Divine Serenity Shop, Inc. v. Plant Identification, Inc.

District Court, M.D. Florida·Decided May 12, 2025·No. 8:24-cv-02081·Unknown

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

DIVINE SERENITY SHOP, INC., and MADE WITH LASER, LLC d/b/a Apartment Botanist,

Plaintiffs, v. Case No. 8:24-cv-2081-WFJ-LSG

PLANT IDENTIFICATION INC., d/b/a Palmstreet f/k/a Plantstory; CHEN LI; DANIELLE CICCOLI; KATHY BANEGAS d/b/a The Healing Gem, BREANNA PALACIOZ d/b/a Crystal Vibrations; and XIAOHONG HOLLY SONG d/b/a The Crystal Tabby,

Defendants. ______________________________________/

ORDER Before the Court is Defendants Plant Identification Inc. d/b/a Palmstreet, f/k/a Plantstory (“Palmstreet”), Chen Li, and Danielle Ciccoli’s motion to dismiss based on forum non conveniens and personal jurisdiction (Dkt. 18), Plaintiffs’ response (Dkt. 27), and the reply (Dkt. 31). After careful consideration of the allegations of the complaint and the submissions of the parties, the Court concludes the motion is due to be granted. BACKGROUND Plaintiffs and Defendants market and sell crystals, gems, jewelry, plants, and other healing and metaphysical products. Plaintiff Divine Serenity Shop, Inc. (“Divine Serenity”) is a Florida corporation and conducts business in Florida. Dkt. 1 ¶ 5. According to the complaint, Divine Serenity is “located in Hillsborough

County, Florida.” Dkt. 1 ¶ 5. Florida’s official business entity records show that Divine Serenity’s principal place of business is Miami, Florida, which is located in Dade County.1 Plaintiff Made with Laser, LLC d/b/a Apartment Botanist

(“Apartment Botanist”) is a New Jersey limited liability corporation.2 Dkt. 1 ¶ 6. Defendant Plant Identification Inc. d/b/a Palmstreet f/k/a Plantstory (“Palmstreet”) is a Delaware corporation “registered as a California corporation, located in California.”3 Dkt. 1 ¶ 7. Defendant Chen Li is domiciled in California

and is the “Founder, Owner, President and CEO” of Palmstreet. 4 Dkt. 1 ¶ 8. Defendant Danielle Ciccoli is a citizen of Ohio and works for Palmstreet. Dkt. 1 ¶ 9. Defendants Breanna Palacioz d/b/a Crystal Vibrations, Xiaohonh Holly Song

d/b/a The Crystal Tabby, and Kathy Banegas d/b/a The Healing Gem are all domiciled in California.5 Dkt. 1 ¶¶ 10–12. Despite none of the Defendants

1 See https://dos.fl.gov/sunbiz/ (last visited May 5, 2025). The “sunbiz” records also show that the “officer/director” as well as registered agent is Teresa Martinez, with the same corporate address in Miami. 2 See https://www.njportal.com/DOR/BusinessNameSearch/Search/BusinessName (last visited May 5, 2025). 3 See https://bizfileonline.sos.ca.gov/search/business (last visited May 5, 2025). Defendant Chen Li is listed as its agent on the California Secretary of State corporate statement of information. 4 Although Chen Li is named as a defendant, none of the counts seek relief against him. 5 Kathy Banegas operates her small business—The Healing Gem—as a registered fictitious business name in Los Angeles County, California. See https://apps.lavote.gov/#/onlinesearch (last visited May 5, 2025). residing or registered to do business in Florida, Plaintiffs allege that all six Defendants conduct business in Florida. Dkt. 1 ¶¶ 7–12.

