Manhattan Telecommunications Corp. v. Granite Telecommunications, LLC

CourtDistrict Court, D. Delaware
DecidedNovember 13, 2020
Docket1:20-cv-00857
StatusUnknown

This text of Manhattan Telecommunications Corp. v. Granite Telecommunications, LLC (Manhattan Telecommunications Corp. v. Granite Telecommunications, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Manhattan Telecommunications Corp. v. Granite Telecommunications, LLC, (D. Del. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE MANHATTAN TELECOMMUNICATIONS CORP. D/B/A METROPOLITAN TELECOMMUNICATIONS, A/K/A METTEL Plaintiff, Civil Action No. 20-0857-CFC

v. GRANITE TELECOMMUNICATIONS, LLC Defendant.

Steven L. Caponi, Matthew B. Goeller, K&L GATES LLP, Wilmington, Delaware; Dana B. Parker, Charles F. Rysavy, K&L GATES LLP, Newark, New Jersey Counsel for Plaintiff Rudolph J. Scaggs, Jr., Zi-Xiang Shen, A. Gage Whirley, MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Wilmington, Delaware; T. Christopher Donnelly, Joshua N. Ruby, DONNELLY, CONROY & GELHAAR, LLP, Boston, Massachusetts Counsel for Defendant MEMORANDUM OPINION

November 13, 2020 Wilmington, Delaware

Ck.

UNITED STATES DISTRICT JUDGE Plaintiff Manhattan Telecommunications Corp. (MetTel) has moved pursuant to 28 U.S.C. § 1447(c) to remand this case to the Delaware Court of Chancery, from which it was removed by Defendant Granite Telecommunications, LLC on June 26, 2020. D.I. 2. MetTel alleges in the Complaint it filed in the Court of Chancery claims for defamation (Count One), tortious interference with prospective economic advantage and contractual relations (Counts Two and Three), trade libel (Count Four), and violation of the Delaware Deceptive Trade Practices Act (DTPA) (Count Five). D.I. 3, Ex. 2A §§ 38-71. MetTel asks as an alternative to remand expedited jurisdictional discovery. D.I. 13 at 1. Granite cited this Court’s original diversity jurisdiction under § 1332(a) as the basis for removal of the Chancery Court action. MetTel argues that remand is mandated because it “expressly limited the value of the claimed damages and injunctive relief in the Complaint so as not to exceed the $75,000 amount{-Jin[-] controversy requirement” of § 1332(a) and Granite has failed to provide competent evidence to prove to a legal certainty that the amount in controversy exceeds $75,000. D.I. 13 at 1. Because Granite has established by a preponderance of the evidence that the amount in controversy is above $75,000, I will deny MetTel’s request to remand

the action to the Court of Chancery. I will also deny its request for jurisdictional discovery. I. MetTel and Granite are competing commercial telecommunication service providers. MetTel is a Delaware corporation headquartered in New York City. Granite is a Delaware limited liability company with its principal place of business in Quincy, Massachusetts. According to MetTel’s Complaint, Granite has undertaken a campaign to damage MetTel’s business by giving MetTel’s clients and potential clients false information about MetTel. (The substance of the alleged false statements is currently sealed from public view.) MetTel alleges in the Complaint that its “reputation and goodwill in the [telecommunications] industry ha[ve] already been harmed” by Granite’s campaign. D.I. 3, Ex. 2A J 36. It also alleges that “[it] has hard evidence of only three customers” to whom Granite made “false, misleading, and defamatory statements about MetTel.” D.I. 3, Ex. 2A 930. According to MetTel, “none of these three customers has (yet) cancelled its contract with MetTel,” D.I. 13 at 2, but it alleges in the Complaint that it “has a reasonable basis

to believe that Granite’s efforts have extended, or will extend, beyond these customers,” D.I. 3 | 30. MetTel alleges specifically that “[o]ne of [its] clients had

