arrow left
arrow right
  • Russian School Of Mathematics, Inc. v. Irene Sinyavin, Logicus, Llc Other Matters - Contract - Other document preview
  • Russian School Of Mathematics, Inc. v. Irene Sinyavin, Logicus, Llc Other Matters - Contract - Other document preview
  • Russian School Of Mathematics, Inc. v. Irene Sinyavin, Logicus, Llc Other Matters - Contract - Other document preview
  • Russian School Of Mathematics, Inc. v. Irene Sinyavin, Logicus, Llc Other Matters - Contract - Other document preview
  • Russian School Of Mathematics, Inc. v. Irene Sinyavin, Logicus, Llc Other Matters - Contract - Other document preview
  • Russian School Of Mathematics, Inc. v. Irene Sinyavin, Logicus, Llc Other Matters - Contract - Other document preview
  • Russian School Of Mathematics, Inc. v. Irene Sinyavin, Logicus, Llc Other Matters - Contract - Other document preview
  • Russian School Of Mathematics, Inc. v. Irene Sinyavin, Logicus, Llc Other Matters - Contract - Other document preview
						
                                

Preview

FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 NYSCEF DOC. NO. 30 RECEIVED NYSCEF: 09/27/2023 EXHIBIT A FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15 Filed 09/27/23 Page NYSCEF DOC. NO. 30 1 of 10NYSCEF: 09/27/2023 RECEIVED UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK RUSSIAN SCHOOL OF MATHEMATICS, INC. Case No. 7:23-cv-8103-PMH Plaintiff, DEFENDANTS IRENE SINYAVIN v. AND LOGICUS, LLC’S AMENDED NOTICE OF REMOVAL OF CIVIL IRENE SINYAVIN and LOGICUS, LLC, ACTION Defendants. PLEASE TAKE NOTICE that Defendants Irene Sinyavin and Logicus, LLC (collectively, “Defendants”), by and through their attorneys The Ottinger Firm, P.C., hereby files this Amendment (“Amended Notice of Removal”) to the Notice of Removal filed on September 13, 2023 which removed the above captioned action from the Supreme Court for the State of New York, County of Westchester, to the United States District Court for the Southern District of New York. 1 Because Plaintiff’s claims arise under federal law, this action is removable pursuant to 28 U.S.C. §§ 1331, 1338, 1441 and 1446. In support of this Amended Notice of Removal, Defendants state the following: PROCEDURAL HISTORY AND BACKGROUND 1. On August 14, 2023, Plaintiff Russian School of Mathematics, Inc. (“Plaintiff” or “RSM”) commenced an action in the Supreme Court of the State of New York, Westchester County, captioned Russian School of Mathematics, Inc. v. Irene Sinyavin, et al, Index No. 65180/2023. A 1 In removing this action, the Removing Defendants preserve any and all defenses. See, e.g., Cantor Fitzgerald, L.P. v. Peaslee, 88 F.3d 152, 157 n.4 (2d Cir. 1996) (“[r]emoval does not waive any Rule 12(b) defenses,” including “defense of lack of personal jurisdiction”); Gay v. Carlson, No. 89 Civ. 4757 (KMW), 1991 WL 190584, at *5 (S.D.N.Y. Sept. 17, 1991) (“[M]erely by removing a case from state to federal court a party does not waive any of its defenses under Rule 12(b), including a motion to dismiss for improper service.”). 1 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15 Filed 09/27/23 Page NYSCEF DOC. NO. 30 2 of 10NYSCEF: 09/27/2023 RECEIVED true and correct copy of the Docket Report for Index No. 65180/2023 is attached as EXHIBIT 1. 2. Plaintiff’s action against Defendants includes a Summons and Verified Complaint (filed on August 14, 2023), as well as an Order to Show Cause (Proposed), Affidavit in Support of Proposed OSC/Ex Parte Application, Exhibits A through D thereto, and Memorandum of Law in Support. (Docket Nos. 1 through 9). A true and correct copy is attached hereto as EXHIBIT 2. An Affidavit in Opposition to Order to Show Cause and Exhibits attached thereto were filed by Defendants on August 21, 2023. (Docket Nos. 10 through 14). A true and correct copy is attached hereto as EXHIBIT 3 and EXHIBIT 4. An Affidavit in Reply to Order to Show Cause (“OSC”) and Exhibits attached thereto were filed by Plaintiff on August 23, 2023. (Docket Nos. 15 through 17). A true and correct copy is attached hereto as EXHIBIT 5. Correspondence to the Judge was filed by Defendants on August 25, 2023. (Docket No. 18, See EXHIBIT 5). The Court’s order granting Plaintiff’s Order to Show Cause and Entering a Temporary Restraining Order (“TRO”) was filed on August 25, 2023. (Docket No. 19, See EXHIBIT 5). A Bond/Undertaking and two Affidavits of Service were filed by Plaintiff August 30, 2023. (Docket Nos. 20 through 22, See EXHIBIT 5). A Notice of Appeal and Notice of Amended Appeal were filed by Defendants on August 31, 2023. (Docket Nos. 24 through 25). A true and correct copy is attached hereto as EXHIBIT 6. 