Bell v. Gray

CourtDistrict Court, S.D. New York
DecidedSeptember 30, 2022
Docket1:20-cv-01588
StatusUnknown

This text of Bell v. Gray (Bell v. Gray) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bell v. Gray, (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------------- X : RENZER BELL, : : Plaintiff, : : 20 Civ. 1588 (JPC) (SLC) -v- : : OPINION AND ORDER CHARLES GRAY, : : Defendant. : : ---------------------------------------------------------------------- X JOHN P. CRONAN, United States District Judge: Plaintiff Renzer Bell is proceeding pro se and has been granted in forma pauperis status in this breach of contract dispute. Dkts. 2 (“Compl.”), 3. He principally alleges that Defendant Charles Gray reneged on agreements to purchase two high-end automobiles. Gray now moves to dismiss Bell’s Complaint on various grounds, while Bell has moved for leave to amend his Complaint. For the reasons that follow, the Court finds that Bell submitted inaccurate information about his financial condition on his in forma pauperis application. The Court therefore grants Gray’s motion to dismiss without prejudice pursuant to 28 U.S.C. § 1915(e)(2)(A). Because the grounds for that dismissal cannot be cured by any amendment to the Complaint, the Court also denies Bell’s motion to amend. I. Background A. The Dispute Bell describes himself as “a merchant” who is “actively engaged in the business of purchasing and trading a variety of valuable commodities.” Compl. ¶ 3. Bell alleges that, in late 2015, he and Gray entered into two contracts contemplating Gray’s purchase of high-end automobiles, with Bell essentially to act as a broker. Id. ¶¶ 14, 21. The first contract, dated September 30, 2015, involved the potential purchase of a 2016 Porsche 911 GT3 RS, id., ¶ 14, Exh. P, and the second, dated November 23, 2015, involved the potential purchase of a 2016 McLaren 675LT, id. ¶ 21, Exh. Q. Both contracts, as alleged, were largely similar, with the

primary differences being the exact vehicle make and model, Gray’s agreed-upon purchase price, and the fee that Bell would receive upon consummation of the transaction. Id., Exhs. P, Q.1 Both contracts also allegedly included provisions stating that, in the event Gray failed to consummate a properly tendered transaction, Bell was entitled to $75,980 in liquidated damages. Id. ¶¶ 18, 25, Exhs. P ¶ 9, Q ¶ 9. Both contracts also allowed Bell, within thirty days of tendering to Gray the contract for purchase of the vehicle, to exercise a right to tender a contract for a second vehicle. Id. ¶¶ 19, 26, Exhs. P ¶ 6, Q ¶ 6. The parties dispute what happened after executing these contracts. Bell claims that he arranged for Gray to purchase both cars, but Gray refused to pay for the McLaren or to pay the full agreed-upon price for the Porsche. Id. ¶¶ 20, 34, 45, 49. Gray, however, maintains that while he

emailed Bell the exact specifications he required for the McLaren, Bell was unable to meet those specifications as required to trigger a purchase obligation under their contract. Dkt. 62 (“Motion”) at 4. Gray similarly contends that while he advised Bell of his required specifications for the Porsche, Bell offered him a different vehicle and did not tender a contract of sale for a vehicle

1 The Porsche contract contemplated Bell receiving $7,088 and the vehicle’s seller receiving the manufacturer’s suggested retail price plus $68,000 and other fees, Complaint ¶¶ 15- 16, Exh. P ¶¶ 1, 4, while the McLaren contract contemplated Gray receiving $5,088 and the vehicle’s seller receiving the manufacturer’s suggested retail price plus $5,000 and other fees, id. ¶¶ 22-23, Exh. Q ¶¶ 1, 4. Both contracts further provided that, in the event Bell were to negotiate a lower purchase price from the vehicle seller, Bell would receive the difference between the aforementioned contractual purchase price and the actual sales price. Id. ¶¶ 17, 24, Exhs. P ¶ 5, Q ¶ 5. meeting the desired specifications. Id. Gray then conveyed in a March 2, 2016 email that he had no obligation to pay Bell anything under either contract because Bell had failed to tender contracts for either a Porsche or McLaren that met his required specifications. Compl., Exhs. Y, Z. But, for the reasons that follow, these disputes are immaterial to the Court’s dispositions of the pending

motions. B. Procedural History On February 24, 2020, Bell initiated this action by filing his Complaint, citing this Court’s diversity jurisdiction, id. ¶ 1, and bringing three causes of action for “anticipatory repudiation, or breach of contract,” id. ¶¶ 54-75. In short, Bell sues Gray for failing to purchase cars pursuant to their contracts. Id. As relief, he seeks liquidated damages in the amount of $75,980 for two of the causes of action, as well as compensatory damages of at least $10,088 and incidental damages in the amount of $1,575. Id. at 12-13. As mentioned, Bell filed this case in forma pauperis. Prior to receiving such status, Bell submitted a signed “Application to Proceed Without Prepaying Fees or Costs.” Dkt. 1 (“IFP

Application”). Bell signed the IFP Application under penalty of perjury, declaring that the statements contained therein were true, and acknowledged “that a false statement may result in a dismissal of [his] claims.” Id. at 2; see also id. at 1 (“I declare that the responses below are true . . . .”). In opening paragraph of the Application, Bell “declare[d] that [he was] unable to pay the costs of these proceedings.” Id. Bell further represented that he had no money “in cash or in a checking [or] savings . . . account,” id. ¶ 4, and that he owned no “automobile, real estate, stock, bond, security, trust, jewelry, art work, or other financial instrument or thing of value, including any item of value held in someone else’s name,” id. ¶ 5. He stated that he was unemployed, id. ¶ 2, although he had received $9,500 for business consulting over the preceding twelve months., id. ¶ 3. Bell wrote, however, that he had “no reliable expectation of future income.” Id. He additionally disclosed that he had monthly expenses in the amounts of $300 for utilities, $400 for food, and $300 for property taxes. Id. ¶ 6. On March 23, 2020, the Honorable Colleen McMahon, then-Chief Judge of this District, granted Bell’s in forma pauperis application. Dkt. 3.2

On September 17, 2021, Gray moved to dismiss the Complaint.3 See Dkt. 61. Gray advances four independent grounds for dismissal: (1) Bell’s allegation of poverty is untrue, requiring dismissal under 28 U.S.C. § 1915(e)(2)(A), Motion at 11-16; (2) subject matter jurisdiction is lacking because the amount-in-controversy threshold of 28 U.S.C. § 1332(a) cannot be met, id. at 16-20; (3) Bell has failed to state a plausible claim for breach of contract, id. at 20- 23; and (4) the Complaint is barred by the statute of limitations, id. at 23-24. The Court gave Bell two extensions to oppose Gray’s motion to dismiss. See Dkts. 67, 71. Eventually, Bell attempted to file an amended complaint, Dkt. 74, which the Court rejected as too late to be permitted as a matter of course under Federal Rule of Civil Procedure 15(a)(1), Dkt. 77. Bell then moved to amend on January 26, 2022, presenting arguments against dismissal in his motion. Dkt. 83 (“Motion to Amend”).4 Gray opposed the Motion to Amend on February 18, 2022. Dkt. 87.

2 The case was later reassigned to the Honorable Lorna G. Schofield on March 24, 2020, see ECF Minute Entry for Mar. 24, 2020, before being reassigned to the undersigned on September 29, 2020, see ECF Minute Entry for Sept. 29, 2020. 3 On May 23, 2021, Bell sought a default judgment against Gray, Dkt.

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Bluebook (online)
Bell v. Gray, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bell-v-gray-nysd-2022.