Gold v. Maurer

251 F. Supp. 3d 127, 2017 WL 1628873, 2017 U.S. Dist. LEXIS 65687
CourtDistrict Court, District of Columbia
DecidedMay 1, 2017
DocketCivil Action No. 2017-0734
StatusPublished
Cited by1 cases

This text of 251 F. Supp. 3d 127 (Gold v. Maurer) 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
Gold v. Maurer, 251 F. Supp. 3d 127, 2017 WL 1628873, 2017 U.S. Dist. LEXIS 65687 (D.D.C. 2017).

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, United States District Judge

Plaintiffs are three executives of a financial services provider who seek injunctive relief against Defendant, a former executive, to preclude him from repeating certain allegedly defamatory statements at an impending business meeting. Presently before the Court is Plaintiffs’ [2] .Motion for a Temporary Restraining Order and Injunction in Aid of Arbitration (“TRO Motion”). Upon consideration of the pleadings, 1 the relevant legal authorities, and the record for purposes of the pending motion, the Court concludes that none of the preliminary injunction factors weigh in favor of granting injunctive relief in this matter. Accordingly, Plaintiffs’ [2] TRO Motion is DENIED.

I. BACKGROUND

Plaintiffs are all directors of Steward Partners .Holding, LLC, which provides “multifaceted financial solutions, and ‘platinum’ level service to clients and their families” through , a wholly-owned subsidiary, Steward Partners Global Advisory (collectively, “Steward”). Compl. ¶ 1. Plaintiff James - Gold serves as Chief Executive Office of the company, Plaintiff Michael McMahon is the Chairman of the Board of Directors, and Plaintiff Hy Saporta is the President and Chief Operating Officer. Id. ¶¶ 2-4. Defendant Michael Maurer was a founding member of Steward, and also a Director of the company until he was removed from his position by the Board- of Directors in January 2017; allegedly for' cause. Id. ¶ 5; Dfecl. of Michael Maurer, ECF No. 10-1, ¶ 38. This action concerns certain statements that Defendant állegedly made prior to and shortly after his separation from Steward. The Court reserves its presentation of the content and context of these statements for its discussion of Plaintiffs’ likelihood of success on the merits, below.

On April 19, 2017, Plaintiffs and Steward filed a demand for arbitration before the American Arbitration Association (“AAA”), seeking relief in the form of damages and a permanent injunction for claims of defamation—premised on the same statements. that underlie the TRO Motion—as well as breach of fiduciary duty and breach of contract. Compl. ¶ 11. The arbitration was brought pursuant to an arbitration agree *130 ment in a series of contracts to which all of the parties are signatories, and no party contests the propriety of arbitration. Compl. ¶ 7. On April 20, 2017, the day after filing their demand for arbitration, Plaintiffs filed the TRO Motion with this Court. According to that motion, Defendant Maurer had allegedly scheduled a meeting, for as early as the week of April 24, 2017, “with executives of [a] financial: company which provides essential services to Steward ...." TRO Mot. at 9. Plaintiffs claimed'that,.at this meeting, Defendant intended to “publish additional defamatory statements.” Id. As. a result, Plaintiffs sought emergency injunctive relief “solely for the purposes of aiding or preserving Plaintiffs’ legal rights that are being decided by arbitration,” and requested that the Court issue a temporary restraining order and preliminary injunction “prohibiting Defendant, directly or indirectly, from disparaging any of the Plaintiffs and/or Steward pending the resolution of the underlying claims .in arbitration ...." TRO Mot. at 9, 14.

Shortly after receiving the TRO Motion, the Court held a telephonic conference attended by counsel for both parties. Defense, counsel represented that the meeting referenced in the TRO Motion, allegedly with a financial services company that the Court shall refer to simply as the “Business Partner,” was unlikely to occur before mid-May. Minute Order, April 20, 2017. Moreover, the next day, Defendant filed a declaration wherein he represented that there was no meeting currently scheduled with the Business Partner, but that he had “been working to schedule a meeting with an employee or employees of [the Business Partner] sometime after May 14, 2017.” Decl. of Michael Maurer, EOF No 6-1. In connection with his opposition, Defendant further informed the Court that he “do[es] not currently have a meeting scheduled with any representative of [the Business Partner,]” and that in his “most recent correspondence with [the Business Partner, Defendant] provided [his] availability for a-meeting between May 10-22, 2017.” Deck of Michael Maurer, EOF No. 10-1, ¶¶ 1-2. Defendant also informed the Court that he has a "significant, pre-existing financial and personal relationship with the Business Partner that-is separate and apart from Steward, and that -his brother and sister-in-law are both employees of the Business Partner. Id. ¶¶ 3-5.

During the aforementioned conference call, and solely in an attempt to foster an amicable resolution of this matter, the Court suggested an agreement that could have potentially resolved this matter without need for further proceedings before this Court. In particular, the Court instructed Defendant to file a notice on the docket in the event that he was willing to “agree to not repeat the statements described on pages 5 and 6 of the [TRO] Motion at the meeting described on page 7 of the' [TRO] Motion ....” Minute Order, April 20, 2017. Nonetheless, the Court emphasized that “[d]efense counsel did not have an opportunity prior to the conference call to'review the pleadings or discuss with Defendant whether he would agree to not repeat the [pertinent] statements ....” Id. In his opposition to the TRO Motion, Defendant declined to enter such an agreement, primarily because no such meeting is scheduled; because he has family members who' are employees of the Business Partner; because he has as a relationship with the Business Partner that predates the founding of Steward; and because he views the pertinent statements as true, and may need to honestly answer questions regarding the circumstances of his departure from Steward in order to “maintain longstanding and important business relationships for future jobs.” Opp’n Mem. at 3. Plaintiffs have *131 sought to make Defendant’s decision to decline the agreement relevant to this Court’s resolution of the TRO Motion, Contending that it is further evidence of Defendant’s intent to defame Plaintiffs. Reply at 1. The Court, however, does not in anyway hold Defendant’s decision against him, as the agreement was suggested by the Court solely as a potential means of amicably resolving this lawsuit, and at no time did defense counsel or Defendant affirmatively state that they would enter such an agreement.

Several days after the initial conference call, by Minute Order dated April 24, 2017; the Court provided additional instructions regarding the content of the parties’ briefing of the TRO Motion. Because Plaintiffs had represented that it was unlikely that an arbitrator could be appointed prior to the week of May 14, 2017, see ECP No.

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Cite This Page — Counsel Stack

Bluebook (online)
251 F. Supp. 3d 127, 2017 WL 1628873, 2017 U.S. Dist. LEXIS 65687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gold-v-maurer-dcd-2017.