WILLIAM H. STEELE, Chief Judge.
This matter comes before the Court on Seaport Marine, Inc.'s Motion to Dismiss (doc. 11) and Odyssea Marine Inc.'s Motion to Dismiss (doc. 14).
Plaintiff, Wilbur Smith, for himself and on behalf of others similarly situated, filed a multi-count Complaint (doc. 1) against defendants, Seaport Marine, Inc. and Odyssea Marine, Inc. According to the well-pleaded allegations of the Complaint, Smith is a seaman who entered into an Employment Placement Contract with defendant Seaport, pursuant to which Seaport provided employment placement services for Smith (i.e., it helped him find a job) in exchange for Smith authorizing Seaport to collect a recruitment fee and to recoup advances out of his resulting wages. (Doc. 1, ¶ 4, 6.) To facilitate that arrangement, Smith executed a Paycheck Mailing Agreement authorizing his employer to mail his payroll checks to Seaport until Seaport's "fee and advances were collected in installments," as well as a Special Power of Attorney authorizing Seaport to endorse and deposit those checks, collect an allotment from them, and mail the balance to Smith. (Id., ¶ 6.) Although the allegations of the Complaint center on defendant Seaport, they also relate to defendant Odyssea. Smith maintains that he was employed by Odyssea, that Odyssea was complicit in implementing the terms of the Paycheck Mailing Agreement, and that the result was an unlawful allotment of $3,640 from his wages. (Id., ¶ 14.)
Notably, the Complaint does not identify what contacts (if any) Odyssea has with the forum state in which this litigation was filed, or with the United States as a whole. Nor does the Complaint identify any nexus between Smith and the Southern District of Alabama, much less any explanation or allegation concerning venue, aside from
Based on the limited factual allegations embedded in his cumbersome (and sometimes opaque) Complaint, Smith purports to bring claims against both Seaport and Odyssea for (i) "seaman's claim for wages" (on the theory that the wage assignments were non-binding, such that Smith is entitled to the balance of his wages allotted, forwarded to and retained by Seaport); (ii) conversion; (iii) conspiracy; (iv) equitable rescission of contract and restitution for money had and received; (v) legal restitution/breach of contract; (vi) breach of fiduciary duty; and (vii) violation of the Racketeer Influenced and Corrupt Organizations Act ("RICO"). Of these claims, Smith aims the equitable rescission, legal restitution/breach of contract, and breach of fiduciary claims solely at Seaport; however, the remaining claims (seaman's claim for wages, conversion, conspiracy and RICO) are brought against both defendants.
Seaport and Odyssey have independently filed overlapping Rule 12(b)(6) Motions to dismiss the Complaint for failure to state a claim, with Odyssey also advancing arguments under Rule 12(b)(2) to dismiss the Complaint for want of personal jurisdiction.
In its Motion to Dismiss, Odyssea argues in general terms that the Complaint is insufficient to demonstrate that this Court has personal jurisdiction over it. Rather than affirmatively showing pertinent jurisdictional facts or circumstances, Odyssea is content to point out that "[n]o facts whatsoever are pled regarding the location where Smith purportedly was employed by Odyssea" and that "[n]o facts whatsoever are pled pertaining to Odyssea's contacts with the instant forum." (Doc. 14, at 5.) Because Odyssea is challenging the existence of personal jurisdiction, the Court will address this Rule 12(b)(2) component of its Motion to Dismiss before reaching the merits issues detailed in the Rule 12(b)(6) portion of the Motion. See, e.g., Koch v. Royal Wine Merchants, Ltd., 847 F.Supp.2d 1370, 1374 (S.D.Fla.2012) ("The general rule is that courts should address issues relating to personal jurisdiction before reaching the merits of a plaintiff's claims.") (citation and internal quotation marks omitted); Daily Access Corp. v. Gaedeke Holdings, Ltd., 2012 WL 6728051, *2 (S.D.Ala. Dec. 7, 2012) (similar); Malibu Media, LLC v. John Does 1-25, 2012 WL 3940142 (M.D.Fla. Aug. 21, 2012) (similar).
