Jud Ireland v. DigiTraidx LLC, et al.

CourtDistrict Court, S.D. Florida
DecidedJune 30, 2026
Docket1:24-cv-23069
StatusUnknown

This text of Jud Ireland v. DigiTraidx LLC, et al. (Jud Ireland v. DigiTraidx LLC, et al.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jud Ireland v. DigiTraidx LLC, et al., (S.D. Fla. 2026).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA

CASE NO. 24-cv-23069-ALTMAN/Goodman

JUD IRELAND,

Plaintiff,

v.

DigiTraidx LLC, et al.,

Defendants. __________________________________________/ ORDER

A creditor sued a start-up company, its alleged successor, and two officers of those companies. The Defendants now move to dismiss all eight counts. We referred the motion to United States Magistrate Judge Jonathan Goodman. After careful review, we GRANT the motion to dismiss. THE FACTS Our Plaintiff—Jud Ireland—claims that he “lent . . . $485,000,” “secured by three separate promissory notes,” to Dealer Market Exchange PR, LLC (“DMX”), a “start-up company formed in Puerto Rico” whose “purpose was to develop cloud-based software and applications for use in the automobile industry.” Amended Complaint (the “AC”) [ECF No. 15] ¶¶ 2, 7, 21; see also id. ¶ 8 (“Additionally, Ireland is the assignee of [other] creditors” who “were themselves creditors and shareholders of DMX and who have assigned their legal claims against DMX stemming from its default on their loans to Ireland.”). According to the Plaintiff, “two corporate insiders”—Javier Ruiz and Adrian Jayasinha—“used their positions as investors, officers, and managers of DMX to orchestrate the fraudulent transfer of essentially all of DMX’s assets to DigiTraidx, a successor company which Jayasinha and Ruiz controlled.” Id. ¶ 1; see also id. ¶¶ 24–25 (alleging that Ruiz served as “an officer and manager of DMX, and he held an ownership interest in the company,” and that Jayasinha “owned approximately 25% of DMX”). Specifically, the AC asserts that, in “December of 2019, DMX transferred substantially all of its assets, including the Software, to . . . Jayasinha and Ruiz [ ] for pennies on the dollar in a transaction that was concealed from DMX’s creditors, including Ireland,” only for Jayasinha and Ruiz to “immediately transfer[ ] those same assets to DigiTraidx . . . for purposes of continuing DMX’s business.” Id. ¶ 3. “Despite the fact that DigiTraidx has continued DMX’s business as its direct successor,” the AC continues, “neither DMX nor

DigiTraidx has agreed to satisfy DMX’s creditors.” Id. ¶ 84. In December 2023, our Plaintiff—at that time proceeding pro se—sued some two-dozen parties (including DMX, DigiTraidx, Jayasinha, and Ruiz) in state court. See Exhibit B [ECF No. 1-3] at 1. One such party—Carzato LLC (“Carzato”)—removed the action to federal court in August 2024. See generally Notice of Removal [ECF No. 1]; see also Removal Status Report [ECF No. 6] at 1 n.1 (“[D]espite the Complaint being filed on December 22, 2023, only Carzato has been served.”). In October 2024, the Plaintiff—now counseled—filed the operative AC, naming only four parties: DMX, DigiTraidx, Jayasinha, and Ruiz. On December 18, 2024, the Plaintiff filed proof of service as to Jayasinha. See Summons Returned Executed [ECF No. 24]. On January 27, 2025, he moved for an extension of time to effectuate service as to DigiTraidx, DMX, and Ruiz. See Motion for Extension [ECF No. 25] at 1. Three days later, the Plaintiff amended that motion “to include a request to also extend the time for

