Dulcich, Inc. v. Mayer Brown, LLP

954 F. Supp. 2d 1129, 2013 WL 3148434, 2013 U.S. Dist. LEXIS 85880
CourtDistrict Court, D. Oregon
DecidedJune 18, 2013
DocketNo. 3:13-cv-00003-ST
StatusPublished

This text of 954 F. Supp. 2d 1129 (Dulcich, Inc. v. Mayer Brown, LLP) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dulcich, Inc. v. Mayer Brown, LLP, 954 F. Supp. 2d 1129, 2013 WL 3148434, 2013 U.S. Dist. LEXIS 85880 (D. Or. 2013).

Opinion

ORDER

BROWN, District Judge.

Magistrate Judge Janice M. Stewart issued Findings and Recommendation (# 45) on March 19, 2013, in which she recommends the Court grant Plaintiffs’ Motion (#4) to Remand and strike Defendants’ Motion (# 22) to Dismiss and Motion (# 6) to Change or Transfer Venue. Defendant filed timely Objections (# 47) to the Findings and Recommendation. The matter is now before this Court pursuant to 28 U.S.C. § 636(b)(1) and Federal Rule of Civil Procedure 72(b).

When any party objects to any portion of the Magistrate Judge’s Findings and Recommendation, the district court must make a de novo determination of that portion of the Magistrate Judge’s report. 28 U.S.C. § 636(b)(1). See also Dawson v. Marshall, 561 F.3d 930, 932 (9th Cir.2009); United States v. Reynas-Tapia, 328 F.3d 1114, 1121 (9th Cir.2003) (en banc).

In its Objections Defendant argues the Magistrate Judge’s conclusion in the Findings and Recommendation was erroneous because the Magistrate Judge misinterpreted the basis for Defendant’s removal to be the real-party-in-interest doctrine as opposed to fraudulent joinder. The Court does not find this argument compelling in light of the fact that the Magistrate Judge addressed the issue of fraudulent joinder in the context of timeliness of removal, and, in any event, Defendant’s argument does not change the analysis or outcome as to the timeliness of Defendant’s removal action. Defendant otherwise merely reiterates the arguments contained in its Surreply (# 35) in Opposition to Plaintiffs’ Motion to Remand. Thus, this Court has carefully considered Defendant’s Objections and concludes they do not provide a basis to modify the Findings and Recommendation.

The Court also has reviewed the pertinent portions of the record de novo and does not find any error in the Magistrate Judge’s Findings and Recommendation.

CONCLUSION

The Court ADOPTS Magistrate Judge Stewart’s Findings and Recommendation (#45) and, accordingly, GRANTS Plaintiffs’ Motion (# 4) to Remand and STRIKES as moot Defendant’s Motion (# 22) to Dismiss and Motion (# 6) to Change or Transfer Venue.

IT IS SO ORDERED.

FINDINGS AND RECOMMENDATIONS

STEWART, United States Magistrate Judge:

INTRODUCTION

This case involves a $5 million attorney fee brawl currently being litigated both in the District of Columbia and in Oregon. The 54 plaintiffs are (1) Dulcich, Inc. dba Pacific Seafood Group (“PSG”), an Oregon corporation, (2) PSG’s sole owner, Frank Dulcich (“Dulcich”), a resident of the state of Washington,1 and (3) 52 corpo[1132]*1132rate entities related to Pacific which are either corporations or limited liability companies of the states of Washington, Oregon, California, Delaware and Nevada.

All plaintiffs were represented in an antitrust case by defendant Mayer Brown, LLP (“Mayer Brown”), an international law firm operating as an Illinois limited liability partnership out of its office in Washington, DC. Mayer Brown’s partners live and work in several locations, including Washington, DC, and the states of New York, Illinois, California, Texas, and North Carolina. In addition, two Mayer Brown partners are United States citizens who reside outside of the United States. Bomchill Deck, ¶ 3.

Plaintiffs initially filed this case in Clackamas County Circuit Court for the State of Oregon as Case No. CV 12020221. Mayer Brown then filed a Notice of Removal to this court (docket # 1). Plaintiffs have now filed a Motion to Remand (docket # 4), and defendant has filed a Motion to Change or Transfer Venue (docket # 6) and a Motion to Dismiss for Lack of Subject Matter Jurisdiction (docket # 22). For the reasons that follow, this case should be remanded to state court, and all other pending motions in this case should be stricken as moot.

