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UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY LOUISVILLE DIVISION PSC INDUSTRIES, INC., Plaintiff/Counter Defendant, v. Civil Action No. 3:20-cv-146-DJH-RSE YARBROUGH TECHNICAL ASSOCIATES, INC., Defendant/Counter Claimant. * * * * * MEMORANDUM OPINION AND ORDER Plaintiff PSC Industries, Inc., a manufacturer based in Louisville, Kentucky, claims that its âlong-time outside sales representative,â Defendant Yarbrough Technical Associates, Inc. (YTA), secretly reached an agreement with one of PSCâs high-level salespeople, Matthew Parr, to divert potential business away from PSC to YTAâs other clients in exchange for commissions and finderâs fees. (Docket No. 31, PageID.193; see id., PageID.196â98) PSC alleges that YTAâs arrangement with Parr breached a âManufacturerâs Representative Agreementâ between PSC and YTA; that this breach discharged any further obligation of PSC to pay commissions to YTA under that contract; that YTA tortiously interfered with Parrâs contractual relationship with PSC; and that YTA aided and abetted Parrâs breach of his fiduciary duties. (Id., PageID.199â202; see D.N. 1-2, PageID.9â17) YTA asserts in a counterclaim that PSC breached the partiesâ âManufacturerâs Representative Agreementâ by failing to pay commissions to which YTA was entitled. (D.N. 32, PageID.215â18; see D.N. 1-2, PageID.70â72) YTA now moves for partial summary judgment on its breach-of-contract counterclaim and summary judgment on all of PSCâs claims against it, and PSC cross-moves for summary judgment on its claims against YTA as well as YTAâs counterclaim.1 (D.N. 40; D.N. 41) For the reasons explained below, YTAâs motion will be granted in part and denied in part, and PSCâs motion will be denied in full. I. The following facts come from the âcit[ations] to particular parts of materials in the record,â Fed. R. Civ. P. 56(c)(1)(A), found in the partiesâ respective summary-judgment motions and responses. (See D.N. 40; D.N. 41; D.N. 42; D.N. 43) A. PSC and YTAâs Agreement PSC is a âservice-based fabricatorâ based in Louisville, Kentucky, that manufactures and distributes parts made out of foam, fiberglass, rubber, and other non-metallic materials for âcustomers in a multitude of industries.â (D.N. 41, PageID.402; see D.N. 41-2, PageID.438â40; D.N. 41-4, PageID.604, 621â22) YTA is a âmanufacturerâs representativeâ based in upstate New York that generates new business for its clients and sells their manufactured products to commercial customers. (D.N. 40, PageID.233â34; see D.N. 40-4, PageID.299) YTAâs principal and sole owner is William Yarbrough. (See D.N. 41-8, PageID.696) In 2001, PSC and YTA entered into a âManufacturerâs Representative Agreementâ (the Agreement), under which YTA agreed to âpromote the sales of and solicit orders forâ PSCâs âfabricated seals [and] die cut foamsâ in an âassigned territoryâ in exchange for a five-percent commission on all ânet salesâ that it generated for PSC. (D.N. 40-1, PageID.258â59; D.N. 41-9, PageID.780â81) The Agreement provided that YTA was âan independent contractor and . . . not an employee of [PSC]â and that neither party âha[d] any authority to bind the other in any respect.â 1 According to YTA, its motion for summary judgment as to its breach-of-contract counterclaim is âpartialâ because â[i]f the Court awards summary judgmentâ as to PSCâs liability, âYTA will file a supplemental motion concerning damages . . . with calculations relating to attorneysâ fees and interest.â (D.N. 40, PageID.233 n.1) (D.N. 41-9, PageID.780) It further provided that either party could terminate the Agreement thirty days after giving written notice to the other party via registered mail. (Id., PageID.782) Upon termination, PSC was obligated to pay commissions on YTAâs pre-termination sales for up to twelve months after the date those orders had been received by PSC. (Id.) Both parties agreed that they would not, âduring the term of th[e] Agreement, or for one year after termination thereof, hire or employ, or contract with in any manner, salespersons, employees or individuals that were under contract or employed . . . by each otherâs firm unless otherwise agreed to by both [parties] . . . in writing.â (Id., PageID.781) YTA also agreed to âhold [PSC] harmless against any and all claims, demands, damages, suits, actions, jud[gm]ents, decrees, order[s], costs and expenses (including attorneyâs fees) arising out of or resulting from any willful or negligent act or omission of [YTA], . . . including but not limited to third party actions or claims arising out of [YTAâs] activities in connection with th[e] Agreement.â2 (Id.) PSC terminated the Agreement in August 2019 after discovering the alleged breaches by YTA described below. (D.N. 40, PageID.237; D.N. 41, PageID.413â14; see D.N. 40-7) B. The 2014 GE-Rampf Referral PSC claims that YTA first breached the Agreement in 2014 when it allegedly worked with Matthew Parr, who was a PSC salesperson at the time, to divert a business opportunity involving General Electric (GE) away from PSC to Rampf, another YTA client and one of PSCâs competitors.3 (See D.N. 41, PageID.410â11) According to PSC, GE, which was one of Parrâs 2 PSC agreed to an identical indemnification provision with regard to YTA. (See D.N. 41-9, PageID.781) 3 The parties do not dispute that Parr was âemployed full time in the role of [s]ales [p]erson at PSCâ at the time of the 2014 GE-Rampf referral. (D.N. 41-4, PageID.612; see D.N. 40, PageID.239) In that role, according to PSC, Parr was responsible for âcultivating sales of PSCâs capabilities to all potential clientsâ; âidentify[ing] new potential clientsâ; and âdevelop[ing] close relationships with potential and existing PSC clients.â (D.N. 41-4, PageID.612) Parr was also sales clients, approached Parr seeking a âfoam-in-placeâ solution for a refrigerator gasket. (D.N. 41-3, PageID.543â44; see D.N. 40-9, PageID.376) The initial solution that PSC provided failed to meet GEâs requirements. (Id., PageID.546) But rather than seeing if PSC could provide another solution or at least refer GE to another manufacturer, Parr âconnectedâ GE with YTA (D.N. 40-9, PageID.376), who then referred GE to one of its other manufacturer-clients, Rampf, thus âcutting PSC out of the supply chain . . . entirelyâ on a âpiece of businessâ worth at least $400,000 by PSCâs estimation. (D.N. 41-4, PageID.602, 627) PSC contends that Parr referred the GE opportunity to YTA in exchange for a pre-arranged commission. (D.N. 41, PageID.410â11; see D.N. 41-3, PageID.546 (âMatt Parr had a relationship and an agreement with YTA[,] and he took [the GE opportunity] outside [PSC] and sourced it through Rampf.â)) The record confirms that YTA later paid Parr, at a minimum, roughly $4,000 in âcommissionsâ for the GE-Rampf referral, over a four-year period.4 (See D.N. 41-18) YTA does not dispute that Parr referred GE to YTA after PSCâs initial solution proved to be inadequate; that YTA then referred GE to Rampf, which began producing GEâs requested foam- in-place gasket starting in 2016; and that YTA âultimately paid . . . Parr a total of approximately $3,300 from 2016 through 2018â as a âârewardâ for referring the GE business to YTA.â (D.N. 40, PageID.239â40; see D.N. 40-4, PageID.308â09, 315â20; D.N. 40-9, PageID.374, 376) According to YTA, however, Parr referred GE to YTA because he âwanted to help his customerâ and did not expect âany âfinderâs feeâ or commission from the referralâ in return. (D.N. 40, PageID.240; see expected âto maintain existing clients to secure repeat business,â and he had the âauthorityâ to ânegotiate rebates and givebacks on PSCâs behalf in cultivating sales business.â (Id.) 4 According to tax forms that PSC filed as exhibits to its summary-judgment motion, YTA paid Parr $1,064.42 in 2016, $962.54 in 2017, and $1,272.50 in 2018. (D.N. 41-18, PageID.979â81) PSC has also produced evidence that YTA paid Parr an additional $676.46 in âcommissionsâ in July 2019. (See D.N. 41-19, PageID.984) D.N. 40-9, PageID.376) YTA further asserts that the ârewardâ Parr received was simply an unsolicited âexpress[ion]â of William Yarbroughâs âgratitudeâ for Parr âhaving made the introduction to GEâ and was ânot based on any agreementâ between Parr and YTA. (D.N. 40, PageID.240, 245; see D.N. 40-4, PageID.309â10) And YTA points to deposition testimony from Yarbrough and Parr suggesting that the two âunderstoodâ that YTAâs reward had been approved by Parrâs supervisor at PSC.5 (D.N. 40, PageID.240; D.N. 40-4, PageID.310â12, 317â18; D.N. 40-9, PageID.374â75) C. YTAâs Alleged Referral-Commission Agreement with Parr In addition to the 2014 GE-Rampf referral, PSC claims that YTA breached the Agreement when, â[s]tarting no later than 2016,â it âcontractedâ with Parrâwho by that point was a âhigh- level, senior salesperson at PSCâ (D.N. 41-4, PageID.612)ââto an arrangement in which YTA would pay Parr a finderâs fee in exchange for any customers Parr brought to YTA.â6 (D.N. 41, PageID.407; see D.N. 41-10) Under this alleged arrangement, YTA would then refer those customers to its other manufacturer-clients, including some who competed directly with PSC. (See D.N. 41, PageID.407) In a January 2016 email exchange, Yarbrough and Parr discussed âthe start of a new relationship,â and Yarbrough proposed that Parr receive a ten-percent cut of any commissions that YTA earned as a result of Parrâs âcustomer introduction[s].â7 (D.N. 41-10, 5 The Court notes that the deposition testimony from Parr in the record here was taken in a separate case between PSC and Gary Young, Parrâs former supervisor at PSC. (See D.N. 40-9, PageID.373; see D.N. 41, PageID.408) 6 According to PSC, Parr became a âhigh-level, senior salespersonâ at the company â[s]tarting in 2015.â (D.N. 41-4, PageID.612) He âbecame Regional Market Managerâ in January of that year. (Id., PageID.613) He was then promoted to âSales & Marketing Managerâ in March 2016. (Id.) And in November 2017, Parr became PSCâs âGlobal Sales & Marketing Manager,â which was the most senior position in PSCâs sales department. (Id., PageID.614) 7 In an October 2015 email to a prospective client, Yarbrough wrote, âI was referred to you by our Mr. Matt Parr for the possibility of bringing to you . . . a couple of the folks we represent that could potentially prove to be valuable additions to your supply chain.