GUGGENHEIM DEVELOPMENT SERVICES LLC v. JMC FLATROCK PARTNERS LLC

CourtDistrict Court, M.D. Georgia
DecidedJanuary 22, 2025
Docket4:24-cv-00025
StatusUnknown

This text of GUGGENHEIM DEVELOPMENT SERVICES LLC v. JMC FLATROCK PARTNERS LLC (GUGGENHEIM DEVELOPMENT SERVICES LLC v. JMC FLATROCK PARTNERS LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GUGGENHEIM DEVELOPMENT SERVICES LLC v. JMC FLATROCK PARTNERS LLC, (M.D. Ga. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF GEORGIA COLUMBUS DIVISION GUGGENHEIM DEVELOPMENT SERVICES LLC; and JL COLUMBUS 1549 LLC,

Plaintiffs, CIVIL ACTION NO.

4:24-cv-00025-TES v.

JMC FLATROCK PARTNERS LLC, et al.,

Defendants.

ORDER

Before the Court is Defendant Georgia Power Company’s Motion to Dismiss Plaintiffs’ Amended Complaint [Doc. 27]. Plaintiffs Guggenheim Development Services LLC and JL Columbus 1549 LLC filed this action on February 15, 2024, asserting state- law claims against Defendants JMC Flatrock Partners, LLC, and Public Service Communications, Inc., related to easements and underground utilities that allegedly burdened a tract of land JL Columbus purchased from JMC Flatrock. See [Doc. 1]. Plaintiffs filed an Amended Complaint [Doc. 16] on August 30, 2024, which added Georgia Power Company as a defendant and asserted several claims against it based on Plaintiff’s allegation that it installed an underground power line outside of its “recorded easement.” See [Doc. 16, Counts VIII–XI]. Georgia Power now moves to dismiss Plaintiffs’ claims under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. [Doc. 27].

For the reasons explained in further detail below, the Court GRANTS Georgia Power’s Motion to Dismiss [Doc. 27] in part and DISMISSES Guggenheim’s claims, Count VIII (Exceeding Recorded Easement), and Count XI (Attorney’s Fees); and

DENIES it [Doc. 27] in part as to Counts IX (Negligence) and X (Trespass). BACKGROUND Before turning to the substance of Georgia Power’s Motion, the Court first

outlines this case’s factual background. Plaintiff Guggenheim, a commercial real estate developer, entered into a Purchase and Sale Agreement to purchase a 0.71-acre tract of land in Columbus, Georgia (the “Property”), from Defendant JMC Flatrock. [Doc. 16, ¶¶ 8–10]. As part of

that agreement, JMC Flatrock made representations and warranties, some of which concerned easements and utilities on the Property. [Id. at ¶ 11]. Guggenheim did its due diligence, including obtaining title searches and surveys, and then assigned its rights in the Purchase and Sale Agreement to Plaintiff JL Columbus.1 [Id. at ¶ 18]; [Doc. 29, p. 3]. The sale closed on May 12, 2023, and JMC Flatrock conveyed the Property to JL

Columbus. [Doc. 16, ¶ 13]. After the property transfer, Plaintiffs obtained site plans, construction plans, and expended resources preparing to construct a Jiffy Lube oil change facility on the Property. [Id. at ¶ 18]. During this entire process of purchasing the

Property and planning construction, Plaintiffs relied upon an easement benefitting Defendant Georgia Power that was recorded in the real estate records for Muscogee County, Georgia. [Id. at ¶¶ 68–69]. Plaintiffs later discovered that Georgia Power had

placed an underground power line on the Property outside the boundaries of its recorded easement. [Id. at ¶ 15]. However, Plaintiffs didn’t discover that until after they began construction, which they immediately halted to determine the power line’s specific location and minimize interference with it. [Id. at ¶ 19]. After a four-month

delay, Georgia Power agreed to relocate the power line, and Plaintiffs created a new

