Nirala v. Dhali

CourtDistrict Court, D. Maryland
DecidedJuly 31, 2019
Docket8:18-cv-03330
StatusUnknown

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

Bluebook
Nirala v. Dhali, (D. Md. 2019).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

MOHAN NIRALA, *

Plaintiff, *

v. * Civil Action No. 8:18-cv-03330-PX

A.J. ADHALI, et al., *

Defendants. * *** MEMORANDUM OPINION Plaintiff Mohan Nirala (“Nirala”), proceeding pro se, brings this legal malpractice suit against Defendants A.J. Adhali and Edgar Ndjatou (collectively, “Defendants”). Pending before the Court is Defendants’ Motion to Dismiss the Amended Complaint (“Motion to Dismiss”). ECF No. 13. Having reviewed the Motion and the briefs, the Court finds no hearing is necessary. See D. Md. Local R. 105.6. For the reasons stated below, Defendants’ Motion to Dismiss is GRANTED IN PART and DENIED IN PART.1 I. Background2 In 2007, Nirala founded Satyaguru Inc., a nonprofit corporation in Maryland, which was later renamed Ambedkar International Center. ECF No. 12 at 15. He secured a personal loan of $80,000 to contribute to the organization’s operations. Id. In 2014, Ambedkar International Center and its board of directors (collectively, “AIC”) sued Nirala in the Circuit Court for Prince George’s County, Maryland for an array of common

1 Defendants’ original Motion to Dismiss, ECF No. 8, is denied as moot. See Johnson v. Asset Acceptance, LLC, No. GLR-15-538, 2015 WL 8760737, at *1 (D. Md. Dec. 15, 2015).

2 The Court accepts as true the facts pleaded in the Amended Complaint. It also takes judicial notice of the record for the underlying action in which Defendants represented Nirala, (Nirala v. Ambedkar Int’l Ctr., Inc., No. 203, Sept. Term, 2016, 2017 WL 2180630 (Md. Ct. Spec. App. May 18, 2017) and Ambedkar Int’l Ctr., Inc. v. Nirala, CAE14-11689 (Cir. Ct. for Prince George’s Cty. 2016)), and related filings attached to Defendants’ Motion to Dismiss (ECF Nos. 13-2, 13-3). See Philips v. Pitt Cty. Mem’l Hosp., 572 F.3d 176, 180 (4th Cir. 2009). law claims, including conversion, quiet title, ejectment, declaratory judgment, constructive trust, breach of contract, unjust enrichment, accounting, injunctive relief, and constructive fraud. ECF No. 13-3. AIC principally alleged that Nirala had been “acting as a rogue alter ego of AIC,” “mismanaged AIC funds,” and “transferred AIC property to himself.” Nirala v. Ambedkar Int’l Ctr., Inc., No. 203, Sept. Term, 2016, 2017 WL 2180630, at *1 (Md. Ct. Spec. App. May 18,

2017). Nirala retained Defendants to represent him and filed counterclaims. ECF No. 13-2. After a four-day bench trial, the court awarded judgment in favor of AIC. ECF No. 13-3. The Court of Special Appeals of Maryland affirmed the judgment. Nirala, 2017 WL 2180630, at *1. On September 11, 2018, Nirala sued Defendants in the Circuit Court for Prince George’s County, Maryland. ECF No. 1-1. Defendants removed the case, invoking this Court’s diversity jurisdiction on October 27, 2018. ECF No. 1. Nirala then amended the Complaint on December 4, 2018, ECF No. 12, and Defendants moved to dismiss the Amended Complaint on December 17, 2018, ECF No. 13. Nirala responded on January 2, 2019 to the motion, ECF No. 15, to which Defendants replied, ECF No. 16.

II. Standard of Review A motion to dismiss brought pursuant to Rule 12(b)(6) tests the sufficiency of the complaint. Presley v. City of Charlottesville, 464 F.3d 480, 483 (4th Cir. 2006) (citation and internal quotation marks omitted). A complaint need only satisfy the standard of Rule 8(a), which requires a “short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). “Rule 8(a)(2) still requires a ‘showing,’ rather than a blanket assertion, of entitlement to relief.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 n.3 (2007). That showing must consist of more than “a formulaic recitation of the elements of a cause of action” or “naked assertion[s] devoid of further factual enhancement.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (internal quotation marks omitted) (quoting Twombly, 550 U.S. at 555). In ruling on a motion to dismiss, a plaintiff’s well-pleaded allegations are accepted as true and viewed in the light most favorable to him. Twombly, 550 U.S. at 555. The Court may also consider documents attached to the motion to dismiss when “integral to and explicitly relied

on in the complaint, and when the [opposing parties] do not challenge the document[s’] authenticity.” Zak v. Chelsea Therapeutics, Int’l, Ltd., 780 F.3d 597, 606–07 (4th Cir. 2015) (quoting Am. Chiropractic Ass’n v. Trigon Healthcare, Inc., 367 F.3d 212, 234 (4th Cir. 2004)) (internal quotation marks omitted). However, “[f]actual allegations must be enough to raise a right to relief above a speculative level.” Twombly, 550 U.S. at 555. “[C]onclusory statements or a ‘formulaic recitation of the elements of a cause of action will not [suffice].’” EEOC v. Performance Food Grp., Inc., 16 F. Supp. 3d 584, 588 (D. Md. 2014) (quoting Twombly, 550 U.S. at 555). “‘[N]aked assertions of wrongdoing necessitate some ‘factual enhancement’ within the complaint to cross ‘the line between possibility and plausibility of entitlement to relief.’”

Francis v. Giacomelli, 588 F.3d 186, 193 (4th Cir. 2009) (quoting Twombly, 550 U.S. at 557). Although pro se pleadings are construed liberally to allow for the development of a potentially meritorious case, Hughes v. Rowe, 449 U.S. 5, 9 (1980), courts cannot ignore a clear failure to allege facts setting forth a cognizable claim. See Weller v. Dep’t of Soc. Servs., 901 F.2d 387, 391 (4th Cir. 1990) (“The ‘special judicial solicitude’ with which a district court should view such pro se complaints does not transform the court into an advocate.”). If a complaint allegation sounds in fraud, it must meet the heightened pleading requirements of Federal Rule of Civil Procedure 9(b). See Haley v. Corcoran, 659 F. Supp. 2d 714, 721 (D. Md. 2009). The rule requires the plaintiff to “state with particularity the circumstances constituting fraud or mistake.” Fed. R. Civ. P. 9(b). To satisfy this standard, plaintiffs “must, at a minimum, describe the time, place, and contents of the false representations, as well as the identity of the person making the misrepresentation and what he obtained thereby.” United States ex rel. Wilson v. Kellogg Brown & Root, Inc., 525 F.3d 370, 379 (4th Cir. 2008) (quotation marks and citation omitted). Fraud allegations that fail to comply

with Rule 9(b) warrant dismissal under Rule 12(b)(6). See Harrison v. Westinghouse Savannah River Co., 176 F.3d 776, 783 (4th Cir. 1999). III. Analysis a. The Operative Complaint As a preliminary matter, the Court must determine whether the original or Amended Complaint is the operative one. ECF Nos. 1-1, 12. Federal Rule of Civil Procedure

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