Cummings v. Western Trial Lawyers Ass'n

133 F. Supp. 2d 1144, 2001 U.S. Dist. LEXIS 7932, 2001 WL 252047
CourtDistrict Court, D. Arizona
DecidedMarch 12, 2001
DocketCIV 00-0086-PHX-ROS
StatusPublished
Cited by10 cases

This text of 133 F. Supp. 2d 1144 (Cummings v. Western Trial Lawyers Ass'n) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cummings v. Western Trial Lawyers Ass'n, 133 F. Supp. 2d 1144, 2001 U.S. Dist. LEXIS 7932, 2001 WL 252047 (D. Ariz. 2001).

Opinion

ORDER

SILVER, District Judge.

Defendants Western Trial Lawyers Association (“WTLA”), Doug Bragg (“Bragg”), and Susan Guinn (“Guinn”) each filed a Motion to Dismiss Plaintiffs Complaint, setting forth the following three arguments: (1) that the Court lacks subject matter jurisdiction; (2) that the venue is improper; and (3) that Plaintiff failed to sufficiently serve process on them. 1 In addition, Defendants Guinn and Bragg allege lack of personal jurisdiction. Defendants’ Motions to Dismiss are currently pending before the Court. Having analyzed the written and oral arguments set forth by all the parties to this lawsuit, the Court will partially grant and partially deny Guinn’s Motion to Dismiss and will deny the WTLA and Bragg’s Motions to Dismiss.

Background

From 1991 until March 31, 1999, Plaintiff was the full-time Executive Director of the WTLA. (Cummings Aff. ¶ 1.) The WTLA paid Plaintiff through May 31, 1999. (Comply 6.) During this period, Plaintiff maintained an office in Phoenix, Arizona, and all mail directed to the WTLA through her was routed to a post *1148 office in Phoenix. (Cummings Aff. ¶ 2-3.) As Executive Director of the WTLA, Plaintiff was responsible for a variety of duties, including organizing WTLA legal seminars, memberships, and marketing for the association. (CompU 7.) Due to the poor attendance at WTLA seminars, the WTLA’s financial status grew worse from 1997 through 1999. (Id. ¶¶ 11, 12, 26, 27.)

Bragg became President of the WTLA in July 1998. (Id. ¶ 15.) Plaintiff alleges that from the beginning she and Bragg were at odds over the operations of the WTLA. (Id. ¶¶ 15-33.) Plaintiff alleges that Bragg repeatedly verbally attacked her in front of several WTLA members and other attorneys. For example, Plaintiff alleges that prior to an August 1998 seminar in Denver, Bragg took control of the WTLA treasury by removing all WTLA funds from its Arizona bank account and depositing the funds in Bragg’s law firm’s trust account in Colorado. (Id. ¶ 21.)

In January 1999, with the assistance of several board members, Plaintiff arranged a meeting to discuss WTLA’s financial situation. (Id. ¶ 28.) This prompted Bragg to fax a letter to fifty-two members of the WTLA board, blaming the WTLA’s financial problems on Plaintiff and raising serious allegations about Plaintiffs conduct. (Id. ¶ 32.) In the same letter, Bragg canceled Plaintiffs meeting, and resigned as President of WTLA. (Id.)

On or about February 26, 1999, Guinn informed Plaintiff by letter that the WTLA could no longer afford a full-time Executive Director, but offered Plaintiff a part-time position beginning on June 1, 1999. (Id. ¶ 36.) On or about March 5, 1999, Plaintiff received a second letter from Guinn withdrawing the offer of part-time employment. (Id. ¶ 37.)

On January 18, 2000, Plaintiff filed her Complaint setting forth the following allegations arising from her employment with the WTLA.: (1) defamation against Bragg; (2) breach of contract against the WTLA; (3) breach of duty of good faith and fair dealing against the WTLA; (4) intentional infliction of emotional distress against Bragg, Guinn, and the WTLA; (5) intentional interference with a business relationship against Bragg and Guinn; (6) false light against Bragg and Guinn; and (7) quantum meruit against the WTLA.

On June 1, 2000, Guinn filed a Motion to Dismiss. [Doe. # 8.] On June 6, 2000, the WTLA filed a Motion to Dismiss. [Doc. # 14.] On August 1, 2000, Bragg filed a motion to Dismiss. [Doc. # 21.] These three motions are currently pending before the Court.

Discussion

1. Lack of Subject Matter Jurisdiction

In her Complaint, Plaintiff alleges diversity jurisdiction pursuant to 28 U.S.C. § 1332 and supplemental jurisdiction pursuant to 28 U.S.C. § 1367. Plaintiff asserts that she was a resident of Arizona and that the WTLA maintained a principal place of business in Arizona. (CompLIffl 1-2.) Thus, Plaintiffs Complaint fails to allege complete diversity between the parties. See 28 U.S.C. § 1332; Caterpillar, Inc. v. Lewis, 519 U.S. 61, 68, 117 S.Ct. 467, 136 L.Ed.2d 437 (1996). Because Plaintiffs Complaint relies on diversity jurisdiction, Defendants argue that the Court should dismiss Plaintiffs action for lack of subject matter jurisdiction.

In response to the Motions to Dismiss, Plaintiff established that the WTLA is a nonprofit corporation incorporated under the laws of the state of Nevada and that the WTLA did not maintain its principal place of business in Arizona. (Earl Aff. ¶ 2; PI. Resp. to Mot. to Dismiss at 3.) At the hearing on the motions, Defendants conceded that Arizona was not the WTLA’s principal place of business at the time Plaintiff commenced this lawsuit. See Lew v. Moss, 797 F.2d 747, 750 (9th Cir.1986).

“Defective allegations of jurisdiction may be amended, upon terms, in the trial or appellate courts.” 28 U.S.C. § 1653. The burden of establishing diver *1149 sity jurisdiction lies with the party invoking the jurisdiction in a federal court. Littlefield v. Continental Cas. Co., 475 F.Supp. 887, 889 (C.D.Cal.1979). “In order to avoid dismissal for lack of subject matter jurisdiction, the plaintiff must enlarge the record to show the citizenship of each party as of the date that the complaint was filed.” Blue Ridge Ins. Co. v. Stanewich, 142 F.3d 1145, 1148 (9th Cir.1998) (quoting Dausch v. Rykse, 9 F.3d 1244, 1245 (7th Cir.1993)). Because Defendants no longer dispute that complete diversity existed at the time Plaintiff commenced this lawsuit, the Court, pursuant to Fed.R.Civ.P. 15(a), will allow Plaintiff to file an Amended Complaint based upon a stipulation from Defendants establishing that the WTLA’s state of incorporation and its principal place of business are in states other than Arizona. The Court will allow the Plaintiff fifteen days from the date of this Order to Amend the Complaint. If Plaintiff fails to comply with the Court’s Order, the Court may dismiss this action. See Ferdik v. Bonzelet, 963 F.2d 1258, 1260 (9th Cir.1992), cert. denied, 506 U.S. 915, 113 S.Ct. 321, 121 L.Ed.2d 242 (1992).

II. Improper Yenue

Title 28 U.S.C. § 1391

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Bluebook (online)
133 F. Supp. 2d 1144, 2001 U.S. Dist. LEXIS 7932, 2001 WL 252047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cummings-v-western-trial-lawyers-assn-azd-2001.