From: <Saved by Windows Internet Explorer 7>
Subject: Rather v CBS Corp. (2009 NY Slip Op 06738)
Date: Mon, 5 Oct 2009 11:25:14 -0500
MIME-Version: 1.0
Content-Type: text/html;
	charset="Windows-1252"
Content-Transfer-Encoding: quoted-printable
Content-Location: http://www.courts.state.ny.us/reporter/3dseries/2009/2009_06738.htm
X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.5579

<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML><HEAD><TITLE>Rather v CBS Corp. (2009 NY Slip Op 06738)</TITLE>
<META http-equiv=3DContent-Type content=3D"text/html; =
charset=3Dwindows-1252">
<STYLE>BODY {
	FONT-SIZE: larger; FONT-FAMILY: "Times New Roman", Times, serif
}
P {
	TEXT-INDENT: 2em; LINE-HEIGHT: 150%
}
</STYLE>

<META content=3D"MSHTML 6.00.6000.16788" name=3DGENERATOR></HEAD>
<BODY bgColor=3D#ffffff>
<TABLE cellSpacing=3D2 cellPadding=3D5 width=3D"80%" align=3Dcenter =
bgColor=3D#ffff80=20
border=3D1>
  <TBODY>
  <TR>
    <TD align=3Dmiddle><B>Rather v CBS Corp.</B></TD></TR>
  <TR>
    <TD align=3Dmiddle>2009 NY Slip Op 06738</TD></TR>
  <TR>
    <TD align=3Dmiddle>Decided on September 29, 2009</TD></TR>
  <TR>
    <TD align=3Dmiddle>Appellate Division, First Department</TD></TR>
  <TR>
    <TD align=3Dmiddle>Catterson, J.</TD></TR>
  <TR>
    <TD align=3Dmiddle><FONT color=3D#ff0000>Published by <A=20
      href=3D"http://www.courts.state.ny.us/reporter/">New York State =
Law=20
      Reporting Bureau</A> pursuant to Judiciary Law =A7 =
431.</FONT></TD></TR>
  <TR>
    <TD align=3Dmiddle><FONT color=3D#ff0000>This opinion is uncorrected =
and=20
      subject to revision before publication in the Official=20
  Reports.</FONT></TD></TR></TBODY></TABLE><BR><BR>Decided on September =
29, 2009=20
<BR>
<DIV align=3Dcenter>SUPREME COURT, APPELLATE DIVISION</DIV>First =
Judicial=20
Department <BR>Luis A. Gonzalez, P.J. <BR>John T. Buckley <BR>James M. =
Catterson=20
<BR>James M. McGuire <BR>Dianne T. Renwick, JJ. <BR>475-475A-475B-475C=20
<BR>603121/07=20
<DIV align=3Dcenter></DIV><BR><BR><BR>
<DIV align=3Dcenter><B><FONT size=3D+1><FONT =
color=3D#ff0000>[*1]</FONT>Dan Rather,=20
Plaintiff-Respondent-Appellant, <BR><BR>v<BR><BR>CBS Corporation,=20
Defendant-Appellant-Respondent, Viacom, Inc., et al., =
Defendants-Respondents.=20
</FONT></B></DIV><BR><BR>
<P>Plaintiff Dan Rather appeals from a judgment of the Supreme Court, =
New York=20
County (Ira Gammerman, J.H.O.), entered April 14, 2008, dismissing the =
complaint=20
as against the individual defendants, and bringing up for review an =
order, same=20
court and J.H.O., entered April 11, 2008, which, inter alia, granted =
defendants'=20
motion to dismiss the complaint to the extent of dismissing the causes =
of action=20
for fraud, breach of the implied covenant of fair dealing, and tortious=20
interference with prospective business relations, and denied the motion =
to the=20
extent it sought to dismiss the causes of action for breach of contract =
and=20
breach of fiduciary duty, and from a judgment, same court and J.H.O., =
entered=20
September 30, 2008, dismissing the amended complaint as against Viacom, =
Inc. and=20
dismissing the causes of action for fraud and tortious interference with =