â (D.N. 41-11, PageID.790 PageID.787) Yarbrough wrote that â[t]he real goal would be to build up [Parrâs] YTA commissionsâ and added that â[t]his could really be something[,] and we could really build on [Parrâs] and my contacts and customer knowledge.â (Id.) Yarbrough subsequently emailed Parr a âboiler plateâ âIndependent Contractor Agreementâ describing Parrâs potential role as YTAâs â[s]ub-[a]gentâ and a proposed commission arrangement. (D.N. 41-12, PageID.796, 798; see id., PageID.802â10) But the record does not show that this agreement was ever signed or executed. (See id., PageID.808; see also D.N. 40-4, PageID.321â22) PSC offers several other pieces of evidence that it believes indicate that Parr and YTA formed some sort of âreferral/commission agreementâ after 2016. (D.N. 41, PageID.416; see id., PageID.407â10) For example, in a January 2016 email to his former supervisor at PSC, Parr shared that he expected a five-percent commission from YTA on â[a]ll other business driven directly by him,â which would include both ânew customer[s]â and âPSC customersâ that Parr would âtakeâ to YTA. (D.N. 41-16, PageID.826) In a December 2017 email to Yarbrough, Parr wrote that he was âhoping to be able to review the list of customers [Yarbrough] wanted [him] to take over to ensure [Yarbroughâs] âbusynessâ [wa]s reduced.â (D.N. 41-15, PageID.824) A January 23, 2018 email between Parr and Yarbrough included a spreadsheet ostensibly listing Parrâs â[t]err[i]toryâ and his sales â[a]ccountsâ by industry. (D.N. 41-14, PageID.818â22) An email from January 29, 2018, stated that YTA and Parr would both âget a commissionâ if YTA was âawardedâ a certain job from Lexmark, one of PSCâs longtime customers.8 (D.N. 41-13, (emphasis added)) PSC argues in its summary-judgment motion that this email indicates that âYTA and Parrâs contractual arrangement for Parr to work for YTA while also employed by PSC pre-dated 2016.â (D.N. 41, PageID.407) 8 PSC stated in an interrogatory response that starting in January 2015, Parr became a âkey manager in charge of maintaining and expanding key PSC clients Xerox, IBM, Lexmark, and Electrolux.â (D.N. 41-4, PageID.613 (emphasis added)) PageID.812; see D.N. 41, PageID.404) And Yarbrough wrote in a March 2018 email that he âplan[ned] to take [Parr] intoâ meetings with several different companies (D.N. 41-17, PageID.830). These and other communications concerning âParrâs [alleged] work as YTAâs Sub- Agentâ were sent via text message and Parrâs personal email account, which PSC claims is evidence of YTAâs and Parrâs intent to keep their alleged arrangement secret. (D.N. 41, PageID.410; see D.N. 43, PageID.952; see also, e.g., D.N. 41-10; D.N. 41-12; D.N. 41-23) PSC also contends that YTA worked with Parr to facilitate a business relationship with a company called VFM, which was founded by Parrâs former supervisor at PSC and is PSCâs competitor. (D.N. 41, PageID.411â13) Following âpreliminary discussionsâ about YTA potentially representing VFM (D.N. 41-8, PageID.725), Parr and Yarbrough executed the same non-disclosure agreement with VFM, which Parr ostensibly signed as a â[r]epresentativeâ of YTA (see D.N. 41-22, PageID.868). Parr arranged a tour of VFMâs facility in Bardstown, Kentucky, for YTA in 2018. (See D.N. 41-23, PageID.874; D.N. 41-25, PageID.884) A May 2018 text message from Yarbrough to Parr stated, âLet [VFM] make an offer, then tell [them] we will have to discuss and get back. I wonât sign with [VFM] till we tour and meet face to face.â (D.N. 41- 23, PageID.875) And in June 2018, VFM sent Parr and YTA a proposal outlining âan opportunityâ for Parr that would involve working with both YTA and VFM. (D.N. 41-8, PageID.743; see D.N. 41-26) Finally, PSC points to an October 2017 email from Yarbrough to Parr as evidence that â[b]y fall 2017, YTA and Parrâs discussions had turned to deepening Parrâs involvement in YTA.â D.N. 41, PageID.413; see D.N. 41-27) In that email, Yarbrough proposed as â[f]ood for thoughtâ that Parr join YTA full-time, earn a base salary of $100,000 plus commissions, acquire a ten- percent ownership stake in YTA âup front,â and ultimately enter a âBuy/Sell agreementâ establishing a âtime limit for [Parr] to acquire [YTA].â (D.N. 41-27, PageID.893) According to YTA, all of this purported evidence of an alleged referral-commission agreement between YTA and Parr merely ârelates to preliminary discussionsâ between Yarbrough and Parr âconcerning . . . Parrâs interest in possibly working for and ultimately purchasing YTA.â (D.N. 40, PageID.241) YTA asserts that these discussions ânever came to fruitionâ; that Yarbrough and Parr ânever reached an agreement for . . . Parr to purchase or become employed by YTAâ; and that âPSC has produced no evidence that . . . Parr ever referred business that generated revenue for YTA after the 2014 GE[-Rampf] referral.â (D.N. 40, PageID.241â42) Yarbrough testified in a deposition that Parr never signed the January 2016 âIndependent Contractor Agreementâ because YTA and Parr âwere not able to negotiate . . . a reasonable agreement, if you will, to move forward.â (D.N. 41-8, PageID.719) Yarbrough also stated that beyond the 2014 GE-Rampf referral, ânothing elseâ between YTA and Parr âever came up or ever came to fruition.â (Id., PageID.709) Yarbrough confirmed that YTA attempted to become affiliated with VFM in some way, which included âpreliminary discussionsâ about YTA potentially representing VFM. (Id., PageID.725; see id., PageID.722â23) Yarbrough further confirmed that he visited VFMâs facility in Bardstown, Kentucky, in July 2018 to âsee what exactly VFM didâ and to âverifyâ whether VFM was âa competitorâ with PSC. (Id., PageID.725) But according to Yarbrough, conversations between YTA and VFM âwere broken offâ after YTA received a letter from PSC explaining that the latter âbelieved [VFM] was a competitorâ and that PSC would be âbringing a lawsuitâ against VFMâs founder. (Id., PageID.740) D. PSCâs Termination of the Agreement In the summer of 2019, PSC âdiscover[ed]â the commission payments that Parr had received from YTA for the 2014 GE-Rampf referral, which prompted PSC to âinvestigate YTAâs and Parrâs communications.â (D.N. 41, PageID.413; see D.N. 41-2, PageID.442; D.N. 41-4, PageID.598) That investigation, according to PSC, âuncover[ed]â YTAâs âsecret hiring of Parr as a [s]ub-agentâ and YTAâs âuse of Parr for referrals to existing and potential PSC customers.â (D.N. 41, PageID.413; see D.N. 41-4, PageID.598â99) PSC subsequently fired Parr in August 2019. (D.N. 41-4, PageID.614; see D.N. 41-2, PageID.465) And in a letter to YTA dated August 8, 2019, PSC notified YTA âof the termination of the Agreement . . . and [YTAâs] association with PSC.â (D.N. 40-7, PageID.369) PSCâs letter explained that the â[t]ermination of the Agreementâ was âeffective as of August 9, 2019,â and was âbased on several serious concerns[,] including but not limited to conflict of interest and deceptive practices by [YTA] against PSC.â (Id.) YTA responded with a letter stating that it ârejectedâ PSCâs termination letter because PSC âd[id] not comply withâ the âtermination delivery method or . . . notice period requirementsâ specified in the Agreement. (D.N. 40-8, PageID.371) According to YTA, âPSC never cured the[se] defectsâ (D.N. 40, PageID.237), and PSC considered the Agreement terminated as of August 9, 2019 (see D.N. 41-2, PageID.441). YTA asserts that in addition to unilaterally terminating the Agreement, PSC never paid YTA the commissions it earned between June 2019 and the Agreementâs termination in August 2019. (D.N. 40, PageID.237; see D.N. 40-3, PageID.288â89) YTA further claims that it was entitled under the Agreement to receive commissions âthrough August 2020â on certain pre- termination sales, which PSC likewise did not pay. (D.N. 40, PageID.237; see D.N. 40-1, PageID.260; D.N. 40-2, PageID.277â85) According to YTA, it is owed at least $62,356.10 in unpaid commissions. (D.N. 40, PageID.233, 243; see D.N. 40-2, PageID.274â85) PSC maintains, however, that âYTAâs material breachâ of the Agreement âdischargedâ PSCâs obligation âto pay YTA any further commissions.â (D.N. 41, PageID.418; see D.N. 40-3, PageID.288â89) E. Procedural History PSC originally brought this matter in Jefferson Circuit Court in November 2019, alleging breach of contract and tortious interference with contractual relations. (D.N. 1-2, PageID.9â17) PSC also sought a declaration that YTAâs material breach of the Agreement ârelievedâ PSC âof any further obligation to perform the Agreement.â (Id., PageID.15) YTA asserted a breach-of- contract counterclaim in its answer to PSCâs state-court complaint. (D.N. 1-2, PageID.70â73) YTA removed the case in February 2020, invoking this Courtâs diversity jurisdiction. (D.N. 1) With the Courtâs leave, PSC filed an amended complaint in May 2021, which added a claim for aiding and abetting a breach of fiduciary duty. (D.N. 31, PageID.201â02; see D.N. 30) YTA and PSC cross-moved for summary judgment in October 2021. (D.N. 40; D.N. 41) Both parties filed responses and replies, and the Court heard oral arguments on June 9, 2022.9 (D.N. 42; D.N. 43; D.N. 48; D.N. 49; see D.N. 54) The partiesâ motions for summary judgment are now ripe for adjudication. II. A court may grant summary judgment only if âthere is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.â Fed. R. Civ. P. 56(a). A material fact is one that âmight affect the outcome of the suit under the governing law,â and a dispute about such a fact is genuine âif the evidence is such that a reasonable jury could return a verdict for the 9 YTA also moved for leave to file a sur-reply, to which PSC offered a thorough response. (D.N. 50; D.N. 51) The Court granted YTAâs motion and noted in its Order that it would âconsider all of the arguments that have been presented by the parties.â (D.N. 52, PageID.1078) nonmoving party.â Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). The âultimate questionâ at the summary-judgment stage is âwhether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law.