Prithvi Catalytic, Inc. v. Microsoft Corp. (In re Prithvi Catalytic, Inc.)
Prithvi Catalytic, Inc. v. Microsoft Corp. (In re Prithvi Catalytic, Inc.)
Opinion of the Court
Related Dkt. Nos. 259, 262, 268, 276
Prithvi Catalytic, Inc, (“PCI”)
PCI filed a petition for bankruptcy relief on September 10, 2013, after Kyko Global, Inc. obtained a $17 million judgment against it and several of its affiliates. When significant allegations of fraud were leveled against PCI’s chief executive officer, Madhavi Vuppalapati (“Madhavi”), the Court appointed, with Kyko’s consent, a chief restructuring officer to oversee PCI’s operations.
Despite replacing the corporate leadership, re-branding the business as “Abilius, Inc.,” and attempting to repair damaged customer relationships, the reorganized debtor was unable to maintain the revenue stream it enjoyed before the bankruptcy filing. Claiming that PCI was no longer reliable, Microsoft chose not to renew most of its PCI contracts when they expired in June 2014, opting instead to send the work to Beyondsoft Corporation and Collabera, Inc.
The Court is presently confronted with four competing motions for summary judgment. Defendants have separately filed motions seeking summary judgment on each claim asserted against them.
Factual Background
The origins of this matter date back several years.
The entire arrangement was later exposed as a fraudulent scheme. In findings rendered last year by the United States District Court for the Western District of Washington, it was determined that the five customers did not exist and were instead part of an elaborate fabrication concocted by the Vuppalapatis to defraud Kyko:
*114 The Court finds that the Vuppalapatis are each directly responsible for orchestrating the entirety of the scheme to defraud Kyko. Every action in furtherance of the scheme—false names, false companies, false customers, false accounts receivable, false invoices, false wire transactions totaling millions of dollars—is attributable to the actions of and direction from the Vuppalapatis. ... The Vuppalapatis have demonstrated that they will sign or swear under penalty of perjury to confessions or guarantees with no concern for the underlying truthfulness. ... When confronted with evidence of their fraud, the Vuppalapatis have responded by attempting to perpetuate additional fraud.14
PCI commenced its bankruptcy case shortly after Kyko obtained a judgment against PCI and its affiliates in the amount of $17,568,854.
At the time of its bankruptcy filing, PCI employed approximately 200-250 individuals.
Microsoft’s relations with its vendors are governed by a Master Vendor Agreement
Following the filing of the bankruptcy petition, there were allegations of complaints made by PCI resources to management personnel at Microsoft regarding PCI, its alleged missed payrolls, and its failure to provide insurance coverage. These are all hotly disputed by the parties and remain open material questions.
Several months into the bankruptcy case, PCI’s customer base began to erode. In December 2013, Expedia notified PCI that it was discontinuing its relationship and would not extend any new work to
In December 2013, PCI explored options to transition its business to another supplier.
On January 17,2014, Microsoft informed PCI that it was terminating 27 purchase orders within the CSS project for cause/convenience.
In the spring of 2014, PCI took affirmative steps to re-brand itself under new leadership. On February 26, 2014, it hired Audrey Koocher to serve as Acting Chief Executive Officer of PCI,
... I indicated to this Honorable Court that [PCI] has experienced difficulties in maintaining its existing business relationships and in fostering new relationships due to its association with the*117 name “Prithvi.” Simply put, the Prithvi name will always carry with it the association of a company to stay away from. .., The reputation of not only Prithvi Catalytic, Inc. but all of the Prithvi companies has become synonymous in the IT community with corruption, consistent payroll issues and random cancellation of benefits. This had had significant impacts on the Company. ... It will take the Debtor months if not years to dissociate [sic] itself from the mismanagement and alleged misconduct of former management.39 .
The Court approved the name change to Abilius, Inc. on March 27,2014,
When PCI failed to advance a plan of reorganization, Kyko proposed one of its own.
Despite the positive momentum generated by the Plan, PCI continued to face roadblocks in, its efforts to smooth over customer relationships. On May 14, 2014, Microsoft notified PCI that it would not renew the Sharepoint contract and would instead consolidate the work with Beyond-soft.
Thus, before the effective date of the Plan, it was clear that PCI had lost the Sharepoint contracts to Beyondsoft and the CSS contracts to Collabera. After July 1,2014, OSG remained as PCI’s only active Microsoft project, and all work was performed through a single purchase order which expired on December 31, 2014.
Jurisdiction and Venue
The Court examined its jurisdiction over these proceedings in the Dismissal Opinion. The Court has “arising under” jurisdiction as to Counts 9 and 10 which allege violations of the automatic stay and civil contempt of this Court’s Orders, The Court may issue a final judgment with respect to those two claims.
As to Counts 1, 2, 3, 5, 6, and 8, the Court previously determined that it was exercising its “related to” jurisdiction and therefore such matters are necessarily non-core.
Venue is proper in this district under 28 U.S.C. § 1409(a).
Summary Judgment
Summary judgment should be granted whenever “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to a judgment
To avoid summary judgment, “the non-moving party must identify facts in the record that would enable them to make a sufficient showing on [the] essential elements of their case for which they have the burden of proof.”
Choice of Law
As discussed below, the principal remaining issues in this dispute concern allegations of tortious interference by Defendants in the contractual relations between PCI and its employees deployed at Microsoft. In their legal briefs, the parties cite to caselaw of both the Commonwealth of Pennsylvania and the State of Washington. When previously confronted with choice of law issues, the Court determined that it could refer to the laws of each state interchangeably because there was no substantive difference as to how each jurisdiction defined these types of claims.
Now that discovery has concluded, the Court can renew its choice of law inquiry with the benefit of additional information that was previously unknown. Among these items, the Court can review the non-compete agreements which are at the center of this litigation. The non-compete agreements do not contain choice of law clauses,
Although the Court has the highest regard for the persuasive value of the
For these reasons, the Court concludes that the State of Washington has the most significant relationship to the disputes in this case and it will hereafter apply Washington law when applicable in this adversary proceeding.
Count 1:
Tortious Interference with a Prospective Contract
The first count alleges that Collabera, Krohn, and Olson (together, the “Collabera Defendants”) tortuously interfered with PCI’s efforts to secure a new CSS contract with Microsoft for the period beginning on July 1, 2014.
To prevail on a claim for tortious interference with a business expectancy in Washington, a plaintiff must establish the following five elements: (1) the existence of a valid business expectancy; (2) the defendants had knowledge of that expectancy; (3) an intentional interference inducing or causing a breach or termination of the expectancy; (4) the defendants interfered for an improper purpose or used improper means; and (5) resultant damage.
vindicates ‘society’s interest’ in ‘reasonable expectations of economic advantage’ and ‘affording to the individual a fair*121 opportunity to conduct his legitimate business affairs without interruption from others except in so far as such interferences are sanctioned by the ‘rules of the game’ which society has adopted.69
The Court will assess whether Plaintiffs can satisfy each of the essential elements.
The existence of a valid business expectancy. A valid business expectancy requires proof of “any prospective contractual or business relationship that would be of pecuniary value.”
Under the facts of the case, the Court is unable to make a finding at this time on the reasonableness of PCI’s belief that it had a valid business expectancy regarding the renewal of the CSS projects. After the initial cancellation of the projects and their reinstatement in January 2014, Microsoft made no further comment to PCI regarding the potential (or lack thereof) renewal of the CSS projects for Fiscal Year 2015 (ie. after June 30, 2014) until after the Plan was confirmed.
However, trial will not be required on this Count. As discussed below, the Collab-era Defendants could not have formed the intent to tortiously interfere with any business expectancy PCI had in the CSS projects because Microsoft already informed them that the work would be transferred to Collabera before the Collabera Defendants undertook the allegedly tortious actions.
That the defendant had knowledge of the expectancy and intentionally interfered. It can be fairly assumed that the Collabera Defendants were aware that PCI wanted Microsoft to renew at least part of their CSS contracts. But the Col-labera Defendants could not “intentionally interfere” with an expectancy that they knew would not ripen into a contractual agreement.
A review of the PCI involvement in the CSS projects is useful here. PCI provided staffing to Microsoft on the CSS projects since 2011. Until the filing of the bankruptcy petition and the events of Autumn 2013, Microsoft was apparently satisfied with its relationship with PCI and the quality of resources provided.
Microsoft exercised its contractual right to terminate 27 of the open CSS projects in a letter to Amorose on January 17, 2014, effective February 16, 2014.
Although Microsoft agreed to withdraw its early termination notice on January 29, 2014, it is undisputed that its decision to terminate all relationships with PCI did not change after that date:
Defendants: Even though Microsoft agreed to withdraw its early termination notice, Microsoft’s decision to terminate its relationship with [PCI] did not change.88
Plaintiffs: Plaintiffs do not dispute this happened, but Plaintiffs did not know it at the time.89
Simply put, on or before January 29, 2014, a firm decision was made by Microsoft to terminate its relationship with PCI and that decision never changed. There is no evidence in the record that the Collabera Defendants significantly affected Microsoft’s decision as of that date.
Further, it is undisputed that the Col-labera Defendants were aware of Microsoft’s decision to terminate its relationship
Defendants: Also on January 17, 2014, Microsoft’s Procurement Group sent Krohn of Col-labera a list of Microsoft business owners and project names within CSS that Microsoft had decided to transfer to Collabera.91
Plaintiffs: Plaintiffs do not dispute this happened, but Plaintiffs did not know it at the time.92
And even though Microsoft publicly retracted the CSS termination letter, it is undisputed that the Collabera Defendants knew that Microsoft was still planning to terminate its relationship with PCI, at least as to the Mission Control projects.