Plaintiffs and Defendants sell on Palmstreet—a shopping (ecommerce) platform and application or “app”—that specializes in facilitating the sale of plants, crafts, and crystals. Dkt. 1 ¶¶ 7, 13. Palmstreet offers its shoppers a unique

shopping experience, with live sales where buyers can interact directly with sellers. Dkt. 1 ¶ 13. Live streaming presentations on Palmstreet are conducted in a warehouse located in Azusa, California. Dkt. 1 ¶ 18. The sellers using Palmstreet enjoy a “streamlined” experience with “low fees, flexible selling methods, and a

dedicated seller hub to grow business.” Dkt. 1 ¶ 13. Plaintiffs Apartment Botanist, formed by Alessia Resta, was allegedly “the first crystal seller” on Palmstreet starting in 2023. Dkt. 1 ¶¶ 19, 20, 35. Divine

Serenity, owned by Teresa Martinez, was allegedly “one of the first three crystal sellers” on Palmstreet beginning in 2024. Dkt. 1 ¶¶ 47, 48. Plaintiffs lost revenue in 2024, allegedly through the fault of the defendants. According to the complaint, Palmstreet, Ms. Ciccoli, and Mr. Li worked closely with Plaintiffs, gained

Plaintiff’s trust, and wrongfully disclosed Plaintiffs’ proprietary marketing strategies, customer acquisition plans, product sourcing methods, and other confidential business information with other sellers who also used Palmstreet. Dkt.

1 ¶¶ 19–84. Count I is directed solely against Palmstreet for breach of an implied contract. Dkt. 1 ¶¶ 130–136. Plaintiffs allege Palmstreet failed to safeguard

Plaintiffs’ proprietary business strategies, customer information, and confidential marketing plans by sharing same with Defendant “straw” sellers. Dkt 1 ¶ 133. According to the complaint, Palmstreet unlawfully permitted the wholesale straw

sellers, such as Kathy Banegas d/b/a The Healing Gem, to operate on the live shopping platform without proper adherence to Palmstreet rules, which in turn allowed unfair competition with Apartment Botanist and Divine Serenity.6 Dkt 1 ¶ 133. Plaintiffs’ business growth was undercut, and revenue suffered in total about

$750,000 in 2024. Based on these same allegations, Count VI claims that Palmstreet and its Business Development Director, Danielle Ciccoli, breached fiduciary duties owed to Plaintiffs as their trusted business partners and advisors.

Dkt. 1 ¶¶ 193–198. Other claims against these three Defendants as well as the others include tortious interference, defamation, civil conspiracy, unjust enrichment, and violations of the Florida Deceptive and Unfair Trade Practices Act (“FDUTPA”),

together with violations of the Lanham Act, 15 U.S.C. § 1125(A) and the Sherman

6 The platform community guidelines “prevent unfair competition between wholesale crystal sellers and resale sellers” and “ensure that smaller resale sellers can compete fairly without being overshadowed by larger wholesale operations.” Dkt. 1 ¶¶ 14, 15; Dkt. 1-2 at 1–12. Antitrust Act, 15 U.S.C. § 1 et seq. Count II alleges that Palmstreet and the straw sellers tortiously interfered with business relations by using confidential

information provided by Palmstreet to replicate Plaintiffs’ business models, offer competing products at lower prices, disparage Plaintiffs’ products, and falsely claim that Plaintiffs’ products were overpriced and inferior, as well as soliciting

Plaintiffs’ customers by targeted marketing and promotions, and misappropriating Plaintiffs’ business strategies. Dkt. 1 ¶ 144. Count III alleges that all Defendants made false and defamatory statements about the quality, pricing, and authenticity of the products sold by Plaintiffs on the

Palmstreet live shopping platform. Dkt. 1 ¶ 153. Count IV alleges that all Defendants conspired to coordinate a campaign to defame Plaintiffs by spreading false and misleading statements about the quality and pricing of Plaintiffs’ products

on social media and Palmstreet. Dkt. 1 ¶ 170. Count V alleges violations of Section 43(a) of the Lanham Act by engaging in false designation of origin by selling products deliberately designed to mimic branding, intending to create consumer confusion, and causing harm to Plaintiffs’

businesses through unfair competition. Dkt. 1 ¶¶ 178, 180, 181. Count VII asserts that all Defendants combined or conspired to restrain trade in the market for crystals and spiritual products sold on Palmstreet in violation of the Sherman

Antitrust Act. Dkt. 1 ¶¶ 200–202. Count VIII claims unjust enrichment and seeks restitution in the amount of lost revenue. Dkt. 1 ¶¶ 212–218.

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