contract as against CBS Corporation, and bringing up for review <FONT=20
color=3D#ff0000>[*2]</FONT>an order, same court and J.H.O., entered =
September 23,=20
2008, which granted CBS and Viacom's motion to the extent it sought to =
dismiss=20
the causes of action for fraud and tortious interference with contract =
and=20
denied the motion to the extent it sought to dismiss the cause of action =
for=20
breach of fiduciary duty. Cross appeals from the aforesaid orders.=20
<BR><BR><BR>Weil, Gotshal &amp; Manges LLP, New York (James W. =
<BR>Quinn, Mindy=20
J. Spector and <BR>Yehudah L. Buchweitz of <BR>counsel), and CBS Law=20
<BR>Department, New York (Anthony <BR>M. Bongiorno and Mary =
<BR>Catherine Woods=20
of counsel), <BR>for appellant-respondent and <BR>respondents. =
<BR>Sonnenschein=20
Nath &amp; Rosenthal LLP, New York <BR>(Martin R. Gold, Gary =
<BR>Meyerhoff,=20
Edward J. Reich, Daniel <BR>Pancotti, and Zhubin Parang <BR>of counsel), =
for=20
respondent-<BR>appellant. <BR><BR><BR><BR><BR>CATTERSON, J.=20
<P>This action asserting breach of contract and related tort claims =
arises out=20
of a September 8, 2004 broadcast that plaintiff Dan Rather narrated on =
the CBS=20
60 Minutes II television program about then President George W. Bush's =
service=20
in the Texas Air National Guard. Rather alleges that CBS disavowed the =
broadcast=20
after it was attacked by Bush supporters, and fraudulently induced him =
to=20
apologize personally for the broadcast on national television as well as =
to=20
remain silent as to his belief that the broadcast was true. Rather =
alleges that,=20
following President Bush's re-election, CBS informed him that he would =
be=20
removed as anchor of the CBS Evening News. Rather claims that although =
his=20
employment agreement required that, in the event he was removed as =
anchor, CBS=20
would make him a regular correspondent on 60 Minutes or immediately pay =
all=20
amounts due under the agreement and release him to work elsewhere, CBS =
kept him=20
on the payroll while denying him the opportunity to cover important news =
stories=20
until May 2006 when it terminated his contract, effective June 2006.=20
<P>Rather commenced this action against CBS Corporation, Viacom Inc., =
and=20
individual defendants Leslie Moonves, Sumner Redstone and Andrew Heyward =
in=20
September 2007. He asserted, inter alia, claims of breach of contract =
and breach=20
of fiduciary duty against CBS; claims of fraud against CBS and the =
individual=20
defendants and a claim of tortious inducement of breach of contract =
against=20
Viacom and the individual defendants.=20
<P>Now, Rather appeals and defendants CBS Corporation and Viacom Inc.=20
cross-appeal from orders entered by Supreme Court on April 11, 2008 and=20
September 25, 2008, which granted defendants' motion to dismiss the =
claims for=20
fraud, breach of the implied covenant of good faith and fair dealing and =

tortious interference with contract, and denied defendants' motion to =
dismiss=20
the claims for breach of contract and breach of fiduciary duty.=20
<P>For the reasons set forth below, this Court finds that the motion =
court erred=20
in denying the defendants' motion to dismiss the claims for breach of =
contract=20
and breach of fiduciary duty<B>, </B>and <FONT=20
color=3D#ff0000>[*3]</FONT>therefore we find the complaint must be =
dismissed in=20
its entirety.=20
<P>As a threshold matter, we find that Rather's appeal from the portion =
of the=20
April 11, 2008 order that dismissed his fraud claims against the =
individual=20
defendants was not rendered academic by his service of an amended =
complaint=20
against the remaining defendants. <I>See Velez v. Feinstein</I>, 87 =
A.D.2d 309,=20
312-313, 451 N.Y.S.2d 110, 113 (1982), <I>lv. dismissed in part</I>, =
<I>denied=20
in part</I>, 57 N.Y.2d 737, 454 N.Y.S.2d 987, 440 N.E.2d 1334 (1982)<B>. =

