Justin LaNasa; TSR, LLC; and Dungeon Hobby Shop Museum, LLC, Plaintiffs, against Erik Stiene and Rachel Stiene, Defendants.
No. 22-cv-5686 (KAM) (VMS)
United States District Court Eastern District of New York
Kiyo A. Matsumoto, United States District Judge
Memorandum and Order
Kiyo A. Matsumoto, United States District Judge:
Justin LaNasa, on behalf of himself and two of his companies (all plaintiffs referred to herein collectively as “LaNasa“), brought this diversity action against Erik and Rachel Stiene for defamation, intentional infliction of emotional distress, and “prima facie tortious conduct.” (ECF No. 62, 2d Am. Verified Compl. (“2d Am. Compl.“), ¶¶ 1-4.) The Stienes move the Court to dismiss the action under Federal Rules of Civil Procedure 12(b)(1), 12(b)(5), and 12(b)(6), arguing that (1) the Court lacks subject-matter jurisdiction to adjudicate the action, (2) LaNasa failed to serve process on Rachel Stiene, and (3) LaNasa failed to state a claim upon which relief can be granted. (ECF No. 64, Notice Mot. Dismiss.)
For the reasons below, the Court concludes (1) it has subject-matter jurisdiction over LaNasa‘s claims based on
Background
The Court assumes that the following allegations from the Second Amended Complaint are true for the purpose of resolving the present motion to dismiss. See United States v. Swartz Family Tr., 67 F.4th 505, 514 (2d Cir. 2023).
Erik and Rachel Stiene, a married couple domiciled in New York, operate a website called Tenkar‘s Tavern and maintain its YouTube channel. (2d Am. Compl. ¶¶ 5-7, 16, 20; ECF Nos. 69, 71.) LaNasa, who is domiciled in North Carolina, is the principal officer and sole member of TSR, LLC (a “creator, manufacturer, and distributor of tabletop role playing games” and “other products and services“), and Dungeon Hobby Shop Museum, LLC. (2d Am. Compl. ¶¶ 1-4, 8; ECF No. 74.) LaNasa alleges that the Stienes used the Tenkar‘s Tavern website and YouTube channel to publish various defamatory statements about him and his companies in 2022.
Although LaNasa‘s Second Amended Complaint references various hyperlinked videos, it identifies specific allegedly defamatory statements in them. For example, in January 2022,
In May 2022, Erik said in other videos that LaNasa‘s company TSR, LLC, was “scraping the bottom of the privy” (apparently referring to LaNasa‘s customer base), that LaNasa “fucked over [his] prior business partners” to get a trademark, and that LaNasa “included a Nazi” in his company. (Id. ¶ 22.)
In July 2022, LaNasa‘s attorney sent the Stienes a cease-and-desist letter. (Id. ¶ 33.) The Stienes responded to the letter on August 30, 2022, by posting a YouTube video mocking it, titled “Was My C&D Letter From LaNasa TSR an Attempt to ID & Intimidate Witnesses in the WotC Legal Action?” (Id. ¶ 34.)
In September 2022, “[i]n further attempts to harass, intimidate, and threaten” LaNasa, Erik said in a YouTube video that he used to be an “investigator in internal affairs.” (Id. ¶ 35.) In November 2022, the Stienes “[made] clear” in another video that LaNasa “has used . . . anonymous emails” and accused LaNasa of sending “anonymous emails on the weekend, because that is the ‘time to get into a bottle of Jack.‘” (Id. ¶ 22.) Finally, in December 2022, Rachel referred to LaNasa “as an on-
LaNasa attempts to assert claims against the Stienes for defamation, intentional infliction of emotional distress, and “prima facie tortious conduct.” (Id. ¶¶ 37-94.) He alleges injuries in the form of “severe humiliation, loss of standing in the community, loss of self-esteem, public disgrace, loss of standing and respect within his own family, and severe and extreme emotional distress.” (Id. ¶¶ 50, 62.) He further alleges that he and his family “have been forced to seek therapy and other professional health care assistance.” (Id. ¶ 54.) Finally, LaNasa alleges that he “has had creators, publishers, artists, and customers turn away from [him], . . . stating that they [were] scared and angry, vowing not to work with [LaNasa] due to the false, fabricated statements made by [Erik Stiene] and his followers.” (Id. ¶ 75.) LaNasa seeks $1,000,000 in damages, an injunction forbidding the Stienes from making any further statements about him and requiring them to retract their prior statements about him, punitive damages, interest, attorney fees, and costs. (Id. ¶ 94, pp. 32-33.)
