X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

OPINION & ORDER Plaintiff Branded Apparel Group LLC (“Branded”), a clothing supplier, brings this action against defendant Joshua Muthart, president and sole owner of Branded’s sales representative, Supreme Showroom, Inc. (“Supreme”). Branded alleges that Muthart, as Supreme’s principal, breached a fiduciary duty of loyalty to Branded-and aided in Supreme’s breach of the same duty-when Supreme, under contract with Branded, negotiated with and later represented one of Branded’s competitors. Pending now is Muthart’s motion to dismiss the Amended Complaint on the ground that he cannot be held individually liable for Supreme’s conduct.On August 23, 2018, the Court commissioned supplemental briefing on whether this case (the “New Action”) should be dismissed as duplicative of Supreme Showroom, Inc. v. Branded Apparel Group LLC, 16 Civ. 5211 (PAE) (the “Related Action”). See Dkt. 30.1 That case, which is pending, was filed in this Court in June 2016. Most recently, in June 2018, the Court issued a decision largely denying the parties’ cross-motions for partial summary judgment. The effect of that decision was to preserve for trial most of Branded’s counterclaims, including one, relevant here, asserting that Supreme breached its fiduciary duty of loyalty to Branded by undertaking the allegedly conflicted representation described above.On review of the parties’ supplemental submissions, the Court is persuaded that the New Action is duplicative of the Related Action, and that the proper remedy is dismissal of the New Action. Accordingly, the Court declines to address the merits of Muthart’s motion to dismiss, and instead dismisses this action as duplicative.I. BackgroundA. The Related ActionOn June 30, 2016, Supreme filed the initial complaint in the Related Action. Related Action Dkt. 1. Supreme alleged primarily that Branded had breached the parties’ “Sales Representative Agreement” (and, later, an unwritten agreement with similar terms) by failing to pay Supreme agreed-upon commissions and showroom fees. See id.

9, 16-20. After Supreme filed a first and second amended complaint, see Related Action Dkts. 10, 18, on October 7, 2016, Branded filed an answer asserting several counterclaims against Supreme, see Related Action Dkt. 21.2 Relevant here, Branded alleged that Supreme, acting through Muthart, had surreptitiously agreed to act as sales representative for Gant, one of Branded’s competitors, and in that capacity had favored Gant’s products over Branded’s. See Branded Counterclaims

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
September 05, 2024
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.


Learn More
July 11, 2024
New York, NY

The National Law Journal Elite Trial Lawyers recognizes U.S.-based law firms performing exemplary work on behalf of plaintiffs.


Learn More
July 22, 2024 - July 24, 2024
Lake Tahoe, CA

GlobeSt. Women of Influence Conference celebrates the women who drive the commercial real estate industry forward.


Learn More

Skolnick Legal Group, P.C., a construction and commercial litigation firm with offices in New Jersey and New York is seeking a Litigation As...


Apply Now ›

Cullen and Dykman is seeking an associate attorney with a minimum of 5+ years in insurance coverage experience as well as risk transfer and ...


Apply Now ›

McCarter & English, LLP is actively seeking a midlevel insurance coverage associate for its Newark, NJ and/or Philadelphia, PA offices. ...


Apply Now ›
06/27/2024
The American Lawyer

Professional Announcement


View Announcement ›
06/21/2024
Daily Business Review

Full Page Announcement


View Announcement ›
06/14/2024
New Jersey Law Journal

Professional Announcement


View Announcement ›