Commercial Litigation

We obtained summary judgment dismissal, following Oral Argument, in a Philadelphia Commerce Court commercial litigation matter involving allegations of unfair competition and tortious inference with contract and business relationships, brought by one adult day care center against our client, a competing adult day care facility.  The plaintiff’s suit stemmed from alleged violation of regulations set forth by the Pennsylvania Department of Aging and its Office of Long-Term Living. The plaintiff’s final demand was $2 million, and no settlement offers were made before the trial court granted summary judgment.

Defense verdict on behalf of a real estate broker and agent. The plaintiffs, homebuyers, claimed that the sellers’ broker and agent were liable to them for the value of fixtures that were taken by the sellers when they vacated the property, which were alleged to have been included in the sale. At a bench trial, the judge determined that neither the broker nor the agent could be held liable to the plaintiffs because the representations regarding what was included in the sale were made by the sellers. Supreme Court affirmance of dismissal of a complex legal malpractice lawsuit. Aaron and Carol Vanderwoude obtained a Delaware Supreme Court affirmance of the trial court’s dismissal of a complex legal malpractice claim. The plaintiffs, seven affiliated companies and their owners in the business of developing property, had been sued by their bank for defaulting on multiple lines of credit. The bank filed multiple lawsuits against the property developers, claiming approximately $7 million in damages, plus attorneys’ fees, which were recoverable pursuant to the terms of the promissory notes. The property developers retained our client to defend the lawsuits, asserting that the amounts claimed to be owed to the bank were significantly overstated. Our client vigorously defended the bank’s underlying lawsuits. Ultimately, the property developers settled the bank’s lawsuits for the entire amount owed, plus interest and the bank’s legal fees. The developers argued that its attorneys should have advised them to settle the bank’s claims after the lawsuits were commenced and that, if they had done so, they would not have had to pay the bank’s legal fees, our client’s legal fees, or expert witness fees, or the additional interest on the loan. The property developers also claimed that not settling with the bank earlier caused them lost business opportunities valued at nearly $1 million. The plaintiffs’ legal malpractice claims were dismissed because their expert witness, a Maryland attorney with no business litigation experience, was not qualified to serve as an expert and because their damages claims were speculative. Motion to dismiss in complex matter involving claims of fraud, misappropriation of trade secrets, tortious interference with contractual relations, and piercing the corporate veil. The plaintiff, an investment fund, had purchased a business that was controlled and primarily owned by our client. The business ultimately went bankrupt, and the plaintiff claimed that the purchase was premised upon misrepresentation by our client. The plaintiff maintained that jurisdiction in Delaware was proper pursuant to the Asset Purchase Agreement. The District Court was persuaded by arguments reflecting that it lacked personal jurisdiction over our client, a citizen of Canada, even though he signed the Asset Purchase Agreement which included language conferring jurisdiction over claims arising from the sale in Delaware. The court agreed that our client did not sign the agreement in his individual capacity, and the plaintiff’s piercing the corporate veil allegations were insufficient to confer personal jurisdiction. Dismissal of an unjust enrichment claim. Obtained dismissal of an unjust enrichment claim brought by a condominium unit owner against the attorneys who represented her condominium association. The unit owner claimed that the law firm was liable to her for unjust enrichment in connection with legal fees it received from the association for legal services provided in efforts to collect on past due assessments owed by the unit owner. Pursuant to the association’s governing documents, the charges were passed on to the unit owner. The court agreed that the fees that were paid to our client by the condominium association were properly earned.

We successfully argued and secured summary judgment in favor of a masonic organization, dismissing third-party claims for indemnity and common law contribution. At issue was a third-party complaint for contractual indemnity and common law contribution over an alleged trip and fall due to a structural condition with a rented property. The masonic organization rented the property for a single use event in support of the organization. The plaintiff claimed to be a guest and initiated suit against the commercial property owner, the third-party plaintiff. In support of the third-party complaint, a rental agreement was produced, which was not for the alleged date of loss. The third-party plaintiff argued the rental agreement disclaimed liability on the part of the property owner and turned the property over to the renter’s charge; therefore, the renter was required to inspect the property and warn its guests of dangerous conditions. The court granted summary judgment for the following reasons. First, the rental agreement could not support contractual indemnity because it was not Azurak compliant as there was no explicit language requiring indemnity. Second, the masonic organization’s duty as a short-term lessee did not require inspection prior to the event, nor was there sufficient factual evidence to overcome the masonic organization’s charitable immunity.   

We secured summary judgment on behalf of a custom-home builder in a breach of contract case. The plaintiffs contracted with our client to build their dream home, but, due to the plaintiffs’ change of scope and the increase of costs and services, an attempt was made to modify the parties’ contract. The plaintiff objected and submitted the dispute to the parties’ chosen arbitrator for a binding decision. The arbitrator fully sided with the builder; however, the plaintiffs moved before the Superior Court of New Jersey to have the arbitration award vacated. Once vacated, we proceeded in the civil action and convinced the court that there were no triable issues of fact to support the plaintiffs' breach of contract action.

