MEMORANDUM OPINION
Plaintiff I Mark Marketing Services, LLC (“IMARK”) filed the above-captioned
I. BACKGROUND
Geoplast S.p.A., an Italian corporation headquartered in Padova, Italy, is a plasties manufacturer that specializes in construction-related products. Compl. ¶¶ 2, 6. IMARK is a marketing company organized as a Delaware limited liability company with its principal place of business in the District of Columbia (“District”). Id. ¶¶ 2, 5. In Italy, IMARK and Geoplast S.p.A. negotiated and, on February 5, 2009, entered into a two-year contract (“Contract”). Id. ¶¶ 7, 10; Def.’s Mot., Ex. B (Affidavit of Mirco Pegoraro (hereinafter, “Pegoraro Decl.”)), ¶¶ 4-5. 1 Pursuant to the Contract, IMARK agreed to assist Geoplast S.p.A. in expanding into the U.S. market. See Compl. ¶ 7; id., Ex. A (Contract in the original Italian); id., Ex. B (Contract Translated into English). 2 To accomplish Geoplast S.p.A.’s expansion, the Contract enumerates several tasks IMARK would undertake, including developing a marketing plan, establishing business relationships with U.S. entities on Geoplast S.p.A.’s behalf, and “establishing [Geoplast U.S.], subsidiary of [Geoplast S.p.A.], in Washington [D.C.], with legal business addressed at IMARK headquarters.” See id. ¶¶7, 16; id., Ex. B, at 2. Geoplast S.p.A., in turn, granted IMARK the exclusive right to market its goods in the United States and agreed to pay IMARK both a monthly fee of $10,000 and commissions, pursuant to a schedule set forth in the Contract, for any contracts IMARK secured on its behalf. See id. ¶¶ 8,12-15; id., Ex. B.
As contemplated by the Contract, on February 20, 2009, Geoplast S.p.A.’s managing director, Mirco Pegoraro, directed Roberta Marcenaro, IMARK’s vice president, to form a wholly-owned U.S. subsidiary of Geoplast S.p.A. (hereinafter, “Geoplast U.S.”) with the necessary licenses to conduct business in the District. Pl.’s Opp’n to Def.’s Mot. to Dismiss (“PL’s Opp’n”), Ex. 1 (Decl. of Roberta Marcenaro (hereinafter, “Marcenaro Decl.”)) ¶¶ 3, 5, 7. Geoplast U.S. was incorporated in Delaware on March 4, 2009, with Geoplast S.p.A.’s managing director, Mr. Pegoraro, as Geoplast U.S.’s president and sole director. Pl.’s Opp’n Ex. 2 (Decl. of Pietro
Geoplast U.S.’s sole purpose, according to Mr. Raugi, is to function as a conduit for Geoplast S.p.A.’s products to enter the U.S. market. Raugi Deck ¶ 11. Geoplast S.pA. paid the legal costs associated with Geoplast U.S.’s incorporation. Id. ¶¶ 12-14. In addition, Geoplast U.S. does not maintain its own bank account, as Geoplast S.p.A. pays Geoplast U.S.’s expenses and provides all of Geoplast U.S.’s assets. Id. ¶¶ 19, 25. 4 Geoplast U.S.’s website, which is maintained by Geoplast S.p.A. and was once simply an English translation of Geoplast S.p.A.’s website, allows customers to download brochures and pamphlets regarding Geoplast S.p.A.’s products. Id. ¶¶28, 31. These promotional materials group Geoplast S.p.A. and Geoplast U.S. under the heading of “Geoplast International,” with headquarters listed as Geoplast S.p.A.’s address in Italy and with a North American location listed as Geoplast U.S.’s address in the District. 5 See, e.g., Marcenaro Decl., Ex. C (Tank Elevator and Modulo System Brochures), at 8, 22. According to these materials, and the business cards Geoplast S.p.A. provided Mr. Raugi and Ms. Marcenaro as officers of Geoplast U.S., Geoplast U.S.’s principal place of business is the same as IMARK’s office—1054 31st Street NW, Suite 200, in Washington, D.C. See Raugi Decl. ¶¶ 21-22; id. Ex. D (Ms. Marcenaro’s Geoplast U.S. business card); id. Ex. G (Freezer Warehouse Brochure); Marcenaro Decl., Ex. C, at 8, 22.
For approximately a year, Geoplast S.p.A. and IMARK operated under the Contract without incident. Geoplast S.p.A. sent monthly payments to IMARK’s bank account located at 1400 G Street, N.W. in Washington D.C. ¶ 8. In addition, between March 2009 and July 2009, IMARK re
On February 4, 2010, for reasons unclear from the present record, Geoplast S.p.A. sent IMARK what IMARK characterizes as a “new” contract to govern the parties’ relationship. Compl. ¶ 25. IMARK refused to enter into this “new” contract or otherwise modify the parties’ existing Contract. Id. ¶ 26. Subsequently, Geoplast S.p.A. ceased making its monthly payments to IMARK and then, on March 2, 2010, informed IMARK that Geoplast S.p.A. had canceled the Contract. Id. ¶¶ 27-28.