As articulated in its Motion, Odyssea's Rule 12(b)(2) argument is firmly rooted in a traditional Fourteenth Amendment personal jurisdiction analysis, which first looks to whether the forum state's long-arm statute provides jurisdiction over a nonresident defendant and, if so, then "requires that the defendant have minimum
In performing a Fifth Amendment due process inquiry, courts "should balance the burdens imposed on the individual defendant against the federal interest involved in the litigation." Republic of Panama, 119 F.3d at 946. The Eleventh Circuit cautions, however, "that courts must engage in this balancing
Odyssea has not come close to satisfying this daunting burden.
Simply put, Odyssea has "presented no evidence that [its] ability to defend this lawsuit will be compromised significantly if [it is] required to litigate in" the Southern District of Alabama. Republic of Panama, 119 F.3d at 948; see also Grail Semiconductor, 2012 WL 5903817, at *5 (defendant's conclusory statements that it would be "extremely difficult" for him to litigate a case in Florida because he lives in California fail to meet burden because "they do not furnish the Court with anything substantive that would show why or how the burden on Stern would be of constitutional concern"); NCI Group, Inc. v. Cannon Services, Inc., 2009 WL 2411145, *6 (N.D.Ga. Aug. 4, 2009) (rejecting Rule 12(b)(2) motion where defendants merely argued that their ties were with Mississippi, not Georgia, without showing "that it would be `difficult' or `inconvenient' for them to adjudicate the case in this court"). Asserting jurisdiction over Odyssea would
Both defendants move for dismissal of the Complaint for failure to state a claim upon which relief can be granted. To withstand Rule 12(b)(6) scrutiny, plaintiffs must plead "enough facts to state a claim to relief that is plausible on its face," so as to "nudge[] their claims across the line from conceivable to plausible." Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). "A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (citation omitted). "This necessarily requires that a plaintiff include factual allegations for each essential element of his or her claim." GeorgiaCarry.Org, Inc. v. Georgia, 687 F.3d 1244, 1254 (11th Cir. 2012). Thus, minimum pleading standards "require[] more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do." Twombly, 550 U.S. at 555, 127 S.Ct. 1955. As the Eleventh Circuit has explained, Twombly/Iqbal principles require that a complaint's allegations be "enough to raise a right to relief above the speculative level." Speaker v. U.S. Dep't of Health and Human Services Centers for Disease Control and Prevention, 623 F.3d 1371, 1380 (11th Cir.2010) (citations omitted). "[I]f allegations are indeed more conclusory than factual, then the court does not have to assume their truth." Chaparro v. Carnival Corp., 693 F.3d 1333, 1337 (11th Cir.2012); see also Mamani v. Berzain, 654 F.3d 1148, 1153 (11th Cir.2011) ("Legal conclusions without adequate factual support are entitled to no assumption of truth.").
Count I of Smith's Complaint, framed as a "Seaman's Claim for Wages," includes the following salient allegations: (i) Smith's assignment of wages before paid in favor of Seaport is non-binding pursuant to 46 U.S.C. § 11109(b); (ii) Odyssea's collection and forwarding of Smith's payroll checks to Seaport in reliance on that non-binding assignment was wrongful and unlawful; and (iii) Smith is entitled to recover from Seaport and Odyssea the entire balance of his wages allotted, forwarded to, and retained by Seaport. In filings that overlap in some respects and diverge in others, both defendants seek dismissal of this claim under Rule 12(b)(6).
According to Seaport, Count I should be dismissed because "Plaintiff has not and cannot allege facts to prove a violation of 46 U.S.C. § 11109." (Doc. 11-1, at 5.) Seaport contends that § 11109 applies only to persons employed "on a fishing vessel or any fish processing vessel." By Seaport's reckoning, Count I does not properly invoke § 11109 as a basis for relief because Smith "has failed to allege that he was seaman on a fishing or fish processing vessel, nor can he truthfully allege that he worked aboard a fishing or fish processing vessel." (Id. at 5-6.)