</B>Moreover, for reasons set forth below, we find that Rather's service =
of a=20
second amended complaint does not render moot his cross appeal from that =
portion=20
of the September 25, 2008 order that dismissed his fraud claim. On the =
record=20
before us, we assume, without deciding, that Rather's claim of breach of =
the=20
implied covenant of good faith and fair dealing asserted as against CBS =
in the=20
original complaint may also properly be reviewed. <A=20
href=3D"http://www.courts.state.ny.us/reporter/3dseries/2004/2004_05218.h=
tm"=20
target=3D_blank><I>cf. O'Ferral v. City of New York</I>, 8 AD3d 457</A>, =
459, 779=20
N.Y.S.2d 90, 91 (1st Dept. 2004) (since court granted leave to file =
amended=20
complaint that superseded original complaint, issue of disposition of =
claim=20
included in original but not in amended complaint is academic).=20
<P>At the outset, we find that Supreme Court erred in declining to =
dismiss=20
Rather's breach of contract claim against CBS. Rather alleges that he =
delivered=20
his last broadcast as anchor of the CBS Evening News on March 9, 2005, =
and that,=20
since he was only nominally assigned to 60 Minutes II and then 60 =
Minutes, he=20
should have received the remainder of his compensation under the =
agreement in=20
March 2005. Rather claims that, in effect, CBS "warehoused" him, and =
that, when=20
he was finally terminated and paid in June 2006, CBS did not compensate =
him for=20
the 15 months "when he could have worked elsewhere." This claim attempts =
to=20
gloss over the fact that Rather continued to be compensated at his =
normal CBS=20
salary of approximately $6 million a year until June 2006 when the =
compensation=20
was accelerated upon termination, consistent with his contract.=20
<P>Contractually, CBS was under no obligation to "use [Rather's] =
services or to=20
broadcast any program" so long as it continued to pay him the applicable =

compensation. This "pay or play" provision of the original 1979 =
employment=20
agreement was specifically reaffirmed in the 2002 Amendment to the =
employment=20
agreement.=20
<P>That Amendment also provided, in subparagraph 1(g), that if CBS =
removed=20
Rather as anchor or co-anchor of the CBS Evening News and failed to =
assign him=20
as a correspondent on 60 Minutes II or another mutually agreed upon =
position,=20
the agreement would be terminated, Rather would be free to seek =
employment=20
elsewhere, and CBS would pay him immediately the remainder of his weekly =

compensation through November 25, 2006.=20
<P>We agree that subparagraph 1(g) must be read together with the =
subparagraph=20
1(f), which provided that if CBS removed Rather from the CBS Evening =
News, it=20
would assign him to 60 Minutes II "as a full-time Correspondent," and if =
60=20
Minutes II were canceled, it would assign him to 60 Minutes as a =
correspondent=20
"to perform services on a regular basis." However, this construction =
does not=20
render any language of the agreement inoperative, since, consistent with =
the=20
"pay or play" clause, neither subparagraph 1(g) nor 1(f) requires that =
CBS=20
actually <I>use</I> Rather's services or broadcast any programs on which =
he=20
appears, but simply retains the option of accelerating the payment of =
his=20
compensation under the agreement if he is not <I>assigned</I> to <FONT=20
color=3D#ff0000>[*4]</FONT>either program.=20
<P>It is clear that subparagraph 1(g) applies only to a situation where =
CBS=20
removed Rather as anchor of CBS Evening News and then failed to assign =
him "as a=20
Correspondent on 60 Minutes II." The amended complaint alleges that when =
Rather=20
no longer performed anchor duties at CBS, he was assigned to 60 Minutes =
II.=20
Thus, Rather implicitly concedes that CBS fully complied with =
subparagraph 1(g).=20

