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