FACTUAL BACKGROUND

On June 22, 2010, Lloyd D. Whaley and Todd L. Whaley filed in this court a class action complaint under the Sherman Act against all the plaintiffs in this case, alleging that they had engaged in anticompetitive strategies to achieve and maintain a monopoly over four West Coast seafood markets, namely those of Dungeness crab, groundfish, Pacific whiting processed onshore, and Pacific coldwater shrimp. Whaley, et. al. v. Pacific Seafood Group, et al, Civil No. 1:10-cv-03057-PA.2 A few months later, on September 10, 2010, PSG’s general counsel executed, on behalf of PSG, an engagement letter with Mayer Brown. Notice of Removal, (docket # 1-2, pp. 12-14). No other individual or representative of any of the related entities signed this engagement letter. Id, p. 14. In that letter, Mayer Brown agreed to:

provide [PSG] and its related companies with antitrust advice and to defend them in connection with all civil antitrust litigation filed against them alleging antitrust violations in the seafood industry, as well as represent PSG in a separate antitrust investigation being conducted by the Oregon Attorney General also concerning the seafood industry.

Following execution of the engagement letter, Mayer Brown undertook defense of PSG and the related entities. Ultimately, however, the parties’ relationship soured and, on February 7, 2012, plaintiffs filed this case in Clackamas County Circuit Court for the State of Oregon, seeking declaratory relief that the fees charged by Mayer Brown were excessive. The initial complaint was not served on Mayer Brown. Plaintiffs filed a First Amended Complaint on or about June 20, 2012. Notice of Removal, ¶ 2.

This case is essentially the mirror image of a breach of contract case filed by Mayer Brown against PSG in the District of Columbia Superior Court. Mayer Brown [1133]*1133first became aware of the Oregon lawsuit when it received a copy of the First Amended Complaint and summons on June 22, 2012. Id. Within a month, on July 18, 2012, Mayer Brown filed a complaint in the Superior Court in the District of Columbia, alleging breach of contract. Mayer Brown LLP v. Dulcich, Inc. d/b/a Pacific Seafood Group, Superior Court of the District of Columbia, Civil No. 0005880-12. The Washington, DC, case named only PSG as a defendant, and PSG removed that case to the United States District Court for the District of Columbia. Mayer Brown LLP v. Dulcich, Inc. d/b/a/ Pacific Seafood Group, United States District Court for the District of Columbia, Civil No. 12-1818(RWR).

At all relevant times, Mayer Brown knew that neither Dulcich nor any of the 52 related entities named as plaintiffs in this case were parties to its written agreement with PSG. Mayer Brown also knew, based upon the Answer filed in the Whaley litigation, that at least one of the related entities was incorporated in the state of California where several of Mayer Brown’s partners reside. Notice of Removal, ¶ 3.

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

Related

Geographic Expeditions, Inc. v. Estate of Lhotka
599 F.3d 1102 (Ninth Circuit, 2010)
State of Louisiana v. Union Oil Co of CA
458 F.3d 364 (Fifth Circuit, 2006)
Wormley v. Wormley
21 U.S. 421 (Supreme Court, 1823)
Salem Trust Co. v. Manufacturers' Finance Co.
264 U.S. 182 (Supreme Court, 1924)
Lumbermen's Mutual Casualty Co. v. Elbert
348 U.S. 48 (Supreme Court, 1954)
Owen Equipment & Erection Co. v. Kroger
437 U.S. 365 (Supreme Court, 1978)
Navarro Savings Assn. v. Lee
446 U.S. 458 (Supreme Court, 1980)
Kokkonen v. Guardian Life Insurance Co. of America
511 U.S. 375 (Supreme Court, 1994)
Syngenta Crop Protection, Inc. v. Henson
537 U.S. 28 (Supreme Court, 2002)
Bessie Roth v. Sammy Davis, Jr.
231 F.2d 681 (Ninth Circuit, 1956)
Leo Mantin v. Broadcast Music, Inc., a Corporation
244 F.2d 204 (Ninth Circuit, 1957)
Washington v. Chimei Innolux Corp.
659 F.3d 842 (Ninth Circuit, 2011)
Lg Display Company v. Lisa Madigan
665 F.3d 768 (Seventh Circuit, 2011)
Nevada v. Bank of America Corp.
672 F.3d 661 (Ninth Circuit, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
954 F. Supp. 2d 1129, 2013 WL 3148434, 2013 U.S. Dist. LEXIS 85880, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dulcich-inc-v-mayer-brown-llp-ord-2013.