Seaport's position misconstrues and inaccurately circumscribes the scope of § 11109. That section has three subsections. Subsection (a) greatly limits circumstances under which "[w]ages due or accruing to a master or seaman" may be attached or arrested. Subsection (b) provides, in full, that "[a]n assignment or sale of wages or salvage made before the payment
Seaport's final argument for dismissal of Count I is that "Plaintiff has not and cannot truthfully allege facts that prove a violation of 46 U.S.C. § 10315(c)." (doc. 11-1, at 6.)
In its separate Rule 12(b)(6) Motion, Odyssea raises various arguments of its own that Smith's seaman claim for wages must fail. Certain of these contentions are redundant of those identified by Seaport. For example, Odyssea argues that Smith cannot bring a statutory claim under § 11109(b), that § 11109 applies only to persons employed on fishing vessels or fish processing vessels, and that Smith cannot prove a violation § 10315. These arguments have been explored at length supra, and no constructive purpose would be served by revisiting them.
That said, Odyssea raises two unique arguments for dismissal of Count I. First, Odyssea contends that § 11109 is unavailable to plaintiff because "Smith has failed to plead sufficient facts to bring him within the definition of a `seaman'" for purposes of a Twombly/Iqbal analysis. (Doc. 14, at 6.) The Court disagrees. The applicable statutory definition provides that "seaman" means "an individual (except scientific personnel, a sailing school instructor, or a sailing school student)
Second, Odyssea advances the peculiar argument that Smith's "voluntary decision to have his paychecks sent to Seaport will not suffice to support an allegation that Odyssea violated section 11109 when it complied with Smith's written request." (Doc. 14, at 7.) Section 11109 itself draws no distinction between voluntary and involuntary assignments. Indeed, the sole authority identified by Odyssea for the proposition that § 11109(b) is confined to involuntary assignments of wages is In re Williams, 20 B.R. 154 (Bankr.E.D.Ark. 1982). The Williams opinion includes a cursory remark that a predecessor statute to § 11109 was "designed to prevent involuntary court ordered garnishments and attachments and not the prevention of voluntary deductions." Id. at 154. Williams cites no authority and offers no rationale for this determination, which appears never to have been adopted by any court anywhere. As this Court recently explained, "even if Williams has any persuasive capacity in the context of Section 11109(a), it has none under Section 11109(b). By its terms, Williams is limited
In Count VII of the Complaint, Smith claims that both defendants violated RICO because they were in a fiduciary relationship with Smith and they conspired together to defraud Smith to make unauthorized and unlawful allotments (i.e., to have him enter into the Paycheck Mailing Agreement) and to take such unauthorized and unlawful allotments from his wages. According to the Complaint, Seaport and Odyssea engaged in a pattern of racketeering activity "by misleading [Smith] and committing frauds upon confidence bestowed by concealing the unauthorized and unlawful nature of allotments resulting from the unauthorized allotment notes." (Doc. 1, ¶ 46.) Importantly, Smith alleges in his pleading that "[b]y reason of the violations of 18 USC § 1962(c) committed by Seaport Marine and [Odyssea], [Smith was] injured in the amount of the allotments, retained by Seaport Marine within the meaning of 18 USC § 1964(c)." (Id., ¶ 56.)
To maintain a cognizable civil RICO claim under federal law, Smith must satisfy 18 U.S.C. § 1964(c), which requires him to show an injury to business or property that occurred "by reason of the substantive RICO violation." Williams v. Mohawk Industries, Inc., 465 F.3d 1277, 1283 (11th Cir.2006). The "by reason of" requirement "implicates two concepts: (1) a sufficiently direct injury so that a plaintiff has standing to sue; and (2) proximate cause." Id. at 1287. As to proximate cause, the law is clear that "in RICO cases there must be `some direct relation' between the injury alleged and the injurious conduct." Id. at 1288. Odyssea's Rule 12(b)(6) Motion challenges whether the Complaint satisfies the "by reason of" prerequisite for a viable RICO cause of action.
