Versichelli and Bank obtain pre-answer dismissal of all claims against client

July 22, 2014 | Appeals

Michael Versichelli and Brian Bank, members of the firm’s Litigation & Appeals Practice Group, obtained victory on behalf of client Kenneth Kalb by securing the pre-answer dismissal of all claims against him in a complex commercial dispute.  The dispute arose out of a contract entered into between Travelsavers Enterprises, Inc. d/b/a Travelsavers Partner Services (“Travelsavers”), the plaintiff in the action, and Analog Analytics, Inc. (“Analog”), a co-defendant for which Mr. Kalb served as Chairman and CEO prior to its acquisition by Barclays.  According to Travelsavers’ complaint, this first-of-its-kind contract relating to the dissemination of travel offers promised to revolutionize the travel and travel marketing industry, was materially breached when, among other things, Analog failed to publish offers and misappropriated Travelsavers’ know-how and technology in order to launch a rival electronic travel offer service through Barclays.  Travelsavers also alleged that Mr. Kalb made fraudulent representations in order to induce Travelsavers to enter into a contract with Analog.  Travelsavers asserted claims against Kalb for fraudulent inducement, misappropriation of trade secrets, and punitive damages and attorney’s fees.  The Nassau County Supreme Court granted Mr. Kalb’s motion to dismiss Travelsavers’ claims against him, finding that Travelsavers had not asserted a viable basis for holding Kalb personally liable for the conduct alleged in the complaint because, in part, Kalb was acting in his corporate capacity during the relevant transactions.  The Court further found that the claim for fraudulent inducement was precluded by a disclaimer provision in the contract between Travelsavers and Analog, and that Travelsavers had failed to allege that its so-called trade secrets were used in breach of any contract, any confidential duty or relationship, or as a result of discovery by improper means.

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