GREGORY G. HOLLOWS, Magistrate Judge.
Plaintiff first initiated this diversity action for malicious prosecution and civil conspiracy to commit malicious prosecution on July 23, 2010 and is currently proceeding with the third amended complaint filed on November 6, 2011. (
Presently pending before the court are defendant Kim Parsons's motions to dismiss plaintiff's claims against her for lack of personal jurisdiction pursuant to Fed. R. Civ. P. 12(b)(2) and for failure to state a claim upon which relief can be granted pursuant to Fed. R. Civ. P. 12(b)(6), originally filed on March 29, 2012. (Dkt. No. 181.) On April 13, 2012, the court ordered plaintiff to file an opposition to the motions within 21 days, and permitted defendant Parsons to file a reply brief within 14 days of service with plaintiff's opposition, after which the motions would be submitted on the record without oral argument. (Dkt. No. 189.) On May 4, 2012, plaintiff filed a timely opposition to defendant Parsons's motions, along with a request for leave to amend his complaint. (Dkt. No. 199.)
After reviewing the papers in support of and in opposition to the motions, the court finds that further briefing would not be of material assistance in deciding the motions.
The facts and procedural history of this case were previously described in detail in the court's March 2, 2012 order and findings and recommendations related to other motions filed in this matter. (
Plaintiff is a real estate developer who claims that the defendants purchased lots for a planned unit development on an island in Panama. (
The instant motions to dismiss by defendant Parsons followed.
Defendant Parsons moves to dismiss plaintiff's claims against her pursuant to Fed. R. Civ. P. 12(b)(2), contending that she does not have the requisite minimum contacts with the forum state of California to allow the court to exercise personal jurisdiction over her.
As an initial matter, plaintiff objects that defendant Parsons's motion is unusually simple with minimum information. Indeed, the motion is only two pages long. However, defendant Parsons, like plaintiff, is proceeding pro se and the court accordingly has a duty to construe her pleadings and filings liberally. Additionally, despite the brevity of her motion, defendant Parsons sets forth her arguments succinctly with sufficient substance to provide plaintiff with meaningful notice of the grounds of the motion and an opportunity to respond. Accordingly, the court proceeds to the merits of the motion.
The plaintiff generally bears the burden of establishing the district court's personal jurisdiction over the defendant.
In her motion, defendant Parsons states that she has been a continuous permanent resident of Colorado for 33 years and has not been to California since 1995 when she was there on vacation. She is a shareholder of the Solarte Inn Corporation, which was organized and operated only in Panama. She has never personally met plaintiff, nor did she have any written or electronic communications with or concerning plaintiff. She argues that all of the actions complained of in this litigation took place in Panama and that she has no connections or contacts with California. Accordingly, defendant Parsons requests dismissal for lack of minimum contacts with California pursuant to
Plaintiff does not argue that this court has general jurisdiction over defendant Parsons. It is clear that she does not have the requisite continuous and systematic contacts with California that approximate a physical presence. Instead, plaintiff claims that the court has specific personal jurisdiction over defendant Parsons.
"Specific personal jurisdiction exists where a case arises out of forum-related acts."
For purposes of the first prong, a plaintiff "must establish that [the defendant] either purposefully availed [herself] of the privilege of conducting activities in California, or purposefully directed [her] activities toward California. . . A purposeful availment analysis is most often used in suits sounding in contract. . . A purposeful direction analysis, on the other hand, is most often used in suits sounding in tort."
The Ninth Circuit evaluates purposeful direction under the three-part "effects" test outlined in the U.S. Supreme Court's decision in
Plaintiff first argues that the express aiming requirement is satisfied as to defendant Parsons, because defendant David Miner acted as her agent when he allegedly "extorted [plaintiff] in California by threatening to file criminal complaints against him unless he issued titles without restrictions." (Dkt. No. 199 at 10.) This court previously rejected a similar argument made by plaintiff in the context of defendant Martha Thomas's motion to dismiss, when plaintiff argued that defendant David Miner and others were acting as defendant Thomas's agents. (Dkt. No. 169 at 21-22.) The court explained that, as a general matter, "[a]gents can bind their principals only if they have actual or apparent authority to do so."
As the court noted in its findings and recommendations regarding defendant Thomas's motion (subsequently adopted by the district judge), it may well be the case that defendant David Miner sent litigation updates to the other defendants, including defendant Parsons, regarding the Panama criminal action. Indeed, the defendants may well have communicated and shared ideas for purposes of the litigation in Panama. However, as in that previous motion, plaintiff here offers no evidence that defendant Parsons actually authorized defendant David Miner to act on her behalf in any conduct expressly aimed at California. Nor has plaintiff provided evidence that defendant Parsons made representations of such authority to plaintiff or a third party, resulting in apparent authority. To the contrary, defendant Parsons expressly denies sending any written or electronic communications to plaintiff or concerning plaintiff, a fact which plaintiff does not dispute.
