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:
ICONIX BRAND GROUP, INC.; STUDIO IP :
HOLDINGS, LLC, and ICON DE HOLDINGS, :
LLC, :
:
Plaintiffs, : Case 17 Civ. 3096 (AJN)
:
v. :
:
ROC NATION APPAREL GROUP, LLC; ROC :
APPAREL GROUP LLC; ROC NATION, LLC; :
SHAWN C. CARTER a/k/a JAY-Z; NEW ERA :
CAP COMPANY, INC. d/b/a NEW ERA; MAJOR :
LEAGUE BASEBALL PROPERTIES, INC.; HAT :
WORLD, INC. d/b/a LIDS SPORTS GROUPS; :
SAN FRANCISCO BASEBALL ASSOCIATES, :
LLC d/b/a SAN FRANCISCO GIANTS; CIRCLE :
OF SUCCESS LLC; MADEWORN HOLDINGS :
LLC; EMERY JONES; KAREEM BURKE; :
PAPER PLANES IP HOLDINGS, LLC, and :
JOHN DOES 1-5, :
:
Defendants. :
:
TABLE OF CONTENTS
Page
LEGAL STANDARD..................................................................................................................... 5
ARGUMENT .................................................................................................................................. 5
I. Plaintiffs Allegations Do Not State Valid Claims With Respect To Mr. Carter And
Should Be Dismissed Pursuant To Rule 12(b)(6). .............................................................. 5
ii. Because Mr. Carter cannot be held personally liable for any
independent tort, Plaintiffs fail to state a claim for tortious
interference with economic advantage...................................................... 14
II. Plaintiffs Amended Complaint Does Not Comply With Rule 8 Pleading Standards
With Respect To Mr. Carter And Should Be Dismissed. ................................................. 15
CONCLUSION ............................................................................................................................. 17
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TABLE OF AUTHORITIES
Page(s)
Cases
Ashcroft v. Iqbal,
556 U.S. 662 (2009) ...................................................................................................................5
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Salahuddin v. Cuomo,
861 F.2d 40 (2d Cir. 1988).......................................................................................................16
Shostack v. Diller,
No. 15-CV-2255 (GBD) (JLC), 2015 WL 5535808 (S.D.N.Y. Sept. 16, 2015) .......................7
Usov v. Lazar,
No. 13 Civ. 818 (RWS), 2013 WL 3199652 (S.D.N.Y. June 25, 2013) ...................................7
Rules
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Other Authorities
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Memorandum of Law in support of his motion for an order pursuant to Rules 8 and 12(b)(6) of
the Federal Rules of Civil Procedure, dismissing all claims and counts asserted against him,
namely Counts IX, X, XI, XIV, and XV of Plaintiffs First Amended Complaint, for failure to
state a claim and for failure to adhere to the Federal Rules mandatory pleading standards.
PRELIMINARY STATEMENT
Plaintiffs attempt to use Mr. Carter and his celebrity status to advance their claims is
improper and should not be tolerated. Despite its length, Plaintiffs 119-page First Amended
Complaint (the Complaint) provides essentially no clear allegations of conduct by Mr. Carter
that would render him personally liable for the alleged harm caused to Plaintiffs. The absence of
specific allegations of actions by Mr. Carter evidence Plaintiffs inclusion of Mr. Carter in this
lawsuit for improper purposes. For these reasons and the reasons set forth fully below, the
The Complaint asserts eighteen claims for relief in 528 paragraphs. More than two
hundred of those paragraphs purport to provide background information, only some of which
bears any relation to the claims at issue. Despite the prolixity and disorganization of Plaintiffs
Complaint, the allegations and claims are fairly straightforward. Distilled to essentials, Plaintiffs
claim that they acquired intellectual property rights in what they call the ROC Family of
Marks through an Asset Purchase Agreement (the APA) and other agreements between
various parties to this suit. But despite these agreements, Plaintiffs claim, some or all of the
activities constituting trademark infringement, unfair competition, and other related, duplicative
claims.
