Bain v. Gary, Williams, Parenti, Watson & Gary, P. L.

53 F. Supp. 3d 144, 2014 WL 3050311, 2014 U.S. Dist. LEXIS 92020
CourtDistrict Court, District of Columbia
DecidedJuly 7, 2014
DocketCivil Action No. 2013-0848
StatusPublished
Cited by3 cases

This text of 53 F. Supp. 3d 144 (Bain v. Gary, Williams, Parenti, Watson & Gary, P. L.) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bain v. Gary, Williams, Parenti, Watson & Gary, P. L., 53 F. Supp. 3d 144, 2014 WL 3050311, 2014 U.S. Dist. LEXIS 92020 (D.D.C. 2014).

Opinion

MEMORANDUM OPINION

ROYCE C. LAMBERTH, United States District Judge

This matter comes before the Court upon defendants’ Motion to Dismiss Complaint for Failure to State a Claim. Upon consideration of the defendants’ motion [5], plaintiff’s opposition thereto [8], and the defendants’ reply [12], the Court DENIES the defendants’ motion.

I. BACKGROUND

This case arises from a personal services agreement (“PSA”) between the plaintiff, Raymone K. Bain, and the late King of Pop, Michael Jackson. The agreement, signed on May 30, 2006, entitled Ms. Bain to a 10% finder’s fee in the event that Mr. Jackson benefitted from any agreements or engagements initiated by Ms; Bain or her contacts. Bain v. Jackson, 783 F.Supp.2d 13, 16 (D.D.C.2010). In the following months, Ms. Bain claims that she negotiated deals for Mr. Jackson entitling her to millions of dollars. Id. On December 27, 2007, Ms. Bain signed an agreement releasing Mr. Jackson from any liability to her in excess of $488, 820.05, the sum that Mr. Jackson agreed to pay as compensation to Ms. Bain. Id.

In May 2009, Ms. Bain, represented by the firm Cahn & Samuels LLP, filed suit against Mr. Jackson and affiliated corporate entities, arguing that notwithstanding the release, Mr. Jackson owed $44 million in damages for breach of contract, unjust enrichment, and quantum meruit. On June 18, 2009, Mr. Jackson moved to dismiss solely on the basis of the release. Mr. Jackson died seven days later.

On July 2, 2009, Cahn & Samuels filed an opposition to the motion to dismiss on Ms. Bain’s behalf. Bain v. Jackson, No. 09-826, Pl.’s Opp. to Defs.’ Mot. to Dismiss, ECF No. 28. The opposition first urged that consideration of the release, a document outside of the pleadings, was inappropriate on a motion to dismiss, and second, argued that the release was invalid because it was procured through fraudulent inducement, misrepresentation, and mistake. Id. at 1. The then-presiding district judge, the Honorable James Robertson, agreed on the first point and notified the parties that the motion to dismiss would be treated as a motion for summary judgment. Bain v. Jackson, No. 09-826, Order, ECF No. 31. And in light of Mr. Jackson’s unexpected passing, Judge Robertson stayed the case pending appointment of an executor for Mr. Jackson’s estate. Id.

The court lifted the stay on November 20, 2009, Bain v. Jackson, No. 09-826, Order, ECF No. 36, and on December 15, granted Cahn & Samuels’ motion to withdraw as Ms. Bain’s counsel, Bain v. Jackson, No. 09-826, Order, ECF No. 38. Ms. Bain then retained counsel from the law firm of Gary, Williams, Finney, Lewis, Watson, and Sperando, P.L. (“Gary Firm”), who entered their appearance on December 18, 2009.

On January 4, 2010, the Gary Firm filed a supplemental opposition to the motion to dismiss that largely focused on the authenticity of the release. Bain v. Jackson, No. 09-826, Order, ECF No. 48. On May 7, 2010, Judge Robertson, finding that the release was both genuine and a bar to Ms. Bain’s claims, granted summary judgment in favor of Mr. Jackson. Bain v. Jackson, 783 F.Supp.2d at 16-19. The Gary Firm did not move for reconsideration or file an appeal.

Five months later, Ms. Bain filed a motion to set aside the judgment pursuant to Federal Rule of Civil Procedure 60(b)(2), *147 which allows relief from a final judgment where there is “newly discovered evidence that, with reasonable diligence, could not have been discovered in time to move for a new trial.” The new evidence claimed by Ms. Bain was an April 24, 2008 letter wherein Mr. Jackson denies any knowledge of the release and requests that Ms. Bain continue working on his behalf. In her motion, Ms. Bain claimed that although she was aware of the letter’s existence, and informed her counsel of it, she had been unable to locate a copy of the letter until files that were in the possession of a consultant for the Michael Jackson Company LLC were returned to her in July 2010. This Court denied relief under Rule 60(b)(2), holding that Ms. Bain failed to exercise due diligence to locate the document because she and her counsel “knew of the 2008 letter’s existence, [but] failed to reference it in any of their filings with the Court.” Bain v. Jackson, No. 09-826, Memorandum and Order, ECF No. 79.

The U.S. Court of Appeals for the D.C. Circuit affirmed. The Circuit held that “a party’s unannounced awareness of evidence can affect the assessment of whether it exercised the ‘reasonable diligence contemplated- by the Rule.” Bain v. MJJ Prods., Inc., 751 F.3d 642 (D.C.Cir.2014). Ms. Bain’s failure to apprise the district court of the 2008 letter in order to request the court’s assistance in unearthing the letter in discovery was the principal reason for the Circuit’s decision.

"While the appeal was pending, Ms. Bain filed the present action, alleging that the Gary Firm committed legal malpractice by failing to (1) amend the complaint to include events that occurred subsequent to initiation of the suit; (2) marshal additional facts and evidence to support Ms. Bain’s claims; (3) alert the court to the existence of the April 24, 2008 letter and request the court’s assistance in recovering the letter through discovery; (4) keep Ms. Bain informed about the status of her case; and (5) file a timely motion for reconsideration and/or notice of appeal. The defendants have moved to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6).

II. LEGAL STANDARD

The events giving rise to this complaint occurred in the District of Columbia, and this case was initially filed in the Superior Court of the District of Columbia pursuant to D.C. Code § 11-921. Defendants successfully removed the case to this Court, which has jurisdiction over this matter under 28 U.S.C. § 1332 because of the complete diversity of citizenship between Ms. Bain and the Gary Firm. In such cases, “federal courts are to apply state substantive law scad federal procedural law.” Burke v. Air Serv. Int'l, Inc., 685 F.3d 1102, 1107 (D.C.Cir.2012) (emphasis added). Accordingly, District of Columbia law applies to the substantive legal malpractice claim while the Federal Rules of Civil Procedure govern the question whether Ms. Bain has pleaded sufficient facts to state a claim.

A. Legal Malpractice

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Bluebook (online)
53 F. Supp. 3d 144, 2014 WL 3050311, 2014 U.S. Dist. LEXIS 92020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bain-v-gary-williams-parenti-watson-gary-p-l-dcd-2014.