3. The Verified Complaint asserts claims against Defendants for: (1) Breach of Contract (Non-Compete) Against Sinyavin; (2) Breach of Contract (Non-Solicit) Against Sinyavin; (3) Breach of Contract (Non-Disclosure) Against Sinyavin; (4) Breach of Contract (Non- Disparagement) Against Sinyavin; (5) Breach of Contract (Separation Agreement) Against Sinyavin; (6) Tortious Interference with Contract Against Logicus, LLC; (7) Misappropriation of Trade Secrets Against All Defendants; and (8) Unfair Competition Against All Defendants seeking 2 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15 Filed 09/27/23 Page NYSCEF DOC. NO. 30 3 of 10NYSCEF: 09/27/2023 RECEIVED a temporary restraining order and preliminary injunction and compensatory damages, among other relief requested. See EXHIBIT 2, Verified Complaint Docket No. 1 pp. 9 - 18. 4. On August 30, 2023, Plaintiff filed two Affidavits of Service alleging service was made on August 29, 2023, on Defendants (Defendants dispute the validity of service alleged to be made on an unrelated construction worker, Vladimir [sic], and the First Class Mail alleged to be sent to Ms. Sinyavin on April 29, 2023, several months before the commencement of this action). 5. This Notice of Removal is being filed in the United States District Court for the Southern District of New York, the district in which the case is pending. 6. Defendants filed a Notice of Removal on September 13, 2023, within (30) days of Defendants’ receipt of service of the initial pleadings setting forth the claims for relief upon which this action is based. Removal was thus timely under 28 U.S.C. § 1446(b). 7. Defendants may freely amend their Notice of Removal within 30 days of the Defendants’ receipt of the Complaint. See CBS Inc. v. Snyder, 762 F. Supp. 71, 73 (S.D.N.Y. 1991). This Amended Notice of Removal is filed within 30 days of the Removing Defendants’ receipt of the Complaint as calculated under Federal Rule of Civil Procedure 6, and is therefore timely under 28 U.S.C. § 1446(b). See id. 8. In accordance with 28 U.S.C. § 1446(d), Defendants will promptly file a copy of this Amended Notice of Removal with the Clerk of the Supreme Court of the State of New York, County of Westchester. 9. Defendants have served all parties with a copy of this Amended Notice of Removal. GROUNDS FOR REMOVAL 10. The Court has original jurisdiction over the Action under 28 U.S.C. §§ 1331 and 1338, and the Action is therefore properly removable under 28 U.S.C. §§ 1441 and 1446. In particular, 3 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15 Filed 09/27/23 Page NYSCEF DOC. NO. 30 4 of 10NYSCEF: 09/27/2023 RECEIVED this Court has jurisdiction under 28 U.S.C. § 1331 because the gravamen of Plaintiff’s claims in the Complaint arises under the United States Copyright Act, 17 U.S.C. § 301(a) et seq. (“Copyright Act”). Specifically, Plaintiff’s claims for relief under the Sixth through Eighth Counts of the Complaint necessarily depend on the resolution of substantial questions of federal copyright law involving the Copyright Act and are subject to preemption. 11. As explained in Briarpatch Ltd., L.P v. Phoenix Pictures, Inc., the Copyright Act exclusively governs and completely preempts state law claims when: (1) the particular work to which the claim is being applied falls within the type of works protected by the Copyright Act under 17 U.S.C. §§ 102 and 103 (“subject matter requirement”); (2) the claim seeks to vindicate legal or equitable rights that are equivalent to one of the bundles of exclusive rights already protected by copyright law under 17 U.S.C. § 106 (“scope requirement”); and 3) the claim does not “include any extra elements that make it qualitatively different from a copyright infringement claim.” (“extra element requirement”) 373 F.3d 296, 305-306 (2d. Cir 2004). 