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Modis, Inc. v. Infotran Systems, Inc.
893 F. Supp. 2d 237
D.D.C.
2012
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Background

  • Modis, Inc. sues Infotran Systems, Inc. and Tien H. Tran for breach of contract related to non-compete and non-solicitation provisions in the Independent Contractor Agreement.
  • Tran, as Infotran's independent contractor, signed an agreement restricting use of Modis' confidential information and prohibiting solicitation of Modis' CSC/USCIS clients during the term and for one year thereafter.
  • Modis contracted with CSC to provide IT support for CSC's USCIS work; Modis placed Tran with CSC via CSC-related engagements.
  • Defendants allegedly sought direct CSC placements and engaged in activities that Modis claims violated the Agreement's restrictions.
  • Modis notified Tran of the non-compete restrictions; CSC staffing remained with Infotran briefly, and Infotran terminated its relationship with Modis in May 2009 after dispute about placements.
  • Defendants counterclaimed for tortious interference with contractual/business relations; Modis moved for summary judgment on the counterclaim and sought to strike two of Modis' expert witnesses tied to the counterclaim.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the communications at issue constitute improper interference Modis contends communications were lawful competitive activity Infotran contends communications constituted tortious interference with contractual relations No; communications were protected competitive conduct; summary judgment for Modis on the counterclaim

Key Cases Cited

  • Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (Supreme Court 1986) (summary judgment standard; genuine issues of material fact)
  • Sheppard v. Dickstein, Shapiro, Morin & Oshinsky, 59 F. Supp. 2d 27 (D.D.C. 1999) (illicit evidence of improper interference requirements)
  • International City Mgmt. Ass’n Ret. Corp. v. Watkins, 726 F. Supp. 1 (D.D.C. 1998) (competitor privilege; lawful competition not a tort)
  • Mardirosian v. American Institute of Architects, 474 F. Supp. 628 (D.D.C. 1979) (competition privilege; policy favoring free competition)
  • Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (Supreme Court 1986) (reiteration of summary judgment standard)
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Case Details

Case Name: Modis, Inc. v. Infotran Systems, Inc.
Court Name: District Court, District of Columbia
Date Published: Sep 28, 2012
Citation: 893 F. Supp. 2d 237
Docket Number: Civil Action No. 2009-1051
Court Abbreviation: D.D.C.