We secured summary judgment and dismissal of nine claims brought by an individual employer against two former employees and their new place of employment. The plaintiff, who owned an insurance business and a tax preparation business, alleged claims of breach of contract, breach of the duty of loyalty, tortious interference, violations of the Pennsylvania Uniform Trade Secrets Act, and other related claims against two former employees, one at-will and one independent contractor, and their new employer. The plaintiff was imprisoned for violations of insurance fraud and barred from continued participation in the business of insurance. While imprisoned, one defendant, an at-will insurance underwriter employee, sent a letter to the business’s customers informing them that the plaintiff was no longer legally allowed to participate in the business of insurance. The plaintiff also alleged that the other defendant misappropriated trade secret information by taking a customer list with him to his new employer. We argued that the plaintiff lacked a trade secret interest over the customer list, and that all remaining claims should be dismissed because the statements made in the insurance employee’s letter were truthful. The trial judge agreed and dismissed all of the plaintiff’s claims against the three defendants, with prejudice.

We obtained summary judgment on behalf of our client, an amateur baseball league located in Monmouth County, New Jersey. In this matter, the plaintiff, an umpire assigner, filed a lawsuit alleging improper breach of contract, tortious interference and conspiracy to cut this assigner out of his company. The plaintiff also maintained a cause of action for emotional distress and punitive damages. On summary judgment, the defense argued that due to discovery deficiencies, as well inadequacies with the substantive claims alleged, the plaintiff could not state any material facts to surpass summary judgment. The court agreed, holding that the plaintiff failed to properly oppose the summary judgment motion and had not stated any facts in discovery that would support the claims of breach of contract or tortious interference, among others. The damages exposure of this case, prior to the dismissal, was approximately $10 million, especially considering the punitive damage potential in this matter.

Our retail client faced a class action suit alleging claims it charged Pennsylvania state tax on face masks/coverings during the COVID-19 pandemic (when they were not subject to sales tax). The plaintiff on his own behalf and on behalf of the putative class alleged claims for violations of the Pennsylvania Unfair Trade Practices Consumer Protection Law and the Pennsylvania Fair Credit Extension Uniformity Act, as well as common law claims for unjust enrichment, fraud and misappropriation/conversion. The plaintiff claimed that face masks and coverings became exempt from Pennsylvania sales tax as of March 6, 2020, when the governor issued a Proclamation of Disaster Emergency. Prior to the Proclamation, non-medical face masks/coverings were subject to sales tax because they were classified as ornamental wear or clothing accessories. The court held that the plaintiff failed to state a claim for any of the causes of action alleged and held that amendment would be futile.

We obtained dismissal via preliminary objections of all claims asserted against a day care center in a shooting case venued in Philadelphia. The case arose from the shooting death of a student’s father. The shooter had been previously convicted of manslaughter and assault and was an employee of the day care center’s long-time food service vendor. While the decedent was dropping off his youngest child at day care, he got into an argument with the shooter, who was on the premises delivering food. The decedent subsequently drove away with his 17-year-old son in the passenger seat, and the shooter followed in his work van. A few blocks away from the day care center, the shooter pulled up alongside the decedent’s vehicle and repeatedly fired a handgun at the decedent. The decedent’s son survived the shooting. The food service vendor, its affiliated entities, the day care center and the shooter were named as defendants. The claims against the day care center included negligence per se, negligent hiring, negligent supervision, negligent undertaking to render services, negligent infliction of emotional distress, violations of the Unfair Trade Practices & Consumer Protection Law (UTPCPL), negligent misrepresentation, and negligent infliction of emotional distress as to the decedent’s seventeen-year-old son who witnessed the shooting. The plaintiffs’ negligence per se claims centered on alleged violations of the Child Protective Services Law (CPSL), the Public Welfare Law (PWL) and the Pennsylvania School Code (School Code). Among other things, the plaintiffs took the position that the day care center had a duty to ensure that its service vendor’s employees did not have criminal records because those employees foreseeably came into contact with children and parents. On behalf of the day care center, we filed preliminary objections seeking dismissal of all claims asserted against it. After briefing, the Philadelphia Court of Common Pleas granted our preliminary objections. The case subsequently resolved with no contribution whatsoever from our client.

Our clients specialize in identifying and reclaiming lost property for consumers who are unaware that such lost property exists. The plaintiff brought claims under the Pennsylvania Unfair Trade Practices Consumer Protection Law (UTPCPL) and for fraudulent inducement, arguing that the business model was deceptive because consumers could recover their own property without paying for the ease and convenience of having the defendant business work on their behalf. Not surprisingly, the district court found that the plaintiff’s serial complaints failed to allege anything “more than Defendants’ expertise,” and that there was no factual basis to support the notion that consumers are unduly influenced or misled. On appeal, the Third Circuit affirmed the dismissal, expressly noting that the defendants made no misrepresentation at any time, and the UTPCPL and fraud claims were dismissed without merit. 

Prevailed at trial in Broward County in defense of a property management company of a tax-credit housing community in Lauderhill. The plaintiff, the corporate owner of the property, brought claims for negligence, breach of contract, breach of fiduciary duty, and statutory breaches in the management and operation of the property. The case was litigated over seven years, and the plaintiff had sought millions of dollars in damages. After a week of the plaintiff’s testimony, and eviscerating cross-examinations, we were successful in obtaining a directed verdict.