Cotton v. Geraci

CourtDistrict Court, S.D. California
DecidedSeptember 21, 2022
Docket3:18-cv-00325
StatusUnknown

This text of Cotton v. Geraci (Cotton v. Geraci) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cotton v. Geraci, (S.D. Cal. 2022).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 DARRYL COTTON, an individual, Case No.: 18cv325-JO-DEB

12 Plaintiff, ORDER GRANTING MOTIONS TO 13 v. DISMISS SECOND AMENDED COMPLAINT WITHOUT LEAVE 14 GINA M. AUSTIN, an individual; TO AMEND JESSICA MCELFRESH, an individual; 15 DAVID S. DEMIAN, an individual; and 16 DOES 1-50, inclusive, 17 Defendants. 18 19 20 21 Plaintiff Darryl Cotton, proceeding pro se, filed a Second Amended Complaint 22 alleging two causes of action under 42 U.S.C. §§ 1983 and 1985 against Defendants David 23 S. Demian, Gina M. Austin, and Jessica McElfresh. Dkt. 97 (SAC). Defendants filed 24 motions to dismiss the SAC for failure to state a claim. Dkts. 98, 99, 100. For the reasons 25 discussed below, the motions to dismiss are GRANTED. 26 27 28 1 I. BACKGROUND 2 The claims in this litigation stem from Plaintiff’s agreement to sell his property to a 3 businessman named Larry Geraci and his attempts to obtain a cannabis permit for this 4 property after its sale to Mr. Geraci fell through. After extensive litigation with Mr. Geraci 5 in state court over the breach of the sale agreement, Plaintiff now alleges in federal court 6 that Defendants Demian, Austin, and McElfresh, three private attorneys who were involved 7 in the state court litigation, violated his constitutional rights. 8 In late 2016, Plaintiff entered into an agreement to sell his commercial real property 9 to a businessman and tax consultant named Larry Geraci. SAC ¶¶ 31–34. Mr. Geraci 10 planned to develop a cannabis dispensary on this property. SAC ¶ 35. Without telling 11 Plaintiff, Mr. Geraci applied for a permit to run commercial cannabis operations on 12 Plaintiff’s property after completion of the sale. SAC ¶¶ 42–43. Because Mr. Geraci was 13 unable to legally own or apply for a permit due to his prior illegal commercial cannabis 14 operations, he submitted the application under the name of his assistant, Rebecca Berry. 15 SAC ¶¶ 19–21, 36, 43. Plaintiff alleges that Defendants McElfresh and Austin provided 16 legal assistance to Mr. Geraci on this cannabis permit application submitted under Ms. 17 Berry’s name. SAC ¶¶ 36, 165. Ultimately, the agreement between Plaintiff and Mr. 18 Geraci broke down and the sale of Plaintiff’s property to Mr. Geraci was never executed. 19 After the termination of the sale agreement with Mr. Geraci, Plaintiff sought to 20 transfer the cannabis permit application to his name instead. Plaintiff met with Firouzeh 21 Tirandazi, an employee of the city of San Diego, and requested that she transfer to him the 22 cannabis permit application initiated by Mr. Geraci. SAC ¶¶ 44–46. Ms. Tirandazi refused 23 on the grounds that only Ms. Berry, as the designated “Financially Responsible Party,” 24 could cancel or transfer the application. SAC ¶ 47. Plaintiff alleges that Ms. Tirandazi 25 knew the cannabis permit application was submitted under the wrong name, but she 26 “conspired with Geraci and his agents” to allow Mr. Geraci to illegally acquire the cannabis 27 permit and prevent Plaintiff from acquiring the permit instead. SAC ¶¶ 49–50. He 28 contends that Defendants Austin and McElfresh were a part of this conspiracy but does not 1 plead any additional facts regarding their role in the conspiracy aside from those set forth 2 above. See SAC ¶¶ 24–29, 36, 55. 