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Despite its length, the Complaint lacks any allegations that describe Mr. Carters
purported involvement in the alleged infringement and anticompetitive behavior. Although the
Complaint extensively details Mr. Carters involvement in creating the so-called ROC Family
of Marks and building a surrounding business around those marks, the Complaint does nothing
to suggest that Mr. Carter was personally involved in any of the activities forming the basis of
their claims. Rather, the crux of Plaintiffs claims against Mr. Carter appears to be he owns
and/or controls several companiesROC NATION Apparel Group (RNAG), Roc Apparel
Group, LLC (RAG), Roc Nation, LLC (RNLLC), and Paper Planes IP Holdings, LLC
(Paper Planes)that allegedly carried out the activities forming the basis of Plaintiffs claims.
But under well-established New York law, a persons mere status as an owner, officer, or
director of a company, without more, is an insufficient basis to hold him individually liable for
actions taken by the company. Plaintiffs attempt to use Mr. Carter and his celebrity status to
personal liability for corporate acts, many of Plaintiffs claims against Mr. Carter fail to state
cognizable claims. For these reasons, set forth in greater detail below, Mr. Carter respectfully
requests that this Court dismiss all claims in the Complaint asserted against him.
FACTUAL BACKGROUND
The prolixity of Plaintiffs Complaint and the inclusion of largely irrelevant background
material make it difficult to discern the acts that Plaintiffs contend form the basis of each of their
claims for relief. This difficulty is compounded by Plaintiffs frequent attempts at group
pleading, that is, grouping various corporate and individual defendants together, sometimes
sometimes referring to them in the disjunctive, using and/or rather than attribute conduct to a
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specific individual or entity. As such, it is unclear which defendant, or defendants, are alleged to
Plaintiffs essentially allege that their trademark rights in what they refer to as the ROC
Family of Marks were infringed. Plaintiffs claim to have acquired their rights in these marks
through a series of contracts and agreements.. However, the trademark infringement claims,
Counts I through VIII of the Complaint, are not asserted against Mr. Carter, but against various
corporate defendants including, with some variation for each count, RNAG, RAG, and RNLLC.
With respect to Mr. Carter, Plaintiffs allege that he controls directly or indirectly RNLLC
and/or RNAG and/or RAG and/or COS and/or Paper Planes Holdings. (Complaint at 20. A
copy of the Complaint is annexed to the accompanying Declaration of Jordan W. Siev, dated
October 27, 2017, as Exhibit A). Only five counts in the Complaint are directed to Mr.
NYGBL 349 and 350), Count XIV (Tortious Interference with Contract), and Count XV
With respect to the unfair competition claim, Plaintiffs allege that [b]y marketing,
apparel products, Defendants (as a group, again without distinguishing between them)
misappropriated the fruits, labors, and expenditures of the Plaintiffs. (Id. at 399.) RNAG,
RAG, RNLLC, and Paper Planes are further alleged to have attempted to convert the goodwill,
fruits, and labors through commingling the ROC Family of Marks with another mark called
the Paper Plane Mark. (Id. at 401.) Plaintiffs do not allege, anywhere in the Complaint, that
Mr. Carter was personally involved in any of the alleged misconduct, namely, the marketing,
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commingling the Paper Plane mark. Instead, the commingling activities are described in the
Complaint as actions taken by RNAG, RAG, RNLLC, and/or other John Doe entities owned or
controlled by the Roc Defendants, which by definition (in the Complaint) includes Mr. Carter.
(Id. at 103.) Plaintiffs unjust enrichment and NYGBL 349 - 350 claims are premised on
similar allegations and conduct. (See generally, id. at 415-445.) Plaintiffs claims against Mr.