â Back v. Nestle USA, Inc., 694 F.3d 571, 575 (6th Cir. 2012) (quoting Anderson, 477 U.S. at 251â52). The moving party bears the initial burden of âshowing the absence of a genuine issue of material fact.â Laster v. City of Kalamazoo, 746 F.3d 714, 726 (6th Cir. 2014). Once this burden is met, the nonmovant âmustâby deposition, answers to interrogatories, affidavits, and admissions on fileâshow specific facts that reveal a genuine issue for trial.â Id.; see Fed. R. Civ. P. 56(c)(1)(A) (âA party asserting that a fact . . . is genuinely disputed must support the assertion by citing to particular parts of materials in the record . . . .â). Summary judgment must be entered against a party âwho fails to make a showing sufficient to establish the existence of an element essential to [its] case, and on which that party will bear the burden of proof at trial.â Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). But âwhere reasonable minds could differ on a material fact,â summary judgment âis not appropriate.â Henschel v. Clare Cty. Road Commân, 737 F.3d 1017, 1022 (6th Cir. 2013). In deciding a summary-judgment motion, a court must âaccept all of the nonmovantâs evidence as true and draw all reasonable inferences in [that partyâs] favor.â Loyd v. Saint Joseph Mercy Oakland, 766 F.3d 580, 588 (6th Cir. 2014). Yet it âmay not make credibility determinations nor weigh evidence when determining whether an issue of fact remains for trial.â Laster, 746 F.3d at 726. And where, as here, a court is presented with cross-motions for summary judgment, it âmust evaluate each partyâs motion on its own merits, taking care in each instance to draw all reasonable inferences against the party whose motion is under consideration.â McKay v. Federspiel, 823 F.3d 862, 866 (6th Cir. 2016) (quoting Taft Broad. Co. v. United States, 929 F.2d 240, 248 (6th Cir. 1991)). III. The Court will start with YTAâs summary-judgment motion. (D.N. 40) YTA moves for summary judgment on PSCâs claims for breach of contract, tortious interference with contractual relations, and aiding and abetting a breach of fiduciary duty. (Id., PageID.233) YTA also moves for summary judgment in its favor on its breach-of-contract counterclaim.10 (Id., PageID.232â33) The Court will address each claim in turn. A. Choice of Law As a threshold matter, the Court must determine which stateâs law governs each of the claims at issue in this case. See Hackney v. Lincoln Natâl Fire Ins. Co., 657 F. Appâx 563, 570 (6th Cir. 2016). âA federal court sitting in diversity must apply the choice-of-law rules of the forum state.â Stone Surgical, LLC v. Stryker Corp., 858 F.3d 383, 389 (6th Cir. 2017) (citing Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 496 (1941)). In Kentucky, âdifferent choice of law rules apply to tort actions versus contract disputes.â Saleba v. Schrand, 300 S.W.3d 177, 181 (Ky. 2009). The Court will thus address the contract and non-contract claims separately. 10 YTA likewise moves for summary judgment on a fourth â[c]laim for [r]eliefâ that PSC asserts in its amended complaint, in which PSC seeks a âdeclaration of rightsâ as to âwhether YTA is entitled to any further commissions despite its material breaches of the Agreement.â (D.N. 31, PageID.200; see D.N. 40, PageID.233) This declaration-of-rights claim, however, rises and falls with YTAâs breach-of-contract counterclaim. (See D.N. 32, PageID.215â18) Deciding whether PSC breached the Agreement by failing to pay certain commissions that YTA earned (see id.) will necessarily resolve âthe partiesâ respective rights and obligations under the Agreementâ as to those unpaid commissions. (D.N. 31, PageID.200) Accordingly, the Court need not address the merits of PSCâs declaration-of-rights claim separately from YTAâs counterclaim. 1. The Partiesâ Breach-of-Contract Claims Starting with PSCâs breach-of-contract claim and YTAâs breach-of-contract counterclaim, the Agreement at issue here expressly provides that it âshall be governed by the laws of the State of New York, all rights and remedies being governed by said laws.â (D.N. 41-9, PageID.782) Accordingly, PSC and YTA both assert in their summary-judgment motions that New York law applies to their respective breach-of-contract claims. (See D.N. 40, PageID.244; D.N. 41, PageID.415) As the Sixth Circuit âha[s] noted on numerous occasions,â however, âKentucky courts have an extremely strong and highly unusual preference for applying Kentucky law even in situations where most states would decline to apply their own laws.â Osborn v. Griffin, 865 F.3d 417, 443 (6th Cir. 2017) (collecting cases). One consequence of this âunusual preferenceâ is that â[i]n the contractual context,â Kentucky courts âwill not automatically honor a choice-of-law provision, to the exclusion of all other considerations.â Id. (quoting Wallace Hardware Co. v. Abrams, 223 F.3d 382, 393 (6th Cir. 2000)); see Davis v. Siemens Med. Sols. USA, Inc., 399 F. Supp. 2d 785, 791 (W.D. Ky. 2005) (observing that a choice-of-law provision in a contract âis not necessarily determinative of the [choice-of-law] issueâ under Kentucky law). Rather, Kentucky courts âappl[y] § 188 of the Restatement (Second) of Conflict of Laws to resolve choice of law issues that arise in contract disputes,â State Farm Mut. Auto. Ins. Co. v. Hodgkiss-Warrick, 413 S.W.3d 875, 878 (Ky. 2013), even where a contract contains a choice-of-law provision. See Hackney, 657 F. Appâx at 570; see also Wells Fargo Fin. Leasing, Inc. v. Griffin, 970 F. Supp. 2d 700, 709 (W.D. Ky. 2013) (acknowledging that Kentucky courts apply the Restatement (Second) âeven where the parties have expressly agreed to have their contractual rights and duties governed by a particular stateâs lawsâ). Under § 188 of the Restatement, an âissue in contractâ is governed by the law of the state with âthe most significant relationship to the transaction and the parties.â Restatement (Second) of Conflict of Laws § 188(1) (Am. Law Inst. 1971). And crucially, âKentucky's most-substantial-relationship test trumps even an otherwise-valid choice of law clause when the dispute is centered in Kentucky.â Osborn, 865 F.3d at 444; see Schnuerle v. Insight Commcâns Co., 376 S.W.3d 561, 566â67 (Ky. 2012) (applying Kentucky law despite the contract in question having a New York choice-of-law provision because Kentucky had âthe greater interest and the most significant relationship to the transaction and the partiesâ); Breeding v. Mass. Indem. & Life Ins. Co., 633 S.W.2d 717, 719 (Ky. 1982) (applying Kentucky law despite the insurance contract in question having a Delaware choice-of-law provision). Because the Court is obligated to apply Kentuckyâs choice-of-law rules, see Stone Surgical, 858 F.3d at 389, it must therefore determine under the Restatementâs most-significant-relationship test whether New York or Kentucky law governs the partiesâ breach-of-contract claims here. See Hackney, 657 F. Appâx at 570â71. Under that test, the âprinciplesâ that dictate which state has the âmost significant relationshipâ to a contract dispute include (a) the needs of the interstate and international systems, (b) the relevant policies of the forum, (c) the relevant policies of other interested states and the relative interests of those states in the determination of the particular issue, (d) the protection of justified expectations, (e) the basic policies underlying the particular field of law, (f) certainty, predictability and uniformity of result, and (g) ease in the determination and application of the law to be applied. Restatement (Second) § 6(2); see id. § 188 cmt. b. And âin applying the[se] principles,â a court should consider the following state âcontactsâ: â(a) the place of contracting, (b) the place of negotiation of the contract, (c) the place of performance, (d) the location of the subject matter of the contract, and (e) the domicil[e], residence, nationality, place of incorporation and place of business of the parties.â Id. § 188(2); see Hackney, 657 F. Appâx at 571. The most-significant- relationship test requires âbalanc[ing] principles, policies, factors, weights, and emphases to reach a result,â and the Sixth Circuit has acknowledged that such a multifaceted analysis often âdoes not proceed with mathematical precision.â Intâl Ins. Co. v. Stonewall Ins. Co., 86 F.3d 601, 606 (6th Cir. 1996); see id. (noting that the âchoice of law principles found in the Restatementâ are ârelatively elastic, and in some cases equivocalâ). Applying the most-significant-relationship test here, the Court concludes that New York law governs the partiesâ breach-of-contract claims for several reasons. First, New Yorkâs âcontactsâ with both the Agreement and the parties in this matter are substantial. See Restatement (Second) § 188(2). YTA is a New York corporation and has its principal place of business in the state (see D.N. 31, PageID.193â94; D.N. 32, PageID.212). See Restatement (Second) § 188(2)(e). Moreover, New York was a key âplace of performanceâ under the Agreement, see id. § 188(2)(c): YTA agreed to âpromote the sales of and solicit orders forâ PSCâs âproducts and servicesâ in a territory that included upstate New York, and PSC sent commission payments to New York-based YTA in return (see D.N. 41-9, PageID.780â81, 784). See Restatement (Second) § 188 cmt. e (âWhen both parties are to perform in [a] state, th[at] state will have so close a relationship to the transaction and the parties that it will often be the state of the applicable law even with respect to issues that do not relate strictly to performance.