Olive Tree Associates, LLC, et al. v. The View Apartments, LLC, et al.

District Court, N.D. Alabama·Decided July 6, 2026·No. 2:26-cv-01166·Unknown

Opinion

OLIVE TREE ASSOCIATES, LLC, et al., Case No. 26-cv-02340-SVK

Plaintiffs, ORDER ON: (1) MOTION OF DEFENDANT ALEC WANG TO v. TRANSFER CASE; AND (2) MOTION OF DEFENDANTS EDDIE KOZAK, THE VIEW APARTMENTS, LLC, et al., THE VIEW APARTMENTS, LLC AND THE VIEW MANAGEMENT, LLC TO Defendants. CHANGE VENUE

Re: Dkt. Nos. 11, 19

I. INTRODUCTION AND BACKGROUND In 2022, Plaintiff Ding Zhou (“Zhou”), on behalf of non-party Zhou-Hu Family Trust (“Trust’), and Defendant Eddie Kozak (“Kozak”), on behalf of Defendant The View Apartments, LLC (“View Apartments”), signed a Subscription Agreement (“Subscription Agreement”) for an investment in a multifamily real estate project in Alabaster, Alabama (“Project”). See Dkt. 1 (Complaint) ¶ 12; Ex. 1 to Dkt. 11-2 (Subscription Agreement). The offering materials concerning the investment indicated that the Project would be operated through View Apartments and that Class A investors would receive a preferred annual return and periodic distributions. Dkt. 1 ¶ 14. The Complaint alleges that between the fourth quarter of 2022 and the first quarter of 2024, Plaintiffs received periodic preferred return distributions consistent with the distribution structure described in the offering materials, but the distributions then stopped, and Plaintiffs did not receive any preferred return payments for the remainder of 2024 or at any time during 2025. Id. ¶¶ 16-17. Plaintiffs allege that Defendants provided little documentation concerning the Project’s operations, financial performance, or management from 2022 through 2024, and when Plaintiffs finally obtained partial financial records, they contained various irregularities and inconsistencies. Id. ¶¶ 18-21. Plaintiffs filed this lawsuit on March 17, 2026. The Plaintiffs are: (1) Olive Tree Associates, LLC (“Olive Tree”); and (2) Zhou, who is the managing member of Olive Tree. Id. ¶¶ 1-2. The Defendants are: (1) View Apartments; (2) The View Management, LLC (“View Management), which is the manger and controlling entity of View Apartments; (3) Eddie Kozak (“Kozak”), a “managing member and/or controlling person of View Apartments and View Management”; and (4) Alec Wang (“Wang”), who Plaintiffs allege is “affiliated with Tana Investment Group, LLC and acted as a promoter, intermediary, and/or agent in connection with Plaintiffs’ investment in the Project.” Id. ¶¶ 3-6. The Complaint contains causes of action for (1) breach of contract; (2) breach of fiduciary duty; (3) fraud – intentional misrepresentation; (4) negligent misrepresentation; and (5) unjust enrichment/restitution. Now before the Court are two motions seeking to transfer this case to the Northern District of Alabama or another federal district court in Alabama: one motion brought by Defendant Wang (Dkt. 11 – the “Wang Motion to Transfer”), and the other brought by Defendants View Apartments, View Management, and Kozak (Dkt. 19- the “View Motion to Transfer”). All Parties have consented to the jurisdiction of a magistrate judge. Dkt. 17, 18, 22, 23 24. The Court finds these motions suitable for determination without a hearing. Civ. L.R. 7-1(b). For the reasons that follow, both motions to transfer are GRANTED and this action will be TRANSFERRED to the United States District Court for the Northern District of Alabama. The Subscription Agreement concerning the investment at issue in this case is a written agreement signed by Kozak on behalf of View Apartments and by Zhou on behalf of the Trust. Ex. 1 to Dkt. 11-2 at PDF pp. 24-25. The Subscription Agreement contains the following provision: //// 10.4 Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Alabama without regard to principles of conflict of laws (except insofar as affected by the securities or "blue sky" laws of the state or similar jurisdiction in which the Offering described herein has been made to you). The exclusive venue for all disputes arising out of or relating to this Agreement shall be the federal or state courts located in Alabama. You irrevocably consent to the exercise of personal jurisdiction over you by such courts for purposes of resolving such disputes. Id. at PDF p. 15. All Defendants named in this action seek to transfer the case to a federal district court in Alabama based on the forum selection clause pursuant to 28 U.S.C. § 1404(a). See Dkt. 11-1 at 4; Dkt. 19-1 at 3. A. Legal Standard “For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.” 28 U.S.C. § 1404(a). Typically, the “transfer inquiry proceeds in two steps. First, the Court determines ‘whether the transferee district was one in which the action might have been brought by the plaintiff.’” California v. Bureau of Land Mgmt., No. 18-cv-00521-HSG, 2018 WL 3439453, at *2 (N.D. Cal. July 17, 2018) (quoting Hoffman v. Blaski, 363 U.S. 335, 343-44 (1960)). Second, “the Court conducts an individualized case-specific analysis of convenience and fairness” considering the private interests of the Parties and certain public interests. See id. (citing Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29 (1988) (quotation marks omitted)). “The calculus changes, however, when the parties’ contract contains a valid forum-selection clause, which represents the parties’ agreement as to the most proper forum.” Atl. Marine Constr. Co. v. U.S. Dist. Ct., 571 U.S. 49, 63 (2013). The proper way to enforce a forum selection clause is through a motion to transfer under 28 U.S.C. § 1404(a). Id. at 59. When a defendant files such a motion, “a district court should ordinarily transfer the case to the forum specified in that clause” absent “extraordinary circumstances unrelated to the convenience of the parties.” Id. at 62. Where a motion to transfer is based on a forum selection clause, a district court must forum merits no weight,” and “the plaintiff bears the burden of establishing that transfer to the forum for which the parties bargained is unwarranted.” Id. Second, the court “should not consider arguments about the parties’ private interests” and “must deem the private-interest factors to weigh entirely in favor of the preselected forum” Id. at 64. Third, “[t]he court in the contractually selected venue should not apply the law of the transferor venue to which the parties waived their right.” Id. at 65-66. This analysis “presupposes a contractually valid forum-selection clause.” Id. at 62 n.5. In diversity cases, the enforcement and interpretation of forum selection clauses is determined under federal law. Manetti-Farrow, Inc. v. Gucci Am., Inc., 858 F.2d 509, 513 (9th Cir. 1988) B. Analysis The Parties generally agree on the legal framework for venue that applies when a contract contains a forum selection clause. Their disagreement primarily centers on whether the forum selection clause in the Subscription Agreement applies to all Parties and claims in this litigation. The Court first addresses those issues, then analyzes whether the forum selection clause is enforceable, whether the proposed transferee forum is appropriate, and whether the entire action should be transferred. 1. Applicability of the forum selection clause to the Parties The Subscription Agreement was signed by Plaintiff Zhou as Trustee of non-party Zhou-Hu Family Trust and by Defendant Kozak as Manager of Defendant View Management. Ex. 1 to Dkt. 11-2 at PDF pp. 24-25. The

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Olive Tree Associates, LLC, et al. v. The View Apartments, LLC, et al., (N.D. Ala. 2026).

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