Carter apparently rest, then, on his alleged direct or indirect ownership or control of these
The tortious interference claims, Counts XIV and XV, are only slightly more detailed. In
Count XIV, Plaintiffs allege that Mr. Carter had knowledge of the various agreements
concerning the ROC Family of Marks, owned or controlled RNAG and/or RNLLC directly or
indirectly, was involved in negotiating two of those agreements, and induced one of his
companies that he controls directly or indirectly to enter into some unidentified dealings with
either Defendant MLB or Defendant New Era. (Id. at 463-469.) By authorizing or allowing
the [infringing apparel] to be born and the [infringing apparel] to be sold at his direction or
approval, Plaintiffs claim that Mr. Carter tortiously interfered with various agreements between
the parties. (Id. at 471.) In Count XV, Plaintiffs revert back to their naked ownership and
control allegations, claiming that the defendantsagain, it is not clear which onesmade
fraudulent misrepresentations to Defendant New Era to convince New Era to enter into a contract
with RNLLC, RAG, Paper Plane Holdings, Carter, RNAG, and/or John Does to distribute, sell,
For the reasons stated below, none of Plaintiffs allegations state sufficient claims against
Mr. Carter, and the counts asserted against him should be dismissed.
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LEGAL STANDARD
To survive a motion to dismiss under Rule 12(b)(6), a complaint must contain sufficient
factual matter, accepted as true, to state a claim to relief that is plausible on its face. Ashcroft v.
Iqbal, 556 U.S. 662, 678 (2009) (internal quotation omitted). Although these factual allegations
provide the grounds of his entitle[ment] to relief is not satisfied by pleading mere labels and
conclusions. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). Even though factual
the elements of a cause of action does not satisfy this standard. Id.; Ruotolo v. City of N. Y., 514
F.3d 184, 188 (2d. Cir. 2008). If a plaintiffs allegations do not nudge[] his claim across the
line from conceivable to plausible, the complaint must be dismissed. Bell Atl. Corp., 550
U.S. at 570. Determining whether a complaint states a plausible claim for relief requires a
context-specific analysis where the court should draw on its judicial experience and common
sense. But where the well-pleaded facts do not permit the court to infer more than the mere
possibility of misconduct, the plaintiff has not shown that he is entitled to relief. Ashcroft, 556
U.S. at 679.
ARGUMENT
I. Plaintiffs Allegations Do Not State Valid Claims With Respect To Mr. Carter And
Should Be Dismissed Pursuant To Rule 12(b)(6).
It is well-settled that, under New York law, an individual actor can only be held
personally responsible for a companys tortious acts if the plaintiff pleads that the corporate
officer directly participated in the alleged misconduct. Hutter v. Countrywide Bank, N.A., 41
F. Supp. 3d 363, 374 (S.D.N.Y. 2014); Reynolds v. Lifewatch, Inc., 136 F. Supp. 3d 503, 526
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(S.D.N.Y. 2015). To be personally liable for a companys torts, the owner, officer, or director
must direct, authorize, or in some meaningful sense participate actively in the assertedly
wrongful conduct. PetEdge, Inc. v. Garg, 234 F. Supp. 3d 477, 493-94 (S.D.N.Y. 2017).
Unfair competition is treated as a tort, and individual liability for corporate unfair competition
will lie only if the officer is a moving, active conscious force behind the wrongful acts.
Monsanto Co. v. Haskel Trading, Inc., 13 F. Supp. 2d 349, 354 (E.D.N.Y. 1998).
Reynolds is particularly instructive here. In that case, a consumer sued a medical alert
device company and several of its officers, asserting claims for deceptive trade practices, fraud,
and intentional misrepresentation. 136 F. Supp. 3d at 508-509. In particular, with respect to the
corporate officers, the plaintiff alleged that they had personal involvement in the corporate
business activities, were involved in the decision making relating to the improper, deceptive,
and/or fraudulent activity challenged in the case, controlled the day-to-day operations of the
company, including sales and marketing, and were aware of should have been aware of the
deceptive and improper conduct at issue in the suit. Id. at 526. These allegations, the court held,
were only conclusory and insufficient to establish individual participation in the challenged
corporate conduct. Id. Personal participation, such as individually making false statements
establish individual liability for corporate misconduct. Id. (collecting cases). See also Natl
Gear & Piston, Inc. v. Cummins Power Sys., LLC, 975 F. Supp. 2d 392, 401 (S.D.N.Y. 2013)
(plaintiffs failure to allege any unlawful conduct separate from defendants alleged indirect
of law, are far more detailed than the allegations against Mr. Carter here. As noted above, the
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most detailed allegations against Mr. Carter with respect to the conduct at the heart of Plaintiffs
unfair competition claim merely state that he owns or controls RNAG, RNLLC, RAG, and/or
Paper Planes. (See, e.g., Complaint at 20; 182-186; 283.) Plaintiffs do not allege that Mr.