â). Second, Kentuckyâs contacts with âthe transaction and the partiesâ here are not more âsignificantâ than New Yorkâs. Id. § 188(1). PSC is headquartered in Kentucky (see D.N. 31, PageID.193), but this contact is no more significant than YTAâs presence in New York. See id. § 188(2)(e) (instructing courts to consider the âplace of business of the partiesâ (emphasis added)). The Court notes that the Agreement concerned products manufactured by a Kentucky-based company. Id. § 188(2)(d). But PSC has twenty-two facilities located around the globe (D.N. 41- 2, PageID.437), and it is unclear from the current record how many of the âfabricated seals and die cut foamsâ governed by the Agreement (D.N. 41-9, PageID.780) were actually produced in Kentucky. See Black v. Dixie Consumer Prods. LLC, No. 1:08-cv-142-JHM, 2018 WL 1144592, at *4 (W.D. Ky. Mar. 2, 2018) (concluding that Kentucky law did not apply to a contract dispute in part because the contract at issue âdid not limit performance to shipping services in Kentucky, but was national in scopeâ). Furthermore, PSCâs primary obligation under the Agreement had little to do with Kentucky: the company sent commission payments to a New York-based sales representative for sales made outside of Kentucky to commercial customers based in other states. (See id., PageID.781, 784 (describing YTAâs âterritoryâ)) In short, this matter is far from the sort of âdispute . . . centered in Kentuckyâ that typically âtrumps . . . an otherwise-valid choice of law clause.â Osborn, 865 F.3d at 444; see id. (applying Kentucky law to a trust despite an Ohio choice- of-law provision because there was âno question that Kentucky ha[d] the most significant relationshipâ to the trust (emphasis added)); Schnuerle, 376 S.W.3d at 567 (applying Kentucky law in a contract dispute despite a New York choice-of-law provision because âthere [was] no doubtâ that Kentucky had the most significant relationship to the âtransaction and the partiesâ (emphasis added)); Breeding, 633 S.W.2d at 719 (applying Kentucky law despite a Delaware choice-of-law provision because it was âpatently obviousâ that Kentucky had the most significant relationship to a contract dispute involving insurance âpurchased in Kentucky by a Kentucky resident from a Kentucky corporationâ (emphasis added)); see also Novolex Holdings, LLC v. Wurzburger, No. 19-cv-145-DLB-CJS, 2020 WL 4758360, at *5 (E.D. Ky. Aug. 17, 2020) (concluding that a Delaware choice-of-law provision âshould be enforcedâ rather than Kentucky law in part because âthere [wa]s no suggestionâ that the contract dispute at issue was âcentered predominantly in Kentuckyâ). Finally, other choice-of-law principles that a court must consider under the most- significant-relationship test weigh in favor of applying New York law here. See id. § 6(2). Although the Agreementâs choice-of-law provision is ânot necessarily determinative of the [choice-of-law] issue,â Davis, 399 F. Supp. 2d at 791, it is not wholly irrelevant either. See, e.g., Black, 2018 WL 1144592, at *5 (considering a choice-of-law provision as part of a most- significant-relationship analysis); see also Novolex, 2020 WL 4758360, at *5. Applying the same state law called for by that provision would âprotect[]â PSCâs and YTAâs âjustified expectations,â as manifested by the terms of the Agreement. Restatement (Second) § 6(2)(d); see id. § 188 cmt. b (â[T]he protection of the justified expectations of the parties is of considerable importance in contracts . . . .); see also Acuity Brands, Inc. v. Bickley, 172 F. Supp. 3d 971, 984 (E.D. Ky. 2016) (noting that applying the same state law called for by a choice-of-law provision âprotect[ed] justified expectations and promote[d] uniformityâ). And applying the state law agreed to by the parties to a sales-representative contract covering multiple statesâand thus, by extension, multiple jurisdictions with varying contract rulesâfacilitates âcertainty, predictability, and uniformity of result.â Restatement (Second) § 6(2)(f); cf. Certain Underwriters at Lloydâs, London v. Morrow, No. 1:16-cv-180-GNS-HBB, 2019 WL 3558177, at *4 (W.D. Ky. Aug. 5, 2019) (concluding that âconsiderations of certainty and uniformity of result strongly favor[ed] applying Georgia lawâ over Kentucky law â[d]espite Kentuckyâs general tendency to be âvery egocentric or protective concerning choice of law questionsââ). In sum, because of Kentuckyâs preference for applying its own law, the choice-of-law provision in the Agreement is not dispositive of which stateâs law governs the partiesâ breach-of- contract claims here. Osborn, 865 F.3d at 443. But for the reasons explained above, the Court concludes that under the applicable most-significant-relationship test, see State Farm, 413 S.W.3d at 878, those claims are governed by New York law. See Restatement (Second) § 188(1) (providing that the law of the state with the âmost significant relationship to the transaction and the partiesâ should govern âan issue in contractâ); see also Acuity Brands, Inc., 172 F. Supp. 3d at 983 (âEven Kentucky law, with its egocentric twist on choice of law rules, acknowledges that there are situations in which its laws should not be applied.â). 2. PSCâs Other Claims The choice-of-law analysis for PSCâs tortious-interference and aiding-and-abetting claims (see D.N. 31, PageID.200â02) is much more straightforward. Both claims sound in tort. See Sparkman v. Consol Energy, Inc., 571 S.W.3d 569, 571 (Ky. 2019); Insight Ky. Partners II, L.P. v. Preferred Auto. Servs., Inc., 514 S.W.3d 537, 546 (Ky. Ct. App. 2016). And for tort claims, âKentucky courts hold that âany significant contact with Kentucky is sufficient to allow an application of Kentucky law.ââ Memorial Hall Museum, Inc. v. Cunningham, 455 F. Supp. 3d 347, 358 (W.D. Ky. 2020) (emphasis in original) (quoting Reichwein v. Jackson Purchase Energy Corp., 397 S.W.3d 413, 416 (Ky. Ct. App. 2012)). Put another way, âif there are significant contactsânot necessarily the most significant contactsâwith Kentucky,â then Kentucky law should apply. Foster v. Leggett, 484 S.W.2d 827, 829 (Ky. 1972) (holding that Kentucky law applied to a case involving the death of a Kentucky resident in a car accident despite the fact that the tortfeasor was domiciled in Ohio and the fatal accident occurred in Ohio). Here, PSC is headquartered in Kentucky; PSCâs claims concern alleged agreements between YTA and Matthew Parr, a PSC salesperson based in Kentucky; and âat least some of the allegedly tortious conductâ here âtook placeâ in Kentucky, Hackney, 657 F. Appâx at 571. (See D.N. 41, PageID.402, 407â13) Given these âsignificant contactsâ with the state, Foster, 484 S.W.2d at 829, the Court thus concludes, and the parties agree, that Kentucky law governs PSCâs tortious-interference and aiding-and-abetting claims. (See D.N. 40, PageID.251, 253; D.N. 41, PageID.420 n.6) B. PSCâs Breach-of-Contract Claim Moving to the merits, the Court will first decide whether YTA is entitled to summary judgment on PSCâs breach-of-contract claim. (See D.N. 40, PageID.244â50) To prevail on that claim under New York law, PSC must prove â(1) the existence of a contract, (2) performance by the party seeking recovery, (3) nonperformance by the other party, and (4) damages attributable to the breach.â Moreno-Godoy v. Kartagener, 7 F.4th 78, 85 (2d Cir. 2021) (quoting RCN Telecom Servs., Inc. v. 202 Ctr. St. Realty LLC, 156 F. Appâx 349, 350â51 (2d Cir. 2005)); see Riccio v. Genworth Fin., 124 N.Y.S.3d 370, 372 (N.Y. App. Div. 2020). The crux of PSCâs breach-of-contract claim is that YTA âreached an agreement with Parr,â a former high-level salesperson with PSC, in which Parr worked âas a [s]ub-[a]gent for YTA to refer manufacturing and other business to non-PSC companies through YTA, in exchange for . . . sales-based commissions.â (D.N. 41, PageID.416; see D.N. 31, PageID.199; D.N. 43, PageID.941â43) According to PSC, this alleged arrangement breached the provision in the Agreement that barred PSC and YTA from âcontract[ing] with in any manner[] salespersons, employees, or individuals . . . under contract or employed [by] . . . each otherâs firm unless otherwise agreed toâ by both parties âin writing.â (D.N. 41-9, PageID.781; see D.N. 41, PageID.417) PSC contends, in other words, that the 2014 GE-Rampf referral and Parrâs alleged referral-commission agreement with YTA âbreachedâ YTAâs âcontractual obligationâ to not âcontract withâ PSC employees like Parr âin any manner.â (D.N. 41, PageID.417; see D.N. 41-9, PageID.781) In its summary-judgment motion, YTA does not dispute the Agreementâs existence or validity. (See D.N. 40, PageID.245) Nor does it challenge PSCâs interpretation of the provision prohibiting the parties from âcontract[ing] withâ each otherâs employees âin any manner.â (See D.N. 41-9, PageID.781) YTA instead contends that it is entitled to summary judgment on PSCâs breach-of-contract claim (1) because PSC has failed to show that âYTA entered into any oral or written âcontract withââ Parr and thus cannot establish any breach of the Agreement, and (2) because âPSC has failed to produce evidence of any actual damages caused by YTAâs alleged breach[es].â (D.N. 40, PageID.238, 248; see id., PageID.239â42) Starting with the former argument, the parties agree that the question of whether YTA breached the Agreement hinges on whether it formed some sort of contract with Parr. PSC argues, for instance, that the 2014 GE-Rampf referral was made pursuant to a âcommission-kickback agreementâ between YTA and Parr (D.N. 43, PageID.943); that YTA and Parr later âmemorializedâ a â[s]ub-[a]gentâ agreement under which Parr âwould route potential PSC business through YTAâ in exchange for âcommission[] kickbacksâ (D.N. 41, PageID.407, 409); and that as part of that â[s]ub-[a]gentâ agreement, YTA âused Parr as an agent for purposes of YTAâs efforts to secure a business relationship with PSCâs competitor VFM.â (Id., PageID.416) YTA, on the other hand, contends that the 2014 GE-Rampf referral âwas not a âcontractââ; that the commissions Parr received for that referral âwere a mere gratuityâ and ânot based on any agreementâ between YTA and Parr; that subsequent communications between YTA and Parr about a commission arrangement were âpreliminary discussionsâ that ânever came to fruitionâ; and that Parr ânever entered into any agreement to be employed byâ or serve as an agent for YTA. (D.N. 40, PageID.239, 241, 245) âTo create a binding contractâ in New York, âthere must be a manifestation of mutual assent sufficiently definite to assure that the parties are truly in agreement with respect to all material terms.