Defendants: Microsoft informed Collab-era that the plan to transfer the CSS work in February was “put on hold but with an intent to' move once” Microsoft was able to move that work to Col-labera.93
Plaintiffs: Plaintiffs do not dispute this happened, but Plaintiffs did not know it at the time.94
Thus, the record indicates that Microsoft made its independent decision to terminate its relationship with PCI no later than January 29, 2014. Microsoft’s procurement officers previously recommended Collabera as an acceptable substitute vendor on the CSS projects, and the record indicates that by the end of January 2014, Collabera was advised that it would be awarded those contracts as soon as Microsoft could move them.
To satisfy the second element of their claim, Plaintiffs must prove that the tortious interference was intentional. Interference with a business expectancy is deemed intentional “if the actor desires to bring it about or if he knows that the interference is certain or substantially certain to occur as a result of his action.”
That the defendant interfered for an improper purpose or used improper means. The lack of intention is disposi-tive and requires dismissal of Count 1. But in addition to intention, the Court observes that the third element, wrongful means, is also not present here. A plaintiff must establish that the intentional interference was wrongful.
The Washington Supreme Court has accepted the Restatement (Second) of Torts as “authority” on the proper and improper means of competition in the context of alleged tortious interference with either a contract or a prospective contractual relation.
Ch. 37 Interference with Contract or Prospective Contractual Relations § 768 Competition as Proper or Improper Interference
(1) One who intentionally causes a third person not to enter into a prospective contractual relation with another who is his competitor or not to continue an existing contract terminable at will does not interfere improperly with the other’s relation if
(a) the relation concerns a matter involved in the competition between the actor and the other and
(b) the actor does not employ wrongful means and
(c) his action does not create or continue an unlawful restraint of trade and
(d)his purpose is at least in part to advance his interest in competing with the other,
(2) The fact that one is a competitor of another for the business of a third person does not prevent his causing a breach of an existing contract with the other from being an improper interference if the contract is not terminable at will.
Notably, the first words of § 768 restrict its coverage to parties who intentionally interfere with a contract or prospective contractual relation. Thus, as discussed above, it does not apply in Count 1. However, even in this stricter case of intentional interference, Washington recognizes that a competitor has a certain leeway in its conduct to secure business, even if the actions are directed toward a specific competitor. A party that acts with the purpose of advancing his competing interests on a business matter for which he and the competitor are actively engaged may do so without fear of tortious interference liability so long as the conduct does not employ unlawful means or result in an illegal restraint of trade,
Here, there is no suggestion that the Collabera Defendants were engaged in a restraint of trade. Whatever allegations have been made about their conduct, it appears that they acted in pursuit of securing for themselves the contract for CSS projects. There is no indication or argument that they acted for any other purpose (such as an attempt to destroy the competitor). While in another context it might be argued that their conduct em
For the above reasons, the Court GRANTS summary judgment to the Col-labera Defendants and Count 1 of the Complaint is DISMISSED.
Count 2:
Tortious Interference with Contractual Relations
Count 2 alleges that Krohn and Olson acted intentionally and improperly in their attempts to “poach” PCI’s resources. Col-labera hired Krohn away from PCI in December 2013 to manage its customer accounts (including the Microsoft account) in the Pacific Northwest.
Unlike Count 1 where the prospective contract at issue was the CSS contracts between Microsoft and PCI, in Count 2 the contracts involve the employment agreements between PCI and the individual resources and, in particular, any provisions in those agreements .that prohibit the resources from accepting employment with a competitor of PCI within one-year in a certain defined geographic area (the “non-compete” agreements). This Court already determined that the non-compete agreement in the PCI employment contracts is property of PCI’s bankruptcy estate:
[T]he non-compete agreements constitute assets of the bankruptcy estate. Assuming the agreements are enforceable, they provide the Debtor with the right to place reasonable restrictions on the movement of its employees to competitors. The restriction protects the Debtor’s investment in the development of its workforce, including the specialized knowledge and training it has instilled into its employees. As a contractual right held by the Debtor, each non-compete agreement holds value for the Debtor’s estate.105
Under Washington law, the elements necessary to establish a tortious interference with a contractual relationship are the same as those required for a. tor-tious interference with a business expectancy.
The existence of a valid contractual relationship. The first element presents the Court with a close call. Defendants dispute that the non-compete agreements are valid contracts, contending instead that they place unreasonable restrictions on future employment that render them unenforceable.
The determination of whether a covenant not to compete is reasonable is a question of law.
The initial inquiry focuses on whether PCI had a legitimate business
The business model of a staffing company differs substantially from those of more traditional enterprises. The ability to produce and maintain a workforce of highly skilled employees capable of satisfying client demands is its stock-in-trade.
One of the biggest threats to a staffing company is disintermediation, which occurs when a customer and employee cut out the “middle man”—in this case, the staffing company—so as to deal with each other directly.
Although the appellate courts in Washington have yet to rule on this issue, the Court predicts they would follow the evolving trend of cases which hold that disintermediation constitutes a valid business interest that warrants protection through a non-compete agreement.
Upon consideration of these factors, the Court determines that the unfettered departure of resources from PCI threatens to impair its business model if suitable restrictions are not imposed. For this reason, PCI and its competitors rely on non-compete agreements to minimize the damage inflicted by employee defections and preserve its ability its ability to continue operations as a viable enterprise. Accordingly, the preservation of PCI’s goodwill and the prevention of disintermediation serve as legitimate business interests that may be protected through a restrictive covenant.
The second factor is highly contested as well. The parties dispute whether the non-compete agreements impose any greater restrain upon the resources than is reasonably necessary to secure PCI’s business and goodwill. In other words, the Court must assess whether the scope of the restriction is reasonable. A court determines the reasonableness of a covenant by analyzing its geographic and temporal restrictions.
Defendants argue that each non-compete agreement is unenforceable because its geographic scope and the restricted employment activities are so overbroad as to preclude former PCI employees from earning a living. An initial reading of the non-compete lends some credence to this position. Upon the termination of employment, the non-compete agreement prohibits the resources from engaging in any “software services business in direct or indirect competition” with PCI for a period of one year in the following geographic areas: Washington State, California, New York State, Massachusetts, Texas, Connecticut, British Columbia (Canada), and Andhra Pradhesh (India).
Under Washington law, the review of a non-compete is not a simple-black-and-white issue where the court either accepts or rejects the restrictions in their totality.
In this instance, the Court must determine whether the non-compete constitutes an unreasonable restraint when it is used to prohibit the resources from joining Collabera’s ranks to perform the same job they previously performed for PCI just a few days earlier. Considering that these resources were working for the same customer, on the same project, in the same location within the Seattle region,
The last factor in the “reasonableness” test requires the Court to consider whether the non-compete provisions violate public policy. Although the parties have extensively briefed this matter, the Court has yet to identify any public policy that would be affronted by the enforcement of PCI’s non-compete agreements as presented. The Court also struggles to find any harm to the public, whether through a restraint of trade or the denial of necessary services, which precludes the Court from enforcing the restrictive covenant here. As noted above, the non-compete may be facially overbroad, but in the context of this action, PCI seeks relief only to the extent that CSS resources performed the same work in the same location, but for a different employer. Some courts have held that the enforcement of non-competes by staffing agencies can actually serve the public interest by ensuring that their services remain available for both employees and customers alike.
After considering all three of the “reasonableness” factors established under Washington law, the Court concludes that, for summary judgment purposes, PCI’s non-compete agreements are reasonable and enforceable as it pertains to those resources who left PCI’s employment and began work for Collabera performing the same job in the same location.
Before leaving this topic, the Court observes that Plaintiffs bear the burden of establishing a valid, enforceable contract for each of the affected resources identified in their claim. Plaintiffs allege that 61 resources (inclusive of both the CSS and Sharepoint projects) violated their restrictive covenants, but they can only produce executed agreements from 53 individuals.
Lacking documentary proof for these seven resources, Plaintiffs suggest that “[i]t was standard operating procedure at PCI to require an employee-resource to enter into a non-compete agreement with PCI as a condition of his or her employment.”
During an extensive discovery period, Plaintiffs had ample opportunities to develop the record, including the ability to direct inquiries to the seven affected employees. In the absence of any evidence showing that these seven resources agreed to be bound by a non-compete agreement, there can be no genuine issue of material fact. As Plaintiffs bear the burden of proof on this issue, the Court finds Krohn and Olson are entitled to partial summary judgment as it pertains to any claims related to the seven CSS resources for which non-compete agreements cannot be produced.
That the defendants had knowledge of the contractual relationship. It is beyond cavil that Krohn and Olson knew of the existence and content of PCI’s non-compete agreements. Both were among the small group of managers of PCI at the time it filed for bankruptcy relief.
Intentional interference with an improper motive or by improper means that causes breach or termination of the contractual relationship. Plaintiffs must establish that Krohn and Olson not only intentionally interfered with PCI’s agreements, but that the interference was wrongful. Interference is deemed wrongful if the defendant was guided by “improper motives” or used “improper means.”
Genuine issues of material fact exist as to whether Krohn and Olson intentionally interfered with the PCI non-compete agreements. Plaintiffs produced sufficient evidence to create a question of fact as to whether Krohn and Olson used improper means to identify and contact the resources Collabera hired to work on the CSS projects. After she left PCI, Krohn retained a laptop which contained PCI’s proprietary information.
