AMY BERMAN JACKSON, District Judge.
Plaintiff Adam LoPiccolo brings this action alleging various claims against defendants
Plaintiff Adam LoPiccolo, a citizen of Pennsylvania, alleges that he was recruited to wrestle at American University, and that the team coach, defendant Cody, came to his home and offered him a full athletic scholarship, covering tuition, fees, room, board, and books. Am. Compl. ¶¶ 11, 14; see also Mot. to Dismiss Unedited Hearing Transcript ("Tr.") at 14 (Dec. 21, 2011). The gravamen of the complaint is that this oral promise of a "full athletic scholarship" was supposed to fund four years of college, but that the coach and AU did not live up to their commitments. Id. The complaint details numerous difficulties plaintiff experienced with defendant Cody once he joined the team, the most significant of which involve the coach's alleged insistence that plaintiff practice and wrestle competitively at times when he was ill or injured. See, e.g., Am. Compl. ¶¶ 28, 29, 36. Those allegations do not bear on the particular issues addressed in this opinion, so they will not be fully recounted here.
In paragraph 21 of the amended complaint, plaintiff alleges that he was admitted to AU for the 2004 fall semester "and was awarded his full scholarship, which he signed in June of 2004. (See "American Univeristy Athletics Grant-in-Aid Agreement," an example of which is attached hereto as Exhibit `A')." Am. Comp. ¶ 21. But Exhibit A is a grant-in-aid agreement for Fall 2005 — Spring 2006 only, and it specifies:
On June 30, 2006, plaintiff entered into a scholarship agreement for the upcoming 2006-2007 school year, his third year on the team. Ex. B to AU Defs.' Mot. [Dkt. #29].
The complaint avers that in January 2007, as plaintiff was recovering from the flu and unable to practice, he received a phone call from defendant Cody informing him that "he was done at American University" and "was no longer on the wrestling team." Am. Compl. ¶ 52.
Plaintiff filed this lawsuit on June 29, 2010, in the U.S. District Court for the Eastern District of Pennsylvania. That court transferred the case to this Court on March 31, 2011, pursuant to 28 U.S.C. § 1406(a) on the grounds that venue was improper in that district. [Dkt. # 22].
"To survive a [Rule 12(b)(6)] motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face." Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009) (internal quotation marks omitted); accord Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). In Iqbal, the Supreme Court reiterated the two principles underlying its decision in Twombly: "First, the tenet that a court must accept as true all of the allegations contained in a complaint is inapplicable to legal conclusions." 129 S.Ct. at 1949. And "[s]econd, only a complaint that states a plausible claim for relief survives a motion to dismiss." Id. at 1950.
A claim is facially plausible when the pleaded factual content "allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Id. at 1949. "The plausibility standard is not akin to a `probability requirement,' but it asks for more than a sheer possibility that a defendant has acted unlawfully." Id. A pleading must offer more than "labels and conclusions" or a "formulaic recitation of the elements of a cause of action," id., quoting Twombly, 550 U.S. at 555, 127 S.Ct. 1955, and "[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice." Id.
When considering a motion to dismiss under Rule 12(b)(6), the complaint is construed liberally in plaintiff's favor, and the Court should grant plaintiff "the benefit of all inferences that can be derived from the facts alleged." Kowal v. MCI Commc'ns Corp., 16 F.3d 1271, 1276
The Court first must determine whether the substantive law of the District of Columbia or Pennsylvania applies to this case. To choose the applicable law when exercising diversity jurisdiction, the Court applies the choice of law rules of the forum. Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 496, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941). Furthermore, defendants cite authority that directs the Court receiving a case transferred under § 1406(a) to apply the choice of law principles of the transferee forum. AU Defs.' Supp. Mem. [Dkt. # 35] at 3. The District of Columbia applies a "governmental interest analysis." Hartley v. Dombrowski, 744 F.Supp.2d 328, 336 (D.D.C.2010), citing Bledsoe v. Crowley, 849 F.2d 639, 641 (D.C.Cir.1988).
Plaintiff urged the Court to choose to follow Pennsylvania's choice of law rules instead because while the case had been transferred from the Eastern District of Pennsylvania, it could have properly been brought in the Western District.
In any event, plaintiff indicated that the choice-of-law test in Pennsylvania is substantially the same as the one utilized by the District of Columbia.
