Attilius LLC v. Larsen-Haslem Dental, LLC

CourtDistrict Court, S.D. California
DecidedNovember 7, 2022
Docket3:22-cv-00899
StatusUnknown

This text of Attilius LLC v. Larsen-Haslem Dental, LLC (Attilius LLC v. Larsen-Haslem Dental, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Attilius LLC v. Larsen-Haslem Dental, LLC, (S.D. Cal. 2022).

Opinion

1 2 3 UNITED STATES DISTRICT COURT 4 SOUTHERN DISTRICT OF CALIFORNIA 5 6 ATTILIUS LLC, Case No.: 22-cv-0899-L-KSC

7 Plaintiff, ORDER DENYING DEFENDANT’S 8 v. MOTION TO DISMISS, STAY OR TRANSFER 9 LARSEN-HASLEM DENTAL, LLC, dba

COMPASSIONATE DENTAL 10 [ECF No. 6] SERVICES, 11 Defendant. 12 13 Pending before the Court is Larsen-Haslem Dental, LLC’s (“Defendant”) motion 14 to dismiss, stay or transfer. (ECF No. 6.) Attilius LLC (“Plaintiff”) opposed, (ECF No. 15 9), and Defendant replied, (ECF No. 10). The Court decides the matter on the papers 16 submitted and without oral argument. Civ. L.R. 7.1(d)(1). For the reasons stated below, 17 Defendant’s motion is denied in part and granted in part. 18 I. BACKGROUND 19 According to the allegations in the Complaint (ECF No. 1), this action arises out of 20 a breach of a contract for consulting services (“Consulting Agreement”), executed by 21 both parties on October 1, 2018. (ECF No. 1, at 3.) Pursuant to the Consulting 22 Agreement, Defendant, a dental business owned by Dr. Daren Larsen and Dr. Josh 23 Haslem, engaged Plaintiff, through its managing director Hamilton “Butch” Dorian, to 24 provide consulting and other requested services. (Id.) Plaintiff was to be paid $10,000 at 25 the beginning of each month as a retainer, in addition to travel and other reasonable 26 expenses. (Id.) The Consulting Agreement anticipated an initial one-year term and 27 would automatically renew for additional thirty-day terms unless either party provided 28 notice of intent not to renew thirty days in advance. (Id.) 1 Defendant paid Plaintiff the $10,000 monthly retainer from October 2018 through 2 October 2019. (Id.) Plaintiff has not received a monthly payment since October of 2019. 3 (Id.) On January 7, 2022, Defendant sent a letter notifying Plaintiff of its intent to pay 4 one additional retainer payment of $10,000, which Plaintiff never received. (Id. at 3–4.) 5 Plaintiff asserts that the letter would cause termination of the Consulting Agreement on 6 February 7, 2022. (Id. at 4.) Plaintiff claims to be owed $280,000 ($10,000 for every 7 month Plaintiff was not paid from November of 2019 to February of 2022, a total of 8 twenty-eight months). (Id. at 3.) 9 Defendant moves to dismiss Plaintiff’s Complaint under the doctrine of forum non 10 conveniens, stay the case under the Colorado River Doctrine, and transfer venue pursuant 11 to 28 U.S.C. § 1404(a). (See ECF No. 6-1.) Additionally, Defendant moves to dismiss 12 Plaintiff’s second and third claims for failure to state a claim under Federal Rule of Civil 13 Procedure 12(b)(6). 1 (Id.) 14 II. MOTION TO DISMISS UNDER FORUM NON CONVENIENS 15 According to Defendant’s motion and documents attached thereto, Mr. Dorian 16 formed an LLC called Sweetwater DSO (“Sweetwater”) with Drs. Larsen and Haslem in 17 October of 2019. (ECF No. 6-3, at 3.) Sweetwater would provide administrative support 18 to several dental practices in Utah and one in Arizona. (Id.) The owners of Sweetwater 19 are the family trusts of Drs. Larsen and Haslem and Dorian’s entity Attilius Dental LLC 20 (as distinguished from Attilius LLC, the Plaintiff in this matter). (Id.) By late 2021 and 21 into early 2022, the relationship between Mr. Dorian and Drs. Larsen and Haslem turned 22 sour and Drs. Larsen and Haslem began the process of exerting control over Sweetwater 23 and the related dental practices. (Id.) 24 25 26 27 1 The Court assumes from the language used in its argument that Defendant moves to dismiss Plaintiff’s second and third claims for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6) 28 1 