Vonocom, Inc. and Ibrahim Qattan v. AdvoCare International, LP

CourtCourt of Appeals of Texas
DecidedMarch 31, 2020
Docket05-19-00610-CV
StatusPublished

This text of Vonocom, Inc. and Ibrahim Qattan v. AdvoCare International, LP (Vonocom, Inc. and Ibrahim Qattan v. AdvoCare International, LP) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vonocom, Inc. and Ibrahim Qattan v. AdvoCare International, LP, (Tex. Ct. App. 2020).

Opinion

Affirm and Opinion Filed March 31, 2020

In The Court of Appeals Fifth District of Texas at Dallas No. 05-19-00610-CV

VONOCOM, INC. AND IBRAHIM QATTAN, Appellants V. ADVOCARE INTERNATIONAL, LP, Appellee

On Appeal from the 429th Judicial District Court Collin County, Texas Trial Court Cause No. 429-02966-2016

MEMORANDUM OPINION Before Justices Molberg, Reichek, and Evans Opinion by Justice Molberg

Vonocom, Inc. and Ibrahim Qattan appeal the trial court’s order granting

AdvoCare International, LP’s (AdvoCare) motion for partial summary judgment and

dismissing with prejudice their counterclaims for breach of contract and economic

duress/coercion. For the reasons set forth below, we affirm the trial court’s

judgment.

BACKGROUND AdvoCare sells energy, weight-loss, nutrition, and sports performance

products through independent distributors. When Quattan became an independent distributor for AdvoCare products in January 2013, he entered into a distributor

agreement that, among other things, prohibited the sale of AdvoCare products “in an

unauthorized manner (on Ebay, Craigslist, Amazon or using any other sales method

that is not in accordance with the AdvoCare Policies and Procedures).” Quattan sold

AdvoCare products through Vonocom, a company he established. Appellants do not

dispute that Vonocom sold AdvoCare products on Amazon. 1 On June 28, 2016,

AdvoCare’s counsel, Sean Lemoine, sent Quattan a “cease and desist” letter

regarding appellants’ alleged breaches of the distributor agreement. The cease and

desist letter stated:

We are aware that you have been illegally selling AdvoCare products on Amazon.com (“Amazon”) for several years. You also induce AdvoCare representatives to breach their contracts in order to obtain product to continue your illicit activities. You must immediately cease and desist from this conduct, or AdvoCare will be forced to file a lawsuit against you. You have twice entered into an agreement to distribute AdvoCare products, so you have already agreed to—and violated— AdvoCare’s Policies, Procedures, and Compensation Plan. [I have] attached your most recent Distributor Agreement, which incorporates the Policies and Procedures that were in force when you were most recently terminated from AdvoCare (collectively, the “Contract”). As you are aware, it is a breach of the Contract for an AdvoCare distributor to (1) advertise or sell AdvoCare products on auction websites (including, but not limited to, Amazon) and (2) supply any other person or entity with AdvoCare

1 In their first amended rule 13 motion and counterclaims, appellants state, “None of the Defendants other than Vonocom sold [AdvoCare] products on a website,” and “Vonocom ceased to sell AdvoCare products over the Amazon website . . . .” –2– products with the knowledge or inference that those products will be sold in an unauthorized manner.

***

. . . As of the date of this letter, you offer at least 29 different AdvoCare products for purchase through the Amazon Account . . . . In the last several years, however, we have evidence from Amazon that you have sold millions of dollars of AdvoCare’s products through this e-commerce site. We are also aware of your previous violations of AdvoCare’s agreements. To refresh your memory, you were terminated in 2013 for numerous violations of your Contract. At the time, your fraudulent conduct resulted only in your termination from AdvoCare, though such conduct remains legally actionable. It is clear that AdvoCare’s warning to you has gone unheeded, and you intend to continue your illicit conduct, increasing your legal exposure and resultant damages to AdvoCare. Further you intend to induce yet more AdvoCare representatives to breach their contracts dragging them into your illegal activities. We demand you immediately cease and desist your illicit behavior and not compound your errors by simply attempting to create additional sham accounts, either through AdvoCare, Amazon, or any other portal. We would also encourage you not to lead others into litigation by encouraging them to provide you with AdvoCare product, or sell products for you. While I am sure the individuals you have manipulated have no interest in becoming co-defendants with you, any actions taken by them to further your schemes may subject them to legal action as co-conspirators.

Because AdvoCare now anticipates litigation against you, you are advised not to delete, destroy, or manipulate any of your electronic devices, including, but not limited to, smart phones, laptops, and/or desktop computers. This also applies to taking such steps as attempting to clear out your email accounts, whether cloud- based or associated with your companies YYB Tec-Source, Inc., Borders Connection, Inc., Vonocom, Inc., or Community Voice. You must respond to this letter no later than 5:00 p.m. CST on Tuesday[,] July 5, 2016. Confirm to us that you will discontinue –3– all sales of AdvoCare products, and turn over to us all such products currently in your possession. You are advised that AdvoCare will also seek its attorneys’ fees, should it be forced to correct your behavior through litigation.

Appellants’ counsel, Chris Wynne, acknowledged receipt of the cease and

desist letter in a July 1, 2016 email to Lemoine. A series of emails between Wynne

and Lemoine ensued. On July 5, Wynne advised Lemoine that Vonocom and

Quattan, among other related entities:

. . . have ceased selling Advocare [sic] products on Amazon if they have done so in the past. They also have no intention to sell any Advocare product in the future. Finally, there should be no Advocare product on their Amazon store(s) as of now. Please confirm receipt or let me know if you need anything else to settle this matter. If not, please send me a settlement agreement. (Emphasis added.) On July 5, Lemoine responded in two sentences, “What about

who he bought it from? Not good enough for him to stop selling.” The following

day, Wynne expressed his client was “amenable to a settlement to save costs” and

he expressly proposed an offer of settlement:

Let me clarify that my client is amenable to a settlement to save costs. . . . [T]he offer to settle this matter is that my client will agree to not sell any Advocare product in the future. This offer expires on Monday July 11, 2016 5PM [sic] Central. In counsels’ email correspondence from July 1 through July 5, only Wynne

mentioned the possibility of a “settlement.” On July 7, Lemoine put the brakes on

Wynne’s attempt to characterize the parties’ previous emails as settlement

discussions, clarifying:

–4– We are obviously not on the same page. AdvoCare has authorized us to file suit against Mr. Qattan and Vonoco[m], [and others]. If he is not willing to disclose every AdvoCare representative he and his entities are buying product from then there is no chance for a settlement. We will either get the information in discovery or Mr. Qattan and his entities can give it to us voluntarily and try to work out a settlement. You have until noon, July 11, 2016, to start disclosing who you are buying the AdvoCare product from.

On July 11, 2016, Wynne stipulated two agreements his client would be willing

make “to settle this matter”:

[M]y client is not currently selling Advocare products on Amazon and will agree to not selling Advocare products in the future to settle this matter. My client will also be glad to agree to discourage Advocare distributors from selling on Amazon should they approach my client in the future.

On July 12, 2016, AdvoCare filed suit against appellants, among others,

asserting claims for tortious interference with existing contracts, conspiracy, and

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