICES, INC. v. MENTA) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ENVIRONMENTAL CONSTRUCTION SERVICES, INC. v. MENTA, (E.D. Pa. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

ENVIRONMENTAL : CIVIL ACTION CONSTRUCTION SERVICES, : INC., et al. : NO. 19-3477 Plaintiffs : : v. : : DOMINIC MENTA, et al. : Defendants :

NITZA I. QUIÑONES ALEJANDRO, J. APRIL 13, 2022

MEMORANDUM OPINION

INTRODUCTION

Plaintiffs Environmental Construction Services, Inc. (“ECSI360”), Element Mechanical Services LLC, and Limbach360, LLC—three related entities in the business of providing full- service construction and engineering services in the HVAC industry (collectively, “Plaintiffs”)— filed this civil action against Defendants Dominic Menta, Environmental Control Services, Inc., and ECSI II, Inc. (collectively, “Defendants”), alleging, inter alia, violations of the Racketeer Influence and Corrupt Organizations Act (“RICO”), 18 U.S.C. § 1961 et seq., and the Lanham Act, 15 U.S.C. § 1125, as well as state law claims for tortious interference with prospective contracts.1 In response to Plaintiffs’ complaint, Dominic Menta, Environmental Control Solutions, Inc., and ESCI II, Inc., asserted a number of counterclaims and third-party claims against Michael

1 Plaintiffs also assert claims for breach of fiduciary duty (Count III) and conversion (Count VII) against Menta, on which Defendants have not moved for summary judgment. In addition, Plaintiffs assert claims against Defendants for violations of the Defend Trade Secrets Act of 2016, 18 U.S.C. § 1836 et seq., (Count V) and the Pennsylvania Uniform Trade Secrets Act, 12 Pa. Cons. Stat. § 5301 (Count VI). However, in their response to Defendants’ underlying motion, Plaintiffs concede that these claims “lack sufficient support to survive summary judgment.” (Pls. Opp., ECF 104, at p. 1 n.1). Accordingly, summary judgment is granted with respect to Counts V and VI of the complaint. Brown and ECSI360 premised on purported loans that these parties made to Brown and ECSI360 that have not been repaid. Before this Court is Defendants’ motion for partial summary judgment filed pursuant to Federal Rule of Civil Procedure (“Rule”) 56, in which Defendants seek judgment with respect to

Plaintiffs’ RICO, Lanham Act, and state law tortious interference claims. Defendants also seek summary judgment with respect to their own counterclaims and third-party claims for breach of contract. [ECF 99]. Plaintiffs oppose the motion. [ECF 104]. The issues raised by the parties have been fully briefed and are ripe for disposition.2 For the reasons set forth herein, Defendants’ motion is granted with respect to Plaintiffs’ RICO, Lanham Act, and tortious interference claims, and denied with respect to Defendants’ counterclaims and third-party breach of contract claims.

BACKGROUND In their operative complaint, Plaintiffs assert numerous claims against Defendants, all premised upon Defendants’ various participation in an alleged scheme to divert business opportunities and existing business away from Plaintiffs and toward Defendants. Following the completion of discovery, Defendants filed the instant partial motion for summary judgment, arguing, inter alia, that Plaintiffs have failed to proffer sufficient evidence to meet their summary judgment burdens on their RICO, Lanham Act, and tortious interference claims. Plaintiffs disagree. When ruling on a motion for summary judgment, a court must consider all record evidence

and supported relevant facts in the light most favorable to the non-movant—here, Plaintiffs. See

2 This Court has also considered Defendant’ reply. [ECF 112]. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986); Galena v. Leone, 638 F.3d 186, 196 (3d Cir. 2011). The facts relevant to the underlying motions are summarized as follows: 3 Plaintiff ECSI360 is a full-service construction and engineering firm in the HVAC industry formed in July 2010 by Michael Brown (“Brown”) and Defendant Dominic Menta (“Menta”). Brown is the majority owner of ECSI360; Menta is the minority owner. Brown serves as ECSI360’s President and Chief Executive Officer, and Menta serves as its Vice President and Secretary. Plaintiffs Element Mechanical Services LLC (“Element”) and Limbach360, LLC (“Limbach360”) are wholly owned subsidiaries of ECSI360.