12. In the Sixth through Eighth Counts of the Complaint, Plaintiff alleges the following: 6) Logicus induced Sinyavin to compete, solicit, disclose and/or exploit “Confidential Information Compl. at ¶ 77; 7) Logicus induced Sinyavin to disclose, an/or improperly use the Confidential Information” and trade secrets to use to its advantage in violation of the employment agreement Compl. at ¶ 83; 8) Logicus and Sinvayin engaged in unfair competition by misappropriating and using “Confidential Information” and trade secrets for competitive advantage. Compl. at ¶ 86. 13. Paragraph 19 of the Complaint defines “Confidential Information” to include: any information, in any form, which is not generally disclosed to the public and belongs to or concerns the Company or any past, current or prospective client, student, parent, vendor, contractor or employee of the 4 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15 Filed 09/27/23 Page NYSCEF DOC. NO. 30 5 of 10NYSCEF: 09/27/2023 RECEIVED Company, including, but not limited to: (a) products or services, whether or not reduced to practice, in development or contemplated; (b) RSM’s business strategies, planning data and sales and marketing strategies; (c) fees, costs and pricing structures; (d) RSM’s financial results and information about its business condition; (e) teaching modules, curriculum, practices, methods, materials, and lesson plans; (f) the names of, and information about, clients and prospects, including contact persons; (g) computer software, including operating systems, applications and program listings; (h) training manuals and documentation; (i) data bases; (j) new developments, methods and processes, whether patentable or unpatentable and whether or not reduced o practice, in development or contemplated; (k) information relating to the RSM’s personnel matters; (1) copyrightable works; (m) all technology and trade secrets; and (n) all similar and related information in whatever form, including information developed by me. Compl. at ¶ 19. 14. Despite intentionally omitting any reference to the Copyright Act, it is abundantly clear that Plaintiff is relying on federal copyright law as the basis for its claims because as outlined above a vast majority of the categories of “Confidential Information” enumerated in the Complaint, are protected by federal copyright law. For example, in Plaintiff’s Seventh Cause of Action seeks protection for “proprietary teaching and testing materials.” Compl. at ¶ 80. Additionally, the definition of “Confidential Information” for which Plaintiff seeks monetary damages and injunctive relief preventing Defendants from continuing to use, explicitly includes 5 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15 Filed 09/27/23 Page NYSCEF DOC. NO. 30 6 of 10NYSCEF: 09/27/2023 RECEIVED “copyrightable works” and refers to various categories of copyrightable property including “teaching modules, curriculum, practices, methods, materials, and lesson plans,” “computer software,” and “training manuals and documentation.” Compl. at ¶ 19. Therefore, Plaintiff’s claims, regardless of how they are pleaded, in substance arise under federal law and can only be resolved under the Copyright Act. As such, Plaintiff’s claims satisfy the subject matter requirement. 15. The second prong of the statutory preemption test, "looks at the right being asserted (over a work that comes within the 'subject matter of copyright') and requires (for preemption to apply) that the right be 'equivalent to any of the exclusive rights within the general scope of copyright as specified by section 106.'" Id. at 43 (quoting 17 U.S.C. § 301(a)). MLGenius Holdings LLC v. Google LLC, No. 20-3113, 2022 U.S. App. LEXIS 6206, at *7 (2d Cir. Mar. 10, 2022). Thus, for preemption to apply, "the state law claim must involve acts of reproduction, adaptation, performance, distribution or display." Id. Accordingly, the scope requirement is satisfied because Plaintiff is seeking monetary damages and injunctive relief preventing Defendants from allegedly continuing to use and/or exploit “Confidential Information” (i.e. copyrightable works), including “proprietary teaching and testing materials,” that belongs to Plaintiff. Compl. at ¶ ¶ 77, 80 83, 86 16. "To determine whether a claim is qualitatively different, we look at what the plaintiff seeks to protect, the theories in which the matter is thought to be protected and the rights sought to be enforced." And "[i]f unauthorized [use] is the gravamen of [the plaintiff's] claim, then it is clear that the