Apart from bare allegations in the face of defendant Parsons's specific denials, plaintiff has not come forth with even a minimal showing of evidence to support his agency theory. The November 15, 2008 e-mail from defendant David Miner to defendants and other third parties, attached as Exhibit C to plaintiff's opposition (
Similarly, plaintiff's argument that defendant David Miner acted as defendant Parsons's agent solely because he was her "partner" in the Solarte Inn Corporation (which owns a bed-and-breakfast operation in Panama) is without merit. While the acts of a partner in some circumstances may bind the partnership when the acts relate to the usual business of the partnership,
Thus, there is no basis to conclude that the express aiming requirement for purposeful direction is satisfied as to defendant Parsons by virtue of defendant David Miner's alleged actions. Each defendant's contacts with the forum state must be assessed on an individual basis.
Plaintiff further argues that the express aiming requirement is satisfied, because defendants, including defendant Parsons, personally attacked him in California when they filed their criminal complaints in Panama. He claims that even though the attack "went through Panama," the result was felt in California. Again, the court has already rejected this argument made by plaintiff in the prior motion to dismiss brought by defendant Martha Thomas. The court reasoned as follows:
(Dkt. No. 169 at 17-18.) In an extensive discussion of Ninth Circuit case law, the court explained that the express aiming requirement is only satisfied when the defendant individually targeted a known California resident's business, activities, or presence in California. (Dkt. No. 169 at 18-20.)
Here, the criminal actions in Panama did not individually target plaintiff's business or activities in California. The actions were filed in Panama, concerned a Panama property dispute, and challenged plaintiff's Panama activities. Therefore, Panama was the focal point of the litigation, and any resultant harm suffered by plaintiff's business in California is incidental. Plaintiff implicitly concedes as much when he acknowledges that "Defendant's attack of Johnson went through Panama but the result was felt in California." (Dkt. No. 199 at 10.) This amounts to no more than a reiteration of the argument that specific personal jurisdiction in California is proper because plaintiff is a resident of California, which has never been the test for specific personal jurisdiction. Additionally, contrary to plaintiff's claim, the allegedly large volume of criminal complaints filed in Panama does not change the fact that California was not the focal point of the criminal actions.
Furthermore, plaintiff's contention that he was targeted as an individual in California, because defendants sued him as opposed to Grupo Islas Tropicales (the corporation which technically undertook the development in Panama) or Monte Watson (its salesperson) is devoid of merit. In his own complaint, plaintiff alleges that he, as a real estate developer, and his "related corporations" Grupo Islas Tropicales and others undertook the planned unit development at issue in Panama. (TAC at 3.) Plaintiff's attempt to now disclaim his involvement in the development by relying on corporate formalities is unpersuasive.
Accordingly, the court finds that plaintiff has failed to show that defendant Parsons engaged in any conduct expressly aimed at California. As such, plaintiff failed to make a colorable showing of purposeful direction on her part. "The plaintiff bears the burden of satisfying the first two prongs of the test [for specific personal jurisdiction]. . . If the plaintiff fails to satisfy either of these prongs, personal jurisdiction is not established in the forum state."
In his opposition, plaintiff also requests leave to conduct jurisdictional discovery regarding defendant Parsons. The court must therefore decide whether plaintiff is entitled to a further opportunity to generate potential evidence that this court has personal jurisdiction over defendant Parsons.
"In considering a motion to dismiss for lack of personal jurisdiction, a court may either postpone the decision and permit discovery, determine the motion on the basis of the pleadings and affidavits, or hold an evidentiary hearing."
"Although there is no definitive Ninth Circuit authority specifically addressing the level of showing that a plaintiff must make to be entitled to jurisdictional discovery, district courts in this circuit have required a plaintiff to establish a `colorable basis' for personal jurisdiction before discovery is ordered."
Here, for the reasons discussed above, plaintiff has not made even a colorable showing that this court has personal jurisdiction over defendant Parsons. Moreover, it is not clear what discovery plaintiff intends to conduct. He merely states that he "requests leave to conduct jurisdictional discovery on Parsons to confirm that Miner acted as an agent for Parsons." (Dkt. No. 199 at 11.) This amounts to no more than a request "to fish on a hunch that something might be caught in a widely-cast net."