IMARK avers that prior to receiving Geoplast S.p.A.’s cancellation notice, it had expended significant time and incurred substantial costs to meet its contractual obligations. Id. ¶ 18. Specifically, IMARK claims it expended resources in identifying potential buyers for Geoplast S.p.A., as well as hiring and training a representative to market Geoplast S.p.A.’s products in the United States. Id. ¶¶ 19-20. IMARK further alleges that after incurring these expenses, Geoplast S.p.A. then attempted to hire “key personnel” away from IMARK in order to circumvent Geoplast S.p.A.’s contractual obligations. Id. ¶¶ 21-22. IMARK also claims that Geoplast S.p.A. violated IMARK’s right under the Contract to be Geoplast S.p.A.’s exclusive supplier in the United States by directly contacting those business “IMARK had cultivated business relationships with” in order to sell its products without IMARK as an intermediary. See id. ¶¶ 23-24.
On March 4, 2010, two days after Geoplast S.p.A. informed IMARK that it had canceled the Contract, IMARK filed the Complaint in this case. IMARK asserts four claims against Geoplast S.p.A.: (1) breach of contract (Count I); (2) unjust enrichment (Count II); (3) quantum meruit (Count III); and (4) tortious interference with an economic relationship (Count IV). Compl. ¶¶ 31-51. On May 4, 2010, Geoplast S.p.A. responded by filing its [10] Motion to Dismiss Pursuant to Federal Rules of Civil Procedure 12(b)(2) and 12(b)(6) (“Def.’s Mot.”). In its motion, Geoplast S.p.A. argues that all of IMARK’s claims should be dismissed because this Court lacks personal jurisdiction over Geoplast S.p.A. and, in the alternative, IMARK’s tortious interference claim (Count IV) should be dismissed for failure to state a claim. In support of its motion, Geoplast S.p.A. attached a declaration from Mr. Pegoraro, Geoplast S.p.A.’s managing director. See Def.’s Mot., Ex. B. IMARK subsequently filed its [11] Opposition to Geoplast’s Motion to Dismiss (“Pl.’s Opp’n”), which includes declarations from Mr. Raugi, IMARK’s president, Pl.’s Opp’n, Ex. 2, and Ms. Marcenaro, IMARK’s vice-president, id., Ex. 1, as well as numerous exhibits. Finally, Geoplast S.p.A. filed its [12] reply (“Def.’s Reply”). The parties’ briefing on the pending motion is now complete, and the matter is therefore ripe for review and resolution by this Court.
II. LEGAL STANDARD
A. Motion to Dismiss Pursuant to Federal Rule of Civil Procedure 12(b)(2)
A plaintiff bears the burden of establishing a factual basis for asserting personal jurisdiction over a defendant.
See Crane v. N.Y. Zoological Soc’y,
B. Motion to Dismiss Pursuant to Federal Rule of Civil Procedure mxe)
Under the Federal Rules of Civil Procedure, a complaint must contain "a short and plain statement of the claim showing that the pleader is entitled to relief," Fed. R.Civ.P. (8)(a), "in order to `give the defendant fair notice of what the ... claim is and the grounds upon which it rests.’"
Bell Atl. Corp. v. Twombly,
When considering a motion to dismiss for failure to state a claim, the Court must construe the complaint in a light most favorable to the plaintiff and must accept as true all reasonable factual inferences drawn from well-pleaded factual allegations.
In re United Mine Workers of Am. Empl. Benefit Plans Litig.,
III. DISCUSSION
Geoplast S.p.A. has filed motions to dismiss pursuant to both Rule 12(b)(2) for lack of personal jurisdiction and Rule 12(b)(6) for failure to state a claim. Generally, courts must evaluate a motion to dismiss for lack of personal jurisdiction prior to considering a motion to dismiss for failure to state a claim.
See, e.g., Feinstein v. Resolution Trust Corp.,
Not only does logic compel initial consideration of the issue of jurisdiction over the defendant—a court without such jurisdiction lacks power to dismiss a complaint for failure to state a claim—but the functional difference that flows from the ground selected for dismissal likewise compels considering jurisdictional and venue questions first. A dismissal for lack of jurisdiction or improper venue does not preclude a subsequent action in an appropriate forum, whereas a dismissal for failure to state a claim upon which relief can be granted can be granted with prejudice.
Arrowsmith v. United Press Int’l,
A. Personal Jurisdiction
IMARK has the burden of establishing personal jurisdiction over Geoplast S.p.A.
