UE SYSTEMS, INC. v. O'HANLON

Upon the foregoing papers, it is ORDERED that this motion by defendants for an order pursuant to CPLR 3212 for partial summary judgment dismissing the complaint in Action 1, granting summary judgment to defendant Terrence O’Hanlon on his first three counterclaims, and dismissing the first, second and third causes of action in Action 2 is decided as follows:

Plaintiff UE System, Inc. (“UE”) is a closely held New York corporation primarily engaged in the business of manufacturing and marketing ultrasonic testing products used for inspection of industrial equipment and machinery. Defendant Terrence O’Hanlon (“O’Hanlon”), who had begun working for plaintiff sometime around 1982, served as president of UE and a member of its Board of Directors until his departure from the company in October 1999. O’Hanlon and his wife, defendant Kelly (Rigg) O’Hanlon, who had also worked for UE, formed a company known as NetExpress, Inc. for the initial purpose of seeking clients in order to perform Internet publishing or to create Internet web pages.