OPINION & ORDER
Plaintiff Shirley Y. Kwan brings this action pro se for, among other claims, breach of contract, unfair competition and copyright infringement in connection with the publication of “Find it Online,” a book designed to assist internet users in conducting web searches. Kwan, who contends that she co-authored the book with defendant Alan Schlein, is suing both Schlein and Business Resource Bureau, Inc. (“BRB”), the book’s publishing company, as well as various individuals associated with the book project. Kwan asserts that Schlein and BRB CEO Michael San-key promised her co-author credit and appropriate compensation for her work in helping to author the book, and that to date she has received neither. In addition to various claims stemming from that allegedly broken promise, Kwan alleges that Schlein and BRB infringed her copyright in “Find it Online” and wrongfully filed their own copyright for the book.
The defendants — Schlein separately— have moved to dismiss the complaint pursuant to Fed.R.Civ.P. 4 and 12(b)(6), 1 contending that (i) they were improperly served; (ii) Kwan cannot satisfy the elements of each of her claims; and (iii) most of Kwan’s claims, having as their genesis a date in 1998, are barred by the applicable statutes of limitation. As discussed below, Kwan’s complaint is dismissed without prejudice for improper service as to each of the defendants except Schlein. As to Schlein, Kwan has stated a claim for racial discrimination and unfair competition. However, her breach of contract claim is barred by the New York Statute of Frauds; her copyright claim is barred by the Copyright Act’s statute of limitations; and her remaining claims also fail, some on the merits and some because they fall outside of the relevant statutes of limitation.
1. BACKGROUND
The facts as alleged in the complaint are as follows:
In August 1998, Kwan signed a contract with defendant Business Resources Bureau, Inc.
2
(“BRB”) to serve as an editor
To reflect this unexpectedly enhanced role, Kwan claims, Schlein and BRB President Michael Sankey promised her “cover credit commensurate with [her] contributions,” as well as increased compensation. Id. ¶¶ 4, 5. Schlein allegedly informed her that his own contract with BRB was being amended to accommodate the heightened responsibilities and credit accorded to Kwan. Id. ¶ 5. No written contract was signed between Kwan and either Schlein or BRB, however, and Kwan continued to work on the book through the fall of 1998 while repeatedly requesting that their agreement be reduced to writing. Id. ¶ 6.
In December, Sankey sent Kwan a copy of the allegedly revised contract between Schlein and BRB, which did not contain any new provisions encompassing the oral agreement she claims she had with the parties. Id. ¶ 10. Still, Kwan asserts, Sankey confirmed on more than one occasion thereafter — by phone and by e-mail— that she would receive the co-author credit she had been promised. Id. ¶¶ 10, 12. But that promise was short-lived; on December 23, Sankey informed Kwan that he wanted Schlein to be sole author. Id. ¶ 13. Accordingly, the book was published in February 1999 with Schlein listed as the only author; Kwan was recognized as one of three editors. Id. ¶ 15. Additionally, one month before its publication, BRB and Schlein filed copyright registrations for “Find it Online” and listed themselves as joint authors. Id. ¶ 14.
In the intervening years, three further editions of “Find it Online” have been published, including the most recent, August 2004 edition. Id. ¶¶ 16, 18, 21. It is unclear which of these editions were actually copyrighted by any of the defendants. Kwan’s name, listed as an editor for the second edition, was omitted entirely from the third and fourth editions. Id. ¶¶ 18, 21. She also stopped receiving royalty payments after the second edition. Id. According to Kwan, for the last several years Schlein has wrongfully touted his sole authorship of “Find it Online” at lectures and in workshops, and has received several accolades for his work on the book. Id. ¶ 23.
Frustrated at this sequence of events, Kwan did two things: she brought suit in January of 2005, and filed her own copyright registration for “Find it Online” shortly thereafter, claiming to be a joint author with Schlein. Id. ¶ 22. By an Order dated January 14, 2005, Chief Judge Mukasey dismissed Kwan’s complaint pursuant to Fed.R.Civ.P. 8 for failure to plead the facts underlying her claims and granted Kwan leave to. file an amended complaint. Kwan then filed a new complaint in March 2005, and the case was assigned to this Court. Kwan lists as defendants not only Schlein and BRB, but also individual defendants Sankey, Peter Weber and J.J. Newby (other editors of “Find it Online”) and Carl R. Ernst (a minority shareholder in BRB). Each of the defendants except Newby have moved to dismiss the complaint.
