Poe v. FCA US LLC

CourtDistrict Court, E.D. Michigan
DecidedSeptember 27, 2022
Docket2:21-cv-11668
StatusUnknown

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

Bluebook
Poe v. FCA US LLC, (E.D. Mich. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

RICHARD C. POE, II, 2:21-CV-11668-TGB-CI individually and derivatively for DICK POE MOTORS, LP, and DICK POE DODGE, LP, HON TERRENCE G. BERG

Plaintiffs,

vs. ORDER GRANTING MOTION FCA US LLC, TO DISMISS (ECF NO. 8) Defendant. This case arises from a dispute over the ownership of a number of Texas auto dealerships. In brief, Plaintiff Richard Poe alleges that a number of his late father’s advisors conspired in 2015 to seize control of several family-owned dealerships that would otherwise have passed to Richard. Cases against those advisors have been or are being litigated elsewhere. Now, Richard sues automaker FCA US LLC (“FCA”), the franchisor for two of the dealerships at issue. He sues on his own behalf and on behalf of the limited partnerships that own the dealerships. Richard alleges that FCA joined the advisors’ conspiracy and committed various torts in an effort to seize control of the dealerships. But the Court will not reach the merits of Richard’s claims, because each claim is barred by the relevant statute of limitations. Defendant FCA has moved to dismiss Plaintiffs’ complaint in its entirety, arguing that all claims are time-barred. ECF No. 8. The motion has been fully briefed and the parties gave oral arguments before the then-presiding judge, the Honorable Stephanie Dawkins Davis, on May 11, 2022.1 For the reasons stated below, Defendant’s motion to dismiss will be GRANTED. I. BACKGROUND The following allegations are drawn from the Complaint. In 1928, Richard’s grandfather opened what is now the oldest Chrysler dealership

in Texas. ECF No. 1, PageID.7. The Poe family has owned and managed auto dealerships in Texas ever since. Id. Plaintiff Richard Poe II (“Richard”) worked in the family trade, as did his father, Richard Poe (“Dick”). Id. Dick employed several advisors to assist him in managing the various Poe family businesses: Anthony Bock, a certified public accountant; Paul Sergent, a lawyer who advised Dick on legal and business matters; and Karen Castro, who “assisted [Dick] as his long- time personal assistant and then acted as the ‘Comptroller’” for the

dealerships at issue here. Id. at PageID.4-5, 9. In August 2007, Dick, then 73 years old, formed a company called “PMI.” Id. at PageID.8. Richard was issued 1,000 shares of PMI, and was

1 The case was transferred to the undersigned upon Judge Dawkins Davis’s appointment as Circuit Judge of the United States Court of Appeals for the Sixth Circuit on June 16, 2022. See Text-only docket entry of June 16, 2022. the only shareholder. Id. Dick was the president and sole director of PMI, and Richard the vice president. Id. Sergent was PMI’s secretary. PMI became the general partner of several Poe-family limited partnerships (the “Limited Partnerships”) including Dick Poe Motors, L.P. (which owns a Dick Poe Chrysler/Jeep dealership in El Paso, Texas) and Dick Poe Dodge, L.P. (which owns a Dick Poe Dodge/Ram dealership in El Paso). Id. at PageID.2, 8. Through the Limited Partnerships, PMI controlled the two dealerships (the “Poe Dealerships”). Against this backdrop, Richard alleges that Bock, Sergent, and

Castro conspired to “steal” PMI and the businesses PMI controlled away from Richard. Id. at PageID.9. On May 6, 2015—ten days before he died—Dick caused PMI to issue 1,100 new shares to himself in exchange for $3,209,205.2 The share issuance had the effect of diluting Richard’s ownership interest in PMI to 48% and assigning 52% to Dick. Id. at PageID.10. Dick died on May 16, 2015. Id. In accordance with Dick’s will, Bock and Castro were appointed as executors of Dick’s estate. Id. at PageID.11. Bock and Castro then appointed themselves directors of PMI,

2 Richard vigorously contests the validity of this share issuance. After a May 2017 trial in El Paso Probate Court, a jury determined that the share issuance had violated Texas law. ECF No. 1, PageID.9-10. Judgment was issued in late 2017 and was affirmed by the El Paso Court of Appeals. Id. But on June 17, 2022, the Texas Supreme Court concluded that the Probate Court had issued erroneous jury instructions and remanded the matter for a new trial. Matter of Est. of Poe, No. 20-0178, 2022 WL 2183306, at *1 (Tex. June 17, 2022). elected themselves officers of PMI, and re-elected Sergent as PMI’s secretary—a position he had already held. Id. Richard alleges that Bock and Castro also “entirely removed Richard from functional control over PMI” and the dealerships PMI controlled. Id. Richard alleges that FCA joined this conspiracy.3 He alleges that FCA’s usual practice when a dealership’s “principal” dies is to send a “Notice of Dealer Death” package to the remaining management of the dealership. Id. at PageID.17. Richard says that on May 27, 2015, an FCA representative emailed Castro seeking updated contact information for

Richard, who was listed as the remaining management of the Poe Dealerships. Id. at PageID.18. But Castro provided her own email address, and FCA used that for future communications with the Poe Dealerships instead of dealing with Richard. Id. at PageID.19-20. At some point thereafter, the alleged conspirators hired Gery Reckelbus to manage the Dealerships and, on August 10 and 12, 2015, asked FCA to replace Richard with Reckelbus as “principal” of the Dealerships. Id. at PageID.20-22. Richard says that he did not learn the “details” of

Reckelbus’s appointments until the May 2017 probate court trial. Id. at PageID.20. Richard says that, although “it is not unusual” for such a change in management to take months, FCA approved Reckelbus within nine days

3 Though the Complaint variously refers to “FCA” or “Chrysler,” the Court will use “FCA” throughout this Order for consistency. for one dealership and eleven days for the other. Id. at PageID.21-22. Richard also complains that the alleged conspirators stopped selling vehicle-protection products (such as extended warranties) that were reinsured by Richard’s other businesses and instead sold FCA’s version of those products, cutting Richard out. Id. at PageID.23-24. II. STANDARD OF REVIEW Rule 12(b)(6) of the Federal Rules of Civil Procedure authorizes the court to dismiss a lawsuit if it “fails to state a claim upon which relief can be granted.” Rule 8(a) requires only that pleadings contain “a short and

plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). Though this standard is liberal, courts have held that it requires plaintiffs to provide “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action” in support of their grounds for entitlement to relief. Albrecht v. Treon, 617 F.3d 890, 893 (6th Cir. 2010) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 554, 555 (2007)). In evaluating a motion to dismiss under Rule 12(b)(6), courts must

construe the complaint in the light most favorable to the plaintiff and accept all well-pled factual allegations as true. League of United Latin Am. Citizens v. Bredesen, 500 F.3d 523, 527 (6th Cir. 2007) (citing Kottmyer v. Maas, 436 F.3d 684, 688 (6th Cir. 2006)). Consideration of a motion to dismiss under Rule 12(b)(6) is generally confined to the pleadings. Jones v. City of Cincinnati, 521 F.3d 555, 562 (6th Cir. 2008).

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Poe v. FCA US LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/poe-v-fca-us-llc-mied-2022.