(1) The Place Where the Injury Occurred. The complaint alleges that plaintiff was informed by defendant Cody of his removal from the team and the loss of the scholarship when he returned to AU from Pennsylvania in January of 2007. Am. Compl. ¶¶ 51-52. But in connection with this motion, plaintiff maintains that he received the letters and phone calls about the non-renewal of his scholarship when he was at home in Pennsylvania, and that he suffered the "injury," i.e., the emotional and economic harm, there. Pl.'s Surreply [Dkt. # 38] at 5 n. 5; Tr. at 47-48. Defendants contend that the alleged "injury" was the removal from the wrestling team in the District of Columbia, and that the decision not to renew plaintiff's scholarship occurred in Washington, D.C., as well. AU Defs.' Supp. Mem. at 4.
On this point, the Court agrees that it is the removal of the plaintiff from the AU team in January 2007 that animates the entire complaint. Even if the Court were to focus on the place where plaintiff experienced the alleged ensuing damages rather than where he was first injured, the Court notes that the complaint specifically alleges that much of the emotional fallout occurred on the AU campus. Plaintiff remained a student at the university, and he alleges that his identity as a wrestler was "ripped from him," Am. Compl. ¶ 93, that he became depressed, id. at ¶ 94, and that his grades dropped. Id. Giving the plaintiff the benefit of every doubt and inference, the factors, at best, point to both Pennsylvania and the District of Columbia as the location where the injury occurred, with the more substantial location being the District.
(2) The Place Where the Conduct Causing the Injury Occurred. No matter where plaintiff was when he heard the news, and no matter where he later suffered the consequences, the actionable events in this case were the coach's decision and the ratification of that decision by the Athletic Department and the university as an institution. Thus, the conduct causing the alleged injury central to the complaint took place in the District of Columbia. See, e.g., Am. Compl. ¶¶ 52, 55; AU Defs.' Supp. Mem. at 4.
(3) The Domicile of the Parties. Plaintiff resides in Pennsylvania, Am. Compl. ¶ 1, but defendants live or work in the District of Columbia, Am. Compl. ¶¶ 3-6. In the case of defendant AU, the university is an educational institution located in the District of Columbia. Am. Compl. ¶ 2. Thus, this factor points to both Pennsylvania and the District of Columbia.
(4) The Place Where the Relationship of the Parties is Centered. The scholarship agreement that plaintiff claims was breached was negotiated and signed in the District, and the contract was to be performed by all parties in D.C. See Am. Compl. ¶¶ 41, 43, 46; AU Defs.' Supp. Mem. at 2. Despite plaintiff's argument that plaintiff performed his end of the contract in various states by participating in NCAA wrestling tournaments all over the country, see Tr. at 26, the relationship of the parties is clearly centered in the District of Columbia where the academic institution to which tuition was being provided,
In light of the Court's analysis of these factors, the Court will apply the substantive law of the District of Columbia.
The statute of limitations in the District of Columbia for bringing a breach of contract claim is three years. D.C.Code § 12-301(7).
Setting aside defendants' arguments about the defects of plaintiff's claims on the merits,
Even in cases where a plaintiff files an appeal challenging the decision, the statute of limitations begins to run at the time of the alleged breach and not after the conclusion of the appeals. Allison, 209 F.Supp.2d at 60. In Allison, a law student at Howard University brought a breach of contract claim related to his expulsion. After learning of his expulsion on May 22, 1996, the student filed multiple appeals and made numerous requests for readmission but did not file his lawsuit until June 17, 1999. Id. The Court held that the statute of limitations began to run at the time the expulsion decision was "made and communicated" to the student and that the "pendency of a grievance, or some other method of collateral review, does not toll the running of the limitations period." Id., citing Delaware State College v. Ricks, 449 U.S. 250, 258, 101 S.Ct. 498, 66 L.Ed.2d 431 (1980) (holding that the statute of limitations for an employment discrimination lawsuit by a college professor who did not receive tenure began when the college made the tenure decision and communicated that decision to the plaintiff).
Plaintiff argues that defendants are relying on employment discrimination cases and not on breach of contract cases. But defendants have cited breach of contract cases, including one referenced at oral argument, Medhin v. Hailu, 26 A.3d 307 (D.C.2011). In Medhin, the D.C. Court of Appeals determined that the District's statute of limitations barred a breach of contract action between a real estate broker and vendor regarding a dispute over a commission fee. Id. at 308. The court found that "Medhin was well aware that he suffered an injury when he was told `no commission would be paid.' Thus, any claim by Medhin to recover that commission brought more than three years after that notice would be untimely." Id. at 311.
