MEMORANDUM OPINION
After Wisey’s # 1 LLC ■ (“Wisey’s”) brought federal statutory and state common law claims against Nimellis Pizzeria LLC, Minellis Pizzeria Enterprises LLC, and Davar Ashgrizzadeh (collectively “Nimellis”), the defendants filed counterclaims alleging four state common law torts against Wisey’s for the actions of its employees. Wisey’s has now moved to dismiss the counterclaims under Federal Rules of Civil Procedure 12(b)(1) for lack of subject matter jurisdiction and 12(b)(6) for failure state a claim upon which relief can be granted. For the reasons stated below, the Court will grant Wisey’s motion to dismiss under Rule 12(b)(1) without reaching the Rule 12(b)(6) motion.
FACTS
Davar Ashgrizzadeh owns and operates Minellis Pizzeria Enterprises LLC, a defunct entity no longer operating, and Nimellis Pizzeria LLC. Am. Countercls. [Docket Entry 24] ¶ 7 (Jan. 9, 2013). Nimellis owns and operates a restaurant known as Café Romeo’s located at 2132 Wisconsin Avenue NW in the District of Columbia. Id.
Nimellis’ counterclaims stem from an alleged business feud that began around June 2011 when Café Romeo’s started to offer smoothies. See id. ¶¶ 9, 11. “On or around.June or August 2011,” Nimellis alleges an agent, owner,- or employee of Wisey’s approached Ashgrizzadeh and demanded that Café Romeo’s stop selling smoothies. Id. ¶¶ 9, 11. Wisey’s is an active competitor in the Georgetown and broader District of Columbia smoothie market and is located at 1440 Wisconsin Avenue NW in the District of Columbia. M-¶¶ 4, 13. The agent, owner, or employee told Ashgrizzadeh that if Café Romeo’s sold milkshakes instead of smoothies, then Wisey’s and Café Romeo’s could be “friends,” but if Café Romeo’s continued to sell smoothies, then Wisey’s would destroy Café Romeo’s business. See id. ¶ 11.
When Café Romeo’s refused to stop selling smoothies, Nimellis alleges that Wisey’s through its owner Nabeel Audeh and its employee Helal Awadallah began a defamatory campaign to embarrass Ashgrizzadeh and “destroy Café Romeo’s underlying business.”
See id.
¶ 14. Many of the subsequent actions involved Ashgrizzadeh’s status as a sex offender.
See, e.g., id.
¶ 15. In 1996, Ashgrizzadeh pleaded
Nimellis alleges that in the summer of 2011, through its owners, agents, or employees — including Awadallah — Wisey’s told its own customers that Ashgrizzadeh was a “psychopath” and a “child molester” while disseminating his sex offender registry information to them. See id. ¶ 15. Nimellis also alleges that in or around February 2012, Wisey’s through its owners, agents, or employees sent text messages to Café Romeo’s employees that contained Ashgrizzadeh’s sex offender registry information. Id. ¶ 17.
In June 2012, Café Romeo’s began trading as WISEATS/Wise Eats Café “as a reaction to the damages caused by the plaintiffs [Wisey’s] behavior.” Id. ¶ 18. 1 Café Romeo’s trade changes led to Wisey’s initial complaint in this action, which included claims of federal trademark infringement, federal unfair competition, and federal unlawful cybersquatting based on Nimellis’ alleged infringement of Wisey’s mark and menu, as well as the registration of www.wiseats.com. See Compl. [Docket Entry 1] ¶¶67, 79, 84 (Sept. 27, 2012). Nimellis alleges that after Café Romeo’s began trading as WISEATS/Wise Eats Café, Wisey’s harassment “began to escalate and become more aggressive.” ' See Am. Countercls. ¶ 18.
“On or about” the end of May or June 1, 2012, Ashgrizzadeh allegedly found printouts of his sex offender registry information on cars and slid underneath apartment doors in his apartment complex in Virginia. See id. ¶ 19. Ashgrizzadeh saw Awadallah nearby with fliers, ■ at which time Awadallah allegedly told him “[t]his is nothing. You’ll see what’s coming.” See id. “In or around” June 3, 2012, Awadallah allegedly asked two of Ashgrizzadeh’s employees whether they knew that Ashgrizzadeh had “raped a nine-year-old boy.” Id. ¶23. Then, “[o]n or about” August 22, 2012 at around 2:00 p.m. or 2:30 p.m., Audeh allegedly arrived at Café Romeo’s and accused Ashgrizzadeh of copying Wisey’s menu while threatening to put Café Romeo’s out of business. See id. ¶ 20. Audeh also allegedly said that Ashgrizzadeh had molested a nine-year-old boy and was a pedophile in front of several unnamed patrons and two named employees of Café Romeo’s. See id. ¶ 20 & n. 2. Two regular lunch customers present for the alleged incident have not returned since. See id. ¶ 22.
