Fort Myer Construction Corporation v. Shrensky

CourtDistrict Court, District of Columbia
DecidedJanuary 17, 2024
DocketCivil Action No. 2023-2275
StatusPublished

This text of Fort Myer Construction Corporation v. Shrensky (Fort Myer Construction Corporation v. Shrensky) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fort Myer Construction Corporation v. Shrensky, (D.D.C. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

FORT MYER CONSTRUCTION CORPORATION,

Plaintiff,

v. Civil Action No. 1:23-cv-02275 (CJN)

LEWIS F. SHRENSKY,

Defendant.

MEMORANDUM OPINION

Lewis Shrensky claims that his termination by Fort Myer Construction Corporation was

improper. He seeks a preliminary injunction temporarily reinstating him. See Mot. for Prelim.

Inj., ECF No. 12. He also seeks to disqualify Fort Myer’s counsel. See Mot. to Disqualify, ECF

No.7. For the following reasons, the Court denies both motions.

I. Background

This case arises out of a dispute between movant, Lewis Shrensky, and the business he

helped found a half century ago, Fort Myer Construction Corporation. Countercl. ¶ 6, ECF No.

11. Until recently, Shrensky was Fort Myer’s executive vice president; the company’s co-founder,

Jose Rodriguez, is its president. Shrensky’s and Rodriguez’s revocable trusts each hold 50% of

the company’s voting shares. Countercl. ¶¶ 12–13. And the pair comprises half of the company’s

four-person board of directors. Countercl. ¶ 11.

For decades Shrensky and Rodriguez “maintained a close personal friendship throughout

their years of running one of the most successful paving and infrastructure contracting companies

in the region.” Countercl. ¶ 16. What changed is disputed. Shrensky contends that Rodriguez’s

1 daughter improperly inserted herself into the company and along with others conspired to oust

Shrensky, leading to his termination. See Mem. in Supp. of Mot. for Prelim. Inj. at 3–10, ECF No.

13 (“Shrensky’s Br.”). Fort Myer asserts that Shrensky is the one who attempted a power grab,

including by forging Rodriguez’s signature on a consent resolution in an effort to gain further

authority within the company. Mem. in Opp. To Mot. for Prelim Inj. at 4–8, ECF 16 (“Fort Myer’s

Br.”). The company alleges that Shrensky also forged Rodriguez’s signature on several other

agreements and engaged in other erratic behavior, such as threatening to “burn the company to the

ground,” threatening to seek judicial dissolution of the company, and interfering with Fort Myer’s

banking relationships. Id. at 8–16. Fort Myer says that it fired Shrensky because of this

misconduct.

What is clear is that Shrensky was fired and litigation ensued. This case began when Fort

Myer sued Shrensky for breach of fiduciary duty and tortious interference with contractual

relations. See generally Compl., ECF 1. After moving to disqualify Fort Myer’s counsel,

Shrensky filed a counterclaim alleging wrongful termination and related theories. See generally

Countercl. He also moved for a preliminary injunction. See Mot. for Prelim. Inj. The motion

seeks (1) “an order that Fort Myer’s termination of Mr. Shrensky was ultra vires and in violation

of the Fort Myer Bylaws and his Employment Agreement”; (2) “an order reinstating Mr. Shrensky

as Fort Myer’s Executive Vice President”; and (3) “an order reinstating Mr. Shrensky as an

authorized signatory on all Company bank and other accounts.” Id. at 3.

Shrensky’s theory is that Fort Myer lacked authority to fire him. He points primarily to

three documents. First, he claims that his firing violated his employment agreement. See

Shrensky’s Br. at 13–15. That agreement states that “[s]ubject to the provisions for termination as

hereinafter provided . . . this Agreement shall automatically be renewed on a month-to-month

2 basis unless either party gives the other written notice to terminate, which must be given at least

sixty (60) days prior to the intended termination date.” Ex. 12, Countercl. at ¶ 2. Later on, the

agreement states that “termination of employment . . . shall occur upon the happening of” a series

of events, for example if he “fails or refuses to comply with the reasonable policies, standards, and

regulations of” Fort Myer; if he conducts himself in an “unethical, immoral, or fraudulent manner”;

or if he “discredits [Fort Myer] or is detrimental to the reputation, character and standing of” the

company. Id. at ¶ 12. Shrensky argues that Fort Myer violated the agreement by terminating him

without 60 days’ notice. See Shrensky’s Br. at 13–15. Fort Myer responds by, among other things,

contending that the 60-day notice provision is for termination without cause, and that termination

for cause (under one of the enumerated scenarios) can be done without notice. Fort Myer’s Br. at

24.

Shrensky also relies on the company’s bylaws, which state that “[a]ny officer elected or

appointed by the Board of Directors may be removed with or without cause at any time by the

affirmative vote of a majority of the whole Board of Directors.” Ex. 3, Countercl. Shrensky argues

that he is a qualifying officer and that the company violated the bylaws by firing him without a

vote of the Board. Shrensky’s Br. at 14–15. Along with other arguments, Fort Myer points out

that the provision says “may” and suggests that a Board vote was not required because this bylaw

provision does not provide the sole route for removing an officer. Fort Myer’s Br. at 18–23.

Finally, Shrensky relies on a 2019 consent resolution that states that the “Executive Vice-

President shall share equally the powers vested in the office of President.” Ex. 5, Countercl.

Shrensky posits that if he and the President are co-equals, neither has the authority to fire the other,

making his firing improper. See Shrensky’s Br. at 15. Fort Myer says that the consent resolution

3 does not do what Shrensky claims, and is, in any event, ineffective because Shrensky forged some

of the required signatures. Fort Myer’s Br. at 25–26.

II. Motion for Preliminary Injunction

A. Legal Standards

“A preliminary injunction is an extraordinary remedy that should be granted only when the

party seeking the relief, by a clear showing, carries the burden of persuasion.” Cobell v. Norton,

391 F.3d 251, 258 (D.C. Cir. 2004) (citing Mazurek v. Armstrong, 520 U.S. 968, 972 (1997)). A

plaintiff seeking such relief must demonstrate that (1) it has a likelihood of succeeding on the

merits, (2) it faces irreparable harm if an injunction does not issue, (3) the balance of equities

favors relief, and (4) an injunction is in the public interest. Winter v. Nat’l Res. Def. Council, Inc.,

555 U.S. 7, 20 (2008).

A plaintiff must make “a clear showing that” it is “entitled to such relief.” Winter, 555

U.S. at 22. And while the Court of Appeals has not yet directly held that a plaintiff must make a

clear showing on each of the four Winter factors, considered dicta in this jurisdiction favors that

approach. See In re Navy Chaplaincy, 738 F.3d 425, 428 (D.C. Cir. 2013) (demanding proof on

all four prongs); Davis v. Pension Benefit Guar. Corp., 571 F.3d 1288, 1296 (2009) (Kavanaugh,

J., concurring) (observing that, after Winter, “the old sliding-scale approach to preliminary

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