Concilio Mision Cristiana Fuente de Agua Viva, Inc. v. Ortiz-Hernandez

CourtDistrict Court, D. Puerto Rico
DecidedJanuary 27, 2023
Docket3:22-cv-01206
StatusUnknown

This text of Concilio Mision Cristiana Fuente de Agua Viva, Inc. v. Ortiz-Hernandez (Concilio Mision Cristiana Fuente de Agua Viva, Inc. v. Ortiz-Hernandez) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Concilio Mision Cristiana Fuente de Agua Viva, Inc. v. Ortiz-Hernandez, (prd 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF PUERTO RICO

CONCILIO FUENTE DE AGUA VIVA, INC.

Plaintiff Civil No. 22-1206 (RAM) v. EDWIN LEMUEL ORTIZ-HERNÁNDEZ, MARIA DEL CARMEN ARROYO PANTOJAS, ET AL.

Defendants

OPINION AND ORDER RAÚL M. ARIAS-MARXUACH, United States District Judge. Pending before the Court is Co-defendant Edwin Lemuel Ortiz- Hernández’s (“Ortiz-Hernández”) Motion to Dismiss pursuant to Fed. R. Civ. P. 12(b)(2) and 12(b)(6). (Docket No. 11). Ortiz-Hernández alternatively requests a change of venue in the event that the Court denies his Motion to Dismiss. Id. at 7-8. Also pending before the Court is Plaintiff Concilio Misión Cristiana Fuente de Agua Viva, Inc.’s (“CMCFAV” or “Plaintiff”) motion to remand the case to state court (“Motion to Remand”). (Docket No. 13). Having reviewed the parties’ submissions in support of and opposition to each motion, the Court DENIES Ortiz-Hernández’s Motion to Dismiss and request for a change of venue and DENIES CMCFAV’s Motion to Remand. I. PROCEDURAL BACKGROUND On March 3, 2022, CMCFAV filed its Complaint with the Court of First Instance of the Commonwealth of Puerto Rico, San Juan

Superior Part, against Ortiz-Hernández, his wife Maria del Carmen Arroyo-Pantojas, and their conjugal partnership (collectively, “Defendants”). (Docket No. 7-1). The Complaint avers two claims against Defendants: (1) breach of contract; and (2) collection of monies. Id. CMCFAV alleges that on December 13, 1999, it “made a three-million-dollar written loan to the defendant Edwin Lemuel Ortiz Hernández, his wife María del Carmen Arroyo Pantojas, and their community property[,]” of which Defendants still owe $1.313 million. Id. On May 5, 2022, Ortiz-Hernández filed a Notice of Removal to this Court pursuant to 20 U.S.C. § 1332. (Docket No. 1). He asserts this Court may exercise diversity jurisdiction over Plaintiff’s

claims because Plaintiff seeks relief in excess of $75,000, Plaintiff is organized under the laws of Puerto Rico and has a Puerto Rico address, and Defendants are citizens of Florida. (Docket Nos. 1 and 7-1). On June 22, 2022, Ortiz-Hernández filed the present Motion to Dismiss pursuant to Fed. R. Civ. P. 12(b)(2) and 12(b)(6). (Docket No. 11). He argues that this Court cannot exercise personal jurisdiction over him and that there is no claim against him upon which relief can be granted, as he was not a party to the 1999 loan agreement in his personal capacity. Id. Alternatively, Ortiz- Hernández seeks a change of venue to the United States District Court for the Southern District of Florida. Id. at 7-8. On July 5, 2022, CMCFAV filed an opposition to Ortiz- Hernández’s Motion to Dismiss and a request to remand. (Docket No. 13). On July 20, 2022, Ortiz-Hernández filed an opposition to Plaintiff’s Motion to Remand and a reply with regard to his Motion to Dismiss. (Docket Nos. 15 and 16, respectively). On September 14, 2022, Plaintiff filed a sur-reply in relation to the Motion to Dismiss. (Docket No. 19). II. FACTUAL BACKGROUND For purposes of adjudicating these motions, the relevant facts alleged in Plaintiff’s Complaint are as follows. On December 13, 1999, CMCFAV allegedly issued a $3 million loan to Defendants. (Docket No. 7-1 ¶ 4). The alleged 1999 loan agreement includes a

