Xenophon Strategies, Inc. v. Jernigan Copeland & Anderson, Pllc

CourtDistrict Court, District of Columbia
DecidedApril 6, 2016
DocketCivil Action No. 2015-1774
StatusPublished

This text of Xenophon Strategies, Inc. v. Jernigan Copeland & Anderson, Pllc (Xenophon Strategies, Inc. v. Jernigan Copeland & Anderson, Pllc) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Xenophon Strategies, Inc. v. Jernigan Copeland & Anderson, Pllc, (D.D.C. 2016).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA ____________________________________ ) XENOPHON STRATEGIES, INC., ) ) Plaintiff, ) ) v. ) Civil Action No. 15-1774 (RBW) ) JERNIGAN COPELAND & ) ANDERSON, PLLC, ) ) Defendant. ) ____________________________________)

MEMORANDUM OPINION

The plaintiff, Xenophon Strategies, Inc., brought this civil action in the Superior Court of

the District of Columbia against the defendant, Jernigan Copeland & Anderson, PLLC, alleging a

breach of contract claim based on the defendant’s failure to compensate the plaintiff for the

performance of the contract. See Petition for Removal (“Removal Pet.”) at 1; Removal Pet.,

Complaint (“Compl.”) ¶ 1. The defendant then removed the case to this Court pursuant to 28

U.S.C. § 1441(a) (2012). See Removal Pet. at 1. Currently before the Court is Defendant

Jernigan Copeland & Anderson PLLC’s Motion to Dismiss the Complaint for Lack of Personal

Jurisdiction (“Def.’s Mot.”). 1 Defendant’s Motion to Dismiss (“Def.’s Mot.”). Upon careful

1 There is also a Consent Motion to Vacate Entry of Default (“Consent Mot. to Vacate Default”) pending before the Court. Because the plaintiff does not object to that motion, the Court will grant the motion, as well as the relief requested therein, and that motion will not be the subject of this Opinion.

1 consideration of the parties’ submissions, 2 the Court concludes that it must deny the defendant’s

motion for the reasons that follow.

I. BACKGROUND

The plaintiff is a “strategic communications firm,” that was “organized under the laws of

the Commonwealth of Virginia” and “specializ[es] in public and media relations, public affairs,

crisis communication, advertising and advocacy, and government affairs.” Removal Pet.,

Compl. ¶ 2. The plaintiff’s “principal place of business is . . . [in] Washington, D.C.,” 3 id., and

the defendant is a law firm “organized under the laws of . . . Mississippi,” with its “principal

place of business . . . [also in] Mississippi,” id. ¶ 3.

In December 2014, the defendant contracted with the plaintiff for “a variety of public and

media relations services in support of a lawsuit that the [defendant] intended to file in . . .

Mississippi.”4 Id. ¶ 11; see also Def.’s Mem. at 2 (the plaintiff was “to perform some focused

public relations work in Mississippi and nationally in connection with a prospective lawsuit then

being contemplated by . . . Mississippi”); Removal Pet., Compl., Exhibit (“Ex.”) 1 (December 1,

2014 Contract (“Contract”)) ¶¶ 1.1-1.2 (defining the scope of services). The plaintiff “generated

the [contract at issue] from its office[] in [the District of Columbia] . . . on October 20, 2014,”

and then it was “subsequently counter-signed . . . on December 1, 2014[,] from . . . Mississippi”

2 In addition to the filings already identified, the Court considered the following submissions in rendering its decision: (1) Defendant Jernigan Copeland & Anderson PLLC’s Memorandum of Law in Support of Its Motion to Dismiss the Complaint for Lack of Personal Jurisdiction (“Def.’s Mem.”); (2) the Memorandum of Points and Authorities in Opposition to [the] Defendant’s Motion to Dismiss the Complaint for Lack of Personal Jurisdiction (“Pl.’s Opp’n”); and (3) Defendant Jernigan Copeland & Anderson PLLC’s Reply Memorandum in Support of Its Motion to Dismiss the Complaint for Lack of Personal Jurisdiction (“Def.’s Reply”). 3 Hereinafter, the Court will refer to Washington, DC as the “District of Columbia,” the “District,” or “D.C.” 4 The contract called for a $30,000 monthly retainer in return for the plaintiff’s services, as well as reimbursement for out-of-pocket expenses, all of which would be billed to the defendant in monthly invoices. See Removal Pet., Compl., Exhibit (“Ex.”) 1 (December 1, 2014 Contract (“Contract”)) ¶¶ 4.1-5.1.

