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586 F. App'x 718
2d Cir.
2014
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Background

  • Turner sues Temptu Inc., Temptu Marketing Inc., and Michael Benjamin for eight New York law claims arising from a failed business relationship over a home-use airbrush makeup system.
  • The district court granted summary judgment in favor of defendants on August 15, 2013, dismissing all claims.
  • Turner's theory centers on a purported joint venture/partnership and misappropriation of her ideas.
  • Turner argued that a blog edited by herself, Benjamin, and Braimon constituted a binding contract and joint venture; she admitted many terms were not finalized.
  • The court found no objective manifestation of intent to be bound to a binding contract or joint venture; multiple discussions and writings showed ongoing negotiations, not finalization.
  • The court concluded that even if there were negotiations, Turner failed to show mutual assent or a finalized agreement to form a partnership or implied contract; claims for misappropriation, unjust enrichment, and unfair competition were also rejected.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether a binding joint venture/partnership existed Turner asserts a binding joint venture via a blog documenting terms. No final, binding agreement; terms were undecided and not mutually assented to. No binding joint venture/partnership existed.
Whether misappropriation of ideas requires a contractual or fiduciary relationship There was a contractual/quasi-contract relationship supporting misappropriation. No contractual or fiduciary relationship; quasi-contract theory fails. Misappropriation claim failed.
Whether unjust enrichment claims succeed without a contract or misappropriation Defendants unjustly enriched themselves at Turner’s expense. No unjust enrichment; independent engineer used no Turner information. Unjust enrichment claim failed.
Whether unfair competition claim survives Defendants misappropriated Turner’s labors and acted in bad faith. No misappropriation or bad faith; Temptu hired separate engineer. Unfair competition claim failed.

Key Cases Cited

  • Johnson v. Nextel Commc’ns, Inc., 660 F.3d 131 (2d Cir. 2011) (elements of a breach of contract claim)
  • Dinaco, Inc. v. Time Warner, Inc., 346 F.3d 64 (2d Cir. 2003) (joint venture and partnership criteria; intent to share profits and losses)
  • Itel Containers Int’l Corp. v. Atlanttrafik Express Serv. Ltd., 909 F.2d 698 (2d Cir. 1990) (definition of joint venture and mutual assent)
  • Scholastic, Inc. v. Harris, 259 F.3d 73 (2d Cir. 2001) (joint ventures governed like partnerships for limited purposes)
  • Brown Bros. Elec. Contractors, Inc. v. Beam Constr. Corp., 361 N.E.2d 999 (N.Y. 1977) (considerations for contract formation and mutual assent in New York)
  • Beth Israel Med. Ctr. v. Horizon Blue Cross & Blue Shield of N.J., Inc., 448 F.3d 573 (2d Cir. 2006) (quasi-contract and unjust enrichment standards)
  • Leibowitz v. Cornell Univ., 584 F.3d 487 (2d Cir. 2009) (implied-in-fact contract requirements)
  • In re First Cent. Fin. Corp., 377 F.3d 209 (2d Cir. 2004) (unjust enrichment standards)
  • Jeffrey Milstein, Inc. v. Greger, Lawlor, Roth, Inc., 58 F.3d 27 (2d Cir. 1995) (elements of unfair competition and misappropriation)
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Case Details

Case Name: Lois Turner v. Temptu Inc.
Court Name: Court of Appeals for the Second Circuit
Date Published: Sep 23, 2014
Citations: 586 F. App'x 718; 13-3440-cv
Docket Number: 13-3440-cv
Court Abbreviation: 2d Cir.
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