right they seek to protect is coextensive with an exclusive right already safeguarded by the Act-namely, control over reproduction and derivative use of copyrighted material.” MLGenius Holdings LLC v. Google LLC, No. 20-3113, 2022 U.S. App. LEXIS 6206, at *7-8 (2d Cir. Mar. 10, 2022). For example, in Editorial Photocolor Archives, Inc. v. Granger Collection, 61 N.Y.2d 6 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15 Filed 09/27/23 Page NYSCEF DOC. NO. 30 7 of 10NYSCEF: 09/27/2023 RECEIVED 517, 474 N.Y.S.2d 964, 463 N.E.2d 365 (1984), the Court held that even though the claims were couched as state law claims, “Those rights asserted in plaintiffs’ complaint and sought to be protected by the preliminary injunction are equivalent to the exclusive rights of use and reproduction given by the copyright laws. Id. at 521-22. Accordingly, the Court held that there was no jurisdiction because “all legal and equitable rights equivalent to copyrights are governed exclusively by that act. States may not, by statute or common law, provide equivalent rights, and State courts are divested of jurisdiction to consider claims to enforce those rights.” Id. at 522. Likewise, in Durham Indus. v. Tomy Corp., 630 F.2d 905 (2d Cir. 1980), the defendant “asserted nine counterclaims against Durham: eight counterclaims alleging copyright infringement in regard to eight specified toys and the ninth counterclaim alleging unfair competition under both the Lanham Act, 15 U.S.C. § 1125(a), and state law, in regard to the same eight toy products.” Id. at 907-08. Once again, because there were copyright claims in the case, the Court held that any state law unfair competition claims were preempted by statute. Id at 919. 17. Although Plaintiff’s claims were artfully drafted to appear as if they arise solely out of state law, the adjudication of these claims will ultimately turn on an interpretation of the Copyright Act and specifically, whether: (1) Plaintiff owns the exclusive rights under the Copyright Act to reproduce and use “Confidential Information”; (2) Logicus and Sinvayan misappropriated and used “Confidential Information”; and 3) Logicus induced Sinvayan to use and exploit “Confidential Information.” Therefore, it is undisputable that Plaintiff’s claims against Logicus arise solely from the rights and remedies guaranteed to copy right owners under the Copyright Act. That is, Plaintiff’s claim against Logicus is preempted because it does not contain any “extra element” to render the claim qualitatively distinct. See Comput. Assocs. Int'l v. Altai, 982 F.2d 693, 719 (2d Cir. 1992) (agreeing that the district court correctly stated that a state law claim based 7 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15 Filed 09/27/23 Page NYSCEF DOC. NO. 30 8 of 10NYSCEF: 09/27/2023 RECEIVED solely upon the wrongful use of a work protected by trade secret and copyright could not satisfy the governing "extra element" test and subject to preemption.) 18. Whatever the dubious merits of Plaintiff’s claims – each of which Defendants contest – they are federal in nature. Even where state law creates a plaintiff’s causes of action, federal jurisdiction lies if the well pleaded complaint establishes that the plaintiff’s right to relief under state law requires resolution of a substantial question of federal law in dispute between the parties. See City of Chicago v. Int’l Coll. Of Surgeons, 522 U.S. 156, 164 (1997) (upholding removal of state court action where plaintiff used state administrative review statute to raise federal constitutional challenges to local landmarks ordinances). 19. As a corollary to this rule, the federal courts may assert jurisdiction in the absence of a federal law claim on the face of the complaint where the plaintiff has, through artful pleading, sought to avoid removal “by framing in terms of state law a complaint the real nature of [which] is federal, regardless of plaintiff’s characterization, or by omitting to plead necessary federal questions in a complaint. Marcus v. AT&T Corp., 138 F.3d 46, 55 (2d Cir. 1998) (alterations and internal quotation marks omitted) (upholding removal where plaintiff’s state law breach of warranty claim arose from tariff that defendant was required by federal statute to file with the FCC). As explained above, Plaintiff’s Sixth through Eighth Counts are