PAUL W. GRIMM, District Judge.
Plaintiff Due Forni LLC, a Las Vegas pizza restaurant, purchased pizza ovens from Defendants Euro Restaurant Solutions, Inc., d/b/a Marra Forni ("ERS"), and Francesco Marra. After encountering various problems with the ovens and then learning that they were not manufactured by the company that Defendants represented to be the manufacturer, Plaintiff brought this lawsuit against Defendants for fraud in the inducement, fraud, breach of contract, and conversion. Defendants moved to dismiss, and Plaintiff filed an Amended Complaint, followed by a Motion for Default Judgment when Defendants neither answered the Amended Complaint nor renewed their Motion to Dismiss.
The parties' business relationship began in October 2010, when Plaintiff contracted to purchase from Defendants two "true Neapolitan pizza" ovens, "manufactured by an Italian company called Cirigliano Forni."
In March 2013, Plaintiff's Chief Executive Officer, Alex Taylor, and Executive Chef Partner, Carlos Buscaglia, attended the 29th Annual International Pizza Expo and learned that the ovens they purchased were manufactured by Morello Forni, not Cirigliano Forni, and "falsely represented to be Cirigliano ovens." Am. Compl. ¶¶ 53-54. After Plaintiff "attempt[ed] to resolve their concerns with DEFENDANT MARRA" without success, "on April 13, 2013, PLAINTIFF canceled the order for the two new ovens and demanded the return of its $25,900 deposit," which Defendants refused. Id. ¶¶ 56-57. Thereafter, Plaintiff filed this action for the return of the money it paid Defendants, as well as "all available compensatory and punitive damages." Compl. ¶¶ 4-5, ECF No. 1.
On February 18, 2014, Defendants moved to dismiss, arguing primarily that the amount in controversy does not exceed $75,000 and therefore this Court lacks subject matter jurisdiction. Defs.' Mot. ¶ 1; see Defs.' Mem. 1. Plaintiff had twenty-four days, or until March 14, 2014, to amend its Complaint as a matter of course in response to Defendants' motion. See Fed. R. Civ. P. 15(a)(1)(B) (twenty-one days after service of motion to dismiss); Fed. R. Civ. P. 5(b)(2)(E) & 6(d) (three additional days after service by electronic means). Plaintiff filed a timely Amended Complaint on March 12, 2014,
Defendants' Motion to Dismiss focuses on 28 U.S.C. § 1332(a), which requires that the amount in controversy exceed $75,000 in a diversity action for this Court to have subject matter jurisdiction. Defs.' Mem. 1; see 28 U.S.C. § 1332(a). Of significance, a court generally "`determines the existence of diversity jurisdiction "at the time the action is filed," regardless of later changes in originally crucial facts such as the parties' citizenship or the amount in controversy.'" Mackin v. Variety Wholesalers, Inc., No. ELH-13-3849, 2014 WL 1320027, at *2 (D. Md. Mar. 31, 2014) (quoting Porsche Cars North America, Inc. v. Porsche.net, 302 F.3d 248, 255-56 (4th Cir. 2002) (quoting Freeport-McMoRan, Inc. v. K N Energy, Inc., 498 U.S. 426, 428 (1991))). Consequently, Plaintiff cannot meet the jurisdictional minimum by amending its Complaint to increase the amount in controversy.
Nonetheless, insofar as Plaintiff filed its Amended Complaint in response to Defendants' Motion to Dismiss, without separately filing an opposition, to ignore the factual allegations in the Amended Complaint would be to exalt form over substance. See Fed. R. Civ. P. 1; Hall v. Sullivan, 229 F.R.D. 501, 504 (D. Md. 2005). Further, a plaintiff can support its jurisdictional allegations by affidavit in response to a motion to dismiss. See Momin v. Mag giemoo's Int'l, LLC, 205 F.Supp.2d 506, 509-10 (D. Md. 2002) (noting that "`[w]here the amount in controversy is contested, the proponent of federal jurisdiction must "support its assertion with competent proof"'" (quoting Rexford Rand Corp. v. Ancel, 58 F.3d 1215, 1218 (7th Cir. 1995) (quoting McNutt v. Gen. Motors Acceptance Corp., 298 U.S. 178, 189 (1936)))). The allegations in an amended complaint, filed pursuant to Rule 11, should suffice. See Fed. R. Civ. P. 11(b)(3) (an attorney presenting a pleading to the Court certifies that "the factual contentions have evidentiary support or, if specifically so identified, will likely have evidentiary support after a reasonable opportunity for further investigation or discovery"). Therefore, I will consider the additional factual allegations of the Amended Complaint, to the extent that they substantiate the amount in controversy pleaded in the original Complaint.
The required amount in controversy "is satisfied by reference to the allegations of the complaint that are made in good faith, and the sums demanded in the complaint control." Morris v. Naugle, 722 F.Supp. 1285, 1286 (D. Md. 1989); see Choice Hotels Int'l, Inc. v. Shiv. Hospitality, L.L.C., 491 F.3d 171, 176 (4th Cir. 2007). If a defendant "seek[s] to divest the court of jurisdiction" when the plaintiff has specified an amount of damages greater than $75,000, that defendant has the burden of "show[ing] `to a legal certainty' that the claim is really for less than the jurisdictional amount." Morris, 722 F. Supp. at 1286 (citing St. Paul Mercury Indemnity Co. v. Red Cab Co., 303 U.S. 283, 289 (1938)); see JTH Tax, Inc. v. Frashier, 624 F.3d 635, 638 (4th Cir. 2010). This is a "heavy burden" under which the defendant "must show `the legal impossibility of recovery' to be `so certain as virtually to negative the plaintiff's good faith in asserting the claim.'" JTH Tax, Inc., 624 F.3d at 638 (citation omitted); see Accuvant, Inc. v. MEgadata Tech., LLC, No. AW-12-1647, 2012 WL 6563371, at *2-3 (D. Md. Dec. 13, 2012).
