Marc Harris v. Dean Meiling

CourtDistrict Court, D. Nevada
DecidedOctober 31, 2019
Docket3:19-cv-00339
StatusUnknown

This text of Marc Harris v. Dean Meiling (Marc Harris v. Dean Meiling) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marc Harris v. Dean Meiling, (D. Nev. 2019).

Opinion

3 UNITED STATES DISTRICT COURT

4 DISTRICT OF NEVADA

5 * * *

6 MARC HARRIS, an individual, on behalf of himself and all others Case No. 3:19-cv-00339-MMD-CBC 7 similarly situated, ORDER 8 Plaintiff,

9 v.

10 DEAN MEILING, et al.,

11 Defendants.

12 AND ALL RELATED CASES 13 I. SUMMARY 14 Plaintiff Marc Harris seeks to represent a class of investors who lost money after 15 investing in Metalast International, LLC (“Metalast”) against the Chemeon Defendants,1 16 and Defendants Janet Chubb, Tiffany Schwartz, Armstrong Teasdale, LLP, and Kaempfer 17 Crowell, Ltd. (collectively, the “Attorney Defendants”), where Plaintiff basically alleges that 18 Defendants conspired to improperly take Metalast through a state receivership proceeding 19 resulting in the Meiling family taking control of Metalast at a discount. (ECF No. 10 20 (“FAC”).) Before the Court are a number of motions, but this order primarily focuses on 21 the Chemeon Defendants’ motion for judgment on the pleadings, or alternatively for a stay 22 of the proceedings (the “Motion”).2 (ECF No. 48.) Because the Court agrees with the 23 1For purposes of brevity, the Court refers to the following parties as the Chemeon 24 Defendants: Chemeon Surface Technology LLC (“Chemeon”), DSM P GP LLC, DSM Partners, LP, Dean Meiling, Madylon Meiling, Meridian Advantage, James Proctor, and 25 Suite B LLC.

26 2Defendant Kaempfer Crowell, LTD moved to join the Motion (ECF No. 61), as did Defendants Armstrong Teasdale LLP, Janet Chubb, and Tiffany Schwartz (ECF No. 65). 27 As noted, the Court collectively refers to these Defendants as the Attorney Defendants. Plaintiff opposed the Attorney Defendants’ motions to join the Motion. (ECF Nos. 76, 77.) 1 Chemeon Defendants this case is barred by the applicable statutes of limitations, and as 2 further explained below, the Court will dismiss Plaintiff’s case in its entirety and deny all 3 other pending motions,3 mostly as moot. 4 II. BACKGROUND 5 This is the second attempted class action filed by a group of investor plaintiffs 6 including Marc Harris primarily against the Meiling family and the entities they control 7 regarding the Nevada state-court receivership proceeding through which the Meilings 8 purchased Metalast. See Jerry Alexander, et al. v. Dean Meiling, et al., Case No. 3:16-cv- 9 00572-MMD-CBC (D. Nev. Filed October 3, 2016) (“Alexander”).4 Both this case and 10 Alexander also have a state-court companion case in which at least a majority of the 11 Chemeon Defendants seek to enjoin Plaintiff and other members of his desired class from 12 bringing Alexander and this case. (ECF Nos. 48 at 9-13, 74 at 7-10.) Thus, the Metalast 13 receivership proceeding has generated several legal proceedings. 14 This case was removed by the Chemeon Defendants from California state court 15 (ECF No. 1), where it was originally filed, and then transferred by a stipulated order from 16 as to the statutes of limitation argument in Defendants’ Motion, the Court permits the 17 Attorney Defendants to join the Motion. In addition, the Court reviewed Plaintiff’s response to the Motion (ECF No. 74), and the Chemeon Defendants’ reply filed in support of their 18 Motion (ECF No. 96). Moreover, to the extent the parties requested oral argument on the pending motions, those requests are denied because the Court finds oral argument 19 unnecessary. See LR 78-1.

