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.

ACCIAI SPECIALI TERNI USA, INC. v. RAFAEL MOMENE CORP.

May 10, 2002

ACCIAI SPECIALI TERNI USA, INC., PLAINTIFF
V.
RAFAEL MOMENE AND EMS INDUS. CORP., DEFENDANTS



The opinion of the court was delivered by: Ronald L. Ellis, U.S. Magistrate Judge

OPINION AND ORDER

I. INTRODUCTION

II. BACKGROUND

A. Factual History

AST-USA is a domestic corporation organized and existing under the laws of the State of New York which markets stainless steel and other metal products in the form of sheets and coils. Amended and Supplemental Complaint ("Amd. Cmplt.") at ¶ 1; Defendants' Local Rule 56.1(a) Statement of Undisputed Material Facts at 1. EMS is a corporation organized under the laws of the State of Delaware, and is engaged in the wholesale industrial metals business, specializing in marketing, selling, and/or trading specialty steel products in the Latin American market. Id. Momene is the president and sole shareholder and director of EMS, and has been actively involved in the business of marketing, selling, and/or trading industrial metals throughout the world for approximately two decades. Memorandum of Law in Support of Defendants' Motion for Partial Summary Judgment ("Def. Mem.") at 3.

In 1996, Enrico Chevallar ("Chevallar"), then-executive vice president of AST-USA, initiated discussions with Momene about a possible business relationship between AST-USA and EMS. Id. at 5. In early December 1996, Chevallar and Momene executed a written agreement whereby "Raphael Momene EMS Industrial Corporation" was named AST-USA's exclusive sales representative for Central and South America, id. at 6 and was required to establish sales offices for AST-USA in Columbia, Peru, and Venezuela, and AST-USA would defray $3,000 per month for each office. Amd. Cmplt. at ¶ 12. In December 1997, the parties identified as AST-USA and "Raphael Momene EMS Industrial Corporation," Def. Mem. at 6, entered into a new agreement which again authorized defendants to act as AST-USA's exclusive sales representative in South America and Central America. Amd. Cmplt. at ¶ 14. Both the 1996 and 1997 agreements provided that AST-USA would pay defendants a two percent commission of net sales prices on orders obtained by defendants. Id. at ¶ 15.

According to AST-USA, from late 1997 through mid-1998, defendants expressed dissatisfaction with the terms and conditions of the parties' arrangement, and advised AST-USA that they would resign as AST-USA's representative unless changes were made. Id. at ¶ 18. By the end of 1998, the relationship between the parties had deteriorated, leading to a termination of the relationship. Id. at ¶ 19. According to AST-USA, even after the termination of the relationship, defendants continued to demand further and additional compensation from it. Id. at ¶¶ 20, 22.

B. Procedural History

The instant case was first filed in the New York State Supreme Court, New York County. An amended complaint was filed on April 11, 2000, asserting that AST-USA: (I) required a declaratory judgment that the relationship between the parties terminated as of December 31, 1998; (2) was entitled to recover the sum of $16,752, which was paid in excess of commissions owed to defendants; (3) requested that the court permanently enjoin defendants from further violating their duty to maintain the confidentiality of proprietary information; (4) reserved the right to amend the complaint to allege damages incurred as a result of defendants' diversion of sales; (5) reserved the right to amend the complaint to allege damages incurred as a result of defendants' breach of duty to not engage in conduct that was detrimental to AST-USA; (6) was assigned a claim which the defendants owed to AST-Spain in the amount of $354,179.95; (7) was assigned a claim which is owed to AST-Spain, based on thirteen invoices of goods sold and delivered to defendants; (8) was assigned a claim to an account stated between AST-Spain and the defendants in the amount of $354,179.95; and (9) was damaged by defendant Momene, who created EMS as his alter ego to evade liability. Amd. Cmplt. at ¶¶ 24-60. On April 26, 2000, the case was removed to federal court and was assigned to Judge Robert W. Sweet.

On March 30, 2001, defendants filed their motion for partial summary judgment on the first, third, and ninth causes of action pursuant to Rule 56 of the Federal Rules of Civil Procedure. On April 2, 2001, AST-USA filed its own motion for partial summary judgment on the sixth, seventh, and eighth causes of action. On October 18, 2001, the parties consented to transfer all proceedings to the undersigned. 28 U.S.C. § 636(c).

III. DISCUSSION

A. Standard for Summary ...


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.