Carter individually, meaningfully participated in any infringing conduct. Plaintiffs do not allege
that any infringement, misappropriation, dilution, or commingling was done at Mr. Carters
direction, or that Mr. Carter was personally involved in any of that activity. The conclusory
allegation that Mr. Carter owns or controls several of the corporate defendants alleged to have
committed wrongful acts is simply not enough to subject him to personal liability for that
activity. Courts applying New York law have repeatedly affirmed that these types of allegations
are not enough to satisfy even the Rule 8(a) plausibility pleading standard. Reynolds, 136 F.
Supp. 3d at 526; PetEdge, Inc., 234 F. Supp. 3d at 493-94; Shostack v. Diller, No. 15-CV-2255
(GBD) (JLC), 2015 WL 5535808, at *5 (S.D.N.Y. Sept. 16, 2015) (dismissing claims where
plaintiff failed to plead any facts to demonstrate that the individual defendants themselves
engaged in the actions of which he complains, directed or authorized them, or were even aware
of them.) Count IX, Plaintiffs unfair competition claim against Mr. Carter, suffers from these
B. Plaintiffs Unjust Enrichment Claim Fails Because It Does Not State A Claim
Against Mr. Carter In His Individual Capacity, And Is Duplicative Of
Plaintiffs Tort Claims.
Plaintiffs unjust enrichment claim fails for similar reasons. However, because unjust
enrichment is not a tort, but a quasi-contractual claim, the type of individual participation a
plaintiff is required to plead is even greater, namely akin to a piercing of the corporate veil
analysis. See United States v. Nagelberg, 772 F. Supp. 120, 123-24 (E.D.N.Y. 1991) (applying
New Yorks veil piercing law to determine that individual defendants could be held personally
liable for unjust enrichment of a corporation); Usov v. Lazar, No. 13 Civ. 818 (RWS), 2013 WL
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3199652, at *4-5 (S.D.N.Y. June 25, 2013) (applying veil-piercing test to unjust enrichment
claim). Under New York law, to pierce the corporate veil, the plaintiff must allege and prove,
among other things, that the owner has exercised such control that the corporation has become a
mere instrumentality of the owner. Freeman v. Complex Computing Co., 119 F.3d 1044, 1052
(2d Cir. 1997) (citation omitted); Nagelberg, 772 F. Supp. at 123-24 (corporate veil may be
pierced upon a showing of complete control by the dominating [party] that leads to a wrong
against third parties.) In addition, the individual person, apart from the corporate entities he
owns, must personally benefit from the challenged action separate and apart from benefit to
themselves in their corporate capacities. See Versatile Housewares & Gardening Sys., Inc. v.
SAS Grp., Inc., No. 09-CV-10182(SHS), 2016 WL 4064036, at *5-6 (S.D.N.Y. July 29, 2016)
(unjust enrichment claim against individual actor failed without evidence that he personally
benefitted from the corporate activities); Am. Med. & Life Ins. Co. v. CrossSummit Enters., Inc.,
27 Misc. 3d 1210(A), at *4-5 (N.Y. Sup. Ct. Apr. 1, 2010) (dismissing unjust enrichment claim
where there was no evidence individual defendants acted in anything other than their corporate
capacities).
