Sabre International Security v. Torres Advanced Enterprise Solutions, LLC

72 F. Supp. 3d 121, 2014 U.S. Dist. LEXIS 185806, 2014 WL 5499362
District Court, District of Columbia·Decided October 30, 2014·No. Civil Action No. 2011-0806·Published·Cited by 2 cases

Opinion

MEMORANDUM OPINION

GLADYS KESSLER, United States District Judge

Sabre International Security (“Sabre”) has sued its former business partner, Torres Advanced Enterprise Solutions, LLC (“Torres”) and three of its current and former officers, Jerry Torres (“Jerry Torres”), Rebekah Dyer (“Dyer”), and Kathryn Jones (“Jones”) (collectively, the “Individual Defendants”), for breach of contract, tortious interference with business relations, and conversion of property.

This matter is before the Court on the Individual Defendants’ Motions for Summary Judgment [Dkt. Nos. 377, 407, and 408]. Upon consideration of the Motions, Oppositions [Dkt. Nos. 384, 431, & 432] and Replies [Dkt. .Nos. 404, 435, and 436], and the entire record herein, and for the reasons set forth below, Jones’ Motion shall be granted, and the Motions of Dyer and Jerry Torres shall be denied.

I. BACKGROUND

A. Factual Background 1

For purposes of the instant Motions, the facts can be briefly stated. Sabre and Torres are private security contractors providing security services to various entities around the world, including the United States Government. Individual Defendant Jerry Torres is Torres’ Chief Executive Officer (“CEO”) and sole shareholder. Individual Defendant Dyer previously served as Torres’ Vice President and Chief Operating Officer (“COO”). She left the company in 2013. Individual Defendant Jones previously served as Torres’ Chief Financial Officer (“CFO”). She left the company in January 2011.

Between 2007 and 2010, Sabre and Torres partnered as prime contractor and subcontractor to perform site-specific security-contracts for the United States Government at military-installations in Iraq. Each of these security contracts was known as a “Task Order.” The parties’ relationship in competing for and performing these Task Orders was governed by a series of contracts, the most relevant of which is known as the “Teaming Agreement.”

On December 2, 2009, the Government awarded the Torres-Sabre Team a Task *124 Order at Joint Security Station (“JSS”) Shield in Iraq. This Task Order had a base period of performance of one year — extending from January 1, 2010, through December 31, 2010 — and two six-month option periods. The Government exercised both options and subsequently modified the Task Order to provide for an additional extension. As a result of these extensions, the Team did not conclude its performance at JSS Shield until March 31, 2012.

Under the Teaming Agreement, the parties agreed that Sabre would provide “all Site materials, Site equipment, Site supplies and Site life support required for performance” of each Task Order and that, upon conclusion of each Task Order, Torres would “release and return to Member’s (Sabre[’s]) possession and control all such equipment, supplies and facilities ... in the same condition as originally provided, fair wear and tear excepted.” Teaming Agreement § 6.1(B)(1) [Dkt. No. 22-2], Pursuant to this provision, Sabre provided the Team’s “life support area” (“LSA”) equipment at JSS Shield.

The Court has already found in a separate Summary Judgment Opinion [Dkt. No. 373] — and for purposes of the present Motions, it appears to be undisputed— that, upon the conclusion of the JSS Shield Task Order, Torres did not return this equipment to Sabre but instead sold it to a third party named Mohammed Hussan for $150,000, and retained the proceeds. See Jones’ Mot. at 4-5; Dyer’s Mot. at 6; J. Torres’ Mot. at 4-7.

Sabre claims that the three Individual Defendants directed, consented to, or otherwise participated in Torres’ decision to sell its property to Mr. Hussan. The Individual Defendants deny any such involvement and claim that the decision to sell Sabre’s property was made, without their knowledge or consent, by Robert Lewis, a Senior Program Manager working out of Torres’ Virginia headquarters who left Torres’ employment in January 2013. Dyer’s Mot. at 6-7, 8. 2

B. Procedural Background

On April 29, 2011, Sabre filed this lawsuit against Torres for breach of contract and related torts. In October 2013, Sabre filed a First Amended Complaint (“FAC”) [Dkt. No. 242]. The FAC added seven new claims against Torres and the Individual Defendants, including, as relevant here, a claim for conversion of the life support equipment Sabre supplied at JSS Shield.

On January 30, 2014, the Court granted Torres’ Motion to Dismiss all of the new counts asserted in the FAC except for the conversion claim. See generally Sabre III, 13 F.Supp. 3d at 67-74, 2014 WL 341071, at *3-9. On August 20, 2014, the Court granted summary judgment to Sabre against Torres on the conversion claim. See Mem. Op., dated Aug. 20, 2014 (“Summ. J. Op.”) [Dkt. No. 373]. 3 On *125 August 21, 2014, the Court granted judgment on the pleadings for the Individual Defendants as to all Counts except the conversion claim. Sabre VI, 60 F.Supp.3d at 39-43, 2014 WL 4162236, at *2-5.

On August 22, 2014, Jones filed her Motion for Summary Judgment on the conversion claim [Dkt. No. 377]. On September 8, 2014, Sabre filed its Opposition [Dkt. No. 384], On September 12, 2014, Jones filed her Reply [Dkt. No. 404].

On September 18, 2014, Jerry Torres and Dyer filed their Motions for Summary Judgment on the conversion claim [Dkt. Nos. 407 and 408]. On October 6, 2014, Sabre filed its Oppositions [Dkt. Nos. 431 and 432], On October 17, 2014, Jerry Torres and Dyer filed their Replies [Dkt. Nos. 435 and 436].

II. LEGAL STANDARDS

A. Standard on Summary Judgment

Summary judgment may be granted only if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter .of law. See Fed. R. Civ. P. 56(c); Arrington v. United States, 473 F.3d 329, 333 (D.C.Cir.2006). “A dispute over a material fact is ‘genuine’ if ‘the evidence is such that a reasonable jury could return a verdict for the non-moving party.’ ” Arrington, 473 F.3d at 333 (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)). A fact is “material” if it might affect the outcome of the case under the substantive governing law. Liberty Lobby, 477 U.S. at 248, 106 S.Ct. 2505.

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Sabre International Security v. Torres Advanced Enterprise Solutions, LLC, 72 F. Supp. 3d 121, 2014 U.S. Dist. LEXIS 185806, 2014 WL 5499362 (D.D.C. 2014).

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