Global Tech Industries Group Inc. v. Wells

CourtDistrict Court, S.D. New York
DecidedJuly 21, 2022
Docket1:21-cv-06891
StatusUnknown

This text of Global Tech Industries Group Inc. v. Wells (Global Tech Industries Group Inc. v. Wells) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Global Tech Industries Group Inc. v. Wells, (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

GLOBAL TECH INDUSTRIES GROUP INC.,

Plaintiff, OPINION AND ORDER v. 21 Civ. 06891 (ER)

DAVID WELLS,

Defendant.

Ramos, D.J.:

Global Tech Industries Group, Inc. brings this action against David Wells, alleging breach of contract and seeking an injunction to enjoin Wells from selling the stocks he owns in Global Tech. Before the Court is Wells’ motion to dismiss for lack of personal jurisdiction, improper venue, and failure to state a claim. For the reasons set forth below, the motion is GRANTED. I. Background and Procedural History1 Formerly known as Tree Top Industries, Inc., Global Tech is a corporation organized under the laws of the State of Nevada, with a registered address in Las Vegas, Nevada and executive offices in New York City. Doc. 23, Plaintiff’s Opposition to Defendant’s Motion to Dismiss at 4; Doc. 22-1, Defendant’s Memorandum in Support of Motion to Dismiss, at 10; ¶¶ 1, 9.2 In its complaint, Global Tech characterizes itself as a resident of Nevada. ¶ 5.

1 Unless otherwise noted, citations to “¶ _” refer to the Complaint, Doc. 5.

2 The Court considers factual allegations made in the parties’ motions that are undisputed. Wells is a financial consultant residing in California. ¶¶ 2, 14; Doc. 22-1 at 9; Doc. 23 at 4. He provides consulting services through StoryCorp, a company he owns and operates. Doc. 22 at 9; Doc. 23 at 4. In 2012, Global Tech alleges that it retained Wells to perform consulting services to resolve a dispute (the “Dispute”) between David Reichman (“Reichman”), the chief executive

officer of Global Tech, and Richardson & Patel LLP, a law firm based in New York City and Los Angeles. ¶¶ 2, 10, 12. According to the parties’ oral agreement, Wells was to receive shares in Global Tech (represented by stock Certificate #ZQ673) (the “Shares”) in exchange for resolving the Dispute. ¶¶ 12, 17, 29-30. On February 6, 2012, Global Tech—under its former name, Tree Top Industries, Inc.—issued to Wells a certificate (the “Certificate”) for 1,500,000 fully paid and non-assessable shares of the common stock of Tree Top Industries, Inc. Doc. 22-10. 3,4 The Certificate represents “restricted stock, and is unable to be alienated without the authorization of the transfer Agent, and subject to an opinion letter from an attorney.” ¶ 16. On May 10, 2012,

Global Tech filed Form 10-Q with the U.S. Securities and Exchange Commission, stating that

3 In general, “[i]f, on a motion under Rule 12(b)(6) matters outside the pleadings are presented to and not excluded by the court, the motion must be treated as one for summary judgment under Rule 56.” Fed. R. Civ. Proc. Rule 12(d). Under those circumstances, “[a]ll parties must be given a reasonable opportunity to present all the material that is pertinent to the motion.” Id. When documentary evidence submitted by a defendant is “integral” to the complaint, however, the Court may take judicial notice of that evidence without converting the motion to dismiss to a motion for summary judgment pursuant to Rule 12(d). Chambers v. Time Warner, Inc., 282 F.3d 147, 153 (2d Cir. 2002) (citing Int’l Audiotext Network, Inc. v. Am. Tel. & Tel. Co., 62 F.3d 69, 72 (2d Cir. 1995)). The Court finds that certain of the documentary evidence attached by Wells to his memorandum in support of the motion to dismiss is integral to the complaint. Here, Wells presents a copy of the underlying stock certificate, Doc. 22-10, and requests that the Court take judicial notice of the document. The certificate is dated February 6, 2012 and is numbered ZQ.6713. The certificate represents a value of 1,500,000 shares in Tree Top Industries Inc.

