Evoqua Water Technologies LLC v. Matthew Moriarty

CourtSupreme Court of Rhode Island
DecidedApril 29, 2025
Docket2023-0250-Appeal.
StatusPublished

This text of Evoqua Water Technologies LLC v. Matthew Moriarty (Evoqua Water Technologies LLC v. Matthew Moriarty) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Evoqua Water Technologies LLC v. Matthew Moriarty, (R.I. 2025).

Opinion

Supreme Court

No. 2023-250-Appeal. (PC 18-7572)

Evoqua Water Technologies LLC, et al. :

v. :

Matthew Moriarty et al. :

NOTICE: This opinion is subject to formal revision before publication in the Rhode Island Reporter. Readers are requested to notify the Opinion Analyst, Supreme Court of Rhode Island, 250 Benefit Street, Providence, Rhode Island 02903, at Telephone (401) 222-3258 or Email opinionanalyst@courts.ri.gov, of any typographical or other formal errors in order that corrections may be made before the opinion is published. Supreme Court

Present: Suttell, C.J., Goldberg, Robinson, Lynch Prata, and Long, JJ.

OPINION

Justice Long, for the Court. The defendant, Matthew Moriarty (defendant

or Mr. Moriarty), appeals from a Superior Court order and judgment dismissing his

amended counterclaim, which sought declaratory relief and tort damages against

Evoqua Water Technologies LLC and Neptune-Benson, LLC (Evoqua and Neptune-

Benson, together, plaintiffs). The trial justice granted the plaintiffs’ motion to

dismiss all but one counterclaim on the basis of the litigation privilege; the remaining

count was dismissed by stipulation of the parties. We affirm the Superior Court’s

order and judgment dismissing Mr. Moriarty’s amended counterclaim.

Facts and Procedural History

The facts of this case flow from Mr. Moriarty’s employment with non-party

Neptune-Benson, Inc. (NBI) and, later, Evoqua. NBI hired Mr. Moriarty in February -1- 2010 as an inside sales representative; and Mr. Moriarty signed a Non-Disclosure,

Non-Solicit, and Non-Compete Agreement (the 2010 agreement) that same month.

The substantive terms in the 2010 agreement are not disputed. The 2010 agreement

barred Mr. Moriarty from engaging in a competing business that marketed, designed,

developed, or sold any competing products, and prevented him from soliciting either

employees or customers of NBI away from NBI upon his departure. The

noncompetition and nonsolicitation provisions in the 2010 agreement were valid for

twenty-four months after the end of Mr. Moriarty’s employment.

Evoqua agreed to purchase Neptune-Benson in April 2016. Evoqua hired Mr.

Moriarty in January 2017 after the dissolution of a corporate entity formerly known

as NBI. The plaintiffs commenced the underlying action against Mr. Moriarty in

October 2018. They sought declaratory relief and asserted causes of action for

breach of contract, breach of the duty of loyalty, unfair competition,

misappropriation of trade secrets, conversion, civil conspiracy, and tortious

interference with business relations, among others, stemming from Mr. Moriarty’s

alleged violations of the 2010 agreement. The plaintiffs contemporaneously sought

injunctive relief to prohibit Mr. Moriarty’s continued alleged violations of the 2010

agreement, and in January 2019 a justice of the Superior Court held a preliminary

injunction hearing. At the hearing, Kenneth Rodi (Mr. Rodi), a former Evoqua

executive, testified that “when Evoqua purchased the stock of Neptune-Benson in

-2- April of 2016 * * * all liabilities and contracts transferred,” including all

employment contracts. Mr. Moriarty alleges that, when he testified at the

preliminary injunction hearing, Mr. Rodi was referring to NBI.

The trial justice granted the preliminary injunction in May 2019. In addition

to ruling that Evoqua had standing to challenge Mr. Moriarty’s alleged violations of

the 2010 agreement, the trial justice’s order enjoined Mr. Moriarty from “engaging

in any activities that violate [the 2010 agreement]” until June 2020—when the 2010

agreement expired.

Mr. Moriarty never appealed the preliminary injunction. Instead, in February

2022, counsel for Mr. Moriarty deposed Mr. Rodi as part of the ongoing litigation.

At that deposition, Mr. Rodi testified that the corporate entity formerly known as

NBI was neither sold nor merged with Evoqua and that, consequently, none of the

assets or contracts of the corporate entity formerly known as NBI transferred to

Evoqua upon its acquisition of Neptune-Benson. The defendant alleges that this

testimony is contrary to his testimony at the hearing on the preliminary injunction.

On the basis of the perceived contradictions between Mr. Rodi’s testimony at

the preliminary injunction hearing and at his deposition, Mr. Moriarty filed an

amended counterclaim asserting that Mr. Rodi had given false and fraudulent

hearing testimony to obtain an injunction, thereby restricting “[Mr.] Moriarty’s

ability to be gainfully employed in the only industry he has worked [in] since

-3- graduating college.” Mr. Moriarty asserted nine causes of action: intentional

infliction of emotional distress arising from the “severe and outrageous misconduct”

of Mr. Rodi’s perjurious testimony which caused emotional and pecuniary distress

(count 1); negligent infliction of emotional distress arising from the same (count 2);

a declaratory judgment that the 2010 agreement is unenforceable as neither plaintiff

was a party, nor successor to a party to the 2010 agreement (count 3); a further

declaratory judgment regarding a secrecy agreement referenced in the underlying

complaint (count 4); constructive discharge triggered by the illegal trade practices

employed by Evoqua which forced him to resign (count 5); negligent

misrepresentation by Mr. Rodi concerning the circumstances surrounding the

acquisition of Neptune-Benson (count 6); fraudulent misrepresentation arising from

the same (count 7); interference with prospective contractual relations caused by the

injunction (count 8); and interference with prospective economic advantages caused

by the same (count 9).

The plaintiffs filed a motion to dismiss Mr. Moriarty’s amended counterclaim.

In their motion, plaintiffs asserted that counts 1, 2, and 6 through 9 were based on

statements made during the preliminary injunction hearing and were therefore barred

by the litigation privilege; that counts 1, 2, 6, and 7 should be dismissed because

they were brought outside the statute of limitations for tort claims; and that counts 1

through 3 and 5 through 9 each fail to state a claim upon which relief could be

-4- granted. Mr. Moriarty opposed the motion to dismiss, arguing that the trial court

should not apply a blanket privilege barring his claims related to Mr. Rodi’s

testimony because the Court should undertake a case-by-case-review, and assess the

public policy implications, of applying the litigation privilege to his allegations.

Furthermore, he argued that his claims were not barred by the statute of limitations

and did not fail to state a claim for relief.

The plaintiffs’ motion to dismiss was heard before a justice of the Superior

Court on November 21, 2022. At the hearing, the trial justice granted the motion to

dismiss. The trial justice explained her reasoning from the bench and cited Ims v.

Town of Portsmouth, 32 A.3d 914 (R.I. 2011), for the proposition that “[a]n absolute

privilege is afforded in the context of judicial proceedings to encourage witnesses to

come forward and speak freely about civil or criminal matters.” Ims, 32 A.3d at 928.

The court was not persuaded by Mr. Moriarty’s claim that the privilege required a

case-by-case analysis; instead, in the trial justice’s view, the “absolute privilege”

required dismissal of all of the counts contested in Mr. Moriarty’s amended

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