Finally, in light of the court's conclusion that it lacks personal jurisdiction over defendant Parsons, the only issue remaining is whether plaintiff's claims against defendant Parsons should be dismissed or transferred to the District of Colorado where Parsons resides. 28 U.S.C. § 1631 provides that:
In this case, the court cannot transfer the entire action to the District of Colorado, because it is obvious that the Colorado district court would lack personal jurisdiction over several of the other defendants.
The Circuits are split regarding whether the language of 28 U.S.C. § 1631 permits federal courts to partially transfer an action.
While the Ninth Circuit has not squarely addressed the issue, it implicitly recognized that a portion of a case could be transferred.
Thus, the only question is whether transfer would be in the interest of justice. "When determining whether transfer is in the interest of justice, courts have considered whether the failure to transfer would prejudice the litigant, whether the litigant filed the original action in good faith, and other equitable factors."
In this case, it is clear that plaintiff did not have a sufficient basis for bringing his claims against defendant Parsons in this district. Nevertheless, given plaintiff's pro se status, the court cannot confidently conclude that plaintiff acted in bad faith. Moreover, a failure to transfer would prejudice plaintiff, because the statute of limitations would likely bar refiling the claims against defendant Parsons in Colorado and plaintiff would be unnecessarily required to pay another filing fee. Furthermore, for these same reasons, the court has already severed and transferred plaintiff's claims against defendant Martha Thomas to the District for Colorado, and it may be possible for the claims against these defendants to be consolidated in that district.
Accordingly, the court will recommend that defendant Parsons's motion to dismiss for lack of personal jurisdiction be granted in part and that plaintiff's claims against defendant Parsons be severed under Fed. R. Civ. P. 21 and transferred to the United States District Court for the District of Colorado.
In light of the court's conclusion that it lacks personal jurisdiction over defendant Parsons, it is unable to (or exercises its discretion not to) adjudicate defendant Parsons's alternative motion to dismiss for failure to state a claim upon which relief can be granted pursuant to Fed. R. Civ. P. 12(b)(6). Accordingly, the court will recommend that the motion be denied without prejudice.
In his opposition to defendant Parsons's motions, plaintiff also included a request for leave to amend his complaint to include Exhibit C to the opposition (the above-mentioned November 15, 2008 e-mail from defendant David Miner), (
The court recognizes that the Federal Rules of Civil Procedure provide that the court should ordinarily "freely give leave [to amend] when justice so requires." Fed. R. Civ. P. 15 (a)(2). However, the court has already cautioned plaintiff on several occasions that amendments to the complaint are now at an end. This action has already been pending since July 23, 2010, the pleadings are not settled, certain jurisdictional issues remain unresolved (at least some of which were caused by later amendments to the complaint), and the case has not yet been scheduled for trial. This is primarily because the court, in light of plaintiff's pro se status, has given plaintiff multiple opportunities to amend his complaint. However, at this stage, further amendment will prejudice defendants, who deserve to proceed to the merits and have their day in court as well. As such, the court finds that further amendment is not in the interests of justice.
Furthermore, the proposed amendment here is futile, because plaintiff merely wishes to attach an essentially evidentiary exhibit (an e-mail) to the complaint. Nothing precludes plaintiff from utilizing the e-mail in subsequent motions and other proceedings in accordance with the Federal Rules of Civil Procedure and the Federal Rules of Evidence. Indeed, the court expressly considered the e-mail for purposes of deciding defendant Parsons's motion to dismiss for lack of personal jurisdiction. Therefore, there is no reason to amend the complaint merely to add the e-mail as an exhibit.
For the foregoing reasons, IT IS HEREBY RECOMMENDED THAT:
1. Defendant Kim Parsons's motion to dismiss for lack of personal jurisdiction (dkt. no. 181) be granted in part and that plaintiff's claims against defendant Parsons be severed under Fed. R. Civ. P. 21 and transferred to the United States District Court for the District of Colorado.
2. Defendant Kim Parsons's motion to dismiss for failure to state a claim upon which relief can be granted pursuant to Fed. R. Civ. P. 12(b)(6) be denied without prejudice.
3. Plaintiff's request for leave to amend the third amended complaint be denied.
These findings and recommendations are submitted to the United States District Judge assigned to the case, pursuant to the provisions of 28 U.S.C. § 636(b)(1). Within fourteen (14) days after being served with these findings and recommendations, any party may file written objections with the court and serve a copy on all parties. Such a document should be captioned "Objections to Magistrate Judge's Findings and Recommendations." Any reply to the objections shall be served and filed within seven (7) days after service of the objections. The parties are advised that failure to file objections within the specified time may waive the right to appeal the District Court's order.