You are on page 1of 19

FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO.

151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

SUPREME COURT OF THE STATE OF NEW YORK


COUNTY OF NEW YORK
________..-----------------------------------------------------X - — —
——

L.I. CITY VENTURES LLC, d/b/a MODERN : Index No. 151148/2018


SPACES, :

Plaintiff, : AMENDED
: VERIFIED COMPLAINT
-against- :

URBAN COMPASS, INC. d/b/a COMPASS, :


and JESSICA MElS, :
Defendants. :
__________________--------------------_____________------------X

«'»'' i' r' ("Plaintiff"


Plaintiff L.I.
... City Ventures LLC, d/b/a Modern Spaces or "Modern Spaces"),

by its attorneys. Warshaw Burstein, LLP, alleges as and for its Amended Verified Complaint

against defendants Urban Compass, Inc. d/b/a Compass ("Compass") and Jessica Meis ("Meis")

"Defendants"
(collectively, the "Defendants"), as follows:

NATURE OF THE ACTION

1. This case represents the latest in a long string of lawsuits against the real estate

startup Compass, whose main corporate strategy appears to willfully and unlawfully rely on

"poaching" Spaces'
undermining its competition by unlawfully Modern real estate agents while

Spaces'
simultaneously misappropriating Modern confidential and proprietary information to

gain an unfair advantage in a competitive market.

2. Court intervention is necessary to prevent Compass from stealing Modern Spaces

ol'
business through the unlawful misappropriation of Plaintiff's trade secrets. In January 2018,

—
Meis-who was a real estate sales person affiliated with —
Plaintiff-terminated her
previously

Spaces'
relationship with Modern Spaces. Thereafter, Meis emailed Modern proprietary

information-including compilations of buyers and sellers of real estate-to her personal email.

Spaces'
After misappropriating Moderns proprietary information, Meis utilized it in her new role

,' lU(lnsg > t 1

1 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

as a real estate agent at Compass-a — competitor to Modern Spaces. Upon information and

Spaces'
belief, Compass encouraged Meis to misappropriate Modern proprietary information and

I'
trade secrets for its own financial gain.

ol'
3. Now that Defendants misconduct has been uncovered (although the full extent of

their wrongdoing has yet to be discovered). Modern Spaces seeks to hold Defendants

accountable. Accordingly, Modern Spaces seeks to recover damages to compensate it for (a)

business that has been improperly diverted to Defendants through their unfair competition, (b)

misappropriation of trade secrets under both state and federal law, including a reasonable royalty

Defendants'
for continued possession of Plaintiff s trade secrets, exemplary damages and

attorneys' Spaces'
fees, (c) unlawful interference with Modern exclusive listing agreements. and

(d) damage to its public reputation and goodwill.

4. Additionally, a temporary restraining order, a preliminary injunction, and a final

Spaces'
injunction should be granted proscribing Defendants from further exploiting Modern

confidential information and putting an immediate halt to the substantial and irreparable harm

and damages Defendants have caused, and continue to cause Modern Spaces as a result of their

unlawful activities.

THE PARTIES

5. Plaintiff Modern Spaces is a corporation duly organized and existing under the

laws of the State of New York, with a business address located at 47-42 Vernon Boulevard, Long

Island City, New York 1 1 101.

'
,l033553 2 I

2 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

6. Defendant Compass is a corporation organized under the laws of the State of

Delaware, with a principal place of business at 90 Fifth Avenue, 3rd Floor, New York, New

York 10011 and which does business in New York County, New York.

7. Compass is a real estate brokerage firm that operates across the country. It has

offices in eight states.

8. In November 2017, CEO Robert Reffkin stated in a presentation, "Vision for Real

Future,"
Estate's that Compass's goal was to have a 20 percent market share in the top twenty

markets in the United States by 2020. He also announced that Compass was creating a Customer

Relationship Management system ("CRM") which would incorporate proprietary information

from brokers across the country into an integrated platform and database. Compass

unquestionably provides services utilized in interstate commerce.

9. Upon information and belief, Defendant Meis is an individual, residing in the

State ofNew York.

JURISDICTION AND VENUE

10. Jurisdiction is proper pursuant to C.P.L.R. §§ 301 and 302(a) in that, among other

things, Defendants have all transacted business and committed tortious acts within the State of

New York.

11. Venue is proper pursuant to C.P.L.R. §§ 501 and 503 in that at least one of the

parties resides or has its principal place of business within New York County. New York.