Because it is majority-owned by Brown, a businessman of African American and Spanish descent, ECSI360 is a certified minority business enterprise (“MBE”). ECSI360s’s MBE status provides ECSI360 unique opportunities to bid on certain government work that is only available to MBEs.

Menta also wholly owns two other companies—Defendants Environmental Control Services, Inc., and ECSI II, Inc., (collectively, “Environmental Control Services”). Environmental Control Services offers air duct cleaning and sealing, air pollution control, dust collection, air filtration, industrial ventilation, and odor control services. Prior to incorporating ECSI360, Brown knew that Menta operated these other companies in the HVAC business and that Menta would continue to operate those businesses. Brown also understood that Menta and the companies that he alone owned and operated were not prohibited from bidding on all projects for which they alone were solicited or projects that fell within their particular areas of expertise without necessarily including ECSI360.

In the summer of 2019, Brown purportedly discovered that Menta had been exploiting various aspects and resources of ECSI360 to advance his own financial interests and those of his other companies.4 Based on this purported discovery, Brown commenced this action.

3 These facts are taken from the parties’ briefs, exhibits, and statements of facts. To the extent that any facts are disputed, such disputes will be noted and, if material, will be construed in Plaintiffs’ favor pursuant to Rule 56.

4 Though Plaintiffs, of course, bear the burden of presenting evidence sufficient to substantiate their factual allegations, Plaintiffs’ brief is bereft of citations to record evidence to support many of their otherwise bald contentions of wrongful exploitation. (See, e.g., Pls. Opp., ECF 104, at p. 7). Plaintiffs’ evidence, or lack thereof, is discussed in greater detail in this opinion. LEGAL STANDARD Rule 56 governs summary judgment motion practice. Fed. R. Civ. P. 56. Specifically, this Rule provides that summary judgment is appropriate “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Id. A

fact is “material” if proof of its existence or non-existence might affect the outcome of the litigation, and a dispute is “genuine” if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson, 477 U.S. at 248. When evaluating a motion under Rule 56, the court must view the evidence in the light most favorable to the nonmoving party. Galena, 638 F.3d at 196. Pursuant to Rule 56, the movant bears the initial burden of informing the court of the basis for the motion and identifying those portions of the record that the movant “believes demonstrate the absence of a genuine issue of material fact.” Celotex Corp.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hemi Group, LLC v. City of New York
559 U.S. 1 (Supreme Court, 2010)
Sedima, S. P. R. L. v. Imrex Co.
473 U.S. 479 (Supreme Court, 1985)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Galena Ex Rel. Erie County v. Leone
638 F.3d 186 (Third Circuit, 2011)
Redick v. Kraft, Inc.
745 F. Supp. 296 (E.D. Pennsylvania, 1990)
Thompson Coal Co. v. Pike Coal Co.
412 A.2d 466 (Supreme Court of Pennsylvania, 1979)
Lexmark Int'l, Inc. v. Static Control Components, Inc.
134 S. Ct. 1377 (Supreme Court, 2014)
Infosage, Inc. v. Mellon Ventures, L.P.
896 A.2d 616 (Superior Court of Pennsylvania, 2006)
Maio v. Aetna, Inc.
221 F.3d 472 (Third Circuit, 2000)
Bailey v. Reed
29 F. App'x 874 (Third Circuit, 2002)
Frompovicz v. Niagara Bottling, LLC
313 F. Supp. 3d 603 (E.D. Pennsylvania, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
ENVIRONMENTAL CONSTRUCTION SERVICES, INC. v. MENTA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/environmental-construction-services-inc-v-menta-paed-2022.