Crane,
1. Geoplast S.pA. and Geoplast U.S. are Alter Egos
“Ordinarily, a defendant corporation’s contacts with a forum may not be
(1) Is there a unity of interest and ownership between Geoplast S.p.A. and Geoplast U.S. such that their separate corporate personalities no longer exist?; and
(2) If the acts are treated as only Geoplast U.S.’s, will an inequitable result occur?
Labadie Coal Co. v. Black,
a. Unity of Interest and Ownership
To justify piercing the corporate veil between a parent and a subsidiary, the parent’s control of the subsidiary must be "active and substantial, but it need not be exclusive in a hypertechnical or day-to-day sense."
Material Supply Int’l, Inc. v. Sunmatch Indus. Co.,
In this case, IMARK argues that Geoplast S.p.A. and Geoplast U.S. are alter egos because: (1) Geoplast U.S. is a wholly-owned subsidiary of Geoplast S.p.A.; (2) Geoplast S.p.A. represents to potential clients that Geoplast U.S. is its U.S. branch; (3) Geoplast S.p.A. and Geoplast U.S. use identical logos and trademarks; (4) for a time, Geoplast U.S. and Geoplast S.p.A. shared website content; (5) Geoplast S.p.A.’s managing director, Mr. Pegoraro, is Geoplast U.S.’s president and sole director; and (6) Geoplast U.S. does not maintain a separate bank account and Geoplast S.p.A. pays Geoplast U.S.’s expenses. Pl.’s Opp’n at 6-8. In its reply, Geoplast S.p.A. generally denies IMARK’s aforementioned allegations, but does not respond to them individually or offer evidence to contradict them.
See
Def.’s Reply at 7. Moreover, Geoplast S.p.A. does not contest IMARK’s argument that Geoplast S.p.A. and Geoplast U.S. are alter egos.
See
Def.’s Reply at 2-3.
7
For the reasons set forth below, the Court concludes that Geoplast S.p.A. demonstrated “active and substantial” control over Geoplast U.S., such that the two entities had a unity of interest and control.
Material Supply Int’l,
First, although the fact that Geoplast U.S. is a wholly-owned subsidiary of Geoplast S.p.A. “is not by itself sufficient” to pierce the corporate veil, “it is certainly not irrelevant.”
Valley Fin.,
Second, IMARK lists a variety of facts to essentially argue that Geoplast S.p.A. represents to the public that Geoplast U.S. is its U.S. branch. IMARK avers that Geoplast S.p.A. accomplishes this by,
inter alia,
the two entities having “a unified, consistent marketing image to potential customers,” using identical logos, and sharing identical, albeit translated, website content. Pl.’s Opp’n at 8-9. Under quite similar facts, this Court previously declined to find two entities alter egos based in part on their “joint use of trademarks[ ] and a common marketing image” and shared internet home page, reasoning that “joint promotion
without more
does not mandate the finding that a subsidiary is a mere shell for its parent corporation.”
Diamond Chem.,
Third, Mr. Pegoraro, Geoplast S.p.A.’s managing director, is Geoplast U.S.’s president and sole director. Pl.’s Opp’n at 8; Raugi Decl. ¶¶ 16-20; Pegoraro Decl. ¶ 2;
see also
Raugi Decl., Ex. B (Statement of Geoplast U.S.’s Sole Incorporator). The Supreme Court has recognized that "it is entirely appropriate for directors of a parent corporation to serve as directors of its subsidiary, and that fact
alone
may not serve to expose the parent corporation to
Finally, Geoplast U.S. does not maintain a bank account and Geoplast S.p.A. pays Geoplast U.S.’s expenses, including the legal costs of Geoplast U.S.’s incorporation.
See
Pl.’s Opp’n at 8; Raugi Deck ¶¶ 12-14, 25.
8
Failure to distinguish between Geoplast S.p.A.’s and Geoplast U.S.’s finances amounts to a commingling of funds that evidences a unity of interest and control between the two entities.
See, e.g., Hazard II,
After considering the cumulative weight of the aforementioned facts, the Court concludes the Geoplast S.p.A. exercised “active and substantial” control over Geoplast U.S., so as to negate Geoplast U.S.’s separate personalty.
Material Supply Int’l,
b. Inequitable Result
The second prong of the
Labadie Coal
test determines "whether there would be some element of injustice or fundamental unfairness if the Court were to find that [Geoplast S.p.A.] and [Geoplast U.S.] are not alter egos."
Hazard II,
In conclusion, for the aforementioned reasons, the Court concludes that IMARK has presented sufficient facts for the Court to conclude that Geoplast U.S. and Geoplast S.p.A. are alter egos. Consequently, in the jurisdictional inquiry that follows, the Court shall consider both Geoplast U.S.’s and Geoplast S.p.A.’s contacts with the District.
2. The Court Has Personal Jurisdiction over Geoplast S.p.A. under the District of Columbia’s Long-Arm, Statute
This case arises under the Court’s diversity jurisdiction.
See
Compl. ¶ 3 (asserting jurisdiction under 28 U.S.C. § 1332). Accordingly, whether the Court has personal jurisdiction over Geoplast S.p.A. is a function of District of Columbia law.
