Ultrasound Imaging Corp. v. American Society of Breast Surgeons

358 F. Supp. 2d 475, 2005 U.S. Dist. LEXIS 3275, 2005 WL 491487
CourtDistrict Court, D. Maryland
DecidedFebruary 25, 2005
DocketRWT 03-CV-3015
StatusPublished
Cited by7 cases

This text of 358 F. Supp. 2d 475 (Ultrasound Imaging Corp. v. American Society of Breast Surgeons) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ultrasound Imaging Corp. v. American Society of Breast Surgeons, 358 F. Supp. 2d 475, 2005 U.S. Dist. LEXIS 3275, 2005 WL 491487 (D. Md. 2005).

Opinion

MEMORANDUM OPINION

TITUS, District Judge.

This cause of action arises out of the relationship between two entities involved in the detection and treatment of breast cancer. The Plaintiff, Ultrasound Imaging Corporation (“Ultrasound”), is a for profit company which is “in the business of providing ultrasound equipment to Breast Surgeons for the purpose of early detection of breast cancer[.]” Compl. ¶ 7. Ultrasound also provides free courses for accredited breast surgeons. See Zaglin Dep. at 79; Compl. ¶ 7. The Defendants are the American Society of Breast Surgeons (“The Society”), a not-for-profit organization of surgeons who are “concerned about access to the latest breast technologies and quality of patient care[,]” and Dr. Richard Fine, its President. Fine Aff. ¶ 3.

In its Complaint, Ultrasound alleges that Defendants engaged in various business torts and anticompetitive behavior in an effort to injure its business. Ultrasound’s specific averments relate to Defendants’ alleged interference with (1) its classes for accredited doctors, (2) its ad *477 vertising at and participation in Society-events, and (3) its ability to present its equipment and courses at the same hotel where the Society hosted its annual conference. Compl. ¶7-28. The Complaint asserts three causes of actions arising out of these activities: Count I alleges a claim for Tortious Interference with Contract, Count II alleges a claim for Tortious Interference with Business Relationships, and Count III alleges a claim for Illegal Restraint of Trade in Violation of Sections 1 and 2 of the Sherman Act. Compl. ¶ 30-44. The Defendants have moved for Summary Judgment.

Having considered the memoranda of the parties the Court now rules, no hearing being deemed necessary. Local Rule 105.6. For the reasons that follow, Defendants’ Motion for Summary Judgment will, by separate order, be granted.

BACKGROUND

Ultrasound is a Georgia corporation, formed in 1992, owned and controlled by Mr. Larry Zaglin. Zaglin Dep. ¶ 48-49. Ultrasound’s business plan is the distribution of medical equipment, specifically ultrasound systems, and other electronics devices such as printers and image management systems: Id. at ¶ 54-65. Mr. Zaglin testified that over the previous twelve years Ultrasound has had relationships with various ultrasound system organizations. Id. at ¶ 54-64. Currently, Ultrasound’s only ultrasound client is Shantou Institute of Ultrasonic Instruments (SIUI). Id. at ¶ 56-57. Ultrasound does, however, currently work with manufacturers of non-medical equipment such as Sony, Mitsubishi, and Dell. Id. at 64-65.

Ultrasound’s allegations against The Society and Dr. Richard Fine relate to the alleged tortious behavior undertaken by them as a means of injuring Ultrasound’s ability to compete in the ultrasound market. Ultrasound makes broad allegations that Dr. Fine “has used his position of authority as the President of the Society ... to prevent The Ultrasound Store’s [sic] from successfully obtaining the Society [sic] permission to exhibit and advertise lower priced ultrasound systems and free accredited breast courses[.]” Id. at ¶ 21. The Complaint, however, is laced -with vague and conclusory statements that make it very difficult to determine precisely what activities Ultrasound alleges give rise to a cause of action. See e.g., id. at ¶ 17 (“Fine ... has continuously intentionally interfered with the business of The Ultrasound Store[.]”); id. at ¶ 19 (“Fine has a fiduciary responsibility to the Society ... however Fine has acted contrary and breached his fiduciary duty to the Society.”). Moreover, Ultrasound’s failure to support its Opposition to Defendants’ Motion for Summary Judgment with any depositions, answers to interrogatories, or affidavits makes it very difficult for the Court to flesh out precisely what behavior allegedly gives rise to the business torts listed in the Complaint. There is one factual allegation, however, that is specifically set forth in the Complaint.

Ultrasound alleges that the Defendants prevented it from making a separate presentation of its products at the hotel that The Society was using for its annual conference in May 2003. Id. at ¶ 27. According to Ultrasound, Dr. Fine accomplished this feat by occupying the Atlanta, Georgia Hyatt suite that Ultrasound had reserved. Id. at ¶ 27; P’s Opp. at ¶ 16-23. Because Ultrasound had advertised, by hanging posters in the hotel, that its products could be found in that particular suite, it claims to have suffered injury to its business and reputation. P’s Opp. at ¶ 20-26. Ultrasound concludes that “Dr. Fine intentionally took the Ultrasound Store’s reserved room and refused to leave the room that the Ultrasound Store had contracted for to prevent the Ultrasound Store from demon *478 strating and selling its ultrasound machines.” P’s Opp. at ¶ 25. This conclusion, similar to the conelusory statements in. Ultrasound’s Complaint, is not supported by any documentation or discovery materials typically submitted as exhibits accompanying the opposition to a Motion for Summary Judgment. 1

Although it is not alleged in the Complaint, Ultrasound’s Opposition to Defendants’ Motion for Summary Judgment states that Defendants tortiously interfered with its relationship with “one of the top ten medical imaging companies in the world, Shimadzu.” P’s Opp. at ¶ 8. Ultrasound submits a letter sent to an agent of Shimadzu from counsel for The Society. P’s Ex. B. The letter appears to respond to a letter Shimadzu sent to The Society. It states that The Society will not permit Ultrasound to have any access to The Society or its workshops.. Id. The letter goes on to state that although The Society refuses to give Ultrasound access to its workshops, Shimadzu itself is not barred from applying to participate at future Society programs. Id. Soon after The Society issued this letter, Shimadzu terminated its relationship with Ultrasound. See P’s Ex. C. Ultrasound claims that the Defendants caused this termination by improper means and, as a result, it suffered “great humiliation in the industry and severe financial damages.” P’s Opp. at ¶ 12.

DISCUSSION

This case comes before the Court on Defendants’ Motion for Summary Judgment. See Fed.R.Civ.P. 56. Pursuant to Federal Rule of Civil Procedure 56, “summary judgment is proper ‘if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if -any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.’ ” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). “A material fact is one that ‘might affect the outcome of the suit under the governing law.’ ” Spriggs v. Diamond Auto Glass,

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358 F. Supp. 2d 475, 2005 U.S. Dist. LEXIS 3275, 2005 WL 491487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ultrasound-imaging-corp-v-american-society-of-breast-surgeons-mdd-2005.