Magee v. American Institute of Certified Public Accountants

245 F. Supp. 3d 106, 2017 WL 1183950, 2017 U.S. Dist. LEXIS 46099
CourtDistrict Court, District of Columbia
DecidedMarch 29, 2017
DocketCivil Action No. 2016-0931
StatusPublished
Cited by13 cases

This text of 245 F. Supp. 3d 106 (Magee v. American Institute of Certified Public Accountants) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Magee v. American Institute of Certified Public Accountants, 245 F. Supp. 3d 106, 2017 WL 1183950, 2017 U.S. Dist. LEXIS 46099 (D.D.C. 2017).

Opinion

MEMORANDUM OPINION

REGGIE B. WALTON, United States District Judge

The plaintiff, Peter J. Magee, brings this civil action against the American Institute of Certified Public Accountants (the “Institute”); Rebecca Ferris, Francine Caloge-ro, Nancy Miller, Jennifer Goad, and Leonard Hecth, in their official capacities as employees of the Institute’s Ethics Division; and Does 1-50, 1 asserting two claims for negligence, a claim for breach of the implied covenant of good faith and fair dealing, and a breach of fiduciary duty claim against the Institute, as well as claims for intentional infliction of emotional distress and negligent infliction of emotional distress against all defendants. See Complaint (“Compl.”) ¶¶ 3-10, 29-58. Currently before the Court is the defendants’ Motion to Dismiss (“Defs.’ Mot.”), which seeks dismissal of the plaintiffs Complaint pursuant to' Rule 12(b)(6). Upon careful consideration of the parties’ submissions, 2 *110 the Court concludes that it must grant the defendants’ motion to dismiss all of the plaintiffs claims with the exception of the claim for breach of the implied covenant of good faith and fair dealing against the Institute.

I. BACKGROUND

The plaintiff asserts the following in his Complaint. He is a certified public accountant currently operating an accounting business in Reno, Nevada, and whose clients include Indian tribes, tribal governments, and other tribal entities. See Compl. ¶¶ 11-12. He is a longstanding member of the Institute, a professional membership organization comprised of certified public accountants and incorporated as a nonprofit corporation in the District of Columbia. See id. ¶¶ 4, 19-20. As a member of the Institute, the plaintiff agreed to subject himself to the rules and procedures of the Institute’s Ethics Committee. See id. ¶ 21.

Beginning in 2006, the Ethics Committee began investigating the services the plaintiff provided to a tribal client in California that was undergoing a federal audit. See id. ¶ 23. “The Ethic’s Committee’s concern was [the plaintiffs] use of language in the audit and inclusion or non-inclusion of related audit documentation, requested specifically by the [t]ribal client.” Id. This investigation is based out of the Institute’s North Carolina offices. See Def.’s Mem. at 1. As a result of the investigation, the plaintiff has been under the oversight of the Ethics Committee for ten years, but the matter has not yet been resolved, nor has the Ethics Committee afforded the plaintiff a hearing to dispute the allegations. See Compl. ¶¶ 23-24. According to the plaintiff, he

has been subjected to increased levels of [Institute] scrutiny by the Ethics Committee and threatened with gestapo like tactics that included, but are not limited to, “take it or leave it” ethical resolution proposals subjecting [him] to additional Ethics Committee scrutiny and in which [he] was told he must acquiesce or face increasing scrutiny and[/]or discipline by the Ethics Committee; use by the Ethics Committee of documents provided by [him] of which the Ethics Committee would fabricate additional sanctions, concerns and generate additional correspondences and document requests for [his] response ....

Id. ¶ 24.

The plaintiff filed his Complaint on May 17, 2016, see id. at 1, asserting the various common law claims against the defendants arising out of their investigation and discipline of the plaintiff, see id. ¶¶ 32-34, 37-38, 43-44, 47-48, 50-53, 55-58. The defendants filed their motion to dismiss on June 24, 2016. See Defs.’ Mot. at 1.

II. STANDARD OF REVIEW

A complaint must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). Thus, to survive a motion to dismiss for “failure to state a claim upon which relief can be granted,” Fed.. R. Civ. P. 12(b)(6), the 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 Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). “A claim has facial plausibility when the plaintiff pleads factu *111 al content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556, 127 S.Ct. 1955); see also Kowal v. MCI Commc’ns Corp., 16 F.3d 1271, 1276 (D.C. Cir. 1994) (noting that the plaintiff is entitled to “the benefit of all inferences that can be derived from the facts alleged”). Although the Court “must treat the complaint’s factual allegations as true [and] must grant [the] plaintiff the benefit of all reasonable inferences from the facts alleged,” Trudeau v. Fed. Trade Comm’n, 456 F.3d 178, 193 (D.C. Cir. 2006) (alteration in original) (citation omitted), legal allegations devoid of factual support are not entitled to this assumption, see, e.g., Kowal, 16 F.3d at 1276. Moreover, a plaintiff must provide more than “a formulaic recitation of the elements of a cause of action.” Hinson ex rel. N.H. v. Merritt Educ. Ctr., 521 F.Supp.2d 22, 27 (D.D.C. 2007) (quoting Twombly, 550 U.S. at 555, 127 S.Ct. 1955).

III. ANALYSIS

A. Choice of Law

Although the defendants are the only party who briefed the question as to which jurisdiction’s law applies in this diversity of citizenship matter, all parties rely on District of Columbia law in their submissions to the Court. See Defs.’ Mem. at 2-5; Pl.’s Opp’n at 2-6. “When deciding state-law claims under diversity ... jurisdiction, federal courts apply the choice-of-law rules of the jurisdiction in which they sit.” Mastro v. Potomac Elec. Power Co., 447 F.3d 843, 857 (D.C. Cir. 2006) (citations and internal quotation marks omitted). And, the choice-of-law rules, in the District of Columbia dictate that “the [C]ourt must first determine if there is a conflict between the laws of the relevant jurisdictions.” Parnigoni v. St. Columba’s Nursery Sch., 681 F.Supp.2d 1, 12 (D.D.C. 2010) (Walton, J.) (alteration in original) (citation omitted). If no conflict exists, District of Columbia law applies by default. See Brown v. Dorsey & Whitney, LLP, 267 F.Supp.2d 61, 70 (D.D.C. 2003).

With the exception of the negligent infliction of emotional distress claim, the. elements for each claim asserted by the plaintiff are the same in the Distinct of Columbia, Nevada, and North Carolina, the three jurisdictions that have some connection with this case. The elements of a negligence claim in all three jurisdictions are (1) duty, (2) breach, (3) causation, and (4) damages. Compare Powell ex rel. Ricks v.

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Cite This Page — Counsel Stack

Bluebook (online)
245 F. Supp. 3d 106, 2017 WL 1183950, 2017 U.S. Dist. LEXIS 46099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/magee-v-american-institute-of-certified-public-accountants-dcd-2017.