Crane v. Carr,
(a) A District of Columbia court may exercise personal jurisdiction over a person, who acts directly or by an agent, as to a claim for relief arising from the person’s—
(1) transacting any business in the District of Columbia;
(3) causing tortious injury in the District of Columbia by an act or omission in the District of Columbia;
(4) causing tortious injury in the District of Columbia by an act or omission outside the District of Columbia if he regularly does or solicits business, engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed, or services rendered, in the District of Columbia;
(b) When jurisdiction over a person is based solely upon this section, only a claim for relief arising from acts enumerated in this section may be asserted against him.
D.C.Code § 13-423.
In this case, IMARK argues that the long-arm statute confers personal jurisdiction over Geoplast S.p.A. for its tortious interference claim (Count IV) under either section 13-423(a)(3) or (a)(4). Pl.’s Opp’n at 11-13. In regard to IMARK’s remaining claims (Counts I—III), IMARK does not cite a specific subsection of the long-arm statute that allegedly confers personal jurisdiction. Instead, IMARK argues that Geoplast S.p.A. “holds itself out as transacting business in the District of Columbia through its wholly-owned subsidiary,” Pl.’s Opp’n at 6, such that “Geoplast S.p.A. has engaged in conduct covered by the District of Columbia’s long arm statute,” id. at 9. The Court construes this argument as asserting personal jurisdiction under D.C.Code § 13—423(a)(1) for “transacting any business in the District of Columbia.” 10 Geoplast S.p.A. denies the existence of personal jurisdiction for any of IMARK’s claim. Def.’s Mot. at 5-11. For the reasons set forth below, the Court concludes that it has personal jurisdiction over Geoplast S.p.A. under subsection (a)(1) of the long-arm for Counts I—III and under subsection (a)(4) for Count IV.
a. The Court Has Specific Personal Jurisdiction over Geoplast S.p.A. for Counts I—III Pursuant to D.C.Code § 13-423(a)(1)
i. Transacting business—D.C.Code § 13-423(a)(1).
An "expansive interpretation" has been given to D.C.Code § 13-423(a)(1), such that its reach is "coextensive with the due process clause" of the United States Constitution. Hel
mer v. Doletskaya,
“[P]arties who reach out beyond one state and create continuing rela
In this case, Geoplast S.p.A. purposefully established minimum contacts with the District such that it is reasonable for it to anticipate being subject to suit in a District of Columbia court. First and foremost, Geoplast S.p.A. registered its wholly-owned subsidiary, and alter ego, Geoplast U.S. with the DCRA so Geoplast U.S. could conduct business within the District. Raugi Decl. ¶ 24;
see also id.,
Ex. E (DCRA Application). Geoplast U.S.’s registration with the DCRA is significant because it amounts to a deliberate, voluntary, and significant connection with the District. As the Supreme Court has explained, when a defendant “manifestly has availed himself of the privilege of conducting business [in the forum], and [] his activities are shielded by ‘the benefits and protections’ of the forum’s laws[,] it is presumptively not unreasonable to require him to submit to the burdens of litigation in that forum as well.”
Burger King Corp.,
IMARK also relies upon the following facts to establish that Geoplast S.p.A. transacted business in the District: (1) Geoplast S.p.A.’s monthly wire transfers to IMARK’s bank account in the District; (2) Geoplast S.p.A.’s 127 emails to IMARK in the District during three month-span between March 2009 and July 2009; and (3) Geoplast S.p.A.’s numerous phone calls to IMARK’s District of Columbia office.
See
Raugi Decl. ¶¶ 7-8, 34.
12
As Geoplast
Nevertheless, Geoplast S.p.A. argues that its aforementioned phone calls and emails do not constitute transacting business in the District because these transmissions occurred between March 2009 and July 2009, and the Contract was allegedly breached between February and March 2010.
See
Def.’s Reply at 4 (citing
Roz Trading, Ltd. v. Zeromax Group, Inc.,
Finally, the Court must also consider whether exercising personal jurisdiction over Geoplast S.p.A. for Counts I-III would offend "traditional notions of fair
ii. Nexus requirement—D.C.Code § 13-423(b).
The Court now turns to Geoplast S.p.A.’s argument that Geoplast U.S.’s contact with the District do not satisfy D.C.Code § 13-423(b)’s nexus requirement because IMARK’s claims do not pertain to “any alleged acts or omissions by Geoplast U.S.” See Def.’s Reply at 1-3. The Court disagrees, because to accept Geoplast S.p.A.’s position would require this Court to impose a stricter nexus requirement than what District of Columbia law mandates.
The long-arm statute confers jurisdiction only over those claims "arising from acts enumerated" in the statute. D.C.Code § 13-423(b). In other words, D.C.Code § 13-423(b) requires a "nexus between the plaintiff’s claim and the defendant’s business activities in the forum jurisdiction."