On March 29, 2022, Mr. Dorian, in the name of Attilius Dental LLC (not Attilius 2 LLC) and derivatively on behalf of Sweetwater, filed suit in a Utah state court (“Utah 3 Action”). (See ECF No. 6-4.) The Utah Complaint names eleven defendants including 4 Drs. Larsen and Haslem and Larsen-Haslem Dental LLC, the Defendant in the instant 5 action. (See id.) The Utah Complaint asserts fifteen claims for relief, all arising out of 6 the business relationship between Dorian and Drs. Larsen and Haslem that began with the 7 formation of Sweetwater. (See id.) 8 Defendant characterizes the present action as a “spinoff” of the Utah Action by 9 claiming that Plaintiff is attempting to “peel[] off” a contract claim from the broader 10 dispute. (ECF No. 6-1, at 12–13.) Defendant’s motion to dismiss under forum non 11 conveniens is based on the argument that Utah is the “epicenter” of this dispute and the 12 witnesses and property at issue are overwhelmingly found in Utah, making the Utah state 13 court the appropriate forum. (Id. at 13.) 14 “A district court has discretion to decline to exercise jurisdiction in a case where 15 litigation in a foreign forum would be more convenient for the parties.” Lueck v. 16 Sundstrand Corp., 236 F.3d 1137 (9th Cir. 2001) (citing Gulf Oil Corp. v. Gilbert, 330 17 U.S. 501, 504 (1947)). The doctrine of forum non conveniens is a “drastic exercise” of 18 the court's power and is reserved for “exceptional circumstances.” Carijano v. 19 Occidental Petroleum Corp., 643 F.3d 1216, 1224 (9th Cir. 2011). The decision to 20 dismiss a case for forum non conveniens is committed to the Court's “sound discretion.” 21 Piper Aircraft Co. v. Reyno, 454 U.S. 235, 257 (1981). 22 “A party moving to dismiss based on forum non conveniens bears the burden of 23 showing (1) that there is an adequate alternative forum, and (2) that the balance of private 24 and public interest factors favors dismissal.” Dole Food Co. v. Watts, 303 F.3d 1104, 25 1118 (9th Cir. 2002) (citing Lueck, 236 F.3d at 1142–43). Plaintiff does not contest 26 Defendant’s assertion that Utah state court would be an adequate alternative forum, and 27 the Court concurs. Thus, dismissal turns on the analysis of the private and public interest 28 factors. 1 The private interest factors include: “(1) the residence of the parties and the 2 witnesses; (2) the forum's convenience to the litigants; (3) access to physical evidence 3 and other sources of proof; (4) whether unwilling witnesses can be compelled to testify; 4 (5) the cost of bringing witnesses to trial; (6) the enforceability of the judgment; and (7) 5 all other practical problems that make trial of a case easy, expeditious and inexpensive.” 6 Bos. Telecomms. Grp., Inc. v. Wood, 588 F.3d 1201, 1206–07 (9th Cir. 2009) (quoting 7 Lueck, 236 F.3d at 1145). 8 Defendant has not demonstrated that the private interest factors weigh strongly in 9 favor of dismissal. See Gates Learjet Corp. v. Jensen, 743 F.2d 1325, 1334–35 (9th Cir. 10 1984) (“[U]nless the balance is strongly in favor of the defendant, the plaintiff's choice of 11 forum should rarely be disturbed.” (internal quotations omitted)). Defendant is domiciled 12 in California while Plaintiff is domiciled in Utah. (ECF No. 1, at 2.) Further, the parties 13 name potential witnesses that reside in California and Utah. (ECF No. 6-1, at 13–14; 14 ECF No. 9, at 17.) Dismissing this action would merely shift the obligation to travel to 15 Plaintiff and its witnesses. Thus, Defendant has not shown that the first private interest 16 factor weighs strongly in favor of dismissal. The same is true of the second, third, fifth, 17 and seventh factors. Evidence likely exists in both California and Utah, and potential 18 witnesses exist in each forum.

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Attilius LLC v. Larsen-Haslem Dental, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/attilius-llc-v-larsen-haslem-dental-llc-casd-2022.