Resultant damages. Plaintiffs also establish a sufficient basis at this stage to create a question of material fact as to the damages sustained by PCI. PCI previously attempted to transition its work to other suppliers through the Consultant Referral Agreement, and later, to RGen Solutions.
As to the extent of any damages, the parties rely upon their respective expert witnesses, who would presumably testify in a manner consistent with their written conclusions.
Plaintiffs assert damage claims under a
Defendants’ valuations are vastly smaller than PCI’s damage calculations.
This is sufficient to establish resulting damage to PCI for summary judgment purposes. Damages, if any, will be determined at trial. Plaintiffs are free to continue their various damage theories at trial.
Summary of Count 2. The Court grants partial summary judgment to Krohn and Olson on Count 2 as it pertains to the seven employee resources for whom a non-compete agreement cannot be produced. As to the remainder of Count 2, Krohn and Olson’s request for summary judgment is denied.
Count 3:
Civil Conspiracy
Count 3 alleges that Krohn, Olson, and Collabera agreed to commit the tor-tious actions described in Counts 1 and 2. Under Washington law, in order to establish a civil conspiracy, a plaintiff must prove by clear, cogent, and convincing evidence that: (1) two or more people combined to accomplish an unlawful purpose, or combined to accomplish a lawful purpose by unlawful means; and (2) the conspirators entered into an agreement to accomplish the conspiracy.
As indicated above, the Court does not find that the Collabera Defendants tortiously interfered with PCI’s prospective contractual relations with Microsoft regarding the CSS contracts. However, Count 2 contains several questions of material fact regarding a tortious interference with the agreements between PCI and its resources. Furthermore, Krohn and Olson were both employed by Collabera during the time when PCI’s resources were migrating to Collabera, suggesting that a sufficient threshold of circumstantial evidence exists to create a question of fact as to the commonality of interests among the Collabera Defendants. Although Collabera was not named as a defendant in Count 2, this does not insulate it from potential liability in Count 3. A defendant may be liable for a civil conspiracy even it did not actively engage in the underlying tort.
Count 5:
Tortious Interference with Contractual Relations
Count 5 alleges that Microsoft and Bey-ondsoft acted intentionally and improperly by allegedly “poaching” PCI’s employees and shepherding them to equivalent positions at Beyondsoft. This claim mirrors the tortious interference cause of action alleged in Count 3, only this time it is Microsoft and Beyondsoft who allegedly interfered with the non-compete agreements for those employees who worked for PCI on the Sharepoint project. Given that the Court previously reviewed the elements of a tortious interference with contractual relations claim in the context of PCI’s non-compete agreements, it incorporates the discussion on the law and facts from Count 2 where applicable here.
The existence of a valid contractual relationship of which the defendants have knowledge. The Court previously determined that the non-compete agreements were valid and enforceable contracts as applied in the context of this
Paragraph 40 of Plaintiffs’ Concise Statement of Facts states: “By no later than May 16, 2014, Beyondsoft knew that PCI used non-compete agreements and that some or all of the PCI Sharepoint employee-resources were subject to non-compete agreements.”
The Court cannot accept this as probative that Beyondsoft knew that the PCI resources were subject to non-compete agreements or had knowledge of the contents of those agreements before it extended employment offers to PCI's resources. This remains a disputed material fact that must be determined at trial.
The Koocher deposition provides more information on Microsoft’s knowledge of the employment contract between PCI and its employees deployed on the Sharepoint contract. Specifically, Koocher testified that certain information concerning the non-compete agreements was withheld from Microsoft.
COUNSEL: Did you ever provide a copy of the noncompetes for the particular employees you’re talking about at SharePoint to anyone at Microsoft?
KOOCHER: I would have no reason to. They’re not working directly for Microsoft.172
Nevertheless, there is sufficient evidence in the record to suggest that Microsoft had general knowledge of the non-compete agreements as early as November 2013. Plaintiffs rely upon deposition testimony and e-mail communications involving Microsoft employees which suggests they had knowledge that at least some of the PCI resources were subject to non-compete agreements which restricted their movement to other projects.
According to the Plaintiffs, Beyondsoft knew that PCI considered its non-compete agreements to be valuable assets. After it lost the Sharepoint contract for FY2015, PCI attempted to negotiate a transition of its employee resources to Beyondsoft. PCI expressed a willingness to waive the non-compete agreements in exchange for a referral fee paid to PCI.
The record also shows that Microsoft sought to retain access to PCI’s Share-point resources through Beyondsoft.
Microsoft and Beyondsoft then discussed job opportunities directly with PCI’s resources, all while they remained employed by PCI.
Evidence within the record also suggests that Beyondsoft may have abused its access to Microsoft’s global address list by using it to improperly identify and recruit PCI resources.
Similar to their co-defendants, Beyond-soft and Microsoft claim their actions were justified by the custom and standard practice used by staffing companies in this industry. They suggest that Microsoft vendors generally do not enforce their non-compete agreements when a project is awarded to a new vendor. In support of this view, Defendants refer to several instances where PCI refrained from enforc
As these issues require the Court to weigh the credibility of the evidence presented, it is not appropriate to grant summary judgment at this time.
Resulting damage. As discussed above in Count 2, Plaintiffs have established a sufficient basis at this stage to create a question of material fact as to the damages sustained by PCI.
Summary of Count 5. In consideration of each of these elements, the Court finds that Plaintiffs have demonstrated that genuine issues of material fact exist as to several of the essential elements to their claim for tortious interference against Bey-ondsoft and Microsoft. Accordingly, the Court DENIES the request for summary judgment as to Count 5.
Count 6:
Civil Conspiracy
Count 6 alleges that Microsoft and Bey-ondsoft agreed to commit the tortious actions described in Count 5. Once again, the Court incorporates here the law and factual analyses in Counts 2, 3 and 5.
As explained in Count 3, there must be an underlying tort before the Court can make a finding of conspiracy. Additionally, there must be some evidence of an agreement between Microsoft and Beyondsoft to carry out the tortious interference. Contrary to the Defendants’ position, however, direct evidence of an agreement is not required:
To establish liability for conspiracy, it is sufficient if the proof shows concert of action or other facts and circumstances from which the natural inference arises that the unlawful overt act was committed in furtherance of a common design, intention, and purpose of the alleged conspirators. In other words, circumstantial evidence is competent to prove conspiracy.185
Recognizing that conspirators are unlikely to create written documents evidencing their own conspiracy, the Supreme Court of Washington concludes that “since direct evidence of a conspiracy is ordinarily in the possession and control of the alleged conspirators and is seldom attainable, a conspiracy is usually susceptible of no other proof than that of circumstantial evidence[.]”
Plaintiffs have provided sufficient evidence of a concert of action by Microsoft and Beyondsoft to tortuously interfere with the non-compete agreements to create a genuine issue of material fact. Specifically, there is deposition testimony and documentation indicating that in May 2014, Microsoft provided assistance to Beyond-soft by, among other things, supplying the names of PCI resources deployed on the Sharepoint project and granting it access to the confidential global address list by which Beyondsoft could contact the resources.
Q: Did Microsoft encourage Beyondsoft ... [t]o reach out to the Prithvi Catalytic resources for the purpose of' offering them employment on the [Sharepoint] project[?]
A. If the intent was to retain some of those resources, then, yes, the Microsoft manager would have had to have a conversation with Beyondsoft asking them to go try to retain those resources.188
Upon consideration of these items, the Court concludes that there is a material question of fact as to whether Microsoft and Beyondsoft engaged in a concert of action to funnel resources from PCI to Beyondsoft in violation of their existing non-compete agreements. Accordingly, the Court DENIES summary judgment to Defendants Microsoft and Beyondsoft on Count 6.
Count 8:
Breach of the Implied Covenant of Good Faith and Fair Dealing
Count 8 alleges that Microsoft breached the implied covenant of good faith and fair dealing by interfering with or failing to cooperate with PCI in the performance of the Microsoft Contracts. Under Washington law, a duty of good faith and fair dealing is implied in every contract.
There is no “free-floating” duty of good faith and fair dealing.
Whether a party to a contract has breached the implied covenant (or duty) of good faith and fair dealing is a question of fact for the trier of fact.
(1) whether the defendant’s actions were contrary to the reasonable and justified expectations of [the] other parties to the contract,
(2) whether the defendant’s conduct would frustrate the purpose of the contract,
(3) whether the defendant’s conduct was commercially reasonable,
(4) whether and to what extent the defendant’s conduct conformed with ordinary custom or practice in the industry,
(5) to the extent the contract vested the defendant with discretion in- deciding how to act, whether that discretion was exercised reasonably, and
(6) subjective factors such as the defendant’s intent and motive.198
PCI recites a litany of grievances against Microsoft in connection with Count 8.
With the exception of the fifth grievance regarding the alleged poaching of employees in violation of the Vendor Code of Conduct,
It is not the Court’s function to scour the filings in search of the elements that may substantiate Plaintiffs’ claims.
In contrast to Plaintiffs’ grievances, the evidence shows that PCI obtained all of the revenue it was contractually entitled to receive on all of the Microsoft contracts. As Kulkarni admitted in his deposition:
COUNSEL: And I asked you previously, the Debtor performed and it received payment for all of the monies due from Microsoft; correct?
KULKARNI: That is correct.204
The Court similarly concluded that PCI was paid for all work performed on the CSS and Sharepoint contracts expiring on June 30, 2014.
Although a party can fulfill its written contractual obligations and still be liable for violating the covenant of good faith and fair dealing under Washington law,
Plaintiffs do not effectively address these shortcomings: Rather, their position is that Microsoft deceived PCI regarding the possibility of future work, and failed to allow additional work on existing projects, thus depriving PCI of the benefit of its bargain. Their larger complaint is that Kyko bankrolled a confirmed plan of reorganization, only to have the rug pulled out when Microsoft refused to issue new contracts to the reorganized Abilius.
