New Jersey Physicians United Reciprocal Exchange v. Boynton & Boynton, Inc.

141 F. Supp. 3d 298, 2015 WL 5822930
CourtDistrict Court, D. New Jersey
DecidedOctober 1, 2015
DocketCivil Action No. 12-5610 (FLW)(LHG), Civil Action No. 13-2286 (FLW)(LHG)
StatusPublished
Cited by13 cases

This text of 141 F. Supp. 3d 298 (New Jersey Physicians United Reciprocal Exchange v. Boynton & Boynton, Inc.) 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
New Jersey Physicians United Reciprocal Exchange v. Boynton & Boynton, Inc., 141 F. Supp. 3d 298, 2015 WL 5822930 (D.N.J. 2015).

Opinion

OPINION

WOLFSON, United States District Judge:

This matter comes before the Court on a motion for judgment on the pleadings under Federal Rule of Civil Procedure 12(c) filed by Plaintiff New Jersey Physicians United Reciprocal Exchange (“NJ PURE”), and Third-party Defendants Joanna Elias (“Elias”) and Eric Poe (“Poe”) (collectively “Third-Party Defendants”), seeking dismissal of thé First Amended Counterclaim, Third Party Complaint and Demand for Trial by Jury (“Counterclaim”) filed by Defendant/Third-party Plaintiff Whitboy, Ine. d/b/a Boynton and Boynton’s (“Boynton”).

For the following reasons,' NJ'PURE’s motion to dismiss is denied in part and granted in part, and Third-Party Defendants’ motion to dismiss is granted. Specifically, NJ PURE’s motion to dismiss Counts I and II of the counterclaim is denied. NJ PURE’s motion to dismiss Count III of the counterclaim is denied with respect to Boynton’s claim of tortious interference with its contract with OB/ GYN of North Jersey. NJ PURE’s mo[301]*301tion. to dismiss. Count III of the counterclaim is granted with respect to Boynton’s claim of tortious interference with its prospective economic advantage with OB/ GYN of North Jersey, and tortious interference with its contract and prospective economic advantage with University Radiology Group; Pulmonary & Allergy Associates; and unknown, prospective customers. Third-Party Defendants’ motion to dismiss the third-party claims is granted, and ,the third-party complaint is dismissed.

I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY

The following facts are drawn from Boynton’s ■ counterclaim and third party complaint, the allegations of which are assumed as true for the purposes of this motion..

Boynton is an insurance agent that, amohg other things, brokers the sale of medical malpractice insurance' policies to physicians and other individuals engaged in the provision of healthcare. Counterclaim ¶¶ 1, 5, 13. Plaintiff NJ PURE is a “reciprocal inter-insurance exchange,” that is engaged in the “direct sale of medical malpractice insurance policies that it produces itself to physicians and other individuals and institutions engaged in the provision of healthcare.” Counterclaim ¶¶ 2, 6, 14. Third-Party Defendants Elias and Poe were employees of NJ PURE during the relevant time period asserted in the Counterclaim. Counterclaim- ¶¶ 3,16.

Boynton alleges it is in direct competition with NJ PURE because NJ PURE markets its medical malpractice insurance policies directly to potential insureds, without the use of a broker. Counterclaim ¶¶ 15-17. Boynton further alleges^ NJ PURE made false , and misleading statements that NJ PURE was rated favorably by A.M: Best Company (“A.M,Best”)1 to several existing and prospective customers of Boynton, when it has not been so-rated. Counterclaim • ¶¶ 24-26. Specifically, Boynton alleges:

• On April' 25, 2012, NJ PURE, through Poe, emailed-a representative of Boynton’s client; University ■ Radiology Group (“URG”), and represented that NJ PURÉ had an A.M. Best Capital Adequacy Ratio • (“BCAR”) score: of 183.6, which ■ “qualifies [NJ PURE] for an A+ + (Superior) rating.” ■ Counterclaim ¶¶ 27-31.
• On May 11, 2012, NJ PURE, through Elias, emailed a representative of Boynton’s client, Pulmonary & - Allergy Associates (“PAA”), - and represented that NJ PURE had an A.M. Best Capital Adequacy Ratio (“BCAR”) score, of 183.6, . which “qualifies [NJ PURE] for an A+ + (Superior) rating.” . Counterclaim ¶¶ 32-35. In a later meeting in* May 2012, Elias also allegedly “touted NJ Pure’s rating with A.M. Best Company” to a representative of PAA. Counterclaim ¶¶ 36-37.
• . At some point in May or June 2012, an unknown employee of NJ PURE verbally advised Boynton’s client, OB/GYN of North ■ Jersey (“OB/GYN”), “that NJ PURE had received a favorable rating from A.M. Best Company,” and that “[b]ased upon [that] ■ solicitation ... [OB/GYN] left Boynton and began procuring its medical malpractice insurance coverage through NJ . PURE.” Counterclaim ¶¶ 39-40.
[302]*302• On various other dates, unknown employees of NJ PURE contacted prospective and existing clients of Boynton to solicit their medical malpractice business by providing false and misleading information concerning NJ PURE’s rating with A.M. Best. Counterclaim f 41.

NJ PURE brought suit against Boynton and Defendant Kevin Byrne (“Byrne”) on September 7, 2012, and filed an amended complaint on September 21, 2012, and a second amended complaint on May 17, 2013, alleging Lanham Act violations and common law claims for trade libel, libel, libel per se, slander, slander per se, tor-tious interference with prospective contractual relations, and unfair competition under the Insurance Trade Practices Act (“ITPA”), N.J.S.A. 17:29B-4(2)-(3).

On July 17, 2013, Boynton and Byrne moved to dismiss NJ PURE’s claims for violation of the Lanham Act, libel, slander, and unfair competition under the ITPA. On January 28, 2014, the Court dismissed the Complaint only as to the claim of unfair competition under the ITPA, and denied Boynton’s motion to dismiss the other counts.

On February 28, 2014, Boynton filed a counterclaim against NJ PURE, and a third-party complaint against Poe and Elias, alleging that Boynton suffered economic injury as a result of NJ PURE’s false statements that NJ PURE was favorably rated by A.M. Best. On March 21, 2014, NJ PURE and Third-Party Defendants filed a motion to dismiss Boynton’s counterclaim and third-party complaint.

On April 21, 2014, Boynton filed a motion for leave to amend the counterclaim and third-party complaint. On September 29, 2014, the Court ordered Boynton’s counterclaims and third-party complaint stricken, and referred Boynton’s motion to amend to Magistrate Judge Bongiovanni. On November 25, 2014, Magistrate Judge Bongiovanni granted Boynton’s motion to amend its counterclaim and third-party complaint.

On December 10, 2014, Boynton filed its first amended counterclaim and third-party complaint, in which Boynton asserted four causes of action (in three counts) against NJ PURE: (1) Unfair Competition in violation of the Lanham Act, 15 U.S.C.A. § 1125(a)(1)(A); (2) False promotion in violation of the Lanham Act, 15 U.S.C.A. § 1125(a)(1)(B); and (3) tortious interference with (i) contract and (ii) prospective economic advantage. Boynton alleges identical counts against Elias and Poe in its third-party complaint. On April 23, 2015, NJ PURE and Third-Party Defendants answered the counterclaim and third-party complaint. On May 29, 2015, NJ PURE and Third-Party Defendants filed the instant motion to dismiss the counterclaim and third-party complaint pursuant to Federal Rule of Civil Procedure 12(c).

II. STANDARD OF REVIEW

Rule 12(c) of the Federal Rules of Civil Procedure allows a party to move for judgment on the pleadings “after the pleadings are closed but within such time as not to delay trial.” Fed.R.Civ.P. 12(c).

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141 F. Supp. 3d 298, 2015 WL 5822930, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-jersey-physicians-united-reciprocal-exchange-v-boynton-boynton-inc-njd-2015.