â Tractebel Energy Mktg., Inc. v. AEP Power Mktg., Inc., 487 F.3d 89, 95 (2d Cir. 2007) (quoting Express Indus. & Terminal Corp. v. N.Y. State Depât of Transp., 715 N.E.2d 1050, 1053 (N.Y. 1999)). Put another way, there must be âan objective meeting of the minds sufficient to give rise to a binding and enforceable contract.â Express Indus., 715 N.E.2d at 1053. A âmere agreement to agree, in which a material term is left for future negotiations,â is not sufficient. Tractebel, 487 F.3d at 95 (quoting Joseph Martin, Jr., Delicatessen, Inc. v. Schumacher, 417 N.E.2d 541, 543 (N.Y. 1981)). A âpreliminary agreement,â moreover, ordinarily does not create a binding contract âwhere the parties contemplate further negotiations and the execution of a formal instrument.â Natâl Gear & Piston, Inc. v. Cummins Power Sys., LLC, 861 F. Supp. 2d 344, 355 (S.D.N.Y. 2012) (quoting Vacold LLC v. Cerami, 545 F.3d 114, 123â24 (2d Cir. 2008)). But ânot all terms of a contract need be fixed with absolute certaintyâ in order for the contract to be enforceable. Tractebel, 487 F.3d at 95 (quoting Express Indus., 715 N.E.2d at 1053)). YTA is right that PSC has not produced evidence of a formal written contract between YTA and Parr. (See D.N. 40, PageID.238; D.N. 48, PageID.990) The January 2016 email in which Parr and Yarbrough discuss the âstart of a new relationship,â for example, contains language indicating that the two were still negotiating Parrâs precise role with YTA and a proposed commission structure (see D.N. 41-10). See Natâl Gear & Piston, Inc., 861 F. Supp. 2d at 356 (noting that âpreliminary agreement[s]â generally are not binding contracts). And PSCâs assertion that YTA and Parr âmemorializedâ their arrangement in a âwritten âIndependent Contractor Agreementâ/âSub-Agent Agreementââ (D.N. 41, PageID.407) is undermined by the fact that nothing in the record shows that YTA and Parr ever finalized the terms of that written contract. (See D.N. 41-12, PageID.808; id., PageID.796 (âTake a look at the boiler plate and if OK, we can add the territory (accounts), principals involved[,] and a commission schedule.â); see also D.N. 40- 4, PageID.321â22) Two points are worth underscoring, however. First, under New York law, â[c]ontracts can be written, oral, or implied in fact.â Canât Stop Prods., Inc. v. Sixuvus, Ltd., 295 F. Supp. 3d 381, 400 (S.D.N.Y. 2018). Accordingly, âabsent a written agreementâ between YTA and Parr, a contract between them may nonetheless âbe implied where inferences may be drawn from the facts and circumstances of the case and the intention of the parties as indicated by their conduct.â Transcience Corp. v. Big Time Toys, LLC, 50 F. Supp. 3d 441, 455 (S.D.N.Y. 2014); see Amcat Glob., Inc. v. Greater Binghampton Dev., LLC, 33 N.Y.S.3d 555, 558 (N.Y. App. Div. 2016) (âIt has long been established that â[a] meeting of the minds may be inferred from [the partiesâ] acts as well as words.â (alterations in original)). In other words, whether YTA and Parr reached a âbinding agreementâ can potentially be inferred from their conduct. Beth Israel Med. Ctr. V. Horizon Blue Cross & Blue Shield of N.J., Inc., 448 F.3d 573, 582 (2d Cir. 2006); see Jemzura v. Jemzura, 330 N.E.2d 414, 420 (N.Y. 1975) (noting that a âcontract implied in factâ is âjust as binding as an express contractâ because âin the law there is no distinction between agreements made by words and those made by conductâ). And whether such an implied contract was formed âinvolves factual issues regarding the partiesâ intent and the surrounding circumstances,â which typically must be resolved by the trier of fact. Airday v. City of New York, 310 F. Supp. 3d 399, 421 (S.D.N.Y. 2018); see Deutsche Asset Mgmt., Inc. v. Callaghan, No. 01-cv-4426-CBM, 2004 WL 758303, at *16 (S.D.N.Y. Apr. 7, 2004) (âWhether or not contract formation can be implied from the partiesâ course of conduct is [a] question for the trier of fact.â); see also Amcat Glob., 33 N.Y.S.3d at 558 (âWhether an implied-in-fact contract exists will often depend on the credibility of the witnesses and its assessment by the trier of fact.â). Second, PSC need not definitively prove at the summary-judgment stage that YTA and Parr formed a âreferral/commission agreementâ of some sort. (D.N. 41, PageID.416) Rather, as the non-movant, PSC must only produce enough evidence such that âreasonable minds could differâ on the material factual question of whether such an agreement was ever reached. Henschel, 737 F.3d at 1022. PSC can therefore survive summary judgment on its breach-of-contract claim if the evidence it has produced shows a genuine factual dispute as to whether YTAâs and Parrâs conduct during and after the 2014 GE-Rampf referral indicated that they were acting pursuant to an implied contract between them. See Beth Israel, 448 F.3d at 582 (â[T]he conduct of the parties may lead to the inference of a binding agreement . . . .â); see also Airday, 310 F. Supp. 3d at 421 (denying summary judgment on a procedural-due-process claim concerning an alleged property right because the plaintiff had âdemonstrated that a factual issue exist[ed] as to whether an implied contract was createdâ). PSC has met that burden here. Consider the 2014 GE-Rampf referral. YTA does not dispute that GE first approached PSC to find a suitable âfoam-in-placeâ solution; that Parr eventually referred GE to YTA; and that YTA connected GE with one of PSCâs competitors, Rampf. (D.N. 40, PageID.239â40; see D.N. 40-4, PageID.308â10; D.N. 40-9, PageID.376) YTA likewise does not dispute that it âreward[ed]â Parr for this referral (D.N. 40, PageID.240), and the record shows that this reward came in the form of monthly âcommissionâ payments made between 2016 and 2019. (See D.N. 41-18; D.N. 41-19) Deposition testimony from PSCâs corporate representatives indicates that Parrâs referral of GE to YTA did not comport with PSCâs standard business practices: Rather than trying to find a PSC-manufactured solution for GE, or at least keeping PSC within the supply chain, Parr âcut PSC out of the dealâ entirely. (D.N. 41, PageID.418; see D.N. 41-2, PageID.446â47 (suggesting that PSC could have earned a commission for finding a solution for GE); D.N. 41-3, PageID.546) PSC underscored at oral argument that YTA never contacted PSC to confirm whether the latter approved of the GE referral or YTAâs subsequent commission payments to Parr. The record further suggests that YTA recognized that the GE referral created âa conflictâ for Parr. (D.N. 41-10, PageID.787) And Yarbrough testified during his deposition that he did not consider the GE-Rampf referral to be a âone-offâ and instead thought that YTAâs relationship with Parr could potentially âblossomâ into other opportunities. (D.N. 41-8, PageID.709) Construing this evidence and the inferences drawn from it in PSCâs favor, see Loyd 766 F.3d at 588, a reasonable jury could infer from the conduct just described that the 2014 GE-Rampf referral was made in accordance with some sort of implied referral-for- commission agreement between YTA and Parr. See Beth Israel, 448 F.3d at 582; see also Henschel, 737 F.3d at 1022 (noting that summary judgment is âinappropriateâ where âreasonable minds could differ on a material factâ). YTA contends that the two-year gap between the 2014 GE-Rampf referral and Parrâs receipt of his first commission payment in 2016 confirms that the commissions were ânot based on any agreementâ that Parr and YTA âhad reached before . . . Parr introduced YTA to GE.â (D.N. 40, PageID.245 (emphasis in original); see D.N. 42, PageID.902â03) But as PSC notes in response, the GE-Rampf job did not go into production until early 2016, and Parr likely could not have received âkickback paymentsâ for his referral âuntil YTA itself received . . . commissionsâ from Rampf. (D.N. 43, PageID.947; see D.N. 41-8, PageID.708) YTA also characterizes its commission payments to Parr as âa voluntary gratuity provided after performance,â which, as a matter of law, could not have constituted the âconsideration necessary to support a contract.â (D.N. 40, PageID.245) But the legal question of whether the commissions may properly be considered a âmere gratuityâ (id.) depends on the antecedent factual question of whether Parr referred GE to YTA with the expectation that he would receive a commission in return. (Compare id., PageID.240 (asserting that Parr âhad no financial incentive to make an introduction between YTA and the GE representativeâ), and D.N. 40-9, PageID.376 (asserting the same), with D.N. 41, PageID.411 (asserting that âParr routed the [GE] referral through YTA so that he could secure his finderâs feeâ), and D.N. 41-10, PageID.787 (mentioning âGE Rampf jobsâ while describing a potential commission arrangement between Parr and YTA)) And that factual question in turn depends in large part on Yarbroughâs and Parrâs credibility, which cannot be assessed at the summary-judgment stage. Laster, 746 F.3d at 726. PSC has also established a genuine factual dispute as to whether YTA and Parr acted pursuant to some sort of âreferral/commission agreementâ in the years after the 2014 GE-Rampf referral. (D.N. 41, PageID.417) In a January 2016 email exchange, for instance, Yarbrough and Parr discussed in detail a potential commission structure and the possibility that Parr could earn commissions from âGE or other accounts.â (D.N. 41-10, PageID.787) Yarbrough had already stated in an October 2015 email that he had been âreferredâ to a manufacturer by âour Mr. Matt Parr.â (D.N. 41-11, PageID.790) Additional email exchanges from 2018 suggest that both YTA and Parr planned to receive commissions from a specific project involving Lexmark (see D.N. 41- 13); that Parr was assigned sales accounts and a sales territory by YTA (D.N. 41-14); and that Yarbrough âplan[ned] to take [Parr] intoâ meetings with several manufacturers. (D.N. 41-17, PageID.830) YTA also does not dispute that it worked with Parr to potentially secure business with PSCâs competitor, VFM, which included arranging a visit to VFMâs facilities in 2018. (See D.N. 40, PageID.241â42; D.N. 40-4, PageID.329) While this evidence does not prove that YTA and Parr formed a contract to work together, a reasonable jury could nonetheless infer from their conduct and communications that the two parties intended for Parr to refer business to YTA in exchange for commissions. See Beth Israel, 448 F.3d at 582 (âA contract implied in fact . . . is derived from the presumed intention of the parties as indicated by their conduct.