Regional Industrial Services Corp. v. Pure Hedge, LLC

CourtDistrict Court, D. Massachusetts
DecidedJune 13, 2022
Docket4:20-cv-40064
StatusUnknown

This text of Regional Industrial Services Corp. v. Pure Hedge, LLC (Regional Industrial Services Corp. v. Pure Hedge, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Regional Industrial Services Corp. v. Pure Hedge, LLC, (D. Mass. 2022).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS _______________________________________ ) REGIONAL INDUSTRIAL SERVICES ) CORP., and ROBERT E. OPPENHEIM, ) CIVIL ACTION ) NO. 4:20-40064-TSH Plaintiffs, ) ) v. ) ) PURE HEDGE, LLC, VALENTINA ) SOLOMITA, STERLING PROPERTY, ) LLC, and SCHNITZER STEEL ) INDUSTRIES, INC. ) ) Defendants. ) ______________________________________ )

ORDER AND MEMORANDUM ON DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT (Docket No. 34), PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT (Docket No. 44), and PLAINTIFFS’ MOTION TO STRIKE (Docket No. 58)

June 13, 2022

HILLMAN, D.J.

Plaintiffs Regional Industrial Services Corp. (“Regional”) and Robert Oppenheim (collectively, “Plaintiffs”) and defendants Pure Hedge, LLC (“Pure Hedge”) and Valentina Solomita (collectively, “Defendants”) planned to work together on a development property in Sterling, Connecticut. In November 2018, Regional and Pure Hedge signed a Letter of Commitment, stating that Regional would perform demolition work on the property, subject to Pure Hedge acquiring the property. After Pure Hedge acquired the property, Pure Hedge hired a third party to perform the demolition work. Regional, believing it had an enforceable contract with Pure Hedge, commenced this action, alleging breach of contract and other claims stemming from the failed business relationship. Defendants filed several counterclaims. The parties cross- move for summary judgment on Plaintiffs’ breach of contract claim (Claim One). Defendants move for summary judgment on Plaintiffs’ remaining claims against them (Claims Two, Three, Four, and Seven).1 Plaintiffs’ move for summary judgment on Defendants’ counterclaims (Counterclaims One through Four). For the following reasons, the Court grants summary judgment for Defendants on Claims One, Two, Three, Four and Seven, denies summary judgment

for Plaintiffs on Claim One, and grants summary judgment for Plaintiffs on Counterclaims One through Four. Background Robert Oppenheim is the founder and owner of Regional, a demolition company based in Massachusetts. Valentina Solomita is the founder and owner of Pure Hedge, an investment company based in New York. In 2018, Regional and Pure Hedge each learned of a property for sale in Sterling, Connecticut (the “Property”). Regional was interested in performing demolition work on the Property; Pure Hedge was interested in acquiring the Property for redevelopment. In September 2018, Oppenheim and Solomita were introduced to one another through a mutual

connection. Oppenheim indicated to Solomita that demolition work on the property would cost $450,000. According to Solomita, Oppenheim also agreed to invest in the project. On November 23, 2018, Solomita sent Oppenheim a Letter of Commitment (“LOC”), which stated, “With regards to our prior discussions regarding the Property, this letter will confirm our understating that . . . Your firm will provide all, of the services, equipment and resources associated with dismantling the Property as described in your contract for a fixed fee of . . .

1 Plaintiffs also brought claims against Schnitzer Steel Industries, Inc (Claims Five and Six). Those claims are addressed in a separate order and memorandum. (Docket No. 65). Plaintiffs further name Sterling Property, LLC as a defendant, but they assert no causes of action against it. $450,000.00.” The LOC further stated that RIS would receive a “Success Fee” of $250,000.00 for “assisting in and obtaining a Letter of Intent from a third party for the purchase or rental of the Property post clean up.” The amounts in the LOC were contingent upon Pure Hedge acquiring the Property. Oppenheim and Solomita each signed the LOC on behalf of their respective companies. At his deposition, Oppenheim testified that he expected the details surrounding the

demolition to come in a later contract or proposal. Indeed, the LOC explicitly references another “contract.” At her deposition, Solomita testified that the LOC was meant to confirm her and Oppenheim’s understanding of their prior conversations. On November 28, 2018, Regional forwarded a letter to Solomita through a mutual connection. In the letter, a person named Mark Troiano expressed interest in building and operating a waste recycling station at the Property. The letter did not identify whether Troiano would purchase or lease the Property, the purchase price or lease terms of the Property, the timing of the purchase or lease, or any specifics about a potential transaction. Aside from placing an unanswered call to Oppenheim, Solomita did not follow up on the letter.

On December 27, 2018, Solomita formed Sterling Property, LLC, which would later acquire the Property. There are two versions of Sterling’s formation documents in the record. In one version, Oppenheim is listed as an initial member; in the other, he is not. Solomita testified that she listed Oppenheim as an initial member of Sterling because Oppenheim wanted to participate in Sterling as an investor. She also testified that he was listed erroneously, and that she had the listing corrected as soon as she noticed it. Oppenheim testified that he never agreed to participate in Sterling as an investor; his understanding was that Solomita was making him a member of Sterling as an assurance that he would be given a “finder’s fee” for bringing the parties to the Property together (i.e., for facilitating the sale of the Property from the original owner to Solomita). In January 2019, Regional paid $5,000 to Pure Hedge’s attorney, who was conducting due diligence on the Property. Oppenheim represents that Regional paid Pure Hedge’s attorney to assist Solomita in acquiring the Property. Solomita represents that Regional paid Pure Hedge’s

attorney to gather information regarding the status of the Property. On February 11, 2019, Solomita sent a letter to Oppenheim expressing frustration at Oppenheim’s lack of communication regarding the Property. The letter stated that Oppenheim had “agreed to invest $400,000” into Sterling, and that Pure Hedge would deem its “offer” to Oppenheim to participate in the project as an investor “revoked” if Oppenheim did not make the $400,000 investment within two days. The letter indicated that Oppenheim’s decision, whatever it was, would be “fine and respected.” Oppenheim never sent Solomita, Pure Hedge, or Sterling a $400,000 investment. The letter continued, We can still employ your company’s services with the dismantling of the property and accept written leasing commitments from your accredited relationships. However, we need a formal signed detailed quote in writing which is specific to the scope of work for the entire project (including all outsourced subcontractors for equipment fluids, fly ash removal etc. in compliance with DEEP which is included in the dismantling), which we have requested multiple times, and then must move forward with a formal contract.

On February 13, 2019, Regional sent Pure Hedge a demolition work plan for the Property. Solomita viewed the plan as deficient and requested certain changes. On March 4, 2019, Regional sent Solomita a revised plan, as well as a document titled, “Proposal.” The proposal outlined the scope of work, noted certain exclusions, and quoted the price of the work at $450,000. The proposal also stated, “Payments will be made as per Letter of Intent that is dated 11-23-2018.” Solomita did not respond to the revised plan or proposal. On March 18, 2019, Regional renewed its Class A Demolition Contractor’s License with the State of Connecticut. On March 26, 2019, Regional applied for and received a permit from the Town of Sterling for selective demolition and dismantling on the Property. Oppenheim testified that he applied for the permit at Solomita’s request; Solomita testified that she never asked Oppenheim to do so.

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