Innovatus Capital Partners, LLC v. Neuman et al

Filing 130

MEMORANDUM OPINION & ORDER re: (98 in 1:18-cv-04252-LLS) MOTION for Summary Judgment filed by Amanda Zachman, Greg Williams, Antony Mitchell, Jonathan Neuman, Daryl Clark, Ritz Advisors, LLC. Innovatus's claim for an inj unction enforcing the restrictive covenant in the NOA is dismissed. Its entitlement to recompense for its contributions, to the extent that they have benefitted the enterprise, is still to be evaluated. So ordered. (Signed by Judge Louis L. Stanton on 12/23/2020) (rro)

Case 1:18-cv-04252-LLS Document 130 Filed 12/23/20 Page 1 of 2
·. USDC SDN\'

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

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DOCU'.\-IENT
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ELECTRONICALLY FILED :'
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DQC #:_______
DATE FILED: 12/23/2020

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X

INNOVATUS CAPITAL PARTNERS, LLC,
Plaintiff,

18 Civ. 4252 (LLS)

- against JONATHAN NEUMAN, ANTONY MITCHELL,
RITZ ADVISORS, LLC, GREG WILLIAMS,
DARYL CLARK and AMANDA ZACHMAN,
Defendants.

- - - - - - - - - - - - - - - - - X

MV REALTY, PBC, LLC,

18 Civ. 7142 (LLS)

Plaintiff,
- against -

MEMORANDUM
OPINION & ORDER

INNOVATUS CAPITAL PARTNERS, LLC,
Defendant.

- - - - - - - X

The issues raised by defendants' October 9, 2020 Motion for
Summary Judgment are disposed of as follows:
1.

Innovatus's attempt to enjoin defendants' soliciting
of Right to List contracts (an arrangement which Innovatus did
not invent, was not the first to market, and could not patent,
because of prior art) for six years must be dismissed. It seeks
to forbid "any transaction or series of transactions of any kind
in connection with the Business Opportunity" although the RTL
contracts do not reveal any of Innovatus's confidential
information. This type of boundless restriction on competition
is unenforceable under New York law. It is not needed to protect

Case 1:18-cv-04252-LLS Document 130 Filed 12/23/20 Page 2 of 2

any trade secrets Innovatus may have ,

for the conduct of the RTL

transaction does not reveal them . The balance of " competing
public policies in favor of robust competition and freedom to
contract", Mathias v.
2001)

Jacobs ,

167 F . Supp . 2d 606 ,

611

(S . D. N.Y.

strongly argues against this overbroad restraint upon

competition .
2.
Nevertheless , if Innovatus ' s considerable work , effort ,
research and thought during the period the parties were working
together enhanced the results of MV ' s RTL business,
evaluated and ,

it should be

if useful , compensated . That may require a

comparison of MV ' s methods and profitability with those
transacting the other "thousands of RTL transactions with
homeowners around the country"

(Def. ' s moving brief , p.14), but

in any event will require some discovery and is reserved for
trial or further development .

CONCLUSION
Innovatus ' s claim for an injunction enforcing the
restrictive covenant in the NOA is dismissed . Its entitlement to
recompense for its contributions , to the extent that they have
benefitted the enterprise , is still to be evaluated .
So ordered .
Dated:

New York , New York
December 23, 2020
LOUIS L . STANTON
U.S.D . J .
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