Around the end of August 2012, Awadallah allegedly approached Ashgrizzadeh at a Restaurant Depot in Virginia, where both restaurants purchased supplies. See id. ¶ 24. While Ashgrizzadeh was checking out, Awadallah asked the cashier whether she knew that Ashgrizzadeh 2 had “raped a nine-year-old boy” and “was a pedophile with mental issues.” See id.
Finally, on September 7, 2012 around 10 p.m., Ashgrizzadeh was driving with two employees of Café Romeo’s in Georgetown. See id. ¶ 25. When Ashgrizzadeh stopped at the corner of Potomac Avenue and M Street, NW, Awadallah shouted from the car next to him at the employees, asking whether they knew Ashgrizzadeh was a sex offender. Id.
STANDARD OF REVIEW
Under Rule 12(b)(1), the party seeking to invoke the jurisdiction of a federal court — counter-plaintiff Nimellis here — bears the burden of establishing that the court has jurisdiction.
See U.S. Ecology, Inc. v. U.S. Dep’t of Interior,
Federal courts are courts of limited subject matter jurisdiction, possessing only the powers granted by the Constitution and federal statute.
Kokkonen v. Guardian Life Ins. Co. of America,
A two-part test guides the supplemental jurisdiction analysis.
See id.
First, the court examines whether the state and federal claims “derive from a common nucleus of operative fact.”
See United Mine Workers v. Gibbs,
If the court does find that the federal and state claims are sufficiently related, section 1367(c) “confirms the discretionary nature of supplemental jurisdiction by enumerating the circumstances in which dis
(1) the claim raises a novel or complex issue of State law, (2) the claim substantially predominates over the claim or claims over which the district court has original jurisdiction, (3) the district court has dismissed all claims over which it has original jurisdiction, or (4) in exceptional circumstances, there are other compelling reasons for declining jurisdiction.
28 U.S.C. § 1367(c). Each of the section 1367(c) bases is an independent reason through which a court may decline supplemental jurisdiction.
Edmondson & Gallagher v. Alban Towers Tenants Ass’n,
DISCUSSION
Because Nimellis’ common law counterclaims do not derive from a common nucleus of operative fact with Wisey’s Lanham Act claims, the Court does not have supplemental jurisdiction under section 1367(a). The Court also finds that, even it if had supplemental jurisdiction, it would exercise its discretion not to assert that jurisdiction under section 1367(c) because the counterclaims raise a novel issue of District of Columbia tort law and the counterclaims would substantially predominate over the Lanham Act claims.
I. Section 1367(a) Analysis,
In order for the Court to assert supplemental jurisdiction over state common law claims, it must first determine that they “derive from a common nucleus of operative fact” with the federal claims over which there is original jurisdiction.
Women Prisoners,
A. Legal Overlap
The alleged Lanham Act claims are trademark infringement, unfair competition and unlawful cybersquatting. Their elements involve the companies’ trademarks, the distinctive nature or secondary meaning of Wisey’s trademark, the likelihood of confusion caused by Nimellis’ allegedly infringing mark, and the bad faith
4
registration or use of a domain name confusingly similar to Wisey’s mark.
See
15 U.S.C. §§ 1114(1), 1125(a), (d);
Sears, Roebuck & Co. v. Sears Fin. Network,
B. Factual Overlap
Although the counterclaims and Lanham Act claims are both part of the broader dispute between the businesses, they only share a set of general background facts. The operative facts are those relating directly to the federal Lanham Act claims concerning the alleged actions taken by Nimellis. See Black’s Law Dictionary 670 (9th ed.2009) (operative fact is one “that constitutes the transaction or event on which a claim or defense is based”).
State common law claims that only “relate generally” to federal claims through a broader dispute and do not share any operative facts are insufficient for supplemental jurisdiction.
Chelsea Condo.,
468 F,Supp.2d at 138-39 (finding no supplemental jurisdiction over several state law claims alleging misrepresentations made during marketing of condominiums where federal law claims alleged failure to disclose conflict of interest during sales of same condominiums);
see also Ning Ye v. Holder,
Nimellis argues that “the parties’ relationship and history of dealings, including
Nimellis has not shown that the counterclaims provide a factual basis or overlap that will aid in the resolution of the Lanham Act claims; the facts raised by the parties’ history and relationship, and even Nimellis’ intent and motive, are simply not implicated beyond furnishing a general background for Wisey’s narrow federal trademark, unfair competition, and unlawful cybersquatting claims.
See Checkpoint Fluidic Sys. Int'l, Ltd. v. Guccione,
Civil Action No. 10-4505,
In sum, the tort counterclaims do not have a legal overlap with the Lanham Act claims and the factual overlap exists only to the extent that the federal claims and counterclaims relate generally to the parties’ broader background dispute. The counterclaims therefore do not derive from a common nucleus of operative fact with the Lanham Act claims. Accordingly, the Court will dismiss Nimellis’ counterclaims for a lack of subject matter jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(1). Moreover, as discussed below, even if the Court had supplemental jurisdiction, it concludes that it should decline to exercise it.
