Zhang v. Dixon

District Court, District of Columbia·Decided July 23, 2026·No. Civil Action No. 2026-1689·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

GUANGLI ZHANG,

Plaintiff, v. Civil Action No. 26-1689 (JEB)

LEKESIA LAVETTE DIXON, et al.,

Defendants.

MEMORANDUM OPINION

This case concerns a gestational-surrogacy arrangement through which Plaintiff Guangli Zhang became a father of twins. In his telling, Zhang was defrauded and deceived by every major participant in that arrangement — the surrogate mother, the surrogacy agency and its director, the delivering physician and the hospital where his children were born, and an escrow company that facilitated payments throughout the process. Proceeding pro se, he brought this action against those parties for their purported fraud. The escrow company — SeedTrust Escrow, LLC — now moves to dismiss for lack of subject-matter and personal jurisdiction and for failure to state a claim. It also asks the Court to declare Zhang a vexatious litigant subject to a pre-filing injunction.

Finding that personal jurisdiction does not exist for SeedTrust, the Court grants its Motion. The Court declines, however, to declare Plaintiff a vexatious litigant. I. Background The Complaint here offers very little by way of detail. The Court nevertheless draws what it can — as it must at this stage — from that pleading. See Sparrow v. United Air Lines, Inc., 216 F.3d 1111, 1113 (D.C. Cir. 2000). Because Plaintiff proceeds pro se, the Court also

considers assertions contained in his Opposition to the Motion to Dismiss. See Brown v. Whole Foods Mkt. Grp., Inc., 789 F.3d 146, 152 (D.C. Cir. 2015).

At some unspecified time, Zhang entered into a surrogacy arrangement culminating in the birth of twin children. See ECF No. 1 (Compl.) at ECF p. 9. On May 18, 2026, he filed this action against six parties to that arrangement: (1) the surrogate mother, Lekesia Lavette Dixon (located in Texas); (2) the surrogacy agency, Tiny Sprouts Surrogacy, Inc. (located in either California or Texas, compare id. at 7, with ECF No. 17 (Def. Address Change)); (3) its director, Bridget deZeeuw (also in California or Texas); (4) Ascension Providence Hospital, where the children were born (located in Texas); (5) Dr. Casey A. Leamon, the delivering obstetrician at that hospital (also in Texas); and (6) an escrow company, SeedTrust Escrow, LLC (located in Florida). See Compl. at ECF pp. 1, 6–8, 11, 13, 17, 21, 28, 35. Although Plaintiff does not reveal where he resided during the events underlying this dispute, he now lives in D.C. Id. at ECF p. 11; see also ECF No. 12 (Opp.) at ECF p. 2 (indicating that Plaintiff moved here in February 2025).

Zhang alleges that Dixon, Tiny Sprouts, deZeeuw, Ascension, and Leamon lied to him about how Dixon delivered the children. Id. at ECF pp. 9–35. He maintains that this misrepresentation, together with falsified receipts issued by Tiny Sprouts and payments accepted by Dixon, amounts to fraud. Id. As to SeedTrust, Plaintiff contends that the company (1) failed to authenticate the fabricated receipts, (2) released escrowed funds to Dixon and Tiny Sprouts despite Zhang’s sounding the alarm on the other Defendants’ purported fraud, and (3) ultimately closed Plaintiff’s account without refunding him for the funds he paid based on the fabricated receipts. This, too, in Zhang’s telling, constitutes fraud. Id. at ECF pp. 9, 35, 37, 39.

Before filing this action, Zhang sued SeedTrust and three of our same Defendants in D.C.

Superior Court on similar grounds. Id. at ECF p. 10. That court granted SeedTrust’s motion to dismiss for lack of personal jurisdiction and failure to state a claim. Zhang v. Dixon, No. 2025- 2137, Oral Ruling (D.C. Super. Ct. May 14, 2026); see also Compl. at ECF p. 10. Zhang’s current Complaint largely cites federal criminal statutes related to his fraud allegations. Id. at ECF pp. 3, 14–40. SeedTrust now moves to dismiss for lack of subject-matter jurisdiction and personal jurisdiction and failure to state a claim. See ECF No. 10 (MTD). II. Legal Standard When a defendant brings a Rule 12(b)(1) motion to dismiss, the plaintiff must demonstrate that the court indeed has subject-matter jurisdiction to hear his claims. See Lujan v. Defs. of Wildlife, 504 U.S. 555, 561 (1992); US Ecology, Inc. v. U.S. Dep’t of Interior, 231 F.3d 20, 24 (D.C. Cir. 2000). “Because subject-matter jurisdiction focuses on the court’s power to hear the plaintiff’s claim, a Rule 12(b)(1) motion [also] imposes on the court an affirmative obligation to ensure that it is acting within the scope of its jurisdictional authority.” Grand Lodge of Fraternal Ord. of Police v. Ashcroft, 185 F. Supp. 2d 9, 13 (D.D.C. 2001). In policing its jurisdictional borders, the court treats the complaint’s factual allegations as true and grants the plaintiff the benefit of all reasonable inferences. See Jerome Stevens Pharms., Inc. v. FDA, 402 F.3d 1249, 1253 (D.C. Cir. 2005).

Under Rule 12(b)(2), a defendant may move to dismiss if the court lacks personal jurisdiction over it. The plaintiff bears the burden of establishing such jurisdiction, see Erwin- Simpson v. AirAsia Berhad, 985 F.3d 883, 888 (D.C. Cir. 2021), and its requirements “must be met as to each defendant.” Rush v. Savchuk, 444 U.S. 320, 332 (1980). The Court resolves factual discrepancies in favor of the plaintiff. Crane v. N.Y. Zoological Soc’y, 894 F.2d 454,

456 (D.C. Cir. 1990). Conclusory statements, however, are insufficient to satisfy the plaintiff’s burden. IMAPizza, LLC v. At Pizza Ltd., 334 F. Supp. 3d 95, 107–08 (D.D.C. 2018). When personal jurisdiction is challenged, a court may look beyond the four corners of the complaint to other evidence. See Sharp Corp. v. Hisense USA Corp., 292 F. Supp. 3d 157, 165–66 (D.D.C. 2017).

Rule 12(b)(6), meanwhile, provides for the dismissal of an action where a complaint fails “to state a claim upon which relief can be granted.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). Although “detailed factual allegations” are not necessary to withstand a Rule 12(b)(6) motion, id. at 555, “a complaint must contain sufficient factual matter, [if] accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 570). Although a plaintiff may survive a Rule 12(b)(6) motion even if “recovery is very remote and unlikely,” the facts alleged in the complaint “must be enough to raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555–56 (quoting Scheuer v. Rhodes, 416 U.S. 232, 236 (1974)). III. Analysis The Court begins with the threshold jurisdictional issues and then turns to Defendant’s vexatious-litigant request.

A. Subject-Matter Jurisdiction Subject-matter jurisdiction defines the categories of disputes a federal court may hear.

Plaintiff here invokes one jurisdictional basis — federal question, see Compl. at ECF p. 3 — which encompasses “all civil actions arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331. Whether such jurisdiction exists is governed by the “well- pleaded complaint rule.” Caterpillar Inc. v. Williams, 482 U.S. 386, 392 (1987). That is, “a suit

‘arises under’ federal law” within the meaning of § 1331 “when the plaintiff’s statement of his own cause of action shows that it is based upon [federal law].” Vaden v. Discover Bank, 556 U.S. 49, 60 (2009) (alteration in original) (quotation marks and citation omitted).

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