<P>Supreme Court erred in finding that subparagraph 1(g) modified the =
"pay or=20
play" provision when it ignored the initial prefatory clause to the rest =
of that=20
subparagraph, which states "[e]xcept as otherwise specified in this =
Agreement."=20
As the defendants correctly assert, the seven words are crucial because =
they=20
require subparagraph 1(g) to be read together with the "pay or play" =
provision,=20
and thus, subparagraph 1(g) cannot modify the "pay or play" provision to =
mean=20
that CBS must utilize Rather in accordance with some specific standard =
by=20
featuring him in a sufficient number or types of broadcasts. As the =
defendants=20
aptly observed, "the notion that a network would cede to a reporter =
editorial=20
authority to decide what stories will be aired is absurd."=20
<P>Rather's claim for lost business opportunities due to CBS's failure =
to=20
release him to seek other employment is insufficiently supported. Since, =

according to Rather's own allegations, an immediate result of the =
September 8,=20
2004 broadcast was criticism that he was biased against Bush, it would =
be=20
speculative to conclude that any action taken by CBS would have alone=20
substantially affected his market value at that time. Rather's claim for =
damages=20
for loss of reputation arising from the alleged breach of contract is =
not=20
actionable. <I>Dember Constr. Corp. v. Staten Is. Mall</I>, 56 A.D.2d =
768, 392=20
N.Y.S.2d 299 (1st Dept. 1977).=20
<P>Rather's cause of action for breach of fiduciary duty must also be =
dismissed.=20
Supreme Court held that the issue of "whether a fiduciary duty has been =
created=20
in the course of the long relationship between Rather and CBS is really =
a=20
question of fact." Previously, the court determined that "the length of=20
[Rather's] contractual relationship with [CBS], and the nature of the =
service=20
that [Rather] performed under his contracts" created an issue of fact =
that could=20
not be resolved on motion. This was error.=20
<P>Rather claims that his "four-decade history" with CBS constituted a =
"special=20
relationship that imposed fiduciary duties upon CBS toward [Rather]." =
The law in=20
this Department, and indeed enunciated in every reported=20
appellate-division-level case, is that employment relationships do not =
create=20
fiduciary relationships. Simply put, "[the employer] did not owe =
plaintiff, as=20
employee, a fiduciary duty." <A=20
href=3D"http://www.courts.state.ny.us/reporter/3dseries/2007/2007_03352.h=
tm"=20
target=3D_blank><I>Angel v. Bank of Tokyo-Mitsubishi, Ltd.</I>, 39 AD3d =
368</A>,=20
370, 835 N.Y.S.2d 57, 60 (1st Dept. 2007), <I>citing Weintraub v.=20
Phillips</I>,<I> Nizer, Benjamin, Krim &amp; Ballon</I>, 172 A.D.2d 254, =
568=20
N.Y.S.2d 84 (1st Dept. 1991); <A=20
href=3D"http://www.courts.state.ny.us/reporter/3dseries/2006/2006_03758.h=
tm"=20
target=3D_blank><I>see Schenkman v. New York Coll. Of Health =
Professionals</I>, 29=20
AD3d 671</A>, 672, 815 N.Y.S.2d 159, 161 (2d Dept. 2006) ("[employees] =
failed to=20
plead any facts demonstrating how the arm's-length, employer-employee=20
relationship [...] gave rise to any fiduciary duty."); <A=20
href=3D"http://www.courts.state.ny.us/reporter/3dseries/2004/2004_02154.h=
tm"=20
target=3D_blank><I>Cuomo v. Mahopac Natl. Bank</I>, 5 AD3d 621</A>, 622, =
774=20
N.Y.S.2d 779, 780 (2d Dept. 2004), <I>lv. denied</I>, 3 NY3d 607, 785 =
N.Y.S.2d=20
25, 818 N.E.2d 667 (2004).=20
<P>The length of Rather's tenure at CBS is irrelevant to, and does not =
support,=20
this claim of a <FONT color=3D#ff0000>[*5]</FONT>fiduciary relationship =
(<I>see=20
e.g.</I>, <I>Michnick v. Parkell Prods.</I>, 215 A.D.2d 462, 626 =
N.Y.S.2d 265=20
(2d Dept. 1995)), nor does Rather's status as "the public face of CBS =
News after=20
Walter Cronkite retired [...]." <I>See e.g. Maas v. Cornell Univ.</I>, =
245=20
A.D.2d 728, 666 N.Y.S.2d 743 (3d Dept. 1997).=20
<P>Supreme Court's reliance on <I>Apple Records v. Capitol Records</I> =
(137=20
A.D.2d 50, 529 N.Y.S.2d 279 (1st Dept. 1988)) and <I>Wiener v. Lazard =
Freres=20
&amp; Co.</I> (241 A.D.2d 114, 672 N.Y.S.2d 8 (1st Dept. 1998)), was =
also error.=20