Plaintiffs have not alleged that Mr. Carter even participated in any of the infringing,
commingling, or dilution activity that forms the basis of their unjust enrichment claim, much less
allege that Mr. Carter dominated RNAG, RNLLC, or RAG in such a manner as to justify
disregarding the corporate form here. Plaintiffs Complaint is entirely devoid of any allegations
that Mr. Carter ever acted outside the scope of his corporate capacity. In addition, although
Plaintiffs allege in a conclusory manner that all Defendants unjustly retained some vague benefit
in the form of increased goodwill and value of corporate shares, none of these allegations state
that Mr. Carter personally benefited from any allegedly wrongful activity, rather than an indirect
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benefit by virtue of his positions and ownership interests in the corporate defendants. As such,
Even if Plaintiffs allegations were sufficient to establish a basis for Mr. Carters
individual liability, the unjust enrichment claim must be dismissed for an additional reason. As
the Reynolds court recognized, an unjust enrichment claim cannot survive where it simply
duplicates, or replaces, a conventional contract or tort claim. 136 F. Supp. 3d at 524 (quoting
Koenig v. Boulder Brands, Inc., 995 F. Supp. 2d 274, 290 (S.D.N.Y. 2014)). Unjust enrichment,
under New York law, is available only in unusual situations when, though the defendant has not
obligation running from the defendant to the plaintiff. Weisblum v. Prophase Labs, Inc., 88 F.
Supp. 3d 283 (S.D.N.Y. 2015) (quoting Corsello v. Verizon N.Y., Inc., 18 N.Y.3d 777, 790, 967
N.E.2d 1177 (N.Y. 2012)). Unjust enrichment claims cannot be used as a backstop, or to remedy
unfair competition, and statutory NYGBL claims. It is based on the same conduct as Plaintiffs
other claims. (See Complaint at 415) (incorporating by reference all preceding allegations,
which include the background allegations and the trademark and unfair competition-specific
pleadings). In the unjust enrichment claim, Plaintiffs seek recovery based on the unlawful acts
of the defendants, and the retention of monies and goodwill gained through deceptive business
practices, infringement, acts of deceit, and the claims alleged herein. (Id. at 421) (emphasis
added). Plaintiffs own pleading thus expressly concedes that the unjust enrichment claim is
duplicative, merely another bite at the apple, in an attempt to recover for the same allegedly
unlawful acts that underlie their other substantive claims. Unjust enrichment is not a catchall
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cause of action to be used when others fail. Greene v. Gerber Prods. Co., --- F. Supp. 3d ---,
Nos. 16-CV-1153 (MKB), 17-CV-93 (MKB), 2017 WL 3327583, at *27 (E.D.N.Y. Aug. 2,
2017) (citing Corsello, 18 N.Y.3d at 790). New York law is clear that this duplicative pleading
is not appropriate, and Courts applying New York law have dismissed unjust enrichment claims
in similar circumstances. See Reynolds, 136 F. Supp. 3d at 524-25; Corsello, 18 N.Y.3d at 790;
Goldemberg v. Johnson & Johnson Consumer Cos., 8 F. Supp. 3d 467, 483-84 (S.D.N.Y. 2014).
C. Count XI Does Not State A Cognizable Claim Under NYGBL 349 - 350
And Should Be Dismissed.
Plaintiffs deceptive trade acts and practices count also fails to state an actionable claim
for an additional reason as well.1 The type of acts and practices cognizable under New York
General Business Law 349 and 350 are those that injure consumers or cause harm to the
public interest. Specifically, plaintiffs must allege that a defendant has engaged in (1)
consumer-oriented conduct that is (2) materially misleading and that (3) plaintiff suffered injury
as a result of the allegedly deceptive act or practice. Kaplan, Inc. v. Yun, 16 F. Supp. 3d 341,
352 (S.D.N.Y. 2014) (citation omitted). In general, trademark infringement and related unfair
competition allegations are not cognizable under these sections of the NYGBL. As the Kaplan
court noted, New York courts have routinely dismissed trademark claims brought under
Sections 349 and 350 as being outside the scope of the statutes because general trademark
1
Even assuming, arguendo, that Count XI does state a valid deceptive trade practices claim, it
must still be dismissed against Mr. Carter for the same reasons articulated above with respect to
Plaintiffs unfair competition claim. See Reynolds, 136 F. Supp. 3d at 525-27 (dismissing
various NYGBL claims asserted against individual defendants, including a claim under NYGBL
349 and 350, where plaintiff failed to plead in a non-conclusory fashion that the individual
defendants themselves meaningfully participated in the challenged activity). Because Plaintiffs
have not alleged that Mr. Carter personally participated in or directed any of the infringement,
misappropriation, commingling, or dilution activities that form the basis of the deceptive trade
practices act claim, Count XI should be dismissed.