'
,)(I33553 2 ) 3

3 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

FACTUAL ALLEGATIONS

Spaces'
aces'
A. Modern S Business

12. Modern Spaces is an independently-owned real estate brokerage firm that

specializes in residential and commercial sales and leasing, as well as project development and

marketing in New York City.

13. Founded and developed in Long Island City, Modem Spaces has invested in

community growth through participation in local events, fundraisers, and community service.

Since its launch in 2008, Modern Spaces has grown to capture a large percentage of the

residential market share in Long Island City and has been credited with the transformation and

growth of the community.

14. Modern Spaces devotes, and has devoted, substantial time. energy and resources

into building a valuable brand and goodwill by nurturing relationships with clients. developers,

and property owners.

15. While Modern Spaces has devoted substantial efforts to cultivating its business

contacts in the New York City Metro area. it provides a service used within interstate commerce.

Specifically, Modern Spaces markets. sells, and leases real estate properties to potential buyers

of'
or tenants who reside or operate outside of New York. Indeed, many buyers of real estate

procured by Modern Spaces reside out-of-state.

B. Jessica Meis's Association With Modern Spaces

16. Meis began her association with Modern Spaces as a real estate agent in

November 2017, executing a formal Independent Contractor Relationship Agreement with

Modern Spaces in July 2017 (the "Agreement").

', ill38SS3 2 i

4 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

17. The Agreement is a valid and enforceable contract that imposed upon Meis

certain contractual obligations, including, without limitation. the obligation to adhere to the

requirements of New York Real Property Law Article 12-A.

18. The Agreement also required Meis to engage in fair and honest dealings, and to

comply with the laws of the New York Department of State, the Real Estate Board Of New York

("REBNY"), the RLS Universal Co-brokerage Agreement, and the REBNY Code of Ethics.

19. During her time with Modern Spaces, Meis was engaged as a real estate sales

agent.

20. While working as a real estate sales agent for Modern Spaces. Meis was privy to

valuable, non-public information relating to clients. listings. business operations. strategies,

assets and the financial affairs of Modern Spaces. Significantly, this included non-public

information about Modern Spaces present and future projects and developments-highly

confidential information that is valuable to a competitor.

21. Meis also had access to highly confidential and proprietary information, including

Spaces'
Modern Customer Management System ("CMS") database, landlord listings, developer

information. and leads generated by Modern Spaces. These client and owner lists contained

valuable, non-public information that was developed or compiled by Modern Spaces over years

of diligence, hard work, and considerable expense.

22. Modern Spaces maintains this confidential and proprietary information on a

password-protected database. Only authorized employees and licensed agents with login

credentials are able to access this database, and when an authorized user leaves Modern Spaces.

his or her login credentials are immediately disabled.

'l033~53 2 ' 5

5 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

Spaces'
23. To further protect Modern valuable confidential and proprietary

information. the Agreement contained several provisions directly limiting Meis's access and use

of this information.

24. The Agreement set forth that all printed, written or computerized information

of'
relating to the business of Modern Spaces, including, without limitation, open listings, exclusive

listings, co-exclusive listings. co-brokers listings. names. addresses and telephone numbers

pertaining to or in connection with any such listings, is deemed the confidential and proprietary

Information"
information of Modern Spaces (the "Proprietary Information").

25. The Agreement. inter alia. further provided that, upon termination of Meis's

association with Modern Spaces, she was (a) obligated to return all written materials, copies and

notes relating to the Proprietary Information, and (b) prohibited from utilizing or disclosing this

Proprietary Information to others without written permission from Modern Spaces.

26. In addition, the Agreement provided that Meis would not directly or indirectly

solicit any current or former employee, independent contractor, broker or salesperson of Modern

Spaces for employment at a competitor.

C. Compass's Systemic Pattern of Exploitation and Unfair Competition

27. Meis terminated her affiliation with Modern Spaces on January 22, 2018. and

announced that she planned on working for Compass.

28. Upon information and belief. Defendants conspired to steal and/or unlawfully

Spaces'
appropriate Modern confidential information and Proprietary Information to compete

unfairly with Modern Spaces.

( Ju)3sC3 '> ~( 6

6 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

29. Upon information and belief, Compass and Meis misappropriated. copied. and

Spaces'
otherwise took Modern confidential information and Proprietary Information, in direct

breach of the Agreement.

