JOHN D. BATES, United States District Judge.
Plaintiff Winston & Strawn LLP ("W & S") brings this action against defendant
W & S alleges that in January 2010, Eaves, on behalf of Eaves Law Firm, retained W & S to provide legal services. See Compl. ¶ 6. Under the terms of the agreement, Eaves Law Firm agreed to pay W & S a monthly rate of $12,000. See Pl.'s Opp'n to Def.'s Mot. to Dismiss ("Pl.'s Opp'n") Ex. 1 [ECF No. 9-1] at 12-15. Nine months later, alleges W & S, Eaves again entered into an agreement with W & S on behalf of Eaves Law Firm by adjusting the monthly rate to $18,000. See id. ¶ 9. W & S continued to provide legal services until November 2011, when it stopped because of Eaves Law Firm's purported failure to pay its fees in full.
W & S then filed a complaint against Eaves Law Firm for breach of contract, demanding unpaid legal fees amounting to $279,400.63. Eaves has now moved to dismiss the complaint, arguing that Eaves Law Firm does not exist and that W & S's complaint fails to adequately plead a claim for breach of contract.
Whether service was proper is a jurisdictional issue: "federal courts lack the power to assert personal jurisdiction over a defendant unless the procedural requirements of effective service of process are satisfied." Mann v. Castiel, 681 F.3d 368, 372 (D.C.Cir.2012). Proper service of process "is not some mindless technicality." Friedman v. Estate of Presser, 929 F.2d 1151, 1156 (6th Cir.1991) (quoting Del Raine v. Carlson, 826 F.2d 698, 704 (7th Cir.1987)). Instead, the requirement stems from the Due Process Clause of the Fifth Amendment, which requires that defendants receive adequate notice of the proceedings against them. See Dusenbery v. United States, 534 U.S. 161, 167, 122 S.Ct. 694, 151 L.Ed.2d 597 (2002). "When a defendant moves to dismiss under Rule 12(b)(5), the plaintiff has the burden of establishing the validity of service of process." Freedom Watch, Inc. v. Org. of Petroleum Exporting Countries, 288 F.R.D. 230, 231 (D.D.C.2013). To meet this burden, the plaintiff "must demonstrate that the procedure employed satisfied the requirements of the relevant portions of Rule 4 and any other applicable provision of law." Light v. Wolf, 816 F.2d 746, 751 (D.C.Cir.1987).
Generally, if "matters outside the pleadings are presented to and not excluded by the court, the motion must be treated as one for summary judgment under Rule 56." Fed. R. Civ. P. 12(d). But "a court may consider material outside of the pleadings in ruling on a motion to dismiss for lack of venue, personal jurisdiction, or
To survive a motion to dismiss under Rule 12(b)(6), a complaint need only contain "`a short and plain statement of the claim showing that the pleader is entitled to relief,'" such that the defendant had "`fair notice of what the ... claim is and the grounds upon which it rests.'" Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (quoting Conley v. Gibson, 355 U.S. 41, 47, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957)). Although "detailed factual allegations" are not necessary to withstand a Rule 12(b)(6) motion to dismiss, a plaintiff must supply "more than labels and conclusions" or "a formulaic recitation of the elements of a cause of action" to provide the "grounds" of "entitle[ment] to relief." Twombly, 550 U.S. at 555-56, 127 S.Ct. 1955; see also Papasan v. Allain, 478 U.S. 265, 286, 106 S.Ct. 2932, 92 L.Ed.2d 209 (1986). Instead, "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, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Twombly, 550 U.S. at 570, 127 S.Ct. 1955).
"[I]n passing on a motion to dismiss ... the allegations of the complaint should be construed favorably to the pleader." Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974); see also Leatherman v. Tarrant Cnty. Narcotics Intelligence & Coordination Unit, 507 U.S. 163, 164, 113 S.Ct. 1160, 122 L.Ed.2d 517 (1993). Therefore, the factual allegations must be presumed true, and plaintiffs must be given every favorable inference that may be drawn from allegations of fact. See Scheuer, 416 U.S. at 236, 94 S.Ct. 1683; Sparrow v. United Air Lines, Inc., 216 F.3d 1111, 1113 (D.C.Cir.2000). The Court need not, however, accept as true "a legal conclusion couched as a factual allegation," or inferences that are unsupported by the facts set out in the complaint. Trudeau v. FTC, 456 F.3d 178, 193 (D.C.Cir. 2006) (quoting Papasan, 478 U.S. at 286, 106 S.Ct. 2932).
Eaves moves to dismiss the complaint for insufficient service of process under Rule 12(b)(5) and for failure to state a claim upon which relief can be granted under Rule 12(b)(6). The Court will first examine the service issue, and then turn to Eaves's argument that W & S has failed to adequately plead a breach of contract.
The Court must first address a preliminary matter. W & S attached exhibits to its opposition to Eaves' motion to dismiss in support of its argument that Eaves Law Firm is an entity that can be sued. Generally, a court must convert a motion under Rule 12 into a Rule 56 motion for summary judgment when it considers matters outside the pleadings. See Fed. R. Civ. P. 12(d). A court need not do so, however, if the outside material is considered to determine jurisdictional questions. See Artis, 223 F.Supp.2d at 152. Whether Eaves Law Firm was properly
Eaves argues that Eaves Law Firm is not an entity that can be sued, that he cannot accept service of process for an entity that does not exist, and that W & S did not name the correct party in the complaint. Eaves is incorrect on each of these points, for the reasons explained below.
