SciRegs International, Inc. v. Identi Pharmaceuticals, LLC

CourtDistrict Court, D. Maryland
DecidedJune 13, 2022
Docket1:21-cv-02270
StatusUnknown

This text of SciRegs International, Inc. v. Identi Pharmaceuticals, LLC (SciRegs International, Inc. v. Identi Pharmaceuticals, 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
SciRegs International, Inc. v. Identi Pharmaceuticals, LLC, (D. Md. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

SCIREGS INTERNATIONAL, INC., *

Plaintiff, *

v. * Case No.: DLB-21-2270

IDENTI PHARMACEUTICALS, LLC, * et al., * Defendants. * MEMORANDUM OPINION SciRegs International, Inc. (“SciRegs”) alleges that Identi Pharmaceuticals, LLC (“Identi”), IdentiRx, LLC (“IdentiRx”), Flatwing Pharmaceuticals, LLC (“Flatwing”), and Estreno Pharmaceuticals, LLC (“Estreno”) failed to pay for consulting services rendered by SciRegs and that Rajneesh Kumar Ahuja, a member of the companies, intentionally misrepresented his intention to pay for those services. ECF 1-1. SciRegs asserts claims of breach of contract and unjust enrichment against the companies and a claim of intentional misrepresentation against Ahuja. Id. ¶¶ 23–53. Defendants moved to dismiss the complaint. ECF 10. The motion is fully briefed. ECF 12, 13. No hearing is necessary. Loc. R. 105.6 (D. Md. 2021). For the reasons set forth herein, defendants’ motion is granted in part and denied in part. I. Background Plaintiff SciRegs is a Maryland corporation with its principal place of business in Howard County, Maryland. ECF 1-1, ¶ 3. Defendants Identi, IdentiRx, Flatwing, and Estreno are each Delaware limited liability companies that transact business in Howard County, Maryland, and with the Food and Drug Administration (“FDA”) in Montgomery County, Maryland. Id. ¶¶ 3–7. Ahuja is a resident of Florida and either a member or managing member of the four defendant-companies as well as a non-party called “Chandra V.” Id. ¶ 8. According to SciRegs, Ahuja transacts business with the FDA and others in Maryland. Id. The claims in this case arise from services rendered by SciRegs to Identi, IdentiRx, Flatwing, and Estreno. SciRegs entered into written agreements with Flatwing in March 2018 (“Flatwing Agreement”) and Identi in August 2018 (“Identi Agreement”) to provide them

“consulting services” and to “act as [a] regulatory affairs agent” for them “in connection with [their] effort[s] to seek approval from the [FDA] for the manufacture and sale of certain pharmaceutical drugs.” Id. ¶¶ 10, 16. SciRegs does not allege that it entered into written agreements with IdentiRx or Estreno, but it claims it provided services to IdentiRx under the Identi Agreement and to Estreno under the Flatwing Agreement “pursuant to . . . Ahuja’s request and direction.” Id. ¶¶ 11, 17. SciRegs also alleges it provided services to “other affiliated entities,” but it identifies only Chandra V, a non-party. Id. ¶¶ 11, 16, 47; see ECF 1-1. SciRegs began rendering services under the Identi Agreement in January 2020 and under the Flatwing Agreement in February 2020, and it ceased to provide all services at the end of September 2020. ECF 1-1,

¶¶ 12, 18. On a monthly basis, SciRegs invoiced Ahuja for the services rendered to the defendant- companies, and payment was due upon receipt of the invoices. Id. ¶¶ 13, 19. For services stemming from the Identi Agreement, SciRegs allegedly is owed $188,312.50. Id. ¶ 14. For services under the Flatwing Agreement, SciRegs allegedly is owed $54,637.50. Id. ¶ 20. Despite written demands for payment for those services, the defendants have not paid SciRegs anything. Id. ¶¶ 15, 21. SciRegs alleges that Identi and IdentiRx breached the Identi Agreement and that Flatwing and Estreno breached the Flatwing Agreement by accepting its services but refusing to pay for them. Id. ¶¶ 26, 40. SciRegs did not attach either agreement to its complaint, but it alleges that, “[p]ursuant to the express terms of the Identi Agreement, a party who prevails in a legal action or proceeding to enforce any provision of the agreement is entitled to recover costs and expense[s], including reasonable attorney[s’] fees.” Id. ¶ 22. SciRegs makes no mention of the express terms of the Flatwing Agreement. SciRegs alternatively alleges that the defendant-companies were unjustly enriched because