These frustrations, however, do not give rise to a breach of the duty of good faith and fair dealing. Simply stated, there is nothing in the Bankruptcy Code or bankruptcy case law that obligates a party to continue a business relationship with a debtor after it emerges from bankruptcy.
In sum, the covenant of good faith and fair dealing is a derivative duty tied to the performance of specific contract obligations.
Accordingly, the Court GRANTS summary judgment in favor of Microsoft as it pertains to Count 8.
Count 9:
Violation of the Automatic Stay
and
Count 10:
Civil Contempt for Violation of the Automatic Stay
In Count 9, Plaintiffs allege that the actions undertaken by Microsoft, Collab-era, Krohn, and Olson in Counts 1-8 were intentional and occurred during a time when the automatic stay was in place.
An individual seeking damages under section 362(k)
At the outset, it is important to clarify the time period within which the automatic stay was in effect. The stay began on September 10, 2013, the date PCI filed its voluntary petition for bankruptcy relief,
Plaintiffs have proven that each of the remaining Defendants had knowledge of their bankruptcy. Krohn and Olson were both employed by PCI at the time it commenced its bankruptcy case.
An examination of the remaining elements reveals that questions of material fact exist as to whether a violation of the automatic stay occurred and the extent to which PCI may have been damaged. Count 9 is derivative of Counts 2, 3, 5, and 6 in the Complaint. Accordingly, to the extent a question of material fact exists as to those underlying counts, it prevents the Court from granting summary judgment on Count 9. Similarly, Count 10 is strictly derivative of Count 9.
The critical issue in Counts 9 and 10 is whether Defendants’ actions violated the automatic stay and were willful. As discussed earlier, genuine issues of material fact remain as to whether Defendants used improper means or had improper motives
The Court finds similar questions of fact exist as to any damages PCI may have sustained if a stay violation occurred.
Although the calculation of damages differs between the tort claims in Counts 2, 3, 5, and 6 and the stay violation claims in Counts 9 and 10, both arise from the acts allegedly committed in violation of the stay. The Court previously determined that whether Defendants intentionally and willfully committed the acts of contacting PCI resources to entice them to go to work for Collabera and Beyondsoft in violation of their non-compete agreements was a disputed question of fact. The Court also finds a significant factual dispute exists as to whether Defendants exercised control over the non-compete agreements in violation of the stay. Thus, the question of damages for violation of the stay must be carried forward to trial.
CONCLUSION
For the reasons expressed above, the Court grants partial summary judgment to the Collabera Defendants and dismisses
. For the purposes of this Memorandum Opinion and unless otherwise noted, all chapter and section references are to title 11 of the United States Code (the “Bankruptcy Code").
. Although the Court authorized the reorganized debtor to change its name to Abilius, Inc. on March 27, 2014, the Court will refer to it as "PCI” as most of the events at issue took place before the name change occurred,
. Throughout their filings, the parties use the term "resources” to refer to the PCI employees working at Microsoft. The Court will reluctantly use that term as it appears to be part of the parlance used within the IT staffing industry.
. See Defendants’ Concise Statement of Facts in Support of Motions for Summary Judgment, ¶ 22, Dkt. No, 264 (“DSF”); Plaintiffs Responses to Defendants’ Concise Statement of Facts in Support of Motions for Summary Judgment and Omnibus Counter-Statement of Material Facts in Opposition to Defendants Three Motions for Summary Judgment, ¶ 22, Dkt. No. 331 ("PRSF” or "PCSF,” as applicable). All references to “Dkt. No.” are to the Court's docket for this adversary proceeding 14-2176-GLT. References to “AP Dkt. 2015 No.” are to adversary proceeding 14-2015-GLT, and references to "Bankr. Dkt. No.” are to the docket of the underlying bankruptcy case, 13-23855-GLT.
. See First Amended Disclosure Statement for Kyko Global, Inc, and Kyko Global GmbH’s Second Amended Plan of Reorganization for Prithvi Catalytic, Inc. Pursuant to Chapter 11 of the United States Bankruptcy Code, Section III.A.1, Bankr. Dkt. No. 223 (the "Disclosure Statement”).
. The officer appointed, David Amorose, held the titles of Chief Financial Officer and Treasurer.
. Disclosure Statement at Section XI,B.2 (“the Plan is premised on .. .the Reorganized Debt- or retaining a significant portion of its business with Microsoft after June 30, 2014.. .If the Microsoft Contract is not extended, or if extended, but Microsoft fails to maintain business levels with the Reorganized Debtor similar to pre-petition levels, it is unlikely that the Reorganized Debtor could continue in business, which would render the Reorganized Debtor's ability to make the Distributions required under the Plan impossible.”).
. See Motion for Summary Judgment filed by Microsoft Corporation, Dkt. No, 262; Motion for Summary Judgment filed by Collabera, Inc., Shannon Krohn, and Ian Olson, Dkt, No. 268; and the Amended Motion for Summary Judgment filed by Beyondsoft Corporation, Dkt. No. 276.
. See Plaintiffs' Motion for Partial Summary Judgment, Dkt. No. 259.
. For additional information on the factual background of this case, see the Court’s opinion in Prithvi Catalytic, Inc. v. Microsoft Corp., 2015 Bankr. LEXIS 1185 (Bankr. W.D. Pa. April 8, 2015) (the “Dismissal Opinion’’); see also Prithvi Catalytic, Inc. v. Microsoft Corp., Collabera, Inc. et al. (In re Prithvi Catalytic, Inc.), 557 B.R. 403 (Bankr. W.D. Pa. 2016).
. This summary of the PCI-Kyko dispute is taken from the findings of fact of the district court in Kyko Global, Inc. v. Prithvi Info. Solutions, Ltd., 2016 WL 3226347, at *3-7, 2016 U.S. Dist. LEXIS 76778, at *10-20 (W.D. Wash. June 13, 2016).
. Microsoft was not one of the five customers whose receivables were offered to Kyko.
. Id., at *4, 2016 U.S. Dist. LEXIS 76778, at *11, ¶ 27. The district court outlined one example of the fraudulent activity: "Step one was for the customer of PISL or Prithvi Catalytic to execute a document authorizing or
. Id., at *11, 2016 U.S. Dist. LEXIS 76778, at *35-36, ¶ 65.
. DSF, ¶ 17; PRSF, ¶ 17.
. DSF, ¶ 23, PRSF, ¶ 23.
. DSF, ¶ 24, PRSF, ¶ 24. The parties dispute the number of resources employed on each project. Defendants claim these numbers represent the individuals employed as of the September 10, 2013 petition date, while Plaintiffs claim they reflect the number employed as of June 2014. The distinction is not material for the purposes of this Memorandum Opinion,
. The Statement of Work for the OSG project had an effective date of June 21, 2013 and an expiration date of June 30, 2016. PCSF, ¶ 33; PRSF, ¶ 6. Although Defendants issued a general denial of these statements, they failed to offer any supporting evidence for a contrary determination. Accordingly, the Court recognizes the dates shown on the Statement of Work. P. Ex. 171. Plaintiff’s exhibits (Dkt. Nos. 261, 306-08) are designated as "P, Ex.”
. The Sharepoint Statement of Work covered the period from July 1, 2013 through June 30, 2014. PCSF, ¶ 61; PRSF, ¶ 6; see also Defendants’ Joint Reply in Opposition to Plaintiffs’ Response and Counter-Statement of Concise Statement of Facts, Dkt. No. 336 ("DRPCSF”), ¶ 60-67.
. The term of the 27 CSS purchase orders was not more than one year. DSF, ¶6, PRSF, ¶ 6; P. Ex. 14.
. Dkt. No. 1, ¶ 20.
. The Court is compelled to address one particular aspect of the dispute at this stage. PCI curiously blames the government shutdown in October 2013 for its inability to timely fund employee payroll. See PCSF, ¶ 104 ("a singular payroll delay caused by the government shut-down in October, 2013”); PRSF, ¶ 27 ("Plaintiffs agree that its October 2013 payroll was delayed due to the federal government shut down that month”); ¶ 34 ("as the evidence plainly proves, the October payroll delay was a one-time event caused by a federal government shut down ...”). On one occasion, PCI goes so far as to suggest the government shutdown prevented the parties from obtaining a timely hearing from the bánkrupt-cy court. PCSF ¶ 96 (suggesting that because of the shutdown, "the Court was not able to hear [Kyko’s motion for the appointment of a trustee] until October 31, 2013”).
These statements are inaccurate for a variety of reasons. First, the Court’s operations were largely unaffected by the government shutdown. Pursuant to a General Order issued by Chief Judge Jeffery A, Deller on October 1, 2013, the Court was directed to continue "[a]ll normal operations” with its full complement of employees,” subject only to certain limited exceptions not relevant here. See General Order 2013-13. Consistent with this directive, the Court conducted hearings on at least six days during the shutdown. Second, the Court conducted an expedited hearing on Kyko’s motion on October 24, and then determined that an evidentiary hearing was required on October 31. Bankr. Dkt. Nos. 30-31. During the interim, the Court was sufficiently concerned about the potential transfer of estate funds to non-debtor affiliates that it issued an Order dated October 24, 2013 which enjoined PCI from making withdrawals or payments from any bank account without further authorization. Bankr. Dkt. No. 29. A second Order dated October 24, 2013 required that PCI make certain disclosures regarding its bank accounts, payroll, and continuing operations. Bankr. Dkt. No. 30. PCI thereafter did not attempt to address its payroll issues until October 28. Bankr. Dkt. Nos. 38-39.