service of process upon . . . Jayasinha.” Amended Motion for Extension [ECF No. 26] at 1 n.1; see also id. at 6 (“Upon inspection of the information provided by the process server, Plaintiff in good faith questions the sufficiency of this service, as Ms. Portillo was apparently a ‘house sitter’ for Mr. Jayasinha, thus raising a question as to whether she ‘resided’ at the address at the time of service.” (cleaned up)). On February 26, 2025, the Plaintiff filed proof of service as to DigiTraidx, DMX, and Ruiz. See Executed Summonses [ECF Nos. 27–29]. The next day, he (again) filed proof of service as to Jayasinha. See Executed Summons [ECF No. 30]. On March 10, 2025, DigiTraidx, Jayasinha, and Ruiz sought an extension of time to respond to the AC. See Motion for Extension [ECF No. 33]. That request noted that “counsel is not in the process of being retained to represent . . . DMX,” that “a Certificate of Cancellation of the Certificate of Organization for DMX was entered by the Secretary

of State on December 30, 2023,” and that “the status of [DMX] is ‘cancelled,’ with a termination date of December 30, 2023[.]” Id. at 1 n.1. On March 12, 2026, we issued an order denying as moot the motions for extension of time to serve the Defendants and giving the Defendants additional time to respond to the AC. See Paperless Order [ECF No. 34]. And, on March 21, 2025, DigiTraidx, Ruiz, and Jayasinha filed a Removal Status Report [ECF No. 37], reiterating that DMX was “terminat[ed]” on “December 30, 2023, per the Department of State.” Id. at 1 n.1. In April 2025, DigiTraidx, Ruiz, and Jayasinha (the “Defendants”)—but not DMX—filed a Motion to Dismiss (the “MTD”) [ECF No. 45], arguing (among other things) that the Plaintiff “failed to properly serve the Defendants” and “did not and cannot plead personal jurisdictions over the Defendants.” MTD at 6. In May 2025, the Plaintiff filed a Response in Opposition to the MTD (the “Response”) [ECF No. 52], and the Defendants filed a Reply in Support of the MTD (the “Reply”) [ECF No. 56]. That same month, we referred the MTD to United States Magistrate Judge Enjoliqué

A. Lett. See Order of Referral [ECF No. 47]. The referral was later reassigned to United States Magistrate Judge Jonathan Goodman. See Order Recusing Judge and Reassigning Case [ECF No. 48]. In July 2025, Magistrate Judge Goodman issued his Report and Recommendations (the “R&R”) [ECF No. 58]. In August 2025, the parties filed objections to the R&R as well as responses to those objections. See Plaintiff’s Limited Objection [ECF No. 63]; Defendants’ Partial Objection [ECF No. 64]; Jayasinha’s Response [ECF No. 65]; Plaintiff’s Response to Partial Objection [ECF No. 66]. In September 2025, the Plaintiff—without explanation—(yet again) filed proof of service as to DigiTraidx. See Executed Summons [ECF No. 67]. THE LAW

“To survive a motion to dismiss under Rule 12(b)(6), a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Megladon, Inc. v. Vill. of Pinecrest, 661 F. Supp. 3d 1214, 1221 (S.D. Fla. 2023) (Altman, J.) (cleaned up). “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.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). “In deciding a Rule 12(b)(6) motion to dismiss, the court must accept all factual allegations in a complaint as true and take them in the light most favorable to plaintiff, but legal conclusions without adequate factual support are entitled to no assumption of truth.” Dusek v. JPMorgan Chase & Co., 832 F.3d 1243, 1246 (11th Cir. 2016) (cleaned up). ANALYSIS Under Local Magistrate Rule 4(b), parties have fourteen days from the date of being served with a copy of an R&R within which to file written objections with the relevant United States District Judge. See also FED. R. CIV. P. 72(b)(3). After parties properly object to a magistrate judge’s R&R, district courts must review that disposition de novo. See ibid. But, when no party has timely objected, “the court need only satisfy itself that there is no clear error on the face of the record in order to

accept the recommendation.” FED. R. CIV. P. 72 advisory committee’s notes (citation omitted). Although Rule 72 itself is silent on the standard of review, the Supreme Court has acknowledged that Congress’s intent was to require de novo review only where objections have been properly filed. See Thomas v.

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Jud Ireland v. DigiTraidx LLC, et al., Counsel Stack Legal Research, https://law.counselstack.com/opinion/jud-ireland-v-digitraidx-llc-et-al-flsd-2026.