Ervin v. California Network Management Inc

CourtDistrict Court, E.D. Washington
DecidedMay 27, 2025
Docket2:25-cv-00011
StatusUnknown

This text of Ervin v. California Network Management Inc (Ervin v. California Network Management Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ervin v. California Network Management Inc, (E.D. Wash. 2025).

Opinion

1 2 FILED IN THE U.S. DISTRICT COURT EASTERN DISTRICT OF WASHINGTON 3 May 27, 2025 4 SEAN F. MCAVOY, CLERK 5 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WASHINGTON 6

7 ROB ERVIN, an individual; and THE STERLING ORGANIZATION NO. 2:25-CV-0011-TOR 8 L.L.C., a Washington limited liability company, ORDER DENYING DEFENDANTS’ 9 Plaintiffs, MOTION TO DISMISS OR TRANSFER VENUE 10 v.

11 CALIFORNIA NETWORK MANAGEMENT, INC., a California 12 corporation d/b/a CNM WIRELESS, LLC, a California limited liability 13 company; and STEVEN BITTER, individually and on behalf of his 14 marital community,

15 Defendants. 16 BEFORE THE COURT is Defendants’ Motion to Dismiss or Transfer 17 Venue (ECF No. 5). This matter was submitted for consideration without oral 18 argument. The Court has reviewed the record and files herein and is fully 19 informed. For the reasons discussed below, Defendants’ Motion to Dismiss or 20 Transfer Venue (ECF No. 5) is DENIED. 1 BACKGROUND 2 This matter arises out of the dissolution of a business relationship and

3 contractual agreements therein. Around 2006, Plaintiff Rob Ervin, at all times a 4 resident of Spokane, Washington, was working at AT&T, developing the 5 company’s non-stock program to allow customers to obtain wireless products that

6 were not ordinarily kept in stock. ECF No. 9 at 2. While working in this capacity, 7 he met Defendant Steven Bitter, a California resident, who managed CNM 8 Wireless (“CNM”). Id. at 2‒3. CNM Wireless was a California limited liability 9 company, and its affiliate, California Network Management Inc., was a California

10 corporation with a principal place of business in California. ECF No. 5 at 2. With 11 Ervin’s support, AT&T selected CNM to operate its non-stock program, and Bitter 12 contacted a California-based software developer to assist the business in

13 integrating into the AT&T billing system. ECF No. 5 at 4. Bitter was the only 14 signatory to the contract with AT&T and the later amendments. ECF No. 6 at 2. 15 Ervin joined CNM as it integrated with AT&T, and he continued to work from 16 Spokane. ECF No. 9 at 3.

17 As the business relationship grew, Ervin and Bitter entered into a series of 18 agreements to establish the terms of their operation together. In 2007, they 19 executed a Letter Agreement, whereby Ervin was named the Executive Vice

20 President of CNM, an office for CNM was established in Washington, and Ervin 1 was given equity in the company. Id. When Ervin left AT&T for Motorola, Ervin 2 and Bitter purportedly executed two agreements for their relationship moving

3 forward: the Term Sheet and the Final Agreement.1 The Term Sheet, signed in 4 2010 at a location outside of the Eastern District of Washington, provided that 5 Bitter would continue to be the sole shareholder of CNM, but that Bitter and Ervin

6 would each own 50% of World Network Communications, Inc., which would 7 provide consulting services for the other businesses in Bitter’s orbit. ECF No. 6-1 8 at 2. The Term Sheet gave Ervin the title of Executive Vice President of Sales and 9 Marketing for World Network Communication, and an “executive level job title”

10 with CNM. Id. The Final Agreement was purportedly signed in 2013 and 11 memorialized the parties’ shared goal of positioning CNM for sale. ECF No. 10 at 12 4. The Final Agreement also allegedly establishes that Bitter was to be in charge

13 of the legal and bookkeeping aspect of the business, while Ervin was to be in 14 charge of sales and business development portion, through his consulting business, 15

