Gutch v. Federal Republic of Germany

444 F. Supp. 2d 1, 2006 U.S. Dist. LEXIS 51095, 2006 WL 2075259
CourtDistrict Court, District of Columbia
DecidedJuly 27, 2006
DocketCivil Action 05-2338 (RMU)
StatusPublished
Cited by11 cases

This text of 444 F. Supp. 2d 1 (Gutch v. Federal Republic of Germany) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gutch v. Federal Republic of Germany, 444 F. Supp. 2d 1, 2006 U.S. Dist. LEXIS 51095, 2006 WL 2075259 (D.D.C. 2006).

Opinion

MEMORANDUM OPINION

URBINA, District Judge.

Granting the Defendant’s Motion to Dismiss and Denying the Plaintiff’s Motion for Leave to Perfect Service of Process

I. INTRODUCTION

The pro se plaintiff, a dual U.S. and German citizen, brings suit challenging tax assessments levied by the defendant against the plaintiffs deceased father. The plaintiff claims that his father was immune from German taxation as a member of the Allied Forces of Berlin from *4 1957 to 1989. Before the court are the defendant’s motion to dismiss and the plaintiffs motion for leave to perfect service of process. 1 Because the court lacks subject-matter jurisdiction over the plaintiffs claims, the court grants the defendant’s motion to dismiss. Consequently, because granting the plaintiff leave to perfect service would be futile, the court denies the plaintiffs motion to perfect service of process.

II. BACKGROUND

A. Factual History

The plaintiffs father, Dr. Samuel L. Ko-bre, began practicing law in Berlin in 1950. Compl. ¶ 95. In 1951, during the Allied Forces occupation of Germany, Kobre became a member of the Allied Forces of Berlin. Id. ¶ ¶ 95-98. As a member of the Allied Forces, according to the plaintiff, Kobre was immune from taxation in Germany. Id. ¶ 98. Between 1955 and 1957, however, Kobre received three letters informing him that his status as a member of the Allied Forces had terminated. Id. ¶ 115. But the plaintiff alleges that the letters Kobre received were insufficient to end his special status and terminate his immunity from the defendant’s jurisdiction. Id. ¶ ¶ 115-23. Moreover, the plaintiff maintains that Kobre’s status as a member of the Allied Forces did not automatically terminate in 1955 when the occupation of West Germany ended, id., and that Kobre continued to enjoy immunity from German jurisdiction and taxation, id. ¶ 133.

The plaintiff alleges that German authorities tried Kobre in a German criminal court for tax evasion for the period from 1957 to 1987, and the court concluded that because his status as a member of the Allied Forces had ended, he was not immune from taxation or jurisdiction in German courts. Id. ¶ ¶ 124-29. The court allegedly found Kobre guilty of tax evasion on February 23, 1989. Id. ¶ 129, p. 107. 2 In 1987, German revenue authorities filed a parallel civil suit concerning the tax assessments from 1957 to' 1987, and in 1989, they initiated another suit involving assessments for the years 1988 through 1989. Id. ¶ 128, p. 108. Kobre died before the case was resolved, and the assessments passed to the plaintiff as inheritance debt. Id.

The plaintiff brought a civil suit to challenge the tax assessments. Id. ¶ 129, p. 108. The civil court also ruled against the plaintiff, concluding that Kobre’s special status ended in 1955. Id. ¶ ¶ 130-134, p. 109-115. The German Federal Fiscal Court, the appellate court in Germany, dismissed the plaintiffs subsequent appeal in 1994 as unfounded, and the German Constitutional Court, the court of last resort, elected not to hear the case in 1996. Id. ¶ ¶ 141, 143. In 1999, the European Commission on Human Rights rejected the plaintiffs appeal. Id. ¶ 143.

B. Procedural History

On December 7, 2005, the plaintiff brought this action, claiming that his debt to the defendant is invalid because his father was a member of the Allied Forces of Berlin from 1951 until his death, and he was consequently immune from German jurisdiction and taxation. See Compl. He asserts that the court has jurisdiction over this case based on the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. *5 §§ 1330 et seq., the Alien Tort Claims Act (“ATCA”), 28 U.S.C. §§ 1350 et seq., and federal question jurisdiction, 28 U.S.C. § 1331. Id. ¶ 4.

On December 7, 2005, the plaintiff attempted to serve the defendant by mailing the complaint and summons to the Embassy of the Federal Republic of Germany in Washington, D.C. Def.’s Mot. at 1; Not. of Mailing of Compl. at 2. On January 3, 2006, the defendant moved the court to dismiss the plaintiffs complaint for lack of proper service of process and for lack of personal jurisdiction. The plaintiff opposes the defendant’s motion to dismiss and moves for leave to perfect service. The court first turns to the defendant’s motion.

III. ANALYSIS

A. The Court Grants the Defendant’s Motion to Dismiss

The defendant moves the court to dismiss the complaint for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2) and because service was improper. Def.’s Mot. at 4. The plaintiff responds to the motion by asking the court for leave to perfect service. Pl.’s Mot. at 4. In order to establish personal jurisdiction under the FSIA, a plaintiff must demonstrate subject-matter jurisdiction and proper service of process. Transaero, Inc., v. LaFuerza Aerea Boliviana, 30 F.3d 148, 151 (D.C.Cir.1994) (citing Tex. Trading & Milling Corp. v. Fed. Republic of Nigeria, 647 F.2d 300, 308 (2d Cir.1981)). Because the court lacks subject-matter jurisdiction over the plaintiffs claims, it dismisses the complaint for lack of personal jurisdiction, and it denies the plaintiffs motion to perfect service.

1. Legal Standard for a Motion to Dismiss Pursuant to Rule 12(b)(1)

Federal courts are courts of limited jurisdiction and the law presumes that “a cause lies outside this limited jurisdiction.” Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994); St. Paul Mercury Indem. Co. v. Red Cab Co., 303 U.S. 283, 288-89, 58 S.Ct. 586, 82 L.Ed. 845 (1938); see also Gen. Motors Corp. v. Envtl. Prot. Agency, 363 F.3d 442, 448 (D.C.Cir.2004) (noting that “[a]s a court of limited jurisdiction, we begin, and end, with an examination of our jurisdiction”).

Because “subject-matter jurisdiction is an ‘Art. Ill as well as a statutory requirement!,] no action of the parties can confer subject-matter jurisdiction upon a federal court.’ ” Akinseye v. District of Columbia,

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Bluebook (online)
444 F. Supp. 2d 1, 2006 U.S. Dist. LEXIS 51095, 2006 WL 2075259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gutch-v-federal-republic-of-germany-dcd-2006.