Rossi v. Standard Roofing, Inc.

958 F. Supp. 976, 1997 WL 149576
CourtDistrict Court, D. New Jersey
DecidedMarch 26, 1997
DocketCivil Action 92-5377
StatusPublished
Cited by7 cases

This text of 958 F. Supp. 976 (Rossi v. Standard Roofing, 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
Rossi v. Standard Roofing, Inc., 958 F. Supp. 976, 1997 WL 149576 (D.N.J. 1997).

Opinion

POLITAN, District Judge.

Dear Counsel:

This matter comes before the Court on motions by defendants — Standard Roofing, Inc., Arzee Roofing Supply Corp., GAF Corporation, Allied Roofing, Inc., Servistar Corp., Robert Higginson (deceased), William Higginson, Alvin Roth, Cary Roth, Joseph Lieciardello, and Wood Fibre Industries, Inc. — for summary judgment dismissing the Complaint of plaintiffs, Joseph Rossi, Rossi Florence Corp., and Rossi Roofing, Inc. Oral argument was heard on the motion on October 23, 1996, and the parties thereafter provided the Court with additional submissions. For the reasons outlined herein, defendants’ motions are GRANTED.

STATEMENT OF FACTS

Notwithstanding the voluminous nature of the parties’ submissions in this case, the factual basis of the dispute is fairly straightforward, if somewhat lengthy.

Plaintiff Joseph Rossi (“Rossi”) has been working in the roofing and siding distribution market in northern New Jersey (“North Jersey”) since 1972. Plaintiffs Rossi-Florence Corp. (“Rossi-Florence”) and Rossi Roofing, Inc., (“Rossi Roofing”) are siding and roofing distributors that Joseph Rossi formed in North Jersey. They are no longer in busi *978 ness. For ease of reference, the entities that are plaintiffs in this action will be referenced as either “Rossi” or “plaintiff.”

Defendants Standard Roofing, Inc., (“Standard”) and Arzee Supply Corporation (“Arzee”) are distributors of roofing and siding materials in North Jersey. Defendants GAF Corporation 1 (“GAF”) and Wood Fiber Industries, Inc., (“Wood Fiber”) are suppliers of roofing products in North Jersey. Defendant Servistar Corp. (“Servistar”) is a buying group, with some roofing and siding distributors as members, doing business in northern New Jersey.

Defendant William Higginson is currently a shareholder and President of Standard; defendant Joseph Licciardello is Vice President of Standard; defendant Alvin Roth is a shareholder and the President of Arzee; defendant Cary Roth is Alvin’s son and a branch manager at Arzee.

Standard employed Rossi from 1972 until he was terminated in September of 1988, at which time he was the manager of Standard’s Cedar Knoll branch. The reasons for his discharge are in dispute. Rossi alleges that Standard fired him because he refused to obey Standard’s request to cooperate with Arzee in setting prices. Standard claims that Rossi was fired because of his poor work performance, Standard’s high payroll expense (which it attributed to Rossi), Rossi’s personal expenses charged to Standard, his concentration on his extraneous business ventures to the detriment of Standard, and the failure of the Cedar Knolls branch to achieve profits commensurate with its sales.

Immediately after Standard fired Rossi, he began planning to open his own roofing and siding distributorship at a building he owned, which was located adjacent to Standard and on the same block as Arzee. Because of his employment at Standard, Rossi had knowledge about off-invoice, volume and nonvolume confidential rebates that some distributors get from many of the manufacturers in the roofing and siding industry. These rebates are periodic credits against purchases that the manufacturer issued to the distributors. Rossi alleges that distributors and suppliers feared that he would pass these rebates on to his customers, thereby lowering the prices of roofing and siding products in northern New Jersey.

Rossi believes that because of his past refusal to participate in price fixing, his aggressive pricing, and his potency as a competitor, Standard and Arzee, together with Allied, agreed to prevent Rossi from succeeding as a competitor in the northern New Jersey roofing and siding market. Additionally, Rossi contends that those defendants caused suppliers, including manufacturers, other distributors and buying groups to refuse to deal with Rossi-Florence, Rossi Roofing, and Joseph Rossi.

Rossi asserts that in late 1988 or 1989, representatives of various manufacturers informed him that distributors Standard, Allied, and/or Arzee pressured manufacturers not to deal with Rossi. Rossi alleges that he entered into a joint business venture with Richard Droeseh, President of the Florence Corporation (a roofing, siding, and window distributorship located at Huntington, Long Island), because Florence Corporation already had product lines. Jon Bieselin, an employee of Droeseh, also entered into the business arrangement. On December 1, 1988, the three incorporated the Rossi-Florence Corporation in the State of New Jersey.

Rossi proffers several statements by various persons to support his contention that defendants conspired to keep him out of business. Specifically, Rossi claims that Licciardello, Vice-President of Standard, visited him in December of 1988 at the new business location and informed him that, if he went into business, Standard and Arzee “would do anything they could to keep him out of business.” Additionally, a Standard employee testified that he heard Higginson state that Higginson intended to stop Rossi from competing against him.

*979 Moreover, plaintiff contends that sometime in January of 1989, Bud Krusa of GAF called Droeseh and told him that GAF would not sell to Rossi-Florence in New Jersey because GAF had sufficient distribution in the area. Plaintiff purports that Droeseh responded to Krusa’s statement by stating that he would sell GAF product from Florence Corporation to Rossi-Florence. Plaintiff maintains that Krusa then threatened Droeseh by stating that GAF would no longer sell to Florence in Long Island if he sold GAF products to Rossi-Florence.

Plaintiff asserts that subsequent to Krusa’s threat, a similar incident occurred in 1988 in connection with Certainteed, a major siding supplier to both Droesch’s Long Island corporation and Arzee. Plaintiff alleges that Droeseh received a call from A1 Roth of Arzee in December of 1988. During that conversation, Roth allegedly asked Droeseh if he was opening a distributorship with Joe Rossi in North Jersey. When Droeseh responded affirmatively to that question, A1 Roth then stated that he was not happy about it and threatened to open a distributorship in Long Island if Droeseh followed through with the Rossi-Florence distributorship.

In January of 1989, Droeseh informed Rossi that he wanted to withdraw from RossiFlorence because he believed that their corporation would not have the necessary product lines to succeed and that the available substitute products would not suffice. He also told Rossi that he was worried that if he moved forward with their joint venture, his own business in Long Island would be endangered. Joe Rossi and Droeseh then reached an agreement whereby Rossi would return $65,000 to Droeseh and Bieselin and discontinue use of the Florence name.

After the breakup of Rossi-Florence, Rossi Roofing was incorporated in New Jersey on February 2, 1989, with Joe Rossi and Georgia Rossi as the corporate directors. Rossi Roofing obtained a $900,000 bank credit line, which was guaranteed by Joe and Georgia Rossi. In March of that same year, Anthony Lipari invested in Rossi Roofing with the intention that he would be a 50% shareholder.

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958 F. Supp. 976, 1997 WL 149576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rossi-v-standard-roofing-inc-njd-1997.