Reiss v. Société Centrale Du Groupe Des Assurances Nationales

235 F.3d 738, 2000 WL 1876763
CourtCourt of Appeals for the Second Circuit
DecidedDecember 27, 2000
DocketNo. 00-7103
StatusPublished
Cited by13 cases

This text of 235 F.3d 738 (Reiss v. Société Centrale Du Groupe Des Assurances Nationales) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reiss v. Société Centrale Du Groupe Des Assurances Nationales, 235 F.3d 738, 2000 WL 1876763 (2d Cir. 2000).

Opinion

MINER, Circuit Judge:

I.

Plaintiff-appellant Brad M. Reiss appeals from a judgment entered against him in the United States District Court for the Southern District of New York (Seheind-lin, J.) dismissing his action to recover a finder’s fee against defendants-appellees. The action revolves around Reiss’ claim that he is entitled to a fee for having successfully interested General Electric Capital Corporation (“GECC”) in acquiring two French real estate companies, Union Pour le Financement d’lmmeubles de Sociétés (“UIS”) and Union Industrielle de Credit (“UIC”). Reiss claims that he entered into an oral contract with Alain Juli-ard, the Chairperson of UIS, to find a buyer for UIS and UIC in exchange for a commission of 1% of the value of the transaction. The Amended Complaint pleads causes of action in breach of contract and quantum meruit. The district court dismissed the action for lack of personal jurisdiction, see Fed.R.Civ.P. 12(b)(2), and failure to state a claim, see Fed.R.Civ.P. 12(b)(6), holding that Reiss did not establish that either defendant-appellee transacted any business in the State of New York so as to be subject to personal jurisdiction there or that the alleged agent of defendants-appellees had actual or apparent authority to contract with him and that a claim therefore was not stated in the complaint.

II.

According to the Amended Complaint, Reiss is a licensed real estate broker who has been engaged in the commercial real estate business for more than fifteen years. UIC, at the times relevant to this dispute, was a financial institution that held a substantial real estate portfolio. Defendant-appellee Société Céntrale du Groupe des Assurances Nationales, also known as, Société Céntrale du GAN, and now known as, Société de Gestión de Gar-anties et de Participations (“Société”), is wholly owned by the government of France. Defendant-appellee GAN S.A. (“GAN S.A.”), a holding company, is currently the parent of a group of French companies involved in the insurance business.

[740]*740In 1992, the year that the alleged oral contract was formed, GAN S.A. was a wholly owned subsidiary of Société. GAN S.A., in turn, wholly owned UIC. GAN S.A. also owned 94.47% of UIS. In 1997, prior to the sale of UIC and UIS to GECC, GAN S.A.’s shares of UIC were transferred to Société. UIS, together with FINABAIL, another company owned by GAN S.A., and two other companies — all of which were involved in real estate— were collectively known as Groupe Percier.

Reiss, a resident of New York, has had an almost twenty-year personal and professional relationship with Alain Juliard, the Chairperson of UIS. In April 1992, Reiss, on behalf of his firm’s client United States Surgical Corporation (“USSC”), arranged for UIS to provide approximately 483,910,000 French francs in financing to USSC for its European headquarters and distribution and training facility near Paris. During the transaction, Reiss told Juli-ard that his (Reiss’) firm, Sonnenblick-Goldman, expected to receive from USSC a 1% fee — its customary arrangement — for its work in that kind of transaction. At the close of the transaction, Reiss sent a copy of Sonnenblick-Goldman’s bill to Juli-ard, who assisted him in collecting the fee from USSC.

On July 28 or 29, 1992, Juliard visited New York in connection with the USSC transaction. As Juliard, Reiss, and UIS’ Financial Director, Philippe Rosio drove back from a meeting, Juliard advised Reiss that “GAN”1 had authorized Juliard to explore opportunities to reduce the real estate holdings of “GAN” in France, including the position of “GAN” in UIS and/or FINABAIL. Prior to this drive, Juliard had repeatedly told Reiss that, before he undertook any actions with respect to any important matters, “GAN” required him to obtain its approval. During the-drive, Juliard explained that defendants’ objective was to have a United States corporation make a “substantial investment” in UIS and/or FINABAIL. Defendants believed that the best way to accomplish this end was .to convince a United States corporation to enter into a joint venture with defendants or make an initial investment in UIS and/or FINABAIL, which would allow the United States corporation to become familiar with the holdings of “GAN” and the French real estate market.

Juliard and Reiss then allegedly entered into an oral contract. That agreement, which was never reduced to writing, was made when Juliard told Reiss that “GAN” would like to retain Reiss to find one or more United States corporations to participate in transactions with defendants and/or to acquire an interest in the holdings of “GAN” in UIS and/or FINABAIL. Reiss accepted upon Juliard’s commitment that if he succeeded in introducing a company that ultimately entered into a transaction with “GAN”, “GAN” would pay his fee of 1% on any large transaction, a fee similar to that paid in the USSC transaction.

Reiss alleges that he subsequently began performing services that ultimately led to the purchase of UIC and UIS by GECC. Initially, Reiss contacted Richard Grimaldi, an executive in GECC’s Real Estate Division with whom he had a close professional relationship, in an attempt to interest GECC in reentering the French commercial real estate market by participating in transactions with, or acquiring an interest in, Groupe Percier. Juliard and Rosio, in consultation with Reiss, decided to encourage GECC, as an initial matter, to acquire the shares of “GAN” in FINA-BAIL, with the hope that such transaction would lead to other deals or a more substantial investment by GECC in Groupe Percier.

In a subsequent conversation between Grimaldi and Reiss, Grimaldi suggested that Groupe Percier submit a written presentation for him to circulate within [741]*741GECC. Rosio, in consultation with Reiss, prepared a written presentation relating to an investment in FINABAIL by GECC. Reiss delivered the presentation to Grimal-di and later provided Grimaldi with a copy of UIS’ annual report that he received from Rosio. In addition, around the same time, Reiss contacted approximately two hundred other American companies that had invested or planned to invest in France in an attempt to interest them in Groupe Percier’s activities.

Sometime in July 1993, Reiss joined Allied Partners, Inc., a company formed to manage and invest in real estate. In September 1993, following Grimaldi’s expression of GECC’s interest in pursuing a transaction with defendants, Reiss arranged a meeting in New York among himself, Juliard, Rosio, Grimaldi, and Richard H. Powers, Managing Director of Commercial Property Financing for GECC in Europe. Prior to the meeting, while Juliard, Rosio, and Reiss discussed strategy, Juliard informed Reiss that “he had spoken to ‘GAN’ about UIC, and ‘GAN’ had communicated to Juliard that ‘GAN’ wanted Juliard, on behalf of ‘GAN’ and UIC, to seek to interest GECC in the acquisition of part or all of UIC,” either for its own business or as a means to acquiring UIS. Juliard then allegedly explained that “GAN” would be extremely pleased with any interest GECC might take in any part of UIC, and asked Reiss, pursuant to Reiss’ engagement, to help UIC, “GAN,” and Juliard stimulate GECC’s interest in an acquisition in UIC as well as UIS.

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Cite This Page — Counsel Stack

Bluebook (online)
235 F.3d 738, 2000 WL 1876763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reiss-v-societe-centrale-du-groupe-des-assurances-nationales-ca2-2000.