Brunson v. Kalil & Co., Inc.

404 F. Supp. 2d 221, 2005 U.S. Dist. LEXIS 40207, 2005 WL 3211733
CourtDistrict Court, District of Columbia
DecidedNovember 18, 2005
DocketCiv.A. 04-1828(CKK)
StatusPublished
Cited by35 cases

This text of 404 F. Supp. 2d 221 (Brunson v. Kalil & Co., Inc.) 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
Brunson v. Kalil & Co., Inc., 404 F. Supp. 2d 221, 2005 U.S. Dist. LEXIS 40207, 2005 WL 3211733 (D.D.C. 2005).

Opinion

MEMORANDUM OPINION

KOLLAR-KOTELLY, District Judge.

Plaintiff Dorothy Brunson brings this action against Defendants Kalil & Company, Inc. (“Kalil”) and Brunson Communications, Inc. (“BCI”). Plaintiff is seeking a declaratory judgment from this Court that neither Plaintiff nor BCI owe Kalil any funds under a Brokerage Agreement dated November 6, 2003, and signed by Plaintiff on November 21, 2003. Defendant Kalil moves to dismiss Plaintiffs Complaint (1) for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2) and (2) because Plaintiff is the improper plaintiff before this Court, having misused the Declaratory Judgment Act. Based on the reasoning set forth below, this Court shall grant Defendant Kalil’s motion to dismiss for lack of personal jurisdiction.

I: BACKGROUND 1

Plaintiff is an individual residing in Maryland, who until October 1, 2004, was the sole shareholder of BCI. Am. Compl. ¶¶ 1, 5; Pl.’s Opp’n to Def.’s Mot. to Dismiss (“Pl.’s Opp’n”) at 1; PL’s Opp’n, Ex. 1 (Decl. of Dorothy E. Brunson (“Brunson Decl.”)), ¶¶ 1, 2. At times relevant to this suit, BCI was a New York corporation that operated the television station WGTW and the digital television station WGTW-DT (collectively “the Station”). Am. Compl. ¶ 3; Brunson Decl. ¶ 3. The Federal Communications Commission (“FCC”) had licensed the Station to the community, of Burlington, New Jersey. Am. Compl. ¶ 3. The Station’s studios and operating equipment were located in Philadelphia, Pennsylvania. Am. Compl. ¶ 3; Brunson Deck ¶ 3.

In 2002 and 2003 several offers had been made to BCI to buy the Station. Am. Compl. ¶ 6. In 2003, Kalil, an Arizona corporation with its principal place of business in Tucson, Arizona, became aware that BCI was considering a sale of the Station and sought an exclusive brokerage agreement with BCI regarding the sale of the Station. Am. Compl. ¶2, 7; Def.’s Mem. of P. & A. in Supp. of Def.’s Mot. to Dismiss (“Def.’s Mem.”), Ex. 1 (“Frank Kalil Aff.”), ¶ 2. On November 21, 2003, Plaintiff, in her capacity as BCI President, *224 signed the Brokerage Agreement dated November 6, 2003, making Kalil BCI’s exclusive broker in the search for a qualified and satisfactory buyer for the Station. Frank Kalil Aff, Ex. A (Brokerage Agreement). By its explicit terms, the Brokerage Agreement expired on January 21, 2004, “except as to (i) any agreement with a prospective buyer introduced to you by us that is being negotiated or is pending closing, or (ii) any one whom we introduce to you, and with whom you enter into an agreement on or before June 30, 2004.” Id. At this same time, Ms. Brunson retained counsel located in the District of Columbia to represent BCI “in all matters related to the Brokerage Agreement and sale of BCI.” Brunson Decl. ¶ 5.

