Winter-Wolff International, Inc. v. Alcan Packaging Food & Tobacco Inc.

499 F. Supp. 2d 233, 2007 U.S. Dist. LEXIS 40768
CourtDistrict Court, E.D. New York
DecidedJune 5, 2007
DocketCivil Action 05-2718 (DRH)(ETB)
StatusPublished
Cited by1 cases

This text of 499 F. Supp. 2d 233 (Winter-Wolff International, Inc. v. Alcan Packaging Food & Tobacco Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Winter-Wolff International, Inc. v. Alcan Packaging Food & Tobacco Inc., 499 F. Supp. 2d 233, 2007 U.S. Dist. LEXIS 40768 (E.D.N.Y. 2007).

Opinion

MEMORANDUM OF DECISION AND ORDER

HURLEY, Senior District Judge.

Plaintiff, Winter-Wolff International, Inc. (“plaintiff’ or “Wolff’) commenced this action asserting various causes of action arising out of the termination of a manufacturer’s representative agreement between Wolff and defendant Alcan Packaging Food and Tobacco Inc. (“defendant” or “Alcan”). Presently before the Court is defendant’s motion, made pursuant to Federal Rule of Civil Procedure 12(B)(6), to dismiss Counts 1 (breach of contract), 3 (breach of implied obligations), 4 (tortious interference with contract), 5 (tortious interference with business relations) and 6 (New York Labor Law § 191-c) of the Amended Complaint, together with the demand for punitive damages. For the reasons set forth below, the motion is granted in part and denied in part.

Factual Background

The following facts are taken from the Amended Complaint:

In January 2003, defendant 1 entered into a contract (the “contract”) with plaintiff pursuant to which it engaged plaintiff to serve as its exclusive sales representative for flexible lamination food packaging products for retort applications (the “authorized product”) with respect to certain customers (the “authorized customers”) located in North America (the “authorized territory”). Plaintiffs compensation was based solely on commissions, which were due on all orders and sales contracts originating in the authorized territory of all authorized products sold and delivered to the authorized customers regardless of whether or not plaintiff initiated the sale.

Under the contract, plaintiff was required to develop and maintain a substantial volume of sales for defendant and to use its best efforts to assist in defendant’s development of the retort market in the United States, including getting customers of defendant’s European affiliates to *237 switch from imported product and providing technical assistance so that the quality of defendant’s product met customer requirements.

As there would be considerable lag time between Wolffs large initial investment of time, effort, and money in developing customers and its receipt of commissions from the new business generated by that investment, the parties agreed to contractual provision protecting Wolff against premature termination. The initial contract term was for three years from January 1, 2003 to December 31, 2005 with automatic renewals thereafter. Prior to the expiration of the initial term, defendant could only cancel the contract for cause as specified therein. Thereafter, either party could cancel the contract upon twelve months written notice.

The contract contains the following provision entitled “controlling law.” “The laws of the State of Illinois shall apply and bind the parties in all questions arising hereunder, regardless of the jurisdiction in which any action or proceeding may be initiated or maintained and without giving effect to any choice or conflict of law provision or rule that would cause the application of the laws of any jurisdiction other than the State of Illinois.”

In the summer of 2003, Alcan’s corporate parent merged with a former competitor, resulting in a greatly increased capacity to supply authorized product from the manufacturing facilities acquired in the merger. It is alleged that Alcan sold millions of dollars of authorized product manufactured in the acquired plants to authorized customers within the authorized territory but failed to pay commissions to plaintiff.

Beginning in the Spring of 2004, defendant stopped responding to requests for price quotes from Wolff and informed authorized customers that Wolff was no longer authorized to serve as defendant’s sales representative. On July 19, 2004, prior to the expiration of the initial term, defendant sent a letter to Wolff terminating the contract without cause effective July 19, 2005 and advising Wolff that it would cease paying any commissions to Wolff on that date. The letter also purported to prohibit Wolff from contacting or soliciting any authorized customers and placed Wolff on notice that defendant did not intend to provide price quotes or accept orders for authorized products from authorized customers in the authorized territory.

Beginning in the Fall of 2004, defendant began to improperly pressure its European affiliates, with whom plaintiff had existing agency or representative contracts that predated the contract with defendant, to terminate their contracts with plaintiff and replace plaintiff with its own employees. By letters dated December 21 and December 22, 2004, the European affiliates terminated their contracts with plaintiff effective December 31, 2005. The amended complaint alleges that the defendant forced the European affiliates to terminate their contracts through improper pressure and induced the termination by agreeing to inter-company transactions.

Discussion

I. Standard for Motion to Dismiss

The court may not dismiss a complaint under Rule 12(b)(6) unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief. King v. Simpson 189 F.3d 284, 286 (2d Cir.1999); Bernheim v. Litt, 79 F.3d 318, 321 (2d Cir.1996). The complaint need only provide “a short and plain statement of the claim showing that the pleader is entitled to relief.” Swierkiewicz v. Sorema, 534 U.S. 506, 512, 122 S.Ct. 992, 152 L.Ed.2d 1 (2002) (quoting Fed.R.Civ.P. 8(a)(2)). *238 Thus, “a plaintiff is required only to give a defendant fair notice of what the claim is and the grounds upon which it rests.” Leibowitz v. Cornell Univ., 445 F.3d 586, 591 (2d Cir.2006). Nonetheless, “a plaintiffs allegations, accepted as true, must be sufficient to establish liability.” Amron v. Morgan Stanley Investment Advisors Inc., 464 F.3d 338, 344 (2d Cir.2006).

In construing a complaint on a Rule 12(b)(6) motion, the Court must accept all factual allegations in the proposed complaint as true and draw all reasonable inferences in favor of the plaintiff. King, 189 F.3d at 287; Jaghory v. New York State Dep’t. of Educ., 131 F.3d 326, 329 (2d Cir.1997). The Court must confine its consideration “to facts stated on the face of the complaint, in documents appended to the complaint or incorporated in the complaint by reference, and to matters of which judicial notice may be taken.” Leonard F. v. Israel Disc. Bank,

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499 F. Supp. 2d 233, 2007 U.S. Dist. LEXIS 40768, Counsel Stack Legal Research, https://law.counselstack.com/opinion/winter-wolff-international-inc-v-alcan-packaging-food-tobacco-inc-nyed-2007.