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SUFFOLK, s s .

'--" /;' .'. " / I./ c ~ ' , - t-_ \ - i/ rt-JCOMMONWEALTH OF MASSACHUSETTSSUPERIOR COURTCIVIL ACTIONNO. 2006-02667-BLS1

GIOVANNA PASQUALEY..

BRODY, HARDOON, PERKINS & KESTEN, LLP. 1

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MEMORANDUM QF DECISION AND ORDER ON DEFENDANT BRODY,HARDOON, PERKINS & KESTEN, LLP'S MOTION TO DISMISSTHE PLAINTIFF'S THIRD AMENDED COMPLAINT

In th i s two count ac t ion , Giovanna Pasquale a l l eges breach off i duc i a ry duty and aiding and abe t t ing breach of f iduciary dutyaga in s t the law f irm of Brody, H ardoon, Perkins , Kesten, LLP(Brody Hardoon).

Cur ren t ly before the Court i s Brody Hardoon' s motion fo rjudgment on the plead ings pursuant to Mass. R. Civ. P. 12 (c) .Afte r hear ing argument, the Court allows the mot ion fo r thefo l lowing reasons .

BACKGROUNDIn assessing Brody Hardoon' s motion' fo r judgment on the

plead ings , the Court accepts as t rue the fo l lowing f ac tua la ss e: ct io n s c on ta in ed in Pasquale 1 s Third Amended Complaint . See

lThis ac t ion was o r ig ina l l y s ty led Pasquale VB. Telcom USA,Inc . , with the same c iv i l act ion number. In August 2009, a f t e rc la ims a ga in st o th er defendants had been reso lved or re nd ered moot,the Court d i rec t ed the p l a i n t i f f to f i l e a Third Amended Complainta l leg ing claims remaining aga ins t Brody , Hardoon , Perkins & Kesten,LLP.

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Flomenbaum v. Commonwealth, 451 Mass. 740, 742 (2008).Telcom USA, Incorpora ted (Telcom USA), i s a c lose ly he ld

Massachuse t t s co rpo ra t i on t h a t was formed in 1996 when Pasquale andher husband, Daniele La Pos ta , en te red in to a s e r i e s of agreementswith Telcorn SpA (Telcom I t a l y ) . (Third Am. Compl. a t pa r . 3 .)

. . Telcorn I t a l y i s owned and con t ro l l ed by Alfonso Casa l e . (Third Am.Compl. a t pa r . 4.)During t h e i r nego t i a t ions in 1996, Casa le , Pa:3quale and La

Posta agreeq t h a t Telcom I t a l y would rece ive a smal l majo r i tyi n t e r e s t in Telcom USA (50.S pe r cen t i n t e r e s t compared toPasqua le ' s 49.5 per cen t) and, in exchange, t h a t Pasqua le and LaPos ta would r e t a i n management con t ro l of th e co rpo ra t ion . (Thi rdAm. Compl. a t pa r . 5 .) Pursuant to t h a t agreement , La Posta thenen te red i n to an employment agreement to become P res id en t o f th eTelcom USA, and, from 1996 un t i l 2004, Pasquale se rved as itsTrea su re r . (Third Am. Compl. a t pa r . 6 .) In add i t ion , La Pos taand Pasquale became members of th e Board of Direc to r s .

'Compl. a t par . 6.)(Third Am.

Also as pa r t of th e nego t i a t ions , Pas 'quale and Casa l e , onbeha l f of Telcom I t a l y , executed a shareholders agreement . (ThirdAm. Compl: a t pa r . 7 .) T hat ag reem ent provided in pa r t t h a t ,absen t "unanimous consent of th e s tockholders to the con t ra ry , a tl e a s t 50% of th e net p ro f i t s and d iv id en ds o f Telcom USA s h a l l bed is tT ibu ted a t l e a s t annual ly to the shareholders" in propo r t i on to

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t h e i r percentage ownership o f th e company.pars . 8 .)

(Third Am. Compl. a t

From 1996 to 2001, La Posta grew Telcom USA from $1 in s a l e sto $20 m ill ion in s a l e s , and, by the end o f 2001, the co rpo ra t ionhad a f a i r market value o f $14 mil l ion .11.)

(Third Am. Campl. a t par .

I n a p pr ox im a te ly September 2001, Brody Hardoon was r e t a ined as