King v. Fidelity Investments

District Court, N.D. California·Decided September 20, 2024·No. 3:24-cv-02148·Unknown

Opinion

TROY DEMOND KING, Case No. 24-cv-02148-SI

Plaintiff, ORDER GRANTING MOTION TO v. DISMISS AND GRANTING MOTION TO DECLARE PLAINTIFF A Defendant. Re: Dkt. No. 14

Pro se plaintiff Troy Demond King filed a complaint against defendant Fidelity Investments making vague and conclusory allegations that defendant allegedly unlawfully seized funds in his account. Defendant responded by filing a motion to dismiss and a motion to declare plaintiff a vexatious litigant. After giving plaintiff notice and an opportunity to respond, the Court grants both motions. Pursuant to Civil Local Rule 7-1(b), the Court finds this matter appropriate for resolution without oral argument. On April 10, 2024, plaintiff Troy Demond King filed a complaint against Fidelity Investments. Dkt. No. 1 at 1. Using the court’s pro se complaint form, plaintiff asserted diversity jurisdiction and labeled himself as a “Non-Citizen National (America).” Id. at 3. For the amount in controversy, plaintiff listed “$2,000,000.000 (Two Million) US Dollars per occurrence, and $100,000.00 (One Hundred Thousand) US Dollars per day penalty.” Id. at 4. According to plaintiff’s statements on the form, he entered into a contract to bank with defendant and then “Defendant & Fraud team, Victoria, and Sara seized my account unlawfully, after being noticed The magistrate judge approved plaintiff’s motion to proceed in forma pauperis and defendant was served on May 10, 2024. Dkt. Nos. 6 and 9. On May 31, 2024, defendant filed a motion to dismiss alongside a motion to declare plaintiff a vexatious litigant, requesting judicial notice of more than 30 cases that plaintiff has filed in federal and state court in the last several years, including 18 cases filed in 2024. Dkt. No. 14. In their motion to dismiss, defendants argued that “Fidelity Investments” is a trade name and is not a proper defendant, plaintiff failed to state a claim, and plaintiff has not properly established diversity jurisdiction because plaintiff’s claimed amount in controversy is “patently implausible and deficiently plead.” Id. at 9-12. This Court then ordered plaintiff to “respond to defendant’s motion in writing explaining why his case should not be dismissed and why he should not be declared a vexatious litigant in federal court.” Dkt. No. 17. The Court noted that plaintiff was declared a vexatious litigant in California state court on January 5, 2023. Id., citing Dkt. No. 14-2, Exs. 3-5. The Court directed plaintiff to free legal resources for pro se litigants. Id. Plaintiff’s additional submission to the Court provided the following statement of his claim: “1. ‘Plaintiff’ entered in a contract with Fidelity Investment Brokerage firm to liquidate U.S. Treasuries. [¶] 2. ‘Plaintiff’ account was closed w/o due process for false accusations of alleged fraud. [¶] 3. ‘Plaintiff’ 4th Amendment, 5th Amendment, 6th Amendment., Violation for seizure of funds, plus unfounded accusations of fraud.” Dkt. No. 19. Regarding the pending motion to declare him a vexatious litigant, plaintiff wrote a definition of “vexatious” and then stated, “‘Plaintiff’ has never been vexatious in any actions, at this point ‘Plaintiff’ doesn’t have counsel/attorney helping with any procedure because of alleged vexatious accusations. ‘Plaintiff’ is not a bully, annoying or a threat, these are peaceful processes.” Id. I. Motion to Dismiss A. Legal Standard Under Federal Rule of Civil Procedure 12(b)(6), a district court must dismiss a complaint if dismiss, the plaintiff must allege “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). This “facial plausibility” standard requires the plaintiff to allege facts that add up to “more than a sheer possibility that a defendant has acted unlawfully.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). While courts do not require “heightened fact pleading of specifics,” a plaintiff must allege facts sufficient to “raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555, 570. In deciding whether the plaintiff has stated a claim upon which relief can be granted, the court must assume that the plaintiff’s allegations are true and must draw all reasonable inferences in the plaintiff’s favor. See Usher v. City of Los Angeles, 828 F.2d 556, 561 (9th Cir. 1987). However, the court is not required “to accept as true allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir. 2008) (internal quotations and citation omitted). Pro se complaints are held to “less stringent standards than formal pleadings drafted by lawyers.” Haines v. Kerner, 404 U.S. 519, 520 (1972). Where a plaintiff is proceeding pro se, the Court has an obligation “to construe the pleadings liberally and to afford the [plaintiff] the benefit of any doubt.” Bretz v. Kelman, 773 F.2d 1026, 1027 n.1 (9th Cir. 1985) (en banc). However, pro se pleadings must still allege facts sufficient to allow a reviewing court to determine whether a claim has been stated. Ivey v. Bd. of Regents of Univ. of Alaska, 673 F.2d 266, 268 (9th Cir. 1982). Dismissal of a pro se complaint without leave to amend is proper only if it is “absolutely clear that the deficiencies of the complaint could not be cured by amendment.” Akhtar v. Mesa, 698 F.3d 1202, 1212 (9th Cir. 2012) (internal quotations and citation omitted). B. Analysis Defendants argue that plaintiff failed to allege facts stating a plausible claim, improperly sued the trade name “Fidelity Investments,” and lacks diversity jurisdiction. The first argument is sufficient to dismiss the complaint. Plaintiff has only pled vague statements that he entered some financial arrangement with defendant before defendant closed his account. Dkt. Nos. 1 and 19. process. Id. Plaintiff does not provide any specific factual allegations about his alleged transactions with defendant. Id. While a court must accept a plaintiff’s pleaded facts as true and give pro se plaintiffs the benefit of the doubt, it need not “accept as true allegations that are merely conclusory, unwarranted deductions of fact, or unreasonable inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d at 1055. Plaintiff has not “raise[d] a right to relief above the speculative level.” See Twombly, 550 U.S. at 555. Further, it is clear to the Court that, given plaintiff’s unhelpful opposition to this motion and his lengthy history of frivolous or unprosecuted litigation discussed further below, granting leave to amend would not lead to plaintiff curing the defective complaint. The Court therefore dismisses the complaint without leave to amend. II. Motion to Declare Plaintiff a Vexatious Litigant A. Legal Standard When a plaintiff is declared a vexatious litigant, the court enters an order stating pre-filing restrictions for that plaintiff for the court clerk to keep on file. “The All-Writs Act, 28 U.S.C. § 1651(a), provides district courts with the inherent power to enter pre-filing orders against vexatious litigants.” Molski v. Evergreen Dynasty Corp., 500 F.3d 1

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