Van Rooyen v. Greystone Home Builders, LLC

295 F. Supp. 3d 735
CourtDistrict Court, N.D. Texas
DecidedMarch 14, 2018
DocketCivil Action No. 3:17–CV–2298–D
StatusPublished
Cited by11 cases

This text of 295 F. Supp. 3d 735 (Van Rooyen v. Greystone Home Builders, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Rooyen v. Greystone Home Builders, LLC, 295 F. Supp. 3d 735 (N.D. Tex. 2018).

Opinion

SIDNEY A. FITZWATER, UNITED STATES DISTRICT JUDGE

Defendants1 move to dismiss this action under Fed. R. Civ. P. 12(b)(2) for lack of personal jurisdiction, or under Rule 12(b)(3) for improper venue. Alternatively, they move to transfer venue under 28 U.S.C. § 1404(a) for the convenience of the parties and witnesses and in the interest of justice. For the following reasons, the court denies the motions to dismiss for lack of personal jurisdiction or improper venue, grants the alternative motion to transfer venue under 28 U.S.C. § 1404(a), and transfers this action to the Eastern District of Michigan.

I

Plaintiffs Cathrine Van Rooyen and Cornelius Johannes Van Rooyen ("the Van Rooyens" or "plaintiffs"), both residents of the Republic of South Africa, were approached by Peter Weaver ("Weaver") in early 2016 about purchasing rental property in Dallas.2 The Van Rooyens received marketing materials advertising new construction rental properties built in high demand areas by defendant Greystone Home Builders, LLC ("Greystone"). The marketing materials advertised a three-year rental guarantee, completed construction within six months, and "clear title" to the property. Defendant Angela Reiter ("Reiter") directed and facilitated the transaction, and plaintiffs signed a property management agreement ("First Property *740Management Agreement") with defendant Phillip Ryan, LLC ("Phillip Ryan").

In February 2016 the Van Rooyens executed a Real Estate Purchase and Sale Agreement ("Real Estate Agreement") to purchase a piece of property referred to as the "Bumelia property," and wired a deposit to Phillip Ryan (the designated escrow agent). Greystone provided a deposit receipt to the Van Rooyens, however, that identified a different property (the Devilwood property) than was the subject of the Real Estate Agreement. Reiter represented to the Van Rooyens that the Bumelia property had been purchased by another investor, and that the Devilwood property had been substituted. Weaver then offered the Van Rooyens the option to purchase a third property (the Shortleaf property) because the Devilwood property had also already been sold. The Van Rooyens allege that the Bumelia and Devilwood properties do not actually exist.

In March 2016, per defendants' advice, the Van Rooyens created an entity called Jasmine Green, LLC ("JGL") and opened a bank account in the United States to facilitate the transaction for the Shortleaf property. The Van Rooyens paid Phillip Ryan and Greystone, respectively, the relevant fees for creating JGL and the bank account. Phillip Ryan Texas, LLC ("Ryan Texas") was designated as JGL's registered agent.

In May 2016 Reiter sent the Van Rooyens photographs depicting a residence under construction. Reiter then convinced the Van Rooyens to sign JGL's initial operating agreement, which transferred operational control of JGL to Ryan Texas. Defendant David Clemons ("Clemons") assured the Van Rooyens that construction would close around July 19, 2016. Over the next several months, Clemons requested and received several addenda to the Real Estate Agreement reflecting later closing dates.

In September 2016 the Van Rooyens executed another property management agreement ("Second Property Management Agreement") naming Clemons, a manager of Ryan Texas, as the property manager. Later, defendant Sean Tissue ("Tissue") sent the Van Rooyens a lease guarantee promising three years of lease payments. In October 2016 Clemons sent the Van Rooyens photographs of a nearly completed residence.

In November 2016 Greystone sent the Van Rooyens an email canceling the Real Estate Agreement. Further investigations revealed that Greystone never owned the Shortleaf property. Phillip Ryan, on behalf of Greystone, executed a promissory note ("Note") under which Greystone promised to pay back the deposit amount with interest. Suspecting that defendants were engaged in a fraudulent scheme, the Van Rooyens paid a fee to remove Ryan Texas as the registered agent of JGL. Defendants have failed to return any money or make any payments on the Note.

In 2017 the Van Rooyens brought this lawsuit against Greystone, Phillip Ryan, Ryan Texas, Sycamore Homes, LLC, Sean Ryan, Clemons, Tissue,3 Justin McRae, and Reiter, alleging a civil RICO4 claim and claims for statutory fraud, common *741law fraud, money had and received, breach of contract, declaratory judgment for a constructive trust, piercing the corporate veil, and conspiracy. All defendants except Reiter now move to dismiss under Rule 12(b)(2) for lack of personal jurisdiction, or under Rule 12(b)(3) for improper venue, or, alternatively, to transfer venue under 28 U.S.C. § 1404(a) for the convenience of the parties and witnesses and in the interest of justice. The Van Rooyens oppose the motions.5

II

The court begins by addressing defendants' Rule 12(b)(2) motion to dismiss for lack of personal jurisdiction.

A

"When a nonresident defendant presents a motion to dismiss for lack of personal jurisdiction, the plaintiff bears the burden of establishing the district court's jurisdiction over the nonresident." Stuart v. Spademan , 772 F.2d 1185, 1192 (5th Cir.1985) (citing Thompson v. Chrysler Motors Corp. , 755 F.2d 1162, 1165 (5th Cir.1985) ; D.J. Invs., Inc. v. Metzeler Motorcycle Tire Agent Gregg, Inc. , 754 F.2d 542, 545 (5th Cir.1985) ). The determination whether a federal district court has in personam jurisdiction over a nonresident defendant is bipartite. The court first decides whether the long-arm statute of the state in which it sits confers personal jurisdiction over the defendant. If it does, the court then resolves whether the exercise of jurisdiction is consistent with due process under the United States Constitution. See Mink v. AAAA Dev. LLC , 190 F.3d 333, 335 (5th Cir.1999).6

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Bluebook (online)
295 F. Supp. 3d 735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-rooyen-v-greystone-home-builders-llc-txnd-2018.