Unlike in <I>Apple Records</I>, where fledgling musicians ultimately =
became a=20
worldwide music phenomenon known as the Beatles, Rather was an =
established=20
correspondent represented by a leading talent agent, who negotiated a =
contract=20
that was extensively amended several times, that paid Rather a lucrative =
salary,=20
and that detailed, in 50 pages, everything from his assignments and =
on-air work=20
at CBS Evening News to requirements that he attend rehearsals and join =
the=20
union. <I>See Faulkner v Arista Records LLC</I>, 602 F.Supp.2d 470, 484=20
(S.D.N.Y. 2009) ("there are no facts here to suggest that the dealings =
between=20
the Rollers and Arista were anything other or more than garden-variety =
arm's=20
length transactions").=20
<P>The <I>Apple Records</I> court also made plain that the defendant was =
not=20
only the exclusive distributor of and manufacturer of the Beatles' =
recordings=20
but also that the Beatles "entrusted their musical talents" to the =
defendant=20
over a period of many years commencing when the Beatles were "still=20
unacclaimed." <I>Apple Records</I>, <I>supra</I>, 137 A.D.2d at 57, 529 =
N.Y.S.2d=20
at 283. No such exclusive distributor relationship exists in the instant =
case.=20
(<I>See e.g. Zimmer-Masiello, Inc. v. Zimmer, Inc.</I>, 159 A.D.2d 363, =
552=20
N.Y.S.2d 935 (1st Dept. 1990)), nor can Rather argue that he "entrusted" =
his=20
particular talents to CBS. Indeed, it may well be that <I>Apple =
Records</I> will=20
remain a singular holding because of its application to a phenomenon=20
(unacclaimed artists who were also unsophisticated businessmen thrust to =
the=20
pinnacle of success at warp speed) that's not likely to be seen again, =
not even=20
on American Idol.=20
<P>Similarly, Supreme Court improperly relied on <I>Wiener</I>, where we =
found=20
that the plaintiff specifically alleged that employees of the defendant =
acted on=20
the plaintiff's behalf in conducting negotiations with a bank, and that =
they=20
relied on the defendant's "expertise and reputation" as well as certain=20
connections inside the management of the bank. 241 A.D.2d at 123, 672 =
N.Y.S.2d=20
at 15. It simply cannot be argued that CBS acted as Rather's agent when =
Rather=20
employed his own agent to negotiate with CBS for Rather's benefit. Any =
claim to=20
the contrary is belied by both the evidence and common sense.=20
<P>We affirm dismissal of Rather's fraud claims against CBS and the =
individual=20
defendants although we find that Supreme Courterred in its rationale for =
the=20
dismissal as it also erred in rejecting the defendants' other challenges =
to the=20
fraud claim.=20
<P>We take judicial notice of Rather's second amended complaint =
(hereinafter=20
referred to as "SAC") filed by leave of Supreme Court on July 27, 2009, =
and by=20
separate order, as a matter of discretion in the interest of judicial =
economy,=20
we deny Rather's motion to withdraw that portion of his appeal relating =
to the=20
dismissal of his fraud claim.=20
<P>The SAC repleads the fraud claim in an attempt to remedy the defects =
to which=20
Supreme Court pointed in its dismissal of the claim in its September 25, =
2008=20
order<B>. </B>However, Supreme <FONT color=3D#ff0000>[*6]</FONT>Court =
erred in its=20
rationale for the dismissal in holding that Rather "failed to allege =
[...] that=20
his financial compensation at HDNet [...] is less than he would have =
received=20
had his contract been renewed." Thus, the mere inclusion of Rather's =
actual=20
annual compensation at HDNet is not helpful to his case, and would not =
be=20
helpful to his case before this Court at any future date.=20
<P>Rather alleges that various misrepresentations ( e.g., promises to =
publicly=20
defend his reputation and to conduct an independent investigation into =
the 2004=20
broadcast, and assurances that CBS intended to use his talents fully and =
to=20
extend his contract, which was due to expire on November 25, 2006) =
induced him=20
to remain silent about his role in the broadcast and to remain with CBS, =
where=20
he was allegedly "warehoused" until thecompletion of his contract. As a =
result,=20
he alleges he suffered money and reputation damages. Relying on Rather's =