quintessentially federal questions. The fact that such a claim arises in the context of a disruption of contractual arrangements and presents certain contract issues should not remove it from that jurisdiction.” Ryan v. Volpone Stamp Co., 107 F. Supp. 2d 369, 377 (S.D.N.Y. 2000) (citing Daniel Wilson Productions, Inc. v. Time-Life Films, Inc., 736 F. Supp. 40, 43 (S.D.N.Y. 1990)) (holding that plaintiff’s assertion of a claim for infringement and prayer for remedies expressly granted by the Lanham Act was sufficient to confer subject matter jurisdiction upon the District Court, 8 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15 Filed 09/27/23 Page NYSCEF DOC. NO. 30 9 of 10NYSCEF: 09/27/2023 RECEIVED notwithstanding his additional claims for breach of contract and violations of New York State statutory law). See also Comput. Assocs. Int'l v. Altai, 982 F.2d 693, 719 (2d Cir. 1992) (holding Plaintiff’s claim against company that allegedly used work stolen by another individual in violation of confidentiality agreement was subject to preemption.) 20. For these reasons, this Court has federal question jurisdiction over Plaintiff’s claims. Plaintiff’s Complaint independently raises on its face substantial federal issues in addition to raising federal issues “by way of a cause of action created by state law,” City of Chicago, 522 U.S. at 164, and frames in state law terms a claim whose real nature is federal, see Marcus, 138 F.3d at 55. “By raising several claims that arise under federal law, [Plaintiffs] subjected . . . [themselves] to the possibility that [Defendants] would remove the case to the federal courts.” City of Chicago, 522 U.S. at 164. 21. In addition, this action is one that may be removed to this Court pursuant to 28 U.S.C. 1454(a), which provides that "[a] civil action in which any party asserts a claim for relief arising under any Act of Congress relating to patents, plant variety protection, or copyrights may be removed to the district court of the United States for the district and division embracing the place where the action is pending.” Indeed, 1454, which became law as part of the America Invents Act of 2011, was intended to abrogate Holmes Grp., Inc. v. Vornado Air Circulation Sys,, Inc. by expressly allowing a defendant to remove based on copyright-related counterclaims. See Andrews v. Daughtry, 994 F. Supp. 2d 728, 731 (M.D.N.C. 2014) (“Congress passed the so-called 'Holmes Group fix,'" allowing federal courts to assert subject matter jurisdiction on the basis of a counterclaim arising under federal patent or copyright law.) (citing Joe Matal, A Guide to the Legislative History of the America Invents Act: Part II of II, 21 Fed. Cir. B.J. 539, 539 (2012)). 22. Defendants allege declaratory judgment counterclaims regarding non-infringement of 9 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15 Filed 09/27/23 Page NYSCEF DOC. NO. 30 10 of 10 RECEIVED NYSCEF: 09/27/2023 Plaintiff’s alleged “copyrightable works” and regarding unenforceability of the restrictive covenants prohibiting the use and distribution of Plaintiff’s alleged “copyrightable works.” Thus, removal is proper under 1454(a) because a party – Defendant Sinvayin and Defendant Logicus -- asserts claims for relief "arising under any Act of Congress relating to Copyrights.” 23. For all claims (if any) not subject to jurisdiction under 28 U.S.C. § 1331, supplemental jurisdiction lies under 28 U.S.C. § 1367 because all claims in this case form part of the same controversy. See Id. at 164-65. CONCLUSION 24. This Court has original jurisdiction over this action pursuant to 28 U.S.C. §§ 1331, 1367, 1334, and this action may be removed to this Court pursuant to 28 U.S.C. §§ 1441(b) and 1452(a). Dated: September 27, 2023 New York, New York Respectfully submitted, THE OTTINGER FIRM, P.C. /s/ Robert Ottinger Robert Ottinger 79 Madison Avenue New York, New York 10016 Telephone: (347) 492-1904 robert@ottingerlaw.com 10 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-1 Filed 09/27/23 RECEIVED NYSCEF DOC. NO. 30 Page 1 of NYSCEF: 3 09/27/2023 EXHIBIT 1 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-1 Filed 09/27/23 RECEIVED NYSCEF DOC. NO. 30 Page 2 of NYSCEF: 3 09/27/2023 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-1 Filed 09/27/23 RECEIVED NYSCEF DOC. NO. 30 Page 3 of NYSCEF: 3 