Rizzo Successfully Argues Issue of First Impression Before DE Supreme Court
RRD managing partner, Louis J. Rizzo, Jr. successfully argued an issue of first impression before the Delaware Supreme Court, which affirmed the ruling of the trial court granting summary judgment in favor of the Firm’s client. Mr. Rizzo represented a national media corporation in defending a claim by a subcontractor arising from the scope of work within contracts for newspaper distribution.
Mr. Rizzo obtained summary judgment at the trial court level by establishing that no direct action by the subcontractor could be made against the media corporation for the conduct of the media corporation’s direct contractor. The trial court ruled that neither the illegal activity exception nor the peculiar risk doctrine applied in the case, and thus no direct action could be maintained by the subcontractor against the media corporation, with whom the plaintiff had no direct contract.
On appeal, the Supreme Court agreed, adopting the trial court’s analysis and affirming the ruling of no direct action. The successful outcome not only resulted in dismissal of the lawsuit, but also established precedence regarding the limitation of liability for the media corporation’s national distribution system.