30. In the days prior to Meis's resignation, she emailed to her personal account

Spaces'
dozens of files from Modern networks and CMS system including proprietary customer

and listing data, as well as internal company documents and forms. Specifically, on January 14,

Spaces'
2018, Meis sent at least 30 emails from her Modern email

(jessica@modernspacesnyc.com) to her personal email address (jessicameis@gmail.com), each

Spaces'
containing multiple attachments that contained Modern Spaces confidential or proprietary

information. In particular, Meis emailed to herself a spreadsheet that included a list of potential

buyers (file named "Buyers List.xlsx). She also emailed to herself CMS data on rentals and sales

(file name "CMS Data.xlxs).

31. On January 16, 2018, Meis emailed her independent contractor agreement that she

Spaces'
had entered into with Modern Spaces, from her Modern Spaces email to her personal email.

Meis then provided a copy of the agreement to agents of Compass. Thus, Compass had

knowledge of the terms of the Agreement between Meis and Modern Spaces.

32. On January 20, 2018, Meis sent at least another 22 emails from her Modern

Spaces' Spaces'
email to her personal email containing Modern confidential or proprietary

information, including lists of clients, client names, and Google Contacts.

33. Additionally, on January 20, 2018, Meis emailed to herself several files that were

the exclusive listing agreements between Modern Spaces and various owners of property. Meis

of'
provided copies of these exclusive listing agreements to agents of Compass, including general

counsel for Compass.

I 03355322 )i
(il033553 7

7 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

34. Upon information and belief, the theft of competitor listings and unethical

ol' competitors'
solicitation of real estate agents and employees is part of an organized and

"poach"
-poach" competitors'
deliberate scheme by Compass to agents and employees and

misappropriate their trade secrets and confidential information.

35. In addition to inducing Meis to breach her Agreement with Modem Spaces, upon

Spaces'
information and belief, Compass blatantly misappropriated and stole Modern Spaces proprietary

materials, including marketing photographs. Consistent with Compass s disregard for fair and

Spaces'
ethical business practices, Compass has taken Modern listing photographs-paid for.

and owned by, Modern —


Spaces-and posted them on its website. A screenshot of Compass's

Spaces'
website. showing Modern branded listing photographs, is annexed hereto as "Exhibit

A."

Spaces'
36. Upon information and belief, Compass utilized Modern confidential and

proprietary information misappropriated by Meis in its CRM system. which is an electronic

plati'orm used by Compass's brokers across the United States.

37. Upon information and belief, Compass provided Meis (and other Modern Spaces

agents) with step-by-step instructions to induce property owners to terminate their exclusive

listing agreements (the "Listine Agreements") with Modern Spaces and enter into separate

agreements with Compass to show and market those properties.

Defendants' Spaces'
aces'
D. Unlawful Actions Have Harmed Modern S Business

38. Upon information and belief, Compass is intentionally targeting Modern Spaces

and its agents in its efforts to quickly break into the Queens real estate market. Rather than

attempt to engage in lawful competition, Compass has instead engaged and recruited several

(I033c~3 2 i)
(10335532 8

8 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

Spaces' ol'
Modern agents with the intention of stealing and otherwise misappropriating Modern

Spaces'
Spaces confidential information and Proprietary Information.

39. Upon information and belief. Compass has targeted Modern Spaces to gain an

unf air competitive advantage over Modern Spaces in the Queens real estate market.

40. These unlawful and unethical actions have caused (and are expected to cause)

clients to terminate their listings with Modern Spaces, causing damage to Modern Spaces.

41. The actions of Defendants have caused damage to Modern Spaces that will only

increase as Defendants (a) use the confidential information of Modern Spaces, including, without

limitation, the Proprietary Information, to undermine Modern Spaces, and (b) lure agents and

clients away from Modern Spaces.

FIRST CAUSE OF ACTION

(Breach of Contract - Violation of Non-Disclosure Provision by Meis)

42. Plaintiff repeats and realleges the allegations contained in the foregoing

if'
paragraphs as if fully set forth herein.

43. Meis was associated with Modern Spaces as an independent contractor pursuant

to the Agreement.

44. Modern Spaces has fulfilled all of its obligations to Meis under the Agreement.

45. As set forth above, Meis has breached material terms of the Agreement by, among

Spaces'
other things, misappropriating and disclosing Modern confidential information and

Proprietary Information and using it to unfairly compete with Modern Spaces.

