William Gottlieb Management Co, LLC v. Carlin

CourtDistrict Court, S.D. New York
DecidedMay 6, 2025
Docket1:20-cv-08907
StatusUnknown

This text of William Gottlieb Management Co, LLC v. Carlin (William Gottlieb Management Co, LLC v. Carlin) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
William Gottlieb Management Co, LLC v. Carlin, (S.D.N.Y. 2025).

Opinion

USDC SDNY DOCUMENT ELECTRONICALLY FILED UNITED STATES DISTRICT COURT DOC #: SOUTHERN DISTRICT OF NEW YORK DATE FILED: _ 5/6/2025 WILLIAM GOTTLIEB MANAGEMENT CO., LLC, 20-CV-8907 (VM) (BCM) Plainutt, OPINION AND ORDER -against- ALLAN CARLIN, Defendant.

BARBARA MOSES, United States Magistrate Judge. Plaintiff William Gottlieb Management Co. (WGM), a real estate company, retained defendant Allan Carlin, a lawyer, to perform legal services. See Compl. (Dkt. 1) ¥ 8. In 2017, during the course of the engagement, WGM provided Carlin with "a user login and access to the WGM Dropbox Professional Account" (the WGM Dropbox), including various shared folders. Id. The WGM Dropbox "is stored in 'the Cloud." Jd. 4 9. On October 24, 2018, WGM "terminated Defendant Carlin's services." Id. 4 10. However, it did not change or revoke his login credentials. Nor did it take any other steps to restrict his electronic access to the shared folders in the WGM Dropbox. See Order dated Nov. 8, 2024 (Dkt. 93) at 1 n.1. On November 28, 2018, Carlin sued WGM in state court for legal fees owed to him. Compl. {| 11.1 Two years later, on October 23, 2020, WGM filed this action, alleging that Carlin violated the Stored Communications Act and breached a common-law duty of care to his former client when he "accessed, viewed, added, edited, and/or deleted files and folders” within the WGM

' Carlin won. On February 24, 2022, the New York Supreme Court, New York County entered judgment in Carlin's favor in the amount of $708,581.90, and on January 10, 2023, the Appellate Division affirmed. See Carlin v. William Gottlieb Mgmt. Co., LLC, 212 A.D.3d 429, 429, 181 N.Y.S.3d 91, 92 (1st Dep't 2023), leave to appeal denied, 39 N.Y.3d 914, 210 N.E.3d 950 (2023).

Dropbox, using his WGM-authorized login credentials, at various times in 2019. Compl. ¶¶ 12- 15.2 On June 21, 2024, Carlin filed an amended answer and counterclaim, alleging that he "uploaded" various files to the WGM Dropbox – both before and after October 24, 2018 – and that WGM "wrongfully detain[ed] the same." Countercl. (Dkt. 61 at ECF pp. 5-7) ¶¶ 1-4. On August

5, 2024, plaintiff moved to dismiss the counterclaim, arguing principally that it failed to state a cognizable common-law claim for replevin. (Dkt. 76.) On January 17, 2025, I recommended that the motion to dismiss be granted but that defendant be given 30 days to seek leave to amend. See Report and Recommendation (R&R) (Dkt. 100) at 10-11. Neither party objected to the R&R. Instead, on February 18, 2025, defendant filed a motion for leave to amend his counterclaim pursuant to Fed. R. Civ. P. 15(a)(2) (Dkt. 101), supported by his declaration (Carlin Decl.) (Dkt. 102), which attaches a copy of his proposed Amended Counterclaim (Prop. Am. Countercl.) (Dkt. 102-1), and a memorandum of law (Def. Mem.) (Dkt. 106). On February 25, 2025, plaintiff filed an opposition memorandum (Pl. Opp.) (Dkt. 107), and

on February 27, 2025, defendant filed a reply brief (Def. Reply) (Dkt.108). For the reasons that follow, defendant's motion will be granted. I. BACKGROUND A. Original Counterclaim In his four-paragraph original counterclaim, defendant alleged that he uploaded the following files (which he called "Carlin's Files"), on the following dates, to the following folders within the WGM Dropbox (which he called "his Dropbox"):

