Veritas Allies LLC v. Schiappacasse

CourtDistrict Court, D. Oregon
DecidedOctober 5, 2023
Docket3:22-cv-00903
StatusUnknown

This text of Veritas Allies LLC v. Schiappacasse (Veritas Allies LLC v. Schiappacasse) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Veritas Allies LLC v. Schiappacasse, (D. Or. 2023).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF OREGON PORTLAND DIVISION

VERITAS ALLIES LLC, an Oregon Limited Liability Company, Plaintiff, Case No. 3:22-cv-00903-YY v. OPINION AND ORDER HEATHER SCHIAPPACASSE, an individual, Defendant.

YOU, Magistrate Judge. Plaintiff Veritas Allies, LLC, an Oregon company, has brought suit against defendant Heather Schiappacasse, alleging a claim of intentional interference with economic relations. Notice Removal, Ex. A (“Compl.”) at 4, ECF 1. Currently pending is Schiappacasse’s motion for summary judgment on personal jurisdiction. ECF 17. Because Schiappacasse is a Texas resident

and plaintiff has not produced evidence establishing that Schiappacasse has the necessary minimum contacts with Oregon, the motion for summary judgment for lack of personal jurisdiction is granted and the case against Schiappacasse is dismissed without prejudice. I. Background David Vizzini, who is plaintiff’s founder and chief executive officer, and Schiappacasse met at a health care industry conference sometime in 2017 or 2018.1 Over the next several years,

1 Engrav Decl., Ex. 8 (Schiappacasse Dep.) 36:4–16, ECF 22-1. Although the parties’ briefing is not entirely clear on the point, both Vizzini and Schiappacasse are involved in or operate various Vizzini and Schiappacasse talked often over the phone and would see each other at various conferences.2 In 2019, a company in which Schiappacasse was involved entered into a marketing contract with another of Vizzini’s companies, EquitasDx, LLC.3 Around 2019 or 2020, Vizzini offered Schiappacasse a job at one of his companies, but she declined.4 Around that same time,

Vizzini was in the process of divorcing former defendant Cynthia Free; he and Schiappacasse often talked about the divorce and Vizzini’s feelings about it.5 Over time, Vizzini and Schiappacasse’s “friendship . . . progress[ed],” and around July of 2021, they became involved in what Schiappacasse characterized as a romantic relationship.6 In October of 2021, both Schiappacasse and Vizzini attended the Self Insurance Institute of America conference in Austin, Texas.7 At the conference Schiappacasse “conducted a business meeting” with plaintiff’s executive team including Vizzini; at Vizzini’s request, Schiappacasse had prepared a list of her clients that might be interested in hearing about plaintiff’s products. 8 Later in the conference, Schiappacasse facilitated some introductions with potential clients.9

businesses that offer services to the health care industry. See Engrav Decl., Ex. 9 at 1, ECF 22-1 (“[Veritas] is an Oregon company . . . [that] provides highly complex, cost containment services to providers and payors operating in the health care industry.”). 2 Schiappacasse Dep. 78:3–23, ECF 22-1. 3 Id. at 22:10–17; Engrav Decl., Ex. 1 at 1, 6, ECF 22-1. Plaintiff asserts that EquitasDx was a subsidiary of plaintiff, Resp. 4, ECF 22, but does not cite any evidence in the record establishing that fact. See id. 4 Schiappacasse Dep. 81:9–25, ECF 22-1. 5 Id. at 72:16–22, ECF 22-1; id. at 78:1–80:16. 6 Id. at 80:5–16; Pitt Decl., Ex. 3 at 1, ECF 18. 7 Schiappacasse Dep. 37:12–22, ECF 22-1; Compl. ¶ 4, ECF 1-1. 8 Schiappacasse Dep. 40:15–41:23, ECF 22-1. 9 Id. at 42:2–14, 54:14–23. At some unspecified time during the conference, Schiappacasse learned that her relationship with Vizzini was not as it seemed.10 The Complaint alleges that at the conference, Vizzini, Schiappacasse, and several other people were at the hotel bar when an argument of some kind broke out; Schiappacasse was allegedly intoxicated and announced that she was going to “embarrass” Vizzini and ruin his business.11 Precisely what happened is not clear based on the

