Klayman v. Judicial Watch, Inc.

247 F.R.D. 10, 2007 U.S. Dist. LEXIS 88043, 2007 WL 4226413
CourtDistrict Court, District of Columbia
DecidedDecember 3, 2007
DocketCivil Action No. 06-670 (CKK)
StatusPublished
Cited by8 cases

This text of 247 F.R.D. 10 (Klayman v. Judicial Watch, 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
Klayman v. Judicial Watch, Inc., 247 F.R.D. 10, 2007 U.S. Dist. LEXIS 88043, 2007 WL 4226413 (D.D.C. 2007).

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, District Judge.

Currently pending before the Court is the Motion for Leave to Amend Counterclaim filed by Defendants/Counter-Claimants Judicial Watch, Inc., and Thomas J. Fitton (collectively, “Judicial Watch”). Plaintiff opposes Judicial Watch’s Motion for Leave to Amend on the grounds that it was brought in bad faith and that the only new claim Judicial Watch seeks to add via its Amended Counterclaim is futile. Plaintiff has also filed a Cross-Motion for Sanctions. Upon a searching review of the filings currently before the Court in connection with Judicial Watch’s Motion for Leave to Amend and Plaintiffs Cross-Motion for Sanctions, the relevant statutes and case law, and the entire record herein, the Court shall GRANT Judicial Watch’s Motion for Leave to Amend and shall DENY Plaintiffs Cross-Motion for Sanctions.

I: BACKGROUND

The Court shall assume familiarity with the Court’s January 17, 2007 and April 3, 2007 Memorandum Opinions, which set forth in detail the factual background of this case, and shall therefore only briefly address such facts as are necessary for resolution of the motions currently before the Court. See Klayman v. Judicial Watch, Inc., Civil Action No. 06-670, 2007 WL 140978 (D.D.C. Jan.17, 2007) (hereinafter “MTD Slip Op.”); Klayman v. Judicial Watch, Inc., Civil Action No. 06-670, 2007 WL 1034936 (Apr. 3, 2007) (hereinafter “Reconsid. Slip Op.”); and Klayman v. Judicial Watch, Inc., Civil Action No. 06-670, 2007 WL 1034937 (Apr. 3, 2007) (hereinafter “PSJ Slip Op.”). Defendant Judicial Watch, Inc. is a 501(c)(3) organization formed under the laws of the District of Columbia and headquartered in the District of Columbia. PSJ Slip Op. at 3-4. Defendant Fitton is President of Judicial Watch, Defendant Orfanedes is the Secretary and a Director of Judicial Watch, and Defendant Farrell is a Director of Judicial Watch. Id. at 4. Plaintiff Larry Klayman (“Klay-man”) is the self-described founder and former Chairman, General Counsel and Treasurer of Judicial Watch, who resides in and practices law in the State of Florida. Id.

In his Second Amended Complaint, Klay-man brought six claims against various combinations of Defendants, relating to events [12]*12that occurred after Klayman left Judicial Watch in September 2003. Id. In connection with Klayman’s separation from Judicial Watch, on September 19, 2003, the parties executed a detailed Severance Agreement, signed by Klayman and Fitton, on behalf of Judicial Watch, and attested to by Orfanedes, as Corporate Secretary of Judicial Watch. Id. Plaintiff’s claims have been narrowed somewhat by the Court’s January 17, 2007 and April 3, 2007 Memorandum Opinions. Specifically, the Court has dismissed Count Five of Plaintiffs Second Amended Complaint, dismissed-in-part Count Nine of Plaintiffs Second Amended Complaint, and granted-in-part Defendant’s motion for summary judgment as to Counts Six, Seven, and Eight of Plaintiffs Second Amended Complaint. See generally MTD Slip Op., Reconsid. Slip Op., PSJ Slip Op.

