Karageorge v. Granite Group Reality Services

CourtDistrict Court, D. South Carolina
DecidedMarch 8, 2024
Docket2:23-cv-05895
StatusUnknown

This text of Karageorge v. Granite Group Reality Services (Karageorge v. Granite Group Reality Services) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Karageorge v. Granite Group Reality Services, (D.S.C. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA CHARLESTON DIVISION

STEFANIE KARAGEORGE, ) ) Plaintiff, ) ) No. 2:23-cv-05895-DCN vs. ) ) ORDER GRANITE GROUP REALTY SERVICES,1 ) and ALAN DESTEFANO, Individually, ) ) Defendants. ) _______________________________________) This matter is before the court on defendants Granite Group Realty Services (“Granite”) and Alan Destefano’s (“Destefano”) (together, “defendants”) motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(2). ECF No. 4. For the following reasons, the court grants the motion. I. BACKGROUND2 Plaintiff Stephanie Karageorge (“Karageorge”) is a South Carolina resident who owns a rental property in Plymouth, New Hampshire (the “Property”). ECF No. 7-1 ¶¶ 3–4. She claims that she hired Granite to manage the Property for her. ECF No. 1-1, Compl. ¶ 6. Granite is based in New Hampshire, and Destefano is Granite’s broker and owner. Id. ¶¶ 2–3. In an affidavit supplied with defendants’ motion, Destefano states that he is a resident of New Hampshire and that neither he nor Granite has any business presence in South Carolina. ECF No. 4-1 ¶¶ 3–7.

1 The docket indicates that defendant Granite Group Realty Services is called “Granite Group Reality Services,” but the parties spell the name of this defendant as “Granite Group Realty Services” in their filings. The court will follow the filings and refer to the defendant as “Granite Group Realty Services.” 2 The court recites the factual background in a light most favorable to Karageorge. See Combs v. Bakker, 886 F.2d 673, 676 (4th Cir. 1989). This lawsuit stems from Karageorge’s allegations that one of Granite’s agents, Ronda Rayno (“Rayno”), entered the Property in February 2023 while under the influence of marijuana and painkillers, attempted to turn off the lights while exiting the Property, but inadvertently turned off the furnace instead. Compl. ¶¶ 9–11. Pipes in the Property froze.3 See Compl. ¶ 13. Rayno later went to the Property to meet a repairman,

who was called to check on the frozen pipes. See id. ¶¶ 9, 13. Once the repairman arrived, Rayno started smoking marijuana in the Property, began hallucinating, and decided to leave the Property to go “sleep.” Id. ¶¶ 14, 16. After being left without supervision from Granite, the repairman thawed the pipes using a heater, which resulted in the pipes bursting and flooding the Property. Id. ¶¶ 16–17. The flooding caused extensive water damage throughout the Property. Id. ¶ 16. Despite Destefano charging Karageorge $250.00 for cleanup, the cleanup never occurred, and the Property was still in disarray as of April 3, 2023. Id. ¶ 20. Beyond that, potential tenants were unable to move in due to the Property’s state of disrepair. Id. ¶ 19. These

potential tenants had already paid for their first month’s rent, and despite their being unable to move in, Granite kept this money. Id. Karageorge maintains that she has lost a significant amount of rental income because of her inability to rent out her Property over several ensuing months. Id. After detailing the alleged frozen pipe incident in her complaint, Karageorge goes on to briefly list various other purportedly tortious acts by Granite and its employees.

3 Though not entirely relevant to the pending motion, the complaint is unclear on whether Karageorge is alleging the pipes froze as a result of Rayno’s actions. While that is certainly the implication, Karageorge alleges that Rayno entered the Property and turned the furnace off on February 6, 2023, but Karageorge seems to be saying the pipes froze on February 5, 2023. See id. ¶¶ 9–13, 15. She accuses Rayno of scheming to overcharge property owners for repairs; she claims that Granite lost the keys to her Property and left it unlocked; and she contends Granite damaged her Property in other ways, such as by removing her smoke detector, scratching her wooden floors, painting her bathroom a different color, failing to fix holes, and failing to fix her garbage disposal. See id. ¶¶ 17–18, 20.

Karageorge initially filed this lawsuit in the Charleston County Court of Common Pleas on September 27, 2023. Karageorge v. Granite Grp. Reality Servs., No. 2023-CP- 10-04744 (Charleston Cnty. Ct. C.P. Sept. 27, 2023). She alleges six causes of action: (1) breach of contract, (2) breach of contract accompanied by a fraudulent act, (3) negligence, (4) negligent misrepresentation, (5) unjust enrichment, and (6) violation of the Unfair Trade Practices Act. Compl. ¶¶ 21–50. She served the complaint on defendants on October 17, 2023, and this case was removed to this court on November 17, 2023. ECF No. 1. Later the same day of removal, defendants moved to dismiss this case pursuant to Federal Rule of Civil Procedure 12(b)(2) based predominantly on their

contention that this court lacks personal jurisdiction over them. ECF No. 4. Karageorge responded in opposition on December 14, 2023. ECF No. 7. As such, this matter is now ripe for the court’s review. II. STANDARD A party may challenge the court’s power to exercise personal jurisdiction over it through a motion under Federal Rule of Civil Procedure 12(b)(2). “When a court’s personal jurisdiction is properly challenged by a Rule 12(b)(2) motion, the jurisdictional question thus raised is one for the judge, with the burden on the plaintiff ultimately to prove the existence of a ground for jurisdiction.” Combs v. Bakker, 886 F.2d 673, 676 (4th Cir. 1989). The plaintiff’s burden varies depending on the stage of the litigation, the posture of the case, and the evidence before the court. Grayson v. Anderson, 816 F.3d 262, 268 (4th Cir. 2016); Sec. & Exch. Comm’n v. Receiver for Rex Ventures Grp., LLC, 730 F. App’x 133, 136 (4th Cir. 2018). “As with many pretrial motions, a court has broad discretion to determine the

procedure that it will follow in resolving a Rule 12(b)(2) motion.” Grayson, 816 F.3d at 268. The district court may resolve a personal jurisdiction question with reference only to “the parties’ motion papers, affidavits attached to the motion, supporting legal memoranda, and the allegations in the complaint.” Id. In these instances, “a plaintiff need only make a prima facie showing of personal jurisdiction to survive the jurisdictional challenge.” Id. “In considering a challenge on such a record, the court must construe all relevant pleading allegations in the light most favorable to the plaintiff, assume credibility, and draw the most favorable inferences for the existence of jurisdiction.” Combs, 886 F.2d at 676. “[H]owever, the court need not ‘credit

conclusory allegations or draw farfetched inferences.’” Masselli & Lane, PC v. Miller & Schuh, PA, 215 F.3d 1320 (4th Cir. 2000) (unpublished table decision) (quoting Ticketmaster-New York, Inc. v. Alioto, 26 F.3d 201, 203 (1st Cir. 1994)). If the plaintiff’s allegations are sufficient to make a prima facie case for personal jurisdiction, the court may deny the Rule 12(b)(2) motion and later revisit the question or defer ruling on the motion until the parties have had the opportunity to develop the factual record. Combs, 886 F.2d at 676; Sneha Media & Ent., LLC v. Associated Broad. Co. P Ltd., 911 F.3d 192, 196–97 (4th Cir. 2018).

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Karageorge v. Granite Group Reality Services, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karageorge-v-granite-group-reality-services-scd-2024.