â). Even if PSC has established a genuine factual dispute as to breach, however, YTA argues that summary judgment is still warranted on PSCâs breach-of-contract claim because PSC âhas failed to produce evidence of any actual damages caused by YTAâs alleged breach[es].â (D.N. 40, PageID.248) In addition to proving breach, a plaintiff bringing a breach-of-contract claim in New York âmust still prove damages.â Moreno-Godoy, 7 F.4th at 85; see Magee-Boyle v. Reliastar Life Ins. Co. of N.Y., 105 N.Y.S.3d 90, 92 (N.Y. App. Div. 2019) (describing âdamages resulting from [a] breachâ as an âessential element[]â of a breach-of-contract claim in New York). The plaintiff âmust demonstrateâ that any claimed damages âwere caused byâ the defendantâs breach. Bausch & Lomb Inc. v. Bressler, 977 F.2d 720, 731 (2d Cir. 1992). Those damages must also be âreasonably certainâ rather than âmerely speculative, possible, and imaginary.â Tractebel, 487 F.3d at 110 (emphasis in original) (quoting Wakeman v. Wheeler & Wilson Mfg. Co., 4 N.E. 264, 266 (N.Y. 1886)). Yet ââ[c]ertainty,â as it pertains to general damages, refers to the fact of damage, not the amount.â Id. (emphasis in original). Here, assuming that YTAâs alleged arrangements with Parr breached the Agreement, PSC has sufficiently established for purposes of surviving summary judgment that it suffered some measure of damages as a result of that breach. See id. For one, it is âwell establishedâ in New York that a ânon-breaching party may recover âgeneral damages which are the natural and probable consequence of [a] breach.ââ Moreno-Godoy, 7 F.4th at 85 (quoting Kenford Co. v. Cty. of Erie, 537 N.E.2d 176, 178 (N.Y. 1989)). And PSC has offered evidence indicating it would have earned some amount in commissions on a roughly â$400,000 piece of businessâ had Parr not referred GE to YTA in 2014.11 (D.N. 41, PageID.411; D.N. 41-4, PageID.627â28; see D.N. 41-2, PageID.447 (â[PSC] would just get that commission instead of YTA. I donât know why YTA [was] involved in it.â)) Furthermore, if PSC prevails on its breach-of-contract claim, it could likely recover âattorneysâ fees and costs associated with YTAâs [alleged] wrongful conductâ under the Agreementâs indemnification provision (D.N. 41, PageID.419), which provides in relevant part that YTA will âhold [PSC] harmless against any and all claims, . . . suits, actions, . . . costs and expenses (including attorneyâs fees) arising out of or resulting from any willful or negligent act or omission of [YTA]â (D.N. 41-9, PageID.781 (emphasis added)). See Oscar Gruss & Son, Inc. v. Hollander, 337 F.3d 186, 199 (2d Cir. 2003) (noting that parties to a contract âmay agree that attorneysâ fees should be included as another form of damagesâ for a breach of that contract). And even if PSC could not âprove any damages stemming fromâ YTAâs alleged breaches, under New York law, PSC could âstill maintain its claim for breach of contractâ here and ârecover nominal damages.â Medinol Ltd. v. Boston Sci. Corp., 346 F. Supp. 2d 575, 599 (S.D.N.Y. 2004); see 11 PSC argues that if it were to prevail on its breach-of-contract claim, it would be entitled to claw back the $216,776.96 in commissions it paid to YTA between January 2016âthe âconservative starting pointâ of YTAâs alleged breachesâand August 2019, when PSC terminated the Agreement. (D.N. 41, PageID.418; see D.N. 43, PageID.951) Yet PSC cites no authority for such a remedy. (See D.N. 41, PageID.418) As a general matter, courts applying New York law have observed that â[d]isgorgement of profits is not an appropriate remedy for a breach of contractâ because disgorgement âlooks to the defendantâs ill-gotten gains, rather than to the plaintiffâs losses.â Topps Co. v. Cadbury Stani S.A.I.C., 380 F. Supp. 2d 250, 269 (S.D.N.Y. 2005); see Franconero v. Universal Music Corp., No. 02-cv-1963-BSJ, 2011 WL 566794, at *4 (S.D.N.Y. Feb. 11, 2011). Additionally, âdamages for breach of contract should put the plaintiff in the same economic position he would have been in had the defendant fulfilled the contract.â Lucente v. Intâl Bus. Machs. Corp., 310 F.3d 243, 262 (2d Cir. 2002). But if PSC were permitted to claw back YTAâs commissions, it would find itself in the enviable position of having acquired new customers and earned substantial revenue from YTAâs sales efforts without having incurred any attendant costs for such benefits. Accordingly, any commissions that PSC has already paid to YTA are not recoverable under the breach-of-contract theory asserted here. See Topps Co., 380 F. Supp. 2d at 269. Kronos, Inc. v. AVX Corp., 612 N.E.2d 289, 292 (N.Y. 1993) (âNominal damages are always available in breach of contract actions . . . .â); Perry v. McMahan, 84 N.Y.S.3d 508, 510 (N.Y. App. Div. 2018) (âIn breach of contract actions, actual damages are not an essential element, and nominal damages are recoverable to vindicate contract rights.â); see also Acumen Re Mgmt. Corp. v. Gen. Sec. Nat. Ins. Co., No. 09-cv-1796-GBD, 2012 WL 3890128, at *11 (S.D.N.Y. Sept. 7, 2012) (stating that the plaintiffâs âfailure to prove compensatory damages [did] not . . . entitle [the defendant] to summary judgmentâ on a breach-of-contract claim because the plaintiff could recover nominal damages under New York law). In sum, PSC has shown that there are genuine factual disputes as to whether YTA âcontract[ed] withâ Parr (D.N. 41-9, PageID.781)âand thus breached the Agreementâby agreeing to pay him commissions in exchange for the 2014 GE-Rampf referral and by subsequently entering into an implied âreferral/commission agreementâ of some sort. (D.N. 41, PageID.415â17) Those factual disputes cannot be resolved at the summary-judgment stage. See Henschel, 737 F.3d at 1022. YTAâs motion for summary judgment as to PSCâs breach-of-contract claim will therefore be denied. See Fed. R. Civ. P. 56(a). C. YTAâs Breach-of-Contract Counterclaim The Court will next decide whether summary judgment is warranted on YTAâs breach-of- contract counterclaim, the merits of which overlap with PSCâs breach-of-contract claim. (See D.N. 40, PageID.244â48; D.N. 41, PageID.419) YTA asserts that PSCâs failure to pay at least $62,356.10 in commissions that YTA earned under the Agreement amounts to a breach of contract.12 (D.N. 40, PageID.232, 245) YTA has offered evidence indicating that PSC stopped 12 Under the Agreement, PSC was obligated to pay a five-percent commission on all ânet salesâ that YTA secured on its behalf, and in the event the Agreement was terminated, PSC was obligated to pay commissions on any pre-termination sales for up to twelve months after the Agreementâs paying commissions in June 2019, which PSC does not dispute. (D.N. 40, PageID.237; see D.N. 40-3, PageID.288â90) According to PSC, however, YTA breached the Agreement first by forming a âreferral/commission agreementâ with Parr âyears beforeâ PSCâs alleged breach. (D.N. 41, PageID.416, 419) And PSC maintains that upon discovering YTAâs âpreexisting material breachâ in the summer of 2019, it was âdischargedâ of its âcontractual obligation to pay YTA any further commissions under the breached Agreement.â (Id., PageID.414, 418) In New York, a contract breach âexcuse[s] the nonbreaching party from further performanceâ only if the breach is âmaterial.â New Windsor Volunteer Ambulance Corps, Inc. v. Meyers, 442 F.3d 101, 117 (2d Cir. 2006); see USI Ins. Servs. LLC v. Miner, 801 F. Supp. 2d 175, 185 (S.D.N.Y. 2011) (âUnless a breach is material, the obligations of a counterparty to a contract remain effective.â). To be âmaterial,â a breach âmust go to the root of the agreement between the parties.â Bear Stearns Funding, Inc. v. Interface Grp.-Nev., Inc., 361 F. Supp. 2d 283, 295 (S.D.N.Y. 2005) (quoting Frank Felix Assocs., Ltd. v. Austin Drugs, Inc., 111 F.3d 284, 289 (2d Cir. 1997)). That is, âthe other partyâs breach of the contractâ must be âso substantial that it defeats the object of the parties in making the contract.â Barbagallo v. Marcum LLP, 925 F. Supp. 2d 275, 287 (E.D.N.Y. 2013) (quoting Frank Felix, 111 F.3d at 289). Since YTA will bear the burden of proof at trial on its breach-of-contract counterclaim, it can prevail on that claim at the summary-judgment stage only if there is no genuine factual dispute termination date. (D.N. 41-9, PageID.781â82) According to YTA, âPSCâs own records show that YTA generated revenue of approximately $1,247,122 for PSCâ between June 2019, when PSC stopped paying commissions to YTA, and August 2020, which marked âthe end of YTAâs contractual right to continue to receive commission payments.â (D.N. 40, PageID.243; see D.N. 40-2) A five-percent commission on that revenue figureâi.e., 0.05($1,247,122)âwould amount to $62,356.10. The Court also notes that YTA alleges as part of its counterclaim that it is âentitled to recover two timesâ this unpaid-commission amount under New Yorkâs labor laws. (D.N. 32, PageID.217; see D.N. 40, PageID.233 n.1) (1) that YTA did not breach the Agreement or (2) if it did, that its breach âd[id] not rise to the appropriate level of materiality to justifyâ PSCâs non-performance of its commission obligations. Bear Stearns Funding, Inc., 361 F. Supp. 2d at 291. YTA cannot prevail on the first basis because, as explained in detail above, there are several genuine factual disputes as to whether it breached the Agreement by âcontract[ing] withâ Parr. (D.N. 41-9, PageID.781) Nor can YTA prevail on the basis that none of its alleged breaches were material. Courts in New York have made clear that âin most cases, the question of materiality of breach is a mixed question of fact and lawâusually more of the former and less of the latterâand thus is not properly disposed of by summary judgment.â Bear Stearns Funding, Inc., 361 F. Supp. 2d at 295; see Teachers Ins. & Annuity Assân of Am. v. Coaxial Commcâns of Cent. Ohio, Inc., 807 F. Supp. 1155, 1160 (S.D.N.Y. 1992) (â[I]t is for the jury to determine materiality with respect to any alleged breach.