EDWARD J. DAVILA, District Judge.
Plaintiff Khoa Dang Nguyen ("Nguyen") filed a Complaint against Randy Parker ("Parker"), in his individual capacity as Chief Executive Officer and President of Permanent General Companies ("The General"), for damages incurred after an automobile accident. Presently before the court is Parker's Motion to Dismiss the Complaint.
Federal jurisdiction arises pursuant to 28 U.S.C. § 1332. The court finds this matter suitable for decision without oral argument pursuant to Civil Local Rule 7-1(b). Accordingly, the hearing scheduled for March 19, 2015, will be vacated, and Parker's motion will be granted for the reasons explained below.
Although the Complaint is not a model of clarity, the court has been able to decipher the salient facts from Nguyen's allegations and other documents submitted by Parker.
Burton had liability insurance with The General at the time of the accident. His policy allowed up to $15,000 per person or $30,000 per accident for claims of bodily injury, and up to $5,000 for property damage claims.
On September 12, 2013, Nguyen made a demand on The General for $60,579.68, which amount included damages for medical expenses, legal services, property damage, and income loss. The General countered Nguyen's demand with an offer of $8,960 for medical expenses, which was eventually raised to the policy limit of $15,000. The General also paid Nguyen $1,394.95 based on its estimate of the damage to his vehicle.
Seemingly unsatisfied with the offer, Nguyen filed a lawsuit against The General in this court on April 4, 2014.
Parker invokes several sections of Federal Rule of Civil Procedure 12, but only two are necessary to entirely resolve this motion.
Under Rule 12(b)(2), a defendant may move for dismissal based on a lack of personal jurisdiction. Two independent limitations may restrict a court's power to exercise personal jurisdiction over a nonresident defendant: the applicable state personal jurisdiction rule and constitutional principles of due process.
Due process permits the exercise of jurisdiction if a court has either general or specific jurisdiction over a nonresident defendant.
Though the plaintiff bears the burden of demonstrating jurisdiction, where, as here, a court considers only written materials, the plaintiff need only make a prima facie showing of jurisdictional facts to overcome a defendant's motion to dismiss.
Federal Rule of Civil Procedure 8(a) requires a plaintiff to plead each claim with sufficient specificity to "give the defendant fair notice of what the . . . claim is and the grounds upon which it rests."
Functionally, the plaintiff's "well-pleaded factual allegations" will be treated as true for the purposes of a Rule 12(b)(6) motion.
Parker argues for dismissal under Rule 12(b)(2) because the Complaint does not establish a basis for personal jurisdiction over him as an individual. Under Rule 12(b)(6), Parker contends Nguyen cannot state a claim against him as a matter of law. These arguments are addressed in turn below.
Since there is not an opposition to this motion, the court has reviewed the Complaint's allegations and attachments to determine whether there exists a basis for personal jurisdiction over Parker. It is apparent the pleadings are insufficient for that purpose, even when construed in a light favorable to Nguyen. Indeed, aside from naming Parker in the caption and listing a service address for him in Tennessee, there are no allegations — jurisdictional or otherwise — which describe Parker's connections to California or his individual involvement in Nguyen's claim against Burton or The General. None of the documentation attached to the Complaint mentions Parker, nor is he alleged to have directed the rejection of Nguyen's offers or personally authorized any of The General's counter-offers.
Under these circumstances, Nguyen did not satisfy his burden to show that the court may exercise either general or specific personal jurisdiction over Parker as an individual defendant. For general jurisdiction, Nguyen did not plead any facts demonstrating Parker's "substantial" or "continuous and systematic" California contacts.
As stated above, there are no allegations in the Complaint which constitute a claim against Parker. Thus, Parker is also properly dismissed under Rule 12(b)(6). But because Nguyen may have confused Parker with Burton or may have misconstrued the order addressing service issued in his prior action, the court feels compelled to address whether Nguyen can state a claim against The General if he were given leave to do so.
The factual allegations suggest that Burton entered into a liability insurance contract with The General, as evidenced by the Policy Declarations produced by Parker. Thus, Burton is an insured of the General. Nguyen, however, is not an insured of The General according to the police report from the accident on October 23, 2012. Nor do the allegations show that Nguyen is a party or intended beneficiary of Burton's insurance contract, that he obtained a judgment against Burton, or that he received an assignment of rights from Burton to sue The General. Nguyen therefore has not established that he can maintain a viable third-party action against The General for damages arising from the accident with Burton.
This raises the issue of leave to amend. The court recognizes that "[a] district court may deny leave to amend when amendment would be futile."
Based on the foregoing, Parker's Motion to Dismiss for lack of personal jurisdiction (Docket Item No. 11) is GRANTED. Parker is DISMISSED WITHOUT PREJUDICE.
The Motion to Dismiss for failure to state a claim is also GRANTED and the Complaint is dismissed in its entirety. Nguyen may file an amended complaint on or before
1. Any amended complaint shall not name Parker as a defendant but must instead name The General and must contain allegations which establish both federal subject matter jurisdiction and personal jurisdiction over The General.
2. Nguyen must also state in the amended complaint why he can bring a case against The General even though he is not a party to an insurance contract with that company. He may be able to do this by showing that he obtained a judgment against Burton or that he obtained an assignment of rights from Burton.
Nguyen is advised that failure to file a timely amended complaint or failure to amend the complaint in a manner consistent with this Order may result in the dismissal of this action without further notice. Nguyen is further advised that, because his application to proceed in forma pauperis was granted (Docket Item No. 5), the court will conduct a review of any amended complaint pursuant to 28 U.S.C. § 1915(e)(2) before ordering service of process.
The hearing scheduled for March 19, 2015, is VACATED. Parker's ex parte motion (Docket Item No. 13) is DENIED AS MOOT. Nguyen's Motion filed December 2, 2014 (Docket Item No. 16) is DENIED.