Marks v. Struble

347 F. Supp. 2d 136, 2004 U.S. Dist. LEXIS 24402, 2004 WL 2785264
CourtDistrict Court, D. New Jersey
DecidedNovember 18, 2004
DocketCivil Action 03-6225(MLC)
StatusPublished
Cited by97 cases

This text of 347 F. Supp. 2d 136 (Marks v. Struble) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marks v. Struble, 347 F. Supp. 2d 136, 2004 U.S. Dist. LEXIS 24402, 2004 WL 2785264 (D.N.J. 2004).

Opinion

MEMORANDUM OPINION

COOPER, District Judge.

This matter is before the Court on the motion by defendants, Stanley Struble, Snap-on Tools Company, LLC (“Snap-on”), Susan Marrinan, and Tari Williams, pursuant to Federal Rule of Civil Procedure (“Rule”) 12(b)(6) to dismiss the complaint for failure to state a claim upon which relief can be granted. Also before the Court is the defendants’ motion pursuant to Rule 72(a) to set aside the Order of the Magistrate Judge granting plaintiff, Gerald A. Marks, leave to file an amended complaint. 1 At issue is an attorney’s com *141 plaint of tortious interference with contract against a third party who independently settled a dispute with the plaintiffs retainer agreement client. The Court, for the reasons stated herein, will: (1) grant both motions; (2) dismiss the complaint and the amended complaint; and (3) grant plaintiff leave to file a second amended complaint.

BACKGROUND

Plaintiff entered into a partial contingency fee agreement (“Retainer Agreement”) with Robert Rinaldi on December 12, 2002. (Compl. at ¶ 4.) Rinaldi was a franchised Snap-on dealer “responsible for a territory within New York State.” (Def. Br. in Supp. Mot. to Dismiss (“Def.Br.Mot.Dismiss”) at 3.) The Retainer Agreement called for plaintiff to represent Rinaldi in connection with “difficulties and claims” Rinaldi had against Snap-on. (Compl. at ¶ 4.) The Retainer Agreement specifically provided that: (1) plaintiff be paid a partial contingency fee of one-third of the gross amount recovered by Rinaldi, and (2) Rinaldi pay plaintiff a non-refundable retainer of $3,500 upon signing the Agreement. (Marks Aff. at Ex. B.) The Retainer Agreement did not discuss termination of the lawyer-client relationship or what would happen if Rinaldi were to directly settle with the defendants without plaintiffs involvement. (Id.) Defendants and Rinaldi subsequently settled independently without plaintiffs involvement, knowledge, or consent. (Def. Br. Mot. Dismiss at 2.) The settlement was reflected in a settlement agreement signed by Rinaldi. (Marks Aff. at ¶ 22.)

Plaintiff filed a complaint, in New Jersey Superior Court on December 3, 2003, alleging that Struble and Snap-on tortiously interfered with his Retainer Agreement with Rinaldi. (Compl. at ¶ 15.) Struble and Snap-on removed to this Court on December 31, 2003. (Remov. Not.) Defendants then moved to dismiss the complaint for failure to state a claim, pursuant to Rule 12(b)(6), on January 8, 2004. (Not. of Mot.) Struble and Snap-on filed an answer and counterclaim on March 10, 2004. (3-10-04 Ans. & Counterclaim.) The counterclaim alleged that plaintiff tortiously interfered with the settlement agreement between Snap-on and Rinaldi. (Id. at ¶¶ 37-41.)

Plaintiff moved to file an amended complaint on March 29, 2004. Snap-on and Struble opposed, arguing that amending the complaint would be futile because, even if amended, the proposed amended complaint would still fail to state a claim upon which relief could be granted. (Def. Br. in Supp. to Mot. to Set Aside Magistrate Judge’s Order (“Def.BrAm.Compl.”) at 2.) The Magistrate Judge rejected this argument and granted plaintiffs motion for leave to file an amended complaint on May 14, 2004. (Id.) Snap-on and Struble filed a notice of motion to set aside the Magistrate Judge’s order, pursuant to Rule 72(a) and Local Civil Rule 72.1(c)(1), on May 27, 2004.

Plaintiff, pursuant to the Magistrate Judge’s order, filed an amended complaint, on June 2, 2004, asserting a tortious interference claim against Marrinan and Williams, attorneys for Snap-on. (Am. Compl. at ¶¶ 3-4.) Plaintiff, in the amended complaint, specifically alleges that Mar-rinan and Williams “advised [Struble] to tortiously interfere and either one or both [of the attorneys] prepared the settlement agreement that Rinaldi signed.” (Id. at ¶ 11.) Plaintiff, in support of this asser *142 tion, relies on Struble’s testimony that he: (1) was unsure who prepared the settlement agreement; (2) received the agreement from Snap-on; and (3) discussed the agreement with Williams. (Id. at Ex. A, 11-22.)

The Court now considers defendants’ motions: (1) to dismiss for failure to state a claim, and (2) to set aside the Magistrate Judge’s order granting leave to file an amended complaint.

DISCUSSION

1. Jurisdiction

Subject matter jurisdiction is based on the diversity of the citizenship of the parties and the amount in controversy being greater than $75,000. 2 28 U.S.C. § 1332.

II. Choice of Law: Which State’s Substantive Law Applies?

A district court sitting in diversity applies the choice-of-law rules of the state in which it sits. Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 496, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941). New Jersey applies the “governmental-interest” choice-of-law test for tort claims, applying the law of “the state with the greatest interest in governing the particular issue” in the underlying litigation. Veazey v. Doremus, 103 N.J. 244, 510 A.2d 1187, 1189 (1989).

The initial step in this analysis considers whether a conflict exists between the laws of the interested jurisdictions. Id. The Court, if an actual conflict exists, must then “identify the governmental policies underlying the law of each state and how those policies are affected by each state’s contacts to the litigation and to the parties.” Id. The contacts considered by the Court include:

(a) the place where the injury occurred,
(b) the place where the conduct causing the injury occurred,
(c) the domicile, residence, nationality, place of incorporation and place of business of the parties, and
(d) the place where the relationship, if any, between the parties is centered.

Erny v. Estate of Merola, 171 N.J. 86, 792 A.2d 1208, 1217 (2002). If a state’s contacts are not related to the policies underlying its law, then that state does not possess an interest in its law applying to the underlying litigation. Veazey, 510 A.2d at 1189. “[T]he qualitative, not the quantitative, nature of a state’s contacts ultimately determines whether its law should apply.” Id.

There is no conflict here because New Jersey and New York law on tortious interference with an existing contract are in accord. See DiGiorgio Corp. v. Mendez & Co., Inc., 230 F.Supp.2d 552, 557-58 (D.N.J.2002); Hidden Brook Air, Inc. v. Thabet Aviation Int’l, Inc., 241 F.Supp.2d 246, 278 (S.D.N.Y.2002).

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347 F. Supp. 2d 136, 2004 U.S. Dist. LEXIS 24402, 2004 WL 2785264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marks-v-struble-njd-2004.