Houston v. Pavilion USA 2020, Inc.

CourtDistrict Court, District of Columbia
DecidedFebruary 9, 2023
DocketCivil Action No. 2022-0383
StatusPublished

This text of Houston v. Pavilion USA 2020, Inc. (Houston v. Pavilion USA 2020, Inc.) 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
Houston v. Pavilion USA 2020, Inc., (D.D.C. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

GREGORY HOUSTON, Plaintiff v. Civil Action No. 22-00383 (CKK) PAVILION USA 2020, INC., et al., Defendants.

MEMORANDUM OPINION (February 9, 2023)

Plaintiff Gregory Houston (“Plaintiff”) filed a Complaint in this case against Defendants

Pavilion USA 2020, Inc. (“Pavilion”); Frederick Bush, then-Chairman of the Pavilion Board; and

Alan M. Dunn, then-Chief Legal Officer and a Director of the Pavilion Board (collectively,

“Defendants”) alleging that Bush and Dunn terminated his employment as Pavilion’s Chief

Executive Officer after calling attention to Bush and Dunn’s misconduct. See Compl. at 1–2.

Plaintiff brings claims of wrongful termination in violation of 41 U.S.C. § 4712, wrongful

termination in violation of public policy, and tortious interference with contract. Id. at 14–18.

Defendants filed the pending [13] Motion to Dismiss under Federal Rules of Civil Procedure

12(b)(1) and 12(b)(6). Defendants argue that Plaintiff has failed to plausibly state a claim under

§ 4712 because he is not an employee of a government contractor and, for the same reason,

Plaintiff has therefore failed to demonstrate subject matter jurisdiction under 28 U.S.C. § 1331.

See Defs.’ Mot. at 8, 12.

Upon consideration of the pleadings, 1 the relevant legal authorities, and the record for

1 The Court’s consideration has focused on the following documents:

1 purposes of this motion, the Court finds that the record is not sufficiently developed to decide the

material factual dispute regarding whether Plaintiff is an employee of a government contractor

such that he can bring a claim under § 4712, which would be necessary for the Court to have

subject matter jurisdiction. Accordingly, the Court DENIES WITHOUT PREJUDICE

Defendants’ Motion to Dismiss and recommends the parties engage in limited jurisdictional

discovery upon a motion by Plaintiff under Federal Rule of Civil Procedure 56(f).

I. BACKGROUND

The Court does “not accept as true… the plaintiff’s legal conclusions or inferences that

are unsupported by the facts alleged.” Ralls Corp. v. Comm. on Foreign Inv. in U.S., 758 F.3d

296, 315 (D.C. Cir. 2014). Additionally, as will be discussed later, the Court does not accept as

true the allegations in Plaintiff’s Complaint in considering Defendants’ factual challenge to the

Court’s jurisdiction. However, for the purposes of presenting a factual background, the Court

recites allegations from Plaintiff’s Complaint.

A. Bid Submitted to the State Department and the Creation of Pavilion

The United States participates in each World’s Fair by constructing a pavilion to represent

the country. Compl. at 2. On February 16, 2018, the State Department announced a Request for

Proposals (“RFP”) for a partner to run the United States’ participation in the 2020 World Expo in

Dubai, United Arab Emirates. Id. ¶¶ 8–9. Plaintiff Gregory Houston and Defendant Frederick

Bush decided to try to win the RFP. Id. ¶ 11. Along with Defendant Alan M. Dunn, they

• Pl.’s First Am. Compl. (“Compl.”), ECF No. 12; • Defs.’ Mot. to Dismiss (“Defs.’ Mot.”), ECF No. 13; • Pl.’s Opp’n to Defs.’ Mot. to Dismiss (“Pl.’s Opp’n”), ECF No. 14; and • Defs.’ Reply to Pl.’s Opp’n to Defs.’ Mot. to Dismiss (“Defs.’ Reply”), ECF No. 15. In an exercise of its discretion, the Court finds that holding oral argument in this action would not be of assistance in rendering a decision. See LCvR 7(f).

2 incorporated Big Things Group, LLC (“BTG”) on March 9, 2018 to submit a bid to the State

Department. Id. ¶ 12. Thomas Downing also assisted in the bid by lending his expertise in

international financial management. Id. Because the RFP required the use of a 501(c)(3)

organization as the primary vehicle for fundraising, the entity Expo Group 2020 was

incorporated on April 6, 2018 and applied for 501(c)(3) status. Id. ¶ 18.

The submitted bid designated Bush as Chief Executive Officer, Dunn as External

Counsel, and Plaintiff as Deputy Chief Executive Officer. Id. ¶ 15. Downing was to serve as

Chief Financial Officer. Id. In its bid, BTG stated that it was the prime implementer on behalf

of a collaborative consortium and that “upon signing a LOI with the Department of State, all

activities… shall commence under Expo Group 2020.” Id. ¶ 19.

On May 30, 2018, the State Department issued a Letter of Intent (“LOI”) selecting BTG

as the successful bidder. Id. ¶ 20 (citing Compl. Ex. 1). The LOI stated that “[t]his letter

initiates the Project Launch phase” and that “Big Things Group may now proceed with

fundraising to complete the project.” Compl. Ex. 1. It continued that the second phase of the

project––the construction and participation––“can only begin once Big Things Group has

demonstrated that sufficient funding is available to build, operate, and dismantle the Pavilion and

the Department has signed a Memorandum of Agreement with the organization.” Id. The LOI

also included a set of priority topics for BTG to address, the first of which was whether the

names Expo Group 2020 or EG2020 complied with the expo organizer’s guidelines. Id. On

June 26, 2018, Expo Group 2020 was renamed Pavilion USA 2020, Inc. Compl. ¶ 21.

After the LOI was issued, Bush decided that he only wanted to be an independent

contractor rather than an employee of Pavilion USA. Id. ¶ 22. Bush therefore became Chairman

of Pavilion’s Board of Directors and Plaintiff became President and Chief Executive Officer of

3 Pavilion. Id.

Pavilion began carrying out the functions required by the LOI. Id. ¶ 23. Plaintiff was

identified by the State Department as the primary contact for the expo’s organizers. Id. (citing

Compl. Ex. 2). Plaintiff allegedly asked the State Department whether it required a formal

novation agreement between BTG and Pavilion and was told that was unnecessary. Id.

B. Alleged Mismanagement by Dunn and Bush and Retaliation Against Plaintiff

During 2018, Plaintiff and Downing became concerned that Dunn and Bush were

mismanaging the organization to their own benefit. Id. ¶ 25. As a result, Downing announced he

was resigning on January 16, 2019. Id. ¶ 26. He submitted a financial report and a report on

contracts and services agreements to the Pavilion Board as a whistleblower, id., and also

explained to Plaintiff how Bush and Dunn were enriching themselves with charitable funds at the

expense of the organization, id. ¶ 27. After Downing’s resignation, Plaintiff informed Bush that

he intended to retain outside legal counsel to review Downing’s reports and disputed transactions

and provide an opinion for the Board and the State Department, as was required under the

commitments of the bid and in compliance with 41 U.S.C. § 4712(a)(2)(G). Id. ¶ 34. Plaintiff

also notified Bush in writing that he intended to suspend Dunn pending the consultation with

outside counsel. Id. ¶ 35. Bush instructed Plaintiff not to hire outside counsel nor suspend Dunn

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