Chi v. N. Riverfront Marina & Hotel Lllp

2022 NCBC 45
CourtNorth Carolina Business Court
DecidedAugust 16, 2022
Docket21-CVS-4611
StatusPublished

This text of 2022 NCBC 45 (Chi v. N. Riverfront Marina & Hotel Lllp) is published on Counsel Stack Legal Research, covering North Carolina Business Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chi v. N. Riverfront Marina & Hotel Lllp, 2022 NCBC 45 (N.C. Super. Ct. 2022).

Opinion

Chi v. N. Riverfront Marina & Hotel LLLP, 2022 NCBC 45.

STATE OF NORTH CAROLINA IN THE GENERAL COURT OF JUSTICE NEW HANOVER COUNTY SUPERIOR COURT DIVISION 21 CVS 4611 HE CHI; BIAN YIDE; CAO YONGJIE; CHEN MINZHI; CHENG TAO; HU KUN; LIANG JINGQUAN; LUO PENG; MA QIHONG; MA WEIGUO; SONG YING; WANG JIAN; WANG LING; WANG XUEHAI; XIE QIN; YE XIAFEN; and ZHANG YUNLONG,

Plaintiffs,

v.

NORTHERN RIVERFRONT MARINA AND HOTEL LLLP; NRMH ORDER AND OPINION ON MOTION HOLDINGS LLC; NRMH HOTEL TO DISMISS HOLDINGS LLC; USA INVESTCO LLC; PAC RIM VENTURE LTD.; RIVERFRONT HOLDINGS II LLC; WILMINGTON RIVERFRONT DEVELOPMENT LLC; GOLDEN MARINA LLC; CIRCLE MARINA CARWASH, INC.; CHARLES J. SCHONINGER; JOHN C. WANG; JIANGKAI WU; CHRISTOPHER ARDALAN; and GONGZHAN WU,

Defendants.

1. Plaintiffs in this case are seventeen Chinese citizens who invested in a

real estate development project in Wilmington, North Carolina called the Northern

Riverfront Marina and Hotel. After the investment failed to provide the allegedly

promised return, Plaintiffs filed this action against a host of defendants, including

Pac Rim Venture Ltd. (“PRV”) and Gongzhan Wu (“Gongzhan”; together with PRV,

the “Moving Defendants”). Moving Defendants responded with their Motion to

Dismiss Pursuant to North Carolina Rules of Civil Procedure (the “Rule(s)”) 12(b)(2)

and 12(b)(6) (the “Motion”). (ECF No. 40.) 2. The Court, having considered the Motion, the briefs supporting and

opposing the Motion, the parties’ arguments at a hearing held on 16 May 2022, and

other relevant matters of record, concludes for the reasons stated below that it lacks

personal jurisdiction over the Moving Defendants. The Court therefore GRANTS the

Moving Defendants’ Motion pursuant to Rule 12(b)(2) and dismisses the action

against them on that basis. The Court DENIES as moot the Motion with respect to

the remaining relief requested.

Ledolaw, by Michelle Ledo, and DGW Kramer, LLP, by Katherine Burghardt Kramer, for Plaintiffs Ma Qihong, Luo Peng, Liang Jingquan, Hu Kun, Cheng Tao, Chen Minzhi, Cao Yongjie, Bian Yide, He Chi, Zhang Yunlong, Ye Xiafen, Xie Qin, Wang Xuehai, Wang Ling, Wang Jian, Song Ying, and Ma Weiguo.

The Law Offices of Oliver & Cheek, PLLC, by George M. Oliver, for Defendants Wilmington Riverfront Development LLC, Riverfront Holdings II LLC, USA InvestCo LLC, NRMH Hotel Holdings LLC, NRMH Holdings LLC, Northern Riverfront Marina and Hotel, LLLP, Christopher Ardalan, John C. Wang, Charles J. Schoninger, Circle Marina Carwash, Inc., and Golden Marina LLC.

Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, LLP, by Clifton L. Brinson and Grace A. Gregson, and Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., by Kevin N. Ainsworth, for Defendants Pac Rim Venture Ltd. and Gongzhan Wu.

The Law Offices of G. Grady Richardson, Jr., P.C., by Jennifer L. Carpenter, for Defendant Jiangkai Wu. 1

I. FINDINGS OF FACT

3. The Court makes the following findings of fact solely for purposes of

ruling on the present Motion and without prejudice to the Court making contrary

1 Defendant Jiangkai Wu had not been served at the time of the hearing and therefore did

not appear. findings of fact at a later stage of this litigation on a more fully developed record. 2

See State ex rel. Stein v. E.I. Du Pont de Nemours and Co., 2021 NCBC LEXIS 75, at

*7 (N.C. Super. Ct. Sept. 9, 2021).