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infringement does not pose the type of significant risk of harm to the public health or interest
that the statute was designed to address. Id. (collecting cases) (quoting DePinto v. Ashley
Scott, Inc., 222 A.D.2d 288, 289 (N.Y. App. Div. 1995)). In order to be cognizable under
NYBGL 349 and 350, a plaintiff must allege a specific and substantial injury to the public
not enough. Nomination Di Antonio E Paolo Gensini S.N.C. v. H.E.R. Accessories, Ltd., No. 07
Plaintiffs Complaint suffers from the same failures and merits dismissal for the same
reasons as addressed in Kaplan and Nomination Di Antonio. In Count XI, Plaintiffs allege that
commingled the ROC NATION Mark with the Paper Plane Mark.
(Complaint at 427-429.) This conduct, Plaintiffs allege, is likely to mislead consumers and
the general public in a material way by misrepresenting that the allegedly infringing products
were genuine authorized goods associated with the ROC Family of Marks and came from a
common source. (Id. at 434, 437.) This is precisely the type of harm implicated in every
trademark infringement claim, and which has been repeatedly found insufficient to sustain a
deceptive trade practices claim under New York law. Accordingly, Count XI should be
dismissed.
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Plaintiffs allegations in Count XIV are insufficient to justify subjecting Mr. Carter to
personal liability for tortious interference with contract. Under New York law, a claim for
tortious interference requires the existence of a valid contract between plaintiff and a third party,
breach of the contract without justification, actual breach of the contract, and damages resulting
therefrom. IMG Fragrance Brands, LLC v. Houbigant, Inc., 679 F. Supp. 2d 395, 405-06
(S.D.N.Y. 2009) (internal quotation omitted). There are some notable contours to this general
statement of law, two of which are relevant here. First, where the defendants have an economic
interest in the contract at issue, the plaintiff must adequately allege that the defendant either
acted maliciously, fraudulently, or illegally. Id. at 406. Second, claims for tortious interference
are not generally actionable against officers of the company, unless they are acting wholly
outside the scope of their authority for purely personal gain. Id. at 407-08. A heightened
pleading standard applies to these individual liability claims. Id.; see also Rockland Exposition,
Inc. v. Alliance of Auto. Serv. Providers of N.J., 894 F. Supp. 2d 288, 338 (S.D.N.Y. 2012).
Both contours apply here, and separately doom Plaintiffs claims against Mr. Carter. The
crux of the allegations in Count XIV are that Mr. Carter, despite knowledge of Iconixs purchase
of the Roc Family of Marks in the APA, tortiously interfered with the various agreements
between the parties by authorizing or allowing infringing products to be created and sold.
(Complaint at 469-472.) As Plaintiffs expressly allege in their Complaint, Mr. Carter was
the direct or indirect beneficial owner[] of Rocawear Licensing LLC, one of the parties to the
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APA. (Id. at 464.) Plaintiffs allege further that Mr. Carter owned or controlled RNAG and/or
RNLLC directly or indirectly, and that Paper Plane Holdings is under common control and/or
beneficial ownership with RNAG and/or RNLLC. (Id. at 465-466.) By virtue of Mr.
Carters alleged ownership of RNAG and RNLLC, Mr. Carter is not a stranger to any of the
agreements with which he is alleged to have tortiously interfered. In order to plead a viable case
against Mr. Carter, then, Plaintiffs must plead that Mr. Carter acted maliciously, fraudulently, or
At most, Plaintiffs allegations state that Mr. Carter, despite knowing that neither RNLLC
nor RNAG allegedly had rights to the ROC NATION Marks at issue in this suit, allowed or
authorized those companies to enter into contracts and/or sell infringing products. This falls well
short of an allegation of malice, fraud, or illegal conduct necessary to state a sufficient claim in
these circumstances. For example, in IMG Fragrance Brands, LLC, the plaintiff similarly failed
to allege malice, fraud or illegal conduct where plaintiff claimed that defendants acted without
justification. 679 F. Supp. 2d at 406. There, none of the plaintiffs conclusory statements of
fraud met Rule 9(b)s heightened particularity standard, and therefore could likewise not support
a tortious interference claim. Id. And finally, the plaintiffs failed to allege illegal activity
because the defendants actions therewhich also involved alleged Lanham Act trademark
claimswere really simple breaches of contract. Id. at 406-407. Here, Plaintiffs allegations
against Mr. Carter fall short of even those at issue in IMG. Plaintiffs threadbare statements that
Mr. Carter tortiously interfered with contracts simply cannot satisfy Rule 8(a) or Rule 12(b)(6).
