Batchelor v. Alexis Properties, LLC

Superior Court of Delaware·Decided November 13, 2018·No. K17C-11-001 NEP·Published

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

JANET BATCHELOR, C.A. No. K17C-11-001 NEP PLAINTIFF, : In and For Kent County

ALEXIS PROPERTIES, LLC,

BB PRoPERTIEs oF DELAWARE, LLC, JoHN WELCoME d/b/a WELCoME HoME REALTY, and LIvEINDE.CoM, INC.,

DEFENDANTS.

OPINION AND ORDER

Submitted: November 2, 2018 Decided: November 13, 2018

Before the Court are Defendants John Welcome (hereinafter “Welcome”), AleXis Properties (hereinafter “Alexis”), Liveinde.com, Inc. (hereinai°ter “Liveinde.com”), and BB Properties of Delaware, LLC’s (hereinafter “BB Properties” and collectively with Welcome, Alexis, and Liveinde.com, “Defendants”) Motion to Dismiss Plaintiff’ s Amended Complaint. The motion requests dismissal of all or, in the alternative, part of the counts of the amended complaint filed by Ms. Janet Batchelor (hereinafter “Plaintiff’), Who seeks damages relating to a rental agreement (hereinafter the “Rental Agreement”) of a property

located at 5099 N. Dupont Hwy. Ste B, Dover, DE 19901 (hereinal°cer the

Janet Batche/or v. A/exis Propertie$, LLC et al K17C-11-001 NEP November 13, 2018

“Property”). For the reasons set forth below, Defendants’ motion is DENIED in part and GRANTED in part.

I. Factual Background and Procedural History

The Court has addressed the background facts and procedural history in its February 23, 2018, and April 3, 2018, rulings on motions to dismiss and motions for reargument previously filed in this case. The Court refers to those rulings for a more complete recitation of the facts of the case, and shall here only briefly recite the allegations of the complaint for context.l

On May 4, 2016, Plaintiff signed the Rental Agreement, which would lease the Property, owned by BB Properties, to “Dance Energy”2 for the term of June 1, 2016, to May 31, 2017. Defendants later allegedly committed breaches of the Rental Agreement that caused Plaintiff damages and forced her to vacate the Property.

Several motions to dismiss were filed before the Court, which were ultimately denied. On August 30, 2018, Plaintiff was granted leave to amend her complaint, which was subsequently filed on September 11, 2018. The motion to dismiss

presently before the Court was filed on October 11, 2018.3

l Savor Inc. v. FMR Corp., 812 A.2d 894, 896-97 (Del. 2002) (on a motion to dismiss “all well- pleaded factual allegations are accepted as true.”).

2 ln the Rental Agreement, the tenant is referenced as “Dance Energy” rather than “Dancenergy,” which is the term used in the First Amended Complaint.

3 Defendants originally attempted to file the motion on October 1, 2018, but the motion exceeded the permitted length. Defendants sought, and were granted, a page extension, after which they filed the motion.

Plaintiff argues that the motion to dismiss should be denied as untimely and that Defendants should be required to file an answer to the First Amended Complaint. Defendants conceded at oral argument that, pursuant to Superior Court Civil Rule 15(a), their motion should have been filed within 10 days of service of the First Amended Complaint, or Defendants should have asked for additional time to file the motion. However, as the Court explained at oral argument, it is unwilling to grant the relief requested by Plaintiff, as this would unnecessarily multiply and prolong the

.Ianet Batche/or v. Alexis Properties, LLC et al Kl 7C-11-001 NEP November 13, 2018

Defendants move to dismiss Plaintiffs amended complaint on the following grounds: (1) Plaintiff lacks standing; and Plaintiff has failed to plead facts sufficient to support claims for (2) abuse of process, (3) the Uniform Deceptive Trade Practices Act, (4) the F ederal Fair Debt Collection Practices Act, and (5) misappropriation of

escrow funds.

II. Discussion

On a motion to dismiss, the moving party bears the burden of demonstrating that “there are no material issues of fact and that he is entitled to judgment as a matter of law.”4 Upon this Court’s review of a motion to dismiss, “(i) all well-pleaded factual allegations are accepted as true; (ii) even vague allegations are well-pleaded if they give the opposing party notice of the claim; (iii) the Court must draw all reasonable inferences in favor of the non-moving party; and (iv) dismissal is inappropriate unless the plaintiff would not be entitled to recover under any reasonably conceivable set of circumstances susceptible of proof.”5 Additionally, “a pro se pleading is judged by a ‘less stringent standard’ than a pleading or document

filed by an attomey.”6

proceedings: Defendants, after filing an answer, could seek the same relief they are currently seeking by filing a motion for judgment on the pleadings pursuant to Superior Court Civil Rule 12(c), which would be decided pursuant to an identical standard. Therefore, the Court will consider Defendants’ current motion despite its untimely filing.