On June 28, 2006, Judicial Watch filed its Answer to Plaintiffs Second Amended Complaint, and also filed its Counterclaim against Klayman, which includes nine Counts: Count I (Breach of Contract) alleges that Klayman has not paid Judicial Watch, Inc. amounts due under the Severance Agreement, Counterclaim ¶¶ 19-24; Count II (Breach of Contract) alleges that Klayman has not repaid a debt owed to Judicial Watch, Inc. by Klay-man’s former law firm, Klayman & Associates (“K & A”), which was re-affirmed in the Severance Agreement, id. ¶¶ 25-30; Count III (Indemnification) alleges that Klayman is obligated to indemnify Judicial Watch, Inc. for damages arising out of K & A’s purported breach of the Severance Agreement, id. ¶¶ 31-34; Counts IV and V (Trademark Infringement) allege that Klayman knowingly used Judicial Watch, Inc.’s registered trademarks without consent, in violation of the Lanham Act, 15 U.S.C. §§ 1114(l)(a) and 1125(a), id. ¶¶ 35-48; Counts VI and VII (Breach of Contract) allege that Klayman has disparaged Judicial Watch, Inc. and Fitton in violation of the Severance Agreement, id. ¶¶ 49-63; Count VIII (Breach of Contract) alleges that Klayman has used Confidential Information in violation of the Severance Agreement, id. ¶¶ 64-70; and Count IX (Breach of Contract) alleges that Klayman has violated the Severance Agreement’s covenant not to compete or solicit, id. ¶¶ 71-77. Klayman filed his Answer to Judicial Watch’s Counterclaim on August 7, 2006.

Judicial Watch filed its Motion for Leave to Amend Counterclaim on May 25, 2007, asserting that “[sjince filing the Counterclaim, Judicial Watch has had an opportunity to learn additional information ... [and] Klayman has pursued a course of action that requires expanded allegations concerning claims under the Lanham Act.” JW Mot. for Leave to Amend Counterclaim (hereinafter “JW Mot. to Amend”) ¶ 1. Judicial Watch therefore seeks to expand Count IV of the Counterclaim, split Count V into two claims (one for false advertising and one for false association), and add a claim for cybersquat-ting.

In addition — and at the heart of Plaintiffs Opposition and Motion for Sanctions — Judicial Watch seeks to add a number of allegations to its Counterclaim regarding the circumstances under which Klayman separated from Judicial Watch in September 2003. Specifically, Judicial Watch alleges that in May 2003, Klayman informed Fitton and Or-fanedes that “his wife, a former Judicial Watch employee, had commenced divorce proceedings against him” and that she “alleged that Klayman had had an inappropriate relationship with a Judicial Watch employee with whom he had been in love” and that “Klayman had assaulted her physically.” JW Am. Count. ¶ 10. According to Judicial Watch, “Klayman denied having a sexual relationship with the employee” but acknowledged that he “had been in love with the employee,” “that he had purchased gifts for the employee and had kissed her,” and also acknowledged “an incident with his wife that clearly provided the basis for his wife’s allegation of physical assault.” Id. ¶ 11. Judicial Watch alleges that Fitton and Orfanedes considered Klayman’s “acknowledged behavior [] entirely inconsistent with that of a leader of a conservative, pro-family organization,” as well as “Klayman’s fiduciary duties to the organization,” and that they were concerned about Klayman’s possible misuse of Judicial Watch resources. Id. ¶¶ 12. Judicial Watch further alleges that, as a result of these revelations, “Fitton requested that Klayman resign,” and “Fitton and Orfanedes [13]*13also insisted that Judicial Watch undertake an internal investigation into Klayman’s conduct, including an audit----” Id. ¶ 13. According to Judicial Watch, “Klayman offered to resign rather than face such an inquiry,” and the parties began negotiating for his separation from Judicial Watch, which eventually culminated in the September 19, 2003 Severance Agreement. Id. ¶¶ 14-18.

Plaintiff filed his Opposition and Cross-Motion for Sanctions on June 11, 2007, and Judicial Watch filed its Reply in support of its motion to amend and Opposition to Plaintiffs Cross-Motion on June 21, 2007.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Van Bebber v. Dignity Health
E.D. California, 2021
Klayman v. Judicial Watch, Inc.
628 F. Supp. 2d 98 (District of Columbia, 2009)
Klayman v. Barmak
602 F. Supp. 2d 110 (District of Columbia, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
247 F.R.D. 10, 2007 U.S. Dist. LEXIS 88043, 2007 WL 4226413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/klayman-v-judicial-watch-inc-dcd-2007.