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K&G Elec. Motor & Pump Corp. v. Ingersoll-Rand Co.

Distributor's Suit for Breach, Tortious Interference Dismissed for Failure to State Claim

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MEMORANDUM & ORDER Plaintiff K & G Electric Motor & Pump Corp. (“Plaintiff” or “KG”)) commenced this action against Defendant Ingersoll-Rand Company (“Defendant” or “IR”) asserting claims for breach of contract, promissory estoppel, tortious interference with prospective economic advantage and fraud. Presently before the Court is Defendant’s motion to dismiss the second amended complaint (“SAC”). For the reasons set forth below, the motion is granted. BACKGROUND The following allegations are taken from the SAC and assumed true for purposes of this motion. Preliminarily, the court notes that the SAC is not a model of clarity, that some of the dates set forth as taken from the SAC appear to be erroneous, and, as discussed, the allegations therein are contradicted by documents attached to it. A. Background Allegations Plaintiff is a family owned small business selling and servicing mechanical equipment since 1949 and Defendant is a diversified industrial manufacturer selling its products globally. (SAC

3, 4.) Plaintiff has been a distributor of Defendant’s equipment since 1990 and expended substantial sums in developing close business relationships with many customers including the City of New York and its various departments. In 2014, the parties entered into a Distribution Agreement (the “Agreement”) whereby Defendant granted Plaintiff non-exclusive distribution rights of its products in the Long Island and New York City markets. Seventy percent of Plaintiff’s revenue in 2014 came from its sales of Defendants products and services. The Agreement required Plaintiff to use Defendant’s proprietary software which required a login ID for every user to order IR’s products. (Id.

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