LaNasa commenced this action in September 2022 against only Erik. (ECF No. 1, Verified Compl.) After a pre-motion conference where the Court raised several concerns with LaNasa‘s original complaint, (Minute Order, Jan. 6, 2023), LaNasa filed
Legal Standards
The Stienes move to dismiss this action under
I. Motion to Dismiss for Lack of Subject-Matter Jurisdiction
A motion under
II. Motion to Dismiss for Insufficient Service of Process
A motion under
III. Motion to Dismiss for Failure to State a Claim
A motion under
Discussion
I. Subject-Matter Jurisdiction
The Court addresses subject-matter jurisdiction first
The Court concludes that it has diversity jurisdiction over LaNasa‘s claims. The federal diversity statute gives federal district courts original subject-matter jurisdiction over civil actions between citizens of different states where the amount in controversy exceeds $75,000 excluding interest and costs.
The Court concludes, and the Stienes do not dispute, that the parties are completely diverse. The plaintiffs are citizens of North Carolina because LaNasa is domiciled there, (see ECF No. 74), and the two LLC plaintiffs’ sole member is LaNasa, (see 2d Am. Compl. ¶¶ 2-3). The defendants are citizens of New York
The Court disagrees with the Stienes that LaNasa‘s Second Amended Complaint fails the federal diversity statute‘s $75,000 amount-in-controversy requirement. A plaintiff has only a minimal burden to satisfy that requirement. Courts presume that a plaintiff‘s good faith allegations about the amount in controversy control unless it appears to a legal certainty that the plaintiff cannot recover that amount. St. Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283, 288-89 (1938); accord Pyskaty v. Wide World of Cars, LLC, 856 F.3d 216, 223 (2d Cir. 2017). Here, though the Court does not, and need not, credit LaNasa‘s bald assertion that he has been “damaged in a sum exceeding the jurisdictional limits,” (see 2d Am. Compl. ¶ 56), the Court credits LaNasa‘s underlying factual allegations that because of the Stienes’ actions, the LaNasa family had to seek therapy, Geek Nation “canceled a tour” with him, and “creators, publishers, artists, and customers” spurned him, (2d Am. Compl. ¶¶ 24, 54, 75).2 Given those allegations of lost business
The Court properly considers the declaration LaNasa attached to his opposition to the Stienes’
Because the parties are completely diverse and the amount in controversy exceeds $75,000, the Court has subject-matter jurisdiction over the claims in this action under the federal diversity statute and may proceed to the merits. Accordingly, the Court need not address LaNasa‘s invocation of supplemental or “pendent” jurisdiction.
II. Service on Rachel
The Stienes next argue that the Court must dismiss LaNasa‘s claims against Rachel because LaNasa never served process on her. (Mot. 8-9.) LaNasa first named Rachel as a defendant in the Second Amended Complaint, which he filed on January 16, 2024. (See 2d Am. Compl.) A plaintiff has ninety days after filing the complaint to serve the defendant with a summons and a
The Court declines to excuse LaNasa‘s failure to timely serve Rachel for the following reasons. LaNasa‘s attorney apparently mistakenly believed that the service deadline was April 25, 2024, which would have been one hundred - not ninety - days after the date LaNasa filed his Second Amended Complaint. (See ECF No. 65, Pls.’ Mem. Law Opp‘n Defs.’ Rule 12(b) Mot. Dismiss (“Opp‘n“), 8.) Though a court must excuse a plaintiff‘s failure to timely serve a defendant for good cause,
The Court also will not grant LaNasa a discretionary extension of the service deadline. See Buon, 65 F.4th at 75 (2d Cir. 2023) (noting that a district court may grant such an extension even where the plaintiff lacks good cause). In determining whether to grant such an extension, courts consider whether (1) the applicable statute of limitations would bar the plaintiff‘s re-filed claim, (2) the defendant had actual notice of the claim, (3) the defendant attempted to conceal the defect in service, and (4) the defendant would suffer prejudice as the result of an extension. Fantozzi, 343 F.R.D. at 26. These
Considering the factors listed above and all other relevant equitable circumstances in this case, a discretionary extension to perfect service on Rachel is unwarranted. The Court acknowledges that a dismissal without prejudice in combination with New York‘s one-year statute of limitations for defamation claims might functionally result in a dismissal with prejudice of LaNasa‘s claims against Rachel, but even if it would, that alone would not entitle LaNasa to leniency. See Zapata v. City of New York, 502 F.3d 192, 197 (2d Cir. 2007). The Stienes explicitly argued in their motion to dismiss that LaNasa had not served Rachel, and LaNasa responded to and acknowledged that portion of their motion in his opposition, albeit while miscalculating his deadline to serve her. (See Mot. 8-9; Opp‘n 8.) Thus, although the Stienes clearly had actual notice that LaNasa sought to press claims against Rachel, they by no means “attempt[ed] to conceal the defect in service,” which cuts against granting a discretionary extension. See Fantozzi, 343 F.R.D. at 30. Additionally, Rachel would suffer at least some prejudice if forced to spend time, money, and resources on another round of dismissal litigation. See id. at 31.
