STEVEN D. MERRYDAY, District Judge.
This litigation arises from a failed business transaction in which the plaintiff attempted to purchase the defendants' ownership interest in a company and in the company's subsidiaries and affiliates. Although the parties signed a "letter of intent," the parties never completed the transaction. The plaintiff sues (Doc. 1) for breach of contract (Count I), "fraudulent inducement and misrepresentation" (Count II), and negligent misrepresentation (Count III). The defendants move (Doc. 17) to dismiss Count I for failure to join required parties,
Entitled "PERSONS REQUIRED TO BE JOINED IF FEASIBLE," Rule 19(a), Federal Rules of Civil Procedure, states:
The defendants explain that the letter of intent between the parties includes signatories that the plaintiff failed to name in the complaint. Citing Rule 19(a)(1)(B), the defendants argue that the remaining signatories are required parties,
The defendants list several reasons for finding that the remaining signatories are required parties, but the defendants fail to address whether each remaining signatory is "subject to service of process," which Rule 19(a)(1) requires. Stated differently, the defendants fail to address whether joinder is "feasible" under Rule 19(a)(1). See Moore's Federal Practice, Vol. 4, § 19.02[3][b] (3d ed. 2014) ("An absentee who is required must be `subject to service of process' in the pending case. Although [required], if the absentee cannot be brought within the personal jurisdiction of the district court, joinder is infeasible.").
The plaintiff explains that the remaining signatories are foreign corporations that "conduct business in Ireland and Canada[and] are not subject to this Court's jurisdiction." (Doc. 21 at 5 n.1) The defendants implicitly concede the infeasibility of joining the remaining signatories (i.e., the inability to serve the remaining signatories with process) by explaining that the remaining signatories "have provided the [defendants' attorney] conditional authority to consent to this Court's jurisdiction over them." (Doc. 17 at 13 (footnote omitted)) However, even assuming that consent may substitute under Rule 19(a)(1) for service of process, a footnote in the motion explains that the authority granted by the remaining signatories is subject to conditions precedent that have not occurred.
Because the remaining signatories are not subject to service of process and have not consented to litigating in the Middle District of Florida, joinder is infeasible even if the remaining signatories are otherwise "required" under Rule 19(a)(1). Under Rule 19(b), "[i]f a person who is required to be joined if feasible cannot be joined, the court must determine whether, in equity and good conscience, the action should proceed among the existing parties or should be dismissed." Because "joint obligors are not indispensable parties to a suit based on breach of contract," "it follows that `in equity and good conscience,' it must be concluded that th[is] action should proceed. . . ."
Assuming that New York law applies to Counts II and III, the defendants argue that neither Count II nor Count III states a claim. The plaintiff responds extensively by arguing that Florida law applies and that both Count II and Count III state a claim under Florida law. Because briefing is incomplete, this order defers consideration of the defendants' motion to dismiss for failure to state a claim.
Rule 9(b) states, "In alleging fraud or mistake, a party must state with particularity the circumstances constituting fraud or mistake. Malice, intent, knowledge, and other conditions of a person's mind may be alleged generally." Accordingly, a complaint alleging fraud must describe the "`who,' `what,' `where,' `when,' and `how'" of the alleged fraud. Hopper v. Solvay Pharm., Inc., 588 F.3d 1318, 1327 (11th Cir. 2009).
The defendant argues that Count II — a claim for "fraudulent inducement and misrepresentation" — flouts Rule 9(b). However, in extensive detail, the complaint alleges (1) the content of the false statements, (2) the methods of disseminating the false statements, (3) the defendant responsible for each false statement, (4) the time and place of each false statement, and (5) the motive for each false statement. (Doc. 1 ¶¶ 19, 33-43, 65, 83) By pleading sufficiently the "time, place, and substance of the defendant[s'] alleged fraud," U.S. ex rel. Clausen v. Lab. Corp. of Am., Inc., 290 F.3d 1301, 1310 (11th Cir. 2002), the complaint complies with Rule 9(b).
The defendants' motion (Doc. 17) to dismiss Count I for failure to join required parties is
ORDERED.