SJ Abstract d/b/a InterstateAbstract.com v. OLD REPUBLIC TITLE

CourtDistrict Court, E.D. Pennsylvania
DecidedJune 26, 2024
Docket2:21-cv-01334
StatusUnknown

This text of SJ Abstract d/b/a InterstateAbstract.com v. OLD REPUBLIC TITLE (SJ Abstract d/b/a InterstateAbstract.com v. OLD REPUBLIC TITLE) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SJ Abstract d/b/a InterstateAbstract.com v. OLD REPUBLIC TITLE, (E.D. Pa. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

SJ ABSTRACT d/b/a : CIVIL ACTION INTERSTATEABSTRACT.COM, : et al. : NO. 21-1334 Plaintiffs : : v. : : OLD REPUBLIC NATIONAL : TITLE INSURANCE COMPANY : Defendant :

NITZA I. QUIÑONES ALEJANDRO, J. JUNE 26, 2024

MEMORANDUM OPINION INTRODUCTION Plaintiffs SJ Abstract d/b/a InterstateAbstract.com (“InterstateAbstract” or “Plaintiff”) and Ramon Gaber (“Gaber”) filed an amended complaint in this matter against Defendant Old Republic National Title Insurance Company (“Old Republic” or “Defendant”) asserting, inter alia, a claim for breach of contract that existed between Plaintiff InterstateAbstarct and Defendant (the “Agreement”). (ECF 7). By Order dated October 14, 2021, Defendant’s motion to dismiss was granted resulting in the dismissal of Gaber’s claims and all of InterstateAbstract’s claims except the claim premised on an alleged breach of the Confidentiality Clause of the Agreement; to wit: stemming from the production of documents at a deposition and from a voicemail. (See ECF 11, 12). Presently, before this Court is Defendant’s motion for summary judgment, filed pursuant to Federal Rule of Civil Procedure (“Rule”) 56, on the remaining breach of contract claim. (ECF 27). Plaintiff opposes the motion. (ECF 28).1 For the reasons set forth, Defendant’s motion for summary judgment is granted, in part, and denied, in part.

BACKGROUND When ruling on a motion for summary judgment, a court must consider all record evidence and the supported relevant facts in the light most favorable to the non-movant — here, Plaintiff. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986); Galena v. Leone, 638 F.3d 186, 196 (3d Cir. 2011). The facts relevant to the underlying motion for summary judgment are:2 Plaintiff is a Pennsylvania limited liability company providing comprehensive services, including, inter alia, title insurance, deed preparation and recording, title searches, property and judgment reports, and survey requests. Defendant is a Florida title insurance company whose national network operation includes contracting with real estate professionals, lenders, and approved agents to secure safe and efficient real estate transactions.

In December 2014, Plaintiff entered into a policy-issuing agent contract with Defendant (the “Agreement”). Under the terms of the Agreement, Plaintiff was appointed as a policy-issuing agent for Defendant. In turn, Defendant served as Plaintiff’s underwriter, a role that involved monitoring and auditing Plaintiff’s business. The Agreement contained, inter alia, the following confidentiality clause, (the “Confidentiality Clause”):

The parties agree that neither will, without the prior written consent of the other, use, divulge, disclose or make accessible to any other person, firm, partnership or corporation, any Confidential Information, as hereinafter defined, except when required to do so by law, provided, however, that in the case of any such requirement, such party shall provide written notice to the other at least 10 days prior to producing such Confidential Information. For purposes of this agreement, “Confidential Information” shall mean all non- public information concerning the business of the party which has value to the party and is not generally known to competitors, including, by way of illustration and without limitation, information relating to its financial products, product development, customer lists, business and marketing plans and strategies, and operating

1 This court has also considered Defendant’s reply. (ECF 29).

2 These facts are taken from the parties’ briefs, exhibits, and statements of facts. To the extent that any fact is disputed, such dispute will be noted and, if material, will be construed in Plaintiff’s favor. policies and manuals, except for items which become publicly available information other than through a breach by either party of its duty hereunder.

The Agreement does not mention any date for terminating or ending the Agreement.

At some later unknown date, Plaintiff became a party to litigation when one of its related companies, Realty Mark LLC, initiated a lawsuit against 3K Realty Group LLC (the “Nexus Litigation”). During the course of the Nexus Litigation, Dwight Edwards (“Edwards”), one of Defendant Old Republic’s employees, left a voicemail for Kenneth Bello, Jr., one of the owners of 3K Realty Group LLC., stating that Plaintiff was having “recording issues.”

On July 10, 2019, in connection with the Nexus Litigation, Edwards was served with a subpoena that ordered him to testify and produce “any and all audits done on behalf of Old Republic Title to SJ Abstract d/b/a Interstate Abstract.” The deposition was scheduled for July 15, 2019. Edwards did not notify Plaintiff of the subpoena, but a copy of the subpoena was served on Plaintiff’s counsel. By letter dated July 12, 2019, Plaintiff’s attorney Anthony Gallia (“Attorney Gallia”), writing on behalf of Plaintiff and Realty Mark LLC, notified Edwards that Plaintiff was aware he was subpoenaed and reminded him of the Confidentiality Clause of the Agreement.

Edwards appeared for his deposition on July 15, 2019, and brought Plaintiff’s files with him, as directed by the subpoena. Attorney Gallia was present at Edwards’ deposition on behalf of Plaintiff and Realty Mark LLC. When Edwards was asked to hand over the documents, Attorney Gallia made no objections. Edwards turned over the documents and they were copied. The disclosed documents included confidential details such as Social Security numbers, tax ID numbers, policy premium arrangements, and personal credit reports, including those of Gaber. Both 3K Realty’s attorney and Attorney Gallia used the produced documents while deposing Edwards.

On August 1, 2019, William Schlitte, an auditor for Defendant Old Republic, was deposed in the Nexus Litigation. Attorney Gallia was present at this deposition as well, representing Plaintiff and Realty Mark LLC. Documents from Plaintiff’s files that Edwards disclosed at his deposition were used to depose William Schlitte. Again, Attorney Gallia did not object.

At no point during or after Edwards’ deposition did Plaintiff notify Edwards that he had breached the Confidentiality Clause of the Agreement. On August 4, 2020, more than a year after Edwards’ deposition, Plaintiff filed this action asserting a breach of contract claim based on Edwards’ unauthorized disclosures. LEGAL STANDARD Rule 56 governs summary judgment motion practice. Fed. R. Civ. P. 56. Specifically, this Rule provides that summary judgment is appropriate “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Id. A

fact is “material” if proof of its existence or non-existence might affect the outcome of the litigation, and a dispute is “genuine” if “the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Anderson, 477 U.S. at 248. When evaluating a motion under Rule 56, the court must view the evidence in the light most favorable to the nonmoving party. Galena, 638 F.3d at 196. Pursuant to Rule 56, the movant bears the initial burden of informing the court of the basis for the motion and identifying those portions of the record that the movant “believes demonstrate the absence of a genuine issue of material fact.” Celotex Corp. v.

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Cite This Page — Counsel Stack

Bluebook (online)
SJ Abstract d/b/a InterstateAbstract.com v. OLD REPUBLIC TITLE, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sj-abstract-dba-interstateabstractcom-v-old-republic-title-paed-2024.