Kwan’s complaint alleges a host of wrongs. In addition to claims of copyright infringement, breach of contract and unfair competition, Kwan purports to state a claim for “fraudulent notice of copyright,”
II. DISCUSSION
A. Defendants’ Motion to Dismiss for Improper Service
Each of the defendants has moved pursuant to Fed.R.Civ.P. 12(b)(5) to dismiss Kwan’s complaint on the grounds that service was improper. Once challenged, the burden of establishing that service was proper lies with the plaintiff.
See Darden v. DaimlerChrysler N. Am. Holding Corp.,
1. Service upon BRB
For domestic corporate defendants, service must be made upon “an officer, a managing or general agent, or to any other agent authorized by appointment or by law to receive service of process” or pursuant to the laws of the state in which the district court was located or in which service was effected. Fed.R.Civ.P. 4(h)(1). Both New York law (where the Court is located) and Arizona law (where service was effected) largely mirror federal law in requiring corporate service to be made upon an officer, director, agent, or similarly high-ranking corporate official. See N.Y. C.P.L.R. 311(a); Ariz. R. Civ. P. 4.1(k).
The U.S. Marshals effected service upon BRB
3
by serving Annette Jackson, who in the “Process Receipt and Return” is listed as BRB’s “Office Manager.” Kwan offers no evidence that Jackson is an officer or other similarly high-ranking official at BRB. Nor is it clear whether Jackson is “invested with powers of discretion and must exercise judgment in his duties, rather than being under direct superior control as to the extent of his duty and the manner in which he executes it,”
Grammenos v. Lemos,
2. Semce Upon the Individual Defendants Except Schlein
Service upon individuals must be made either personally or “pursuant to the law of the state in which the district court is located, or in which service is effected.” Fed.R.Civ.P. 4(e). In New York, service upon individuals can be made personally or by delivering the summons “to a person of suitable age and discretion at the actual place of business, dwelling place, or usual place of abode of the person to be served” and by mailing the summons to the person at his home or office within 20 days of the delivery. N.Y. CPLR § 308(2). If the mailing is to the person’s office, it must be made within 20 days of the delivery. Id. In Arizona, service upon individuals can be personally, upon an authorized agent, or by leaving the summons and complaint at the defendant’s “dwelling house or usual place of abode with some person of suitable age and discretion then residing therein.” Ariz. R. Civ. Pro. 4.1(d).
Here, none of those potential valid means of service was employed. Service upon defendants Michael Sankey, Carl Ernst, and Peter Weber was made by serving Jackson. Because none of them were served personally, by an agent, or at home, service was not effective pursuant to federal or Arizona law. Because New York law authorizes office service, service upon Jackson may have been effective with regard to Sankey and Weber, BRB employees. See Affidavit of Michael Sankey July 25, 2005 at 1; Affidavit of Peter Weber dated July 21, 2005, at 1. However, the marshals’ “Process Receipt and Return” as to both defendants indicates that an attempt to serve each of them by mail was made on May 25, 2005, which is not within 20 days of the delivery to Jackson on July 6, 2005 as required by N.Y. C.P.L.R. § 308(2). Finally, service upon Ernst was improper because, despite being a minority shareholder in BRB, he is not an employee and there is no indication that he was served at his “actual place of business.” Affidavit of Carl R. Ernst dated July 22, 2005, at 1. Kwan’s claims against Ernst, Sankey and Weber are therefore dismissed without prejudice pursuant to Fed.R.Civ.P. 12(b)(5). 5
3. Service Upon Schlein
Schlein, unlike the other defendants, was served personally, but moves to dismiss the complaint on the grounds that service was not made within 120 days after the filing of the complaint as required by Fed.R.Civ.P. 4(m). Schlein was served in September of 2005, just over two months beyond the 120-day mark. Rule 4(m) permits the Court to extend the time for service where good cause for delay exists, and therefore to deny a motion to dismiss where service occurred late.