â); see also Mega Grp. Inc. v. Halton, 736 N.Y.S.2d 444, 446 (N.Y. App. Div. 2002) (âWhether promises in a contract are mutually dependent upon each other such that a failure to act by one party excuses nonperformance by the other ordinarily is a question of fact.â). And here, genuine factual disputes about whether YTA breached the Agreement, the degree to which it allegedly did so, and the extent to which that alleged conduct went âto the root ofâ the Agreement preclude the Court from resolving the materiality question on summary judgment. Bear Stearns Funding, Inc., 361 F. Supp. 2d at 295 (quoting Frank Felix, 111 F.3d at 289); see id. at 296â97 (denying summary judgment on a breach-of-contract claim because the âissues relevantâ to the materiality of an alleged breach were âintensely factualâ and ânot appropriate for summary dispositionâ); see also Merrill Lynch & Co. v. Allegheny Energy, Inc., 500 F.3d 171, 186 (2d Cir. 2007) (noting that the issue of whether a party has committed a material breach âshould be decided as a matter of law only where the inferences are certainâ). In short, the Court cannot conclude as a matter of law here that YTA did not materially breach the Agreement.13 And because a material breach by YTA would have excused PSC of its obligation under the Agreement to pay additional commissions, see New Windsor Volunteer Ambulance Corps, Inc., 442 F.3d at 117, YTA has not established that PSCâs failure to pay those commissions amounted to a breach of contract. YTAâs motion for summary judgment on its breach-of-contract counterclaim will accordingly be denied.14 D. PSCâs Tortious-Interference Claim In addition to the breach-of-contract claims, YTA moves for summary judgment on PSCâs claim of tortious interference with contractual relations. (D.N. 40, PageID.250â53; see D.N. 31, PageID.200â01) Under Kentucky law, a plaintiff bringing a tortious-interference claim must show 13 YTA argues in its summary-judgment motion that PSCâs failure to pay commissions after June 2019 was not excused because âYTA substantially performed its obligations under the Agreement through the termination date.â (D.N. 40, PageID.248) Under New York law, however, determining whether a breaching party substantially performed its obligations under a contract is just another way of determining whether that partyâs breach was material. See Merrill Lynch & Co., 500 F.3d at 186 (âUnder New York law, a partyâs performance under a contract is excused where the other party has substantially failed to perform its side of the bargain or, synonymously, where that party has committed a material breach.â (emphasis added)); Barbagallo, 925 F. Supp. 2d at 287 (âConversely, a breach is not material, and the aggrieved party is not excused from performance of its obligations, if the breaching party has substantially performed his end of the contract.â). Here, the fact that YTA âpromoted and solicited orders under the Agreement for nearly eighteen years, resulting [in] millions of dollars of sales of PSCâs products and servicesâ (D.N. 40, PageID.247) certainly ârepresent[s] advanced performance of the contract in a chronological sense.â Merrill Lynch, 500 F.3d at 187. But if PSC establishes at trial that YTA formed some sort of referral-commission agreement with Parr to divert customers and business away from PSC, the Agreementâs longevity would not preclude the conclusion that such conduct on YTAâs part âdefeat[ed] the object of the parties in making the [Agreement]â and thus constituted a material breach. Id. (quoting Frank Felix, 111 F.3d at 289); see id. (âIt follows that if [one party to a contract] breached one or more warranties and the cumulative effect of such breaches was material, it did not substantially perform its side of the deal.â). 14 In concluding that summary judgment on YTAâs breach-of-contract counterclaim is not warranted because there are genuine factual disputes as to whether an earlier breach by YTA relieved PSC of its obligation to pay commissions under the Agreement, the Court necessarily concludes that summary judgment is likewise not warranted on PSCâs declaration-of-rights claim, which concerns the same unpaid commissions. (See D.N. 31, PageID.200; D.N. 40, PageID.233) (1) âthe existence of a contractâ; (2) the defendantâs âknowledge of the contractâ; (3) the defendantâs âintent to cause a breach of that contractâ; (4) that the defendantâs actions âin fact caused a breach of the contractâ; (5) that the plaintiff âsuffered damages as a result of the breachâ; and (6) that the defendant âenjoyed no privilege or justification for its conduct.â Seeger Enters. v. Town & Country Bank & Trust Co., 518 S.W.3d 791, 795 (Ky. Ct. App. 2017). âAt a minimum,â the plaintiff âmust show that a contract existed between it and a third party followed by a breach by the third party.â Griffin v. Jones, 170 F. Supp. 3d 956, 968 (W.D. Ky. 2016) (quoting CMI, Inc. v. Intoximeters, Inc., 918 F. Supp. 1068, 1079 (W.D. Ky. 1995)). According to the record here, the only contract between PSC and Parr that YTA knew about during the relevant time period, see Seeger Enters., 518 S.W.3d at 795, was a 2017 âConfidentiality Agreementâ and a near-identical 2019 âConfidentiality Agreement.â (D.N. 40- 11, PageID.396â98; D.N. 41-20, PageID.847â51; see D.N. 43, PageID.952) Those agreements largely barred Parr from disclosing âany secret, confidential or proprietary information or know- how of [PSC] . . . without [PSCâs] prior written consent.â (D.N. 41-20, PageID.848) They also prohibited him from competing âdirectly or indirectlyâ with PSC for a certain number of years âfollowing [Parrâs] termination from the [c]ompany.â (Id.) PSC asserts that â[d]espite . . . [YTAâs] knowledgeâ of these two contracts, YTA âpersisted in paying Parr commission-kickbacks and using Parr as YTAâs go-between with VFM.â (D.N. 43, PageID.952) But nowhere does PSC explain how such conduct, even if true, implicated Parrâs confidentiality agreements with PSC, nor does it identify the specific provisions in those agreements that were allegedly breached. See Griffin, 170 F. Supp. 3d at 968 (noting that an underlying breach of contract is a âminimumâ requirement for a tortious-interference claim). PSC suggests that the confidentiality agreements âprohibitedâ Parr from working for another company while employed by PSC. (D.N. 43, PageID.952; see D.N. 41, PageID.421) But the non-compete provisions that PSC appears to reference expressly applied only to Parrâs work âfollowing [his] termination from [PSC]â (D.N. 41-20, PageID.848; see D.N. 40-11, PageID.396â97); they said nothing about what Parr could or could not do while still employed by PSC. At bottom, PSC has failed to show that YTAâs conduct âcausedâ an underlying âbreach of [a] contractâ between PSC and Parr. Seeger Enters., 518 S.W.3d at 795. And that failure is fatal to its tortious-interference claim. See Griffin, 170 F. Supp. 3d at 969 (âWithout having identified a contract which was breached, [a party] cannot maintain a claim for tortious interference with contract.â); see also Ventas, Inc. v. Health Care Prop. Invârs, Inc., 635 F. Supp. 2d 612, 619 (W.D. Ky. 2009) (concluding that a tortious-interference claim âfail[ed]â because the plaintiff had not satisfied the âcritical elementâ of showing an underlying breach of contract). The Court will therefore grant summary judgment on that claim in YTAâs favor. E. PSCâs Aiding-and-Abetting Claim Finally, YTA moves for summary judgment on PSCâs claim that it aided and abetted Parrâs breach of the fiduciary duties he owed to PSC. (D.N. 40, PageID.253â56; see D.N. 31, PageID.201â02) âTo prevail on a claim of aiding and abetting a breach of fiduciary dutyâ in Kentucky, a plaintiff must prove â(1) the existence and breach of a fiduciary relationship; (2) the defendant gave the breaching party âsubstantial assistance or encouragementâ in effectuating the breach; and (3) the defendant knew that the partyâs conduct breached that fiduciary duty.â Insight Ky. Partners II, L.P. v. Preferred Auto. Servs., Inc., 514 S.W.3d 537, 546 (Ky. Ct. App. 2016). PSC claims that Parr âowed a duty of loyalty to PSCâ throughout his employment with the company and that YTA, âover the course of years[,] encouraged and assisted Parr in acting for [his] personal (and YTAâs separate) interestsâ despite knowing that such self-serving conduct âconflict[ed]â with Parrâs fiduciary duties. (D.N. 41, PageID.422â23) YTA contends that it is entitled to summary judgment on PSCâs aiding-and-abetting claim because there is no evidence indicating that YTA knew that Parr was a fiduciary; that YTA âprovided âsubstantial assistanceââ to Parr âin breaching any alleged duty of loyalty to PSCâ; or that PSC suffered any damages ââdirectly attributableâ to YTAâs allegedly tortious conduct.â (D.N. 40, PageID.254â255) To the extent that PSCâs aiding-and-abetting claim is based on the 2014 GE-Rampf referral, PSC has produced evidence showing genuine disputes of material fact sufficient to defeat summary judgment. See Laster, 746 F.3d at 726. To prevail on its claim, PSC would first need to establish that Parr breached a fiduciary duty. See Insight Ky., 514 S.W.3d at 546. PSC contends that âParr owed a duty of loyalty to PSC,â including at the time of the 2014 GE-Rampf referral (D.N. 41, PageID.422), which YTA does not dispute.15 See ATC Distrib. Grp., Inc. v. Whatever It Takes Transmissions & Parts, Inc., 402 F.3d 700, 715 (6th Cir. 2005) (âThere is no per se rule in Kentucky that a âmereâ salesperson cannot owe a fiduciary duty to his or her employer.â). And there is a genuine factual dispute as to whether Parr breached that duty by cutting his employer out of a $400,000 business opportunity in exchange for undisclosed commissions from another company. See Invesco Institutional (N.A.), Inc. v. Johnson, 500 F. Supp. 2d 701, 709 (W.D. Ky. 15 YTA asserts in its summary-judgment motion that PSC âhas limitedâ its aiding-and-abetting claim âto dates afterâ Parr âwas promoted to a âhigh-level PSC sales managerâ starting in 2015,â a time period that would exclude the 2014 GE-Rampf referral. (D.N. 40, PageID.254) But PSCâs allegations and arguments are not so limited. PSC alleged in its amended complaint that the GE referral âconstituted self-dealing and a breach of [Parrâs] fiduciary obligations to PSC.