Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Kresch v. Prince

United States District Court, E.D. Michigan, Southern Division

September 12, 2019

Ari Kresch and 1-800-Law-Firm, PLLC Plaintiffs,
v.
David Prince and the law offices of Prince and Associates, LLC Defendants.

          David R. Grand U.S. Magistrate Judge

          OPINION AND ORDER DENYING IN PART DEFENDANT'S MOTION TO DISMISS THE AMENDED COMPLAINT [8] AND DENYING AS MOOT DEFENDANT'S MOTION TO DISMISS [4] THE ORIGINAL COMPLAINT

          ARTHUR J. TARNOW, SENIOR UNITED STATES DISTRICT JUDGE

         This is a breach of contract and fraud in the inducement suit brought by a Michigan lawyer and his law firm against a Florida lawyer and his law firm. Plaintiffs seeks to recover damages from Defendants' alleged breach of a Joint Venture Agreement signed between them on April 4, 2013. Defendant David Prince has raised several defenses in his motion to dismiss. The Court will deny the jurisdictional components of the motion to dismiss and schedule a hearing on the remaining defenses raised by Mr. Prince.

         Factual and Procedural Background

          Plaintiffs' First Amended Complaint provides the following facts. Plaintiff, Ari Kresch, is a citizen of Michigan. (Compl. ¶ 1). Plaintiff, 1-800-Law Firm, of which Mr. Kresch is CEO, has its principal place of business in Michigan. (Id. at ¶ 2). Defendant, David Prince, is a citizen of Florida. (Id. at ¶ 3). The Law Office of Prince and Associates, LLC, has its principal place of business in Florida. (Id. at ¶ 4). Plaintiffs and Defendants entered into a Joint Venture Agreement on April 4, 2013. (Id. at ¶ 10). The agreement was signed in Michigan and provided for a trial period of 12-months. (Id. ¶¶ 10, 12). The agreement assigned various responsibilities to each law firm, and it called for revenue sharing between the law firms. (Id. ¶¶ 13-15). The agreement was shortlived, however, and failed to generate revenue. (Id. ¶ 15).

         During the brief course of this partnership, Plaintiffs advanced $470, 213.34 towards Defendants' operations. (Id. ¶ 16). Mr. Kresch also provided a personal loan to Mr. Prince in the amount of $25, 000. (Id. ¶ 17).

         On April 17, 2018, Plaintiffs filed suit to collect these debts. [Dkt. # 1]. Defendant Prince filed a Motion to Dismiss [5] on February 21, 2019. Plaintiff filed an Amended Complaint on March 11, 2019. Defendant Prince filed a Motion to Dismiss the Amended Complaint [8] on May 1, 2019. On July 16, 2019, the Court issued an Order for Defendants to Show Cause why the Court Should Not Strike Defendants' Motion to Dismiss [12], because Mr. Prince, though an attorney, is not admitted to practice in the Eastern District of Michigan and thus cannot represent a corporate defendant. In his August 6, 2019 Reply brief [14], Mr. Prince explained that since The Law Offices of Prince and Associates was dissolved in 2015, it cannot retain corporate counsel. (Dkt. # 14, pg. 1). The Court therefore will construe Mr. Prince's Motion to Dismiss to pertain to his own defense only.

         The Motion to Dismiss the Amended Complaint [8] is fully briefed. The Court finds the jurisdictional portions of the motion suitable for determination without a hearing in accord with Local Rule 7.1(f)(2). It will conduct a hearing on the remaining portions of the motion on Wednesday January 22, 2020 at 3:00 P.M.

         Standard of Review

          Defendant Prince moves to dismiss Plaintiffs' claims for lack of subject matter jurisdiction pursuant to Fed.R.Civ.P. 12(b)(1) and lack of personal jurisdiction pursuant to Fed.R.Civ.P. 12(b)(2).

         A Rule 12(b)(1) challenge to subject matter jurisdiction takes the form of a facial attack or a factual attack. Defendant makes a factual attack, which means that it challenges “the factual existence of subject matter jurisdiction.” Cartwright v. Garner, 751 F.3d 752, 759-60 (6th Cir. 2014). Accordingly, Plaintiffs' factual allegations do not get the benefit of the presumption of truthfulness, and the Court may “weigh the evidence and satisfy itself as to the existence of its power to hear the case.” United States v. Ritchie, 15 F.3d 592, 598 (6th Cir. 1994).

         On a Rule 12(b)(2) motion to dismiss for lack of personal jurisdiction, the Court must consider affidavits and pleadings in the light most favorable to the plaintiff. Serras v. First Tenessee Bank Nat. Ass'n, 875 F.2d 1212, 1214 (6th Cir. 1989). Plaintiff bears the burden of “making a prima facie showing that personal jurisdiction exists.” Id. The district court should not weigh “the controverting assertions of the party seeking dismissal.” Air Products and Controls, Inc. v. Safetech Intern., Inc., 503 F.3d 544, 549 (6th Cir. 2007) (quoting Theunissen v. Matthews, 935 F.2d 1454, 1459 (6th Cir, 1991). Nevertheless, a defendant who disputes the facts underlying personal jurisdiction “can invoke the court's discretion to order a pretrial evidentiary hearing on those facts.” Serras, 875 F.2d at 1214.

         Analysis

         I. Subject ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.