1 At some point during this period of his business relationship with Bitter, Ervin 16 left Motorola to join CNM full time, although it isn’t clear from the documents 17 currently before the Court which agreement memorializes or marks this change. 18 The Court assumes this occurred sometime after January 2011. See ECF No. 1 at 19 6‒7 ¶ 3.17. 20 1 Plaintiff Sterling Corporation. ECF No. 9 at 4. 2 The parties fundamentally disagree as to where CNM was primarily

3 operated. Plaintiffs argue that all communication with AT&T in an effort to run 4 and develop the business were handled through the Spokane office, and that the 5 California office was primarily used for storage. Id. Further, Ervin alleges that

6 while working in the Spokane office, he developed and managed an online sales 7 portal for AT&T, which provided representatives and customers 24/7 access to 8 products. Id. at 5. Throughout its existence, the Spokane office has allegedly 9 employed thirty-five different people, and was the location where CNM’s invoices

10 to AT&T were submitted. ECF No. 10 at 6. Defendants argue that, at all times 11 throughout the business relationship, Bitter was the sole owner of CNM, which 12 was operated in Westlake Village, California. ECF No. 5 at 4. Between 2013 and

13 2023, CNM, Inc. maintained fifteen to twenty-five employees at the Westlake 14 Village Office. Id. Cellular devices were stored, configured, activated, and 15 shipped from the California office. Moreover, they argue that Ervin and his 16 company the Sterling Organization served as consultants for CNM, but were not

17 employed or managed by CNM. Id. a 5. 18 The parties also disagree as to the disposition of the business. Plaintiffs 19 opine that CNM was thriving, doubling sales in 2021. ECF No. 9 at 5. Ervine felt

20 that AT&T would likely be interested in absorbing CNM, but if not, the proximity 1 to the company would be enticing to other entities. Id. In Plaintiffs’ retelling, 2 Bitter inexplicably decided he no longer wanted to sell CNM in the spring of 2023,

3 and remarked on more than one occasion that he did not want to grant access to 4 CNM’s books and records. Id. at 6 . He sent a termination letter to AT&T on May 5 1, 2023, over Ervin’s protests. Id. Though AT&T was upset, and Ervin received

6 offers from other entities looking to purchase the business, Bitter dissolved the 7 operation. Id. at 7. In Defendants’ version of events, the business began slowing 8 down as AT&T integrated aspects of CNM in-house and was increasingly slow in 9 processing invoices. ECF No. 5 at 5. Defendants state that Ervin and Bitter began

10 discussions of closing the business in April 2022, and that in July of that year, 11 Ervin expressed a desire to end operation. Id. In May 2022, Ervin set up a 12 meeting with Bitter and a representative from AT&T, who expressed disinterest in

13 acquiring CNM. Id. at 6. A year later, Bitter sent a letter to AT&T, expressing an 14 intent to terminate the agreements CNM held with the company. Id. AT&T in turn 15 informed Bitter that it had control over whether to allow CNM to assign its 16 agreements to a subsequent owner of the business. Id. Defendants argue that even

17 after learning of Defendant Bitter’s intention to wind up the business, Ervin 18 continued to solicit sales from other entities, but expressed flexibility with the 19 prospect of sale. Id. In late 2023 and early 2024, Bitter dissolved the businesses

20 with the California State Attorney General. Id. at 7. 1 Plaintiffs filed claims for breach of fiduciary duty, breach of contract, 2 tortious interference with business expectancy, and unjust enrichment. ECF No. 1.

3 Defendants argue that this Court should either dismiss or transfer this matter due to 4 improper venue, or in the alternative, transfer the case to the more convenient 5 venue in the Central District of California. ECF No. 5. Plaintiffs oppose the

6 transfer, arguing that venue is proper in the Eastern District of Washington, and 7 that this is the most convenient forum. ECF No. 9. 8 DISCUSSION 9 I. Venue Pursuant to Federal Rule of Civil Procedure 12(b)(3)

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Ervin v. California Network Management Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ervin-v-california-network-management-inc-waed-2025.