Gerald Barth v. Cliffside Beach, Inc. d/b/a Cliffside Beach Club and Hotel

CourtDistrict Court, D. Colorado
DecidedNovember 14, 2025
Docket1:25-cv-01883
StatusUnknown

This text of Gerald Barth v. Cliffside Beach, Inc. d/b/a Cliffside Beach Club and Hotel (Gerald Barth v. Cliffside Beach, Inc. d/b/a Cliffside Beach Club and Hotel) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gerald Barth v. Cliffside Beach, Inc. d/b/a Cliffside Beach Club and Hotel, (D. Colo. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO

Civil Action No. 25-cv-01883-NRN

GERALD BARTH,

Plaintiff,

v.

CLIFFSIDE BEACH, INC. d/b/a CLIFFSIDE BEACH CLUB AND HOTEL,

Defendant.

ORDER ON DEFENDANT’S MOTION TO DISMISS PLAINTIFF’S COMPLAINT FOR LACK OF PERSONAL JURISDICTION PURSUANT TO FEDERAL RULE OF CIVIL PROCEDURE 12(b)(2) (ECF No. 12)

N. REID NEUREITER United States Magistrate Judge

This case comes to the Court upon the consent of the parties to magistrate judge jurisdiction, ECF No. 15, and an Order of Reference entered by Chief Judge Philip A. Brimmer on September 10, 2025, ECF No. 17. Now before the Court is Defendant Cliffside Beach, Inc. d/b/a Cliffside Beach and Hotel’s (“Cliffside”) Motion to Dismiss Complaint for Lack of Personal Jurisdiction Pursuant to Federal Rule of Civil Procedure 12(b)(2) (“Motion to Dismiss”). ECF No. 12. Plaintiff Geral Barth, proceeding pro se, filed a response, ECF No. 18, and Cliffside filed a reply, ECF No. 20. The Court has taken judicial notice of the docket and considered the applicable Federal Rules of Civil Procedure and case law. Now, being fully informed and for the reasons discussed below, the Motion to Dismiss is GRANTED. I. BACKGROUND This lawsuit arises out of dispute regarding a Club Membership Agreement (the “Agreement”) between Plaintiff, a Colorado resident, and Cliffside, the operator of a for- profit beach club in Massachusetts. See generally ECF No. 1. Plaintiff brings claims for breach of contract, unjust enrichment, fraud, and violations of Massachusetts state law.

Plaintiff alleges that this Court has subject matter jurisdiction over this case pursuant to 28 U.S.C. § 1332 (diversity of citizenship). Id. at 2. The facts as alleged in the Complaint are relatively straightforward. The parties entered into the Agreement in 2008. Id. at 3, ¶ 1. The Agreement stipulated that Plaintiff would be entitled to reimbursement of the $160,000 initiation fee upon notice to Cliffside of Plaintiff’s intent to resign and the admission of a new member to replace them or upon the sale of stock in the Club or its real estate. Id. ¶ 2. When Plaintiff resigned his membership in November 2015, he was informed that it could be several years before Cliffside would have enough new members to be able to reimburse Plaintiff’s initiation

fee. Id. ¶¶ 3–4. However, Plaintiff claims that he was informed by Cliffside that he would not be charged with the annual membership fee while he was on the waitlist for reimbursement if he did not use any of the club’s facilities. Id. ¶ 6. Unbeknownst to Plaintiff, Cliffside continued to charge him for annual membership fees, as well as a 1.4% compounding monthly finance charge on the unpaid balance. Id. ¶ 5. Plaintiff was unaware of the charges until August 2022, when he inquired about the status of initiation fee reimbursement and learned that he had incurred over $100,000 in charges, which Cliffside said would be applied against any reimbursement. Id. at 4, ¶ 10. Plaintiff’s 2024 demand for reimbursement was rejected. Id. ¶ 11. II. The Parties’ Positions a. Cliffside’s Motion to Dismiss Cliffside has moved to dismiss for lack of personal jurisdiction. According to

