Saliba v. Exxon Corp.

865 F. Supp. 306, 1994 U.S. Dist. LEXIS 14476, 1994 WL 548164
CourtDistrict Court, W.D. Virginia
DecidedOctober 3, 1994
DocketCiv. A. 90-107-R
StatusPublished
Cited by6 cases

This text of 865 F. Supp. 306 (Saliba v. Exxon Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saliba v. Exxon Corp., 865 F. Supp. 306, 1994 U.S. Dist. LEXIS 14476, 1994 WL 548164 (W.D. Va. 1994).

Opinion

MEMORANDUM OPINION

TURK, District Judge.

This matter is before the court on defendants’ motions for summary judgment and plaintiff’s cross-motion for summary judgment as to the release issue pursuant to Federal Rule of Civil Procedure 56.

Upon careful consideration of the record, the applicable law, the briefs submitted by the parties, and the arguments presented by counsel at the hearing, the court finds that defendants’ motions for summary judgment must be granted.

I. BACKGROUND

In 1982, Hunt Oil Company (“Hunt”) began exploration for oil in the Marib area of Yemen, pursuant to a production sharing agreement (“Marib PSA”) with the Yemen Arab Republic (“Government”). Hunt subsequently transferred rights in the Marib PSA to Yemen Hunt Oil Company (‘Temen Hunt”), a wholly owned subsidiary of Hunt.

In the fall of 1985, Hunt began negotiations with Exxon Corporation (“Exxon”) regarding a potential partnership in Yemen. As a result of these discussions, Exxon Yemen, Inc. (“Exxon Yemen”) was incorporated for the purpose of conducting all petroleum operations related to the Marib PSA. Yemen Hunt sold a forty-nine per cent interest in the Marib PSA to Exxon Yemen, and they formed a Texas general partnership, known as Yemen Exploration and Production Company (“Partnership”).

Hunt hired plaintiff Issam Saliba in January, 1985, to serve as in-house counsel for its Marib oil operations in Yemen. In connection with his employment, Saliba entered into a confidentiality agreement with Hunt. The agreement provided, among other things, that Saliba would keep proprietary information confidential and that, for a two year period after the termination of his employment with Hunt, he would avoid economic interests and activities contrary to Hunt’s interests in Yemen.

Hunt fired Saliba in February, 1987. In December, 1987, the Yemen minister of oil retained Saliba and his firm, Burnham, Con-noly, Osterle & Henry (“Burnham, Connoly”) for the purpose, among other things, of advising the Government on matters related to the Partnership’s Yemen operations. The Government hired him pursuant to an agreement whereby he was to work for three months at $12,000 per month. The agreement did not provide for any employment beyond the three months.

Saliba contacted Hunt on two separate occasions in 1987 in regard to his termination. On March 15, Saliba wrote Hunt regarding *309 the “improper termination.” On November 19, Saliba wrote Hunt regarding “settlement or arbitration of improper termination claims.” In response to the November 19 communication, Hunt filed a declaratory judgment action in Texas state court (“Texas litigation”) on December 16, 1987 to determine the rights of Hunt and Saliba following the termination.

When Hunt subsequently learned of Sali-ba’s representation of the Government, it objected to the representation and informed the Government of Saliba’s claims against Hunt and of the pending lawsuit. Hunt and Yemen Hunt later met with Saliba and Bum-ham, Connoly representatives in an attempt to resolve the potential conflict of interest issues to no avail. Hunt then sued Burnham, Connoly in United States District Court for the Eastern District of Michigan (“Michigan litigation”), seeking an injunction against Burnham, Connotas representation of the Government. On January 26,1988, the court enjoined Burnham, Connoly from representing the Government. Two days later, Saliba left Burnham, Connoly and started practice as a sole practitioner with the Government as his client.

On February 29, 1988, Hunt amended its complaint in the Texas litigation to include a claim for breach of confidentiality. During February and March, 1988, Saliba advised the Government. The government did not renew his employment agreement upon its expiration at the end of the three month period. In May, 1988, Saliba counterclaimed against Hunt in the Texas litigation for improper termination, tortious interference, and antitrust violations.

In February, 1990, Saliba sued Exxon in federal court for tortious interference, statutory conspiracy, and antitrust violations. Sa-liba later amended his complaint to name Exxon Yemen as a defendant, again claiming tortious interference, statutory conspiracy, and antitrust violations. 1 On May 4, 1990, Saliba and Hunt settled the Texas litigation. The resulting settlement agreement provided, among other things, for a release of the partnership.

II. ANALYSIS

Jurisdiction of the court is proper pursuant to 28 U.S.C. § 1332. 2 In a diversity action, the court must apply the substantive law of the forum state. Sokolowski v. Flanzer, 769 F.2d 975, 977 (4th Cir.1985). Therefore, the court will apply the substantive law of Virginia, including Virginia’s conflict of law rules.

Federal Rule of Civil Procedure 56(c) states that summary judgment is proper where “there is no genuine issue as to any material fact.” In this case, the defendant “bears the initial burden of pointing to the absence of a genuine issue of material fact.” Temkin v. Frederick County Comm’rs, 945 F.2d 716, 718 (4th Cir.1991) (citing Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986)), cert. denied, — U.S. -, 112 S.Ct. 1172, 117 L.Ed.2d 417 (1992). If the defendant carries this burden, “[t]he burden then shifts to the non-moving party to come forward with facts sufficient to create a triable issue of fact.” Id. at 718-19 (citing Anderson v. Liberty Lobby, Inc., 411 U.S. 242, 247-48, 106 S.Ct. 2505, 2509-10, 91 L.Ed.2d 202 (1986)).

Moreover, “[o]nce the moving party has met his burden, the nonmoving party must come forward with some evidence beyond the mere allegations contained in the pleadings to show there is a genuine issue for trial.” Baber v. Hosp. Corp. of Am., 977 F.2d 872, 874-75 (4th Cir.1992). Although admissibility of the evidence at trial is unnecessary, “ ‘[unsupported speculation is not sufficient to defeat a summary judgment motion.’ ” Id. (quoting Felty v. Graves-Humphreys Co., 818 F.2d 1126, 1128 (4th Cir.1987)).

A. Effect of the Release

Exxon Yemen has moved for summary judgment on the grounds that, as a matter of law, the settlement agreement aris *310

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Bluebook (online)
865 F. Supp. 306, 1994 U.S. Dist. LEXIS 14476, 1994 WL 548164, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saliba-v-exxon-corp-vawd-1994.