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RADIO TV REPORTS, INC. v. INGERSOLL

July 25, 1990

RADIO TV REPORTS, INC., Plaintiff,
v.
PAUL INGERSOLL, Defendant



The opinion of the court was delivered by: HARRIS

 On August 14, 1989, the Court granted plaintiff's motion for partial summary judgment as to Counts II and VII of the complaint, holding that defendant both breached his duty of loyalty owed to plaintiff, his employer, and misappropriated property belonging to plaintiff. On February 5, 1990, three days before trial, plaintiff moved to dismiss Counts I, III, IV, V, and VI, on grounds that the legal issues raised in these counts were redundant. The Court granted plaintiff's motion, and a bench trial was held on February 8, 1990, to determine damages as to Counts II and VII.

 Findings of Fact

 1. Plaintiff Radio TV Reports (RTV) is a New York corporation in the business of recording, transcribing, and monitoring radio and video programming for its clients.

 2. Defendant Paul Ingersoll was employed by RTV from 1965 until August 31, 1986. From 1981 through his August 31, 1986, retirement date, defendant served as manager of RTV's Washington, D.C. office.

 3. Robert E. Lee has been employed by RTV's Washington, D.C. branch since 1969. On September 1, 1986, he became the branch manager and is currently so employed. His duties include supervision of staff, execution of contracts, and general office supervision. As such, he is familiar with RTV's fixed costs and overhead.

 4. From 1969 through 1986, Lee performed services pursuant to media monitoring contracts procured from the United States Department of Defense (DOD). During that time period, RTV had procured the DOD contract every year, with the exception of one year.

 5. In 1981, RTV, under defendant's management, bid on and won a DOD contract for providing audio and video tapes of news broadcasts. RTV performed satisfactorily under that contract from 1981 through August 1986.

 6. In July 1986, the DOD solicited bids for a new media services contract for the period October 1, 1986, through September 30, 1987, with options for four subsequent years. The new contract required that the contractor provide, among other services, (1) verbatim recording of news broadcasts on nine radio stations and twelve television stations, 24 hours a day, (2) publication of a daily newsletter based on significant news items of interest to DOD, taken from the nine radio stations and twelve television stations above, and (3) typewritten verbatim transcripts of news broadcasts identified and requested by DOD. *fn1"

 7. During July and August 1986, defendant decided to form his own media monitoring business under the trade name Transmedia. Transmedia was wholly owned by the defendant.

 8. On August 29, 1986, RTV submitted its bid for the DOD contract. Lee had taken the handwritten figures from Plaintiff's Exhibit 1 and typed them in at defendant's direction. He had then delivered it to the DOD. *fn2"

 10. Transmedia did, in fact, win the contract, and performed services under it until June 1987, when Transmedia went out of business. RTV offered a new bid for the contract in May 1987. See Plaintiff's Exhibit 2. RTV won the contract, and performed services under it from June 2, 1987, to September 30, 1987. *fn3" Thereafter, the DOD issued five succeeding purchase orders to the plaintiff, obligating plaintiff to continue providing services during the period October 1, 1987 through September 30, 1988. *fn4" See Plaintiff's Exhibits 3-7.

 11. On August 9, 1988, the DOD again requested bids on a media monitoring contract. RTV bid on and won the contract for the period October 1, 1988 to September 30, 1989, with two option years. *fn5 ...


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