well-footnoted appellate brief, this Court was already cognizant of his =
argument=20
that, following the completion of his CBS contract, his compensation at =
HDNet=20
was less than the $4 million a year established as an approximate market =
rate=20
for comparable journalists. However, for reasons set forth here, this=20
information was not required for our analysis, and the lack of it was =
not the=20
reason for affirming dismissal.=20
<P>It is hornbook law that,=20
<BLOCKQUOTE>"In an action to recover damages for fraud, the plaintiff =
must=20
  prove a misrepresentation or a material omission of fact which was =
false and=20
  known to be false by defendant, made for the purpose of inducing the =
other=20
  party to reply upon it, justifiable reliance of the other party on the =

  misrepresentation or material omission, and =
injury."</BLOCKQUOTE><BR><I>Lama=20
Holding Co. v. Smith Barney</I>, 88 N.Y.2d 413, 421, 646 N.Y.S.2d 76, =
80, 668=20
N.E.2d 1370, 1373 (1996), <I>citing Channel Master Corp v. Aluminum Ltd. =

Sales</I>, 4 N.Y.2d 403, 176 N.Y.S.2d 259, 151 N.E.2d 833 (1958). =
Supreme Court=20
properly dismissed Rather's fraud claims for failure to allege pecuniary =
loss.=20
<BLOCKQUOTE>"The true measure of damage is indemnity for the actual =
pecuniary=20
  loss sustained as the direct result of the wrong or what is known as =
the=20
  out-of-pocket rule. Under this rule, the loss is computed by =
ascertaining the=20
  difference between the value of the bargain which a plaintiff was =
induced by=20
  fraud to make and the amount or value of the consideration exacted as =
the=20
  price of the bargain. Damages are to be calculated to compensate =
plaintiffs=20
  for what they lost because of the fraud, not to compensate them for =
what they=20
  might have gained. Under the out-of-pocket rule, there can be no =
recovery of=20
  profits which would have been realized in the absence of fraud." =
<I>Lama</I>,=20
  88 N.Y.2d at 421, 646 N.Y.S.2d at 80 (internal quotation marks and =
citations=20
  omitted).</BLOCKQUOTE>
<P>Thus, under <I>Lama Holding Co.</I> and its progeny, Rather was =
required to=20
plead that he had something of value, was defrauded by CBS into =
relinquishing it=20
for something of lesser value, and that the difference between the two=20
constituted Rather's pecuniary loss.=20
<P>Rather's claim that, but for CBS' fraud, he could have had more =
remunerative=20
employment than that which he ultimately obtained at HDNet is =
unavailing. "[T]he=20
loss of an alternative contractual bargain [...] cannot serve as a basis =
for=20
fraud or misrepresentation damages because the loss of the bargain was=20
undeterminable and speculative.'" <I>Lama</I>, 88 N.Y.2d at 422, <FONT=20
color=3D#ff0000>[*7]</FONT>646 N.Y.S.2d at 80, <I>quoting Dress Shirt =
Sales v.=20
Hotel Martinique Assoc.</I>, 12 N.Y.2d 339, 344, 239 N.Y.S.2d 660, 664, =
190=20
N.E.2d 10, 13 (1963); <I>see Geary v. Hunton &amp; Williams</I>, 257 =
A.D.2d 482,=20
684 N.Y.S.2d 207 (1st Dept. 1999).=20
<P>Rather claims, based on his value and the value of similar =
professionals in=20
the industry, that he would have been paid $4 million annually from 2005 =
through=20
2010. However, while claiming that he had an "agreement-in-principle" =
with CBS=20
in the summer of 2004 to extend his contract, he alleges in the amended=20
complaint that he had an unwritten "proposal" that "contemplated" a =
contract=20
extension, and the terms of the proposal were compensation of $4 million =
for the=20
first 19 months and $2 million annually thereafter. Rather admits that, =
the=20
broadcast and its aftermath aside, CBS was already contemplating that he =
would=20
step down from the anchor position in 2006 and assume a reduced role.=20
<P>As to lost opportunities in the trade, while Rather has shown his own =
track=20
record of earnings and the earnings of other trade professionals, his =
future=20
earnings are speculative, because there is no basis to conclude that his =

