Hunt v. Calhoun County Bank, Inc.

8 F. Supp. 3d 720, 2014 U.S. Dist. LEXIS 39620, 2014 WL 1233465
CourtDistrict Court, E.D. Virginia
DecidedMarch 25, 2014
DocketNo. 1:13cv952 (JCC/TCB)
StatusPublished
Cited by4 cases

This text of 8 F. Supp. 3d 720 (Hunt v. Calhoun County Bank, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hunt v. Calhoun County Bank, Inc., 8 F. Supp. 3d 720, 2014 U.S. Dist. LEXIS 39620, 2014 WL 1233465 (E.D. Va. 2014).

Opinion

MEMORANDUM OPINION

JAMES C. CACHERIS, District Judge.

This matter is before the Court on Defendants Calhoun County Bank, Inc. (“Calhoun County Bank”) and James L. Bennett’s (“Bennett”; together “Defendants”) Joint Motion to Dismiss (“Motion”). [Dkt. 7.] For the following reasons the Court will grant Defendants’ Motion to Dismiss.

I. Background

This case arises out of an alleged breach of the contractual relationship between Plaintiff William H.G. Hunt, Sr. (“Hunt”) and Defendants and the alleged fraudulent misrepresentation by Defendant Bennett.

A. Factual Background

Calhoun County Bank is a West Virginia Corporation, which Plaintiff alleges conducts business and has depositors in Virginia. (Compl. [Dkt. 1] ¶ 2.) Defendant Ben[724]*724nett is the President of Calhoun County-Bank and a member of its Board of Directors. (Compl. ¶ 3.) Plaintiff is a citizen and a resident of Virginia. (Compl. ¶ 1.)

According to the Complaint, on or about June 1, 2007, Hunt entered into a contract with Calhoun County Bank through its agent Bennett. Pursuant to this contract, Calhoun County Bank agreed to sell to Hunt certain royalty interests that were in the custody of Calhoun County Bank for the sum of $40,000.00. (Compl. ¶ 8.) Hunt alleges that in June 2007, he transferred $40,000.00 to an agent of Calhoun County Bank. (Compl. ¶ 9.) Calhoun County Bank, however, refused to transfer ownership of the royalty interests, in contravention of the contract. (Compl. ¶ 9.) Plaintiff avers that he has suffered damages in excess of $180,000.00 and seeks specific performance of the contract, or in the alternative, compensatory damages. (Compl. ¶ 11.) Plaintiff further alleges that Bennett fraudulently misrepresented his intention to transfer the royalty interests to Hunt. (Compl. ¶ 13.)

On October 11, 2007, Plaintiff filed a complaint in the Circuit Court of Loudoun County alleging breach of contract and constructive fraud with the same factual basis as this action. (Def. Mem. [Dkt. 8-3] Ex. C.) On February 11, 2013, the Circuit Court of Loudoun County granted Plaintiffs Motion for Nonsuit pursuant to § 8.01-380 of the Code of Virginia. (Def. Mem. [Dkt. 8-4] Ex. D.)

B. Procedural Background

On August 6, 2013, Plaintiff filed his Complaint against Defendants Calhoun County Bank and Bennett seeking damages based on theories of breach of contract and fraud. [Dkt. 1.] On December 23, 2013, Defendants filed their Motion to Dismiss and accompanying memorandum of law. [Dkts. 7-8.] Plaintiff filed his opposition on December 27, 2013. [Dkt. 10.] On January 2, 2014, Defendants filed their reply. [Dkt. 11.] The Court held a hearing on Defendants’ Motion to Dismiss on February 25, 2014. [Dkt. 16.] During the hearing, Plaintiff submitted an exhibit regarding the electronic services offered on Calhoun County Bank’s website. This exhibit consists of a screenshot of Calhoun County Bank’s website dated February 20, 2014. [Dkt. 17-1.] The Court ordered Defendant to file a response regarding Plaintiffs exhibit within one week. On March 5, 2014, Defendants filed their Supplemental Memorandum in Support of Their Joint Motion to Dismiss the Complaint. [Dkt. 17.] On March 10, 2014, Plaintiff filed his Supplemental Memorandum in Opposition to Defendants’ Motion to Dismiss. [Dkt. 18.]

Defendants’ Motion to Dismiss is before the Court.

II. Standard of Review

A. Personal Jurisdiction

Federal Rule of Civil Procedure 12(b)(2) permits dismissal of an action where the Court lacks personal jurisdiction over the parties. The plaintiff bears the burden of demonstrating personal jurisdiction by a preponderance of the evidence once its existence is questioned by the defendant. Combs v. Bakker, 886 F.2d 673, 676 (4th Cir.1989). When a district court decides a pretrial personal jurisdiction dismissal motion without an evidentiary hearing, however, the plaintiff need only prove a prima facie case of personal jurisdiction. Mylan Labs., Inc. v. Akzo, N.V., 2 F.3d 56, 60 (4th Cir.1993); Combs, 886 F.2d at 676. In deciding whether the plaintiff has proved a prima facie case, the district court must draw all reasonable inferences arising irom the proof, and resolve all factual disputes in the plaintiffs favor. Combs, 886 F.2d at 676; Wolf v. Richmond Cnty. Hosp. Auth., 745 F.2d 904, 908 (4th Cir. [725]*7251984), cert. denied, 474 U.S. 826, 106 S.Ct. 83, 88 L.Ed.2d 68 (1985).

B. Failure to State a Claim

Rule 12(b)(6) allows a court to dismiss those allegations which fail “to state a claim upon which relief can be granted.” Fed.R.Civ.P. 12(b)(6). A 12(b)(6) motion tests the legal sufficiency of the complaint. Giarratano v. Johnson, 521 F.3d 298, 302 (4th Cir.2008). A court reviewing a complaint on a 12(b)(6) motion must accept well-pleaded allegations as true and must construe factual allegations in favor of the plaintiff. See Randall v. United States, 30 F.3d 518, 522 (4th Cir.1994).

A court must also be mindful of the liberal pleading standards under Rule 8, which require only “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed.R.Civ.P. 8. While Rule 8 does not require “detailed factual allegations,” a plaintiff must still provide “more than labels and conclusions” because “a formulaic recitation of the elements of a cause of action will not do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555-56, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (citation omitted).

To survive a 12(b)(6) motion, “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Twombly, 550 U.S. at 570, 127 S.Ct. 1955). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. However, “[threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice” to meet this standard, id., and a plaintiffs “[fjactual allegations must be enough to raise a right to relief above the speculative level.... ” Twombly, 550 U.S. at 555, 127 S.Ct. 1955. Moreover, a court “is not bound to accept as true a legal conclusion couched as a factual allegation.” Iqbal, 556 U.S. at 678, 129 S.Ct. 1937.

C. Rule 9(b)

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8 F. Supp. 3d 720, 2014 U.S. Dist. LEXIS 39620, 2014 WL 1233465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hunt-v-calhoun-county-bank-inc-vaed-2014.