evidence in the record, but suffice it to say, the relationship between Schiappacasse and Vizzini ended, and Schiappacasse’s alleged efforts to make good on those threats are at the heart of the current dispute. Plaintiff alleges that Schiappacasse tortiously interfered with its business relationships in two ways. First, Schiappacasse allegedly made false statements about plaintiff and Vizzini to others in the health care industry, which in turn caused plaintiff to lose current and prospective clients.12 Specifically, plaintiff produced evidence that two companies, Diversified Benefit Administrators and Leading Edge Administrators, terminated or changed their working relationship with plaintiff based on Schiappacasse’s statements or conduct, and plaintiff lost

substantial revenue as a result.13 Second, plaintiff alleges that Schiappacasse coordinated with Vizzini’s ex-wife Free to commandeer the entity name “Veritas Allies, LLC” to prevent plaintiff and Vizzini from using the name.14 After the conference in Texas, Schiappacasse began a long-running correspondence with Free, who lived in Oregon.15 The two bonded over a shared belief that Vizzini had

10 Id. at 115:19–25, ECF 22-1; Schiappacasse Decl., Ex. 1 at 1, ECF 19. 11 Compl. ¶¶ 7–10, ECF 1. 12 Id. ¶¶ 14–18. 13 See Resp. 10–12, ECF 22; Engrav Decl., Ex. 4 at 1, ECF 22-1; id., Ex. 11 at 1–4, ECF 22-1. 14 Compl. ¶¶ 19–23, ECF 1. 15 See Schiappacasse Dep. 72:2–25, ECF 22-1. mistreated them, and they communicated often, exchanging hundreds of texts and phone calls.16 On October 8, 2021, Free texted a picture to Schiappacasse and wrote: “Look what I just did!!”17 Free had noticed that “Veritas Allies, LLC.” had been administratively dissolved by the Oregon Secretary of State on August 19, 2021, because Vizzini had apparently neglected to renew its business registration.18 Free then registered her own entity, “Veritas Allies, LLC,” which

subsequently prevented Vizzini from renewing his original registration using the “Veritas Allies, LLC” name.19 Schiappacasse responded, “You registered his LLC in your name?!? . . . OMG – THAT’S hysterical . . . He’s going to FREAK the f[***] out.”20 Later, Schiappacasse asked Free, “How do we secure the Veritas Allies name [n]ationally?”21 The two also discussed transferring the Veritas Allies name to Schiappacasse, though that never happened; Free eventually transferred the name back to Vizzini as part of the divorce settlement.22 Plaintiff initially filed this case in Oregon state court against both Free and Schiappacasse, who lives in Texas.23 Schiappacasse moved to dismiss based on, among other things, a lack of personal jurisdiction.24 Prior to the state court hearing on that motion, Vizzini

and Free settled the divorce proceeding; as part of the agreement, Free transferred the “Veritas Allies, LLC” business name to Vizzini and Vizzini agreed to dismiss Free from the case.25 The

16 Id. at 156:7–19. 17 Engrav Decl., Ex. 2 at 17, ECF 22-1. 18 Pitt Decl., Ex. 4 at 11, ECF 18. The period at the end of the entity’s name was included in the registration. Id. 19 See Engrav Decl., Ex. 13 ¶ 3, ECF 22-1. 20 Id., Ex. 2 at 17–18, ECF 22-1. 21 Id. at 24. 22 Pitt Decl., Ex. 10 at 1–8, ECF 18. 23 Id., Ex. 2 at 4, ECF 18. 24 See Engrav Decl., Ex. 9 at 1, ECF 22-1. 25 Pitt Decl., Ex. 10 at 1–8, ECF 18. Oregon state court denied Schiappacasse’s motion to dismiss,26 but Free’s dismissal from the case created complete diversity, and Schiappacasse then removed the case to this court in June of 2022.27 ECF 1. The parties engaged in a settlement conference in August of 2022, and then conducted discovery. ECF 11, 14. Schiappacasse then filed the currently pending motion for

summary judgment on the basis that this court lacks personal jurisdiction and plaintiff’s claims otherwise fail as a matter of law. Mot. Summ. J. 1–3, ECF 17. II. Legal Standard Under Federal Rule of Civil Procedure

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Veritas Allies LLC v. Schiappacasse, Counsel Stack Legal Research, https://law.counselstack.com/opinion/veritas-allies-llc-v-schiappacasse-ord-2023.