09/27/2023 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 06:41 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-2 Filed 09/27/23 Page NYSCEF DOC. NO. 30 1 of 73 RECEIVED NYSCEF: 09/27/2023 EXHIBIT 2 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 08/14/2023 06:41 04:24 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-2 Filed 09/27/23 Page NYSCEF DOC. NO. 30 1 2 of 73 RECEIVED NYSCEF: 09/27/2023 08/14/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF WESTCHESTER RUSSIAN SCHOOL OF MATHEMATICS, INC., : : Plaintiff, : Index No. __________ : v. : : IRENE SINYAVIN and : LOGICUS, LLC : : SUMMONS Defendants. : TO IRENE SINYAVIN: YOU ARE HEREBY SUMMONED to answer the Verified Complaint in this action and to serve a copy of your Answer, or, if the Verified Complaint is not served with this summons, to serve a notice of appearance, on the plaintiff’s attorneys within 20 days after the service of this summons, exclusive of the day of service (or within 30 days after the service is complete if this summons is not personally delivered to you within the State of New York); and in case of your failure to appear or answer, judgment will be taken against you by default for the relief demanded in the Verified Complaint. The basis of the venue designated is the contract giving rise to plaintiff’s claims was executed in Westchester County and because defendants reside and do continuous and systemic business in Westchester County. 1 of 23 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 08/14/2023 06:41 04:24 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-2 Filed 09/27/23 Page NYSCEF DOC. NO. 30 1 3 of 73 RECEIVED NYSCEF: 09/27/2023 08/14/2023 Dated: August 14, 2023 New York, New York Respectfully submitted, By: /s/ Daniel J. LaRose Lawrence Peikes lpeikes@wiggin.com Daniel LaRose dlarose@wiggin.com Wiggin and Dana LLP 437 Madison Avenue 35th Floor New York, New York 10022 (212) 551-2600 Attorneys for Plaintiff RUSSIAN SCHOOL OF MATHEMATICS, INC. 2 of 23 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 08/14/2023 06:41 04:24 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-2 Filed 09/27/23 Page NYSCEF DOC. NO. 30 1 4 of 73 RECEIVED NYSCEF: 09/27/2023 08/14/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF WESTCHESTER RUSSIAN SCHOOL OF MATHEMATICS, INC., : : Plaintiff, : Index No. __________ : v. : : IRENE SINYAVIN and : LOGICUS, LLC : : SUMMONS Defendants. : TO LOGICUS, LLC: YOU ARE HEREBY SUMMONED to answer the Verified Complaint in this action and to serve a copy of your Answer, or, if the Verified Complaint is not served with this summons, to serve a notice of appearance, on the plaintiff’s attorneys within 20 days after the service of this summons, exclusive of the day of service (or within 30 days after the service is complete if this summons is not personally delivered to you within the State of New York); and in case of your failure to appear or answer, judgment will be taken against you by default for the relief demanded in the Verified Complaint. The basis of the venue designated is the contract giving rise to plaintiff’s claims was executed in Westchester County and because defendants reside and do continuous and systemic business in Westchester County. 3 of 23 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 08/14/2023 06:41 04:24 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-2 Filed 09/27/23 Page NYSCEF DOC. NO. 30 1 5 of 73 RECEIVED NYSCEF: 09/27/2023 08/14/2023 Dated: August 14, 2023 New York, New York Respectfully submitted, By: /s/ Daniel J. LaRose Lawrence Peikes lpeikes@wiggin.com Wiggin and Dana LLP 437 Madison Avenue 35th Floor New York, New York 10022 (212) 551-2600 Attorneys for Plaintiff RUSSIAN SCHOOL OF MATHEMATICS 4 of 23 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 08/14/2023 06:41 04:24 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-2 Filed 09/27/23 Page NYSCEF DOC. NO. 30 1 6 of 73 RECEIVED NYSCEF: 09/27/2023 08/14/2023 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF WESTCHESTER RUSSIAN SCHOOL OF : MATHEMATICS, INC., : : Index No. __________ Plaintiff, : : v. : : IRENE SINYAVIN and : LOGICUS, LLC : VERIFIED COMPLAINT : Defendants. Plaintiff, Russian School of Mathematics, Inc. (“plaintiff” or “RSM”), by and through its attorneys, Wiggin and Dana LLP, alleges for its Complaint against