PORTLAND, Maine — A federal lawsuit brought by a Rockport man who claims a former business partner reneged on a deal that could have generated $33 million in profits by selling “sunglasses on steroids” will remain in Maine, a judge ruled Friday.
U.S. District Judge Jon Levy rejected a request by Kirk Kreutzig of Woodridge, Illinois to dismiss the federal case brought in Maine by John Galley. Kreutzig argued Maine was not the proper jurisdiction but rather should be heard in Illinois.
“In short, Kreutzig deliberately entered into a business relationship with Galley, a Maine resident, with the understanding that Galley would engage in marketing and promotional activities from his base in Maine,” Levy ruled.
Also on Tuesday, Judge Levy gave Kreutzig until June 8 to file a response to the lawsuit filed in February by Galley. Galley had initially filed the lawsuit in Knox County Superior Court in Rockland but then it was refiled in federal court.
The Rockport man states in the lawsuit that he and Kreutzig have been close personal friends for more than 50 years and that he served as an adviser to Kreutzig’s business for many years. The suit specifies that Kreutzig owns Spectrum Technologies International Ltd., which manufactures high-tech filters for eyewear, weapon sights, laptops and other military equipment.
Galley maintains that he had been in discussions with Kreutzig to market sunglasses using the technology.
The lawsuit indicates that Galley took courses to help market the product and discussed by email and telephone a business agreement in which Kreutzig would manufacture the sunglasses, Galley would market them and the two of them would split the profits evenly.
Galley said that based on the prior discussions and the 50-50 profit-sharing proposal, he attended further workshops and made financial investments. In September 2014, Kreutzig insisted on owning 100 percent of the new business, Galley’s lawsuit alleges. A month later, however, Kreutzig disavowed all relationships with Galley and said he had no interest in the consumer eyeglass business, according to Galley’s suit.