Mines v. Metagenics, Inc.

District Court, District of Columbia·Decided October 13, 2023·No. Civil Action No. 2022-3789·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

AHMAD MINES FNP-C; THE INSTITUTE OF MULTIDIMENSIONAL MEDICINE,

Plaintiffs, Civil Action No. 22-3789 (JEB) v.

METAGENICS, INC.,

Defendant.

MEMORANDUM OPINION

The Institute of Multidimensional Medicine (TIMM) and its owner, Ahmad Mines, have

twice brought suit against Defendant Metagenics for breaching their contract regarding the sale

of nutritional health supplements. This Court dismissed the first suit in October 2022 and

granted in part a motion to dismiss the present suit in April 2023. Before the parties embark on

discovery in earnest on what remains, Plaintiffs seek leave to amend their Complaint. The

proposed amendments would revive some already-dismissed theories of liability, give others a

facelift, and introduce still more brand-new causes of action. With the exception of one new

claim, the Court will deny the Motion as futile.

I. Background

As in its prior Opinions, at this stage, the Court “accept[s] the facts as alleged in the

Complaint as true.” Inst. of Multidimensional Med. v. Metagenics, Inc. (Metagenics I), 635 F.

Supp. 3d 6, 10 (D.D.C. 2022). The following abbreviated factual overview covers only the

basics and borrows heavily from the Court’s prior Opinions. For simplicity, the Court will refer

to Plaintiffs jointly as TIMM.

1 Metagenics produces nutritional health supplements and sells them to entities like TIMM,

a nurse practitioner’s office here in Washington, D.C. See ECF No. 1 (Compl.), ¶¶ 1, 8. Those

practitioners then resell Metagenics supplements “to their end-user patients” in person or through

websites they run. Id., ¶ 3. Metagenics also pays practitioners a commission for any purchases

end-users make on Metagenics.com using that practitioner’s code. Id., ¶¶ 4–5. Defendant does

not permit practitioners to sell the supplements on third-party websites like Amazon. Id., ¶¶ 6–7.

TIMM contracted to sell supplements as a practitioner-customer of Metagenics back in

2011. Id., ¶¶ 9–10. It did so by filling out an online form that requires applicants to check a box

“acknowledg[ing] that [they] have received Metagenics Policies.” ECF No. 1-2 (Model

Application Form); see Compl., ¶ 10. After selling the supplements for nearly a decade, TIMM

realized that Metagenics had started selling those same supplements directly to end-users on

Amazon. See Compl., ¶ 15. To TIMM’s surprise, Metagenics was also letting other

supplements sellers do the same. Id., ¶ 19. “Seeking to mitigate losses incurred as a result of the

pandemic, and because Defendant and others were already selling on Amazon,” TIMM “reached

out to Defendant’s local representative to ask” whether it, too, could sell “Metagenics products

on Amazon to [its] end-user patients.” Id., ¶ 21. After “Defendant’s representative for the mid-

Atlantic region,” Tom Southward, told TIMM during a meeting that its Amazon sales “would not

be an issue,” Plaintiffs opened shop on Amazon. Id., ¶¶ 22–23.

Unfortunately for TIMM, those sales were enough of an issue for Metagenics to cancel

its contract with TIMM “unilaterally without any advance notice.” Id., ¶ 24. When Plaintiffs

“promptly ceased selling on Amazon and notified Defendant in writing of their compliance with”

its no-Amazon-sales rule, Metagenics never answered or renewed the business relationship. Id.,

¶ 28. Since TIMM’s patients could no longer purchase Metagenics supplements from TIMM,

2 they began to buy directly from Metagenics — and TIMM received no commission on those

sales because it no longer had a valid practitioner code. Id., ¶ 30. This lost revenue is the

motivating force behind the lawsuits.

In April 2022, TIMM filed its initial action against Metagenics in District of Columbia

Superior Court, and Defendant swiftly removed it to federal court. Metagenics I, No. 22-1308,

ECF Nos. 1 (Notice of Removal), 1-2 (Original Complaint). After Plaintiffs amended their

Complaint, this Court dismissed the first lawsuit in its entirety without prejudice, finding that

TIMM had not pled sufficient factual allegations to support any of its counts. See Metagenics I,

635 F. Supp. 3d at 12–15. About a month later, Plaintiffs filed this new lawsuit, which listed

four counts: (I) breach of the express and implied warranties of merchantability, (II) breaches of

contract, (III) breach of the duty of good faith and fair dealing, and (IV) unjust enrichment. See

Compl., ¶¶ 32–130. In response to a defense motion, the Court dismissed all but portions of

Count II in April 2023. See Mines v. Metagenics, Inc. (Metagenics II), 2023 WL 2930557, at *8

(D.D.C. Apr. 13, 2023). Recently, it issued a scheduling order governing discovery, which

allowed until September 1, 2023, for the parties to amend their pleadings. See ECF No. 22

(Scheduling Order). TIMM filed for leave to amend its Complaint on that day. See ECF No. 25

(Motion). The proposed Amended Complaint lists the surviving portions of their breach-of-

contract claim as Count I and adds four new counts, which it lists as Counts II–V. See ECF No.

25-1 (Amended Complaint), ¶¶ 25–88. Metagenics opposes the Motion. See ECF No. 26

(Defendant’s Opposition).

II. Legal Standard

A plaintiff may amend her complaint once as a matter of course within 21 days of serving

it or within 21 days of being served a responsive pleading. See Fed. R. Civ. P. 15(a)(1).

3 Otherwise, she must seek consent from the defendant or leave from the court. See Fed. R. Civ.

P. 15(a)(2). “The court should freely give leave when justice so requires.” Id. In deciding

whether to grant leave to file an amended complaint, the court may consider “undue delay, bad

faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by

amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of

the amendment, futility of amendment, etc.” Foman v. Davis, 371 U.S. 178, 182 (1962). In this

Circuit, “it is an abuse of discretion to deny leave to amend unless there is sufficient reason.”

Firestone v. Firestone, 76 F.3d 1205, 1208 (D.C. Cir. 1996). Furthermore, under Rule 15, “the

non-movant generally carries the burden in persuading the court to deny leave to amend.”

Nwachukwu v. Karl, 222 F.R.D. 208, 211 (D.D.C. 2004).

It is clear, however, that amendment should not be permitted if it would be futile. In

other words, if the proposed amendment would be deficient, the court need not grant leave. See

In re Interbank Funding Corp. Sec. Litig., 629 F.3d 213, 218 (D.C. Cir. 2010) (“[A] district court

may properly deny a motion to amend if the amended pleading would not survive a motion to

dismiss.”); James Madison Ltd. v. Ludwig, 82 F.3d 1085, 1099 (D.C. Cir. 1996) (“Courts may

deny a motion to amend a complaint as futile . . . if the proposed claim would not survive a

motion to dismiss.”).

III. Analysis

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