not returned MetTel’s calls and has rejected efforts to set up a meeting with

MetTel since being contacted by Granite” and that MetTel “most likely lost th[is] client’s future business due to Granite’s campaign of misinformation.” D.I. 3, Ex. 2A 428. MetTel further alleges that “[u]pon information and belief, one or more clients were prepared to enter into a business relationship with MetTel, but [those potential clients] were persuaded not to do by Granite’s dissemination of false information.” D.I. 3, Ex.2A 4 45. MetTel seeks by its Complaint both damages and a permanent injunction enjoining Granite from making false statements about MetTel. D.I. 3, Ex. 2A at Request for Relief ff A, G. In support of its request for an injunction, MetTel alleges that “there is a real risk that MetTel will be asked to bid on fewer and fewer contracts going forward as Granite’s lies circulate throughout the marketplace.” D.I. 3, Ex. 2A ¥ 32, and that “[w]ithout [the Chancery] Court’s prompt intervention, there is a high probability that Granite’s malicious campaign will succeed, and MetTel’s business and its reputation will be irreparably damaged.” D.I. 3, Ex. 2A 7 5; see also D.I. 3, Ex. 2A 4 35 (alleging that “irreparable harm to MetTel’s reputation and business will continue if Granite is not brought to task and ordered to terminate its campaign against MetTel immediately.”). MetTel claims

to have “spent more than twenty years building a reputation for reliability among its clients and in the marketplace.” D.I. 3, Ex.2A 412. And it alleges that “(because it is so difficult to quantify the harm suffered by companies who are the

target of an insidious rumor campaign, the need for injunctive relief is heightened and is often the only viable form of justice.” D.I. 3, Ex. 2A ] 34. With respect to monetary relief, MetTel alleges that it seeks “damages to compensate [it] not to exceed $75,000.” D.I. 3, Ex. 2A at Relief for Relief G. In paragraph 37 of the Complaint, MetTel alleges that, “[b]ased on information currently available to MetTel, the combined value of the monetary and reputational harm it has suffered in connection with the Counts One through Five . . . does not exceed $75,000.” D.I. 3, Ex. 2A 937. MetTel openly admits that it added paragraph 37 to its Complaint and capped its demand for compensatory damages at $75,000 in order “to assure that the amount in controversy in this dispute falls below the monetary threshold for federal diversity jurisdiction.” D.I. 13 at 5. MeTel had good reason to believe that Granite would try to remove the Chancery Court action to this Court. MetTel had filed a previous complaint in the Court of Chancery that largely mirrors and alleges the same claims in the instant Complaint. The earlier complaint, however, did not specify or cap the amount of alleged damages. DI. 3, Ex. B1, Manhattan Telecomms. Corp. v. Granite Telecomms., LLC, No. 20-0775 (D. Del. 2019). After Granite removed the earlier

case to this Court in June 2020, D.I. 2, Jd. (No. 20-0775), MetTel voluntarily

,

dismissed the case, D.I. 8, Jd. (No. 20-0775). That same day, it filed in the Court of Chancery the Complaint now at issue.! II. “[A] defendant seeking to remove a case to federal court must file in the federal forum a notice of removal ‘containing a short and plain statement of the grounds for removal’” pursuant to 28 U.S.C. § 1446(a). Dart Cherokee Basin Operating Co., LLC v. Owens, 574 U.S. 81, 83 (2014) (quoting 28 U.S.C. § 1446(a)). Granite states in its removal notice that this Court has original diversity jurisdiction over this case under § 1332(a) and removal jurisdiction under § 1441 and § 1446 because the parties to the action are diverse and the amount in controversy exceeds $75,000. D.I. 2 6, 8-9, MetTel concedes that diversity of citizenship exists here. D.I. 13 at 1.2 But it argues that the Court lacks jurisdiction

' MetTel could not have avoided federal jurisdiction in the earlier case by amending the earlier complaint or otherwise trying to limit after removal the amount of damages it sought. See St. Paul Mercury Indem. Co. v. Red Cab Co.,

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