4. The Amended Complaint is verified; however, neither party submitted

affidavits or other evidence in support of their position. Therefore, the Court accepts

Plaintiffs’ allegations in the verified Amended Complaint as true and decides the

Motion based solely on those allegations. See, e.g., Lexington Hous. Auth. v. Gerald,

2019 NCBC LEXIS 65, at *6–7 (N.C. Super. Ct. Nov. 1, 2019) (“When neither party

submits evidence supporting or opposing a finding of personal jurisdiction, the Court

must determine ‘whether the [claims] contain[] allegations that, if taken as true, set

forth a sufficient basis for the court’s exercise of jurisdiction.’ ” (citing Parker v. Town

of Erwin, 243 N.C. App. 84, 96–97 (2015))); Herrera v. Charlotte Sch. of Law, LLC,

2018 NCBC LEXIS 15, at *10 (N.C. Super. Ct. Feb. 14, 2018) (taking allegations of

the complaint as true for purposes of deciding a Rule 12(b)(2) motion).

5. Plaintiffs He Chi, Bian Yide, Cao Yongjie, Chen Minzhi, Cheng Tao, Hu

Kun, Liang Jingquan, Luo Peng, Ma Qihong, Ma Weiguo, Song Ying, Wang Jian,

Wang Ling, Wang Xuehai, Xie Qin, Ye Xiafen, and Zhang Yunlong (collectively,

“Plaintiffs”) are all citizens of the People’s Republic of China (“China”). (First Am. &

Verified Compl. [hereinafter “Am. Compl.”] ¶ 1, ECF No. 26.)

2 Any determination later stated as a conclusion of law that should have been stated as a

finding of fact is incorporated in these Findings of Fact. See In re M.C., 374 N.C. 882, 890 (2020); Rutherford Elec. Mbrshp. Corp. v. Time Warner Entertainment-Advance/Newhouse P’ship, 240 N.C. App. 199, 215 (2015) (“Further, conclusions of law which are mischaracterized as findings of fact will be treated on review as conclusions of law.”). 6. Defendant Charles J. Schoninger (“Schoninger”) resides in New

Hanover County, North Carolina. (Am. Compl. ¶ 11.) Schoninger “owns, partially or

wholly, directly or indirectly, and manages” Defendants Northern Riverfront Marina

and Hotel LLLP (“NRMH”), NRMH Holdings LLC (“NRMH Holdings”), Riverfront

Holdings II LLC (“Riverfront Holdings”), NRMH Hotel Holdings LLC (“NRMH

Hotel”), USA InvestCo, LLC (“InvestCo”), and Wilmington Riverfront Development

LLC (“Wilmington Riverfront”), all of which are North Carolina entities. (Am. Compl.

¶¶ 2–6, 8, 11.)

7. Defendant John C. Wang (“Wang”) resides in Los Angeles County,

California, and “owns, partially or wholly, directly or indirectly, and manages”

Defendant Golden Marina LLC (“Golden Marina”) and Defendant Circle Marina

Carwash, Inc. (“Circle Marina Carwash”), both California entities. (Am. Compl.

¶¶ 9–10, 12.) Wang is also a member and director of InvestCo, along with Schoninger.

(Am. Compl. ¶ 12.)

8. Defendant Christopher Ardalan (“Ardalan”) resides in New Hanover

County, North Carolina, and along with Schoninger and Wang, is a director of

InvestCo. (Am. Compl. ¶ 14.)

9. Gongzhan 3 resides in New York County, New York. (Am. Compl. ¶ 15.)

Gongzhan is the President of PRV, a New York corporation with its principal place of

business in New York. (Am. Compl. ¶¶ 7, 15.) Since 2008, PRV has also maintained

an office in China. (Am. Compl. ¶ 7.)

3 Gongzhan Wu shares the same name as Jiangkai Wu. To distinguish them, the parties and the Court reference Gongzhan Wu as “Gongzhan” and Jiangkai Wu as “Wu.” 10. Defendant Jiangkai “Samson” Wu (“Wu”) resides in New York and “was

the representative of Defendant PRV in [China] and responsible for promotion and

dissemination of information about the Project in [China].” (Am. Compl. ¶ 13.)

11. The Employment-based Fifth Preference Visa Program, commonly

known as the EB-5 Program, was created by the Immigration Act of 1990 to

“stimulate the U.S. economy by giving immigrant investors the opportunity to

permanently live and work in the United States after they have invested in a new

commercial enterprise (‘NCE’).” (Am. Compl. ¶ 29.) In the case of an NCE located in

a “Targeted Employment Area,” 4 the required equity investment is $500,000. (Am.

Compl. ¶ 29.) An immigrant investor who satisfies the requirements of the EB-5

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