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Katz v. Travelers

Citations: 241 F. Supp. 3d 397; 2017 U.S. Dist. LEXIS 35627; 2017 WL 1317000Docket: 16-cv-4389 (ADS) (SIL)

Court: District Court, E.D. New York; March 9, 2017; Federal District Court

Narrative Opinion Summary

The case involves a diversity action brought by Plaintiffs, a medical professional and his corporation, against Defendants Travelers and Exam Works, in which claims of contract breach and tort were made under New York law. The action was initially filed in New York State Supreme Court and subsequently removed to the U.S. District Court for the Eastern District of New York based on diversity jurisdiction. The Defendants sought dismissal under Rule 12(b)(6) for failure to state a claim. The court dismissed all claims against Exam Works and partially dismissed claims against Travelers, allowing only the breach of contract claim to proceed. The Plaintiffs alleged tortious interference with contractual and business relations, as well as prima facie tort, which the court dismissed as time-barred and inadequately pled, noting that the claims fundamentally constituted defamation. The breach of contract claim against Travelers was upheld as the complaint sufficiently alleged non-payment for services rendered. The case was referred to Magistrate Judge Steven I. Locke for further discovery on the remaining breach of contract claim.

Legal Issues Addressed

Breach of Contract under New York Law

Application: The court found that the Plaintiffs adequately alleged a breach of contract claim against Travelers, as they provided services worth $93,000 that were unpaid.

Reasoning: The complaint alleges that Dr. Katz provided services and testimony worth $93,000, which remains unpaid.

Dismissal for Failure to State a Claim under Rule 12(b)(6)

Application: The court granted Exam Works' motion to dismiss in full and partially granted Travelers' motion to dismiss for failure to state a claim.

Reasoning: The Court granted Exam Works' motion in full and partially granted and denied Travelers' motion.

Diversity Jurisdiction and Removal to Federal Court

Application: The case was removed from New York State Supreme Court to the U.S. District Court for the Eastern District of New York based on diversity jurisdiction.

Reasoning: Travelers removed the case to the U.S. District Court for the Eastern District of New York based on diversity jurisdiction.

Elements of Tortious Interference with Contract under New York Law

Application: Plaintiffs failed to adequately plead the necessary elements of tortious interference with a contract, leading to dismissal of these claims.

Reasoning: Plaintiffs have not provided adequate facts to support their claims of tortious interference.

Prima Facie Tort and Defamation in New York

Application: Plaintiffs' prima facie tort claim was dismissed due to its time-barred nature and failure to meet the specificity required for alleging special damages.

Reasoning: The Plaintiffs’ prima facie tort claim is dismissed on multiple grounds. First, it is time-barred, subject to a one-year statute of limitations.