3 The termination of the property sale agreement between Plaintiff and Mr. Geraci 4 also sparked litigation in state court. Mr. Geraci, represented by Defendant McElfresh, and 5 Plaintiff, represented by Defendant Demian, brought claims against each other for breach 6 of contract and fraud (“Cotton I”). SAC ¶ 53. Plaintiff alleges that Defendant Demian 7 sabotaged his litigation while representing him; Plaintiff eventually terminated this 8 attorney-client relationship because Mr. Demian failed to raise favorable arguments on his 9 behalf. SAC ¶¶ 57–60. 10 Plaintiff further alleges that, during the course of the Cotton I litigation, a non-party 11 individual named Mr. Magagna engaged in witness intimidation to the detriment of 12 Plaintiff’s case. According to Plaintiff, Corina Young agreed to testify at trial in Cotton I 13 that an individual named Mr. Bartell had discouraged her from “investing” in Plaintiff’s 14 litigation. SAC ¶ 127. In order to prevent her from testifying on Plaintiff’s behalf, Mr. 15 Magagna and Mr. Geraci threatened and “bribed” her, and then offered her a job in Palm 16 Springs at a dispensary that Defendant Austin formerly represented. SAC ¶¶ 140–42, 149. 17 As a result, Ms. Young cancelled her deposition, refused to testify at trial, and moved to 18 Palm Springs. SAC ¶¶ 139, 147–148, 180. Cotton I was tried before a jury and resulted 19 in a judgment in favor of Mr. Geraci. SAC ¶¶ 81–82. 20 On February 9, 2018, Plaintiff initiated the instant action against Mr. Geraci, Ms. 21 Berry, Ms. Austin, various law firms involved in Cotton I, and the City of San Diego.1 Dkt. 22 1. On May 13, 2020, Plaintiff filed a First Amended Complaint alleging claims under 42 23 U.S.C. § 1983 and adding as defendants Mr. Demian, Ms. McElfresh, and various state and 24 federal judges. Dkt. 18. On March 17 and October 22, 2021, the Court granted the 25 26 27 1 On February 28, 2018, the Court sua sponte stayed the action because Cotton I was still pending in state court. Dkt. 7. On January 15, 2020, the Court lifted the stay because the Cotton I litigation concluded 28 1 defendants’ motions to dismiss the First Amended Complaint and granted Plaintiff leave 2 to amend.2 Dkts. 71, 96. 3 On November 22, 2021, Plaintiff filed the operative SAC against Defendants Austin, 4 McElfresh, and Demian only. Dkt. 97. The SAC alleges that these Defendants conspired 5 with Ms. Tirandazi to (1) impede Plaintiff’s acquisition of a cannabis permit and (2) during 6 the Cotton I trial, cover up Mr. Geraci’s illegal acts to obtain the cannabis permit in 7 violation of 42 U.S.C. § 1983. Plaintiff further alleges that Defendants conspired with Mr. 8 Magagna and Mr. Geraci to prevent Ms. Young from testifying as a witness in the Cotton 9 I trial in violation of 42 U.S.C. § 1985. 10 II. LEGAL STANDARD 11 A motion to dismiss under Federal Rule 12(b)(6) tests the legal sufficiency of the 12 claims asserted in the complaint. Fed. R. Civ. P. 12(b)(6); Navarro v. Block, 250 F.3d 729, 13 731 (9th Cir. 2001). A court must accept all factual allegations pleaded in the complaint 14 as true and draw all reasonable inferences from them in favor of the nonmoving party. 15 Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337–38 (9th Cir. 1996). However, a court 16 need not accept conclusory allegations as true, but “examine whether conclusory 17 allegations follow from the description of facts as alleged by the plaintiff.” Holden v. 18 Hagopian, 978 F.2d 115, 1121 (9th Cir. 1992). “Threadbare recitals of the elements of a 19 cause of action, supported by mere conclusory statements, do not suffice.” Iqbal, 556 U.S. 20 at 678. To avoid a Rule 12(b)(6) dismissal, a complaint must plead “enough facts to state 21 a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662

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Bluebook (online)
Cotton v. Geraci, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cotton-v-geraci-casd-2022.