Document Type
Article
Publication Date
10-19-2006
Abstract
Plaintiff-counter-defendant-appellant Design Strategies, Inc. ("Design") appeals from a judgment entered in the United States District Court for the Southern District of New York (Marrero, J.). The action arises out of the alleged diversion of a corporate opportunity by defendant-counterclaimant-appellee Marc E. Davis ("Davis") during the course of his employment with Design. According to Design, the corporate opportunity was diverted to defendant-appellee Info Technologies Web Solutions ("IT Web"), with the collusion of defendants-appellees Info Technologies, Inc. ("Infotech") and John Goullet ("Goullet"), Chief Executive Officer of both Infotech and IT Web (collectively, the "IT Defendants"). Davis was employed by IT Web following the alleged diversion.
The District Court, in an order dated April 27, 2005, precluded Design from presenting evidence in support of its claim for lost profits, pursuant to Fed.R.Civ.P. 37(b), on the ground that it had not disclosed the computation of those lost profits, as required by Fed.R.Civ.P. 26(a)(1)(c). In that same Order, the District Court also rejected a demand by Design for a jury trial, the District Court having found that all of Design's remaining claims were "equitable" and therefore that no jury trial right existed. Following a bench trial, the District Court concluded, in an Order dated August 11, 2005, that Davis (a) had not diverted a corporate opportunity; (b) had not engaged in unfair competition; (c) had breached a fiduciary duty of loyalty, requiring the forfeiture of four weeks of 288*288 salary; (d) was not liable for overpaid commissions; and (e) had not been unjustly enriched; and that (f) the IT defendants had not aided and abetted Davis's breach of fiduciary duty; and (g) a claim for punitive damages was unsupported.
Recommended Citation
Miner '56, Roger J., "Design Strategy, Inc. v. Davis, 469 F. 3d 284" (2006). Circuit Court Opinions. 40.
https://digitalcommons.nyls.edu/circuit_opinions/40
Comments
469 F.3d 284 (2006)
DESIGN STRATEGY, INC., Plaintiff-Counter-Defendant-Appellant, v. Marc E. DAVIS, Defendant-Counterclaimant-Appellee, Info Technologies, Inc., Info Technologies Web Solutions, Inc., and John Goullet, Defendants-Appellees.
Docket No. 05-4909-CV.
United States Court of Appeals, Second Circuit.
Argued: June 19, 2006.
Decided: October 19, 2006.
NYLS Location: File #3482, Box 151