employment status would not have changed, regardless of CBS's actions, =
once he=20
determined to make the broadcast. Rather never identified a single =
opportunity=20
with specified terms that was actually available to him and which he =
declined to=20
accept because of CBS' actions.=20
<P>Even if Rather pled pecuniary loss sufficiently to satisfy the =
<I>Lama</I>=20
standard, his claim would nonetheless fail. Although allegations that =
defendants=20
made statements to the general public, for example, that they falsely =
blamed=20
Rather for alleged errors in the broadcast, may constitute a defamation =
claim=20
(<I>see Morrison v. National Broadcasting Co.</I>, 19 N.Y.2d 453, =
458-459, 280=20
N.Y.S.2d 641, 644, 227 N.E.2d 572, 574 (1967)), they are time-barred.=20
Furthermore, Rather's claim of under-use merely recasts his breach of =
contract=20
claim in terms of fraud. <I>See Wegman v Dairylea Coop.</I>, 50 A.D.2d =
108, 113,=20
376 N.Y.S.2d 728, 734-735 (1975), <I>lv. dismissed</I>, 38 N.Y.2d 918, =
382=20
N.Y.S.2d 979, 346 N.E.2d 817 (1976), and CBS's alleged promise to extend =

Rather's contract constitutes a non-actionable statement of future =
intent. <A=20
href=3D"http://www.courts.state.ny.us/reporter/3dseries/2008/2008_02491.h=
tm"=20
target=3D_blank><I>See Laura Corio, M.D., PLLC v R. Lewin Interior =
Design,=20
Inc.</I>, 49 AD3d 411</A>, 412, 854 N.Y.S.2d 55, 56-57 (1st Dept. 2008). =

<P>Even if Rather had alleged "a breach of duty which is collateral or=20
extraneous to the contract between the parties" <I>Krantz v Chateau =
Stores of=20
Canada</I>, 256 A.D.2d 186, 187, 683 N.Y.S.2d 24, 25 (1st Dept. 1998) =
(internal=20
quotation marks and citations omitted), he failed to adequately allege =
damages.=20
<P>To the extent Rather claims that he should have been released from =
the=20
agreement earlier to pursue other opportunities, this claim is =
duplicative of=20
his breach of contract claim. <I>See Non-Linear Trading Co. v. Braddis=20
Assoc<I>.</I></I>, 243 A.D.2d 107, 118, 675 N.Y.S.2d 5, 13 (1st Dept. =
1998).=20
Similarly, Rather's claim for breach of the implied covenant of good =
faith and=20
fair dealing was properly dismissed by Supreme Court for being =
duplicative of=20
his breach of contract claim. <I>See Canstar v. Jones Constr. Co.</I>, =
212=20
A.D.2d 452, 622 N.Y.S.2d 730 (1st Dept. 1995).=20
<P>Finally, Supreme Court properly dismissed the claim of tortious =
interference=20
with a contract as against CBS and Viacom. First, CBS asserts correctly =
that=20
Viacom is not a proper party to this action. Documentary evidence =
demonstrates=20
that on December 31, 2005, Viacom <FONT color=3D#ff0000>[*8]</FONT>(old =
Viacom)=20
split into two publicly traded companies named Viacom (new Viacom) and =
CBS=20
Corporation, the latter retaining all of the liabilities concerning =
CBS's=20
broadcasting business. Thus, the motion court correctly found that new =
Viacom=20
carries no liability for old Viacom's acts in this suit. Second, as to =
the claim=20
against CBS, the court correctly applied the economic interest doctrine =
to=20
dismiss this claim against the corporate defendant. <A=20
href=3D"http://www.courts.state.ny.us/reporter/3dseries/2007/2007_03591.h=
tm"=20
target=3D_blank><I>See White Plains Coat &amp; Apron Co., Inc. v. Cintas =