. Bankr. Dkt. No. 19.
. Bankr. Dkt. No. 77.
. Id.
. DSF, 1176; PRSF, 1Í 76.
. Amorose Dep. 348-49, Defendants' Joint Appendix in Support of Motions for Summary Judgment, Dkt. Nos. 265-67, 325 ("D. Appx.”).
. DSF, ¶44; Olson Dep. at 83:22-84:2, D. Appx. 124; PRSF, ¶ 44 (not disputed as to Olson's orders to seek out potential suppliers).
. DSF, ¶46; PRSF, ¶46.
. DSF, ¶50; PRSF, ¶50.
. DSF, 1Í 52; PRSF, ¶ 52; P.Ex. 51; a signed copy is contained within P.Ex. 218.
. PCSF, ¶ 124; DSF, ¶53.
.. DSF, ¶ 59; PRSF, 1159; see also letter from Bryce Smith, Senior Director Sourcing, Microsoft Global Procurement Group, D. Appx. at 540-42.
. AP 14-2015 Dkt. No. 1.
. AP 14-2015'Dkt. No. 10.
. AP 14-2015 Dkt. No, 11,
. Defendants have implied that it was improper to appoint a new CEO without bankruptcy court approval. The Court’s previous appointment of Amorose meant he was primarily accountable for providing complete and accurate information concerning PCI’s operations and financial wherewithal to the Court, Since there is no indication in the record that Koocher’s appointment interfered with, or was intended to subvert Amorose’s duties and obligations, there is no reason to dwell on the propriety of Koocher's appointment at this time.
.Bankr. Dkt. No. 195.
. Bankr. Dkt. No. 202.
. Bankr. Dkt. No, 204.
. See Kyko Global, Inc. and Kyko Global GmbH's Second Amended Plan of Reorganization for Prithvi Catalytic, Inc. Pursuant to Chapter 11 of the United States Bankruptcy Code (the "Plan”), Bankr. Dkt. No. 224,
. Bankr. Dkt. No. 294.
. Bankr. Dkt. No. 224, 249, As the Court observed in a prior Opinion, “The Plan was undeniably premised on the continuation of the relationship with Microsoft, and Kyko made this fact known to the universe of creditors and interested parties." Dismissal Opinion at *2; see also Disclosure Statement at XI.B.2, Bankr. Dkt. No. 186.
. Bankr. Dkt, No. 270.
. DSF, ¶ 85; PRSF, ¶ 85,
. DSF, ¶ 105; PRSF, ¶ 105.
. Id; see also D. Appx. 566-69.
. DSF, ¶ 104, PRSF, ¶ 104.
. DSF, ¶ 108; PRSF, ¶ 108.
. DSF, ¶ 21, 107-08; PRSF, ¶ 21, 107-08.
. DSF, ¶ 107, PRSF, ¶ 107; Kulkarni Dep. 226:14-15, D. Appx. 155 0'July 1, 2014, the company was out of business,”), 677 (where Plaintiffs concede they had no active contracts for the employment of resources as of July 1, 2014); but see PCSF ¶ 59 (where Plaintiffs claim that "less than 10” PCI resources were still employed on the OSG project by June 2015). Plaintiff's authority for this statement arises from Koocher's declara
.Dkt. No. 1. The Complaint asserts the following claims: Count One—Tortious Interference with Contractual Relations against the Collabera Defendants; Count Two—Tortious Interference with Contractual Relations against Krohn and Olson; Count Three—Civil Conspiracy against the Collabera Defendants; Count Four—Tortious Interference with Contractual Relations against Beyondsoft; Count Five—Tortious Interference with Contractual Relations against Microsoft and Beyondsoft; Count Six—Civil Conspiracy against Microsoft and Beyondsoft; Count Seven—Tortious Interference with Business Relations against Microsoft; Count Eight—Breach of Implied Covenant of Good Faith and Fair Dealing against Microsoft; Count Nine—Violation of the Automatic Stay against all Defendants; and Count Ten—Civil Contempt against all Defendants.
. Dkt. Nos. 407, 408. A chart is attached to this Memorandum Opinion (as Appendix 1) to distinguish between the claims which remain pending and those that were previously dismissed.
. See Stern v. Marshall, 564 U.S. 462, 477, 131 S.Ct. 2594, 180 L.Ed.2d 475 (2011).
. Fed. R. Civ. P. 56(a); Willis v. UPMC Children's Hosp. of Pittsburgh, 808 F.3d 638, 643 (3d Cir. 2015).
. Kaucher v. Cty. of Bucks, 455 F.3d 418, 423 (3d Cir. 2006) (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct 2505, 91 L.Ed.2d 202 (1986)).
. Willis, 808 F.3d at 643.
. Id. (citing Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986)).
. Celotex, 477 U.S. at 323, 106 S.Ct. 2548.
. Parkell v. Danberg, 833 F.3d 313, 323 (3d Cir. 2016) (quoting Armour v. Cty. of Beaver, Pa. 271 F.3d 417, 420 (3d Cir. 2001)).
. Dismissal Opinion at *7.
. P. Ex. 21, 31. The employment agreements contained four documents: (1) the offer letter, which contains the principal terms of the employment; (2) a non-disclosure agreement; (3) the non-compete agreement; (4) the code of conduct. Only the non-disclosure agreement has a choice of law clause (Pennsylvania), and that clause only references the nondisclosure agreement.
. Williams v. Leone & Keeble, Inc., 171 Wash.2d 726, 254 P.3d 818, 823 n. 6 (2011) ("Washington adheres to the most significant relationship’ test, as developed by the Restatement (Second) of Conflict of Laws § 6 (1971).”); Ario v. Underwriting Members of Lloyd’s of London Syndicates 33, 205 and 506, 996 A.2d 588, 593 (Pa. Comm. Ct. 2010) ("the choice of law determination looks to the law of the jurisdiction with the most significant relationship to the occurrence and the parties, placing importance on analysis of the
. But Pennsylvania is not PCI's state of incorporation. That is Delaware.
. DSF, ¶ 20; PRSF, ¶20.
. The Court previously determined that Count 1 exists only as a claim for tortious interference with a business expectancy, rather than as a tortious interference with an existing contract. Dismissal Opinion, at * 23.
. Compl. at ¶ 12-14; Collabera Defendants' Answer at ¶ 12-14, Dkt. No. 64.
. Life Designs Ranch, Inc. v. Sommer, 191 Wash.App. 320, 364 P.3d 129, 138 (2015) (quoting Leingang v. Pierce Cty. Med. Bureau, 131 Wash.2d 133, 930 P.2d 288, 300 (1997)).
. Pac. Nw. Shooting Park Ass'n v. City of Sequim, 158 Wash.2d 342, 144 P.3d 276, 284 (2006) (citing Scymanski v. Dufault, 80 Wash.2d 77, 491 P.2d 1050, 1054-55 (1971) (quoting 1 F. Harper & F. James, The Law of Torts § 6.11, at 510 (1956))).
. Newton Ins. Agency & Brokerage, Inc. v. Caledonian Ins. Grp., Inc., 114 Wash.App. 151, 52 P.3d 30, 33 (2002).
. Caruso v. Local Union No. 690 of Int’l Bhd. of Teamsters, 33 Wash.App. 201, 653 P.2d 638, 643 (1982) rev'd on other grounds, 100 Wash.2d 343, 670 P.2d 240 (1985).
. Life Designs, 364 P.3d at 138 (citing Caruso, 653 P.2d at 643). This requirement is not unique as courts in Pennsylvania and other jurisdictions distinguish between plaintiffs who have a reasonable expectations of a valid business expectancy and those who merely engage in "wishful thinking.” See, e.g., Int'l Diamond Importers, Ltd. v. Singularity Clark, L.P., 40 A.3d 1261, 1275 (Pa. Super. Ct. 2012); Harp v. Rahme, 984 F.Supp.2d 398, 422 (E.D.Pa. 2013); Griffin v. Jones, 170 F.Supp.3d 956, 969 (W.D. Ky. 2016); Rockwell Med., Inc., v. Yocum, 76 F.Supp.3d 636, 648 (E.D. Mich. 2015).
. Cascade Ambulance Serv., Inc., v. City of Bellingham. 2002 WL 31250306 at * 4, 113 Wash.App. 1054 (Wash. Ct. App. Oct. 7, 2002).
. DSF, ¶ 106, PRSF, ¶ 106.
. DSF, ¶ 91; PRSF, ¶91 ("Although Microsoft has ‘every right’ not to renew a contract or to change suppliers, Microsoft was required to do so in good faith and in accordance with the law.”); see also Kulkami Dep. 844:21-845:3-4, D. Appx. 176 (“...Microsoft has every right to not renew the contract. It is their contract. We fully understand we are at their mercy.”); see also id. at 845:15— 19 (“Q. Well, you’re saying now that as of 5/20 and 5/30 you had no claim—Microsoft had every right not to—to change vendors for the next year contract; right? A. That is correct.”). There is no provision in the MVA or other contracts in the record that provide for automatic renewal beyond the terms of the contracts. P. Ex. 15, 168.
. DSF, ¶ 89; PRSF, ¶ 89; see also Email from O’Connor to Koocher, May 14, 2014. D. Appx. 564. (“It is certainly not my intention to keep you guys in the dark with regards to future plans with Abilius. I am under guidance to not meet to discuss any future relationships with your company until released from bankruptcy, this message has been consistent since day one. ... As soon as Abilius is released from bankruptcy, I am more than happy to meet with you, along with my leadership team, to discuss future plans.”) Rebec
. P. Ex. 123 e-mail from Koocher to O’Con-nor ("I was extremely pleased to hear that we are able to proceed with planning as normal regarding FY15, Good news, indeed.”)