Moreno,
In
Shoppers Food Warehouse v. Moreno,
the District of Columbia Court of Appeals elaborated on the meaning of D.C.Code § 13-423(b)’s “arising from” language.
See
In this case, Geoplast U.S.’s registration with the DCRA and existence in the District has a "discernable relationship" to Counts I-III—all relate to the Contract.
13
In fact, both the Contract’s terms and "contemplated future consequences" concern Geoplast U.S.’s creation and existence in the District.
Burger King Corp.,
For the foregoing reasons, the Court finds that Geoplast S.p.A. purposefully availed itself of the privilege of conducting business in the District through registering its alter ego with the DCRA and transmitting emails, phone calls, and payments to IMARK’s principal place of business in the District. These minimum contacts are sufficient to confer personal jurisdiction over Geoplast S.p.A. for Counts I—III pursuant to D.C.Code §§ 13-423(a)(l) and (b).
b. Tortious Interference Claim (Count IV)
In regard to its remaining claim for tortious interference (Count IV), IMARK alleges that personal jurisdiction exists under either D.C.Code § 13-423(a)(3) or, alternatively, (a)(4).
See
Pl.’s Opp’n at 12. Subsection (a)(3) confers personal jurisdiction if Geoplast S.p.A. “eaus[ed] tortious injury in the District of Columbia by an act or omission in the District of Columbia.” In comparison, subsection (a)(4) grants personal jurisdiction if Geoplast S.p.A. “eaus[ed] tortious injury in the District of Columbia by an act or omission outside the District of Columbia” and Geoplast S.p.A. also “regularly does or solicits business, engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed, or services rendered, in the District of Columbia.” For purposes of D.C.Code § 13-
In this case, IMARK alleges that Geoplast S.p.A. tortiously interfered with its business by both attempting to hire IMARK’s employees and directly soliciting sales from IMARK’s business opportunities. See Compl. ¶¶ 20-24, 49. As IMARK’s principal place of business is located in the District, id. ¶ 2, the Court concludes that IMARK has alleged sufficient facts to reasonably infer that the injury it suffered as a result of Geoplast S.p.A.’s allegedly tortious interference occurred in the District. However, where Geoplast S.p.A.’s acts constituting tortious interference occurred is more difficult to resolve, as IMARK has not alleged where Geoplast S.pA. committed such acts. See Def.’s Mot. at 10. Instead, IMARK argues that its factual allegations: (1) provide a “reasonable inference” that Geoplast S.pA. tortious interference “may have occurred within the District;” or, alternatively, (2) they indicate that act occurred outside of the District. See Pl.’s Opp’n at 12 (emphasis added). For the reasons set forth below, the Court concludes that IMARK has alleged sufficient facts to confer personal jurisdiction under subsection (a)(4), but not under subsection (a)(3).
i. IMARK has not alleged sufficient facts to confer jurisdiction under (a)(3).
IMARK correctly notes that it may rely on any reasonable inferences from its allegations to defend Geoplast S.p.A.’s motion to dismiss for lack of personal jurisdiction.
See, e.g., GTE Neto Media Servs., Inc.,
Consequently, the only possible tortfeasor, based on IMARK’s allegations, is Geoplast S.pA, headquartered in Padova, Italy. Compl. ¶2. Both parties agree that Geoplast S.pA’s contact with IMARK in the District was accomplished exclusively through phone calls and emails. See Pegoraro Aff. ¶ 8; Raugi Decl. ¶ 8. Therefore, based on the current state of the record, the only reasonable inference from IMARK’s allegations is that Geoplast S.pA acted from Italy, and not from within the District, in such a way as to give rise to a claim for tortious interference.
Such out-of-forum actions, however, do not satisfy D.C.Code § 13-423(a)(3). For purposes of personal jurisdiction, where Geoplast S.p.A.’s acts occurred are uninfluenced by whether "other third party acts
Neither party has argued that the Court should deviate from the aforementioned principles in this case because IMARK has asserted a claim for tortious interference. Accordingly, in light of the foregoing, the Court concludes that subsection (a)(3) does not confer jurisdiction over IMARK’s tortious interference claim because IMARK has not alleged sufficient facts to reasonably infer that either Geoplast S.p.A. or Geoplast U.S. committed a specific act within the District that would constitute tortious interference.
ii. IMARK has alleged sufficient facts to confer jurisdiction under (a)(4).
Nevertheless, for the aforementioned reasons, the Court also concludes that IMARK has alleged sufficient facts to reasonably infer that Geoplast S.p.A. committed the act of tortious interference outside of the District. The Court now turns to whether Geoplast S.p.A. “regularly does or solicits business, engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed, or services rendered, in the District of Columbia.” D.C.Code § 13-423(a)(4).
