MBI Group, Inc. v. Credit Foncier Du Cameroun

558 F. Supp. 2d 21, 2008 U.S. Dist. LEXIS 44671, 2008 WL 2345347
CourtDistrict Court, District of Columbia
DecidedJune 10, 2008
DocketCivil Action 07-0637(JDB)
StatusPublished
Cited by22 cases

This text of 558 F. Supp. 2d 21 (MBI Group, Inc. v. Credit Foncier Du Cameroun) 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
MBI Group, Inc. v. Credit Foncier Du Cameroun, 558 F. Supp. 2d 21, 2008 U.S. Dist. LEXIS 44671, 2008 WL 2345347 (D.D.C. 2008).

Opinion

MEMORANDUM OPINION

JOHN D. BATES, District Judge.

Plaintiffs MBI Group, Inc. (“MBI”) and Altantie Group, SCI (“Atlantic”) bring this lawsuit against Credit Foncier du Camer-oun (“CFC”) and the Republic of Cameroon seeking damages for breach of contract, fraud, misrepresentation, intentional interference with contract, and misappropriation of trade secrets and proprietary information. This controversy arises out of an agreement by which plaintiffs would take the lead in constructing a series of affordable housing projects in Cameroon with CFC providing the land and funding for that initiative. As plaintiffs would have it, the deal was scuttled by CFC and Cameroon when MBI and Atlantic refused to deliver bribes that were demanded by certain officials within the government of Cameroon. Defendants, by contrast, deny the accusations of bribery and insist that there was no binding agreement to begin with. Claiming immunity subject to the Foreign Sovereign Immunities Act, 28 U.S.C. §§ 1602-1611, defendants have moved to dismiss the complaint for an absence of subject matter jurisdiction. They also claim that the action should be dismissed for lack of personal jurisdiction and on forum non conveniens grounds. Plaintiffs, for their part, oppose defendants’ motion to dismiss and have moved for jurisdictional discovery in their own right. Those motions are fully briefed and ripe for resolution. Upon careful consideration, and for the reasons set forth below, the Court will deny plaintiffs’ motion for discovery and grant defendants’ motion to dismiss on forum non conveniens grounds.

BACKGROUND

MBI is a Delaware corporation that has “designed and developed a business plan, program and model for the construction, marketing, sale and operation ... [of] affordable housing in regions of the world with limited or undeveloped housing infrastructure.” Compl. ¶¶ 4, 9. Cameroon, of course, is a sovereign nation located in Africa. CFC is a corporation organized under the laws of Cameroon. See Defs.’ Mot. Mekongo Deck ¶ 3. The majority of CFC’s shares are owned by the government of Cameroon. Id. CFC’s stated purpose is to make affordable housing available to Cameroon’s citizens. Id. ¶ 5. To that end, CFC is funded in part by a 1% tax levied on the salaries of workers in Cameroon who earn over 50,000 CFA Francs per month, as well as a .25% payroll tax on employers in the country. Id. *23 CFC’s Board of Directors consists of twelve members, eight of whom are appointed directly by the government of Cameroon. Id. ¶ 4. Notwithstanding the government’s involvement in funding CFC and appointing its directors, CFC allegedly “acts independently” and the government assertedly lacks “the right to direct the actions of CFC’s Board.” See Defs.’ Reply Mekongo Deck ¶ 2.

According to plaintiffs, CFC first approached MBI in November 2003 “and solicited MBI’s participation in the development and the implementation of an affordable housing program in Cameroon.” See Compl. ¶ 14. That contact was made through Joseph Edou, who was the General Manager of CFC during the relevant time period. Id. Edou represented to MBI that Cameroon lacked a supply of affordable housing and that CFC “desired to enter into an agreement with an entity that would serve as a developer ... [and] implement an affordable housing program which would be rolled out in various cities in Cameroon.” Id. ¶ 15. The Overseas Private Investment Corporation (“OPIC”) is a U.S. government agency that aims “to develop robust housing markets through construction of affordable homes in developing nations with the goal of bolstering retail banking and fueling local capital markets as engines of entrepreneurship.” Id. ¶ 12 (internal quotation marks omitted). Plaintiffs assert that “CFC desired to attract financing and support for an affordable housing program from agencies such as OPIC,” and CFC recognized that “financial support from OPIC required substantial financial participation from an American entity,” such as MBI. Id. ¶ 15.

Due to MBI’s familiarity with OPIC and its interest in the Cameroon project, MBI officials traveled to Cameroon to investigate the feasibility of the undertaking. Id. ¶ 16. MBI then submitted a “formal expression of interest” in the project at CFC’s request. Id. ¶ 17. After CFC responded that the proposal “conformed with CFC’s requirements,” MBI began taking preliminary steps to “commence master planning” of the project. Id. ¶ 18. One such step was the creation of Atlantic on March 24, 2004. Id. ¶20. Atlantic was incorporated under the laws of Cameroon “specifically for the development and implementation of the Cameroon Housing Project.” Id. Atlantic, however, is not a wholly owned subsidiary of MBI. In fact, MBI directly owns only 35% of Atlantic. See Defs.’ Mot. Ngwafor Decl. ¶ 13. Roger Tchoufa, a co-founder of MBI, owns another 20% of Atlantic in his personal capacity. Id. The remaining 45% of Atlantic stock is owned by a company known as The Falls. Id. The Falls is a public limited company organized under the laws of Cameroon. Id. ¶ 10. The sole shareholder of The Falls is Ateba Minkoulou Gabriel, who is evidently Joseph Edou’s brother-in-law. Id. ¶ 10; Defs.’ Mot. Mek-ongo Deck ¶ 19. As defendants would have it, this arrangement is merely a front and the true owner and driving force behind The Falls is in fact Joseph Edou.

In any event, in May 2004 the parties were engaged in an effort to formalize the tentative agreement between MBI and CFC. In order to facilitate that, Edou traveled to the United States for two weeks and MBI arranged for him to meet with several officials of OPIC and the U.S. Department of Housing and Urban Development, among other agencies. See Compl. ¶ 25. Also present during this period was Andre Booto A Ngon (“Booto”), then the Chairman of the Board of CFC. See Pl.’s Opp’n Tchoufa Deck ¶¶ 10-11. On May 18, 2004, MBI and CFC signed a Memorandum of Agreement in Bethesda, Maryland memorializing the deal between the parties. See Compl. ¶ 26. Edou signed the agreement on behalf of CFC, *24 evidently at Booto’s direction. Among other things, the Memorandum Agreement called for CFC to provide to plaintiffs:

(a) project development and construction financing of approximately forty nine million dollars (US$49,000,000.00) and all necessary financial guarantees for the Yaounde Phase I Project; (b) land on which approximately 1,100 affordable housing units would be constructed by Plaintiffs for the Yaounde Phase I Project; (c) mortgage financing for the buyers of the 1100 units for the Yaounde Phase I Project; and (d) the identity of over 50,000 potential home buyers. CFC also confirmed the availability of mortgage funds for at least 5,000 to 6,000 houses over the next four years.

Id. ¶27 (internal quotation marks omitted).

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Bluebook (online)
558 F. Supp. 2d 21, 2008 U.S. Dist. LEXIS 44671, 2008 WL 2345347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mbi-group-inc-v-credit-foncier-du-cameroun-dcd-2008.