II. Section 1367(c) Analysis
Wisey’s also argues that even if the counterclaims satisfied section 1367(a), the Court should decline supplemental jurisdiction in its discretion pursuant to section 1367(c)(1) or section 1367(c)(2). The Court agrees in part regarding section 1367(c)(1) and in total regarding section 1367(c)(2).
A. Section 1367(c)(1)
If the Court permitted the counterclaims to advance under section 1367(a), Wisey’s argues that three legal questions inherent in the counterclaims each “raise a
The first issue appears to be novel to District of Columbia common law and the interpretation of that law in the U.S. District Court for the District of Columbia. Under Restatement (Second) of Torts § 561(a), a corporation may assert a claim of defamation when it is defamed by a personal attack against one of its agents in a manner that reflects upon the way the corporation does its business.
See
Restatement (Second) of Torts § 561(a) cmt. b (1977). However, because local District of Columbia courts have not had the opportunity to accept or decline the Restatement in this context, that issue would be one of first impression before this Court. If this Court were to adopt the Restatement standard, it would also need to decide whether accusing the owner of a restaurant of pedophilia reflects upon the way the restaurant does its business. Given that “[n]eedless decisions of state law should be avoided both as a matter of comity and to promote justice between the parties, by procuring for them a surer-footed reading of applicable law,”
Gibbs,
Wisey’s second section 1367(c)(1) argument, rather than contend that the counterclaims represent a novel or complex issue, seems instead to be an attempt to convince the Court that Wisey’s employees were not within their scope of employment when they committed the alleged tortious acts. If the Court were to accept that argument, then respondeat superior would not apply and Wisey’s would not be liable.
See Penn Central Transp. Co. v. Reddick,
Wisey’s third argument, that “the Court would also be faced with a number of choice-of-law questions given that most of the alleged statements were made in Virginia, by a Virginia resident, concerning another Virginia resident,” PL’s Reply at 6, also does not raise a novel or complex issue of District of Columbia law. First, it appears to be factually inaccurate. Of seven alleged encounters, only two are specified to have taken place in Virginia.
See
With respect to 1367(c)(1), then, the Court agrees with Wisey’s motion in part. While the defamation claims appear to be novel to District of Columbia law, the respondeat superior and choice-of-law issues that Wisey’s raises are neither novel nor complex.
B. Section 1367(c)(2)
Under section 1367(c)(2), the Court may also decline to exercise supplemental jurisdiction when a state common law claim “substantially predominates over the claim or claims over which the district court has original jurisdiction.” In general, “the question of whether state law predominates ... must be answered by looking to the nature of the claims as set forth in the pleading and by determining whether the state law claims are more complex or require more judicial resources to adjudicate.”
Diven v. Amalgamated Transit Union Int’l & Local 689,
Given the varied types of torts alleged and the judicial resources that would be required to adjudicate them, section 1367(c)(2) counsels using discretion in this case to decline supplemental jurisdiction. The four torts alleged in the counterclaims each require different elements of proof than the federal claims. Additionally, there are as many as seven altercations between the parties in two states, several witnesses 7 who would presumably only be called for the counterclaims, and the counterclaims could involve the application of both Virginia and District of Columbia law. Given the judicial resources it would take to preside over the counterclaims and their legal and factual separation from the federal claims, this Court should also decline supplemental jurisdiction under section 1367(c)(2).
CONCLUSION
The counterclaims do not share a common nucleus of operative fact with the federal claims and thus do not satisfy section 1367(a). Because the Court cannot assert supplemental jurisdiction over the
For these reasons, the Court will grant Wisey’s motion to dismiss the amended counterclaims. A separate Order will issue on this date.
Notes
. Nimellis’ amended counterclaims refers to "Café Romeo’s" when describing events that occurred after the trade name change, so the Court will continue to refer to the restaurant as "Café Romeo’s” as well.
. The amended counterclaim states Awadallah asked the cashier if she knew that Awadal- ' lah had committed the act and had mental issues, but this appears to be a typographical error.
. "[I]n any civil action of which the district courts have original jurisdiction, the district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy under Article III of the United States Constitution.”
. The bad faith determination is based upon nine factors that examine the history of the domain name and the defendant’s actions relating to the domain name. See 15 U.S.C. § 1125(d)(l)(B)(i). That analysis does not examine broader bad faith context and motivations in a dispute beyond the domain name.
. Failure to state a claim for attempted monopolization under Sherman Act elements signifies failure to state the claim under the D.C.Code.
Dial A Car, Inc. v. Transp., Inc.,
. Nimellis counters, without elaboration, that the issues Wisey's raises are "not particularly legally complex or novel.” Defs.’ Opp’n at 7.
. Nimellis names “patrons and employees” of Café Romeo's, two regular customers, "two of Mr. Ashgrizzadeh’s employees,” a Restaurant Depot cashier and two international work-study students, among others, as potential witnesses to the alleged defamatory or otherwise harassing incidents. See Am. Countercls. ¶¶ 20, 22, 23, 24, 25.