46. In doing so, Meis also violated the New York State. Department of State rules,

which provide, in part:

A real estate salesman shall, upon termination of his association

with a real estate broker, forthwith turn over to such broker any

} IU> ~»g 2 } 9

9 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

and all listing information obtained during his association whether


such information was originally given to him by the broker or
of'
copied from the records of such broker or acquired by the
salesperson during his association.

19 NYCRR § 175.14.

of'
47. As a result of Meis's violation thereof, and her legal obligations under the

Agreement, Modern Spaces has suffered and will continue to suffer irreparable harm.

48. As a result of Meis's breach of the Agreement. Modern Spaces has suffered. and

will continue to suffer, damages, including the loss of commission fees, business opportunities.

damage to its goodwill and otherwise, in an amount to be determined at trial.

SECOND CAUSE OF ACTION

(Tortious Interference With Contract Against Compass-The— Agreement)

49. Plaintiff repeats and realleges the allegations contained in the foregoing

paragraphs as if fully set forth herein.

50. The Agreement is a valid and enforceable contract that exists between Modern

Spaces and Meis.

of'
51. Upon information and belief, Compass had knowledge of the Agreement,

including the details of the non-disclosure provision. Specifically, Meis emailed the Agreement

Spaces'
from her Modern Spaces email to her personal email on January
.1anuary 16, 2018. Thereafter, she

shared the Agreement with agents of Compass, including general counsel for Compass.

52. Meis has materially breached the Agreement by, among other things.

misappropriating and disclosing the confidential information and Proprietary Information and

using it to unfairly compete with Modern Spaces.

53. Compass had actual knowledge of the Agreement between Modern Spaces and

Meis.

1[os3CCS» 10

10 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

54. Compass tortiously interfered in the contractual relationships between Modern

Spaces and Meis by, among other things, directing. encouraging and inducing her to breach her

contractual obligations to Modern Spaces.

55. As a result of Compass's tortious interference in the contractual relationships

between Modern Spaces and Meis, Modern Spaces has suffered, and will continue to suffer,

irreparable harm.

56. As a result of Compass's tortious interference, Modern Spaces has suffered

damages in an amount to be determined at trial.

57. Compass's actions were committed knowingly, willfully and in conscious

Spaces'
disregard of Modern rights. Accordingly, Modern Spaces is entitled to recover punitive

damages in an amount to be determined at trial.

THIRD CAUSE OF ACTION

(Tortious Interference With Contract Against Compass-The— Listing Agreements)

58. Plaintiff repeats and realleges the allegations contained in the foregoing

paragraphs as if fully set forth herein.

59. The Listing Agreements are valid contracts that exist between Modern Spaces and

property owners.

Spaces'
60. Upon information and belief, Compass had knowledge of Modern Listing

Agreements when it hired Meis. who had access to and had been showing the properties for

Modern Spaces. Specifically, Meis emailed some of the exclusive listing agreements from her

Modern Spaces email address to her personal email address. Meis then provided copies of those

agreements to agents at Compass, including general counsel for Compass.

' l()33'>3 2 ) ll

11 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

61. Pursuant to Compass's written instructions, Meis induced the owners of the

properties to terminate Listing Agreements with Modern Spaces and enter into separate

agreements with Compass.

62. The actions of Compass have caused such owners to breach such Listing

Agreements with Modern Spaces.

63. The rules of the New York Department of State, Division of Licensing Services

provide that:

No real estate broker shall negotiate the sale. exchange or lease of

any property directly with an owner or lessor if he knows that such

owner, or lessor, has an existing written contract granting


exclusive authority in connection with such property with another
broker.

19 NYCRR § 175.8.

Spaces'
64. Compass knowingly and intentionally interfered with Modern exclusive

listing contracts. in direct violation of 19 NYCRR § 175.8.

65. Compass's interference with the Listing Agreements has caused Modern Spaces

to suffer damages in an amount to be determined at trial.

66. Compass's actions were committed knowingly, willfully and in conscious

Spaces'
disregard of Modern rights. Accordingly. Modern Spaces is entitled to recover punitive

damages in an amount to be determined at trial.

FOURTH CAUSE OF ACTION

(Trade Secret Misappropriation Under the Defend Trade Secrets Act, 18 U.S.C. § 1836)

67. Plaintiff repeats and realleges the allegations contained in the foregoing

paragraphs as if fully set forth herein.