2 Plaintiff's claims for breach of the Computer Fraud and Abuse Act and trespass to chattels were dismissed on March 26, 2024. (Dkt. 54.) (a) Ten (10) files on or about September 12, 2018 to a folder titled "Gottlieb Accounting Matters"; (b) Approximately one hundred forty-three (143) files on or about July 14, 2018, including, but not limited to, twenty-three (23) files that were upload[ed] to a folder titled "Greenapple"; (c) Eighteen (18) files on or about August 11, 2019 to a folder titled "Carlin v. WGM"; (d) Two (2) files on or about August 11, 2019 to a folder titled "Gottlieb Accounting Matters"; (e) One (1) file titled "Document.docx" on or about August 11, 2019; (f) Thirteen (13) files on or about August 15, 2019 to a folder titled "Carlin v. WGM." Countercl. ¶ 1. Carlin then asserted, in conclusory terms, that he was "entitled to the immediate possession of [the files he uploaded]," but that WGM continued to "wrongfully detain the same[.]" Id. ¶¶ 2-3. He further alleged that on May 21, 2024 (more than four years after his last upload and more than three years after this action was filed), he demanded that WGM "return Carlin's Files," but it refused "and still refuses to deliver the same to defendant." Id. ¶ 4. In the Report and Recommendation issued on January 17, 2025, I concluded that although intangible property may be the subject of a claim for replevin in New York, see R&R at 7-8, defendant's counterclaim failed for two fundamental reasons. Id. at 8. First, the original counterclaim failed to plead "any facts showing that he 'has a possessory right to [the files] superior to that of [WGM],' or that he is 'entitled to the immediate possession of that property.'" R&R at 8 (quoting Syl Consulting LLC v. Cmty. USA II LLC, 2024 WL 340966, at *3 (S.D.N.Y. Jan. 30, 2024)). For example, Carlin did not disclose "who created the files that he uploaded to the WGM Dropbox, when they were created, the purpose for which they were created, or their contents." Id. at 3. Instead, he pled "naked conclusions" as to the elements of the cause of action, which is insufficient under well-settled federal pleading standards. Id. at 8-9. Second, the original counterclaim failed to plead any facts showing that Carlin suffered "a concrete and particularized injury caused by [WGM] and redressable by the court," and thus that he had standing to sue. R&R at 9 (quoting TransUnion LLC v. Ramirez, 594 U.S. 413, 423 (2021)). Specifically, defendant failed to show that he was injured by WGM's retention of the files that he voluntarily uploaded in 2018 and 2019, or by its failure to deliver those files to him when he

requested that it do so in 2024. Id. at 3, 9. B. Proposed Amended Counterclaim In his 20-paragraph proposed amended counterclaim, defendant alleges that he created two Dropbox accounts – a personal Dropbox account, and a William Gottlieb Dropbox account (Carlin WGM Dropbox), both while serving as an attorney for plaintiff. Prop. Am. Countercl. ¶¶ 1-2. The Carlin WGM Dropbox was password-protected. Id. ¶ 2. Defendant alleges that on July 14, 2018, he intended to upload the following files from his password-protected laptop to his personal Dropbox but instead mistakenly uploaded them to the Carlin WGM Dropbox: (a) Approximately 120 files that he moved to a folder he created and titled "East End Kitchen" (East End Kitchen Files); and (b) Approximately 23 files that he moved to a folder he created and titled Greenapple (Greenapple Files) (together, the Uploaded Files). Id. ¶¶ 3-5. Carlin explains that he "uploaded the Uploaded Files for external storage purposes. He intended to store them in his personal Dropbox and not in his Carlin WGM Dropbox. When those files were uploaded, defendant had mistakenly been logged into his Carlin WGM Dropbox account instead of his personal Dropbox account. Defendant did not retain other copies, and does not have other copies, of the Uploaded Files." Prop. Am. Countercl. ¶ 5. Defendant adds that when he "mistakenly uploaded the Uploaded Files to the Carlin WGM Dropbox, he did not intend to provide plaintiff with possession of the Uploaded Files." Id. ¶ 14. Moreover, "[d]efendant restricted access to the Uploaded Files on the WGM Dropbox to himself, individually, and never shared them with plaintiff or any third party." Id. ¶ 8.

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William Gottlieb Management Co, LLC v. Carlin, Counsel Stack Legal Research, https://law.counselstack.com/opinion/william-gottlieb-management-co-llc-v-carlin-nysd-2025.