PointEast Pharma Consulting, Inc. v. Lenzing Aktiengesellschaft

CourtDistrict Court, S.D. Texas
DecidedDecember 9, 2024
Docket4:21-cv-03654
StatusUnknown

This text of PointEast Pharma Consulting, Inc. v. Lenzing Aktiengesellschaft (PointEast Pharma Consulting, Inc. v. Lenzing Aktiengesellschaft) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PointEast Pharma Consulting, Inc. v. Lenzing Aktiengesellschaft, (S.D. Tex. 2024).

Opinion

Southern District of Texas ENTERED IN THE UNITED STATES DISTRICT COURT December 09, 2024 FOR THE SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, □□□□□ HOUSTON DIVISION POINTEAST PHARMA § CONSULTING, INC., § § Plaintiff, § § v. § CIVIL ACTION NO. 4:21-CV-3654 § LENZING AKTIENGESELLSCHAFT, § PALMERS TEXTIL § AKTIENGESELLSCHAFT, § HYGIENE AUSTRIA LP GMBH, § STEPHAN TRUBRICH, § TINO WIESER, § § Defendants. § ORDER GRANTING MOTION FOR DEFAULT JUDGMENT Pending before the Court is Plaintiff PointEast Pharma Consulting, Inc.’s (“Plaintiff or “PointEast”) Amended Motion for Default Judgment against Defendants Palmers Textil Aktiengesellschaft (“Palmers”) and Tino Wieser (“Wieser”). (Doc. No. 121). The Court has considered the evidence, the pleadings on file, and the relevant authorities. (Doc. Nos. 121 and 122). Plaintiff dismissed its claims against Defendant Hygiene Austria LP GmbH (“HALP”), and has resolved its claims against Lenzing AG (“Lenzing”) and Stephan Trubrich (“Trubrich”). As such, Plaintiffs only remaining claims are against Palmers and Wieser. Neither Defendant answered the Original Complaint nor filed any responsive pleadings or briefs. The Court concludes that PointEast has established that it is entitled to the requested judgment and GRANTS Plaintiff's Amended Motion for Default Judgment. (Doc. No. 121). I. Background PointEast is a United States-hased pharmaceutical consulting company. (Doc. No. 121-1 at 3). PointEast is owned by Dr. Georg Fischer (“Dr. Fischer”) and Mr. Leonard Fischer (Mr.

Fischer”). (/d.). Defendants Lenzing and Palmers, both textile manufacturers, are entities based in Austria. (7d). In 2020, Lenzing and Palmers jointly created HALP, also an Austrian entity. (/d. at 5). Defendant Trubrich, a citizen of Austria, is a Vice President of Lenzing. (/d. at 3-4). Defendant Wieser is part-owner of Palmers. (/d. at 4). At issue in this case is an alleged contract whereby Plaintiff was to be the exclusive distributor of HALP’s “Made in Austria” masks in the United States. Plaintiff alleges that amid the COVID-19 pandemic, Lenzing and Palmers created HALP to sell personal protective products, principally face masks. (/d. at 5). HALP allegedly undertook to produce “hundreds of millions of masks” for distribution outside of Austria. (/d. at 6). In July 2020, HALP contacted PointEast. (/d. at 5). Plaintiff claims that HALP inquired as to whether PointEast was interested in a long-term, exclusive distribution deal for the United States. Plaintiff responded that it was indeed interested. at 7). HALP allegedly promised Plaintiff that it would create a joint venture in the United States that would be headquartered in Houston, Texas. (/d. at 6). Leonard Fischer was to act as lead manager of the United States venture. (/d.). Plaintiff claims that HALP told Mr. Fischer that he “could name [his] salary and title.” (Jd). Over the next couple of months, the parties exchanged terms sheets and eventually agreed to finalize the term sheet during a meeting in Vienna, Austria. (id. at 7). At this meeting, Dr. Fischer and Mr. Fischer, on behalf of PointEast, met with Trubrich, on behalf of Lenzing and HALP, and Wiser, on behalf of Palmers and HALP. (/d.). When Dr. Fischer inquired about finalizing the term sheet, Wieser assured him that no written contract was needed and that their verbal contract, accompanied by a handshake, is hinding. (/@.). The parties then agreed to make PointEast HALP’s exclusive distributor in the United States of HALP’s “Made in Austria” face masks. (/d. at 8).