. PSF, ¶ 106; P. Ex. 204 at p. 46-47.
. See P. Ex. 197 at 29-30; P. Ex. 201 at 22.
. D. Appx. 78-79.
. D. Appx. 502.
. While the parties debate the nature of PCI's early payroll issues, títere is no dispute that PCI's bankruptcy counsel made the following representations to the Court in November 2013;
... Microsoft has made it vety clear to the debtor that if there is a problem with another payroll that they are going to terminate the contract with PCI so we are acutely aware of the urgency of keeping payroll on track,
Bankr.Dkt, No. 384, 5:4-8,
. DSF, ¶ 43; PRSF, ¶ 43; see also D. Appx, 502, 233 (at pp, 322-23), 241 (at pp. 382-83),
. P. Ex. 39. The parties dispute whether Joy actually informed PCI of Microsoft’s intent to terminate PCI’s contracts and move to a "more stable supplier.” DSF, 1141, PRSF, ¶ 41; D. Appx. 93-94.
. DSF, ¶ 59; PRSF, ¶ 59; D. Appx. 540-42.
. AP 14-2015, Dkt. No. 1.
. AP 14-2015, Dkt. No. 11.
. DSF, ¶ 63 (citing Krohn Dep. 21-32, D. Appx. 41-44; P. Ex. 75, 93; Widmyer-Joy Dep. 210:23-211:2, D. Appx. 113 ("Microsoft’s stance on our intent to terminate the relationship as soon as we could did not change post the communication of January [2014].”)).
. PRSF, ¶ 63.
. The record indicates that by January 17, 2014, Microsoft was in contact with Collabera to transition CSS work, including the Mission Control project, to Collabera. DSF, ¶ 60; PSF, ¶ 60. There is no evidence, however, that Collabera initiated the dialogue or interfered with PCI's ability to get the work outside of any normal competitive motivations. Indeed, it appears that Collabera was recommended by Microsoft Procurement to Microsoft business managers as an acceptable substitute vendor on the CSS projects. DSF, ¶ 48; Biel-man Dep. 30:19-25, D. Appx. 75; see also PSF, ¶ 48 (disputing Microsoft’s preference for Collabera based on the "mistaken belief” that any transition would be consensual, but providing no citation to any part of the record which would refute the testimony of Microsoft employees on this point. In particular, P. Ex. 39 indicates that the prospect of continuing work with PCI as a subcontractor was unacceptable to Microsoft in December 2013.)
Before January 29, 2014, whatever alleged actions taken by Krohn and Olson were related to the Consultant Referral Agreement, an effort to transfer PCI projects to their competitors that was initially directed and approved by PCI senior management (Madhavi). Although their efforts may have favored Collabera and some of their actions and motives may have been surreptitious, the record does not support that, prior to January 29, 2014, they were actively attempting to prevent PCI from obtaining prospective contracts for FY 2015 or later.
. DSF, ¶ 60.
. PRSF, ¶ 60.
. DSF, ¶ 64.
. PRSF, ¶ 64.
. Newton, 52 P.3d at 34 (internal quotation marks omitted) (quoting Restatement (Second) of Torts § 766B cmt. d).
. Count 1 of the Complaint only deals with Collabera, Krohn, and Olson. The Court has not been asked to review the possible culpability of Microsoft, which will be examined in the following Counts.
. Pleas v. City of Seattle, 112 Wash.2d 794, 774 P.2d 1158, 1163 (1989).
. Id.
. Newton, 52 P.3d at 34; Goodyear Tire & Rubber Co. v. Whiteman Tire, Inc., 86 Wash.App. 732, 935 P.2d 628, 636 (1997).
. Leingang, 930 P.2d at 304-05.
. Restatement (Second) § 768, cmt, b.
. This will be examined in Count 2.
. DSF, ¶ 50, 58, PRSF, ¶ 50, 58.
. DSF, ¶ 55, PRSF, ¶ 44.
. Dismissal Opinion, at *39 (internal citations omitted).
. Leingang, 930 P.2d at 300. Stated more succinctly, Plaintiffs must demonstrate: (1) the existence of a valid contractual relationship of which the defendants have knowledge, (2) an intentional interference with an improper motive or by improper means that causes breach or termination of the contractual relationship, and (3) resultant damage. Elcon Constr., Inc. v. E. Wash. Univ., 174 Wash.2d 157, 273 P.3d 965, 971 (2012).
.As a preliminary matter, Plaintiffs argue that Defendants lack standing to challenge the enforceability of the non-compete agreements and are otherwise barred from doing so by the terms of the confirmed Plan because they have not suffered an injury to a legally protected interest.
[I]t is clear that a defense or affirmative defense is not properly called an "action” or a "claim” but is rather a response to an action or a claim. When a lawyer files a responsive pleading to an action or claim, she does not say that she is bringing an action or filing a claim; instead, she says that she is answering, responding to, or defending against an action.
Id, Consequently, the Court concludes that Defendants’ defenses' are not barred by PCI’s Plan.
. Emerick v. Cardiac Study Ctr., Inc., P.S., 170 Wash.App. 248, 286 P.3d 689, 692 (2012) ("Emerick I”).
. Perry v. Moran, 109 Wash.2d 691, 748 P.2d 224, 229 (1987) judgment modified on recons, on other grounds, 111 Wash.2d 885, 766 P.2d 1096 (1989).
. Alexander & Alexander, Inc. v. Wohlman, 19 Wash.App. 670, 578 P.2d 530, 538 (1978).
. Perry, 748 P.2d at 228; Emerick v. Cardiac Study Ctr., Inc., 189 Wash.App. 711, 357 P.3d 696 (2015) ("Emerick II”).
. Emerick I. 286 P.3d at 692.
. Id. at 693.
. See Wood v. May. 73 Wash.2d 307, 438 P.2d 587, 590 (1968); Ashley v. Lance, 75 Wash.2d 471, 451 P.2d 916, 919 (Wash. 1969) rev'd in part on other grounds, 80 Wash.2d 274, 493 P.2d 1242 (1972).
. Emerick I, 286 P.3d at 693.
. The Court finds PCI’s assembled teams of highly-skilled workforce to be materially different from the unskilled workers involved in National Employment Service Corp. v. Olsten Staffing Service, Inc., 145 N.H. 158, 761 A.2d 401 (2000), a case heavily relied upon by the Collabera Defendants,
. See HR Staffing Consultants, LLC v. Butts, 627 Fed.Appx. 168, 172 (3d Cir. 2015).
. Id. (citing Consultants & Designers, Inc. v. Butler Serv. Grp., Inc., 720 F.2d 1553, 1559 (11th Cir. 1983)) ("Without non-competes, employees searching for placements and clients seeking specialized personnel ‘could get the benefit of [a staffing company’s] services without paying the full price of those services” by entering into a direct relationship with each other as soon as employees had been placed,).
, See, e.g., Perficient, Inc. v. Priore, 2016 WL 1716720 (D.Mass. Apr. 26, 2016) (finding disintermediation to be a legitimate business interest when considered as part of protecting the employer’s goodwill); Aerotek, Inc. v. Burton, 835 So.2d 197, 201 (Ala. Civ. App. 2001); Volt Servs. Group, v. Adecco Employment Servs., Inc., 178 Or.App. 121, 35 P.3d 329, 334 (2001); Borg-Warner Protective Servs. Corp. v. Guardsmark, Inc., 946 F.Supp. 495, 502 (E.D.Ky. 1996) aff’d 156 F.3d 1228 (6th Cir. 1998); Elite Cleaning Co.,
. HR Staffing, 627 Fed.Appx. at 172.
. P. Ex, 21, 24, 25, 26, 27. Because the Collabera Defendants have provided a joint defense in this adversary proceeding, the Court concludes that the interests of Krohn and Olson on this question would be the same as Collabera,
. P. Ex. 28.
. Emerick II, 357 P.3d at 703 (citing Wood, 438 P.2d at 587).
. D. Appx. 626.
.See Memorandum of Law in Support of the Motions for Summary Judgment on Behalf of Defendants Collabera, Inc., Ian Olson, and Shannon Krohn, Dkt. No. 269 at pp. 19-20 ("unreasonable in geographical scope and in its activity-based restrictions.”); Memorandum of Law in Support of Defendant Microsoft Corporation’s Motion for Summary Judgment, Dkt. No. 263, pp. 18-19; Defendant Beyond-soft Consulting, Inc.'s Memorandum of Law in Support of its Motion for Summary Judgment, Dkt. No. 272. Presumably, the decision not to argue against the temporal restriction was born out of self-interest. The Beyondsoft non-compete agreement similarly provides for a one-year prohibited period while Collabera uses a sliding scale of between 12-24 months in its agreements. See P. Ex. 21, 25.
. Wood, 73 Wash.2d 307, 438 P.2d 587, 590 (1968).
. Id. at 591 (explaining that a covenant should be enforced to the extent it is reasonable).
. Id. at 591 (finding it "just and equitable” to enforce a restrictive covenant "to the extent necessary to accomplish the basic purpose of the contract insofar as such contract is reasonable”).
. Emerick II, 357 P.3d at 703.
. DSF, ¶ 20; PRSF, ¶20.