2 by the defendant. Def.’s Mem., Ex. A (Affidavit of Arthur Jernigan in Support of Defendant

Jernigan Copeland’s Motion to Dismiss the Complaint for Lack of Personal Jurisdiction (“First

Jernigan Aff.”)) ¶ 6. The contract came into existence because

the Mississippi State Auditor’s office (the “Auditor”) [had earlier] retained [the defendant] to pursue potential claims against a group of nationally-recognized plaintiff[s’] attorneys located in Mississippi and elsewhere . . . . The . . . [a]ttorneys previously had represented the State in litigation against a number of large tobacco companies to recover funds on behalf of the State for Medicaid expenses caused by smoking. The State’s case against the tobacco companies ultimately settled, and the . . . [a]ttorneys negotiated to have their legal fees in the tobacco litigation paid to them directly by the tobacco companies. The State contend[ed] that the amounts paid to the . . . [a]ttorneys are public funds that should have been paid to the State, not directly to the . . . [a]ttorneys. The State retained [the defendant] to pursue recovery of these funds in litigation . . . .

After retaining [the defendant] to pursue . . . [the recovery of the funds that had been paid to the attorneys], the Auditor became concerned about the public relations fallout of pursuing the case against the . . . [a]ttorneys, particularly given their broad public recognition. In that regard, an advisor to the Auditor recommended retaining the plaintiff . . . . [The defendant] then contacted [the] [p]laintiff, on behalf of the State, regarding the potential retention of [the] [p]laintiff to perform certain public relations services related to the . . . [recovery effort].

Id. ¶¶ 4-5. In connection with the plaintiff’s contractual obligations, the plaintiff and the

defendant met “on more than one occasion in Mississippi . . . .” Id. ¶ 8. They never met in the

District of Columbia, and the defendant never traveled to this jurisdiction in connection with the

contract. Id. And aside from in-person meetings in Mississippi, “[a]ll other business between

[the defendant] and the [p]laintiff was transacted by phone and email.” Id.

In July 2015, the defendant “provided notice that it was terminating the [contract]

pursuant to its terms,” id. ¶ 9; see also Removal Pet., Compl. ¶ 13, and in September 2015, the

contract was terminated, see Def.’s Mem., Ex. A (First Jernigan Aff.) ¶ 11; see also Removal

Pet., Compl. ¶ 13. To date, the defendant has not paid any of the invoices billed by the plaintiff.

See Removal Pet., Compl. ¶¶ 18-19; see also Def.’s Mem., Ex. A (First Jernigan Aff.) ¶ 10

3 (“[The defendant]’s retention agreement with [Mississippi] provides that expenses associated

with the . . . [the defendant’s recovery efforts], including the fees and costs associated with [the]

[p]laintiff’s services, would be fronted by [the defendant] and other law firms [also] representing

the State in the . . . [recovery efforts]. These expenses [were later] to be reimbursed to [the

defendant] and the other law firms from amounts recovered by the State . . . . [The defendant]

agreed to retain [the] [p]laintiff on this basis [i.e.,] based on [the defendant’s] good faith reliance

on representations by the Auditor that the . . . [recovery effort] would proceed expeditiously

against the [p]laintiff[s’] [a]ttorneys. To date, however, the Auditor has not permitted the . . .

[recovery effort] to proceed, effectively leaving [the defendant] holding the bill for amounts

incurred on the State’s behalf, including [the] [p]laintiff’s fees and expenses. In addition, the

other Mississippi-based law firms that have a contractual obligation to contribute with [the

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Xenophon Strategies, Inc. v. Jernigan Copeland & Anderson, Pllc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/xenophon-strategies-inc-v-jernigan-copeland-anderson-pllc-dcd-2016.