Corp.</I>, 8 NY3d 422</A>, 835 N.Y.S.2d 530, 867 N.E.2d 381 (2007). =
Rather's=20
bare allegations of malice do not suffice to bring the claim under an =
exception=20
to the economic interest rule. <I>See Ruha v. Guior</I>, 277 A.D.2d 116, =
717=20
N.Y.S.2d 35 (1st Dept. 2000). Since on appeal, Rather has not addressed =
his=20
argument as to this cause of action to the individual defendants, we =
deem the=20
argument abandoned. In any event, there is no particularized pleading of =

allegations that the acts committed by the individual corporate =
employees were=20
either beyond the scope of their employment or motivated by their desire =
for=20
personal gain. <I>See Petkanas v. Kooyman</I>, 303 A.D.2d 303, 305, 759 =
N.Y.S.2d=20
1, 2 (1st Dept. 2003).=20
<P>Accordingly, the judgment of the Supreme Court, New York County (Ira=20
Gammerman, J.H.O.), entered April 14, 2008, dismissing the complaint =
asagainst=20
the individual defendants, and bringing up for review an order, same =
court and=20
J.H.O., entered April 11, 2008, which, inter alia, granted defendants' =
motion to=20
dismiss the complaint to the extent of dismissing the causes of action =
for=20
fraud, breach of the implied covenant of fair dealing, and tortious =
interference=20
with prospective business relations, and denied the motion to the extent =
it=20
sought to dismiss the causes of action for breach of contract and breach =
of=20
fiduciary duty, should be modified, on the law, to grant the motion to =
dismiss=20
the causes of action for breach of contract and breach of fiduciary =
duty, and=20
otherwise affirmed, with costs. Judgment, same court and J.H.O., entered =

September 30, 2008, dismissing the amended complaint as against Viacom, =
Inc. and=20
dismissing the causes of action for fraud and tortious interference with =

contract as against CBS Corporation, and bringing up for review an =
order, same=20
court and J.H.O., entered September 23, 2008, which granted CBS and =
Viacom's=20
motion to the extent it sought to dismiss the causes of action for fraud =
and=20
tortious interference with contract and denied the motion to the extent =
it=20
sought to dismiss the cause of action for breach of fiduciary duty, =
should be=20
modified, on the law, to dismiss the remaining causes of action against =
CBS, and=20
otherwise affirmed, with costs. Plaintiff's appeals from the aforesaid =
orders=20
should be dismissed, without costs, as subsumed in the appeals from the=20
respective judgments. The Clerk is directed to enter judgment in favor =
of <FONT=20
color=3D#ff0000>[*9]</FONT>defendant CBS dismissing the amended =
complaint as=20
against it.=20
<P>All concur. <BR>Judgment, Supreme Court, New York County (Ira =
Gammerman,=20
J.H.O.), entered April 14, 2008, modified, on the law, to grant the =
motion to=20
dismiss the causes of action for breach of contract and breach of =
fiduciary=20
duty. Judgment, same court and J.H.O., entered September 23, 2008, =
modified, on=20
the law, to dismiss the remaining causes of action against CBS. Appeals =
from the=20
aforesaid orders unanimously dismissed, as subsumed in the appeals from =
the=20
respective judgments.=20
<P>Opinion by Catterson, J. All concur. <BR>Gonzalez, P.J., Buckley, =
Catterson,=20
McGuire, Renwick, JJ. <BR>THIS CONSTITUTES THE DECISION AND ORDER <BR>OF =
THE=20
SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.=20
<P>ENTERED: SEPTEMBER 29, 2008=20
<P>CLERK<BR><BR>
<DIV align=3Dcenter>
<FORM action=3D../../slipidx/aidxtable_1.shtml method=3DLINK><INPUT =
type=3Dsubmit value=3D"Return to Decision List">=20
</FORM></DIV></BODY></HTML>