. In reaching this conclusion, the Court is mindful of the distinction between the approach used by the Supreme Court in Wood and the analysis employed by the Court of Appeáls in Emerick I and Emerick II. While the holding in Wood suggests that a court can only strike out the offending provisions in a contract, a non-compete provision was modified and re-written by the court in Emerick I to reduce a restriction against employment within the entirety of Pierce County to one that only limited practice to a two-mile radius surrounding the former employer’s site. For the purpose of this analysis, the Court has ignored the "Restricted Territoiy” language and focused solely on whether the definition of "Restricted Business" would cover the resources who transitioned to Collabera.
.Krohn and Olson suggest a "winner take all” philosophy should apply here. Once it was awarded the CSS projects, they claim Collabera was no longer a competitor of PCI, thereby rendering the non-compete agreements ineffective to resources who left PCI to join Collabera. The Court cannot buy into this argument because both entities actively pursued the CSS work and Collabera’s victory came at PCI’s expense. Common sense dictates that when two enterprises operate in the same industry and vie for the same business, they are competitors, even if one firm is unsuccessful in its efforts to obtain new customers.
. HR Staffing, 627 Fed.Appx. at 175; Consultants & Designers, 720 F.2d at 1560.
. See DSF, ¶ 127, PRSF, ¶127; see also PSF, ¶ 33; DRSF, ¶ 33.
. PSF, ¶ 34; DRSF, ¶34. The seven individuals are David Foster, Isaac Kim, Andrew McWilliams, Kenneth Roberts, Theodore Bancroft, Dylan DeBoer, and Jose Alvarez. Id. With respect to three of those resources, Plaintiffs produced letters that suggest these individuals were given an offer of employment contingent upon, among other things, the execution of a non-compete agreement. PSF, ¶ 35; DRSF, ¶35. As to the other four individuals, Plaintiffs concede that they are unable to produce any direct evidence showing that these resources executed a non-compete agreement with PCI. PSF, ¶ 35-36, DRSF, ¶ 35-36.
. PSF, ¶ 22.
. Krohn Dep. 84-85, P. Ex. 8.
. See DSF, ¶ 128, PRSF, ¶ 128 (Olson testified that he refused to sign a non-competition or non-solicitation agreement with PCI and no such agreements could be found for Krohn); see also Koocher Dep, at 339:2-18, D, Appx. 203; Olson Dep. 233:14-15, >D. Appx. 130- (Olson testified that "[m]any resources within the OSG model did not have noncompetes,”), 235:12-16, D. Appx. 131 (identifying Matthew Penick and James Wells as two individuals who refused to sign non-compete agreements with PCI).
. Dkt. No. 1, ¶ 7 (“To minimize this risk [of solicitation by competitors], the Debtor almost always requires that its employees execute non-compete agreements at the time of hiring. The vast majority of the Debtor's employees are subject to such agreements.”).
. See Olson Dep. fn. 67.
. Krohn Dep, 84:15—85:6, P. Ex. 8.
. P. Ex. 9, pp. 73-75.
. PSF, ¶ 65-66; DRSF, ¶ 65-66; D. Appx. 528.-
. PSF, ¶ 67; DRSF, ¶67, P. Ex. 33.
. Pleas v. City of Seattle, 112 Wash.2d 794, 774 P.2d 1158 (1989).
. See fn. 99.
. Leingang, 930 P.2d at 300.
. PCSF, ¶ 115; Krohn Dep. 148-152, P. Ex. 194; see also DRPCSF, ¶¶ 114-124 (which does not substantiate the basis for their general denial).
. Krohn Dep. 136:21-25, P. Ex. 194.
. Amorose Decl. ¶ 2, P. Ex. 207.
. Olson Dep. 271-72, D. Appx. 136; Amorose Dep. 332-334, D. Appx. 234-36.
. DSF, ¶¶ 15; Joy Dep. 138-41, P. Ex. 196.
. DSF ¶¶ 44, 45, 46, 52
. January 30, 2014 Trans, p. 8-9, Bankr, Dkt. No. 168.
. DSF, ¶¶ 139-40, 147, 152-53; see also D. Appx. 677 (where Plaintiffs admit that, as of July 1, 2014, PCI has no contracts through which it could deploy unassigned resources).
. The Court has before it the following documents: (1) PCI’s Final Damages Calculation, D. Appx. 768-776; (2) PCI’s July 2016 Valuation Report of R.A. Cohen Consulting, P. Ex. 216; (3) Microsoft’s Litigation Support Report of July 8, 2016 (the "Microsoft Report”), P. Ex. 218; (4) Beyondsoft’s Report of Alvarez & Marsal Valuation Services, LLC (the "Beyondsoft Report”), P. Ex. 217.
. Dkt. No. 269, p. 29.
. Among the damages alleged, Plaintiffs allege a right to recovery for the following amounts under alternative legal theories: (a) $27,041,442, representing the amount PCI must repay to creditors under its plan of reorganization (the bulk of which represents Kyko’s claim); (b) $12,664,700 for the lost value of the enterprise based on PCI's historical performance; (c) $46,526,715 arising from PCI’s lost cash flow, lost profits, and lost value; (d) $10,646,170 attributed to the lost value related to the transfer of resources; (e) disgorgement and attorney fees, in amounts to be determined; and (f) punitive damages in an amount exceeding $50 million. See D. Appx. 719-67.
. As an initial matter, Defendants argue that there can be no damages because the non-compete agreements are unenforceable. Based on the Court’s determination that the non-compete agreements are reasonable under the limited circumstances of this case, Defendants' second scenario (which assesses damages under the assumption that the non-competes are enforceable) is more relevant to this discussion.
. Microsoft Report, P. Ex. 218 at 6, 15.
. Beyondsoft Report, P. Ex. 217 at 9.
. Alexander v. Sanford, 181 Wash.App. 135, 325 P.3d 341, 367 (2014) (quoting All Star Gas, Inc. of Wash. v. Bechard, 100 Wash.App. 732, 998 P.2d 367, 372 (2000)).
. Reiber v. City of Pullman, 918 F.Supp.2d 1091, 1095 (E.D.Wash. 2013) (citing W.G. Platts. Inc. v. Platts, 73 Wash.2d 434, 438 P.2d 867, 871 (1968).
. Id.
. Wilson v. State, 84 Wash.App. 332, 929 P.2d 448, 459 (1996).
. All Star Gas Inc., 998 P.2d at 372 (citing Lewis Pac. Dairymen's Ass'n v. Turner, 50 Wash.2d 762, 314 P.2d 625, 631 (1957).
. Sterling Business Forms, Inc. v. Thorpe, 82 Wash.App. 446, 918 P.2d 531, 535 (1996) ("The liability of conspirators is joint and several. That is, each is liable for all acts committed by any of the other parties, either before or after their entrance, in furtherance of the common design." (citing Lyle v. Haskins, 24 Wash.2d 883, 168 P.2d 797, 807 (1946)).
. PSF, ¶ 40.
. Id.
. Koocher Dep. 55:7-10, 61:16-19, 62:4-7, P. Ex. 12; see also P. Ex. 33.
. Yang Dep. 96:17-25, 476:6-10, P. Ex. 10; D. Appx. 257.
. Koocher Dep. 56:18-23, D. Appx. 189.
. See Butler Dep. 254, P. Ex. 198; Chong Dep. 61:15-23; 66-70; 188-89, P. Ex. 199; Joy Dep. 264:20-23, P. Ex. 196; P.Exs. 90, 111, 158; P. Ex. 28 ("Regardless of what we (MSFT) do with the contract with Prithvi the resources would (likely) still be bound by the non-compete they have in place with their employer.”); P. Ex. 33 ("getting the warning that Prithvi resources are under [a] non-compete”); P. Ex. 141 (“Even if the resources leave Prithvi most, if not all, of [them] have a non-compete w/ Prithvi.”)
. Koocher Decl. ¶ 25, P. Ex. 208; P. Ex. 33, 181.
. Joy Dep. 312:9-20, 275:13-16, P. Ex. 1.
. Chong Dep. 45:18-25, P. Ex. 199.
. Id. 44:13-45:9, P. Ex. 199.
. DSF, ¶ 118.
. P. Ex. 141: PCSF. ¶ 99.
. DSF, ¶ 118; PRSF, ¶ 118.
. Yang Dep. 201:5-22, 373:8-11, P. Ex. 10; P. Ex. 72, 73.
. See O’Connor Dep. 247:16-20, P. Ex. 200 (acknowledging that use of the global address list for recruitment purposes was a violation of Microsoft’s Code of Conduct).
. See fn. 151.
. DSF, ¶ 122; Kulkarni Dep. 981-988, D. Appx. 296-298; D. Appx. 599-611.
. Sterling, 918 P.2d at 534 (citing Lyle, 168 P.2d at 806-07).
. Lyle, 168 P.2d at 807.
.See fn. 181, Notably, the Sterling court found that providing access to confidential client information could be circumstantial evidence of conspiracy to "poach” customers. Sterling, 918 P.2d at 534. Here, Microsoft allegedly provided access to PCI’s confidential information as well as confidential information from Microsoft. Plaintiffs allege that utilizing Microsoft’s confidential global ad
. Joy Dep. 312:9-20, 275:13-16, P. Ex. 1.
. Frank Coluccio Construction Co., Inc. v. King County, 136 Wash.App. 751, 150 P.3d 1147, 1154 (2007) ("There is an implied duty of good faith and fair dealing in every contract.”) (citing Badgett v. Security State Bank, 116 Wash.2d 563, 807 P.2d 356 (1991)); Restatement (Second) of Contracts § 205 ("Every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement.”).
