Royal Society of Medicine v. International Society for Preventive Oncology, Inc.

602 F. Supp. 794, 1985 U.S. Dist. LEXIS 22513
CourtDistrict Court, S.D. New York
DecidedFebruary 19, 1985
Docket82 Civ. 6903 (LFM)
StatusPublished
Cited by1 cases

This text of 602 F. Supp. 794 (Royal Society of Medicine v. International Society for Preventive Oncology, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Royal Society of Medicine v. International Society for Preventive Oncology, Inc., 602 F. Supp. 794, 1985 U.S. Dist. LEXIS 22513 (S.D.N.Y. 1985).

Opinion

OPINION

MacMAHON, District Judge.

Plaintiff, The Royal Society of Medicine (“RSM”), moves for summary judgment *796 against defendant, International Society for Preventive Oncology, Inc. (“ISPO”), on its second, third and fifth causes of action. Plaintiff also moves to dismiss defendants’ counterclaims. Defendants oppose plaintiff’s motion for summary judgment and cross-move for summary judgment dismissing plaintiff’s complaint against defendant Herbert E. Nieburgs (“Nieburgs”) and plaintiff’s fifth cause of action.

FACTS

This action is based on a contract signed by the parties in March 1979. In the fall of 1977, plaintiff entered into an agreement to sponsor the Fourth Symposium on the Detection and Prevention of Cancer (“symposium”), to be held in London in July 1980, with the International Study Group for the Detection and Prevention of Cancer (“DepCa”), a non-profit medical society organized under the laws of Belgium. Defendant Nieburgs served as president of DepCa in 1977.

Plaintiff agreed to organize the symposium and to guarantee a loan for £20,000 as seed money. The agreement also provided that the loan was without risk and would be repaid at periodic intervals. Due to lack of sponsorship by other organizations, however, plans for the symposium were put on hold at the November 1978 meeting of the Symposium Organizing Committee, which Nieburgs attended.

In March 1979, plaintiff entered into a new agreement regarding the organizing of the symposium, which substituted the International Symposium for Detection and Prevention of Cancer, Inc. (“ISDPC”) for DepCa. ISDPC, a separate corporation formed to organize symposia, later changed its name to ISPO. In pertinent part, the March 1979 agreement provided that ISPO:

3. Agrees that repayment of the money already lent by the RSM (plaintiff) beyond £20,000 (as shown at Appendix A), plus interest, will be a first call on registration fees as received and that the said £20,000 shall be repaid to the RSM within four weeks of the termination of the Symposium.
4. Agrees that any profits from the Symposium will ■ be shared with the RSM on the basis of 75% to ISDPC (ISPO) and 25% to RSM.

Defendants have paid plaintiff for amounts due over £20,000 but have not repaid the original loan. Plaintiff alleges that, in further violation of the March 1979 agreement, defendants have failed to provide plaintiff with an accounting and percentage of the profits. In addition, in July 1980, plaintiff arranged a symposium dinner at a cost of £1,500, which plaintiff alleges defendants agreed but have failed to pay.

DISCUSSION

Plaintiffs Second Cause of Action

Plaintiff moves for summary judgment on its second cause of action which alleges that, under the March 1979 agreement, defendants were required, but have failed, to repay plaintiff £20,000 within four weeks of the symposium.

Defendants contend that they were assured of and expected to receive invoices for plaintiff’s expenditures before reimbursement and would not have signed the agreement if they had known that invoices were unavailable. They also assert that the term “provisional” in Appendix A signifies that the amount to be paid was subject to verification which plaintiff has failed to provide. Finally, defendants contend that the agreement was executed in reliance on a chart distributed at the November 1978 meeting, which falsely aggrandized the number of expected attendants. They claim that the chart showed that the total number of persons interested in the symposium was 1,255.

Defendants do not dispute that money is owed, but rather claim that the amount should be verified before it is paid. The document, however, is unambiguous and subject to only one interpretation. Security Options Corp. v. Devilliers Nuclear Corp., 472 F.2d 844, 846 (2d Cir.1972). The *797 agreement clearly provides that defendants were to repay plaintiff the £20,000 loan within four weeks after the symposium. The agreement is silent as to providing invoices. Any assurance in various letters by plaintiff to supply invoices was merely to accommodate defendants’ accounting procedures, not because such documentation was required by the March agreement. The term “provisional” relates to the expenditures over the original £20,000, not to the £20,000 itself.

Finally, a proper reading of the chart shows that plaintiff did not misrepresent the number of persons expected to attend the symposium. The chart establishes that the total number of inquiries made equalled 1,255, while the expected number of attendants was 399.

We find that the agreement unequivocally required defendants to repay the £20,000 loan within four weeks of the symposium. Defendants’ affirmative defenses and counterclaims, all derived from the same factual basis, are insufficient to alter this result and are dismissed based on the following discussion.

Defendants claim that they signed the March 1979 agreement under coercion or duress and that plaintiff unlawfully or maliciously interfered with the symposium. They also counterclaim that they were induced to enter into the March 1979 agreement by plaintiff’s misrepresentations and that plaintiff breached the agreement by failing to comply with its terms and conditions. These allegations rest on the same alleged factual basis, i.e., that plaintiff withdrew from organizing the symposium in November 1979, attempted to organize its own symposium, and solicited support for it from potential participants.

To establish the defense of economic duress, defendants must demonstrate that the agreement was obtained: (1) by means of a wrongful threat precluding the exercise of free will; (2) under the press of financial circumstances; (3) where circumstances permitted no other alternative. Union State Bank v. Weaver, 526 F.Supp. 29, 33 (S.D.N.Y.1981). The prima facie tort of malicious interference is established by proof of intentional infliction of harm, resulting in damages, without excuse or justification, by an act or series of acts that would otherwise be lawful. Ann-Margret v. High Society Magazine, 498 F.Supp. 401, 408 (S.D.N.Y.1980); Sommer v. Kaufman, 59 A.D.2d 843, 399 N.Y.S.2d 7 (1st Dept.1977).

Defendants have not shown facts to establish these defenses. They may not rest on mere conclusory allegations to obtain a trial. Quinn v. Syracuse Model Neighborhood Corp., 613 F.2d 438, 445 (2d Cir.1980).

Contrary to defendants’ allegations, the uncontroverted facts show that plaintiff did not withdraw from organizing the symposium in November 1978. It was agreed by all present at the meetings, including Nieburgs, that it was impractical to proceed with plans without the support of other medical societies and that the organizing of the symposium should be temporarily halted. It was also agreed that members of the symposium committees not present would be advised of the situation.

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Cite This Page — Counsel Stack

Bluebook (online)
602 F. Supp. 794, 1985 U.S. Dist. LEXIS 22513, Counsel Stack Legal Research, https://law.counselstack.com/opinion/royal-society-of-medicine-v-international-society-for-preventive-oncology-nysd-1985.