Intelsat USA Sales Corp. v. Juch-Tech, Inc.

935 F. Supp. 2d 101, 2013 WL 1224893, 2013 U.S. Dist. LEXIS 43258
CourtDistrict Court, District of Columbia
DecidedMarch 27, 2013
DocketCivil Action No. 2010-2095
StatusPublished
Cited by37 cases

This text of 935 F. Supp. 2d 101 (Intelsat USA Sales Corp. v. Juch-Tech, Inc.) 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
Intelsat USA Sales Corp. v. Juch-Tech, Inc., 935 F. Supp. 2d 101, 2013 WL 1224893, 2013 U.S. Dist. LEXIS 43258 (D.D.C. 2013).

Opinion

MEMORANDUM OPINION

Granting in Part and Denying in Part the Plaintiff’s Motion to Dismiss the Defendant’s Counterclaim

RUDOLPH CONTRERAS, District Judge.

I. INTRODUCTION

At the heart of this lawsuit is a contract dispute between two satellite communications companies. Now before the court is the plaintiffs motion to dismiss the defendant’s counterclaim. The court grants the motion in part and denies the motion in part.

II. FACTUAL ALLEGATIONS AND PROCEDURAL BACKGROUND

Intelsat USA Sales Corp. (“Intelsat”) and Juch-Tech, Inc. (“Juch-Tech”) are companies that operate in the satellite communications industry. In 2005, the parties entered into a contractual agreement titled the Non-Exclusive Service Agreement (“NESA”). Counterclaim ¶ 23. Under this agreement, Juch-Tech leased satellite capacity from Intelsat on two satellites so that Juch-Tech could provide communications services to its customers. Id.

In early 2009, the parties entered into an additional agreement, under which Juch-Tech agreed to lease additional satellite capacity from Intelsat. Id. ¶ 24. Juch-Tech claims that it was induced to enter this additional agreement via several promises: in particular, Intelsat promised to assign certain consumer contracts to Juch-Tech, to provide certain sales leads, and to abstain from competing with JuchTech under certain circumstances. These promises were memorialized in a contract called the Transition Agreement. See generally id., Ex. A.

*106 Intelsat claims that it performed all of its contractual obligations but that JuchTech refused to pay for the services rendered. See Compl. ¶¶ 6-7. Juch-Tech claims that Intelsat did not provide services at the level mandated by the NESA. Counterclaim ¶ 34. Juch-Tech also claims that Intelsat failed to correct technical problems with its satellites, which made it harder for Juch-Tech to serve its clients or to obtain new customers. Id. ¶ 27. In addition, Juch-Tech claims that Intelsat violated the Transition Agreement by failing to assign customer contracts, failing to provide sales leads, and by breaching its agreement not to compete. Id. Finally, Juch-Tech claims that Intelsat interfered with its business by spreading false rumors that Juch-Tech was on the verge of bankruptcy. Id.

Both parties agree that their contractual relationship was terminated in October 2010. Compl. ¶ 8; Counterclaim ¶ 8. Intelsat brought suit for breach of contract and quantum meruit, and Juch-Tech brought a host of counterclaims. See Docket No. 10. The counterclaim’s many counts oscillate between New York and Canadian law: Breach of Contract under New York law (Count I); Fraud under New York law (Count II); Fraudulent Misrepresentation under Canadian law (Count III); Tortious Interference with Contractual Relations under New York law (Count IV); Tortious Interference with Contractual Relations under Canadian law (Count V); Tortious Interference with Business Relations under New York law (Count VI); Tortious Interference with Commercial Matters under Canadian law (Count VII); Defamation under New York law (Count IX); 1 Defamation under Canadian Law (Count X); Violation of the Canadian Trademark Act (Count XI); and Declaratory Judgment (Count XII). For the reasons explained below, the court will grant in part and deny in part Intelsat’s motion to dismiss.

III. ANALYSIS

A. Legal Standard for a Motion to Dismiss Under Rule 12(b)(6)

All that the Federal Rules of Civil Procedure require of a complaint is that it contain a “short and plain statement of the claim” in order to give the defendants fair notice of what the claim is and the grounds upon which it rests. Fed.R.Civ.P. 8(a)(2), see Erickson v. Pardus, 551 U.S. 89, 93, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007). A motion to dismiss under Rule 12(b)(6) does not test a plaintiffs ultimate likelihood of success on the merits; rather, it tests whether a plaintiff has properly stated a claim. See Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974). A court considering such a motion presumes the factual allegations of the complaint to be true and construes them liberally in the plaintiffs favor. See, e.g., United States v. Philip Morris, Inc., 116 F.Supp.2d 131, 135 (D.D.C.2000). It is not necessary for the plaintiff to plead all elements of his prima facie case in the complaint. Swierkiewicz v. Sorema N.A., 534 U.S. 506, 510-12, 122 S.Ct. 992, 152 L.Ed.2d 1 (2002); Bryant v. Pepeo, 730 F.Supp.2d 25, 28-29 (D.D.C.2010).

Nevertheless, “[t]o survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (internal quotation marks omitted). “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements,” are therefore insufficient *107 to withstand a motion to dismiss. Id. A court need not accept a plaintiffs legal conclusions as true, id., nor must the court presume the veracity of legal conclusions that are couched as factual allegations. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007).

B. Legal Standard for Pleading a Fraud Claim Under Rule 9(b)

Federal Rule of Civil Procedure 9(b) requires that a party “alleging fraud or mistake ... must state with particularity the circumstances constituting fraud or mistake.” Fed. R. Crv. P. 9(b). “The rule serves to discourage the initiation of suits brought solely for their nuisance value, and safeguards potential defendants from frivolous accusations of moral turpitude.... And because “fraud” encompasses a wide variety of activities, the requirements of Rule 9(b) guarantee all defendants sufficient information to allow for preparation of a response.” United States ex rel. Joseph v. Cannon, 642 F.2d 1373, 1385 (D.C.Cir.1981).

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935 F. Supp. 2d 101, 2013 WL 1224893, 2013 U.S. Dist. LEXIS 43258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intelsat-usa-sales-corp-v-juch-tech-inc-dcd-2013.