forum selection clause designating the courts of San Juan, Puerto Rico to resolve any disputes that may arise from the agreement. Id. ¶ 6. CMCFAV also alleges that Defendants agreed to make monthly payments totaling $3,000 “until its final balance and without legal interest.” Id. ¶ 5. According to Plaintiff, “[o]n November 15, 2010, the litigating parties made a written modification to the loan.” Id. ¶ 7. Through this modification, Defendants purportedly “accepted a debt (or balance as of that date) of $1,700,000.00” and “agreed to make monthly payments of $8,500, without interest, up to its balance.” Id. Per the Complaint, in January 2013, with CMCFAV’s consent, “the defendant began paying the amount of $5,500.00 per month.” Id. ¶ 8. Plaintiff alleges that in July 2014, Defendants requested “another modification of $3,000.00 as a monthly payment” because they could no longer pay the $5,500 amount. Id. ¶ 9. Finally, the Complaint states that in October 2019, Defendants stopped making monthly payments and that they now owe CMCFAV $1.313 million. Id. ¶¶ 10, 12. III. ORTIZ-HERNÁNDEZ’S MOTION TO DISMISS The Court tackles Ortiz-Hernández’s Motion to Dismiss and request for a change of venue first, addressing each of his arguments in turn. A. Motion to Dismiss Pursuant to Fed R. Civ. P. 12(b)(2)

Ortiz-Hernández argues that this Court cannot exercise personal jurisdiction over him. He argues that the 1999 agreement is between CMCFAV and the company Genesis Broadcasting Network (“GBN”). (Docket No. 11 at 5-6). Although he concedes that he signed the agreement, Ortiz-Hernández asserts that he did so on behalf of GBN as its president, not in his personal capacity. Id. Thus, according to Ortiz-Hernández, that agreement does not allow for the exercise of personal jurisdiction over him as an individual in this case. Id. CMCFAV maintains that Defendants1 are in fact personally liable for $1.313 million pursuant to a 1999 loan agreement. Plaintiff provides a 2010 written loan modification in its opposition to Ortiz-Hernández’s Motion to Dismiss, which allegedly

proves that Defendants are personally liable to CMCFAV. (Docket No. 13). Plaintiff also claims that because Defendants agreed to a forum selection clause in the 1999 loan agreement that designates the courts of San Juan, Puerto Rico as an appropriate forum, Defendants waived any arguments against the exercise of personal jurisdiction over them in Puerto Rico. Id. 1. The Burden of Proof The plaintiff has the burden of proving that personal jurisdiction may be exercised over the defendant in the forum state. Kuan Chen v. U.S. Sports Acad., Inc., 956 F.3d 45, 54 (1st Cir. 2020) (citing Baskin-Robbins Franchising LLC v. Alpenrose

Dairy, Inc., 825 F.3d 28, 34 (1st Cir. 2016)). Courts have several ways of determining whether a plaintiff has met its burden. Id. at 51 (citing Baskin-Robbins, 825 F.3d at 34). The first method is the prima facie approach, whereby the Court determines whether the plaintiff has provided enough facts that, if true, support a finding of personal jurisdiction. Id. (citing Foster-Miller, Inc. v. Babcock & Wilcox Can., 46 F.3d 138,

1 CMCFAV refers to both Defendants in its motions. The Court notes, however, that Ortiz-Hernández’s Notice of Removal states, “No other Defendant has been properly served.” (Docket No. 1 ¶ 10). 145 (1st Cir. 1995)). The plaintiff may not rely on conclusory statements; he must “adduce evidence of specific facts.” Id. at 54 (internal quotation marks omitted) (quoting Foster-Miller, 46 F.3d at 145). The prima facie approach is typically used at the beginning of a case. Id. at 51 (citing Foster-Miller, 46 F.3d at 145). Courts may consider the pleadings and any other supplemental filings in the record. Id. at 52 (citing Baskin-Robbins, 825 F.3d at 34). The court “giv[es] credence to the plaintiff’s version of genuinely contested facts” but may also rely on undisputed facts put forth by the defendant. Id. (internal quotation marks omitted) (citing Baskin-Robbins, 825 F.3d at 34).

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Concilio Mision Cristiana Fuente de Agua Viva, Inc. v. Ortiz-Hernandez, Counsel Stack Legal Research, https://law.counselstack.com/opinion/concilio-mision-cristiana-fuente-de-agua-viva-inc-v-ortiz-hernandez-prd-2023.