April 18, 2012
The plaintiff claimed lost profits in the amount of approximately $5 million arising from the alleged breach of a subcontract to assist the defendant (as the prime contractor) in providing telecommunications services to the Commonwealth of Pennsylvania.
BLF removed the case to federal court, eliminated several claims on a motion to dismiss and then, after discovery, briefed and argued a motion for summary judgment. On April 18, 2012, Chief Judge Kane granted BLF’s motion, holding that (i) an early flow-down agreement between the parties incorporated certain provisions of the prime contract that barred the plaintiff’s claims, and (ii) the plaintiff had failed to establish that the defendant’s employee at issue had either the actual or apparent authority to contractually bind the defendant.
Clark Resources, Inc. v. Verizon Business Network Services, Inc. (U.S. Dist. Ct. M.D.Pa. Civ. No. 1:10-cv-1119).