defendants Irene Sinyavin and Logicus, LLC (collectively “defendants”), as follows: Nature Of The Action 1. This is an action to enforce RSM’s legal and contractual rights and prevent its former employee, Irene Sinyavin (“Sinyavin”), from continuing to violate certain restrictive covenants contained in her Employment Agreement. Sinyavin has breached the Employment Agreement in myriad ways. First by founding Logicus, LLC (“Logicus”), a direct competitor of RSM in the mathematics tutoring business. Second by brazenly soliciting RSM’s clients. Third by making negative or disparaging statements or communications about RSM. And fourth by exploiting RSM’s confidential business information to the competitive advantage of Logicus. As a remedy for these transgressions, plaintiff seeks a temporary restraining order and preliminary injunction, as well as monetary damages. 5 of 23 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 08/14/2023 06:41 04:24 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-2 Filed 09/27/23 Page NYSCEF DOC. NO. 30 1 7 of 73 RECEIVED NYSCEF: 09/27/2023 08/14/2023 The Parties 2. RSM, a corporation organized under the laws of the Commonwealth of Massachusetts with its principal place of business located at 200 Wells Avenue, Suite 101, Newton, Massachusetts, consists of after-school math learning centers that provide after school math programs for students in grades K-12. 3. Defendant Irene Sinyavin is an individual residing at 6 Grand Park Avenue, Scarsdale, New York 10583. RSM hired Sinyavin to serve as the Principal of RSM’s Scarsdale location effective March 12, 2021. Sinyavin agreed to accept employment by RSM pursuant to, inter alia, the terms of a simultaneously executed Employment Agreement. Sinyavin remained employed by RSM as Principal until January 11, 2023, at which point her employment was terminated. While employed by RSM, Sinyavin was privy to RSM’s confidential client information and trade secrets, such as lesson plans, teaching methodologies, marketing strategies, and so on. 4. Defendant Logicus, LLC is a corporation organized under the laws of the State of New York with its principal place of business located at 1875 Palmer Avenue, Larchmont, New York 10538. Like RSM, Logicus is also an after-school math learning center providing after school math programs for students in grades K-12. Sinyavin founded Logicus in or about March 2023 and acts as its Principal, the same role she held at RSM. Jurisdiction and Venue 5. This Court has jurisdiction because the contract that forms the basis for this action was executed in New York and is governed by New York law. In addition, Logicus, and Sinyavin reside in New York, and RSM and Logicus do business in New York. Moreover, Sinyavin, acting on behalf and for the benefit of Logicus solicited current RSM clients in New York in violation of her contractual obligations, as more fully detailed below. By operation of the contract that forms 2 6 of 23 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 08/14/2023 06:41 04:24 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-2 Filed 09/27/23 Page NYSCEF DOC. NO. 30 1 8 of 73 RECEIVED NYSCEF: 09/27/2023 08/14/2023 the basis for this action Sinyavin and RSM consent to the jurisdiction of New York courts over any dispute concerning the contract and Sinyavin’s employment relationship with RSM. 6. Venue is proper pursuant to CPLR § 503(a) because Sinyavin resides in Westchester County, Sinyavin worked for RSM in Westchester County, and the contract giving rise to RSM’s claims was executed in Westchester County. In addition, Logicus, resides in Westchester County. Relevant Facts I. The Agreements 7. Sinyavin commenced employment with RSM as the principal of the Scarsdale location on March 12, 2021. Sinyavin signed the Employment Agreement on March 12, 2021. Ralitsa Dimitrova, RSM’s VP, People and Culture, countersigned the agreement. 