WESTCOAST GROUND SERVICES, INC. v. ALLEGRO GROUP, INC.

District Court, E.D. Pennsylvania·Decided August 21, 2020·No. 2:19-cv-01570·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA WESTCOAST GROUND SERVICES, INC., et al., Plaintiffs, CIVIL ACTION v. NO. 19-1570 ALLEGRO GROUP, INC., et al., Defendants. PAPPERT, J. August 21, 2020 MEMORANDUM West Coast Ground Services, Inc. and Alexander Rubinchik filed a Complaint asserting a claim for breach of contract against Allegro Group, Inc. and claims for tortious interference with contractual relations, defamation and equitable relief against Allegro and its CEO Vadim Voronin. (Dkt. No. 1.) The Clerk of Court entered defaults against Allegro and Voronin and West Coast and Rubinchik moved for the entry of default judgments. (Dkt. Nos. 17 and 20.) The Court held an evidentiary hearing (Dkt. No. 31) and grants Plaintiffs’ motions. I One year ago, the Court held an on the record telephone conference to discuss the case’s status. (Dkt. No. 10.) During the conference the Court learned that Plaintiffs’ counsel had been working to resolve their claims against Defendants through an attorney named Alexander Herman, who was ostensibly Defendants’ counsel. (Tr. Aug. 21, 2020 Status Conference (“Status Conf. Tr.”), Dkt. No. 33, at 6:9-15.) While Voronin participated in the conference, Herman did not, although it seemed obvious to the Court, despite Voronin’s representations to the contrary, that Herman was present with Voronin and advising him throughout. (See id. at 27:24-30:21.). During the call, Voronin demonstrated his command of English and knowledge of the arguments he needed to make. He understood the Court’s introductory comments (id. at 2:9-11), was able to make legal arguments about jurisdiction (id. at 10:3-11:2) and service of process

(id. at 21:20-23:7) and expressed his disagreement with the dismissal of related litigation. (Id. at 27:24-24; 29:1.) After the Clerk of Court entered defaults against Defendants, and Plaintiffs moved for default judgments (Dkt. Nos. 17 and 20), the Court scheduled a hearing to accept evidence as to the truth of the allegations in the Complaint and the amount of damages, consistent with Federal Rule of Civil Procedure 55(b). (Dkt. Nos. 21, 22, and 27.) In contrast with Voronin’s extensive English language interactions with the Court and Plaintiffs’ counsel during the telephone conference, during the evidentiary hearing Voronin claimed he did not understand the most basic statements and, for the first time, requested a Russian/English translator.1 (See Tr. July 23, 2020 Evidentiary

Hearing (“Hearing Tr.”), Dkt. No. 35, at 6:19-20; 10:11-11:9.) He cited his alleged inability to understand English in refusing to be sworn for the proceeding. (Id. at 11:5- 9.) Voronin, however, has no right to an interpreter. Cf. 28 U.S.C. § 1827 (requiring interpreters only in civil “proceedings instituted by the United States”). He also has demonstrated that he can proceed without a translator, having participated in the

1 Due to COVID-19 related limitations on courtroom availability in the Eastern District of Pennsylvania, the evidentiary hearing took place by videoconference. Before the hearing, the parties were instructed to inform the Court whether they anticipated an inability to participate in the videoconference and were provided with an opportunity to conduct a test run of the platform. (See ECF No. 27.) Voronin participated in the test run and encountered difficulties with the video feed. (Hearing Tr. 8:23-9:24.) Although he was advised to use a connection other than a cellphone on the day of the hearing, ultimately Voronin accessed the proceedings only by audio, citing similar issues. status conference at length in English and supposedly without any assistance (see Status Conf. Tr. 28:9-13), conducted business in English (Hearing Tr. 8:5-22), signed relevant contracts written in English (Compl., Dkt. No. 1, Exs. A and B), filed a motion to dismiss in English which he represented was his own work (ECF No. 9), and made

cogent and detailed objections to the evidence at the evidentiary hearing. (Hearing Tr. 51:1-11.) Despite Voronin’s effort to further delay this case by claiming he could not understand English, the hearing proceeded without his sworn testimony. II In September 2018, Allegro and West Coast entered into a Transportation Services Agreement (“TSA”) related to Allegro’s provision of ground transportation, lodging and meals to commercial flight crews. (Compl., Dkt. No. 1., at ¶ 8.) They also entered into a Confidentiality and Nondisclosure Agreement (“NDA”). (Id. at ¶ 6.) Both contracts included forum selection provisions giving “the Federal Courts of the Eastern District of Pennsylvania . . . exclusive jurisdiction over any legal action brought