IMARK relies exclusively on Geoplast U.S.’s contacts with the District to argue that Geoplast S.p.A. regularly does and solicits business in the District through Geoplast U.S. and engages in a persistent course of conduct in the District when it registered Geoplast U.S. with the DCRA. See Pl.’s Opp’n at 12. 14 Geoplast S.p.A. counters that IMARK cannot rely upon Geoplast U.S. to establish that it regularly does and solicits business in the District or engages in a persistent course of conduct because Geoplast U.S. is no longer an active entity, and was not active during the time relevant to the Complaint—February and March 2010. Def.’s Reply at 6-7. In support of this proposition, Geoplast S.p.A. once again cites to this Court’s opinion in Roz Trading. See Def.’s Reply at 7. For the reasons set forth below, the Court rejects Geoplast S.p.A.’s argument and finds that Geoplast U.S.’s contacts with the District satisfy subsection (a)(4).
First, Geoplast S.p.A.’s reliance on
Roz Trading
is unpersuasive because Geoplast S.p.A. cites to the case’s discussion of
general
personal jurisdiction under D.C.Code § 13-334(a).
See
Def.’s Reply at 7 (citing
Roz Trading,
Second, there is no apparent justification in doing so, as general personal jurisdiction’s "doing business" requirement and specific personal jurisdiction’s "persistent course of conduct" requirement are "discrete constructs."
See Crane,
Finally, this Court, sitting in diversity, must apply the District’s law regarding its long-arm statute as presently situated and may not impose novel requirements.
See Tidler v. Eli Lilly & Co.,
After considering the totality of Geoplast S.p.A.’s contacts with the District, the Court concludes that Geoplast S.p.A. engaged in a persistent course of conduct with the District that was neither scant nor fortuitous. Geoplast U.S. voluntarily registered with the DCRA so it could conduct business within the District, thereby purposefully availing itself of the benefits and privileges of District of Columbia law. See Raugi Decl. ¶ 24; id., Ex. E (DCRA Application). Therefore, Geoplast S.p.A. is amenable to suit under D.C.Code § 13-423(a)(4).
This is not the end of the inquiry, however, as the Court must also consider whether exercising personal jurisdiction over Geoplast S.p.A. would offend "traditional notions of fair play and substantial justice" as required by the Constitution’s guarantee of due process.
Int’l Shoe Co.,
As the Court has previously stated, Geoplast S.p.A.’s act of registering Geoplast U.S., its wholly-owned subsidiary and alter ego, with the DCRA so Geoplast U.S. could conduct business in the District renders it reasonable for Geoplast S.p.A. to anticipate being subject to suit in a District of Columbia court.
See supra
pp. 156-57. This conclusion is further supported by the fact that Geoplast S.p.A. directed its allegedly tortious conduct towards IMARK, a resident of the District.
See Calder v. Jones,
Instead, Geoplast S.p.A. argues that exercising personal jurisdiction over it would violate "due process considerations" for two reasons.
See
Def.’s Reply at 7. First, Geoplast S.p.A. argues that IMARK may not rely upon Geoplast U.S.’s acts because Geoplast U.S. is not mentioned in the Complaint.
Id.
IMARK, however, is not limited to the Complaint’s allegations in a motion to dismiss for lack of personal jurisdiction, as it may also rely upon "`affidavits and other written materials as [it] can otherwise obtain.’"
FINCON Servs.,
B. Motion to Dismiss For Failure to State a Claim
The Court now turns to Geoplast S.p.A.’s motion to dismiss IMARK’s tortious interference claim (Count IV) for failure to state a claim.
18
Under District of Columbia law, there are two types of tortious interference claims: tortious interference with a contract and tortious interference with a prospective advantageous business transaction (hereinafter, "tortious interference with a prospective transaction").
See Teltschik v. Williams & Jensen, PLLC,
In this case, Geoplast S.p.A. argues that IMARK’s tortious interference claim (Count IV) is insufficient because it fails to provide adequate notice of the basis for IMARK’s claim and fails to state a claim for which relief may be granted. See Def.’s Mot. at 11. In response, IMARK advances two theories for how it has stated a claim for tortious interference: Geoplast S.p.A. tortiously interfered with (1) “IMARK’s contractual relationship with its employees;” and (2) “IMARK’s business relationship with companies IMARK developed business relationships with.” Pl.’s Opp’n at 14. For the reasons set forth below, the Court concludes that IMARK has failed to state a claim for tortious interference based on either theory.
1. IMARK Has Failed to State a Claim that Geoplast S.p.A Tortiously Interfered with Its Contracts with “Key Personnel”
IMARK argues that it has alleged a claim against Geoplast S.p.A. for tortious interference with IMARK’s contractual relationships with its “key personnel.”
See
The Complaint does not allege that a contract existed between IMARK and the "key personnel" that Geoplast S.p.A. allegedly interfered with and attempted to hire.