8. The Employment Agreement included non-disclosure, non-competition, non- solicitation, and non-disparagement provisions. A true and accurate copy of the Employment Agreement is attached to the Affirmation of Daniel LaRose as Exhibit A. 9. Sinyavin separated from employment with RSM on January 11, 2023, and four days later, on January 17, 2023, Sinyavin signed a Separation Agreement.1 The Separation Agreement, incorporates the terms of the Employment Agreement, including the restrictive covenants described in detail below. A true and accurate copy of the Separation Agreement is attached to the Affirmation of Daniel LaRose as Exhibit B. 10. Section 9 of the Separation Agreement, entitled “Employment Agreement,” reads, in part, “The Employee acknowledges she signed an Employment Agreement on March 12, 2021 1 The Separation Agreement erroneously states Sinyavin’s separation date as January 11, 2022 instead of January 11, 2023. 3 7 of 23 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 08/14/2023 06:41 04:24 PM INDEX NO. 65180/2023 Case 7:23-cv-08103-PMH Document 15-2 Filed 09/27/23 Page NYSCEF DOC. NO. 30 1 9 of 73 RECEIVED NYSCEF: 09/27/2023 08/14/2023 which contains provisions governing Confidential Information, Non-Competition, Non- Solicitation, and Ownership of Programs, Inventions, and Intellectual Property (Paragraphs 5-9, 12, 13), attached as Exhibit A. The Employee agrees that these provisions remain in effect and that she will abide by all such terms that survive termination.” 11. The Separation Agreement also contains an independent non-disparagement clause, which reads: Employee agrees not to disparage, demean or criticize the Company, or any owner, officer or employee of the Company at any time for any reason. Without limiting the generality of the foregoing, Employee will not make any negative, disparaging or critical comments about the Company, its owners, officers or employees, to any of the Company's past, present or future employees, clients, owners, vendors or contractors. Without limiting the forgoing, this provision applies to any postings on social media or on- line platforms, even if done anonymously. Ex. B § 6. 12. The non-competition and non-solicitation provisions of the Employment Agreement run for a period of two years after the end of Sinvayin’s employment with RSM. However, per the Employment Agreement, “the Non-Solicit Term and the Non-Compete Term shall be measured solely by the time during which Employee is complying with this Agreement. Any period during which Employee is in violation of this Agreement will not be considered in computing either the Non-Solicit Term or the Non-Compete Term, but will extend the duration of those Terms.” 13. As discussed herein, Sinyavin has been in breach on these terms since at least March 31, 2023. Accordingly, the duration of the non-compete and non-solicit terms shall be extended beyond January 11, 2025, which is two years after the date Sinvayin’s employment relationship with RSM ended. 14. The non-compete provision of the Employment Agreement provides: 4 8 of 23 FILED: WESTCHESTER COUNTY CLERK 09/27/2023 08/14/2023 06:41 04:24 PM INDEX NO. 65180/2023 NYSCEF DOC. NO. Case 1 30 7:23-cv-08103-PMH Document 15-2 Filed 09/27/23 Page 10 of NYSCEF: RECEIVED 73 08/14/2023 09/27/2023 To protect the Company’s Resources and Confidential Information, at any time during his/her employment and for a period of two years after the end of Employee's employment ("Non-Compete Term") the Employee: S/he will not become employed by, advise, consult with, provide services to, or act as an agent for, any Competitive Business. A “Competitive Business” is any entity which is, or plans to become, engaged in any activity which is competitive with the Company’s business, including but not limited to, tutoring mathematics, or providing services to any program offering mathematics instruction. Nothing in this Agreement will prohibit Employee from continuing the activities listed in Appendix B (Approved Activities) or from working as a mathematics teacher in a public or private full-day school setting after this Agreement is terminated. In addition, Employee will not acquire an ownership interest in any Competitive Business during the Non-Compete Term. However, Employee may acquire stock in a Competitive Business that is publicly traded, provided my stock constitutes less than three percent (3%) of the outstanding securities of the Competitive Business. Employee may also own mutual funds which hold stock in a Competitive Business, provided Employee cannot control or direct the purchase of stock by the mutual fund. Ex. A § 9(c). 15. The non-solicit (of clients) provision of the Employment Agreement provides: During Employee’s employment with RSM and for a period of two years