Pan Am Systems, Inc. v. Hardenbergh

871 F. Supp. 2d 6, 2012 U.S. Dist. LEXIS 67020, 2012 WL 1712263
CourtDistrict Court, D. Maine
DecidedMay 14, 2012
DocketCivil No. 2:11-cv-00339-NT
StatusPublished
Cited by9 cases

This text of 871 F. Supp. 2d 6 (Pan Am Systems, Inc. v. Hardenbergh) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pan Am Systems, Inc. v. Hardenbergh, 871 F. Supp. 2d 6, 2012 U.S. Dist. LEXIS 67020, 2012 WL 1712263 (D. Me. 2012).

Opinion

ORDER ON DEFENDANTS’ MOTION TO DISMISS

NANCY TORRESEN, District Judge.

INTRODUCTION

Defendants move to dismiss Plaintiffs’ Complaint for failure to state claims on which relief can be granted. For the reasons set forth below, Defendants’ Motion is GRANTED. The Plaintiffs’ claims are DISMISSED without prejudice. Plaintiffs are given leave to file an Amended Complaint within thirty (30) days from the date of this order.

FACTS ALLEGED IN THE COMPLAINT

The Plaintiffs are Pan Am Systems, Inc. (“Pan Am”), its subsidiary, Springfield Terminal Railway Company (“Springfield Terminal”), and David Andrew Fink. Mr. Fink was the President and Chief Executive Officer of Pan Am from approximately 2000 to March of 2011.

Defendant Atlantic Northeast Rails & Ports, Inc. (“ANRP”) is a “widely read weekly trade newsletter and e-bulletin covering the Northeastern United States, Eastern Quebec and the Canadian Mari-times regions,” which also maintains a website containing back issues of its newsletters. Complaint at ¶¶ 4-5. Defendant Chalmers Hardenbergh is the editor, publisher, owner, and principal of ANRP. Defendant C.M. Hardenbergh, P.A., is a Maine corporation which is an owner and principal of ANRP.

The Complaint alleges that the Defendants published the following statements about the Plaintiffs in ANRP’s trade newsletter, e-bulletins, and on ANRP’s website between December 2, 2009 and March 17, 2011.

On December 2, 2009, ANRP Issue 09# 11B “ST: COAL DERAILMENT” stated:

Peter Burling, chair of the New Hampshire Rail Transit Authority, blamed ST for the accident. “What has happened here is a perfectly predictable accident — but it’s hard to describe it as an accident, since the probabilities were so clear it was going to take place. The [10]*10only thing we didn’t know is when and where.... A horrendously dilapidated railroad system has caused a slow-moving coal train to fall off the tracks.”

Complaint at ¶ 12A.1

ANRP’s October 12, 2010 E-Bulletin and October 22, 2010 Issue 10# 10A, “PAN AM AT NEARS” and “PATRIOT CORRIDOR CONGESTION,” stated:

In addition to the complaints from Maine and New Hampshire [See 10# 09B] about how long cars are taking to move from Mechanicville to Ayer, one other prominent customer at NEARS was dissatisfied with Pan Am service. She’s been familiar with it for many years and would say only this: “It’s been consistent. Consistently bad.”

Id. at ¶ 12B (brackets in Complaint).

ANRP’s November 2, 2010 E-bulletin and November 8, 2010 Issue 10# 10B, “ST: HOME-GROWN APUs” and “A wise use of company resources?” stated:

Terry Judge, sales and marketing director plus communications manager for Kim Hostart, which manufactures many of the APUs used in North American locomotives, was bemused by the Pan Am move. “I would think they have plenty of other challenges, [such as] safety challenges, employee relations and locomotive maintenance.

Id. at ¶ 12C (brackets in Complaint).

ANRP’s December 10, 2010 E-Bulletin and December 21, 2010 Issue 10# 12A, “Better interchange would mean more customers” stated:

Despite ST’s promise to locate a crew in Concord and switch customers five days a week [see 10# 05A], Dearness reported that ST has done neither.... If ST would provide the service it promised, Dearness believes he could land two more customers. One is “very frustrated because it would like to start now, and can’t due to the level of service and is familiar” with ST’s lack of service.

Id. at ¶ 12D (brackets in Complaint).

ANRP’s March 10, 2011 E-Bulletin and March 21, 2011 Issue 11# 02B “PAN AM: A NEW DAWN?” stated:

PAN AM OWNER TIM MELLON REMOVED DAVE FINK PERE from management of the company according to four separate sources: one MBTA, one union, one Maine source, and one form [sic] other railroad management in New England. Sources differ on what precipitated the action, whether Fink is formally removed or is only on a “leave of absence,” and whether Mellon came to new England to administer the coup de grace or did it by telephone, but all agree that David Andrew Fink, the head of Pan Am Systems, is no longer in charge.

Id. at ¶ 12E.

ANRP’s March 17, 2011 E-Bulletin and March 21, 2011 Issue # 02B “PAN AM: HAZ-MAT SERVICE” stated:

The railroad “loses” cars on a consistent ongoing basis, including one car “lost” for over 60 days .... even though certain DHS and DOT statutes require carriers to release [TIH] cars within 48 hours.

Id. at ¶ 12F (brackets in Complaint).

The Plaintiffs have brought a four count Complaint against the Defendants alleging defamation, defamation per se, false light, and punitive damages. The Defendants have moved to dismiss each count of the Complaint under Federal Rule of Civil Procedure 12(b)(6) for failure to state claims upon which relief may be granted. [11]*11In their Response, the Plaintiffs claim that they have alleged sufficient facts to state claims for defamation and false light. They further explain that they have plead defamation per se and punitive damages not as separate causes of action but rather to put the Defendants on notice that they are pursuing a defamation per se theory and seek punitive damages.

LEGAL STANDARD

Rule 8 of the Federal Rules of Civil Procedure requires that a complaint contain “a short and plain statement of the claim showing that the pleader is entitled to relief’ and that “each allegation must be simple, concise, and direct.” Fed.R.Civ.P. 8(a)(2), (d)(1). The First Circuit has set forth, consistent with Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007), and Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009), the “proper way of handling a motion to dismiss” for failure to state a claim upon which relief can be granted under Federal Rule of Civil Procedure 12(b)(6):

Step one: isolate and ignore statements in the complaint that simply offer legal labels and conclusions or merely rehash cause-of-action elements. Step two: take the complaint’s well-pled (ie. nonconclusory, non-speculative) facts as true, drawing all reasonable inferences in the pleader’s favor, and see if they plausibly narrate a claim for relief.

Schatz v. Republican State Leadership Comm., 669 F.3d 50, 55 (1st Cir.2012) (citations omitted).

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Bluebook (online)
871 F. Supp. 2d 6, 2012 U.S. Dist. LEXIS 67020, 2012 WL 1712263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pan-am-systems-inc-v-hardenbergh-med-2012.