Cliffside, this case has nothing to do with Colorado beyond the fact that Plaintiff lives here. In support of its personal jurisdiction argument, Cliffside submitted a declaration from Robert Currie, Cliffside’s President. ECF No. 12-1. Mr. Currie states as follows. • Cliffside operates a private beach club in Nantucket, Massachusetts, and derives all of its revenues from the operation of the property. Id. ¶¶ 2, 4. • Cliffside is incorporated and maintains its principal place of business in Massachusetts. Id. ¶¶ 10–11. • Cliffside is not registered to conduct business in Colorado, does not have an

agent for service of process in Colorado, and does not conduct business in Colorado. Id. ¶¶ 12–14. • Cliffside does not maintain, rent, or own any property in Colorado, does not maintain bank accounts in Colorado, does not have any contracts with any Colorado entities, and does not pay Colorado taxes. Id. ¶¶ 15–18. • Cliffside does not manufacture or sell any goods or services in Colorado, has never sent any of its staff or agents to solicit business in Colorado, and does not purposefully direct any marketing activities to Colorado residents. Id. ¶¶ 19–20. Given these facts, Cliffside contends that it is clear this Court has neither general

nor specific jurisdiction over Cliffside. b. Plaintiff’s Response Plaintiff submitted his own statement of facts, ECF No. 18 at 2, and declaration, ECF No. 18-1. He confirms that he is a Colorado resident who first visited Cliffside in 2007 while on vacation in Nantucket. ECF No. 18-1 ¶¶ 1–2. The parties disagree on where the Agreement was signed; Cliffside says Plaintiff signed it and delivered the

check for the initiation fee in Nantucket, ECF No. 12-1 ¶¶ 7–8, Plaintiff claims he mailed it to Nantucket from Colorado, ECF No. 18 at 2, ¶¶ 6–7. Otherwise, the basic facts are not disputed, except Plaintiff points out that many of Cliffside’s members reside outside of Massachusetts, and Cliffside markets to and communicates with out-of-state members and prospective members. ECF No. 18 at 2, ¶¶ 4, 8–10. Plaintiff argues that Cliffside is subject to specific personal jurisdiction since Cliffside purposefully executed the Agreement with the knowledge that Plaintiff was a Colorado resident, and the claims arise directly from this contractual relationship. Plaintiff further claims that Cliffside knew or should have known that by wrongfully

withholding the reimbursement funds, and thereby breaching the Agreement, Plaintiff would suffer injuries in Colorado. III. LEGAL STANDARDS a. Dismissal for Lack of Personal Jurisdiction Rule 12(b)(2) authorizes a responding party to seek dismissal based on the lack of personal jurisdiction, which can rely on evidence outside of the complaint. Fed. R. Civ. P. 12(b)(2); XMission, L.C. v. Fluent Ltd. Liab. Co., 955 F.3d 833, 839 (10th Cir. 2020) (noting a motion to dismiss for lack of jurisdiction is “decided on the basis of affidavits and other written material”). When the court’s jurisdiction is contested, the “plaintiff has the burden of establishing personal jurisdiction.” XMission, L.C., 955 F.3d at 839. A plaintiff can defeat a motion to dismiss only by “presenting evidence,” in the form of “uncontested allegations in its complaint or other materials, or an affidavit or declaration,” that, if true, would support a finding of personal jurisdiction. Id. For personal jurisdiction over a defendant to be proper, the plaintiff must

establish that “jurisdiction is legitimate under the laws of the forum state and that the exercise of jurisdiction does not offend the due process clause of the Fourteenth Amendment.” Benton v. Cameco Corp., 375 F.3d 1070, 1075 (10th Cir. 2004). Because “Colorado’s long arm statute is coextensive with constitutional limitations imposed by the due process clause,” the Court need only decide whether the exercise of personal jurisdiction would be consistent with the requirements of federal due process. Id. A court constitutionally may exercise personal jurisdiction in one of two ways, through either general jurisdiction or specific jurisdiction.

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Gerald Barth v. Cliffside Beach, Inc. d/b/a Cliffside Beach Club and Hotel, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gerald-barth-v-cliffside-beach-inc-dba-cliffside-beach-club-and-hotel-cod-2025.