Griffin v. Jones
170 F. Supp. 3d 956
W.D. Ky.2016Background
- Griffin and Jones formed Blackrock Investments, LLC in 2008 with 50/50 ownership; SE Book and College Book Rental were created as subsidiaries.
- CA Jones Management provided services to SE Book and College Book Rental and charged substantial management fees.
- Griffin financed the ventures and later alleged Jones siphoned funds and concealed information to impair profitability.
- Jones claimed Griffin pressed for higher ownership and extracted funds, allegedly harming operations.
- A McGraw-Hill lawsuit and other actions related to a broader pattern of disputes preceded this litigation; multiple bankruptcy petitions followed.
- Griffin moved for summary judgment on Jones’s counterclaims; Jones cross-moved; the court granted Griffin’s motion and denied Jones’s.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Breach of fiduciary duty viability | Griffin contends no fiduciary duty owed to Jones; even if owed, no breach shown | Jones argues Griffin owed fiduciary duties across multiple entities and breached | Griffin entitled to summary judgment on fiduciary duty claim |
| Tortious interference with contracts and business expectancy | Jones cannot show a contract or valid business expectancy subject to interference | Jones asserts existing contracts and prospective relationships were interfered with | Griffin entitled to summary judgment; no enforceable contract or valid prospective relation shown |
| Abuse of process | Jones asserts Griffin used legal process for improper purposes | Griffin used process as intended; no improper motive shown | Griffin entitled to summary judgment; no abuse of process demonstrated |
Key Cases Cited
- Steelvest, Inc. v. Scansteel Serv. Cntr., Inc., 807 S.W.2d 476 (Ky. 1991) (fiduciary duty requires trust and duty to act for another's benefit)
- Patmon v. Hobbs, 280 S.W.3d 589 (Ky. Ct. App. 2009) (fiduciary duties in certain manager-ownership contexts for LLCs)
- CMI, Inc. v. Intoximeters, Inc., 918 F. Supp. 1068 (W.D. Ky. 1995) (tortious interference requires a contract between claimant and third party; not if party to contract)
- Mullins v. Richards, 705 S.W.2d 951 (Ky. Ct. App. 1986) (illustrates misuse vs. proper use of process in abuse of process)
- Garcia v. Whitaker, 400 S.W.3d 270 (Ky. 2013) (abuse of process when ulterior motive and improper pursuit of process evident)