Additionally, a factor unique to this case that favors
Contrary to that order, LaNasa added allegations regarding Rachel and named her as a new defendant. His letter did not ask for leave to amend to name Rachel, only to remove allegations regarding LaNasa‘s criminal record and allegations regarding Lois. (See ECF No. 55, Nov. 6, 2023, Ltr. from B. Kleinman.)
There is a “strong policy need for courts to enforce sanctions against parties who, having had proper notice and opportunity to comply with the rules and with the court‘s orders, nonetheless fail to do so.” Seabrook v. City of New York, 236 F.R.D. 123, 128 (E.D.N.Y. 2006) (dismissing action with prejudice for failure to prosecute after plaintiff‘s failure to timely serve defendant). Allowing an attorney‘s error to justify leniency “undermine[s] the effectiveness of those sanctions.” Id. Thus, under the circumstances of this case, LaNasa would not have been entitled to a discretionary extension of the service deadline even if he had requested one, and his claims against Rachel are dismissed for failure to
III. Sufficiency of the Allegations
The Court next concludes that LaNasa fails to state a claim for defamation, intentional infliction of emotional distress, or prima facie tortious conduct against either defendant under New York law.
Before the Court addresses the deficiencies in LaNasa‘s allegations, however, it must address the Stienes’ request for a dismissal with an award of costs and attorney fees on the ground that this case is a strategic lawsuit against public participation or “SLAPP.” (Mot. 9-13.) New York‘s anti-SLAPP law permits a “defendant in an action involving public petition and participation” to “maintain an action, claim, cross claim or counterclaim to recover damages, including costs and attorney‘s fees, from any person who commenced . . . such action.”
The Court declines to apply New York‘s anti-SLAPP law to dismiss this action or to award costs or attorney fees. First, the Stienes have not “maintain[ed] an action, claim, [crossclaim,] or counterclaim” against LaNasa, which is necessary to obtain a costs or fee award under the statute. See
Further, because the anti-SLAPP statute makes costs and fees available only when the court dismisses an action based on the statute‘s dismissal provision and does not purport to make
A. Defamation
LaNasa‘s first two claims are for “defamation and libel per se” and “slander per se.” (2d Am. Compl. ¶¶ 37-67.) Defamation is an injury to reputation that occurs either by written expression (libel) or by oral expression (slander). Harding v. Dorilton Cap. Advisors LLC, 635 F. Supp. 3d 286, 306 (S.D.N.Y. 2022). Because libel and slander otherwise share the same elements, id., the Court analyzes LaNasa‘s first two claims together. To state a claim for defamation under New York law, the plaintiff must allege that (1) the defendant made a defamatory statement concerning the plaintiff, (2) the statement was published to a third party, (3) the defendant‘s conduct met the applicable fault standard, (4) the statement was false, and (5) the statement caused the plaintiff damages or was per se actionable. Palin v. New York Times Co., 940 F.3d 804, 809 (2d Cir. 2019). When the plaintiff is a “public figure,” the applicable fault standard is “actual malice,” meaning that the
LaNasa fails to state a claim with respect to most of his alleged instances of defamation because he failed to allege that the statements at issue were defamatory. Under New York law, whether a statement is defamatory is a legal question the Court resolves and may address at the pleadings stage. Chau v. Lewis, 771 F.3d 118, 128 (2d Cir. 2014). The Court need not review each linked YouTube video to discern whether the statements were defamatory in context. As the Court warned LaNasa in pointing out the defects in his original complaint, (see ECF No. 54, Jan. 6, 2023, Pre-Mot. Conf. Tr., 4:1-8), a plaintiff cannot avoid Rule 8‘s requirement to provide a short, plain statement of his claims simply by overwhelming the court with lengthy exhibits without context and assigning the court the task of reviewing them and searching for a plausible claim, see United States v. Int‘l Longshoremen‘s Ass‘n, 518 F. Supp. 2d 422, 461 (E.D.N.Y. 2007). If LaNasa intended to rely on any statements made in those videos as the basis for his defamation claims, he was obligated to identify and describe the relevant portions of those videos in his written allegations. Thus, the Court
