G & E Real Estate, Inc. v. Avison Young - Washington, D.C., LLC

168 F. Supp. 3d 147, 2016 U.S. Dist. LEXIS 23439, 2016 WL 777908
CourtDistrict Court, District of Columbia
DecidedFebruary 26, 2016
DocketCivil Action No. 2014-0418
StatusPublished
Cited by19 cases

This text of 168 F. Supp. 3d 147 (G & E Real Estate, Inc. v. Avison Young - Washington, D.C., LLC) 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.

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G & E Real Estate, Inc. v. Avison Young - Washington, D.C., LLC, 168 F. Supp. 3d 147, 2016 U.S. Dist. LEXIS 23439, 2016 WL 777908 (D.D.C. 2016).

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, United States District Judge

This case amounts to a dispute among real estate brokerage firms and associated real estate professionals — specifically professionals who decamped from one of those firms, Grubb & Ellis, Inc., to a competitor firm — in connection with the lease of a commercial space in Northern Virginia. The parties agree that, on June 8, 2012, Analytic Services, Inc. (“ANSER”) entered into a lease for the Skyline Property in Falls Church, Virginia, and a real estate commission payment of $1,225,000 was made to Avison Young — Washington, D.C., LLC (“Avison Young”). But they do not agree on several aspects of what happened prior to the signing of this lease and whether, legally, that creates liability in tort or contract for the several defendants. Plaintiff G&E Real Estate, Inc. — whose relationship to Grubb & Ellis is disputed 1 —brings claims in tort and in contract against ANSER, against real estate pro *150 fessionals Joseph Peyton, Bruce McNair, and David Roehrenbeck, and against Avi-son Young. The Court refers to the real estate professionals and Avison Young, collectively, as the “Avison Young Defendants.” Specifically, Plaintiff brings the following claims against various defendants:

• a breach of contract claim against ANSER, claiming a breach of the “Exclusive Tenant Representation Agreement” (count I);
• a claim for tortious interference with contract against the Avison Young Defendants (count II);
• a claim for unjust enrichment against Avison Young (count III);
• a claim for breach of contract against Bruce McNair, alleging a breach of his employment agreement (count IV);
• a claim for breach of contract against David Roehrenbeck, alleging a breach of his employment agreement (count V);
• a claim for breach of contract against Joseph Peyton, alleging a breach of his independent contractor agreement (count VI);
• claims for breach of fiduciary duty against McNair (count VII) and against Roehrenbeck (count VIII);
• a claim for misappropriation of trade secrets against McNair, Roehrenbeck and Avison Young (count IX);
• and a Virginia statutory conspiracy claim against the Avison Young Defendants (count X). 2

The defendants have moved for summary judgment on each of the claims remaining in this action. Before the Court is AN-SER’s [125] Motion for Summary Judgment with respect to the breach of contract claim, the only remaining claim against it. Also before the Court is the Avison Young Defendants’ [127] Motion for Summary Judgment with respect to all claims against those defendants. Upon consideration of the pleadings, 3 the relevant legal authorities, and the record for purposes of this motion, the Court GRANTS ANSER’s [125] Motion for Summary Judgment, and 'the Court GRANTS IN PART and DENIES IN PART the Avison Young Defendants’ [127] Motion for Summary Judgment. Specifically, the Court GRANTS the Avison Young Defendants’ motion with respect to the tortious interference with contract claim (count II); the unjust enrichment claim (count III); the breach of contract claim against Joseph Peyton (count VI); the breach of fiduciary duty claim against Roehrenbeck (count VIII); the trade secrets claim (Count IX); and the Virginia statutory conspiracy claim (count X). The Court DENIES that motion with respect to the breach of contract claims against McNair and Roehrenbeck (counts IV and V). Finally, the Court DENIES IN PART and GRANTS IN PART *151 that motion with respect to the breach of fiduciary duty claim against McNair (count VII), as explained below. In short, for the reasons explained below, the only claims that survive summary judgment are the contract claims against McNair and Roeh-renbeck and, to the extent explained below, the fiduciary duty claim against McNair.

I. BACKGROUND

In light of the numerous claims in this case and the two pending motions for summary judgment, the Court provides a brief overview of the factual background of this case — presenting the facts in the light most favorable to Plaintiff, here the non-moving party, as the Court must in considering motions for summary judgment. 4 The Court reserves additional presentation of the pertinent facts for the discussion of the individual claims below.

In August 2009, ANSER selected Grubb & Ellis as its real estate broker. ANSER’s Statement of Material Facts Not in Dispute (“ANSER’s Statement”), ECF No. 125-1, ¶ 1. After a series of intervening events discussed below, the agreement was renewed on October 10, 2011. Id. ¶'2. Pursuant to the renewed agreement, in exchange for the real estate services Grubb & Ellis agreed to provide, ANSER agreed to “openly disclose to all interested parties that [it had] engaged [Grubb & Ellis’s] services ... and that ANSER recognizes [Grubb & Ellis] as your exclusive real estate representative.” Id. ¶ 5 (quoting 2011 agreement).

On February 20, 2012, Grubb & Ellis filed for bankruptcy protection under Chapter 11 of the Bankruptcy Code. Id. ¶ 14. Through the bankruptcy proceedings, BGC Partners, Inc. (“BGC”), purchased certain assets of Grubb & Ellis. 5 Id. ¶ 19. This purchase agreement included certain specified executory contracts. Id. ¶¶ 20-23. ANSER’s lease with landlord Vornado for the Skyline Property was executed on June 8, 2012. Id. ¶ 18. Pursuant to the terms of the lease and a commission agreement between Vornado and Avison Young, id. ¶¶ 16, 18, a commission of $1,225,000 was paid to Avison Young. Pl.’s ANSER Statement ¶ 32.

The Court now briefly introduces several real estate professionals involved with this case:

• Joseph Peyton. Beginning on August 20, 2009, Peyton provided brokerage services to ANSER through Grubb & Ellis as an independent contractor. 6 *152 Id. ¶ 7. Peyton resigned from his role at Grubb & Ellis on March 2, 2010. ANSER’s Statement ¶ 8. Thereafter, he joined Avison Young. Id.
• Bruce McNair. Beginning on August 20, 2009, McNair provided brokerage services to ANSER as an employee of Grubb & Ellis. Id. ¶ 7. McNair gave notice of his resignation from employment with Grubb & Ellis on February 13, 2012, and began employment with Avison Young on that same day. Id. ¶ 11.
• David Roehrenbeck. Roehrenbeck began working for Grubb & Ellis as an analyst for the McNair Morris Team in April 2009.

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168 F. Supp. 3d 147, 2016 U.S. Dist. LEXIS 23439, 2016 WL 777908, Counsel Stack Legal Research, https://law.counselstack.com/opinion/g-e-real-estate-inc-v-avison-young-washington-dc-llc-dcd-2016.