Weinstein v. Meritor, Inc.

District Court, D. Nevada·Decided March 3, 2020·No. 2:16-cv-01076·Unknown

Opinion

M. Paul Weinstein, Case No.: 2:16-cv-01076-JAD-VCF Plaintiff Order (1) Denying Weinstein’s Motion for Partial Summary Judgment, v. (2) Granting Meritor’s Motion for Summary Judgment, (3) Denying Meritor, Inc., Weinstein’s Motion for Reconsideration, (4) Denying Weinstein’s Motion for Leave Defendant to File Reply, (5) Denying Weinstein’s Motion to Strike, and (6) Closingthis Case [ECF Nos.65, 83,124, 127, 129] Plaintiff M. Paul Weinstein sues defendant Meritor, Inc. for reneging on an agreement to purchase an anti-corrosion coating product called ZXP3 or NanoWardand then disparaging the product to potential customers. I previously granted Meritor’s motion to dismiss Weinstein’s second amended complaint in part, but gaveWeinstein leave to amend.1 Weinstein’s third amended complaint asserts causes of action for interference with prospective economic advantage, injurious falsehood, breach of contract, promissory estoppel, and violations of the Nevada Deceptive Trade Practices Act (NDTPA).2 Weinstein moves for partial summary judgment on his intentional-interference and injurious-falsehood claims, and Meritor moves for summary judgment on all claims. Weinstein also objects to Magistrate Judge Ferenbach’s rulings denying his motion for a dispositive sanction under Rule 37 against Meritorand to consolidate his motion for sanctions with the summary-judgment motions. Weinstein moves for 1 ECF No. 49. 2 ECF No. 70. leave to file a reply in support of his objectionand to strike Meritor’s response to his motion for leave. The parties are familiar with the facts, and I do not repeat them here except where necessary.3 I deny Weinstein’s summary-judgment motion and grant Meritor’s because Weinstein fails to identify evidence capable of admission at trial to raise a genuine issue of

material fact. I overrule Weinstein’s objections to Judge Ferenbach’s order because he fails to identify an error. I deny Weinstein’s motion for leave to file areplyin support of his objections because he has not shown good cause to do so. And I deny Weinstein’s motion to strike Meritor’s response to his motion for leave because Meritor is entitled to file a response to his motion. Discussion I. Motions for summary judgment [ECF Nos. 65, 83] The principal purpose of the summary-judgment procedure is to isolate and dispose of factually unsupported claims or defenses.4 The moving party bears the initial responsibility of

presenting the basis for its motion and identifying theportions of the record or affidavits that demonstrate the absence of a genuine issue of material fact.5 If the moving party satisfies its burden with a properly supported motion, the burden then shifts to the opposing party to present specific facts that show a genuine issue for trial.6 “When simultaneous cross-motions for summary judgment on the same claim are before the court, the court must consider the 3 I incorporate herein the facts detailed in my prior order. ECF No. 49. 4 Celotex Corp. v. Catrett, 477 U.S. 317, 323–24 (1986). 5 Celotex, 477 U.S. at 323; Devereaux v. Abbey, 263 F.3d 1070, 1076 (9th Cir. 2001) (en banc). 6 Fed. R. Civ. P. 56(e); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248(1986); Auvil v. CBS 60 Minutes,67 F.3d 816, 819 (9th Cir. 1995). appropriate evidentiary material identified and submitted in support of”—and against—“both motions before ruling on each of them.”7 A. Intentional interference with prospective economic advantage Weinstein alleges that Meritor intentionally interfered with his business relationships with other potential purchasers of NanoWard, including Centric Parts, Bendix, UQuality,

Peterbilt, Blue Bird Bus, and First Student, by refusing to validate NanoWard.8 Meritor argues it could not have interfered becauseopportunities arenot cognizable business expectancies, there is no evidence showing that Meritor had the requisite intent, and Weinstein’s alleged damages are speculative.9 Under Michigan law,10 interference with prospective economic advantage requires proof of: “(1) the existence of a valid business relationship or expectancy; (2) knowledge of the relationship or expectancy by the defendant; (3) intentional interference by the defendant which induces or causes a breach or termination of the relationship or expectancy; and (4) damage to the plaintiff.”11 A “valid business expectancy” is more than a “subjective expectation of entering

7 Tulalip Tribes of Washington v. Washington, 783 F.3d 1151, 1156 (9th Cir. 2015) (citing Fair Hous. Council of Riverside Cnty., Inc. v. Riverside Two,249 F.3d 1132, 1134 (9th Cir. 2001)). 8 Weinsteinasserts in his third amended complaint that Meritor interfered with his business relationships with third-parties, but he appears to argue in his motion for partial summary judgment that Meritor interfered with Weinstein’s business relationship with Meritor. Compare ECF No. 70 with ECF No. 65 at 17–18. Weinstein later appears to abandon that argument, but to the extent he claims that Meritor interfered with Weinstein’s relationship with Meritor, that claim fails as a matter of law. See, e.g.,Reed v. Michigan Metro Girl Scout Council, 506 N.W.2d 231, 233 (Mich. App. 1993) (“To maintain a cause of action for tortious interference, the plaintiffs must establish that the defendant was a ‘third party’ to the contract or business relationship.”). 9 ECF Nos. 65 at 15–24; 83 at 8–15. 10 I previously ruled that Michigan law applies to Weinstein’s tort-and contract-based claims, ECF No. 49 at 6–8, and the parties both apply Michigan law in their briefs. 11 Stromback v. New Line Cinema, 384 F.3d 283, 306 (6th Cir. 2004) (quoting BPS Clinical Labs. v. Blue Cross & Blue Shield of Mich., 552 N.W.2d 919, 925 (Mich. App. 1996). into a business relationship.”12 “The expectancy must be a reasonable likelihood or probability, not mere wishful thinking.”13 For example, one district court applying Michigan law held that a plaintiff did not have a valid business expectancy in an agreement to negotiate a series of agreements that were themselves subject to multiple approvals and contingencies.14 Weinstein’s proffered business opportunities are either speculative or irrelevant.

Weinstein only had “preliminary discussions”—consisting of phone calls and a single meeting— with UQuality and Centric Parts, and Weinstein never discussed specific terms with either company.15 With respect to Bendix, the only evidence in the record is an email from Weinstein to Bendix responding to Bendix’s purported interest in NanoWard.16 Weinstein does not cite to evidence in support of his assertion that he had a valid business expectancy with Peterbilt.17 Blue Bird and First Student either tested or expressedinterest in ZXP3, but through Meritor and only in 2010, well before the alleged interference in 2014 and 2015.18 Because a reasonable jury could not find that Weinstein had anything more than a subjective expectation of a business relationshipat the time of Meritor’s alleged interference, no genuine issue of fact remains for

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Weinstein v. Meritor, Inc., (D. Nev. 2020).

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