Fox v. Encounters International

Natasha Spivack (defendant) founded the international match-making agency Encounters International (EI). EI matched American male clients with female participants from Russia and the Ukraine. Spivack marketed EI as having a 95 percent success rate in establishing romantic relationships and marketed herself as a psychologist and a match-making expert. In 1998, Spivack introduced Nataliya Derkach Fox (plaintiff) to James Fox. Spivack assured Nataliya that James was a good client and taught Nataliya about American customs. Nataliya and James then married. Shortly after the marriage, James began abusing Nataliya. In 2000, Nataliya, who was pregnant, met with Spivack three separate times to seek help. Spivack informed Nataliya that she would be deported if she left James. Although Spivack was aware that a battered-spouse waiver existed, under which a domestic-violence victim may leave an abusive relationship on which citizenship is based without fear of being deported, Spivack did not disclose this information. Nataliya stayed with James and later gave birth. Three weeks later, James violently attacked Nataliya, which resulted in Nataliya’s hospitalization. Nataliya was referred to a woman’s shelter. At the shelter, Nataliya was informed of the battered-spouse waiver. Nataliya then filed an action against EI and Spivack on the ground that Spivack had breached a fiduciary duty and had committed fraud by misrepresenting that Nataliya had to remain in the marriage or fear deportation. A jury found EI and Spivack guilty and awarded Nataliya $341,500 in punitive damages. Spivack appealed.