Gugliuzza v. Morgan & Morgan, Jacksonville PLLC

District Court, S.D. Georgia·Decided August 11, 2025·No. 4:25-cv-00064·Unknown

Opinion

In the United States District Court for the Southern District of Georgia Savannah Division

MARK GUGLIUZZA, on behalf of himself and all others similarly situated, CV 425—064 Plaintiff,

v.

MORGAN & MORGAN, JACKSONVILLE PLLC d/b/a Morgan & Morgan Jacksonville, LLC, and SETH DIAMOND,

Defendants.

ORDER Before the Court is Defendants’ motion to compel arbitration, dkt. no. 5, as well as Plaintiff’s motion to remand, dkt. no. 22. The motions have been fully briefed and are ripe for review. See Dkt. Nos. 5, 21, 22, 24, 25. BACKGROUND After being injured in a motor vehicle accident in Savannah, Georgia, on January 17, 2021, Plaintiff Mark Gugliuzza entered into a representation agreement with the law firm of Morgan & Morgan, Jacksonville PLLC (“Morgan & Morgan”). Dkt. No. 1-1 ¶¶ 7, 9; Id. at 17. The representation agreement contained an arbitration provision. After Plaintiff retained the firm to represent him, Morgan & Morgan filed suit on Plaintiff’s behalf and initially demanded five million dollars in damages as a result of the motor vehicle accident. Dkt. No. 1-1 ¶ 10. The lawsuit remained pending for three years, during which two mediations took place. Id. ¶ 11. Morgan & Morgan’s settlement offers remained in the millions of dollars. Id. While representing Plaintiff, Morgan & Morgan suggested Plaintiff meet with a “life care planner.” Id. ¶ 12. Plaintiff was never advised to meet with a physician to substantiate any life care plan. Id. In late 2024, Morgan & Morgan told Plaintiff he needed to settle his claim for $125,000. Id. ¶ 13. Plaintiff alleges he “was informed this settlement was

necessitated because a federal judge involved in his case had made a clear error in knocking his life care plan.” Id. Plaintiff alleges that, in actuality, the court “disqualified” the life care plan because Morgan & Morgan “fail[ed] to have an appropriate physician review and validate the plan.” Id. ¶ 16. Plaintiff alleges this failure was “clear malpractice” on Morgan & Morgan’s part. Id. Further, Plaintiff alleges Morgan & Morgan “fail[ed] to adequately disclose medical experts, their opinions, and reports,” which also “constitutes an actionable cause of action for legal malpractice.” Id. ¶ 17. Ultimately, Plaintiff “begrudgingly agreed to accept the $125,000.00 settlement.” Id.

¶ 14. Afterward, Plaintiff was presented with a settlement statement that, Plaintiff alleges, “improperly recouped to Morgan and Morgan numerous charges” that were either excessive or not properly recoverable by the law firm. Id. ¶ 15. Specifically, Plaintiff asserts that Morgan & Morgan “failed to properly identify the maximum rate of interest they would charge in the representation agreements entered into with their clients, failed to identify what rate was actually charged and to which advances it was applied, inflated their costs and/or expenses in presenting closing statements to their clients, included duplicative charges and expenses in closing statements presented to their clients, and otherwise failed to clearly identify what was being charged to clients following the resolution of their cases.” Id. ¶ 21. Plaintiff filed this lawsuit, a putative class action,

against Morgan & Morgan and his attorney, Seth Diamond, on March 20, 2025, in the Superior Court of Chatham County, Georgia. Id. at 3. Plaintiff brings claims against Morgan & Morgan and Mr. Diamond for professional negligence (Count I), breach of fiduciary duty (Count II), and “damages” (Count V).1 Id. at 12-15. Defendants removed the case to this Court, basing subject matter jurisdiction on the Class Action Fairness Act (“CAFA”) and moved to compel arbitration based on the representation agreement’s arbitration provision. Dkt. Nos. 1, 5. Thereafter, Plaintiff moved to remand this action to the state court from which it was removed. Dkt. No. 22.

1 The complaint contains no Count III or Count IV. See Dkt. No. DISCUSSION I. Plaintiff’s Motion to Remand In his motion to remand, Plaintiff argues the Court must abstain from exercising jurisdiction over this case due to the local controversy exception contained in CAFA. Dkt. No. 22. a. Legal Authority “‘[P]laintiffs bear the burden of establishing that they fall within CAFA’s local controversy exception.’” Simring v. GreenSky, LLC, 29 F.4th 1262, 1267 (11th Cir. 2022) (quoting Evans v. Walter Indus., Inc., 449 F.3d 1159, 1164 (11th Cir. 2006)). “That

exception is a ‘narrow one, with all doubts resolved “in favor of exercising jurisdiction over the case.”’” Id. (quoting Evans, 449 F.3d at 1163 (quoting S. Rep. No. 109-14 at 42, 2005 U.S.C.C.A.N. 3, 40)). b. Analysis 1. CAFA’s Local Controversy Exception The local controversy exception provides: A district court shall decline to exercise jurisdiction

. . . .

(i) over a class action in which—

(I) greater than two-thirds of the members of all proposed plaintiff classes in the aggregate are citizens of the State in which the action was originally filed;

(II) at least 1 defendant is a defendant-- (aa) from whom significant relief is sought by members of the plaintiff class;

(bb) whose alleged conduct forms a significant basis for the claims asserted by the proposed plaintiff class; and

(cc) who is a citizen of the State in which the action was originally filed; and

(III) principal injuries resulting from the alleged conduct or any related conduct of each defendant were incurred in the State in which the action was originally filed; and

(ii) during the 3-year period preceding the filing of that class action, no other class action has been filed asserting the same or similar factual allegations against any of the defendants on behalf of the same or other persons[.]

28 U.S.C. § 1332(d)(4)(A). “Thus, the local controversy exception has four elements: (1) citizenship of the plaintiff class; (2) significant defendant; (3) principal injuries; and (4) similar class actions.” McAteer v. DCH Reg’l Med. Ctr., No. 2:17cv859, 2018 WL 1089873, at *3 (N.D. Ala. Feb. 26, 2018). In their opposition brief to Plaintiff’s motion to remand, Defendants argue, among other things, that “a related class action asserted against Morgan & Morgan . . . prevents [Plaintiff] from invoking the local controversy exception.” Dkt. No. 25 at 11. In other words, Defendants argue Plaintiff has failed to meet the fourth element of the local controversy exception, § 1332(d)(4)(A)(ii). 2. The Other Class Action Defendants argue Plaintiff’s motion to remand should be denied based on Walker, “a substantially similar class action previously filed against Morgan & Morgan and one of its employees.” Dkt. No. 25 at 11 (citing Walker v. Morgan & Morgan, Jacksonville PLLC, No. 2:24-cv-088, 2025 WL 310671 (S.D. Ga. Jan. 28, 2025)). Defendants assert Walker “was filed against Morgan & Morgan by the same attorneys that represent [Plaintiff] here and was premised on substantially similar allegations regarding professional negligence and alleged improper fees charged by Morgan & Morgan.”

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