But even if Plaintiffs allegations could satisfy the malice/fraud/illegal activity standard,
they still do not establish that Mr. Carter can be held personally liable for tortious interference.
In Rockland Exposition, the plaintiffs tortious interference claim against an individual defendant
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was dismissed because it failed to allege that the acts of the corporate officers [or directors]
were done with the motive for personal gain as distinguished from gain to their corporations
and were calculated to impair the plaintiffs business for the defendants profit. 894 F. Supp.
2d at 338 (internal quotation omitted). See also IMG Fragrance Brands LLC, 679 F. Supp. at
408 (tortious interference claim dismissed for failure to claim that the individual defendant
acted to interfere with the contract for her own personal gain). Plaintiffs here have likewise
failed to allege any facts to satisfy the heightened standard applied to individual defendants
nothing in the Complaint even suggests that Mr. Carter engaged in any of the alleged activities
for his personal gain, or that he was acting wholly outside the scope of his authority, as the law
requires. Id. at 407-08. Because Plaintiffs tortious interference claim suffers from various
deficiencies such that it fails to state a valid claim, Count XIV should be dismissed.
ii. Because Mr. Carter cannot be held personally liable for any
independent tort, Plaintiffs fail to state a claim for tortious
interference with economic advantage.
Plaintiffs second tortious interference claim against Mr. Carter is similarly deficient. A
claim for tortious interference with prospective economic advantage is subject to an extremely
high pleading standard which is more demanding than the standard for contract-based tortious
interference claim. Rockland Exposition, Inc., 894 F. Supp. 2d at 332. To state a valid claim, a
plaintiff must allege that (1) the plaintiff had business relations with a third party; (2) the
defendant interfered with those business relations; (3) the defendant acted for a wrongful purpose
or used dishonest, unfair, or improper means; and (4) the defendants acts injured the
relationship. Id. (internal quotation omitted). In general, the only type of wrongful means
that will satisfy the third element are crimes and independent torts. Id. at 332-33. Plaintiffs
claim that RNLLC, Paper Planes, RAG, RNAG, and Mr. Carter and/or other companies
controlled by Mr. Carter fraudulently misrepresented to New Era that one or more of them had
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the license rights to use, or authority to use, the ROC NATION Mark for apparel for the
purpose of inducing reliance by New Era, which usurped Plaintiffs relationship with New Era.
(Complaint at 478-481.) These allegations are, again, insufficient to subject Mr. Carter to
personal liability.
Because this type of tortious interference claim is, by definition, a tort claim, the ordinary
rules governing personal liability for corporate torts apply. As stated above in the section
addressing Plaintiffs unfair competition claim, as a general rule, individuals are not liable for
corporate torts unless they direct, authorize, or in some meaningful sense participate actively in
the assertedly wrongful conduct. PetEdge, Inc., 234 F. Supp. 3d at 493-94. But here, again,
Plaintiffs do not allege that Mr. Carter himself entered into a business relationship with New Era,
or that he himself participated in any of the alleged fraudulent misrepresentations to New Era,
and certainly have not made such allegations with the particularity required by Rule 9(b), which
Am., 415 F. Supp. 2d 423, 454 (S.D.N.Y. 2006); Wolff v. Rare Medium, Inc., 210 F. Supp. 2d
490, 499-500 (S.D.N.Y. 2002) (dismissing tortious interference claim for failure to plead
Because Plaintiffs have not satisfied the applicable pleading standards and have not pled
sufficient facts to establish that Mr. Carter can be personally liable for the acts underlying their
tortious interference claim, Count XV fails to state a plausible claim against him and should be
dismissed.