See Johnson v. Fleet,
This is so even given Schlein’s contention that the copy of the complaint he received was missing pages. Schlein was able to secure the missing pages and shortly thereafter requested and received a 60-day extension to file his motion in light of the mishap. Because Schlein has actually been served and has had sufficient notice and time to respond to the complaint, he has suffered no material prejudice warranting a dismissal of the present action.
Cf. Young v. Car Rental Claims, Inc.,
B. Schlein’s Motion to Dismiss for Failure to State a Claim
Schlein, the only remaining defendant, has moved to dismiss each of Kwan’s claims pursuant to Fed.R.Civ.P. 12(b)(6). The Court can grant a 12(b)(6) motion only if “it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.”
Drake v. Delta Air Lines, Inc.,
1. Kwan’s Federal Claims
a. Copyright Infringement
Kwan’s assertion that Schlein infringed her copyright in “Find it Online” fails as a matter of law because Kwan admits that she and Schlein co-authored the book and that the copyright she later registered listed her and Schlein as its “joint authors.” Compl. ¶ 22. Because Schlein is also an author of the book, he cannot have infringed Kwan’s copyright.
See Weissmann v. Freeman,
So construed, Kwan’s claim is time-barred because of the Copyright Act’s three-year statute of limitations.
See
17 U.S.C. § 507(b). On the one hand, acts of copyright infringement that occurred within three years of a complaint are not time-barred even though the infringing activity commenced outside of the limitations period.
See Stone v. Williams,
b. Sexual Harassment
An entirely distinct set of facts forms the basis of Kwan’s sexual harassment claim. Specifically, Kwan contends that, while she and Schlein were working on the “Find it Online” manuscript, Schlein “became increasingly unstable and abusive ... and frequently refused to discuss chapter revisions until after recounting his sexual forays” and that he “insisted that [she] email him at ‘desexy@hotmail.com.’ ” Compl. ¶ 7.
Kwan’s sexual harassment claim is time-barred. Title VII requires claimants in “deferral” states — i.e., states where a designated state or local agency has jurisdiction to consider discriminatory employment claims — such as New York to file a charge with the EEOC within 300 days of the alleged wrongful action.
See
42 U.S.C. 2000e(5);
Valentine v. Standard & Poor’s,
c. Race and Gender Discrimination
Although plaintiffs complaint does not specify whether she brings her discrimina
Apart from Title VII, however, Kwan may possess a claim pursuant to 42 U.S.C. § 1981, which prohibits racial discrimination in the making and enforcement of contracts and does not require an employer-employee relationship.
See
42 U.S.C. § 1981;
Wortham v. Am. Family Ins. Group,
Here, Kwan has pled that she is Asian and that Schlein and BRB officials denied her ongoing participation in the book because she was Asian while treating all other similarly situated non-minority participants differently. Additionally, the discrimination concerned an “aetivit[y] enumerated in the statute” because her claim is effectively that she was denied the ability to “make [a] contract.”
See
42 U.S.C. § 1981(b). Since Kwan need plead no more than “a short and plain statement of the claim showing that [she] is entitled to relief’ to survive a motion to dismiss, the Court must deny Schlein’s motion insofar as it relates to Kwan’s claim for racial discrimination.
See Swierkiewicz v. Sorema,
Finally, Kwan’s discrimination claim is not time-barred, as Schlein contends. Section 1981 actions are governed by the state statutes of limitation applicable to personal injury claims, which is three years in New York,
see
N.Y. C.P.L.R. 214(5);
Frank v. New York State Elec. & Gas,
2. Kwan’s State Law Claims
As an initial matter, New York law applies to each of Kwan’s non-federal claims, whether based in contract or in tort. In determining which state’s law applies, this Court is guided by the conflict-of-law principles of the state in which the Court is located, namely New York.
See Klaxon Co. v. Stentor Elec. Mfg. Co.,
a. Breach of Contract 6
Kwan contends that in consideration for her enhanced role in penning “Find it Online,” Schlein and BRB promised to give her both co-author credit and increased compensation, and that to this date she has received neither. In response, Schlein contends that (i) Kwan’s complaint fails to allege a contract between Kwan and Schlein or the nature of any breach of such a contract; (ii) New York’s statute of frauds required any such contract to be in writing; and (iii) in any event, New York’s statute of limitations for contract renders any valid contract claim untimely because Kwan was aware that she would not receive credit or compensation by December 1999, when she received a copy of Schlein’s contract with BRB that did not stipulate to her previously agreed-upon enhanced role.