This objection has merit. The Eleventh Circuit has explained that "courts should scrutinize proximate causation at the pleading stage and carefully evaluate whether the injury pled was proximately caused by the claimed RICO violations," focusing on "whether the alleged violation led directly to the plaintiff's injuries." Williams, 465 F.3d at 1287. Smith's RICO claim, as pleaded, does not satisfy this "by reason of" requirement. As an initial matter, the Complaint's blanket, conclusory statement that "[b]y reason of the violations of 18 USC § 1962(c) ... [Smith was] injured in the amount of the allotments, retained by Seaport" (doc. 1, ¶ 56), is not sufficient to discharge plaintiff's pleading burden. See, e.g., Chandler v. Secretary of Florida Dep't of Transp., 695 F.3d 1194, 1199 (11th Cir.2012) ("the tenet that a court must accept as true all of the allegations contained in a complaint
As pleaded in the Complaint, the substantive RICO violation here was that Seaport and Odyssea schemed and plotted to defraud Smith, with the grand deception being that they did not tell him the Paycheck Mailing Agreement he executed was non-binding under applicable law.
Odyssea also seeks dismissal of the Complaint "[t]o the extent Smith's claims are predicated upon an alleged agency relationship between Odyssea, as principal, and Seaport as actual and/or apparent agent." (Doc. 14, at 12.) In all candor, it is unclear from the Complaint which (if any) of Smith's claims against Odyssea rely on such an agency relationship, and the extent of such reliance. To be sure, the Complaint repeatedly mentions the existence of an agency relationship between the two entities; however, it is not apparent that any of Smith's claims against Odyssea rest exclusively on such alleged principal/agent status. Certainly, Odyssea does not argue that any particular counts of the Complaint must be dismissed in their entirety for failure to plead agency with sufficient specificity to satisfy Twombly/Iqbal.
For his part, plaintiff admits that "the pleadings do not so specifically allege" facts showing that the elements of apparent agency under general maritime law are satisfied. (Doc. 22, at 9.) To remedy that deficiency, "Plaintiff requests a reasonable time to amend the complaint, if necessary." (Id. at 9-10.) The parties appearing to be in agreement that agency has not been satisfactorily pleaded in the Complaint, the Court will
In Count VI of the Complaint, Smith brought a claim against Seaport for breach of fiduciary duty. That claim alleged that the Special Power of Attorney (under which Smith assented to make Seaport his attorney-in-fact to deposit his payroll checks into its bank account for allotment, collection and repayment, before forwarding the balance to Smith) "gives rise to a fiduciary duty between [Smith] and Seaport Marine." (Doc. 1, 35.) According to the Complaint, Seaport breached this fiduciary duty by using that Special Power of Attorney "to accomplish unauthorized and unlawful allotments;" by engaging in "fraudulent concealment and/or non-disclosure to [Smith] of the unauthorized and unlawful nature of the unauthorized allotment note [and] [Smith]'s statutory rights;" and by not disclosing its "conflict of interest in serving two principals — Plaintiffs and the employers." (Doc. 1, 37.)
In its principal brief, Seaport articulates two (and only two) arguments against Smith's claim for breach of fiduciary duty. First, it maintains that the "ward of the court" doctrine does not apply "to an arm's length transaction between a seaman and an employment service that helps the seaman find work aboard a vessel owned by the employer." (Doc. 11-1, at 7-8.) But
Second, Seaport maintains in conclusory fashion that "Plaintiff has asserted no basis for any assumption that he should not be presumed to know the law" and has not "alleged any sufficient basis for his assertion that Seaport owed a duty to inform him of the applicability of" § 11109. (Doc. 11-1, at 8.) But the Complaint on its face sets forth the basis for Smith's contention that Seaport owed a fiduciary duty to him to disclose (and not conceal) "the unauthorized and unlawful nature of the unauthorized allotment note [and] [Smith]'s statutory rights." (Doc. 1, 37.) If Seaport deems that legal basis to be insufficient, then it is incumbent on Seaport (as Rule 12(b)(6) movant) to explain why. The Court cannot and will not accept movant's conclusory assertion of insufficiency. Neither will it endorse Seaport's attempt to shift the burden on its Rule 12(b)(6) Motion to require Smith to prove that Count VI does state a claim, rather than requiring Seaport to establish that it does not.
Seaport's Motion to Dismiss is
For all of the foregoing reasons, it is