II. Plaintiffs Amended Complaint Does Not Comply With Rule 8 Pleading Standards
With Respect To Mr. Carter And Should Be Dismissed.
Although each of the claims asserted against Mr. Carter are subject to dismissal for the
individual reasons detailed above, the claims suffer from an additional common failure:
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Plaintiffs group pleading does not satisfy Rule 8 of the Federal Rules of Civil Procedure.
Throughout the Complaint, Plaintiffs make sweeping references to the Roc Defendants and the
littered with examples of this type of improper pleading practice. (See, e.g., Complaint at
Complaint provides essentially no clear allegations identifying precisely what acts Plaintiffs
Fed. R. Civ. P. 8(a) requires that a complaint contain a short and plain statement of the
claim showing that the pleader is entitled to relief. Pleadings are supposed to be simple,
concise, and direct. Fed. R. Civ. P. 8(d). Unnecessary prolixity in a pleading is generally not
tolerated, as it places an unjustified burden on the court and the party who must respond to it
because they are forced to select the relevant material from a mass of verbiage. Salahuddin v.
Cuomo, 861 F.2d 40, 42 (2d Cir. 1988) (quoting 5 C. Wright & A. Miller, Federal Practice and
Procedure 1281). Rule 8(a) requires plaintiffs to indicate clearly the defendants against which
relief is sought and the basis upon which relief is sought against the particular defendants. Am.
Sales Co. v. AstraZeneca AB, No. 10 Civ. 6062(PKC), 2011 WL 1465786, at *5 (S.D.N.Y. Apr.
14, 2011). Plaintiffs cannot lump[] all the defendants together in each claim and provid[e] no
factual basis to distinguish their conduct. Ochre LLC v. Rockwell Architecture Planning &
Design, P.C., No. 12 Civ. 2837(KBF), 2012 WL 6082387, at *6-7 (S.D.N.Y. Dec. 3, 2012).
The Complaint fails to comply with Rule 8 in each of these ways, particularly as it relates
to Mr. Carter. In order to include Mr. Carter as a defendant in this proceeding, Plaintiffs have,
for the most part, simply lumped him in with the corporate defendants, and allege that all or
some of the Defendants wronged them. Just as in Am. Sales Co., and Ochre LLC, the failure to
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distinguish the actions of the various defendants, Mr. Carter in particular, from one another
subjects their claims to dismissal. See Ochre LLC, 2012 WL 6082387, at *6-7; Am. Sales Co.,
2011 WL 1465786, at *5. Plaintiffs cannot engage in prolix and group pleading in an attempt to
force the various defendants to guess at the nature of their claims. Ochre LLC, 2012 WL
6082387, at *7 (dismissing, with prejudice, a copyright infringement action where plaintiff failed
to allege plausible facts supporting their claims or conduct by each defendant constituting
wrongful acts). Because it is impossible to decipher precisely what acts Plaintiffs attribute to
Mr. Carter, the counts of the Complaint directed against him should be dismissed in their
entirety.
CONCLUSION
For the foregoing reasons, Defendant Shawn C. Carter respectfully requests that the
Court enter an order (1) granting this motion to dismiss; (2) dismissing Counts IX, X, XI, XIV,
and XV of Plaintiffs First Amended Complaint against him with prejudice; and (3) granting
Shawn C. Carter such other and further relief as the Court deems just and proper.
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Case 1:17-cv-03096-AJN Document 74 Filed 10/27/17 Page 23 of 24
James T. Hultquist
(Pro Hac Vice forthcoming)
Lawrence E. James, Jr.
(Pro Hac Vice forthcoming)
REED SMITH LLP
10 South Wacker Drive
40th Floor
Chicago, IL 60606-7507
Telephone: (312) 207-1000
Facsimile: (312) 207-6400
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Case 1:17-cv-03096-AJN Document 74 Filed 10/27/17 Page 24 of 24
CERTIFICATE OF SERVICE
I, the undersigned attorney, hereby certify that I electronically filed the foregoing
document, on October 27, 2017 using the United States District Court for the Southern District
of New Yorks ECF System, which will send notice to all counsel of record.
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