Berdux v. Project Time & Cost, Inc.

669 F. Supp. 2d 1094, 2009 U.S. Dist. LEXIS 105639, 2009 WL 3526565
CourtDistrict Court, N.D. California
DecidedOctober 20, 2009
DocketCase 09-3832 SC
StatusPublished
Cited by4 cases

This text of 669 F. Supp. 2d 1094 (Berdux v. Project Time & Cost, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berdux v. Project Time & Cost, Inc., 669 F. Supp. 2d 1094, 2009 U.S. Dist. LEXIS 105639, 2009 WL 3526565 (N.D. Cal. 2009).

Opinion

ORDER DENYING DEFENDANTS’ MOTION TO DISMISS

SAMUEL CONTI, District Judge.

I. INTRODUCTION

Now before the Court is a Motion to Dismiss (“Motion”) filed by Defendants Project Time & Cost, Inc., PT & C Forensic Consulting Services, P.A. (collectively “PT & C”), Grover Davis (“Davis”), and Ryan Maphet (“Maphet”). Docket No. 12. Plaintiff Bill Berdux (“Berdux”) has filed an Opposition, and Defendants have filed a Reply. Docket Nos. 39, 40. Having considered the papers submitted by all parties, this Court concludes that this matter is appropriate for decision without oral argument. For the reasons stated below, the Court concludes that the Motion must be DENIED.

II. BACKGROUND

Project Time & Cost, Inc., is incorporated in the State of Georgia, and PT & C Forensic Consulting Services, P.A., is incorporated in the State of Delaware. Compl. ¶¶ 2-3. 1 PT & C is engaged in the *1098 business of providing forensic engineering services. Id. ¶ 17. This type of service is marketed primarily to insurance companies. Id. ¶ 18. Most insurance companies will only hire approved vendors of forensic engineering services, and Berdux claims that the process of becoming an approved vendor takes many months — typically six months and sometimes longer. Id. ¶ 19. Many insurance companies require vendors to be approved not only on the national level, but also on the local level. Id. ¶ 20.

At the time that the circumstances underlying this dispute began to unfold in the summer of 2006, Berdux was employed as a marketing manager for Rimkus Consulting Group, Inc. (“Rimkus”), which is apparently a competitor of PT & C. Id. ¶¶ 9-14, 18. Berdux resided and worked in the state of Nevada. Id. ¶ 10. It was during the summer of 2006 that PT & C approached Berdux with an offer to serve as PT & C’s first Regional Manager-Western Region, and to open PT & C’s first Western regional office in San Francisco, California. Id. ¶¶ 17, 21.

Berdux claims that Maphet, as Executive Vice President for PT & C, arranged to meet with him in Las Vegas, Nevada. Id. ¶ 21. According to Berdux, Maphet told Berdux during this meeting that PT & C was ready to immediately open an office in San Francisco, California, and assured Berdux that PT & C had already obtained necessary approvals from major insurance companies in the area. Id. ¶¶ 23-25. Berdux further claims that PT & C paid for him to fly to Atlanta, where he met over lunch with Maphet as well as Davis, the CEO and Vice Chairman of Project Time & Cost, Inc. Id. ¶¶ 26. Maphet and Davis allegedly reaffirmed that PT & C were locally licensed and ready to begin conducting business in San Francisco. Id. ¶ 27.

Berdux resigned his employment with Rimkus, moved to San Francisco to began his employment with PT & C. Id. ¶ 33. After he moved, Berdux claims that he learned that the representations made by Maphet and Davis were false, and that PT & C was not locally approved and ready to start doing business with major insurance companies in San Francisco. Id. ¶ 33. In spite of what Berdux describes as his diligent and satisfactory efforts to win approval and business from major insurance carriers, PT & C was not able to grow quickly and Berdux was fired on or about February of 2007. Id. ¶¶ 33-37. Berdux brought the present lawsuit for intentional misrepresentation, fraudulent concealment, breach of a covenant of good faith and fair dealing, promissory and equitable estoppel, and violation of California Labor Code section 970. Id. ¶¶ 38-98.

III. LEGAL STANDARD

Defendants’ Motion rests upon three separate bases: lack of personal jurisdiction, insufficient service of process, and statutes of limitations.

First, Defendants claim that this Court lacks personal jurisdiction over all of the Defendants, and move for dismissal under Rule 12(b)(2) of the Federal Rules of Civil Procedures. Mot. at 3-5. Where, as here, a court considers a 12(b)(2) motion without an evidentiary hearing, “the plaintiff need make only a prima facie showing of jurisdictional facts to withstand the motion to dismiss. That is, the plaintiff need only demonstrate facts that if true would support jurisdiction over the defendant.” Ballard v. Savage, 65 F.3d 1495, 1498 (9th Cir.1995) (citations omitted). “Conflicts between parties over statements contained in affidavits must be resolved in the plaintiffs favor.” Schwarzenegger v. Fred Martin Co., 374 F.3d 797, *1099 800 (9th Cir.2004). Jurisdiction must comport with both the long-arm statute of the state in which the district court sits, as well as the constitutional requirements of due process. Mattel, Inc. v. Greiner & Hausser GmbH, 354 F.3d 857, 863 (9th Cir.2003). The Ninth Circuit has recognized that the California long-arm statute, Cal.Code Civ. Proc. § 410.10, allows Courts to exercise jurisdiction to the limits of the Due Process Clause of the Constitution, “so a federal court may exercise personal jurisdiction if doing so comports with federal constitutional due process.” Boschetto v. Hansing, 539 F.3d 1011, 1015-16 (9th Cir.2008).

Defendants also assert that dismissal as to Davis and Maphet is appropriate pursuant to Rule 12(b)(5) of the Federal Rules of Civil Procedure, based on their claim that service on Davis and Maphet was improper. Mot. at 5-8. “Once service is challenged, plaintiffs bear the burden of establishing that service was valid under Rule 4 [of the Federal Rules of Civil Procedure].” Brockmeyer v. May, 383 F.3d 798, 801 (9th Cir.2004). Rule 4(e) controls service upon individuals within a judicial district of the United States, and permits service according to the specific methods set down by Rule 4(e), or in accordance with the state in which the district court is located or in which service is made. “So long as a party receives sufficient notice of the complaint, Rule 4 is to be ‘liberally construed’ to uphold service.” Travelers Cas. & Sur. Co. of Am. v. Brenneke, 551 F.3d 1132, 1135 (9th Cir.2009) (citing Chan v. Soc’y Expeditions, Inc., 39 F.3d 1398, 1404 (9th Cir.1994)).

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669 F. Supp. 2d 1094, 2009 U.S. Dist. LEXIS 105639, 2009 WL 3526565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berdux-v-project-time-cost-inc-cand-2009.