See generally
Compl. As Geoplast S.p.A. correctly notes, Def.’s Reply at 8, under District of Columbia law there is a presumption that, absent a "clear expression of an intent to enter into a contract for a fixed period," the employer and employee "have in mind merely the ordinary business contract for a continuing employment, terminable at the will of either party,"
Bible Way Church v. Beards,
2. IMARK Has Failed to State a Claim that Geoplast S.p.A. Tortiously Interfered with Its Business Relationships
IMARK’s second theory, tortious interference with IMARK’s business relationships, fares no better. Notably, unlike its claim for tortious interference with a contract, IMARK does not indicate which of the Complaint’s allegations support this theory.
See
Pl.’s Opp’n at 13-14. Moreover, even when the Court construes the Complaint in IMARK’s favor and grants IMARK all reasonable inferences therefrom, the Court finds that only the following allegations could arguably pertain to a
(1) “Geoplast began directly soliciting sales from entities in the United States despite IMARK’s exclusive right under the Contract to be the sole supplier of Geoplast goods.” Compl. ¶ 23.
(2) “Included among those entities contacted by Geoplast were several businesses that IMARK had cultivated business relationships with related to the sale and purchase of Geoplast’s goods.” Id. ¶ 24.
(3) “Geoplast intentionally and willfully interfered with IMARK’s business relationships related to the Contract, including but not limited to ... contracting directly with business contacts and opportunities identified by IMARK.” Id. ¶ 49.
These allegations, however, fail to state a tortious interference claim. IMARK has essentially converted its breach of contract claim into a tortious interference claim, arguing that Geoplast S.p.A.’s act of soliciting sales directly from businesses, rather than permitting IMARK to do so on Geoplast S.p.A.’s behalf, breached IMARK’s right under the Contract. However, even assuming,
arguendo,
that Geoplast S.p.A. breached the Contract by directly contacting businesses, Geoplast S.p.A. is not a third party to the Contract, and therefore cannot be held liable under a tortious interference with a contract theory.
See Sorrells,
Furthermore, the nature of IMARK’s relationships with these “several businesses,” and consequently which type of tortious interference claim IMARK is asserting, is unknown from the Complaint. See Def.’s Reply at 9. To the extent IMARK alleges that Geoplast S.p.A. tortiously interfered with IMARK’s contracts with these businesses, IMARK has failed to state such a claim because it failed to plead any facts that could lead this Court to reasonably infer that IMARK had contracts with these businesses. See supra pp. 163-64. Specifically, although IMARK alleges that it “cultivated business relationships” with these “several businesses,” Compl. ¶ 24, the Court cannot reasonably infer from such vague allegations that IMARK’s relationships with these unnamed businesses were contractual.
Alternatively, to the extent IMARK alleges that Geoplast S.pA. tortiously interfered with its prospective transactions with these unnamed businesses, this claim also fails to state a claim.
See Teltsehik,
In conclusion, for the aforementioned reasons, the Court concludes that IMARK has failed to state a claim for tortious interference predicated upon Geoplast S.p.A.’s attempts to either hire IMARK’s presumptively at-will employees or contact businesses IMARK had also contacted. Accordingly, the Court shall grant Geoplast S.p.A.’s motion to dismiss IMARK’s tortious interference claim (Count IV) for failure to state a claim upon which relief may be granted.
For the foregoing reasons, the Court shall DENY Geoplast S.p.A.’s [10] Motion to Dismiss IMARK’s claims for lack of personal jurisdiction. The Court shall GRANT, however, Geoplast S.p.A.’s [10] Motion to Dismiss IMARK’s tortious interference claim (Count IV) for failure to state a claim. An appropriate Order accompanies this Memorandum Opinion.
Notes
. Although Geoplast entitles Exhibit B an affidavit, the exhibit complies with 28 U.S.C. § 1746(1) and is not notarized. Therefore, it is properly considered a declaration.
. IMARK claims that a certified English translation of the Contract is attached as Exhibit B to the Complaint. Compl. ¶ 7. IMARK, however, has not in fact provided a certificate attesting to who translated the original Contract and that the translation is accurate. Nevertheless, as Geoplast S.p.A. has not contested the contents of the English translation, the Court shall assume for purposes of the pending motion that Exhibit B does contain an accurate English translation of the Contract.
. Although Geoplast U.S. appears to have ceased operations, as Geoplast U.S. has not dissolved, the Court shall refer to Geoplast U.S. in the present tense.
. In January 2010, approximately nine months after Geoplast U.S. was incorporated, Geoplast U.S.'s director Mr. Pegoraro asked Ms. Marcenaro to open a bank account for Geoplast U.S. Raugi Decl. ¶ 35. For reasons unknown, the account was never opened. See id.
.There is no indication in the record that “Geoplast International’’ is an entity distinct from Geoplast S.p.A. “Geoplast International” is not a term used in the parties' briefing; rather, it is found in the promotional material submitted by IMARK as exhibits to its opposition. See, e.g., Marcenaro Decl., Ex. C (Tank Elevator and Modulo System Brochures), at 8, 22.