As originally filed, Plaintiff's Complaint stated that Plaintiff purchased two ovens for $58,320, Compl. ¶¶ 4, 15, 22, and paid a deposit of $25,900 for two additional ovens, id. ¶¶ 50-51, based on the false representation that these were Cirigliano ovens, id. ¶¶ 48, 56-58. Plaintiff sought in damages "the money paid under false pretenses." Id. at 16. Also, Plaintiff alleged that "the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs," and sought "all available compensatory and punitive damages," including "damages in the form of lost profits, contributions to fixed overhead, and other compensable injuries to be proven at trial." Id. ¶¶ 3-5, 9, 62, 69, 74, 77. Moreover, in Plaintiff's Amended Complaint, Plaintiff clarifies that its damages include the $84,220 that Plaintiff paid to Defendants: $58,320 for the two original ovens and the deposit of $25,900 for the later two ovens.
Defendants argue that they "can show with `legal certainty' that Plaintiff is not entitled to recovery of those damages" that Plaintiff has alleged. Defs.' Mem. 10. In support, Defendants attach the ERS/Marra Forni Terms and Conditions of Sale ("Contract"), which governed the sale of the ovens. See id. at 11-12; Defs.' Mot. Ex. 1, ECF No. 6-2. The Contract provides:
Contract ¶ 10. The Contract also states that purchasers relinquish their deposits for any order cancelled after twenty-one days. Id. ¶ 12(c). Based on this contract language—which Plaintiff does not dispute—, and given that Plaintiff filed its Complaint years after its first Contract with ERS, Plaintiff clearly cannot recover in excess of $75,000 under its claim for breach of contract. See id. ¶¶ 10, 12(c).
Further, Plaintiff has not responded to Defendants' Motion to Dismiss beyond amending its Complaint, and the Amended Complaint does not challenge the applicability of the Contract's clauses limiting Plaintiff's ability to recover. On that basis alone, I have "the discretion to dismiss the case without reaching the merits." Knott v. Wedgwood, No. DKC-13-2486, 2014 WL 1573548, at *3 (D. Md. 2014); see White v. Wal Mart Stores, Inc., No. ELH-13-31, 2014 WL 1369609, at *2 (D. Md. Apr. 4, 2014) (dismissing plaintiff's complaint when plaintiff did not oppose defendant's motion to dismiss). This is because a failure to oppose a motion to dismiss is viewed as an abandonment of the claims at issue in the motion, Knott, 2014 WL 1573548, at *3 (quoting Ferdinand-Davenport v. Children's Guild, 742 F.Supp.2d 772, 777 (D. Md. 2010), and a concession that the "`complaint is deficient for the reasons stated by defendant,'" id. (quoting White, 2014 WL 1369609, at *2). Therefore, Defendants' Motion to Dismiss IS GRANTED as to Plaintiff's claim for breach of contract.
However, the Contract does not limit Plaintiff's fraud claims. See Bank of Montreal v. Signet Bank, 193 F.3d 818, 829 (4th Cir. 1999) (noting that "the tort of fraud in the inducement precedes the contract, so a contractual waiver of liability is ineffective"); Creamer v. Helferstay, 448 A.2d 332, 337 (Md. 1982) (fraud is ground for contractual rescission). Defendants contend that Plaintiff's fraud counts should be dismissed nonetheless because they do not "contain . . . allegations of fact to what damages the plaintiff alleges actually occurred," which "is critical to establishing alleged damages in a fraud claim."
Defendants also contend that Plaintiff fails to state a claim for conversion
As amended, Plaintiff's Complaint adds a claim for unjust enrichment, Am. Compl. ¶ 1, which Defendants do not challenge. However, I note that when an express contract is present, as is the case here, a plaintiff cannot recover under the quasi-contractual theory of unjust enrichment. See Froelich v. Erickson, 96 F.Supp.2d 507, 524 (D. Md. 2000), aff'd sub nom. Froelich v. Senior Campus Living, LLC, 246 F.3d 664 (4th Cir. 2001). Because Defendants did not seek dismissal on this point, I will not address and resolve it sua sponte.
In sum, Plaintiff's Motion for Default Judgment, ECF No. 12, IS DENIED, and Defendants' Motion to Dismiss for Lack of Jurisdiction for Failure to Meet Amount in Controversy Requirement, ECF No. 6, IS GRANTED IN PART AND DENIED IN PART. Defendants' Motion IS GRANTED as to Plaintiff's claims for breach of contract and conversion, which ARE DISMISSED, and IS DENIED as to Plaintiff's fraud claims and unjust enrichment claim. Thus Plaintiff's Amended Complaint includes claims for fraud in the inducement, fraud, and unjust enrichment. Defendants ARE DIRECTED to file an Answer on or before July 17, 2014.
So Ordered.
John B. Parsons Home, LLC v. John B. Parsons Found., No. 109, 2014 WL 1711236, at *9-10 (Md. Ct. Spec. App. Apr. 30, 2014) (quoting Lasater v. Guttmann, 5 A.3d 79, 88 (2010) (internal citation and quotation marks omitted)).