Orbita Telecom SAC v. Juvare LLC

CourtDistrict Court, D. Maryland
DecidedJune 8, 2022
Docket8:21-cv-02816
StatusUnknown

This text of Orbita Telecom SAC v. Juvare LLC (Orbita Telecom SAC v. Juvare LLC) 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
Orbita Telecom SAC v. Juvare LLC, (D. Md. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

: ORBITA TELECOM SAC :

v. : Civil Action No. DKC 21-2816

: JUVARE LLC, et al. :

MEMORANDUM OPINION Presently pending and ready for resolution in this breach of contract case is the motion to dismiss the First Amended Complaint filed by Defendants Juvare LLC and ESi Acquisition Inc. (ECF No. 33). The issues have been briefed, and the court now rules, no hearing being necessary. Local Rule 105.6. For the following reasons, the motion to dismiss will be granted, although Plaintiff will be provided an opportunity to request transfer rather than dismissal. I. Background All alleged facts are viewed in the light most favorable to Plaintiff Orbita Telecom SAC (“Orbita”). Orbita is a Peruvian company registered to do business in Maryland. (ECF No. 17, at 1). Its principal place of business is in Maryland. (ECF No. 17, at 2). Orbita’s general manager and legal representative is Luis Felipe Paredes. Mr. Paredes lives and works predominantly in Bethesda, Maryland. (ECF No. 17, at 3). Juvare LLC (“Juvare”) is incorporated in Delaware and has its principal place of business in Georgia. (ECF No. 17, at 3). ESi Acquisition Inc. (“ESi”) is a “commonly controlled, Juvare affiliated company.” (ECF No. 17,

at 3). ESi also seems to be incorporated in Delaware and to have its principal place of business in Georgia. (ECF No. 17, at 3; ECF No. 34, at 17). Juvare and ESi share a president and CEO. (ECF No. 17, at 5). Before being spun-off on their own in May 2018, Juvare and ESi were part of a company called Intermedix. (ECF No. 17, at 7 n.11). ESi owns an emergency preparedness software tool called “WebEOC.” (ECF No. 17, at 9). WebEOC is used by federal agencies across the United States. Multiple agencies headquartered in Maryland use the software. (ECF No. 17, at 10). Juvare also provides WebEOC services through ESi to state and local government agencies in Maryland. (ECF No. 17, at 10). In fact, an estimated

74% of county governments in the United States use WebEOC. (ECF No. 17, at 10 n.15). In April 2017, Orbita contacted Intermedix and obtained a virtual presentation of WebEOC. (ECF No. 17, at 10). Shortly thereafter, Orbita and ESi signed a nondisclosure agreement. (ECF No. 17, at 10). Orbita then asked Intermedix to develop a presentation on the WebEOC software and a price quotation for a prospective project in Peru with a part of the Peruvian government. (ECF No. 17, at 11). Intermedix provided both. Mr. Paredes then flew to Peru and made the presentation. Ultimately, however, no agreement was reached with the Peruvian government to license the WebEOC software. (ECF No. 17, at 11).

In February 2018, Orbita asked Intermedix to give a presentation on WebEOC to another company with which Orbita had previously worked. (ECF No. 17, at 11). “ESi/Intermedix” provided the presentation.1 A month later, Intermedix’s Director of Business Development contacted Orbita to ask about business opportunities in Latin America. (ECF No. 17, at 11). Mr. Paredes told Intermedix about a public health project in Peru. On Intermedix’s request, Mr. Paredes travelled to Peru and gave a presentation on WebEOC to Peru’s Institute for Civil Defense. (ECF No. 17, at 11-12). Between February 2018 and January 2019, Orbita and the now-spun-off Juvare remained in contact about possible business opportunities in Peru and “elsewhere in the Americas.”

(ECF No. 17, at 12). During the summer of 2018, Orbita made more presentations to the Peruvian government, “with Juvare’s consent and encouragement.” (ECF No. 17, at 12). It seems that none of these presentations resulted in agreements to license the WebEOC software.

