TIGER SUPPLIES INC v. MAV ASSOCIATES LLC

District Court, D. New Jersey·Decided June 3, 2022·No. 2:20-cv-15566·Unknown

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

: TIGER SUPPLIES INC d/b/a ALPINE : INDUSTRIES, INC, : Civil Action No. 20-15566 (SRC) : Plaintiff, : : OPINION v. : : MAV ASSOCIATES LLC AND : MICHAEL DEL TITO, : : Defendants. : :

CHESLER, District Judge

This matter comes before the Court on the motion for summary judgment filed by Defendants MAV Associates LLC (“MAV”) and Michael Del Tito (“Del Tito”) (collectively “Defendants”). (ECF No. 42). Plaintiff Tiger Supplies Inc d/b/a Alpine Industries, Inc. (“Plaintiff” or “Alpine”) has opposed Defendants’ motion and filed its own cross-motion for partial summary judgment. (ECF No. 44). The Court, having considered the papers filed by the parties, proceeds to rule on the motions without oral argument pursuant to Federal Rule of Civil Procedure 78. For the reasons that follow, the Court will deny Defendants’ motion for summary judgment in part and grant it in part and deny Plaintiff’s cross-motion for summary judgment. I. BACKGROUND This case arises out of a contractual dispute between Alpine and MAV. Alpine is a manufacturer and distributor of products in the food service and janitorial industries.1 (Plaintiff’s

1 Defendants contest Alpine’s description of itself as a “manufacturer” because the record indicates Alpine did not manufacture any of the products at issues here but rather imported them from China. (Defendants’ Opposition to Plaintiffs’ Statement of Uncontested Material Facts ¶ 1). While this may be true, Defendants also concede that it is Statement of Uncontested Material Facts ¶ 1) [hereinafter “Plaintiff’s SUMF”]. MAV is an independent manufacturer’s representative in the janitorial and sanitation industry and Del Tito is MAV’s sole member.2 (Defendants’ Statement of Uncontested Material Facts ¶¶ 5, 8, 10) [hereinafter “Defendants’ SUMF”]. In January 2018, the parties entered into a Sales Representative Agreement (“the

Agreement”).3 (Defendants’ SUMF ¶¶ 24, 25; Plaintiff’s SUMF ¶ 5). In relevant part, the Agreement authorized MAV to sell Alpine’s products to janitorial dealers in a specified geographic area. (Agreement ¶¶ 2, 3). It also required that MAV use its “best sales effort” throughout the territory. (Agreement ¶ 12) [hereinafter “Paragraph 12”]. Finally, the Agreement contained a section titled “Competitive Products,” which reads in full: MAV Associates LLC has created very successful relationships with the manufactureres [sic] that we represent, we unerstand [sic] that there will be times that some of these manufacturers may carry products of similar style, or brand. We will always do the very best we can to represent your products to all of our customoer [sic] base. We will not share or devulge [sic] any information pricing, samples, literature or privelaged [sic] company information knowingly to a direct competiter [sic] of Alpine Industries, Inic. [sic] for any reason.

(Agreement ¶ 13) [hereinafter “Paragraph 13”].

Plaintiff alleges Defendants breached the Agreement beginning in mid-2020. Around that time, demand for Plaintiff’s products, especially its soap dispensers and trash cans, increased exponentially because of the COVID-19 pandemic. (Defendants’ SUMF ¶¶ 40, 41; Plaintiff’s

“common in the industry to call oneself a manufacturer even if [you are] getting the product and importing it.” (Def. Reply Br. at 4 n.1); see also (Def. Br. at 10). Thus, the Court finds that Alpine’s description of itself as a “manufacturer” is accurate here. 2 Plaintiff asserts that Del Tito’s wife, Arlynn Wiley (“Wiley”), “was also [a MAV] officer or employee” during the relevant time period. (Plaintiff’s Opposition to Defendants’ SUMF ¶ 2). However, Plaintiff admits that Del Tito testified at his deposition that he was MAV’s sole member. (Plaintiff’s Opposition to Defendants’ SUMF ¶ 2); see also (Del Tito Dep. 8:8-10). And Wiley was originally a named Defendant in this litigation, but the parties agreed to dismiss any claims against her without prejudice in March 2021. (ECF No. 21). Given all of this, the Court finds that it is inconsequential whether Wiley was also affiliated with MAV for the purposes of the pending motions. 3 Both parties attached the Agreement to their briefing materials. (Def. Br., Exhibit F; Pl. Br., Exhibit 1). SUMF ¶ 13). Simultaneous with this increase in demand, Defendants began working with a man named William Tan (“Tan”) who operated two competing manufacturers—Organic Technologies and Green Health Choice LLC. (Plaintiff’s SUMF ¶¶ 28, 29). Plaintiff alleges Tan located Alpine’s suppliers and then he and MAV used them “to buy Alpine’s products at the source and sell them directly to Alpine’s customers.” (Plaintiff’s SUMF ¶¶ 32–37, 41). Plaintiff maintains

