Deegan v. STRATEGIC AZIMUTH LLC

768 F. Supp. 2d 107, 78 Fed. R. Serv. 3d 1126, 2011 U.S. Dist. LEXIS 22439, 2011 WL 778407
CourtDistrict Court, District of Columbia
DecidedMarch 7, 2011
DocketCivil Action 09-1649 (RCL)
StatusPublished

This text of 768 F. Supp. 2d 107 (Deegan v. STRATEGIC AZIMUTH LLC) 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
Deegan v. STRATEGIC AZIMUTH LLC, 768 F. Supp. 2d 107, 78 Fed. R. Serv. 3d 1126, 2011 U.S. Dist. LEXIS 22439, 2011 WL 778407 (D.D.C. 2011).

Opinion

MEMORANDUM OPINION

ROYCE C. LAMBERTH, Chief Judge.

Before the Court are defendants’ Motion to Dismiss Plaintiffs Complaint, Nov. 11, 2009, ECF No. 2, and plaintiffs Motion for Ancillary Relief Under Fed.R.Civ.P. 64 (Replevin and Attachment of Reality Mobile Software and License), Jan. 12, 2010, ECF No. 7. Upon consideration of defendant’s Motion to Dismiss Plaintiffs Complaint, the opposition thereto, Nov. 20, 2009, ECF No. 4, the reply brief, Dec. 9, 2009, ECF No. 5, applicable law, and the record in this case, the Court will grant in part and deny in part the motion. Upon consideration of plaintiffs Motion for Ancillary Relief, the lack of opposition thereto, applicable law, and the record in this case, the Court will deny the motion.

I. BACKGROUND

In his complaint, plaintiff alleges the following facts. In January 2009, defendants Timothy Anthony and Sean McKenna and others formed a limited liability company called Strategic Azimuth, LLC. Compl. ¶ 2, Aug. 28, 2009, ECF No. 1. Strategic Azimuth’s goal would be to “pursu[e] a government contracting business focused on medical training for the military in Afghanistan or elsewhere for the federal government.” Id. In February 2009, plaintiff and defendants Anthony and McKenna discussed a Teaming Agreement between Strategic Azimuth and Cougar Consulting, LLC — a company of which plaintiff is 49% owner. Id. ¶ 4. Defendants Anthony and McKenna “agreed to act in accordance, with its terms,” but never signed the Teaming Agreement. Id. ¶ 5.

In April 2009, plaintiff told defendants Anthony and McKenna that he had investigated and begun the development of a system “designed by plaintiff, which would give the United States military or private contractors the capability to see in real time, and to track, from any location outside of Afghanistan, the movements of trucks and other vehicles inside Afghanistan which were deployed there by the U.S. military and its allies to move equipment, supplies and personnel through that country.” Id. ¶¶ 7, 10. “Plaintiff put together that system, in confidence, from pre-existing commercial, off-the-shelf, components and software, which he refashioned to create a new IT system that could compete successfully with existing systems designed for similar purposes.” Id. ¶ 10. The system came to be known as “SA-VAT,” an acronym for “Situational Awareness Video Asset Tracker.” Id. ¶ 11. Plaintiff designed a promotional brochure for SAVAT, the cover of which bore the words: “Strictly Confidential and Proprietary.” Id.

Plaintiff obtained a license from a company called Reality Mobile to use their software as part of the SAVAT system, thus giving plaintiff and Strategic Azimuth the right to use the software. Id. ¶ 12. Plaintiff invested approximately $9,500 of his own funds to pay for the license. Id.

On June 26, 2009, plaintiff and defendants Anthony and McKenna entered into a Joint Venture Agreement, in which they agreed to form a company called Astro Azimuth, LLC. Id. ¶ 6. Plaintiff and defendants Anthony and McKenna each owned 16.6% of the joint venture, and Astro Systems, Inc. — an expert in the business of systems integration — owned the remaining 50% of the joint venture. Id. ¶ 6, 13. The purpose of the joint venture was to develop and sell the SAVAT system. Id. ¶ 7. Plaintiff introduced the SAVAT system to *110 principals of a company called The Sandi Group, and through that company made plans to sell and distribute the SAVAT system in Saudi Arabia. Id. ¶ 14.

On July 28, 2009, the wives of defendants Anthony and McKenna formed a company called Symmetry Group, LLC. Id. ¶ 3. Plaintiff was not a member of this company. Id. ¶ 15. Plaintiffs license from Reality Mobile was placed in the name of the Symmetry Group. Id. “Defendants advised principals of Astro Systems and the Sandi Group that they.did not intend to proceed with the plaintiff as a part of the joint venture and that they would market the SAVAT system themselves through their own company.” Id.

Plaintiff alleges that defendants’ actions were “a breach of the fiduciary duties owed to the plaintiff by the defendants arising not only from the Joint Venture Agreement executed by the parties on June 26, 2009; but also from their relationship as joint venturers throughout their dealings with each other.” Id. ¶ 16. Plaintiff also alleges that defendants “have misappropriated the SAVAT system and the SAVAT product developed by the plaintiff and belonging to him as confidential and proprietary,” in violation of North Carolina law, N.C. Gen. Stat. §§ 66-152, et seq., District of Columbia law, D.C.Code §§ 36-401, et seq., and Maryland law, Md. Code Ann., Com. Law, §§ 11-1201, et seq. Id. ¶ 17.

II. LEGAL STANDARD

Federal Rule of Civil Procedure 12(b)(6) provides that a party may move to dismiss a complaint for “failure to state a claim upon which relief can be granted.” Federal Rule of Civil Procedure 8(a)(2) requires a complaint to contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” It must “give the defendant fair notice of what the claim is and the grounds upon which it rests.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007).

In a motion to dismiss, the court “must take all of the factual allegations in the complaint as true.” Ashcroft v. Iqbal, — U.S. -, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009). But “the tenet that a court must accept as true all of the allegations contained in a complaint is inapplicable to legal conclusions. Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id.

“To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face. A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged. The plausibility standard is not akin to a probability requirement, but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Id.

III. DISCUSSION

A. THE COURT WILL GRANT IN PART AND DENY IN PART DEFENDANTS’ MOTION TO DISMISS PLAINTIFF’S COMPLAINT.

1.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Tony Best v. Sharon Pratt Kelly, Mayor
39 F.3d 328 (D.C. Circuit, 1994)
Combs & Associates, Inc. v. Kennedy
555 S.E.2d 634 (Court of Appeals of North Carolina, 2001)
Stephenson v. Langdon
699 S.E.2d 140 (Court of Appeals of North Carolina, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
768 F. Supp. 2d 107, 78 Fed. R. Serv. 3d 1126, 2011 U.S. Dist. LEXIS 22439, 2011 WL 778407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deegan-v-strategic-azimuth-llc-dcd-2011.