Klayman v. Barmak

634 F. Supp. 2d 56, 2009 U.S. Dist. LEXIS 60048, 2009 WL 2015141
District Court, District of Columbia·Decided July 14, 2009·No. Civil Action 08-1005 (JDB)·Published·Cited by 6 cases

Opinion

MEMORANDUM OPINION

JOHN D. BATES, District Judge.

This is a breach of contract and breach of fiduciary duty case filed by Larry Klay *59 man (“plaintiff’) against David Barmak, an individual, and Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo, P.C., a law firm (collectively, “defendants”). Plaintiff alleges that defendants breached their fiduciary obligations to him by disclosing false confidential information and by counseling his former employer, Judicial Watch, to assert false claims against him and to interfere with his professional life. Now before the Court is defendants’ Rule 12(b)(6) motion to dismiss for failure to state a claim. For the reasons discussed below, defendants’ motion will be denied in part and granted in part.

BACKGROUND

Klayman is the former chairman, general counsel, and treasurer of Judicial Watch. Am. Compl. ¶ 5. He currently resides in Florida. Id. ¶ 2. Barmak resides in Maryland, practices law in Washington, D.C., and is a partner in the law firm Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo (“Mintz Levin”). Id. ¶ 3; Defs.’ Decl. ¶ 1. Mintz Levin has offices in Massachusetts, Connecticut, New York, California, Washington D.C., and London. Id. ¶ 16. Barmak serves as outside general counsel for Judicial Watch, and Klayman alleges that Barmak also represented him individually. Am. Compl. ¶ 6. Klayman ceased employment with Judicial Watch in September 2003. Id. ¶ 5. Defendants aided in brokering a severance agreement between Klayman and Judicial Watch, in which Klayman was represented by separate counsel. Id. ¶ 8. Some of the allegations in the instant case arise from disagreements about the execution of that severance agreement. See id. ¶ 22(E).

In 2006, Klayman brought suit in this Court against Judicial Watch and others alleging fraudulent misrepresentation, breach of contract, unjust enrichment, violation of the Lanham Act, and defamation (“the 2006 Litigation”). Some of those claims are still pending, while others have been dismissed. See Klayman v. Judicial Watch, Inc., Civ.A.No. 06-670, 2007 WL 140978 (D.D.C. Jan. 17, 2007). During the 2006 Litigation, Judicial Watch, represented by defendants in the present case, filed a counterclaim for trademark infringement, unfair competition, and cybersquatting, and then filed an amended counterclaim. See Klayman v. Judicial Watch, Inc., 247 F.R.D. 10, 12 (D.D.C.2007). This amended counterclaim included Klayman’s ex-wife’s allegations about Klayman, which were originally set forth in a sealed divorce hearing and subsequently relayed to defendants, in their capacity as Klayman’s personal counsel, by Klayman himself. Id. at 17. Klayman then filed a cross-motion for sanctions, arguing that the disclosure of his ex-wife’s allegations violated his attorney-client privilege. The cross-motion was denied because any attorney-client privilege that protected the underlying information was destroyed because another Judicial Watch employee had been present during the disclosure. Id.

Klayman brought the present action on November 1, 2007 in Florida state court. Defendants removed the case to the Florida federal court on the basis of diversity jurisdiction. Defendants then moved to dismiss or for transfer based on lack of personal jurisdiction, improper venue, and forum non conveniens. The Southern District of Florida transferred the case to this Court under 28 U.S.C. § 1404(a) but did not reach defendants’ personal jurisdiction arguments.

Defendants renewed their motion to dismiss in this Court, asserting that decisions in the 2006 Litigation collaterally estopped two of plaintiffs claims and that the action is barred by the three-year D.C. statute of limitations. This Court rejected defendants’ collateral estoppel argument. Klay *60 man v. Barmak, 602 F.Supp.2d 110, 116—18 (D.D.C.2009). On the statute of limitations issue, the Court noted that the five-year Florida statute of limitations would normally apply to this case under the rule of Van Dusen v. Barrack, 376 U.S. 612, 637-39, 84 S.Ct. 805, 11 L.Ed.2d 945 (1964), which requires application of the law of the transferor forum following a transfer under 28 U.S.C. § 1404(a). Klayman, 602 F.Supp.2d at 115. However, the Court noted that Van Dusen may be inapplicable because Florida may have lacked personal jurisdiction over defendants. Id. at 116. Thus, the Court “order[ed] further briefing to determine whether the Florida courts had personal jurisdiction over defendants in the first place, and if not, what that means for the statute of limitations.” Id. The parties have submitted briefs pursuant to this order, and the statute of limitations issue is now ripe for resolution.

STANDARD

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Klayman v. Barmak, 634 F. Supp. 2d 56, 2009 U.S. Dist. LEXIS 60048, 2009 WL 2015141 (D.D.C. 2009).

634 F. Supp. 2d 56 (Klayman v. Barmak) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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