Del Tito was aware that Tan had found Alpine’s suppliers but did not alert Alpine to this fact. (Plaintiff’s SUMF ¶ 39). Plaintiff also alleges that MAV and Tan sold their products utilizing the same store keeping units (SKUs) and product descriptions as those used by Alpine, (Plaintiff’s SUMF ¶ 24), and even convinced customers that had placed orders with Alpine to instead purchase products directly from Tan and MAV, (Plaintiff’s SUMF ¶ 27). For Plaintiff, all of these actions violated the Agreement. Alpine terminated the Agreement in September 2020, (Defendants’ SUMF ¶ 79), and then filed a complaint against Defendants in New Jersey state court, (ECF No. 1). Defendants removed the action to this Court in November 2020. (ECF No. 1). After removal, Plaintiff filed an

Amended Complaint, which includes twelve different causes of action: Count 1 for breach of contract against MAV, Count 2 for breach of the implied covenant of good faith and fair dealing against MAV, Count 3 for violation of the New Jersey Trade Secrets Act against both Defendants, Count 4 for misappropriation of confidential information against both Defendants, Count 5 for tortious interference with business relations and prospective economic advantage against both Defendants, Count 6 for unfair competition against both Defendants, Count 7 for conversion against both Defendants, Count 8 for permanent injunction, Count 9 for breach of fiduciary duty against both Defendants, Count 10 for breach of the faithless servant doctrine against both Defendants, Count 11 for declaratory judgment, and Count 12 for violation of the Lanham Act and N.J. Stat. Ann. § 56:4-1 against both Defendants. Defendants answered the Amended Complaint with three counterclaims related to allegedly unpaid commissions Alpine owes them: Count 1 for violation of the New Jersey Sales Representative Rights Act (“SRRA”), Count 2 for breach of contract, and Count 3 for detrimental reliance, promissory estoppel, and unjust enrichment. (ECF No. 11).

Discovery has since commenced. A couple of months ago, Defendants filed a motion for sanctions, (ECF No. 33), which the Court dismissed without prejudice as premature, (ECF No. 39). However, in response to this motion, Plaintiff agreed to withdraw Counts 3, 4, and 7 of the Amended Complaint—the claims for violation of the New Jersey Trade Secrets Act, misappropriation of confidential information, and conversion.4 (ECF No. 37). Defendants now seek summary judgment in their favor on the remaining counts of the Amended Complaint as well as their counterclaims. In response, Plaintiff (1) seeks summary judgment in its favor on its breach of contract and breach of good faith and fair dealing claims against MAV and (2) opposes Defendants’ motion for summary judgment on the remaining claims in the Amended Complaint

Free access — add to your briefcase to read the full text and ask questions with AI

TIGER SUPPLIES INC v. MAV ASSOCIATES LLC, (D.N.J. 2022).

TIGER SUPPLIES INC v. MAV ASSOCIATES LLC (TIGER SUPPLIES INC v. MAV ASSOCIATES LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Adickes v. S. H. Kress & Co.
398 U.S. 144 (Supreme Court, 1970)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Mellon Bank, N.A. v. Aetna Business Credit, Inc.
619 F.2d 1001 (Third Circuit, 1980)
Cristen M. Gleason v. Norwest Mortgage, Inc
243 F.3d 130 (Third Circuit, 2001)
Kirleis v. Dickie, McCamey & Chilcote, P.C.
560 F.3d 156 (Third Circuit, 2009)
Frederico v. Home Depot
507 F.3d 188 (Third Circuit, 2007)
Atlantic Northern Airlines, Inc. v. Schwimmer
96 A.2d 652 (Supreme Court of New Jersey, 1953)
F.G. v. MacDonell
696 A.2d 697 (Supreme Court of New Jersey, 1997)
Alexander v. Cigna Corp.
991 F. Supp. 427 (D. New Jersey, 1998)
Pacifico v. Pacifico
920 A.2d 73 (Supreme Court of New Jersey, 2007)
Cameco, Inc. v. Gedicke
724 A.2d 783 (Supreme Court of New Jersey, 1999)
State Troopers Fraternal Assoc. of NJ, Inc. v. State
692 A.2d 519 (Supreme Court of New Jersey, 1997)
Sons of Thunder, Inc. v. Borden, Inc.
690 A.2d 575 (Supreme Court of New Jersey, 1997)
Pilkington v. United Airlines, Inc.
921 F. Supp. 740 (M.D. Florida, 1996)
Conway v. 287 Corporate Center Associates
901 A.2d 341 (Supreme Court of New Jersey, 2006)
Wade v. Kessler Institute
798 A.2d 1251 (Supreme Court of New Jersey, 2002)
Printing Mart-Morristown v. Sharp Electronics Corp.
563 A.2d 31 (Supreme Court of New Jersey, 1989)