( ] 0 >35s3 '? 1'2

12 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

68. Upon information and belief, Defendants have violated the Defend Trade Secrets

Act of 2016. 18 U.S.C. § 1836, et seq (the "DTSA"), by misappropriating trade secrets from

Modern Spaces for services used in, or intended for use in. interstate or foreign commerce.

69. The DTSA defines trade secret as "all forms and types of financial, business,

scientific, technical, economic, or engineering information, including patterns, plans,

compilations, program devices, formulas, designs, prototypes, methods, techniques. processes.

procedures, programs, or codes, whether tangible or intangible. and whether or how stored,

compiled, or memorialized physically, electronically, graphically, photographically, or in writing

if (A) the owner thereof has taken reasonable measures to keep such information secret; and (B)

the information derives independent economic value, actual or potential, from not being

generally known to, and not being readily ascertainable through proper means by, another person

information."
who can obtain economic value from the disclosure or use of the

Spaces'
70. Defendants possesses Modern trade secrets in the form of. among other

things, compilations of data from Modern Spaces proprietary CMS system, including client lists,

customer and landlord client contact and —


leadswach of
listings, listing agreements, information,

which are sufficiently secret to derive economic value from not being generally known to

persons who can obtain economic value from the disclosure or use of that information. The data

compilations were created and maintained through countless hours of direct client interactions

and/or other work and would be unavailable to Compass through publicly forums or locations.

The client lists, customer and landlord listings, listing agreements, client contact information.

engineercd-
engineered"
and leads are not known or available to the public, nor could they be "reverse

through public sources or information.

,'!033553 '2 ,' 13

13 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

Spaces'
71. Modern confidential information and trade secrets relate to services used

in, or intended to be used in, interstate or foreign commerce.

72. Modern Spaces has taken reasonable measures to protect the secrecy of its

confidential information and trade secrets, including password protecting its proprietary

databases and requiring brokers who have access to it (including Meis) to sign agreements

Spaces'
restricting the use of Modern proprietary information.

Defendants' Spaces'
73. misappropriated Modern trade secrets through improper and

Spaces'
unlawful means, including by Meis emailing Modern trade secrets to her personal email

address and then sharing that information with Compass.

Spaces'
74. Defendants acquired and used Modern trade secrets in a manner to which

Plaintiff did not consent and for the purpose of deriving economic benefit for Defendants and to

the financial detriment of Modern Spaces.

Spaces'
75. At the time that Modern trade secrets were disclosed to Defendants,

Defendants knew or had reason to know that the trade secrets were acquired through improper

Spaces'
and unlawful means, under circumstances giving rise to a duty to maintain Modern trade

secrets.

76. Defendants knowingly and improperly obtained, used. and disclosed such trade

secrets in violation of DTSA and relevant common law and statutory provisions prohibiting

profiting from another's trade secrets.

Defendants'
77. As a direct and proximate cause of conduct. Modern Spaces has

suffered and continues to suffer the disruption of its business relationships and the loss of clients

and potential clients, misappropriation of its trade secrets, and devaluation of its trade secrets and

Defendants' Spaces'
business. misappropriation of Modern confidential information and trade

,'l 033 i5i 2 i 14

14 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

secrets has caused and will continue to cause Modern Spaces substantial injury, including, but

not limited to actual damages, lost profits, harm to its reputation, and the diminution in value of

its trade secrets and business. Defendants have been unjustly enriched by their misappropriation

Defendants'
of confidential information and trade secrets.

Spaces'
78. To the extent Modern damages cannot be quantified, Defendants should

Spaces'
be order to pay a reasonable royalty for unauthorized disclosure or use of Modern trade

secrets.

Defendants' of' Spaces'


79. misappropriation of Modern trade secrets was intentional,

knowing, willful, malicious, fraudulent, and oppressive. Modern Spaces is entitled to an award

attorneys'
of exemplary damages and reasonable fees as a consequence.

Spaces'
80. Because Modern remedy at law is inadequate, Modern Spaces seeks-in

relief'
addition to damages-a — temporary, preliminary. and permanent injunctive relief to protect its

trade secrets, as well as its legitimate business interests. Modern Spaces will continue to suffer

irreparable harm absent injunctive relief.

FIFTH CAUSE OF ACTION

(Unfair Competition Against All Defendants)

81. Plaintiff repeats and realleges the allegations contained in the foregoing

if'
paragraphs as if fully set forth herein.

