Count III – Starwood Capital Agency Theory Sample Clauses

Count III – Starwood Capital Agency Theory. Xxxxxxx also argues that Count XXX of the amended complaint, an agency theory of liability claim against Starwood Capital, fails to state a legally sufficient claim. (D.I. 190 at 12– 13) As CGHA notes, the amended complaint addresses the deficiencies that Judge Xxxxxxx identified when he dismissed CGHA’s agency theory claim against Starwood Capital in the original complaint. Xxxxxxxx X, 2019 WL 148454, at *7 (“Since [CGHA] failed to establish Starman controlled or directed Xxxxxxx, it cannot proceed against [Starwood Capital] by claiming it controlled Starman. [CGHA] would need both levels in the chain to establish that Xxxxxxx was [Starwood Capital’s] agent.”). Count XXX of the amended complaint states a legally cognizable agency theory claim against Starwood Capital based on a two-tiered agency structure. (D.I. 193 at 4–7) The first tier is primarily based on an alter ego relationship between Xxxxxxx and Xxxxxxx.10 (Id. at 5) The second tier is based on a theory that Xxxxxxx acted as Starwood Capital’s agent. (Id.) For the first tier, the Xxxxxxx-Xxxxxxx principal-agent tier, Xxxxxxx does not challenge CGHA’s theory that Xxxxxxx acted as an alter ego of Starman, a theory Judge Xxxxxxx previously accepted, and which is realleged in the amended complaint. (D.I. 190; D.I. 180, Ex. A at ¶¶ 58–81) Xxxxxxx cites no authority that such a relationship could not serve as the first tier of a multi-tier agency theory of liability against Starwood Capital. (D.I. 190) 10 The distinction between the agency theory proffered against Starwood Capital in the original complaint compared to the theory presented in the amended complaint lies in the first tier of CGHA’s theory of liability. (D.I. 193 at 5) In the original complaint, Xxxxx XXX relied on a two- tiered agency theory: (1) Xxxxxxx acted as Xxxxxxx’x agent, and (2) Xxxxxxx acted as Starwood Capital’s agent. (Id.) The amended complaint alleges, instead, that the “primary” first tier is based on the theory that Xxxxxxx was Xxxxxxx’x alter-ego. (Id.) In the alternative, the amended complaint alleges that the first tier could also be a Xxxxxxx-Xxxxxxx principal-agent relationship. (Id. (citing D.I. 180, Ex. A at ¶¶ 191–92)) For the second tier, the Starwood Capital-Starman principal-agent tier, the amended complaint contains plausible factual allegations that “Starwood Capital arranged with Xxxxxxx that Xxxxxxx would act on Starwood Capital’s behalf with respect to domination and control of Woodman’s finances, and this...
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