Theodent, LLC v. Sadeghpour

CourtDistrict Court, E.D. Louisiana
DecidedAugust 5, 2022
Docket2:22-cv-00507
StatusUnknown

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

Bluebook
Theodent, LLC v. Sadeghpour, (E.D. La. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA THEODENT, LLC et al. CIVIL ACTION VERSUS NO. 22-507

DR. ARMAN SADEGHPOUR SECTION: “G”

ORDER AND REASONS Before the Court is Plaintiffs Theodent, LLC (“Theodent”) and Theocorp Holding Co., LLC’s (“Theocorp”) (collectively, “Plaintiffs”) “Motion to Remand.”1 Defendant Dr. Arman

Sadeghpour (“Defendant”) opposes the motion.2 On February 25, 2022, Defendant removed the action to this Court, asserting subject matter jurisdiction under 28 U.S.C. § 1331, based on Plaintiffs’ request for a declaratory judgment.3 For the reasons set forth in detail below, Defendant has not shown that Plaintiffs’ request for a declaratory judgment presents a federal question or that resolution of the claim will require interpretation of federal law. Therefore, considering the motion, the memoranda in support and in opposition, the record, and the applicable law, the Court grants the motion in part and remands this matter to the 24th Judicial District Court for the Parish of Jefferson, State of Louisiana for further proceedings. The Court denies Plaintiff’s request for attorneys’ fees.

1 Rec. Doc. 8. 2 Rec. Doc. 22. 3 Rec. Doc. 1. I. Background A. Factual Background On December 6, 2021, Plaintiffs filed a petition against Defendant in the 24th Judicial District Court for the Parish of Jefferson.4 Theocorp is a Louisiana limited liability company

engaged in the business of developing, owning, and commercializing intellectual property relating to various food, dental, and other oral care products.5 Theodent is a Louisiana limited liability company in the business of manufacturing and selling certain products for topical oral care, such as toothpaste, mouthwash and dental gel treatments.6 Theodent is a subsidiary of Theocorp.7 Defendant was a founding member of Theodent and Theocorp.8 He served as a manager, president, and member of Theodent, and a manager, president, and chief executive officer of Theocorp.9 Plaintiffs allege that Defendant breached his duties to the company by wrongfully charging Plaintiffs for over $1.2 million worth of personal goods including personal travel, designer clothes, perfume, electronics, incense, antique furniture, and a CPAP machine.10 Plaintiffs allege that Defendant deliberately misclassified these purchases in the company’s financials in an effort to conceal his spending.11

4 Rec. Doc. 1-1. 5 Id. at 1. 6 Id. 7 Id. 8 Id. 9 Id. 10 Id. at 5–6, 9. 11 Id. at 5–6. B. Procedural Background On December 6, 2021, Plaintiffs filed a Petition for Damages against Defendant in the 24th Judicial District Court for the Parish of Jefferson.12 Plaintiffs bring claims for breach of duties, conversion, misappropriation of company funds, and fraud.13 Plaintiffs also seek a declaratory

judgment confirming that they are the true owners of Theodent’s web domain, which Defendant acquired for the company but registered in his own name.14 On February 25, 2022, Defendant removed the action to this Court, asserting subject matter jurisdiction under 28 U.S.C. § 1331, based on Plaintiffs’ request for a declaratory judgment.15 Defendant advances two theories of why this claim establishes federal jurisdiction. First, Defendant asserts that Plaintiffs’ request for a declaratory judgment “is in reality a claim under the Anticybersquatting Consumer Protection Act (‘ACPA’) provision of the Lanham Act and therefore presents a federal question.”16 Second, Defendant contends that even if the Court views Plaintiffs’ declaratory judgment request as a state law cause of action, a federal question still exists because, to resolve that claim, the Court inevitably must interpret the ACPA.17 On March 28, 2022, Plaintiffs filed a motion to remand.18 On April 11, 2022, Plaintiffs

filed a notice of voluntary dismissal, seeking to dismiss the request for declaratory judgment under

12 Id. at 1–18. 13 Id. at 12–16. 14 Id. at 16–17. 15 Rec. Doc. 1. 16 Id. at 2–3. 17 Id. at 7. 18 Rec. Doc. 8. Federal Rule of Civil Procedure 41(a)(1)(A)(i).19 On May 10, 2022, Defendant filed an opposition to the motion to remand.20 On May 18, 2022, Plaintiffs filed a reply brief in further support of the motion to remand.21 II. Parties’ Arguments

A. Plaintiffs’ Arguments in Support of Remand Plaintiffs assert that this case should be remanded because no federal question is presented.22 Plaintiffs contend that the request for a declaratory judgment is not a claim for “cybersquatting” because Plaintiffs only seek resolution “of the threshold/predicate issue of ownership of the subject web domains as a matter of Louisiana agency and/or partnership law.”23 Plaintiffs note that Defendant has previously claimed that he owns those domains because he registered them under his personal name, but Plaintiffs allege that Defendant obtained those web domains as an agent acting on behalf of Theodent.24 Therefore, Plaintiffs assert that “Theodent is the true owner of those domains under Louisiana law, notwithstanding Defendant’s attempted registration.”25

Plaintiffs assert that under Louisiana law “[a] partner can purchase property in his own name for and on behalf of the partnership.”26 Because Defendant was acting as a partner when he

19 Rec. Doc. 15. 20 Rec. Doc. 22. 21 Rec. Doc. 26. 22 Rec. Doc. 8-1 at 2. 23 Id. 24 Id. 25 Id. 26 Id. at 5 (quoting Decatur-St. Louis Combined Equity Properties, Inc. Venture v. Abercrombie, 411 So. 2d 677, 680 (La. App. 4 Cir. 1982)). registered the domain names, Plaintiffs argue that the domains belong to Theodent.27 Additionally, even if Defendant had intended to obtain the domains for himself, Plaintiffs assert that he would have been running afoul of his obligations as a mandatary under Louisiana law.28 Plaintiffs point out that they do not allege that Defendant traffics in or otherwise uses the domain names in the course of any trade.29 Instead, Plaintiffs state that they are seeking a ruling to confirm that, because

Defendant was directed by Theodent to obtain these domains for company use, Theodent is the owner of the domains.30 Plaintiffs contend that Defendant has not established which provisions of the ACPA will need to be interpreted in this litigation.31 Therefore, Plaintiffs argue that this case should be remanded because Defendant has failed to meet his burden of affirmatively showing that federal jurisdiction exists in this case.32 Finally, Plaintiffs request that the Court order Defendant to pay Plaintiffs’ reasonable costs, expenses, and attorneys’ fees incurred as a result of the removal.33 B. Defendant’s Arguments in Opposition As an initial matter, Defendant asserts that Plaintiffs cannot voluntarily dismiss the

declaratory judgment request under Federal Rule of Civil Procedure 41(a) because the Rule speaks to dismissal of an entire action, not a particular claim.34 Moreover, Defendant points out that

27 Id. 28 Id. 29 Id. at 6. 30 Id. 31 Id. at 7. 32 Id. 33 Id. at 8. 34 Rec. Doc. 22 at 1. jurisdiction is decided at the time of removal, and any subsequent dismissal of a federal claim would not divest this Court of jurisdiction.35 Defendant asserts that the Petition states a federal cause of action.36 Specifically, Defendant argues that Plaintiffs’ declaratory judgment request alleging Dr. Sadeghpour’s

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Theodent, LLC v. Sadeghpour, Counsel Stack Legal Research, https://law.counselstack.com/opinion/theodent-llc-v-sadeghpour-laed-2022.