82. virtue of her affiliation with Modern Spaces, Meis was placed in a position of
By

Spaces'
trust and had access to Modern valuable confidential information, Proprietary

Information and trade secrets relating to its business in Queens, New York.

'l033sss 2 i 15

15 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

Spaces'
83. This confidential and proprietary information is not known to Modern

competitors or to the public at large, and gives Modern Spaces a competitive advantage against

competitors.

84. Defendants have acted in bad faith and have engaged in unfair competition with

Spaces'
Modern Spaces by misappropriating and exploiting Modern Spaces confidential information,

including, without limitation the Proprietary Information, for their own benefit.

85. Thus, Compass - a relatively new player in the Long Island City real estate

market - now has access to the valuable customer and landlord listings that has taken Modern

Spaces years to compile, thereby gaining an unfair competitive advantage in the Queens real

estate market.

Defendants' Spaces'
86. As a result of misappropriation of Modern confidential and

proprietary information. Modern Spaces has suffered and will continue to suffer irreparable harm

to its business reputation and goodwill for which Plaintiff has no adequate remedy at law.

Defendants' ol' Spaces'


87. As a result of misappropriation of Modern trade secrets,

confidential information and Proprietary Information, Modern Spaces has suffered damages in an

amount to be determined at trial.

SIXTH CAUSE OF ACTION

(Tortious Interference with Prospective Economic Relations Against All Defendants)

Plaintiff'
88. Plaintiff repeats and realleges the allegations contained in the foregoing

paragraphs as if fully set forth herein.

',l033553 2 ) 16

16 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

89. Modern Spaces has invested substantial time and resources in acquiring and

nurturing its client relationships and has a reasonable expectation of continuing to do business

with each of those clients.

90. Defendants tortiously interfered with the economic relationships between Modern

Spaces and its clients through unlawful means, including but not limited to unfair competition

Spaces'
and misappropriation of Modern trade secrets and confidential information.

91. As a direct and proximate result of Defendants tortious actions, Modern Spaces

has suffered and will continue to suffer irreparable harm to its business and goodwill for which

Plaintiff has no adequate remedy at law.

92. As a direct and proximate result of Defendants tortious actions. Modern Spaces

has suffered damages in an amount to be determined at trial.

WHEREFORE, Plaintiff demands judgment against Defendants as follows:

a. awarding Modern Spaces compensatory damages in an amount to be

determined at trial;

b. awarding Modern Spaces punitive and exemplary damages in an amount

to be determined at trial;

Defendants'
c. awarding a reasonable royalty for continued possession of

Spaces'
Modern trade secrets;

d. issuing a temporary restraining order, a preliminary injunction, and a

permanent injunction enjoining Defendants from utilizing any of Modern

Spaces'
confidential and proprietary information;

e. awarding Modern Spaces the costs and disbursements of this action,

attorneys'
together with attorneys fees; and

', 1033553 2 ) 17

17 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

f. awarding Modern Spaces such other and further relief as this Court may

deem just and proper.

Dated: New York, New York

June 12. 2018

Yours,
WARSHA BURSTEIN, LLP

y: Marc A. Lavaia
Plaintiff"
Attorneys for Plainti
110
555 Fiah Avenue, Floor
New York. NY 10017

Tel: 212-984-7740
Email: mlavaia@wbny.com

,'1033553 '2 I 18

18 of 19
FILED: NEW YORK COUNTY CLERK 06/12/2018 03:26 PM INDEX NO. 151148/2018
NYSCEF DOC. NO. 10 RECEIVED NYSCEF: 06/12/2018

VERIFICATION

STATE OF NEW YORK )


) ss.:
COUNTY OF NEW YORK )

ERIC BENAIM, being duly sworn, states:

1. I am the President and Founder of Modern Spaces, LLC, the named


plaintiff in this action. Modem Spaces, LLC is a corporation formed under the laws of the State
ofNew York.
2. 1 have read the foregoing Verified Complaint and know the contents

thereof, and the same is true to my own knowledge, except as to the matters therein stated to be
'
alleged upon infonnation and belief. and as to those matters I b ve the - o be true.

ERIC BENAIM

Sworn to before me this


Lyday of .£ _ . 2018

otary P li
li~

Marc A. t.svula
Notary Public State of NeupYork
No.: 02LA8gF2899
Qualified In Queens County
Conuniealon Explree April 1S,
Cornrnieslon 1$, ~

19 of 19

You might also like