Kwan’s complaint sufficiently asserts both the existence of a contract and a breach of that contract. Specifically, Kwan claims that in exchange for the assistance she provided Schlein in authoring “Find it Online,” Schlein and BRB agreed to credit her as a co-author of the project and pay her accordingly. If true, this agreement, which includes a bargained-for promise supported by consideration, is sufficient to establish a contract. See Restatement (Second) of Contracts § 17.
Additionally, Kwan’s contract claim is not barred by the statute of limitations because she appears to be alleging a “continuing breach,” i.e. a breach that while beginning in 1999 continues to accrue- through the present day. Where a contract calls for continuous performance, it is “capable of a series of ‘partial’ breaches, as well as a single total breach by repudiation or by such a material failure of performance when due as to go ‘to the essence’ and frustrate substantially the purpose for which the contract was agreed to by the injured party.” 4 Corbin on Contracts, Ch. 53 § 956 (1951);
see also Won’s Cards, Inc. v. Samsondale/Haverstraw Equities, Ltd.,
However, for the same reason that Kwan’s contract claim may not be time-barred, it is barred by the Statute of
Kwan asserts that “the N.Y. Statute of Frauds states that ... the contracts can be oral,” but this simply misreads New York law. Moreover, the cases Kwan
cites
— Crabtree
v. Elizabeth Arden Sales Corp.,
b. Unfair Competition
Kwan asserts that Schlein committed unfair competition by claiming to be the sole author of “Find it Online” and by putting himself forth as such at various public fora from 1998 to the present time. See Compl. ¶¶ 15, 23. In response, Schlein contends without elaboration that “[plaintiff’s complaint fails to spell out the required elements on an unfair competition claim” and that Kwan’s claim is barred by the statute of limitations. Memorandum of Defendant Alan M. Schlein in Support of Motion to Dismiss dated November 28, 2005, at 13.
Claims for unfair competition under New York law typically fall into one of two categories: passing off, or malicious or fraudulent interference with good will.
See Colour & Design v. U.S. Vinyl Mfg. Corp.,
No. 05-Civ.-8332,
Though Kwan does not specify that her claim sounds particularly in the reverse passing off branch of unfair competition law, the facts alleged do fit within its contours. Specifically, Kwan asserts that Schlein continues to sell and advertise what she claims is her product — “Find it Online” — under his own name, which could result in consumer confusion regarding the source of the book. In the context of federal reverse passing off claims under the Lanham Act, courts have found analogous co-author disputes actionable as unfair competition.
See Rosenfeld v. W.B. Saunders,
Additionally, Kwan’s claim is not time-barred because unfair competition occurring over a period of time can give rise to liability as a continuing tort.
See Greenlight Capital, Inc. v. GreenLight (Switz.) S.A.,
No. 04-Civ.-3136,
c. Fraud
Plaintiffs claim for fraud is barred by New York’s six-year statute of limitations.
See
N.Y. C.P.L.R. § 213(8);
Santiago v. 1370 Broadway,
Kwan apparently also claims fraud in connection with the publication of later editions of “Find it Online,” a claim that if otherwise valid would not be time-barred.
See
Compl. ¶¶ 16, 17, 20. Kwan’s theory in this regard seems to be that Schlein’s earlier promise of co-authorship reared its fraudulent head once again when that promise was dishonored as to future editions. But this fraud-by-hindsight theory is untenable because it does not change the fact that all of the fraudulent statements were made in 1998. That those statements proved relevant to future conduct does not mean that Kwan’s claim accrued at the time of such future conduct, because it is the statements themselves that constitute the fraud. Stated in terms of the elements of the tort, Kwan does not allege the requisite material misrepresentation in connection with Schlein’s later assertions of authorship,
see Kaye v. Grossman,
d. Tortious Interference with Precon-tractual Relations
As best as the Court can understand, Kwan claims that both Schlein’s attempts to copyright “Find it Online” and his ongoing attempts to publicize his sole authorship of the book constitute tortious interference with precontractual relations.
