Berry v. The Secure Relationship, LLC

District Court, D. South Carolina·Decided November 4, 2022·No. 2:22-cv-02815·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA CHARLESTON DIVISION

LOGAN BERRY, ) ) Plaintiff, ) ) No. 2:22-cv-02815-DCN vs. ) ) ORDER THE SECURE RELATIONSHIP, LLC, ) ) Defendant. ) _______________________________________)

This matter is before the court on defendant The Secure Relationship, LLC’s (“Secure Relationship”) motion to dismiss, ECF No. 5. For the reasons set forth below, the court grants the motion. I. BACKGROUND This dispute arises out of Secure Relationship’s alleged withholding of consulting wages from plaintiff Logan Berry (“Berry”). Secure Relationship is a limited liability company that provides relationship therapy and coaching for couples and relationship information through various media forms, including literary works. Secure Relationship is a Montana limited liability corporation with a principal place of business in Montana. Julie Menanno (“Mrs. Menanno”) serves as a manager and member of Secure Relationship. Berry is publishing consultant who provides services as an independent contractor. Prior to working as an independent contractor, Berry worked for Palmetto Publishing Group, a South Carolina publisher. Mrs. Menanno first became familiar with Berry in early 2021 when she, in her capacity as a member and manager of Bozeman Therapy and Counseling, LLC, met with Palmetto Publishing Group to learn about their book publishing operation. Around that time, Mrs. Menanno was exploring the possibility of self-publishing her book through Secure Relationship, and while she was in South Carolina, she discussed the advantages of self-publishing versus traditional book publishing with Berry. According to Secure Relationship, Berry held himself out as a sophisticated consultant in the areas of publishing, internet marketing, and monetization.

Thereafter, in January 2022, Berry traveled to Montana to meet with Secure Relationship’s representatives. Secure Relationship claims that the visit was intended to allow Berry to pitch his role as a consultant, while Berry claims that the visit was meant discuss the parameters of the position, which he had purportedly already been offered over a phone call with Mrs. Menanno. According to Berry, the parties reached an agreement on the terms of Berry’s compensation, which included various commissions for book sales, partnership deals, podcasts, and other avenues of distribution. Upon Berry’s return to South Carolina, where he resides, the parties began to finalize the terms of Berry’s role and

compensation. Secure Relationship, on the other hand, claims that no formal agreement was ever reached between the parties. Berry allegedly began performing work for Secure Relationship. Secure Relationship ultimately obtained a book publishing deal for Mrs. Menanno’s book worth at least $870,000. Berry alleges that after helping to generate revenue for Secure Relationship, Berry was abruptly terminated without cause in April 2022. On June 3, 2022, Berry filed his complaint against Secure Relationship in the Charleston County Court of Common Pleas, alleging a violation of the South Carolina Wage Payment Act and breach of contract. ECF No. 1-1, Compl. On August 22, 2022, Secure Relationship removed the action to this court. ECF No. 1. On August 29, 2022, Secure Relationship filed its motion to dismiss for lack of jurisdiction. ECF No. 5. Berry responded in opposition on September 12, 2022, ECF No. 6, and Secure Relationship replied on September 20, 2022, ECF No. 7. The court held a hearing on the motion on October 27, 2022. ECF No. 9. As such, the motion has been fully briefed and is now

ripe for review. II. STANDARD When a court’s power to exercise personal jurisdiction over a non-resident defendant is challenged by a motion under Federal Rule of Civil Procedure 12(b)(2), “the jurisdictional question thus raised is one for the judge, with the burden on the plaintiff ultimately to prove the existence of a ground for jurisdiction by a preponderance of the evidence.” Combs v. Bakker, 886 F.2d 673, 676 (4th Cir. 1989). Furthermore, when a district court rules on a Rule 12(b)(2) motion without conducting an evidentiary hearing or without deferring ruling pending receipt at trial of evidence relevant to the

jurisdictional issue, “the burden on the plaintiff is simply to make a prima facie showing of a sufficient jurisdictional basis in order to survive the jurisdictional challenge.” Id. at 676. To determine whether a plaintiff has satisfied this burden, the court may consider both the defendant’s and the plaintiff’s “pleadings, affidavits, and other supporting documents presented to the court” and must construe them “in the light most favorable to plaintiff, drawing all inferences and resolving all factual disputes in its favor,” and “assuming [plaintiff’s] credibility.” Masselli & Lane, PC v. Miller & Schuh, PA, 215 F.3d 1320 (4th Cir. 2000) (unpublished table opinion); see Mylan Labs., Inc. v. Akzo, N.V., 2 F.3d 56, 62 (4th Cir. 1993); Combs, 886 F.2d at 676. The court, however, need not “credit conclusory allegations or draw farfetched inferences.” Masselli, 215 F.3d 1320 (quoting Ticketmaster-N.Y., Inc. v. Alioto, 26 F.3d 201, 203 (1st Cir. 1994)). III. DISCUSSION Secure Relationship moves to dismiss Berry’s complaint pursuant to Rule 12(b)(2) for lack of personal jurisdiction. Under Federal Rule of Civil Procedure

4(k)(1)(A), a federal court may exercise personal jurisdiction over a defendant in the manner provided by state law. See ESAB Grp., Inc. v. Centricut, Inc., 126 F.3d 617, 622 (4th Cir. 1997). Thus, in evaluating a challenge to personal jurisdiction, the court engages in a two-step analysis. Ellicott Mach. Corp. v. John Holland Party Ltd., 995 F.2d 474, 477 (4th Cir. 1993). First, it must find that the forum state’s long-arm statute authorizes the exercise of jurisdiction under the facts presented. Id. Second, if the statute does authorize jurisdiction, then the court must determine if its exercise of personal jurisdiction is consistent with due process. Id. South Carolina’s long-arm statute extends its reach to the outer limits allowed by the Due Process Clause. Foster v. Arletty 3 Sarl,

278 F.3d 409, 414 (4th Cir. 2002); Cockrell v. Hillerich & Bradsby Co., 611 S.E.2d 505, 508 (S.C. 2005). Consequently, the two-step inquiry compresses into a single question: whether the court’s exercise of personal jurisdiction comports with due process. Sonoco Prod. Co. v. Inteplast Corp., 867 F. Supp. 352, 354 (D.S.C. 1994). Personal jurisdiction over a nonresident defendant can be either specific or general. ESAB, 126 F.3d at 623–24. General jurisdiction is exercised on the basis of the defendant’s “continuous and systematic” contacts within the state, even when the suit is unrelated to the defendant’s contacts within that state. See S.C. Code Ann. § 36-2- 802; Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 416 (1984). Specific jurisdiction is exercised when a cause of action is related to the defendant’s activities within the forum state. See S.C. Code Ann.

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