4 The identification numbered specified in Global Tech’s complaint (“#ZQ673”), Doc. 5, is not consistent with the underlying stock certificate filed by Wells (“ZQ.6713”), see supra n. 3. “[o]n February 6, 2012, the Board of Directors authorized the issuance of 1,500,000 shares of common stock to a consultant for services performed.” Doc 22-4 at 8.5 Global Tech alleges that, as of August 3, 2021, the Dispute was unresolved. ¶ 13. As such, according to Global Tech records, Reichman never tendered the Shares to Wells. Id. On August 3, 2021, Wells emailed Reichman, seeking confirmation that he had performed his end of

the bargain and requesting that Global Tech issue the Shares. ¶ 14, 21. Several days later, legal counsel retained by Wells issued an opinion letter indicating that the Shares should be released. Id. ¶ 15. Currently, the Shares remain in the possession of Global Tech. ¶ 24. Global Tech maintains that no written agreement exists to authorize the delivery of the Shares to Wells. ¶ 24. It further alleges that because Wells did not resolve the Dispute, Wells has no right to the Shares. ¶ 32. Global Tech does not claim that Wells ever physically performed services or solicited opportunities within the State of New York, and does not dispute that Wells performed the relevant services in California. The complaint also does not allege that Wells ever knowingly directed any communications into New York. Although Global Tech

alleges that Richardson & Patel is based in New York City and Los Angeles, it does not specify the nature of the transaction from which the Dispute between Reichman and Richardson & Patel arose. Further, Global Tech does not allege that Wells was ever aware, or should have been aware, that Global Tech maintained headquarters in New York. Global Tech filed a complaint against David Wells on August 17, 2021, seeking a preliminary injunction barring Wells from alienating the Shares, and an order from the Court terminating Wells’ ownership interest in the Shares. Doc. 5. Wells was then served on September 22, 2021. Doc. 12. On November 11, 2021, Wells filed a separate action in the

5 See supra n.3. United States District Court for the District of Nevada. Doc. 22-1 at 12; Doc. 22-5. On December 14, 2021, Wells filed a motion to dismiss for lack of jurisdiction, improper venue, and failure to state a claim upon which relief can be granted, pursuant to Rules 12(b)(2), 12(b)(3), and 12(b)(6), respectively. Doc. 22. Seeking emergency relief to prevent Wells from alienating the Shares under dispute, on April 25, 2022, Global Tech requested a hearing to show cause for a

preliminary injunction. Doc. 27. On April 29, 2022, the hearing was held and Global Tech’s request for a preliminary injunction was denied. Doc. 35. II. Legal Standard “A plaintiff bears the burden of demonstrating personal jurisdiction over a person or entity against whom [he] seeks to bring suit.” Penguin Grp. (USA) Inc. v. Am. Buddha, 609 F.3d 30, 34 (2d Cir. 2010). To meet this burden, the plaintiff must plead facts sufficient for a prima facie showing of jurisdiction. Whitaker v. Am. Telecasting, Inc., 261 F.3d 196, 208 (2d Cir. 2001). The Court construes all of the plaintiff's allegations as true and resolves all doubts in its favor. Casville Invs., Ltd. v. Kates, 12 Civ. 6968 (RA), 2013 WL 3465816, at *3 (S.D.N.Y. July 8, 2013) (citing Porina v. Marward Shipping Co., 521 F.3d 122, 126 (2d Cir. 2008); Martinez v. Bloomberg LP, 883 F.Supp.2d 511, 513 (S.D.N.Y. 2012)). “However, a plaintiff may not rely

on conclusory statements without any supporting facts, as such allegations would ‘lack the factual specificity necessary to confer jurisdiction.’” Art Assure Ltd., LLC v. Artmentum GmbH, 14 Civ. 3756 (LGS), 2014 WL 5757545, at *2 (S.D.N.Y. Nov. 4, 2014) (quoting Jazini v.

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Global Tech Industries Group Inc. v. Wells, Counsel Stack Legal Research, https://law.counselstack.com/opinion/global-tech-industries-group-inc-v-wells-nysd-2022.