Edwards v. Juan Martinez, Inc.

District Court, D. Nevada·Decided December 10, 2020·No. 2:20-cv-00570·Unknown

Opinion

Paul D.S. Edwards, Case No.: 2:20-cv-00570-JAD-EJY

Plaintiff Order Dismissing Claims and Parties, v. Granting in Part Motions for a More Definite Statement and to Strike, and Juan Martinez, Inc., et al., Denying Plaintiff’s Motion to Compel

Defendants [ECF Nos. 5, 9, 11, 12, 74]

Plaintiff Paul Edwards sues Cole Information Services, Inc. and RedX, LLC; their respective CEOs, Jim Eggleston and Mark Leck; and a handful of Century 21 realtors for violating the Telephone Consumer Protection Act (TCPA) and various Nevada laws after Sergio Tamez telephoned Edwards one morning.1 RedX and Cole Information separately move to dismiss Edwards’s complaint, arguing that this court lacks personal jurisdiction over Cole Information, Eggleston, and Leck, and that Edwards’s claims are insufficiently pled.2 RedX also moves for a more definite statement and to strike portions of Edwards’s complaint.3 Edwards seeks to compel Eggleston and Cole Information to supply discovery.4 Because Edwards fails to demonstrate that this court can exercise general or specific jurisdiction over nonresidents Eggleston, Leck, and Cole Information, I grant their motions to dismiss. Dismissing the claims against those defendants renders Edwards’s motion to compel moot, so I deny it. Next, I hold that even if personal jurisdiction existed over those defendants,

1 ECF No. 1-4 (amended complaint). 2 ECF Nos. 5 (corrected at ECF No. 8-1) (RedX/Leck motion to dismiss), 12 (Cole Information/Eggleston motion to dismiss). 3 ECF Nos. 9 (motion to strike), 11 (motion for a more definite statement). 4 ECF No. 74 (motion to compel). Edwards still cannot allege plausible facts demonstrating that they or RedX can be held liable under the TCPA because they are merely information providers that did not direct, authorize, or control the offending call to Edwards. I also dismiss Edwards’s Nevada-law claims and grant RedX’s motion for a more definite statement—not only do many of the statutes Edwards cites lack a private right of action, but Edwards fails to adequately identify which Nevada laws

support his claims. Finally, I dismiss Edwards’s claim for intrusion upon seclusion against Cole Information, RedX, and their CEOs with prejudice because he cannot allege facts demonstrating that any of those defendants committed an intentional act. But I grant Edwards leave to amend that claim against the remaining defendants. Background On January 17, 2019, Edwards received four unprompted telephone calls from Tamez, a realtor speaking on behalf of Century 21, who wanted to discuss real-estate opportunities in Edwards’s neighborhood.5 Uninterested in the offer, Edwards expressed incredulity that Tamez would cold-call him, given that he’d listed his phone number on the national and state Do Not

Call Registries.6 So Edwards sued Tamez and Century 21’s owners in Nevada state court for violating the TCPA and various Nevada statutes, and for invading his privacy.7 After discovery commenced, Edwards amended his complaint to add claims against Utah-based RedX and Nebraska-based Cole Information, along with their CEOs Leck and Eggleston.8 According to Edwards, RedX provides an “all-in-one prospecting platform” that automatically places calls to 5 ECF No. 1-4 at 201–07. 6 Id. at 204, 208 n.40. 7 Id. at 168–231. 8 ECF No. 1. potential customers.9 And Cole Information, who maintains a database of consumers’ contact information, purportedly supplied Century 21 with Edwards’s phone number.10 Edwards argues that these companies and their corporate officers are “vicariously liable” for Tamez’s cold- calling because he “utilized” their “products and services.”11 Cole Information removed the suit to this court12 and it, along with RedX and the two

companies’ CEOs, now moves to dismiss Edwards’s complaint, arguing that this court lacks personal jurisdiction over Leck, Eggleston, and Cole Information, and that Edwards’s claims are insufficiently pled.13 RedX also moves to strike Edwards’s complaint as needlessly prolix and prejudicial, while also moving for a more definite statement.14 Citing Eggleston’s and Cole Information’s refusal to participate in discovery, Edwards moves to compel both defendants to respond to his written discovery requests.15 Discussion I. Personal jurisdiction over Cole Information, Eggleston, and Leck A federal court may dismiss an action under Federal Rule 12(b)(2) for lack of personal

jurisdiction. The Fourteenth Amendment’s Due Process Clause limits a court’s power to bind a defendant to a judgement in the state in which it sits.16 Where, as here, the defendant is a 9 ECF No. 1-4 at 180–82. 10 Id. at 183–84. 11 Id. at 196, 199, 208–09. 12 ECF No. 1. 13 ECF Nos. 5, 12. 14 ECF Nos. 9, 11. 15 ECF No. 74. 16 Walden v. Fiore, 571 U.S. 277, 283 (2014). Because Nevada’s long-arm statute grants courts jurisdiction over persons “on any basis not inconsistent with” the U.S. Constitution, the nonresident, the court must determine whether that defendant has “certain minimum contacts such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.”17 “There are two forms of personal jurisdiction that a forum state may exercise over a nonresident defendant—general jurisdiction and specific jurisdiction.”18 Edwards fails to plausibly allege facts supporting either basis to exercise jurisdiction over

Eggleston, Leck, or Cole Information. A. This court lacks general jurisdiction over Eggleston, Leck, and Cole Information. Edwards claims that Eggleston, Cole Information, and Leck are subject to this court’s general jurisdiction because those defendants, despite being foreign citizens and entities, directly sold their products in Nevada.19 “For general jurisdiction to exist, a [nonresident] defendant must engage in ‘continuous and systematic general business contacts,’” “approximat[ing] physical presence in the forum state,” that are “so substantial and of such a nature as to justify suit against [the defendant] on causes of action arising from dealings entirely distinct from those activities.”20 This is an “exacting standard,” and courts should consider the “[l]ongevity, continuity, volume, economic impact, physical presence, and integration into the state’s regulatory or economic markets” to find general jurisdiction appropriate.21 “Only in an

jurisdictional analyses under state law and federal due process are identical. See id.; Nev. Rev. Stat. § 14.065. 17 Walden, 571 U.S. at 283 (quoting Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945)) (internal quotation marks and ellipsis omitted). 18 Boschetto v. Hansing, 539 F.3d 1011, 1016 (9th Cir. 2008). 19 See ECF Nos. 19 at 17, 30 at 6. 20 Mavrix Photo, Inc. v. Brand Techs., Inc., 647 F.3d 1218, 1224 (9th Cir. 2011) (internal quotation marks and citations omitted). 21 Id. (internal quotation marks and citations omitted). ‘exceptional case’ will general jurisdiction be available anywhere” other than a party’s state of incorporation, state of residence, or corporate headquarters.22 Edwards’s complaint—largely centering on both companies’ sale of products in Nevada via the internet—fails to set out an exceptional case. It is axiomatic that “engaging in commerce with residents of the forum state is not in and of itself the kind of activity that approximates

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