Gutkowski v. Steinbrenner

680 F. Supp. 2d 602, 2010 U.S. Dist. LEXIS 6535, 2010 WL 299344
CourtDistrict Court, S.D. New York
DecidedJanuary 26, 2010
Docket09 Civ. 7535(RJS)
StatusPublished
Cited by19 cases

This text of 680 F. Supp. 2d 602 (Gutkowski v. Steinbrenner) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gutkowski v. Steinbrenner, 680 F. Supp. 2d 602, 2010 U.S. Dist. LEXIS 6535, 2010 WL 299344 (S.D.N.Y. 2010).

Opinion

MEMORANDUM AND ORDER

RICHARD J. SULLIVAN, District Judge:

Plaintiff Robert M. Gutkowski (“Plaintiff’ or “Gutkowski”) brings this diversity action against Defendant George Steinbrenner III (“Defendant” or “Steinbrenner”). Plaintiff alleges that after presenting Defendant with the idea of creating what ultimately became the Yankees Entertainment and Sports Network (the “YES Network” or “YES”), Defendant failed to abide by the terms of an oral agreement under which Plaintiff would “have a role in the network as long as it existed, or, otherwise!] be compensated for his efforts and contributions.” (Compl. ¶ 1.) Plaintiff further alleges that Defendant “knowingly lied” to Plaintiff “in order to induce Plaintiff to give his unique idea.” (Id.) Pursuant to these allegations, Plaintiff asserts common law claims under New York law for breach of contract, unjust enrichment, quantum meruit, and fraud in the inducement.

*605 Before the Court is Defendant’s motion to dismiss, with prejudice, Plaintiffs complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. For the reasons that follow, the Court grants Defendant’s motion.

I. Background

A. Facts 1

Plaintiff describes himself as a “distinguished professional in the field of sports television, marketing, and management with many years of experience.” (Id. ¶ 1.) Defendant is the “owner and the former principal owner and executive” of the New York Yankees (“the Yankees”). (Id. ¶ 3.)

1.The December 1996 Meeting with Defendant

Plaintiff first met with Defendant in December 1996. (Id. ¶ 8.) At that time, the Yankees had an agreement with the Madison Square Garden Network (the “MSG Network”), pursuant to which the MSG Network possessed the local television and cable rights to Yankees games. (Id. ¶ 5 & n. 1.) The MSG Network, however, had been purchased by Cablevision in 1995, “meaning that Cablevision had, through its ownership of the MSG Network, a 100% ownership of Yankees local television broadcast and cable rights.” (Id. ¶ 6.)

Plaintiff alleges that, “[a]s an industry insider, [he] correctly foresaw that this deal would have serious negative financial consequences to Steinbrenner and the Yankees and their future local television rights negotiation.” (Id. ¶ 8.) At the December 1996 meeting, Plaintiff “explained the situation” to Defendant and also “presented to Steinbrenner the idea of starting a Yankees owned and operated network as a means of gaining negotiating leverage over Cablevision.” (Id. ¶¶ 9, 10.) Defendant was “very intrigued by the idea,” and “asked that Plaintiff work with the Yankees to figure out the viability of starting a new network.” (Id. ¶¶ 10, 11.) Plaintiff alleges that Defendant:

told Plaintiff that he would be compensated fairly for his efforts and that if, in fact, using Gutkowski’s ideas, the Yankees did create a network, Plaintiff would be the one to build it and, afterward, would either run the network or, at a minimum, have a senior management position or be fairly compensated for his idea and efforts.

(Id. ¶ 11.)

2.The February 1997 Meeting with David Sussman

In February 1997, Plaintiff met with David Sussman (“Sussman”), general counsel of the Yankees. (Id. ¶¶ 11, 12.) Plaintiff reiterated his concerns regarding Cablevision and his idea of creating a Yankees-owned network. (Id. ¶ 12.) Plaintiff alleges that “Sussman was also very interested in the idea, though he, like Steinbrenner, did not know how to go about creating a television network.” (Id.)

3.The May 1997 Meeting with Defendant

Plaintiff met with Defendant a second time in May 1997. (Id. ¶ 13.) Plaintiff alleges that, during this meeting, Defendant “was becoming more and more interested in starting a Yankees television network.” (Id.) Plaintiff and Defendant, however, “decided to hold off discussing further development of a Yankees network until they could get an idea of the bargaining position Cablevision would adopt.” (Id.)

*606 4. The March 1998 Memorandum

In February 1998, Defendant “called upon Gutkowski’s industry expertise and requested that he prepare a memo to list and explain all of the local television broadcast and cable options available to the Yankees after the year 2000.” (Id. ¶ 15.) On or about March 5, 1998, Plaintiff provided Defendant with a memorandum providing seven “detailed Yankees local television broadcast and cable options for the future.” (Id. ¶ 16.) The first of these options “was the creation of a Yankees owned and operated television network.” (Id.) “Included with this option were thorough five (5) and ten (10) year business plans laying out network creation and operations including specifics such as production, cable and advertiser sales, and marketing.” (Id.)

5. The March 1998 Presentation by The Marquee Group

On or about March 10, 1998, Plaintiff and two of his partners at The Marquee Group made a presentation entitled “The New York Yankees & The Marquee Group: Maximizing Television Revenues” to Defendant and other Yankees executives. (Id. ¶ 17.) “The presentation explained, in depth, how to build a Yankees television network,” and “Plaintiff, as architect of the network’s model, covered all the facets of the implementation and management of the proposed Yankees network.” (Id.)

Plaintiff alleges that Defendant “was impressed and asked Plaintiff to move forward on Phase One of Plaintiffs proposed plan,” which “included developing viable local television broadcast and cable options.” (Id. ¶¶ 18, 19.) For performing this service, “The Marquee Group would charge twenty-five thousand dollars ($25,-000) per month for a minimum of six (6) months.” (Id. ¶ 19.) “While Steinbrenner never signed the proposal he specifically requested that Plaintiff proceed under the terms — namely Phase One — of the contract.” (Id.) Defendant, however, “only paid The Marquee Group for one month’s worth of compensation — or $25,000 — for its work.” (Id.)

Plaintiff alleges that “[a]t the time, Steinbrenner claimed that he was uncertain if he would ultimately choose to create a Yankees network, but told Plaintiff that if he did decide to start a network, Plaintiff would be the one to build it and either run it or be significantly involved in it.” (Id.) Defendant “also promised that, in any event, Gutkowski would be compensated for his idea and efforts,” and “said to Plaintiff and his partners, ‘You are my guys, if it goes forward, I will do it with you.’ ” (Id.)

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Bluebook (online)
680 F. Supp. 2d 602, 2010 U.S. Dist. LEXIS 6535, 2010 WL 299344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gutkowski-v-steinbrenner-nysd-2010.