. To determine whether Geoplast S.p.A. and Geoplast U.S. are alter egos, IMARK argues that this Court should utilize a series of factors identified in
Chrysler Corp. v. Gen. Motors Corp.,
. Instead, Geoplast S.p.A. argues that Geoplast U.S.’s contacts with the District are irrelevant under the District’s long-arm statute because IMARK's claims do not arise out of any of Geoplast U.S.’s acts or omissions. See Def.'s Reply at 2-3. The Court shall address this argument below in the context of whether this Court has personal jurisdiction over Geoplast S.p.A.
. Although Geoplast U.S. was incorporated on March 4, 2009, Raugi Deck ¶ 15, Mr. Pegoraro did not request a separate bank account to be created for Geoplast U.S. until January 2010, id. ¶ 35. A separate bank account was never opened. Id. ¶ 35.
. IMARK does not reference either general personal jurisdiction or D.C.Code § 13-334 in its Complaint or opposition. See generally Compl.; Pl.’s Opp’n.
. The Court reiterates that IMARK has only alleged personal jurisdiction under the long-arm statute, D.C.Code § 13-423.
See, e.g.,
Compl. ¶ 3; Pl.’s Opp’n at 9 ("Geoplast S.p.A. has engaged in conduct covered by the District of Columbia’s long arm statute"). Therefore, the Court does not construe IMARK’s argument as asserting general personal jurisdiction under D.C.Code § 13— 334(a) because Geoplast S.p.A. "is 'doing business’ in the District.”
Gorman,
. Geoplast S.p.A. does not contest that Geoplast U.S.’s contacts with the forum amount to "transacting business” in the District. See Def.'s Reply at 1-3. Rather, Geoplast S.p.A. argues that because Geoplast U.S.’s acts or omissions did not give rise to Counts I—III, Geoplast U.S.'s acts and omissions are irrelevant as to whether this Court has personal jurisdiction over Geoplast S.p.A. See id. at 1-2. The Court shall address the argument in Part III.A.2.a.ii regarding D.C.Code § 13-423(b)'s nexus requirement. See infra pp. 157-58.
. The parties disagree as to who initiated contract negotiations. Mr. Pegoraro declares that the parties were introduced “through a family connection.” Pegoraro Decl. ¶ 3. Mr. Raugi, in contrast, asserts that "Geoplast[] S.p.A. approached IMARK in early 2009 regarding Geoplast[ ] S.p.A.'s desire to enter the United States market.” Raugi Decl. ¶ 4. Although an out-of-state defendant may transact business in the District under D.C.Code § 13-423(a)(1) by soliciting a District resident to perform work within the District,
Mouzavires v. Baxter,
. Count I alleges that Geoplast S.p.A. breached the Contract. Compl. ¶¶ 31-34. Count II asserts that Geoplast S.p.A. unjustly received the benefit of IMARK’s performance of its 24 contractual obligations without compensation. Id. ¶¶ 35-40. Count III avers that IMARK invested time and money in meeting its contractual obligations, and therefore is entitled to compensation based on a quantum meruit theory.
. IMARK does not allege that Geoplast S.p.A. "derives substantial revenue from goods used or consumed, or services rendered, in the District of Columbia.” D.C.Code § 13-423(a)(4); see Pl.’s Opp’n at 12.
. In addition, Geoplast U.S. is distinguishable from the subsidiary in
Roz Trading.
While the subsidiaiy in
Roz Trading
filed its certification of dissolution with its state of incorporation prior to the filing of the complaint, the record in this case does not indicate that Geoplast U.S. has similarly filed for dissolution or has otherwise been dissolved.
See
. General jurisdiction, in comparison, is "a high bar” that requires that a defendant maintain "continuous and systematic” contacts with the forum.
D’Onofrio,
. Accordingly, the Court shall deny as moot IMARK’s motion for jurisdictional discovery. Pl.'s Opp’n at 13.
. The Court may not consider matters outside the pleadings in a motion to dismiss for failure to state a claim without converting it to a motion for summary judgment. See Fed. R.Civ.P. 12(d). The Court declines to do so here and therefore shall not consider the various exhibits and declarations attached to the parties' filings when evaluating Geoplast S.p.A.’s motion to dismiss for failure to state a claim.
. IMARK does not argue that Geoplast S.p.A.’s alleged attempts to hire IMARK’s “key personnel’’ constitute a claim for tortious interference with a prospective transaction. See Pl.’s Opp’n at 14. Accordingly, the Court shall only analyze whether IMARK’s allegations constitute a claim for tortious interference with a contract.
. As the Court dismisses IMARK’s tortious interference with a contract claim for failure to allege the existence of a contract, the Court does not reach Geoplast S.p.A.’s other arguments regarding this claim’s infirmities. See Def.’s Mot. at 13-14.