â (D.N. 31, PageID.202) And among the damages that PSC seeks as part of its aiding-and-abetting claim are the commissions that YTA earned as a result of the 2014 GE-Rampf referral (see D.N. 41, PageID.424), which would not be recoverable if they were not attributable to an underlying breach of Parrâs fiduciary duties. See Baptist Physicians Lexington, Inc. v. New Lexington Clinic, P.S.C., 436 S.W.3d 189, 201 (Ky. 2013). PSC therefore argues, albeit indirectly, that Parr owed it fiduciary duties at the time of the 2014 GE-Rampf referral, and YTA does not contest the merits of that assertion in its summary-judgment motion. 2007) (âWhere a fiduciary relationship exists, the fiduciary is obligated to remain âloyal and faithfulâ to the principalâs interest, and cannot âlawfully serve or acquire any private interest of his own in opposition to it.ââ). According to deposition testimony from Parr, he referred GE to YTA simply because he wanted to help his customer, and he did not expect any financial reward in return. (See D.N. 40-9, PageID.376) Parr also testified that the commission payments he subsequently received from YTA were âapprovedâ by his manager at PSC. (Id., PageID.374) But PSC has produced evidence indicating that Parrâs referral of the GE job to another company was both surreptitious and detrimental to PSCâs business interests (see D.N. 41-2, PageID.445â47). See Invesco, 500 F. Supp. 2d at 709 (noting that fiduciaries cannot act âin opposition toâ the principalâs interests). And PSC contends that it did not âdiscover[]â YTAâs âcommission kickbacksâ to Parr until the summer of 2019 (D.N. 41, PageID.413; see D.N. 41-4, PageID.598; D.N. 41-18; D.N. 41-19), suggesting that Parr accepted commissions from another company for several years without disclosing them to his employer. See ClubSpecialists Intâl, LLC v. Keeneland Assân, Inc., No. 5:16-cv-345-KKC, 2018 WL 2050134, at *7 (E.D. Ky. May 2, 2018) (concluding that an employeeâs acceptance of payments from another company and, âmore importantly,â his failure to disclose them âbreached his fiduciary duty to [his employer]â). If the 2014 GE-Rampf referral did breach Parrâs duty of loyalty to PSC, then there is a genuine factual dispute as to whether YTA âsubstantial[ly] assist[ed] or encourage[d]â that breach, Insight Ky., 514 S.W.3d at 546, by enticing Parr with promises of commissions. See ClubSpecialists Intâl, 2018 WL 2050134, at *7 (concluding that secret payments made by one company to another companyâs employee âconstituted âsubstantial assistance or encouragementââ). That YTA paid Parr commissions is undisputed (see D.N. 41-18; D.N. 41-19), but whether those commissions were a post-referral reward or instead made pursuant to a pre- referral agreement is not (see D.N. 40-4, PageID.308â09, 314). There is also a genuine factual dispute as to whether YTA âknewâ that the 2014 GE-Rampf referral would breach Parrâs fiduciary duties, Insight Ky., 514 S.W.3d at 546: Yarbrough acknowledged in a January 2016 email to Parr, for example, that âGE was also a conflict for [Parr]â given his position with PSC at the time. (D.N. 41-10, PageID.787) PSC cannot, however, base its aiding-and-abetting claim on any of the interactions between YTA and Parr that took place after the 2014 GE-Rampf referral. (See D.N. 41, PageID.423â24; D.N. 43, PageID.954â55) âKentucky follows the Restatement (Second) of Torts, § 876 in defining the elements ofâ aiding and abetting a breach of fiduciary duty. Insight Ky., 514 S.W.3d at 546. That section provides in turn that a party is âsubject to liabilityâ for any âharm resulting to a third personâ because of that partyâs aiding and abetting. Restatement (Second) of Torts § 876 (Am. Law Inst. 1979) (emphasis added). But here, PSC has failed to show how YTAâs post-referral discussions with Parr about a commission arrangement (see D.N. 41-10; D.N. 41-12) or its use of Parr to âreach a business arrangement with VFMâ (D.N. 43, PageID.955) ended up harming PSC in any way. For example, PSC conceded in a deposition that, beyond the 2014 GE-Rampf referral, it was not aware of âany business . . . that was diverted from PSC to another company as a result of . . . Parr and YTAâs efforts.â (D.N. 41-2, PageID.453; see id., PageID.252â54) Nor did PSC âuncover any business that was actually diverted from PSC as a result of th[e] proposed relationshipâ between YTA and VFM. (Id., PageID.453â54) Thus, as to YTAâs alleged arrangements with Parr following the 2014 GE-Rampf referral, there is no âharm resulting to [PSC]â for which YTA can be held liable. Restatement (Second) of Torts § 876. Because genuine disputes of material fact preclude the Court from determining whether the 2014 GE-Rampf referral amounted to YTA aiding and abetting a breach of fiduciary duties, YTAâs summary-judgment motion on PSCâs aiding-and-abetting claim will be denied. See Fed. R. Civ. P. 56(a). But at trial, that claim will be limited solely to the 2014 GE-Rampf referral because PSC has failed to show that it was harmed by any post-referral interactions between YTA and Parr. See Restatement (Second) of Torts § 876. IV. PSC separately moves for summary judgment on all of its claims against YTA and for summary judgment in its favor on YTAâs counterclaim. (See D.N. 41, PageID.402) The Court must âevaluateâ PSCâs motion âon its own merits.â McKay, 823 F.3d at 866. But given the extensive analysis above, the Court can dispose of PSCâs motion in short order. As to its breach-of-contract claim, PSC argues that summary judgment is warranted in its favor because the âundisputed recordâ establishes that YTA breached its obligation under the Agreement not to contract with PSC employees like Parr. (D.N. 41, PageID.417; see D.N. 41-9, PageID.781) But as explained in detail above, several genuine factual disputes remain as to whether the 2014 GE-Rampf referral was made pursuant to some sort of contract between YTA and Parr and whether they ever formed a âreferral/commission agreementâ as PSC alleges. (D.N. 41, PageID.416) For instance, Parr testified in a deposition that he was never entitled to a finderâs fee for referring the GE job to YTA (D.N. 40-9, PageID.376), and Yarbrough testified that the proposed commission arrangements between Parr and YTA ânever materializedâ (D.N. 40-4, PageID.322). Deciding whether these assertions should be believed is a task for a jury. Laster, 746 F.3d at 726. PSC is not entitled to summary judgment on YTAâs breach-of-contract counterclaim for similar reasons. PSC does not dispute that it failed to pay YTA tens of thousands of dollars in commissions that the latter otherwise earned under the Agreement. (See D.N. 40, PageID.245; D.N. 40-3, PageID.288â90) PSC instead maintains that it was ârelieved of its contractual obligation[]â to pay those commissions upon discovering YTAâs âpreexisting material breachâ of the Agreement. (D.N. 41, PageID.414, 419) Yet as discussed above, whether YTA breached the Agreement at all, and whether any breaches were material such that PSCâs non-performance was excused, are questions of fact that cannot be resolved on the current record.16 The Court concluded above that it will grant YTAâs motion for summary judgment on PSCâs tortious-interference claim, which necessarily means that PSCâs summary-judgment motion will be denied as to that claim. And summary judgment in PSCâs favor on its aiding-and-abetting claim is likewise precluded by genuine disputes of material fact. See Fed. R. Civ. P. 56(a). For instance, as explained above, there is a genuine factual dispute as to whether Parr breached his duty of loyalty to PSC when he referred the GE job to YTA in exchange for commissions. (See, e.g., D.N. 40-9, PageID.374 (asserting that Parrâs âagreementâ with YTA to receive âfinderâs feesâ was âapprovedâ by Parrâs then-manager at PSC)) There is also a genuine factual dispute as to whether YTA âknewâ that the 2014 GE-Rampf referral breached Parrâs fiduciary duties. Insight Ky., 514 S.W.3d at 546. Yarbrough testified in a deposition, for example, that he thought the commissions YTA paid to Parr were âokay to doâ (D.N. 40-4, PageID.311), yet in a January 2016 email, Yarbrough acknowledged that the GE referral was a âconflict for [Parr]â given his âsituationâ as a PSC salesperson at the time (D.N. 41-10, PageID.787). 16 The Courtâs conclusion that genuine factual disputes preclude summary judgment in PSCâs favor on YTAâs breach-of-contract counterclaim necessarily means that PSC is not entitled to summary judgment on its declaration-of-rights claim. (See D.N. 31, PageID.200 (alleging that PSC is âentitled to a declaration of rightsâ as to âwhether YTA is entitled to any further commissions despite its material breaches of the Agreementâ)) PSC has not shown that it is âentitled to judgment as a matter of lawâ on any of the claims at issue here. Fed. R. Civ. P. 56(a). Its motion for summary judgment will therefore be denied in its entirety. V. For the reasons set forth above, and the Court being otherwise sufficiently advised, it is hereby ORDERED as follows: (1) YTAâs motion for partial summary judgment (D.N. 40) is GRANTED in part and DENIED in part. It is GRANTED as to PSCâs claim of tortious interference with contractual relations (Count III). The motion is DENIED as to PSCâs claims of breach of contract and aiding and abetting a breach of a fiduciary duty (Counts I and IV) and PSCâs claim for a declaration of rights under the Agreement (Count II). YTAâs motion is also denied as to its counterclaim for breach of contract. (2) PSCâs motion for summary judgment (D.N. 41) is DENIED. (3) The Court requests that Magistrate Judge Regina S. Edwards (see D.N. 6) conduct a status conference with the parties to set a final trial schedule and, at her discretion, a settlement conference. August 22, 2022 David J. Hale, Judge United States District Court 39
Case Information
- Court
- W.D. Ky.
- Decision Date
- August 22, 2022
- Status
- Precedential