considers the allegedly defamatory statements in the context LaNasa provides with his written allegations. First, many of the statements described in LaNasa‘s Second Amended Complaint are non-actionable opinions. When distinguishing factual statements from opinions, courts consider whether (1) the statement has a precise meaning that is readily understood, (2) the statement is capable of being proven true or false, and (3) context signals to the reader that what is being said is likely to be opinion rather than fact. Landa v. Capital One Bank (USA), N.A., 101 N.Y.S.3d 90, 92 (2d Dep‘t 2019). Here, Erik‘s alleged statements that LaNasa was “inadvertently honest,” that LaNasa was a “warrior for the old ways,” that LaNasa‘s company was “scraping the bottom of the privy,” that LaNasa “fucked over” his business partners, that LaNasa “included a Nazi in [his] company,” and that LaNasa‘s wife was the “new face” of his company, (2d Am. Compl. ¶¶ 22, 26), are all too subjective to be proven true or false. Absent more context, which LaNasa has not alleged, any reasonable reader would interpret the statements as opinions, not as facts. See North Shore Towers Apartments Incorp. v. Kozminsky, 193 N.Y.S.3d 310, 313 (2d Dep‘t 2023). Assuming, as alleged, that the title of Erik‘s August 30, 2022, YouTube video, “Was My C&D Letter From LaNasa TSR an Attempt to ID & Intimidate Witnesses in the WotC Legal Action?” (2d Am. Compl. ¶ 34), implied that LaNasa‘sB. Intentional Infliction of Emotional Distress
LaNasa‘s third claim is that the Stienes intentionally inflicted him with emotional distress. (2d Am. Compl. ¶¶ 68-82.) Intentional infliction of emotional distress occurs when the defendant engages in “extreme and outrageous” conduct with the intent to cause the plaintiff severe emotional distress and does in fact cause the plaintiff severe emotional distress. Chanko v. ABC Inc., 49 N.E.3d 1171, 1178 (N.Y. 2016). This claim is “highly disfavored” and only to be used “as a last resort.” Turley v. ISG Lackawanna, Inc., 774 F.3d 140, 158 (2d Cir. 2014) (first quoting Nevin v. Citibank, N.A., 107 F. Supp. 2d 333, 345-46 (S.D.N.Y. 2000) and then quotingC. Prima Facie Tortious Conduct
LaNasa‘s last claim is for “prima facie tortious conduct.” (Id. ¶¶ 83-94.) To state a prima facie tort claim, the plaintiff must allege that (1) the defendant intentionally inflicted harm on the plaintiff (2) that resulted in special damages (3) without excuse or justification (4) by an act or series of acts that otherwise would have been lawful and (5) the defendant‘s sole motive was to harm the plaintiff. Posner v. Lewis, 965 N.E.2d 949, 951 n.1 (N.Y. 2012). “Special damages” means the “loss of something having economic or pecuniary value.” Berland v. Chi, 38 N.Y.S.3d 57, 59 (2d Dep‘t 2016) (quoting Rufeh v. Schwartz, 858 N.Y.S.2d 194, 196 (2d Dep‘t 2008)). As with intentional infliction of emotional distressIV. Leave to Amend
Having concluded that LaNasa failed to state any claim against either defendant, the Court further concludes that LaNasa should not be granted leave to amend his complaint again. On one hand, a court should “freely give leave when justice soConclusion
For the reasons above, the Court grants the Stienes’ motion to dismiss for failure to state a claim with respect to Erik Stiene and dismisses LaNasa‘s claims against him with prejudice. The Court grants the Stienes’ motion to dismiss for insufficient service with respect to Rachel Stiene and dismisses LaNasa‘s claims against her without prejudice. LaNasa is denied leave to amend his complaint again. The Stienes’ request for oral argument is denied as moot. The Clerk of Court is respectfully requested to enter judgment in favor of Defendants and close this case. So ordered.Dated: April 17, 2024
Brooklyn, New York
Kiyo A. Matsumoto
United States District Judge
Eastern District of New York