Compl.
¶¶ 14, 15. “New York recognizes a cause of action for interference with precontractual relations ‘where a party
would
have received a contract but for the malicious, fraudulent and deceitful acts of a third party.’”
Gertler v. Goodgold,
Plaintiffs claim fails for several reasons, most obviously because there is no “third party” involved in this case; Schlein may have breached his contract with Kwan or done violence to that contract in some other way, but he cannot have tortiously interfered with his own contract (or, by extension, his own precontractual negotiations).
See John F. Dillon & Co., LLC v. Foremost Mar. Corp.,
No. 02-Civ.-7803,
e. Defamation
Kwan also asserts that Schlein defamed her, seemingly on the theory that the failure to give her proper credit for coauthoring “Find it Online” was libelous.
See
Compl. ¶¶ 15, 18. Schlein responds by contending that Kwan has not pled all the elements of defamation and that, in any event, her claim is barred by the one-year statute of limitations. N.Y. CPLR 215(3);
Firth v. State,
However, Kwan’s claim is dismissed because she has not sufficiently pled defamation. In New York, the elements of a defamation claim are (i) a false statement; that (ii) is published without privilege or authorization to a third party, (iii) is made at least negligently and (iv) either causes special harm or constitutes defamation per se.
Dillon v. City of New York,
f. Nonexistent Causes of Action
Kwan’s remaining causes of action do not exist as a matter of law. Kwan alleges that BRB and Schlein committed “fraudulent notices of copyright” and “false representation on associated applications,” both of which apparently pertain to those defendants’ efforts to register and/or notice copyrights for “Find it Online.”
III. CONCLUSION For the reasons set forth above, plaintiffs complaint is dismissed without prejudice as to all defendants except Schlein. Additionally, Schlein’s motion to dismiss Kwan’s complaint is denied insofar as it relates to Kwan’s claims for racial discrimination and unfair competition, and granted in all other respects.
SO ORDERED.
Notes
. Schlein filed a motion to dismiss Kwan's complaint pursuant to Rule 12(b)(6) and Rule 4. BRB, together with each of the individual defendants except J.J. Newby, filed a hybrid motion to dismiss and motion for judgment on the pleadings. The Court does not reach the latter aspect of BRB's motion because it dismisses the case as to those defendants for improper service.
. All references in this Opinion to BRB are intended to encompass not only Business Resources Bureau, Inc., but also "BRB Publications” and "Facts on Demand Press,” who Kwan also sues and who appear to be BRB affiliates. Though BRB asserts that it is incorrectly sued under each of these entities, the Court will not resolve that question because service as to the BRB entities was improper, see infra.
. As noted above, the analysis with respect to BRB encompasses BRB affiliates and defendants BRB Publications and Facts on Demand Press, who were also served via Annette Jackson. Additionally, Kwan’s suit is dismissed without prejudice as to "Schlein News Bureau” and J.J. Newby, neither of who were ever served.
. Kwan does not even contend that an officer, agent, or other similarly high-ranking official was served. Instead, she asserts that "[b]oth statutes and case law are voluminous and extensive in their definition of service and include service to receptions of a corporation, as well as office managers.” Plaintiff’s Opposition to Motion to Dismiss Complaint dated
. Should plaintiff decide to re-serve her complaint, she should more carefully consider whether any of her claims are properly brought against these individual defendants. Kwan does not even mention Ernst in the text of her complaint; notes only that Weber was one of several editors of "Find it Online;” and does not suggest in any way how Sankey should be liable in his individual, rather than his corporate, capacity.
. Though Kwan has sued Schlein for "debt,” there is no such common law cause of action. The Court will construe Kwan's debt claim as encompassed within her breach of contract claim, since any money owed between the parties arose from the alleged contract.
. Although Kwan has listed a separate claim for "misrepresentation,” her fraud and misrepresentation claims are indistinguishable in terms of the factual allegations underlying them. In any event, misrepresentation claims are subject to the six-year statute of limitations for fraud,
see Santiago,