Over the course of its search for a buyer, Kalil provided Plaintiff with regular updates of its activities. Brunson Decl. ¶ 7. One such update, dated April 16, 2004, listed Fox Television Stations, Inc., as one of the prospective clients listed. Pl.’s Opp’n, Ex. 2 (Apr. 16, 2004 Update) at‘6. Kalil had contacted Fox at its offices in Washington D.C. Id. The April 16, 2004 Update lists only one contact with Fox. Id. The April 16, 2004 Update also listed Trinity Christian Center of Santa, Ana, Inc. (“Trinity”) as a prospective client. Id. at 7. Trinity is a non-profit church corporation organized under the laws of California. Am. Compl. ¶ 5. In contrast with Fox, the contacts listed with Trinity were many, and the notes extensive; culminating on April 16, 2004, with Kalil sending Trinity a revised Letter of Intent. Id. However, as of June 30, 2004, Kalil had not found an appropriate buyer for the Station. Am. Compl. ¶ 13. On or about August 2, 2004, Plaintiff entered into a stock purchase agreement (“Purchase Agreement”), dated July 30, 2004, with Trinity. Am. Compl. ¶ 14. The Purchase Agreement closing occurred on October 1, 2004, in Washington, D.C., in accordance with a provision in the Purchase Agreement calling for the closing to occur at BCI’s office in Philadelphia “or at such other time or place as [Trinity] and [Plaintiff] shall mutually agree in writing.” Am. Compl. ¶ 15; Def.’s Mem., Ex. 2, § 2 (Purchase Agreement). Kalil was not a party to the Purchase Agreement and was not invited to attend the closing. Frank Kalil Aff., ¶ 16; Def.’s Mem., Ex. 2 (Purchase Agreement); Pl.’s Opp’n, Ex. 3 (Decl. of Barry Wood (“Wood Decl. I”)), ¶ 14.

Prior to the closing, Kelly Callan, a Kalil employee, phoned Barry Wood, BCI’s long-time attorney who handled the negotiation and finalization of the Purchase Agreement. Wood Decl. I ¶¶ 4, 9, 11. Mr. Wood is the president of Wood, Maine & Brown, Chartered, a District of Columbia professional corporation with its main office located at 1827 Jefferson Place, NW, Washington, D.C. Wood Decl. I ¶ 1. Pursuant to their conversation in which Mr. Wood informed Mr. Callan that he had no invoice on which to determine what Kalil might be owed as a result of the Purchase Agreement, Mr. Callan faxed Mr. Wood an invoice for $960,000. Wood Decl. I ¶¶ 11, 12. Mr. Wood subsequently requested from Mr. Callan the document that had formed the basis for the invoice. Wood Decl. I ¶ 13. In response, on September 29, 2004, Mr. Callan faxed Mr. Wood the Brokerage Agreement. Wood Decl. I ¶ 13. A number of communications between Mr. Wood, Frank Kalil, President of Kalil, and Tim Ryan, Kalil’s attorney, followed. Mr. Ryan’s office was located in Pittsburgh, Pennsylvania. Def.’s Reply, Ex. 4 (Decl. of Timothy P. Ryan (“Ryan Deck”)), ¶ 1. Most importantly:

• October 4, 2004 — Mr. Kalil faxed a letter to the Station for the Plaintiff advancing a settlement offer that was to expire on October 5, 2004 at 5:00 p.m. Wood Deck I ¶ 20.
*225 • October 5, 2005 — Mr. Ryan faxed Mr. Wood a letter indicating Kalil’s intent to sue “[u]nless the full amount owed by Brunson is immediately paid over to Kailil.” Wood Decl. I ¶ 21; Ryan Decl. ¶ 5; Ryan Decl., Ex. A (Letter from Mr. Ryan to Mr. Wood).
• October 6, 2004 — Mr. Ryan called Mr. Wood in order to discuss ' the letter he had sent the previous day and to discuss the possibility of resolving the matter without resorting to litigation. Mr. Wood did not take the call. Ryan Decl. ¶ 6. Later that day, at 10:30 p.m. Mr. Wood returned Mr. Ryan’s phone call and left a message indicating that Plaintiff and BCI were interested in settling the matter fairly and reasonably. Ryan Decl. ¶ 7; Ryan Decl., Ex. B (transcribed message).
• October 7, 2004 — Mr. Ryan faxed Mr. Wood a copy of the letter Mr. Ryan had sent to Trinity’s attorney demanding payment of Kalil’s commission. Mr. Wood attempted to contact Mr. Ryan twice to discuss the October 7, 2004 letter, but Mr. Ryan did not take the calls. Wood Decl. I ¶ 22.
• October 13, 2004 — Mr. Wood left a message for Mr. Ryan stating that the next day a letter would be sent including Plaintiffs and BCI’s position. Ryan Decl. ¶ 9.
• October 15, 2004^ — Mr. Wood faxed the settlement letter to Mr. Ryan. The letter requested an opportunity for Mr. Wood, Mr.

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Bluebook (online)
404 F. Supp. 2d 221, 2005 U.S. Dist. LEXIS 40207, 2005 WL 3211733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brunson-v-kalil-co-inc-dcd-2005.