20 3The other pending motions are Plaintiff’s motion to remand (ECF No. 11); Plaintiff’s motion to strike Defendant Chemeon Surface Technology, LLC’s counterclaim (ECF No. 21 27); some of the Attorney Defendants’ motion to dismiss (ECF No. 49); the Chemeon Defendants’ motion for sanctions (ECF No. 50); the Chemeon Defendants’ motion to strike 22 (ECF No. 51); some of the Attorney Defendants’ motion to stay the case (ECF No. 53); Plaintiff’s motion to expedite or specially set this case for trial (ECF No. 56); Defendant 23 Kaempfer Crowell’s motion to dismiss (ECF No. 57); and the Chemeon Defendants’ motion for leave to file a supplement to their motions to strike and for judgment on the 24 pleadings (ECF No. 64).

25 4Magistrate Judge Carla B. Carry is also overseeing two related, essentially trademark cases basically between the Meilings and the family that ran Metalast before 26 the receivership proceeding, the Semas family, and the various entities that these two families either control or do business with. See Chemeon Surface Technology, LLC v. 27 Metalast International, Inc., et al., Case No. 3:15-cv-00294-CBC (D. Nev. Filed Jun. 3, 2015); David M. Semas, et al. v. Chemetall US, Inc., Case No. 3:19-cv-00125-CBC (D. 1 the Central District of California to this Court (ECF No. 33). Generally speaking, Plaintiff 2 alleges that Defendants are involved in a fraudulent conspiracy where the Meilings feigned 3 interest in making additional investments in Metalast, used their feigned interest to gain 4 access to confidential information indicating to them that Metalast was about to become 5 profitable, but then nonetheless appointed people they were connected to in forcing 6 Metalast through a receivership proceeding—resulting in the Meiling family gaining control 7 of Metalast’s assets at a good price, forcing out the Semas family, who had run Metalast 8 up to that point, and giving Plaintiff and other investors, some of them elderly, no shot at 9 recouping the approximately $90 million they had collectively invested in Metalast. (ECF 10 No. 10 at 9-13.) Plaintiff refers to this as the “Fraudulent Scheme.” (Id. at 9.) 11 Based on the Fraudulent Scheme, Plaintiff brings claims for: (1) financial elder 12 abuse in violation of California Welfare and Institutions Code § 15610.30; (2) breach of 13 fiduciary duty; (3) constructive fraud: (4) intentional misrepresentation; (5) professional 14 negligence; (6) constructive trust; (7) violation of California Business and Professions 15 Code § 17200; (8) misappropriation; and (9) conversion. (Id. at 13-26.) 16 As relevant to the Chemeon Defendants’ Motion, Plaintiff alleges that the 17 Fraudulent Scheme occurred between April and December 2013. (Id. at 9-13, 15, 17, 19.) 18 However, Plaintiff alleges that he did not discover—and could not have discovered—the 19 Fraudulent Scheme until “a late 2016 deposition of Defendant James Proctor in a different 20 lawsuit in Nevada, when a review of documents produced at the deposition revealed” 21 documents establishing Plaintiff’s basis for alleging the Fraudulent Scheme. (Id. at 11-12.) 22 III. LEGAL STANDARD 23 “Dismissal under Rule 12(c) is warranted when, taking the allegations in the 24 complaint as true, the moving party is entitled to judgment as a matter of law.” Daewoo 25 Elecs. Am. Inc. v. Opta Corp., 875 F.3d 1241, 1246 (9th Cir. 2017), cert. denied, 138 S. 26 Ct. 2654 (2018) (citation omitted). “Analysis under Rule 12(c) is ‘substantially identical’ to 27 analysis under Rule 12(b)(6) because, under both rules, a court must determine whether 1 River Tribe v. Bureau of Land Mgmt., 793 F.3d 1147, 1155 (9th Cir. 2015) (citation 2 omitted). 3 Under Rule 12(b)(6), a court may dismiss a plaintiff’s complaint for “failure to state 4 a claim upon which relief can be granted.” Fed. R. Civ. P. 12(b)(6). A properly pled 5 complaint must provide “a short and plain statement of the claim showing that the pleader 6 is entitled to relief.” Fed. R. Civ. P. 8(a)(2); Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 7 555 (2007).

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