Largotta v. Banner Promotions, Inc.

356 F. Supp. 2d 388, 2005 U.S. Dist. LEXIS 2932, 2005 WL 459310
CourtDistrict Court, S.D. New York
DecidedFebruary 28, 2005
Docket04 Civ. 7005(JSR)
StatusPublished
Cited by3 cases

This text of 356 F. Supp. 2d 388 (Largotta v. Banner Promotions, Inc.) 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
Largotta v. Banner Promotions, Inc., 356 F. Supp. 2d 388, 2005 U.S. Dist. LEXIS 2932, 2005 WL 459310 (S.D.N.Y. 2005).

Opinion

MEMORANDUM OPINION

RAKOFF, District Judge.

On January 24, 2005, the Court denied defendants’ motion to dismiss or transfer this case for improper venue and granted their motion to dismiss all claims against defendant Arthur Pelullo and all tort claims against both defendants. See Order, 1/24/05. This opinion briefly sets forth the reasons for those determinations.

With respect to the venue motion, the Court held a two-day evidentiary hearing on November 1, 2004 and January 4, 2005. Although the witnesses gave rather starkly differing accounts of the events in question, in the end the Court need not resolve these discrepancies, because the facts, even when taken most favorably to defendants, show the following:

Plaintiff James Largotta lives in Manhattan. Transcript, 12/1/04 (“Tr. I”), at 9; Transcript, 1/04/05 (“Tr. II”), at 26. Pelul-lo lives in New Jersey and his Banner Promotions office is in Philadelphia. Tr. II at 15. In or around January of 2001, Pelullo was introduced to Largotta by their mutual friend Henry Siegel at a restaurant in Manhattan. See Deck of James Largotta dated 11/15/04 ¶ 3; Tr. II at 6. At *389 that meeting, Pelullo, who is a boxing promoter, told Largotta about his troubles with the boxing champion Acelino Freitas. Tr. II at 14. Pelullo had been Freitas’s manager, but Freitas had become alienated from Pelullo because Freitas blamed Pelullo for an incident in which Nevada police handcuffed Freitas in the boxing ring. Since Freitas, a native of Salvador, Brazil, spoke only Portugese, and since Freitas refused to have anything to do with Pelullo in any event, Pellulo was struggling to find a way to re-establish contact with Freitas and to convey his position that he was blameless. See id. at 15, 19-20, 26. Largotta told Pelullo that Largotta’s wife, Elizabeth, not only spoke fluent Portugese but was from Salvador. Id. at 14.

Soon thereafter, Pelullo called Largotta and proposed that Elizabeth Largotta reach out to Freitas. Tr. II at 15. After making a few calls, Elizabeth Largotta discovered that she had a connection with Freitas’s family, which she and her husband then used to open telephonic communications with Freitas, id. at 27. The Lar-gottas placed these calls from New York. Tr. I at 12. In the course of the calls, Freitas told Elizabeth Largotta that he had been embarrassed and did not want to deal with Pelullo anymore. Tr. II at 29. When Largotta telephonically relayed Freitas’s position to Pelullo, Pelullo explained in detail what had taken place in Nevada and sent to the Largottas in New York related legal papers, so that the Lar-gottas could clarify the situation for Frei-tas and his handlers. Id. at 29.

The Largottas then placed further telephone calls to Freitas from New York. Eventually, through these efforts of the Largottas, arrangements were made for the Largottas and Pelullo to meet Frei-tas’s representatives in Rio de Janeiro in late May. Tr. II at 18. Pelullo made the travel arrangements, which included a flight out of Newark, New Jersey. Id. at 18-19. Elizabeth Largotta, who once worked at a hotel in Rio de Janeiro, arranged reservations there for a discount. Id. at 36. At the meeting in Rio, the misunderstanding between Pelullo and Freitas was resolved, and an agreement was reached in principle for a new management contract, with only minor details left open. Id. at 37, 41. Another meeting was arranged for the middle of June, this time in Salvador. Id. at 20-21.

Between the meetings, Largotta updated Pelullo frequently by phone, with Lar-gotta speaking from New York and Pelullo from Philadelphia. Id. at 17. According to Pelullo, he and Largotta did not again meet physically in New York. 1 Id. at 17. Pelullo also testified that there was never any discussion at or prior to this time about compensating the Largottas, id. at 16, 20, and that there was no explicit understanding that the Largottas would be compensated for their efforts. Id. at 21. However, he acknowledges that he did not assume the Largottas were working for free and that he expected the Largottas “were going to ask me for something.” Id. at 21. Pelullo states that he did not need anyone’s help in negotiating a boxing contract, but that the Largottas provided him a service in getting Freitas to give him a face-to-face meeting. Id. at 27, 32.

For the second meeting in Brazil, the Largottas and Pelullo boarded a plane in Newark on June 12 and arrived in Salvador on June 13. Decl. of Arthur Pelullo dated 10/7/04 (“Pelullo Deck”) ¶ 14. During the flight, Largotta presented Pelullo with a piece of paper describing his pro *390 posed compensation. Tr. II at 22. He said that if Pelullo did not agree to the terms presented, the Largottas would use their influence over Freitas to sink the deal. Pelullo Decl. ¶¶ 18-21. Largotta asked Pelullo to retype the contract on Banner stationary, which Pelullo had an assistant do. Tr. II at 23. Although the contract is dated June 4, 2001, it was signed in Brazil on June 14. Id. at 24. It obligates Pelullo to pay Largotta $50,000 within fourteen days of the' signing and thereafter to pay Largotta ten percent of the net revenue Banner Promotions earns from its exclusive promotional contract with Freitas. See Pelullo Deck, Exhibit A (Agreement).

On August 25, 2004, Largotta filed the instant lawsuit, asserting that Banner and Pelullo have earned millions of dollars from Freitas’s fights and have failed to pay him the required ten percent. See Complaint ¶¶ 12-15, 48.

A civil claim in diversity may be brought, among other places, in “a judicial district in which a substantial part of the events or omissions giving rise to the claim occurred, or a substantial part of property that is the subject of the action is situated.” 2 28 U.S.C. § 1391(a)(2). In applying this test to contract claims, courts “consider a number of factors, including where the contract was negotiated or executed, where it was to be performed, and where the alleged breach occurred.” PI, Inc. v. Quality Prods., Inc., 907 F.Supp. 752, 757-58 (S.D.N.Y.1995). The fact that substantial activities also took place in other districts, and hence that venue is also proper there, does not preclude a finding that venue is proper in the Southern District of New York. Saferstein v. Paul, Mardinly, Durham, James, Flandreau & Rodger, P.C., 927 F.Supp. 731, 735 (S.D.N.Y.1996).

According to Pelullo’s version of events, Banner’s contract with Largotta was executed in Brazil. Banner’s obligation, to make payments to Largotta, was to take place from its office in Philadelphia; its alleged breach is therefore also situated in Philadelphia. As Banner points out, the fact that it was to mail payments to Largotta’s residence in New York would not alone provide venue. See Zumft v. Doney Slate Co., 698 F.Supp.

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

Related

Pesmel North America, LLC v. Caraustar Industries, Inc.
754 F. Supp. 2d 168 (D. Massachusetts, 2010)
Sea Tow Services International, Inc. v. Pontin
472 F. Supp. 2d 349 (E.D. New York, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
356 F. Supp. 2d 388, 2005 U.S. Dist. LEXIS 2932, 2005 WL 459310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/largotta-v-banner-promotions-inc-nysd-2005.