under this Agreement.” (See id. ¶ 6.) West Coast’s clients include Aeroflot Russian Airlines. (July 23, 2020 Evidentiary Hearing Exhibits (“Hearing Ex.”), Dkt. No. 37, Ex. 3.) A The TSA required Allegro to “[t]ransport Flight Crews” from the airport to their hotel and back. (Compl., Dkt. No. 1., Ex. A, TSA § 2(a).) Allegro agreed it was “mission-critical that its services have a 100% on-time reliability record . . . .” (Id.) It also agreed to provide a “luxury van” subject to West Coast’s approval and “quality and spaciousness standards.” (Id. at § 2(b).) West Coast contends Allegro breached the TSA by transporting flight crews in an unreliable and non-compliant vehicle. (Compl. ¶ 23.) Alexander Rubinchik, West Coast’s Chief Operating Officer and comptroller, testified that Allegro’s van’s roof leaked, its hood was unpainted, its seats were torn and it had “technical issues” – “from eight cylinders only seven operated, and from the four-

gear transmission only three gears operated.” (Hearing Tr. at 21:5-23.) Flight crews endured “several delays” because “the vehicle frequently w[ould] not start, or w[ould] not go as fast as it should go.” (Id. at 21:18-20.) Ultimately, West Coast decided Allegro’s van could not satisfy its needs and, with Voronin’s assistance, purchased a new Mercedes-Benz van. (Id. at 34:14-22, 35:4-7; see also Hearing Ex. 7 (invoice for Mercedes vehicle).) Because the TSA required Allegro to provide a vehicle to transport flight crews and Allegro lacked the funds to purchase a replacement, Voronin agreed the van’s cost would be deducted over time from West Coast’s monthly payments to Allegro. (Hearing Tr. 34:22-35:9.) West Coast contends Allegro also violated the TSA by selling merchandise to

members of transported flight crews either directly or through intermediaries. (Id. at 27:17-22.) Because of West Coast’s concerns that flight crews might encounter legal difficulties with U.S. Customs and result in image and reputation problems for its airline clients, the TSA bars Allegro’s drivers from “offer[ing] or in any way solicit[ing] additional services to be provided by the Flight Crew Members . . . .” (TSA § 2(g); Hearing Tr. 46:10-24.) On January 25, 2019, West Coast told Voronin it would not use Allegro as its exclusive transportation service provider, citing its right to terminate the TSA and Allegro’s “misconduct.” (Hearing Ex. 10.) It gave Allegro the option to work “as a third- party transportation service provider” through Memelland LLC, West Coast’s “new transportation service provider and dispatcher,” starting on February 1. (Id.) In a January 31 email to Rubinchik, Voronin said he would not work with West Coast because of the “unexpected contract modification.” (Hearing Ex. 8.) Although West

Coast owned the van Allegro had been using to transport flight crews by then, Voronin said he would not release the keys until after “full payment” for both his “regular company salary from . . .

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

WESTCOAST GROUND SERVICES, INC. v. ALLEGRO GROUP, INC., (E.D. Pa. 2020).

WESTCOAST GROUND SERVICES, INC. v. ALLEGRO GROUP, INC. (WESTCOAST GROUND SERVICES, INC. v. ALLEGRO GROUP, INC.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Comdyne I, Inc. v. Corbin
908 F.2d 1142 (Third Circuit, 1990)
Putt v. Yates-American MacHine Co.
722 A.2d 217 (Superior Court of Pennsylvania, 1998)
Merlino v. Delaware County
728 A.2d 949 (Supreme Court of Pennsylvania, 1999)
Broadcast Music, Inc. v. Spring Mount Area Bavarian Resort, Ltd.
555 F. Supp. 2d 537 (E.D. Pennsylvania, 2008)
Corestates Bank, N.A. v. Cutillo
723 A.2d 1053 (Superior Court of Pennsylvania, 1999)
Eastern Electric Corp. v. Shoemaker Construction Co.
657 F. Supp. 2d 545 (E.D. Pennsylvania, 2009)
Strickland v. University of Scranton
700 A.2d 979 (Superior Court of Pennsylvania, 1997)
Joe Hand Promotions, Inc. v. Yakubets
3 F. Supp. 3d 261 (E.D. Pennsylvania, 2014)
Serv. Emps. Int'l Union Local 32 BJ v. ShamrockClean, Inc.
325 F. Supp. 3d 631 (E.D. Pennsylvania, 2018)
Hill v. Williamsport Police Dept.
69 F. App'x 49 (Third Circuit, 2003)
Kroblin Refrigerated Xpress, Inc. v. Pitterich
805 F.2d 96 (Third Circuit, 1986)