Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

CORRESPONDENT SERVICES CORP. v. J.V.W. INVESTMENTS LTD.

November 26, 2001

CORRESPONDENT SERVICES CORPORATION, INTERPLEADER-PLAINTIFF, AGAINST J.V.W. INVESTMENTS LTD., FIRST EQUITIES CORPORATION OF FLORIDA, J.V. WAGGONER, AND DONAL KELLEHER, INTERPLEADER-DEFENDANTS, AND SUISSE SECURITY BANK AND TRUST, LTD., ADDITIONAL DEFENDANT ON THE CROSS-CLAIMS.


The opinion of the court was delivered by: Sweet, D.J.,

O P I N I O N

Defendant J. Virgil Waggoner ("Waggoner") has moved, pursuant to Rule 56(b), Fed.R.Civ.P., for summary judgment on two cross-claims brought by defendant Donal Kelleher ("Kelleher"). Kelleher, in opposing this motion, has cross-moved to compel further discovery and allow letters rogatory. For the reasons set forth below, Waggoner's motion is denied as to the first cross-claim and granted as to the second. Kelleher's cross-motion is granted in part and denied in part.

The Parties

Interpleader-plaintiff Correspondent Services Corporation ("CSC") is a Delaware corporation with its principal place of business in New York, New York.

Defendant J.V.W. Investment Ltd. ("JVW") is a corporation formed under the laws of the Commonwealth of Dominica ("Dominica") with its principal place of business in Dominica.

Defendant Kelleher is a foreign national and a resident of Surrey, England.

Defendant Waggoner is a United States citizen domiciled in Texas.

Third-Party defendant Suisse Security Bank and Trust, Ltd. ("SSBT"), is a Bahamian corporation with its principal place of business in the Bahamas.

Prior Proceedings

On August 18, 2000, this Court issued an opinion dismissing three of four counterclaims filed by Kelleher against Waggoner. Correspondent Services Corp. v. J.V.W. Investment, Ltd., 120 F. Supp.2d 401 (S.D.N.Y. 2000). Kelleher's Fourth Counterclaim for breach of fiduciary duty was not dismissed, nor were Waggoner's cross-claims against Kelleher for breach of contract, breach of fiduciary duty, conversion, and interference. Id.

In September 2000, Waggoner and JVW sought and obtained leave to amend their pleadings to add SSBT as a third-party defendant and to assert cross-claims against Kelleher and SSBT.

Kelleher answered the amended pleadings on November 27, 2000, and alleged two cross-claims against Waggoner, one for breach of contract and the other for breach of fiduciary duty.

On March 30, 2001, Waggoner filed the instant motion for summary judgment to dismiss Kelleher's two cross-claims. Kelleher cross-moved for discovery and the issuance of letters rogatory. The motions were argued on July 25, 2001, and deemed submitted at that time.

Facts

The factual background of this action has been set forth in the prior opinions of this Court, familiarity with which is assumed, and will only partly be repeated here. See Correspondent Services Corp. v. J.V.W. Investment Ltd., No. 99 Civ. 8934, 2001 WL 427337 (S.D.N.Y. Apr. 25, 2001) ("JVW III"); Correspondent Services Corp. v. J.V.W. Investment, Ltd., 120 F. Supp.2d 401 (S.D.N.Y. 2000) ("JVW II"); Correspondent Services Corp. v. J.V.W. Investment, Ltd., No. 99 Civ. 8934, 2000 WL 1174980 (S.D.N.Y. Aug. 18, 2000) ("JVW I"). Unless it is explicitly noted, the following facts are not explicitly controverted by the parties.

The relationship between Kelleher and Waggoner dates back to at least November 1997, when the two entered into an arrangement in which Kelleher was to introduce Waggoner to certain contacts of his who were involved in international high-yield investment programs. Waggoner agreed to pay a percentage of the profits he earned by investing his funds in such programs in return for Kelleher's help in locating, arranging, and helping to manage those investments.

In the months following November 1997, Kelleher introduced Waggoner to a variety of investment opportunities. One such deal involved Ufinco, Ltd. ("Ufinco"). On December 1, 1997, Waggoner signed a Joint Participation Agreement ("Ufinco JPA") that appointed Ufinco as his investment manager to invest the sum of $10 million. By its specific terms, the contract could not be orally modified. Later, on December 5, 1997, Ufinco notified Waggoner that Kelleher was appointed trustee for the funds under that agreement. Waggoner agreed to this arrangement. However, an investment was never made through Ufinco, as Waggoner decided not pursue this arrangement.

In December 1997, Kelleher introduced Waggoner to Bower Cotton, a firm of London solicitors, who in turn introduced Waggoner to Nikea, N.V. ("Nikea"), an investment firm operating out of Bower Cotton's offices. Waggoner thereafter wired $10 million to Bower Cotton to be held in escrow for use in investment programs to be arranged through Nikea. The correspondence between Waggoner and ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.