Destiny Williams v. Jake Fruge, Jr., et al.

CourtDistrict Court, N.D. Georgia
DecidedMarch 31, 2026
Docket1:25-cv-01298
StatusUnknown

This text of Destiny Williams v. Jake Fruge, Jr., et al. (Destiny Williams v. Jake Fruge, Jr., et al.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Destiny Williams v. Jake Fruge, Jr., et al., (N.D. Ga. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION

DESTINY WILLIAMS, Plaintiff, Civil Action No. v. 1:25-cv-01298-SDG JAKE FRUGE, JR., et al., Defendants.

OPINION AND ORDER This case concerns the intersection of veil piercing and personal jurisdiction. Having failed to properly serve the limited liability company she named as a defendant,1 Plaintiff Destiny Williams finds herself litigating claims against Defendant Jake Fruge, Jr. only, and here lies her fundamental issue: The only contacts with Georgia that might give rise to the Court’s exercise of personal jurisdiction over this case are contacts that the company made with Georgia. Fruge did not have any contacts with Georgia in his personal capacity. As such, Williams asks the Court to pierce the limited liability veil and attribute company contacts to Fruge for purposes of exercising personal jurisdiction over and imposing liability on him. But because Williams has not put forward factual allegations demonstrating that Fruge treated the companies as his alter ego, the Court will not

1 Williams did not serve Champion E-Com, LLC within the 90 days specified under the Federal Rules, nor did she request waiver of service. As such, Champion E-Com is DISMISSED without prejudice. Fed. R. Civ. P. 4 (m). pierce the veil for jurisdictional purposes. Lacking sufficient contacts with Georgia himself, Fruge is not subject to the personal jurisdiction of this Court. Accordingly,

Fruge’s motion to dismiss [ECF 13] is GRANTED. I. Background The Court’s description of the facts is based on the well-pleaded allegations of the Amended Complaint. Bryant v. Avado Brands, Inc., 187 F.3d 1271, 1273 n.1

(11th Cir. 1999) (“At the motion to dismiss stage, all well-pleaded facts are accepted as true, and the reasonable inferences therefrom are construed in the light most favorable to the plaintiff.”).

On January 11, 2023, Williams attended a live webinar to learn about an online business opportunity presented by Champion E-Com.2 The webinar was led by Fruge who, at the time, introduced himself as the owner and CEO of Champion E-Com.3 Though Williams alleges Fruge “marketed and sold” his

business “throughout the United States, including Georgia,” she never alleges how she learned of Champion E-Com or Fruge.4 Nevertheless, Williams attended this webinar from her home in Fulton County, Georgia and listened to Fruge

2 ECF 19, ¶¶ 10–15. 3 Id. ¶¶ 12–13. 4 Id. ¶ 10. promote the business opportunity.5 Fruge pitched webinar attendees, like Williams, on a “hands-off” Amazon store of their own that would generate ever

increasing monthly sales, ranging from approximately $5,000 in the first month, to $20,000 by month three, to about $50,000 in monthly sales by month six.6 “All aspects” of the Amazon store setup and management would be handled by

Champion E-Com; all that was required of interested webinar attendees was a $45,000 investment to get their storefront and Champion E-Com’s services started.7 Based “largely” on Fruge’s representations during the webinar, Williams

decided to participate.8 On January 31, 2023, Williams signed up, and on February 1, 2023, she paid the $45,000 start-up fee.9 Williams signed an agreement with Champion E-com (the Agreement),10 whereby Champion E-Com promised to

5 Id. ¶ 12. 6 Id. ¶ 15. 7 Id. ¶¶ 13–14, ¶¶ 35–39. 8 Id. ¶ 21. 9 Id. ¶¶ 21–22. 10 Williams emphasizes how the Agreement was with “Champion Ecom [sic], LLP” (emphasis added) despite allegedly making her payment to Champion E-Com, LLC. Id. ¶ 23–30. Williams alleges that the LLC did not exist until April 14, 2023, when Champion E-Com, LLP was converted to Champion E-Com, LLC, a Texas limited liability company. Id. ¶ 31. That Champion E-Com was first an LLP before it was converted to an LLC has no bearing on the jurisdictional issue at the heart of this motion. manage the store for two years, handling matters such as initial setup, product research, uploading inventory, processing orders, handling returns, and analyzing

store metrics, among others.11 Williams alleges that of the multiple services Champion E-Com promised to do for customers like her, the only services that it actually carried out were registering her store as a Georgia LLC and opening an

Amazon Store account.12 Williams also experienced undelivered promises when she attempted to purchase inventory. Between May 3 and June 1, 2023, Williams charged her credit card three times to purchase “inventory”—she does not allege from where or for

what—for a total of $3,594.33.13 However, that inventory never showed up in her Amazon store, and Williams was unable to make a sale.14 Also around this time, Champion E-Com assigned its agreements with all

500 of its customers, including the Agreement it had with Williams, to a separate

11 Id. ¶ 35. See also ECF 5-1. The Court can consider documents attached to a motion to dismiss without converting the motion to one for summary judgment if the documents are central to the plaintiff’s claim and undisputed. Horsley v. Feldt, 304 F.3d 1125, 1134 (11th Cir. 2002); Hi-Tech Pharm., Inc. v. HBS Int’l Corp., 910 F.3d 1186, 1189 (11th Cir. 2018). Here, the Agreement is central to William’s claims and neither party disputes its authenticity. 12 ECF 19, ¶ 30. 13 Id. ¶ 58. 14 Id. ¶ 59. entity.15 On June 2, 2023, Champion E-Com employee Dallas Middleton emailed Williams to inform her that her Amazon storefront was being “transferred” to a

new company, Digital Guidance, because Champion E-Com assigned all responsibilities and obligations under the Agreement to Digital Guidance.16 Digital Guidance required Williams to begin paying management fees, which

Williams felt was contrary to the Agreement.17 Come September, things still were not looking good for Williams and her Amazon store. The “inventory” she purchased back in May and June had never shown up, and on September 13, 2023, Williams finally got Fruge on the phone to

talk about it, though she does not allege who initiated the call.18 Fruge told Williams that all her inventory had been “lost,” but he promised to reimburse her so long as she signed a release form.19 She signed the release form and received a

full refund the next day.20 On September 21, Williams paid Digital Guidance $5,000 for “brand approval,” which would allegedly allow her to sell brand-name products by companies like Nike and Amazon, but she never saw anything come

15 Id. ¶¶ 47–49, 81. 16 Id. ¶¶ 47–49. 17 Id. ¶ 53. 18 Id. ¶¶ 58–59. 19 Id. ¶¶ 60–63. 20 Id. ¶¶ 64–65. of this. Eventually, Williams disputed the $5,000 charge with her credit card company.21 Williams had still not made a single sale from her Amazon store.22

On January 2, 2024, Fruge called Williams, identifying himself as CEO of Champion E-Com, and more or less came clean.23 He admitted that his business plan had faced problems since the beginning and was unable to do what he had

promised on the webinar.24 Fruge allegedly told Williams that it would take “about 5 years” to get to the point where customers would actually make money from their investment in these Amazon storefronts.25 However, he disclaimed any ability to fix the investors’ issues because the contracts had been assigned to

Digital Guidance.26 Soon after, Fruge stopped communicating with Williams, and she did not hear from another Champion E-Com employee.27 Throughout this time, Williams never met Fruge in person. All interactions

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