4 Daisy Constr. C0. v. W.B. Venables & Sons, Inc., 2000 WL 145818, at *1 (Del. Super. Jan. 14, 2000).

5 Savor, 812 A.2d at 896-97.

6 Johnson v. State, 442 A.2d 1362, 1364 (Del. 1982) (quoting Bounds v. Smith, 430 U.S. 817, 826 (1977)).

.lanet Batchelor v. Alexis Properties, LLC et al K1 7C-11-001 NEP November 13, 2018

A. Plaintiff" s Alleged Lack of Standing

Defendants argue that dismissal is warranted for lack of standing. Alexis and Welcome have previously sought dismissal of Plaintiff s claims based on lack of standing because Plaintiff is suing for breach of a rental agreement even though she is not the tenant named in the agreement as mentioned previously, the Rental Agreement names “Dance Energy” as the tenant, with Plaintiff merely signing the agreement Defendants have also previously argued that Plaintiff’s claims should be dismissed because Dancenergy is the real part in interest and, as an alleged “artificial entity,” must be represented by an attorney in this action. Defendants, as before, cite to Rule 57 of the Delaware Supreme Court, which provides that in the context of proceedings before the Justice of the Peace Court, persons “transacting business in Delaware that have or should have filed a certificate with the Prothonotary’s office designating a trade name” are to be considered artificial entities.7 Under Delaware law, artificial entities can only act before a court “through an agent duly licensed to practice law.”8 However, as was previously held by this Court, Rule 57 does not apply to proceedings before the Superior Court.9

Plaintiff previously responded to these arguments by arguing that she does have standing to bring suit: while the lessee was named as “Dance Energy” in the Rental Agreement, she asserts that she was the “sole proprietor” of the dance studio and that “Dancenergy” is a fictitious name for which a proper application had been

filed.

7 Del. Supr. Ct. R. 57(a)(1).

8 Transpolymer Indus., Inc. v. Chapel Main Corp., 582 A.2d 936 1990 WL 168276, at *l (Del. 1990).

9 Rule 57 expressly notes that the definitions provided are only “[f] or purposes of this Rule.”

Janet Batche/or v. A/exis Properties, LLC et al K17C-11-001 NEP November 13, 2018

With the instant motion, Defendants repeat the same arguments from the previous proceedings Defendants argue that Dancenergy signed the Rental Agreement through its agent Janet Batchelor, and that Dancenergy is the real party in interest.

Free access — add to your briefcase to read the full text and ask questions with AI

Batchelor v. Alexis Properties, LLC, (Del. Ct. App. 2018).

Batchelor v. Alexis Properties, LLC (Batchelor v. Alexis Properties, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Bounds v. Smith
430 U.S. 817 (Supreme Court, 1977)
Cynthia A. Siwulec v. Jm Adjustment Services LLC
465 F. App'x 200 (Third Circuit, 2012)
Dover Historical Society, Inc. v. City of Dover Planning Commission
902 A.2d 1084 (Supreme Court of Delaware, 2006)
Kaye v. Pantone, Inc.
395 A.2d 369 (Court of Chancery of Delaware, 1978)
Johnson v. State
442 A.2d 1362 (Supreme Court of Delaware, 1982)
Nix v. Sawyer
466 A.2d 407 (Superior Court of Delaware, 1983)
Browne v. Robb
583 A.2d 949 (Supreme Court of Delaware, 1990)
Savor, Inc. v. FMR Corp.
812 A.2d 894 (Supreme Court of Delaware, 2002)
Spence v. Funk
396 A.2d 967 (Supreme Court of Delaware, 1978)
Price v. E.I. DuPont De Nemours & Co.
26 A.3d 162 (Supreme Court of Delaware, 2011)
Beck v. Atlantic Coast PLC
868 A.2d 840 (Court of Chancery of Delaware, 2005)
Grand Ventures, Inc. v. Whaley
632 A.2d 63 (Supreme Court of Delaware, 1993)
Draper v. Medical Center of Delaware
767 A.2d 796 (Supreme Court of Delaware, 2001)
Stidham v. Diamond State Brewery, Inc.
21 A.2d 283 (Superior Court of Delaware, 1941)