. Coluccio Construction Co., 150 P.3d at 1154 (citing Metro. Park Dist. of Tacoma v. Griffith, 106 Wash.2d 425, 723 P.2d 1093, 1100 (1986)).
. Rekhter, 323 P.3d at 1041 (citing Goodyear Tire, 935 P.2d 628, 632).
. Keystone Land & Dev. Co. v. Xerox Corp., 152 Wash.2d 171, 94 P.3d 945, 949 (2004); New Vision Programs Inc. v. Dep't of Soc. & Health Servs. 2016 WL 1230324, at *3, 193 Wash.App. 1011 (Wash. Ct. App. March 29, 2016) (citing Rekhter v. Dep't of Soc. & Health Servs., 180 Wash.2d 102, 323 P.3d 1036, 1041 (2014)).
. Keystone, 94 P.3d at 949 (citing Badgett v. Security State Bank, 116 Wash.2d 563, 807 P.2d 356, 360 (1991)) (emphasis added).
. Rekhter, 323 P.3d at 1041.
. Barrett v. Weyerhaeuser Co. Severance Pay Plan, 40 Wash.App. 630, 700 P.2d 338, 342 n.6 (1985).
. Steadman v. Green Tree Servicing, LLC, 2015 WL 2085565 at *10 (W.D.Wash. May 5, 2015).
. Commonwealth Land Title Ins. Co. v. Soundbuilt Northwest LLC, 2013 WL 2325847 at *5, 175 Wash.App. 1004 (Wash. Ct. App. May 28, 2013).
. Microsoft Corp. v. Motorola, Inc., 963 F.Supp.2d 1176, 1184-85 (W.D.Wash. 2013)(citations omitted).
. See Plaintiffs' Omnibus Opposition to Defendants' Three Motions for Summary Judgment, at pp. 79-81. Dkt. No. 329.
. Significantly, a copy of the Microsoft Vendor Code of Conduct was not produced in the record. While this alone would give the Court reason to deny any claim arising out of the Code of Conduct, the Court finds other problems with Plaintiffs’ argument. Plaintiffs are correct that compliance with the Vendor Code of Conduct is required by the MVA. P. Ex. 15, § 2(d). Testimony from a Microsoft witness also suggests that the Code of Conduct discourages vendors from poaching other vendor’s employees. O'Connor Dep. 245:21-246:7, P. Ex. 200. By its terms, however, the MVA imposes the Code of Conduct requirements upon the respective suppliers. From the information available to the Court, it does not appear that the Code of Conduct gives PCI any rights as against other vendors, nor can the Court ascertain how any alleged inconsistency in the enforcement of the Code
. Nor are the Plaintiffs excused from this requirement. Although Plaintiffs claim they did not receive executed copies of the CSS contracts from Microsoft, for instance, it appears that they obtained unexecuted copies of the original documents. PCSF, ¶ 81.
. See fn. 200.
. See, e.g., Doeblers' Pa. Hybrids, Inc. v. Doebler, 442 F.3d 812, 820 n.8 (3d Cir. 2006); CILP Assocs., L.P. v. PriceWaterhouse Coopers LLP, 735 F.3d 114, 125 (2d Cir. 2014); Rodgers v. City of Des Moines, 435 F.3d 904, 908 (8th Cir. 2006) ("[W]e will not mine a summary judgment record searching for nuggets of factual disputes to gild a party’s arguments.”); United States v. Dunkel, 927 F.2d 955, 956 (7th Cir, 1991) (per curiam) (“Judges are not like pigs, hunting for truffles buried in briefs.”),
. Kulkarni Dep. 178:15—22, D. Appx. 153.
. Dismissal Order at *8, 10.
. Koocher Dep. 91:17-20, D. Appx. 192; Amorose Dep. 417:18-23, D. Appx. 192; see also PRSF, ¶ 79 which disputes this allegation but provides no citation to any specific contractual provision.
. Unlike other jurisdictions, a claim for breach of an implied covenant of good faith and fair dealing can be pursued in Washington in the absence of a breach of contract. See Rokhter, 323 P.3d at 1041.
. Goodyear Tire, 935 P.2d at 632.
. OSG Statement of Work, P. Ex. 171 at § 7(c).
. Rekhter, 323 P.3d at 1044; New Vision, 2016 WL 1230324 at *3.
. A fresh start in bankruptcy may provide economic relief to a debtor, but it is not a magic wand that causes negative perceptions or reputations to vanish overnight. See In re Grove, 100 B.R. 417, 422 (Bankr. C.D. Ill. 1989); In re Hermoyian, 435 B.R. 456, 466 (Bankr. E.D. Mich. 2010) (a fresh start does not mean debtors are free from all of the consequences of every decision that they have made, which in hindsight, might have been ill-advised). That work falls upon the reorganized debtor to restore business relationships with the tools provided in bankruptcy to achieve financial success.
. The Court has examined the principal contracts in the record, and finds no provision requiring extensions or renewals of work.
. See May 30, 2014 Trans. 15:7-12, Bankr. Dkt. No. 297 (“We believe that [the Microsoft Contracts] will be renewed. We do not have an assurance sitting here today that they have been renewed, or that we can’t guarantee that it will occur, but we are very hopeful, and we believe that the recent developments mean that Microsoft is going to renew the existing contracts.’’); see also fn. 7.
. May 30, 2014 Trans. 12:8-10, Bankr.Dkt. No. 297 (“In the first year of the plan projections, we assume that the debtor will lose approximately 50 percent of the Microsoft business.”)
. Johnson v. Yousoofian, 84 Wash.App. 755, 930 P.2d 921, 925 (1996).
. Id.
. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).
. Beyondsoft was dismissed from Counts 9 and 10 in the Dismissal Opinion.
. Count 9 of the Complaint recites: "Each of the Defendants intentionally acted in the manners described above [Counts 1-8] while the automatic stay imposed by section 362 of the Bankruptcy Code remained in place.” Dkt. No. 1, ¶ 111. However, Plaintiffs’ motion for summary judgment argues that stay violations occurred only with respect to the non-compete agreements. Dkt. No. 260 ("In Counts Nine and Ten of their Complaint, Plaintiffs allege that Defendants violated the automatic stay by exercising possession or control over these estate assets.”), 259, 330. They have not prosecuted or even discussed the issues raised in Counts 1 and 8 which do not implicate the non-compete agreements. The Court will therefore consider those two Counts abandoned for stay violation purposes.
. 11 U.S.C. § 362(k)(l) provides:
Except as provided in paragraph (2), an individual injured by any willful violation of a stay ... shall recover actual damages, including costs and attorneys’ fees, and, in appropriate circumstances, may recover punitive damages.
Although it refers only to an "individual,” the Third Circuit has held that section 362(k)(1) also applies to corporate debtors, like PCI. Cuffee v. Atl. Bus. & Cmty. Dev. Corp. (In re Atl. Bus. & Cmty. Dev. Corp., 901 F.2d 325, 329 (3d Cir. 1990).
. Krystal Cadillac-Oldsmobile GMC Truck, Inc. v. General Motors Corp. (In re Krystal Cadillac-Oldsmobile GMC Truck, Inc.), 337 F.3d 314, 320 n.8 (3d Cir. 2003).
. Univ. Med. Ctr. v. Sullivan (In re Univ. Med. Ctr.), 973 F.2d 1065, 1087 (3d Cir. 1992); Wingard v. Altoona Reg. Health Sys. & Credit Control Collections (In re Wingard),
. FTC v. Lane Labs-USA, Inc., 624 F.3d 575, 582 (3d Cir. 2010) (citations omitted).
. Id.
. Id. (citations omitted); see also Bayer Business and Technology Servs. v. AGR Premier Consulting, Inc. (In re AGR Premier Consulting, Inc.), 550 Fed.Appx. 115, 123 (3d Circ. 2014).
. See 11 U.S.C. § 362(a); Bankr. Dkt. No. 1.
. Bankr. Dkt. No. 270. On the Effective Date of the Plan, all property of the bankruptcy estate revested in Abilius. See Plan at § 6.5, Bankr. Dkt. No. 224; see also Confirmation Order, Bankr. Dkt. No. 249, § 3.
. As such, Plaintiffs' statement in their PSF at ¶ 9 is factually incorrect ("The Reorganization Plan took effect on June 30, 2014.”). It is not clear how this error may have infected other statements in the PSF. See also DRSF, ¶ 9 (wherein this factual allegation is admitted).
. PSF, ¶ 11; DRSF, ¶ 11.
. PSF, ¶ 15; DRSF, ¶¶ 14-15.
. PSF, ¶ 15; DRSF, ¶ 15.
. PSF, ¶ 17; DRSF, ¶ 17
. Amorose Dep. 334-336, D.Appx. 234.
. Plaintiffs concede that the issue of damages under Counts 9 and 10 cannot be determined at this stage and have only sought summary judgment as to liability.
. Life Designs, 364 P.3d at 152 ("A proximate cause is one that in natural and continuous sequence, unbroken by an independent cause, produces the injury complained of and without which the ultimate injury would not have occurred.”).
. 11 U.S.C. § 362(k); In re Snowden, 422 B.R. 737, 740 (Bankr. W.D, Wash. 2009).
Reference
- Full Case Name
- IN RE: PRITHVI CATALYTIC, INC. n/k/a Abilius, Inc., Reorganized Debtor. Prithvi Catalytic, Inc. n/k/a Abilius, Inc., Kyko Global, Inc., and Kyko Global GmbH v. Microsoft Corporation, Collabera, Inc., Beyondsoft Corporation, Ian Olson, and Shannon Krohn
- Cited By
- 1 case
- Status
- Published