Eaves first contends that Eaves Law Firm does not exist. W & S counters that Eaves Law Firm is an entity that may be served under Rule 4(h)(1)(B), but W & S does not specify what kind of entity. Instead, it simply refers to Eaves Law Firm as a "corporate entity" or a "law firm." Pl.'s Opp'n [ECF No. 9] at 6. Rule 4(h)(1)(B) governs service on a corporation, partnership, or association. Eaves Law Firm is not a corporation, as W & S admits, because it has not filed articles of incorporation in any state. Id. at 7. The inquiry does not end there, however, because Eaves Law Firm could be considered a partnership.
"Under Rule 17(b)(3), District of Columbia law governs whether [an] alleged partnership has a capacity to sue and be sued." Embassy of Federal Republic of Nigeria v. Ugunionye, 901 F.Supp.2d 92, 97 (D.D.C.2012); see Fed. R. Civ. P. 17(b)(3). District of Columbia law, in turn, provides that "the internal affairs of a partnership [are governed by] ... the law of the state of the jurisdiction in which the partnership has its principal office." D.C. Code § 29-601.06. The internal affairs of a partnership include whether the partnership exists. See Ugwuonye, 901 F.Supp.2d at 97-98. W & S's complaint alleges that Eaves Law Firm's principal place of business is located in Jackson, Mississippi. See Compl. ¶ 2. Hence, whether the partnership exists depends on Mississippi law.
Under Mississippi law, "the association of two or more persons to carry on as co-owners of a business for profit forms a partnership, whether or not the persons intend to form a partnership." Miss. Code. Ann. § 79-13-202(a). An express agreement is not required to form a partnership, and "`intent may be implied or established from the surrounding circumstances.'" Smith v. Redd, 593 So.2d 989, 994 (Miss.1991) (quoting Norman Prop. v. Bozeman, 557 So.2d 1265, 1270 (Ala.1990)); see also Allied Steel Corp. v. Cooper, 607 So.2d 113, 117 (Miss.1992) (noting that absent an express contract, a partnership can be implied through the parties' conduct). The main factors considered when determining whether a partnership exists are the intent of the parties, the control the parties exercised on the enterprise, whether profit was shared, and how the alleged partnership holds itself out to third parties, but none of these factors is dispositive. See Redd, 593 So.2d at 996; see also Beckman v. Farmer, 579 A.2d 618, 628 (D.C.1990) (finding that the way a firm holds itself out to clients is relevant in determining the firm's legal characteristics).
Because Eaves Law Firm is a legal entity with the capacity to be sued, Federal Rule of Civil Procedure Rule 4(h)(1)(B) applies in determining whether serving Eaves was sufficient to serve the firm. When serving a partnership or other unincorporated association, plaintiffs must serve "a managing or general agent, or any other agent authorized ... to receive service of process." Fed. R. Civ. P. 4(h)(1)(b). In general, "service is sufficient when made upon an individual who stands in such a position as to render it fair, reasonable, and just to imply the authority on his part to receive service." Estate of Klieman v. Palestinian Auth., 547 F.Supp.2d 8, 13 (D.D.C.2008).
The complaint here states that Eaves conducted business with W & S on behalf of Eaves Law Firm, an allegation that Eaves does not expressly deny. See Compl. ¶ 9. Eaves Law Firm's secretary repeatedly told the process server that Eaves was one of only two persons at the firm who could accept service. See Pl.'s Opp'n Ex. 9 [ECF No. 9-9] at 28. And when Eaves was served at his home, he gave no indication to the process server that he was not authorized to receive service on behalf of Eaves Law Firm. Taken together, these facts are sufficient to establish that Eaves is authorized to receive service on Eaves Law Firm's behalf.
Eaves also argues that service was improper because W & S named the wrong entity. But the apparent ambiguity over the correct name of the Eaves Law Firm does not warrant a dismissal for failure to name the proper party. A party has a right "to be accurately named in the process and pleadings of the court." United States v. A.H. Fischer Lumber Co., 162 F.2d 872, 873 (4th Cir.1947). The requirement that a party be accurately named in
Throughout his dealings with W & S, Eaves was ambiguous as to his firm's actual name. He signed the contract in question on behalf of "The Law Firm of John Arthur Eaves." See Pl.'s Opp'n Ex. 3 [ECF No. 9-3] at 15. But Eaves seems not to have settled on a name for his firm: his website refers to it as both "The Law Offices of John Arthur Eaves" and "Eaves Law Firm." See Pl.'s Opp'n Ex. 3 [ECF No. 9-3] at 17-19. Also, W & S alleges that Eaves never corrected W & S when it referred to the Eaves Law Firm in its dealings with Eaves. It would not be proper for the Court to dismiss a complaint for failure to properly name a party when the party itself has not settled on its own name.
In sum, the Court finds that Eaves Law Firm is a partnership with the capacity to be sued, that serving Eaves was sufficient to serve Eaves Law Firm, and that the complaint named the proper party. Hence, Eaves's Rule 12(b)(5) motion to dismiss will be denied.
Eaves next argues that the complaint provides "no proof" of an out-standing debt between Eaves Law Firm and W & S.
W & S's complaint adequately pleads a breach of contract because, like the complaints found to be sufficient in Nattah v. Bush and Ponder v. Chase Home Fin., LLC, the complaint identifies the parties to the contract and the contract's material terms, discusses W & S's performance of the contract, and alleges how Eaves Law Firm breached the contract. Compare Nattah, 605 F.3d at 1058,
For the foregoing reasons, the Court will deny Eaves Law Firm's motion to dismiss. A separate order has issued on this date.