Brit Uw, Limited v. Manhattan Beachwear, LLC

235 F. Supp. 3d 48, 2017 WL 375607, 2017 U.S. Dist. LEXIS 10761
CourtDistrict Court, District of Columbia
DecidedJanuary 26, 2017
DocketCivil Action No. 2016-0523
StatusPublished
Cited by12 cases

This text of 235 F. Supp. 3d 48 (Brit Uw, Limited v. Manhattan Beachwear, LLC) 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
Brit Uw, Limited v. Manhattan Beachwear, LLC, 235 F. Supp. 3d 48, 2017 WL 375607, 2017 U.S. Dist. LEXIS 10761 (D.D.C. 2017).

Opinion

MEMORANDUM OPINION

RUDOLPH CONTRERAS, United States District Judge

Granting Dependant’s Motion to Dismiss

I. INTRODUCTION

Plaintiff Brit UW, Limited (Brit) seeks declaratory relief to establish that it need not pay Defendant Manhattan Beachwear, LLC (MBW) under a professional liability insurance policy that ' Brit provided. MBW’s involvement in this controversy began when it retained Clyde Hettrick, a partner at Dickstein Shapiro LLP (Dick-stein), to represent it in an insurance matter. During-the representation, Mr. Het-trick left Dickstein to form his own firm, and took MBW with him as a client. MBW later came to regret this decision, to the extent that it fired Mr. Hettrick and sued him (and his new firm) for malpractice. Brit—one of several insurers on’ Dick-stein’s professional liability, policy—declined coverage of the malpractice suit.

MBW; through a variety of legal machinations, both received a judgment for $63,888,486.49 against the defendants in the malpractice action, and obtained assignment of the defendants’ claims against Dickstein’s insurers, including Brit. Noting that MBW was^s poised to sue it for millions, Brit filed this action seeking, inter alia, a declaration of non-coverage, over the malpractice claims. Now before the Court ’is MBW’s motion to dismiss this action for lack of personal jurisdiction, lack of subject matter • jurisdiction,, .failure to join a party, lack of venue, and forum non conveniens. The Court concludes that it does not have personal jurisdiction over MBW under either specific or general jurisdiction, and thus dismisses.the action in its entirety without reaching the other-issues.

II. BACKGROUND 1

This case involves aminsurance dispute between plaintiff Brit, an insurer, and de *52 fendant MBW, 2 an erstwhile 3 swimwear manufacturer. Brit was one of several insurers that issued a professional liability insurance policy to Dickstein, and MBW was one of Dickstein’s clients.

The origins of this case began to germinate in 2007, when MBW claimed that it lost $11,459,421 due to a fire and theft in Indonesia. Soura Decl. ¶ 8, ECF No. 7-1; Compl. ¶ 17, ECF No. 1. MBW disagreed with its insurer’s handling of the claim, and hired Clyde Hettrick—then a partner at Dickstein in the Los Angeles office—to represent it in the Indonesia matter. Soura Decl. ¶ 9. The retainer agreement was negotiated in California, mailed from California, and contained a California arbitration provision. Soura Decl. ¶ 9. Brit and several other London insurers provided professional liability insurance to Dickstein at the time. 4 Compl. ¶¶ 1,7; see also Primary Professional Liability Insurance Policy, ECF No. 1-1, Ex. A. After submitting a claim package on MBW’s behalf in the Indonesia matter, Mr. Hettrick left Dick-stein and started his own law firm, Compl. ¶ 18; Soura Decl. ¶ 10, retaining MBW as a client, Compl. ¶ 18; Soura Decl. ¶ 10.

Relations between Mr. Hettrick and MBW soon soured. In June of 2011, MBW replaced Mr. Hettrick with lawyers from Dickstein’s Los Angeles office for the Indonesia matter, Soura Decl. ¶ 12, and in 2012 MBW sued Mr. Hettrick for malpractice in Los Angeles Superior Court, Compl. ¶ 28; see also Complaint for Legal Malpractice, Manhattan Beachwear, LLC v. Hettrick Law, P.C., No. BC497520 (Cal. Super. Ct. Dec. 14, 2012), ECF No. 1-3, Ex. C. Dickstein’s insurers, including Brit, were not named in the malpractice case. See Complaint for Legal Malpractice, Manhattan Beachwear, LLC v. Hettrick *53 Law, P.C., No. BC497520 (Cal. Super. Ct. Dec. 14, 2012). Brit declined to provide coverage in the malpractice suit. Compl. ¶ 31.

The malpractice case was ongoing when Mr. Hettrick died in 2013. Following his death, MBW took an unorthodox approach 5 to resolving the matter. First, MBW reached a settlement with Mr. Het-trick’s estate and Hettrick’s new law firm. See generally Settlement Agreement, ECF No. 1^4, Ex. D. Instead of disposing of the court case, however, the settlement provided that the case would proceed to a bench trial but the estate would not contest MBW’s allegations on damages or culpability. Settlement Agreement ¶ 3 (“The ESTATE ... agree[s] not to contest the nature or amount of any claims made by MB against the ESTATE. Liability and the extent of MB’s damages against the ESTATE will be determined ... in an uncontested prove-up hearing .... and shall be entered as a judgment against the ESTATE in the ACTION”). The estate further agreed to assign 6 any claims it might have against Brit (or Dickstein’s other insurers) to MBW. Compl. ¶ 33; Soura Deck ¶ 16; Settlement Agreement ¶ 4 (“[T]he ESTATE shall assign to MB ... any and all assignable claims against [the professional liability insurers]”). In exchange for these concessions, MBW agreed not to collect on the judgment from Hettrick’s estate. See generally Settlement Agreement.

A bench trial occurred pursuant to this agreement, and the court issued a judgment of $63,888,486.49 in MBW’s favor. Compl. ¶ 34; Judgment After Court Trial, Manhattan Beachwear, LLC v. Hettrick Law, P.C., No. BC 497520 (Cal. Super. Ct., August 10, 2015), ECF No. 7-1, Ex. B. Although this judgment was entered against Hettrick’s estate, the settlement agreement contemplated that MBW would bring suit against Brit and Dickstein’s other insurers to enforce the judgment. 7 Settlement Agreement, ¶ 10, ECF No. 1-4, Ex. D (“Through the Assignment ... MB ... shall file an action against [Dickstein’s insurers] .... ”).

Brit filed this suit seeking declaratory judgment to protect it against MBW’s 8 claims. 9 MBW moves to dismiss the corn- *54 plaint for lack of personal jurisdiction, as per Federal Rule of Civil Procedure 12(b)(2). MBW further moves to dismiss for lack of subject matter jurisdiction, as per Rule 12(b)(1); improper venue, as per Rule 12(b)(3); failure to join a party, as per Rule 12(b)(7); and forum non conve-niens. See generally Mem. P. & A. Supp. Def.’s Mot. Dismiss (Def.’s Mot. Dismiss), ECF No. 7.

III. ANALYSIS

The Court begins, and ends, its analysis by considering MBW’s motion to dismiss for .lack of personal jurisdiction. Because the Court agrees with MBW that MBW is not subject to either specific jurisdiction on this claim or general jurisdiction in the District, the Court will grant the motion and dismiss the complaint in its entirety.

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235 F. Supp. 3d 48, 2017 WL 375607, 2017 U.S. Dist. LEXIS 10761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brit-uw-limited-v-manhattan-beachwear-llc-dcd-2017.