SciRegs rendered services at their request or at Ahuja’s “request and direction” but never received payment. Id. ¶¶ 30–34, 42–47. It also alleges Flatwing and Estreno have been unjustly enriched by services rendered to Chandra V for which SciRegs was not paid. Id. ¶ 47. The relationship between Flatwing and Estreno, on the one hand, and Chandra V, on the other, is unclear from the face of the complaint. SciRegs also alleges Ahuja committed fraud. It claims that “Ahuja, acting on behalf of Identi, IdentiR[x], Flatwing[,] and Estreno, intentionally and with the intent to deceive SciRegs solicited and requested that SciRegs provide consulting services to each of these entities with no intention of paying for the services provided.” Id. ¶ 49. “In connection with providing the

consultation services to Identi, IdentiR[x], Flatwing[,] and Estreno as solicited and requested by [d]efendant Ahuja, SciRegs believed that [d]efendant Ahuja, and these entities, intended to pay SciRegs for the services provided.” Id. ¶ 50. “Moreover, [d]efendant Ahuja knew that SciRegs was working in good faith with the belief that they would be paid for the services provided and at no time requested SciRegs to stop providing the services for which SciRegs now seeks to recover payment.” Id. ¶ 51. “As a result of [d]efendant Ahuja’s deceit, SciRegs has suffered damages, including but not necessarily limited to, the non-payment for the services provided totaling $242,950.00.” Id. ¶ 52. SciRegs seeks punitive damages because of the alleged fraud. Id. ¶ 53. Defendants move to dismiss the complaint under Rule 12(b)(6) for failure to state a claim and move to dismiss the fraud claim against Ahuja under Rule 12(b)(2) for lack of personal jurisdiction. II. Standards of Review A Rule 12(b)(6) motion to dismiss for failure to state a claim “tests the legal sufficiency of

a complaint” and “should be granted unless the complaint ‘states a plausible claim for relief.’” In re Birmingham, 846 F.3d 88, 92 (4th Cir.), as amended (Jan. 20, 2017) (quoting Walters v. McMahen, 684 F.3d 435, 439 (4th Cir. 2012)); see Fed. R. Civ. P. 12(b)(6). To survive a Rule 12(b)(6) motion, the “complaint need only ‘give the defendant fair notice of what the . . . claim is and the grounds upon which it rests.’” Ray v. Roane, 948 F.3d 222, 226 (4th Cir. 2020) (quoting Tobey v. Jones, 706 F.3d 379, 387 (4th Cir. 2013)). Stated differently, the complaint must provide “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2)). When resolving a Rule 12(b)(6) motion to dismiss, the Court accepts the well- pleaded allegations as true. See Lokhova v. Halper, 995 F.3d 134, 141 (4th Cir. 2021) (citing

Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)). The Court “does not resolve contests surrounding facts, the merits of a claim, or the applicability of defenses.” Ray, 948 F.3d at 226 (quoting Tobey, 706 F.3d at 387). “Under Rule 12(b)(2), a defendant ‘must affirmatively raise a personal jurisdiction challenge, but the plaintiff bears the burden of demonstrating personal jurisdiction at every stage following such a challenge.’” UMG Recordings, Inc. v. Kurbanov, 963 F.3d 344, 350 (4th Cir. 2020) (quoting Grayson v. Anderson, 816 F.3d 262, 267 (4th Cir. 2016)). “When a district court decides personal jurisdiction without an evidentiary hearing, the plaintiff need only show a prima facie case of personal jurisdiction.” Wallace v. Yamaha Motors Corp., USA, No. 19-2459, 2022 WL 61430, at *1 (4th Cir. Jan. 6, 2022).

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SciRegs International, Inc. v. Identi Pharmaceuticals, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sciregs-international-inc-v-identi-pharmaceuticals-llc-mdd-2022.