If the clock begins to run when a party has been made aware that the other is refusing to perform, it is clear from the face of the complaint that plaintiff knew that defendants Cody and AU would no longer perform the contract in January 2007. See, e.g., Am. Compl. ¶ 54 (alleging that "during the next several months" after his scholarship was revoked, plaintiff pursued appeals and was ultimately denied "reinstatement"); id. ¶ 55 ("Defendant, Robert Acunto was the Co-Interim Director of Athletics at the time Mr. LoPiccolo's athletic scholarship was revoked"); id. ¶ 60 ("Mr. Lopiccolo was removed from Defendants' wrestling team in the middle of the season without merit ... As a result of Defendants' actions, Mr. LoPiccolo was not permitted to continue or complete the NCAA Division I wrestling season..."); id. ¶ 63 ("Defendants['] actions in removing Mr. LoPiccolo from their inter-collegiate wrestling team during the season and without cause were in breach of the 2006-2007 full athletic scholarship agreed upon between Mr. LoPiccolo and Defendants"); id. ¶ 64 ("As a result of this breach by Defendants, Mr. LoPiccolo was deprived of additional renewals of the full athletic scholarship he was originally promised by Defendants and for which he had done nothing to warrant non-renewal.") Indeed, the complaint expressly alleges that the appeal taken by plaintiff was based on his understanding that a decision had been made that his scholarship would not be renewed. Id. ¶ 90 (alleging that "[o]nce his athletic scholarship was revoked, Mr. LoPiccolo appealed the decision to the appropriate persons throughout the university, including in his appeal the assertions
Nowhere in the complaint does plaintiff allege that the actionable breach by AU was some failure to provide notice by July 1 that the financial aid would not be renewed; nor does the complaint allege that the denial of the appeal in September 2007 constituted the actionable breach. And even if it did, according to the law in the District of Columbia, the cause of action would have accrued in January in any event.
Thus, the statute of limitations for all of the claims began to run at the end of January 2007 when plaintiff was informed by both defendant Cody and defendant American University that he could no longer wrestle and that his scholarship would not be renewed. Under the three-year statute of limitations, plaintiff had until January 29, 2010, to file his complaint. Plaintiff did not file his complaint until June 29, 2010 — six months after the deadline. Therefore, Count I for breach of contract is time-barred.
A three-year statute of limitations also governs plaintiff's remaining claims for breach of the duty of good faith and fair dealing (Count II), fraud in the inducement (Count III), intentional infliction of emotional distress (Count IV), and negligent infliction of emotional distress (Count V). D.C. law provides that when a statute of limitations period is not expressly enumerated for a particular claim, the applicable statute of limitations is three years. D.C.Code § 12-301(8) ("Limitation of time for bringing action ... (8) for which limitation is not otherwise specifically prescribed — 3 years"). Plaintiff learned that his scholarship would be not be renewed on January 29, 2007. As with the breach of contract claim, under the three-year statute of limitations, plaintiff had until January 29, 2010 to file his complaint.
At oral argument, plaintiff asked for an opportunity to move to file an amended complaint — for the second time — if the Court ultimately determined that the motions to dismiss should be granted. Tr. at
But, the Court will grant plaintiff leave to file a motion for leave to amend under Fed.R.Civ.P. 15 and 59(a) that comports with LCvR 7(i) on or before February 2, 2012. The Court takes no position on the motion, but in an exercise of its discretion, it will defer its determination of whether the dismissal of plaintiff's claims in accordance with this opinion is with or without prejudice until after it has had an opportunity to review the motion, the opposition, and the proposed amended complaint, if one is filed.
For the foregoing reasons, defendants' motions to dismiss [Dkt. # 29 and # 31] will be granted. Plaintiff's oral motion for leave to file a motion for leave to amend will also be granted. Plaintiff must file any such motion by February 2, 2012. A separate order will issue.
Plaintiff could advance no credible theory as to how the Court could find that the breach, as opposed to some aspect of plaintiff's injury, occurred in Pennsylvania. Tr. at 43-45. Here, the alleged breach was committed by American University in the District of Columbia.