PointEast applied for and obtained, on behalf of HALP, permission from the United States Food & Drug Administration (“FDA”) to import and sell the masks within the United States. Ud. at 13). This application required PointEast to identify the masks’ production location, which PointEast listed as Austria. (/d.). PointEast claims it spent hundreds of hours: advising HALP, conducting market, pricing and federal grant research, creating a logistics plan, distributing mask samples, conceptualizing and providing branding and design work, developing N95/FFP2 prototypes, registering internet domains, business names and bank accounts, building an online store, establishing federal and state supplier accounts, corresponding with testing laboratories and hospitals, collecting competitor masks and sending them to Hygiene Austria, corresponding with FDA regulators, submitting FDA Emergency Use Authorization (*EUA”) paperwork, and serving as Hygiene Austria’s FDA import agent, all in an effort to prepare for promised distribution of “Made in Austria” masks in the United States. (/d.). Plaintiff states that HALP, and thus Palmers and Wieser, benefited significantly from PointEast’s work. (/d. at 9). On August 18, 2020, PointEast recommended that HALP use a red nosepiece on its masks to create brand recognition and “confer strong product quality identification in the United States.” (/d.). HALP agreed to, and in fact did, use a red nosepiece on its masks. (Jd. at 9, 11). PointEast alleges that, as a result of the “instantly recognizable” red nosepiece forged via “countless hours and considerable branding and design work,” HALP earned over $609 million USD in sales. (fd. at 11-12). Wieser, on behalf of HALP, allegedly made repeated statements claiming that the masks HALP sold were made in Austria. See (/d. at 12, 14-15), Tbe masks, however, were actually made in China but labeled as “Made in Austria.” (/d. at 15; Doc. No. 121-2 at 3). At the same time HALP offered to supply PointEast 500,000 of its “Made in Austria” masks, Austrian police were investigating HALP for the use of the false labels. (Doc. No. 121-1 at 15; Doc. No. 121-3). HALP allegedly never imported any masks to PointEast, nor did it create its United States venture or hire Mr. Fischer at his desired salary. (Doc. No. 121-1 at 16). HALP, instead, attempted to deflect the bad publicity from the police investigation by issuing a statement that it was correct in labeling its

masks “Made in Austria” because the masks were “made for Austria.” Ud). Plaintiff argues that this deflection shows that HALP knowingly contracted for masks that it had no plans to produce. (/d.). PointEast filed this lawsuit in the 333rd Judicial District of Harris County, Texas. Lenzing removed the case to the Southern District of Texas. (Doc. No. 1). Plaintiff brings claims for fraud, fraud in the inducement, negligent misrepresentation, breach of express or implied contract, unjust enrichment, and violations of the Texas Theft Liability Act. (Doc. No. 121-1 at 21-24). Plaintiff further alleges that liability amongst or between defendants should be shared through theories of joint venture or joint enterprise and civil conspiracy. (/d. at 24-26). Plaintiff alleges that the Defendants breached the parties’ verbal contract by failing to import any masks at all (let alone masks actually made in Austria), failing to establish the United States venture as promised, and failing to pay Plaintiff for the work it put into their business arrangement. (/d. at 18-19). Most significantly, Plaintiff states that Defendants wrongfully profited from an idea they took from PointEast—the red nosepiece—while refusing to pay Plaintiff anything. (/d. at 19). As noted above, Plaintiff dismissed its claims against Defendant HALP. and has resolved its claims against Lenzing and Trubrich. Therefore, Plaintiff's only remaining claims are against Palmers and Wieser. Despite having been served with process, Defendants Wieser and Palmers have not appeared in the case or filed any responsive pleadings.' The Clerk entered default as to Palmers on April 16, 2024 (Doc. No. 115) and default as to Wieser on November 22, 2024 (Doc. No. 123) pursuant to Federal Rule of Civil Procedure 55(a). Plaintiff subsequently filed its

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Bluebook (online)
PointEast Pharma Consulting, Inc. v. Lenzing Aktiengesellschaft, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pointeast-pharma-consulting-inc-v-lenzing-aktiengesellschaft-txsd-2024.