Schwartz v. Urban Compass, Inc

CourtDistrict Court, District of Columbia
DecidedOctober 6, 2021
DocketCivil Action No. 2019-0340
StatusPublished

This text of Schwartz v. Urban Compass, Inc (Schwartz v. Urban Compass, Inc) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwartz v. Urban Compass, Inc, (D.D.C. 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

JILL SCHWARTZ,

Plaintiff,

v. Civil Action No. 1:19-cv-00340 (CJN)

ALEXANDRA THOMAS SCHWARTZ,

Defendant.

MEMORANDUM OPINION

Jill Schwartz, a real estate agent in the D.C. Metropolitan area, filed this lawsuit against

her former colleague Alexandra Thomas Schwartz. See generally Am. Compl., ECF No. 40.

Thomas Schwartz (Thomas for short) responded with several counterclaims. See generally Def.’s

Ans. & Countercls. (“Def.’s Ans.”), ECF No. 41. Both Schwartz and Thomas have now moved

for summary judgment. See generally Pl.’s Mot. for Summ. J. (“Pl.’s Mot.”), ECF No. 57; Def.’s

Cross-Mot. for Summ. J. (“Def.’s Mot.”), ECF No. 59. For the following reasons, the Court grants

summary judgment to Thomas as to all of Schwartz’s claims, and to Schwartz as to Thomas’s false

advertising and tortious interference counterclaims. But the Court denies Schwartz’s motion for

summary judgment as to Thomas’s defamation counterclaim and her unfair competition

counterclaim.

I. Background

Schwartz initiated this suit when she sued her former broker, Urban Compass, Inc., and

three of her former team members: Thomas, Danielle Spira, and Raymond Ferrara. Schwartz’s

dispute with Compass has since gone to arbitration and her claims relating to Spira and Ferrara

have been resolved. See Order, ECF No. 63. That leaves Thomas as the lone Defendant. Id.

1 Schwartz joined Compass in August 2016. Her Independent Contractor Agreement

provided her with office space, marketing, and technical support in exchange for fifteen percent of

her commissions. Am. Compl. ¶¶ 8, 45; see also Jill Schwartz’s ICA, ECF No. 27-2. Over the

course of the next year, Schwartz recruited Thomas, Spira, and Ferrara to form the “Jill Schwartz

Group.” Am. Compl. ¶¶ 10–13.

In February 2017, Schwartz appointed Thomas as Senior Vice President of the Group. Id.

¶ 15. Thomas, like Schwartz, signed her own Independent Contractor Agreement with Compass.

See generally Thomas’s ICA, ECF No. 47-2. She also signed a “Team Contract” with Schwartz,

which detailed (1) the commission splits among the team members and (2) the support provided

by the Group (including access to the Group’s digital assets and marketing materials). See Team

Contract (“Team Contract”), ECF No. 20-1 at 2. The agreement permitted Thomas to utilize the

Group’s customer relation management system and its marketing database to “target market her

sphere of influence.” Id. It also provided that, in the event of a member of the team’s dissolution,

all the Group’s “internal plans, procedures, processes and group infrastructure [would] remain

completely confidential,” and the “CRM Database that house[d] the client names [would] revert

to the original client ownership profile.” Id. at 3.

In the summer of 2018, the team members informed Schwartz of their intention to leave.

Def.’s SOMF (“Def.’s SOMF”), ECF No. 59-1 at ¶¶ 37, 41. Schwartz and the team members

agreed on a payout plan for the properties that were still under contract. Id. ¶¶ 62–63. After their

departure, the team members co-listed three separate properties, but never formed a team of their

own. Id. ¶ 72. Compass terminated Schwartz in October 2018; she now operates the Group

through a different broker. Id. ¶ 217.

2 Both Schwartz and Thomas claim that the other engaged in tortious conduct in the months

surrounding the exit of the team members from the Group. Schwartz claims that Thomas exploited

the Group’s resources to steal listings and clients, see generally Am. Compl. In particular,

Schwartz sues Thomas for (1) breach of contract, (2) conspiracy, (3) breach of a fiduciary duty,

and (4) tortious interference with contract. Id. Thomas, on the other hand, claims that Schwartz,

acting out of spite, stole credit for several of her listings and defamed her in emails sent to Compass

management. See generally Def.’s Ans. She filed counterclaims for (1) false advertising,

(2) defamation, (3) unfair competition, and (4) intentional interference with prospective economic

opportunities. Id.

Schwartz has moved for summary judgment on all four of Thomas’s counterclaims. See

generally Pl.’s Mot. Thomas has filed her own motion for summary judgment, seeking judgment

in her favor on both her own counterclaims and all of Schwartz’s claims against her.1 See generally

Def.’s Mot.

II. Legal Standard

Summary judgment is appropriate “if the movant shows that there is no genuine dispute as

to any material fact and that the movant is entitled to judgment as a matter of law.” Fed. R. Civ.

P. 56(a). “A dispute about a material fact is not ‘genuine’ unless ‘the evidence is such that a

reasonable jury could return a verdict for the nonmoving party.’” Mogenhan v. Napolitano, 613

F.3d 1162, 1165 (D.C. Cir. 2010) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248

(1986)). “When the moving party does not bear the burden of persuasion at trial, its burden ‘may

be discharged by showing—that is, pointing out to the district court—that there is an absence of

1 Thomas and the other team members filed a joint motion for partial judgment on the pleadings. See Mot. for J. on the Pleadings, ECF No. 47. That motion is now moot in light of both Thomas’s cross-motion for summary judgment and the other team members’ dismissal from the case. See Def.’s Mot.

3 evidence to support the nonmoving party’s case.’” Mokhtar v. Kerry, 83 F. Supp. 3d 49, 60–61

(D.D.C. 2015) (quoting Celotex Corp. v. Catrett, 477 U.S. 317, 325 (1986)). After the moving

party has met its burden, the nonmoving party must designate “specific facts showing that there is

a genuine issue for trial” to defeat the motion. Celotex, 477 U.S. at 324. Though the Court “may

not resolve genuine disputes of fact in favor of the party seeking summary judgment,” Tolan v.

Cotton, 572 U.S. 650, 656 (2014) (citation omitted), the nonmoving party must show more than

“[t]he mere existence of a scintilla of evidence in support of its position,” Anderson, 477 U.S. at

252. In other words, “there must be evidence on which the jury could reasonably find for [the

nonmoving party].” Id. “[T]he determination of whether a given factual dispute requires

submission to a jury must be guided by the substantive evidentiary standards that apply to the

case.” Id. at 255.

“Credibility determinations, the weighing of evidence, and the drawing of legitimate

inferences from the facts are jury functions, not those of a judge.” Reeves v. Sanderson Plumbing

Prods., Inc., 530 U.S. 133, 150–51 (2000) (quoting Anderson, 477 U.S. at 255). But the

nonmoving party’s opposition must consist of more than unsupported allegations or denials; they

must be supported by facts from affidavits, declarations, or other competent evidence that show

there is a genuine issue for trial. See Fed. R. Civ. P. 56(e); Celotex, 477 U.S. at 324.

III. Analysis

A. Schwartz’s Claims against Thomas

a.

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