1 On a motion to dismiss, a court must generally limit its review to the four corners of the complaint. See, e.g., Bickley v. Caremark RX, Inc., 461 F.3d 1325, 1329 n.7 (11th Cir. 2006). If a party presents materials, including factual allegations, outside a complaint as part of a motion to dismiss, a court must either disregard those materials or convert the motion to dismiss into a motion for summary judgment. See Fed. R. Civ. P. 12(d). The Amended Complaint does not explain why JL Columbus ultimately purchased the property when Guggenheim was the entity that originally agreed to buy it. See [Doc. 16, ¶¶10–13]. However, Plaintiffs’ Response clarifies that Guggenheim “assigned its rights to the Purchase and Sale Agreement to” JL Columbus after conducting due diligence. [Doc. 29, p. 3]. Because the Court considers this information as context for understanding Plaintiffs’ claims, but does not rely on it as evidence for the purposes of its analysis, the Court avoids converting this Motion into a summary-judgment motion. See Fed. R. Civ. P. 12(d). easement reflecting its new location. [Id. at ¶¶ 20–21]. Plaintiffs originally filed this action on February 15, 2024. [Doc. 1]. They then

filed an Amended Complaint on August 30, 2024, adding Georgia Power as a defendant and adding claims against it for “exceeding [a] recorded easement,” negligence, and trespass, and seeking an award of attorney’s fees. See [Doc. 16, Counts VIII–XI]. Georgia

Power moves to dismiss Plaintiffs’ claims under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. See [Doc. 27]. LEGAL STANDARD

When ruling on a 12(b)(6) motion, district courts must accept the facts set forth in the complaint as true. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 572 (2007). A complaint survives a motion to dismiss only if it alleges sufficient factual matter (accepted as true) that states a claim for relief that is plausible on its face. McCullough v. Finley, 907 F.3d

1324, 1333 (11th Cir. 2018) (citing Ashcroft v. Iqbal, 556 U.S. 662, 678–79 (2009)). In fact, a well-pled complaint “may proceed even if it strikes a savvy judge that actual proof of those facts is improbable, and that a recovery is very remote and unlikely.” Twombly,

550 U.S. at 556 (citations omitted). Although Federal Rule of Civil Procedure 8 does not require detailed factual allegations, it does require “more than . . . unadorned, the-defendant-unlawfully- harmed-me accusation[s].” McCullough, 907 F.3d at 1333 (citation omitted) (alteration in

original). To decide whether a complaint survives a motion to dismiss, district courts are instructed to use a two-step framework. Id. The first step is to identify the allegations that are “no more than mere conclusions.” Id. (quoting Iqbal, 556 U.S. at 679).

“Conclusory allegations are not entitled to the assumption of truth.” Id. (citation omitted). After disregarding the conclusory allegations, the second step is to “assume any remaining factual allegations are true and determine whether those factual

allegations ‘plausibly give rise to an entitlement to relief.’” Id. (quoting Iqbal, 556 U.S. at 679). Furthermore, a complaint attacked by a 12(b)(6) motion is subject to dismissal

when it fails to “give the defendant fair notice of what the . . . claim is and the grounds upon which it rests.” Twombly, 550 U.S. at 555. “A plaintiff must plead more than labels and conclusions or a formulaic recitation of the elements of a cause of action.” McCullough, 907 F.3d at 1333 (internal quotations omitted); see also Twombly, 550 U.S. at

555. “To be sure, a plaintiff may use legal conclusions to structure his complaint, but legal conclusions ‘must be supported by factual allegations.’” McCullough, 907 F.3d at 1333 (quoting Iqbal, 556 U.S. at 679). While courts, in ruling on a motion to dismiss, must

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GUGGENHEIM DEVELOPMENT SERVICES LLC v. JMC FLATROCK PARTNERS LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guggenheim-development-services-llc-v-jmc-flatrock-partners-llc-gamd-2025.