1 Confusingly, Orbita says in the First Amended Complaint that when it refers to Juvare it is referring to both Juvare and ESi. (ECF No. 17, at 8). Yet, at points throughout the First Amended Complaint, Orbita refers to Juvare and ESi, and at other times just to Juvare. In early May 2019, Mr. Paredes travelled from Bethesda, Maryland to Juvare’s annual conference in New Orleans. (ECF No. 17, at 13). On behalf of Orbita, Mr. Paredes met with senior

Juvare leadership. Together they discussed developing a “Program,” which would integrate responses across all levels of the Peruvian government to an “anticipated megathrust earthquake and tsunami.” (ECF No. 17, at 14). Mr. Paredes subsequently travelled to Peru. While there, he presented the WebEOC software to several ministers in Peru’s Institute for Civil Defense. (ECF No. 17, at 14). While in Peru, Mr. Paredes informed Juvare of several other business opportunities. Juvare’s presentations and proposals were not ready in time, and Mr. Paredes returned to Maryland empty handed. (ECF No. 17, at 14-15). Despite these setbacks, conversations continued between Orbita and Juvare. Orbita stressed to Juvare what was needed in

proposals to be successful with the Peruvian government. (ECF No. 17, at 15). Juvare stated that it understood, and asked Orbita to prepare a Memorandum of Understanding (“MOU”). (ECF No. 17, at 15). Orbita provided the MOU in sections to Juvare in August 2019. (ECF No. 17, at 16). The parties held a virtual meeting to discuss the MOU, and Juvare subsequently sent written comments to Orbita on the MOU. (ECF No. 17, at 16). The purpose of the MOU was to “integrate various Peruvian government sector applications, telecom and IT products and services to provide Disaster Risk Management systems and Emergency IP Network services to various government, armed forces and private industry stakeholders.” (ECF

Nos. 17, at 16; 20-32, at 1). To accomplish this, the parties planned to create a joint WebEOC-ESINet system. The WebEOC component would be provided by Juvare and ESi. (ECF No. 17, at 17). The ESINet (“Emergency Services IP Network”) would be provided by Orbita. (ECF No. 17, at 17). Among the provisions of the MOU was a requirement for Juvare to pay Orbita $7,819.00 twice a month. (ECF Nos. 17, at 18; 20-32, at 6). The payments were to help fund Orbita’s work in Peru cultivating possible business opportunities. (ECF No. 17, at 18). The MOU was signed on November 13, 2019. (ECF No. 20-32, at 1). The MOU states that Orbita offices are in Lima, Peru, and that Juvare’s offices are in Atlanta, Georgia. (ECF No. 20-32, at 1).

Between November 2019 and March 2020, Mr. Paredes and other Orbita agents made contact with various Peruvian government officials. (ECF No. 17, at 21). Juvare submitted at least one “fatally flawed” proposal during this time. (ECF No. 17, at 20). The submission of the proposal, however, triggered the accrual of payments from Juvare to Orbita under the MOU. (ECF No. 17, at 20). Mr. Paredes and Juvare officers planned to travel to Peru in March 2020 for a presentation to the Peruvian government. On March 16, 2020, however, Peru declared a national health emergency due to COVID-19. Mr. Paredes was already in Peru, but the Juvare officers’ trip was cancelled. (ECF No. 17, at 23). Orbita and Juvare, however, decided to pursue business opportunities in Peru

created by the COVID-19 pandemic. (ECF No. 17, at 23). The plan was to pursue smaller projects, which would display the value of the WebEOC software. Success with those smaller projects would then be parlayed into the bigger project initially envisioned by the parties. (ECF No. 17, at 24). Through the spring, summer, and fall of 2020, Orbita sought out opportunities to license the WebEOC software to different Peruvian government entities. (ECF No. 17, at 25-39). Orbita had several meetings with the leadership of Peru’s second largest public healthcare network. (ECF No. 17, at 29). Juvare was supposed to be producing presentations and materials to support Orbita’s efforts. Juvare, however, consistently failed to meet

Orbita’s expectations as to the quality and timeliness of those materials.

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