Judge: Theresa M. Traber, Case: 24STCV33506, Date: 2025-02-20 Tentative Ruling
Case Number: 24STCV33506 Hearing Date: February 20, 2025 Dept: 47
24STCV33506Tentative Ruling
Judge Theresa M. Traber, Department 47
HEARING DATE: February 20, 2025 TRIAL DATE: Not set
CASE: Rex Alexander, et al. v. Travers Thorp
Alberga Attorneys at Law
CASE NO.: 24STCV33506
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MOTION
TO QUASH SERVICE OF SUMMONS FOR LACK OF PERSONAL JURISDICTION OR DISMISS THE
ACTION ON THE GROUNDS OF INCONVENIENT FORUM
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MOVING PARTY: Defendant Travers Thorp Alberga Attorneys at Law
(Defendant)
RESPONDING PARTY(S): Plaintiffs Rex
Alexander, Mark Alfano, Cecil Kyte, Rand Barton, Jeff Katofsky, Misty Hammer,
Samuel 1, Ltd., and Raisha Park (collectively, Plaintiffs)
CASE
HISTORY:
STATEMENT
OF MATERIAL FACTS AND/OR PROCEEDINGS:
Plaintiffs allege they are residents of different states and countries.
Rex Alexander alleges he is a resident of Texas. Mark Alfano, Jeff Katofsky,
and Raisha Park allege they are residents of California. Cecil Lyte alleges he
is a resident of Arizona and Nevada. Rand Barton alleges he is a resident of
Idaho. Misty Hammer alleges she is a resident of Utah and Arizona. Alexander
Menzel alleges he is a resident of Brazil in South America. Samuel 1, LTC is a
Cayman Islands entity. Defendant is an international law firm based in the
Cayman Islands. The Complaint alleges two causes of action: (1)
professional negligence, and (2) breach of fiduciary duty. Plaintiffs claim as
follows.
On April 2023, the Armand Hammer
Foundation, Inc. (AHF) brought an action (Action) against Hammer International
Foundation (HIF) in the Cayman Islands. HIF hired Defendant to represent them.
Plaintiffs were “members, officers, and directors of HIF.” Around May or June
2023, Defendant named Plaintiffs as defendants to the Action without their
knowledge or permission. Defendant made HIF the nominal party and Plaintiffs
the primary and responsible parties without their permission or knowledge.
Plaintiffs claim that Defendant
failed to properly update them about the Action. Defendant did not inform
Plaintiffs that primary parties in the Cayman Islands are responsible for
attorney fees, costs, and indemnification penalties if they are unsuccessful.
Defendant never communicated with Raisha Park, Alexander Menzel, Cecil Kyte, or
Rand Barton. Defendant took a month to provide a breakdown of a $150,000 bill after
Plaintiffs made three requests.
When Defendant finally provided the
breakdown, the bill had increased. The breakdown included $450,000 for
outstanding attorney fees, $350,000 for the next three weeks, and $35,000 for
expert costs. Defendant told Plaintiffs they would withdraw if Plaintiffs did
not pay $500,000 within the next three days. As a result, Plaintiffs had to
seek out new counsel and a trial continuance after Plaintiffs paid $250,000 in
adjournment fees.
Due to HIF’s legal fees exceeding
its liquid assets, Plaintiffs placed HIF into Chapter 11 Bankruptcy in a US
Bankruptcy Court in California. Plaintiffs state that the bankruptcy should
have placed the case in a stay, but the “judge did not care” and became upset
at Plaintiffs. The judge fined Plaintiffs $40,000 and defaulted the
Plaintiffs.
Later, trial occurred without
Plaintiffs’ involvement. The final ruling found Plaintiffs jointly and
severally liable for indemnity and penalty costs and made the judgment
retroactive for more than three years. Plaintiffs appealed, but they fear the
judge may dismiss the appeal before it can be heard. Plaintiffs allege that the
judge may do this to cover up “his egregious behavior … and then … hide his
actions from the Appellate Court.” Plaintiffs allege that the judge was once a
partner at the firm representing AHF.
Specially
Appearing Defendant Travers Thorp Alberga Attorneys at Law moves to quash service
of the summons for lack of personal jurisdiction, or alternatively, dismissing
the action on the grounds of inconvenient forum.
In their
opposition, Plaintiffs moves for a continuance to conduct discovery to
determine the nature and extent of Defendant’s contacts in California.
TENTATIVE RULING:
Specially Appearing Defendant
Travers Thorp Alberga Attorneys at Law’s Motion to Dismiss the Action on the
Ground of Inconvenient Forum as to plaintiffs Jeff Katofsky, Rex Alexander,
Mark Alfano, Rand Barton, Misty Hammer, and Raisha Park is GRANTED.
Specially Appearing Defendant
Travers Thorp Alberga Attorneys at Law’s Motion to Quash Service of Summons for
Lack of Personal Jurisdiction is GRANTED.
Plaintiffs’ Motion for Continuance
to Conduct Discovery to Determine the Nature and Extent of Defendant’s Contacts
in the State of California is DENIED.
DISCUSSION:
Motion to Dismiss the Action on the Grounds of
Inconvenient Forum
Timeliness
“A defendant, on or before the last
day of his or her time to plead or within any further time that the court may
for good cause allow, may serve and file a notice of motion for one or more of
the following purposes: (1) To quash service of summons on the ground of lack
of jurisdiction of the court over him or her[; and] (2) To stay or dismiss the
action on the ground of inconvenient forum.” (Code Civ. Proc., § 418.10, subds.
(a)(1)-(2).) A defendant has 30 days after the service of the summons, or 40
days if service was effectuated by substitute service, to file a responsive
pleading. (Code Civ. Proc., § 412.20, subds. (a)(3), (b).)
Analysis
Here, Defendant filed the instant
motion on January 21, 2025, after Plaintiffs served it via personal service on
December 20, 2024. Thirty days after December 20, 2024 is January 19, 2025. As
January 19, 2025 is a Sunday and January 20, 2024 was a court holiday, the last
day Defendant could file this instant motion is January 21, 2025. Thus, the
motion is timely.
Legal
Standard
Code of Civil Procedure section
410.30, subdivision (a) provides: “When a court upon motion of a party or its
own motion finds that in the interest of substantial justice an action should
be heard in a forum outside this state, the court shall stay or dismiss the
action in whole or in part on any conditions that may be just.” (Code Civ.
Proc., § 410.30, subd. (a).)
“In determining whether to grant a
motion based on forum non conveniens, a court must first determine whether the
alternate forum is a ‘suitable’ place for trial. If it is, the next step is to
consider the private interests of the litigants and the interests of the public
in retaining the action for trial in California.” (Stangvik v. Shiley
Incorporated (1991) 54 Cal.3d 744, 751.)
“An alternative forum is suitable
if it has jurisdiction and the action in that forum will not be barred by the
statute of limitations. It bears emphasis that ‘[i]t is sufficient that the
action can be brought, although not necessarily won, in the suitable
alternative forum.’ That the law is less favorable to the plaintiffs in the
alternative forum, or that recovery would be more difficult if not impossible,
is irrelevant to the determination whether the forum is suitable unless ‘the
alternative forum provides no remedy at all.’” (Guimei v. General Electric
Co. (2009) 172 Cal.App.4th 689, 696 [citations omitted].) “The ‘no remedy
at all’ exception applies ‘only in “rare circumstances,” such as where the
alternative forum is a foreign country whose courts are ruled by a
dictatorship, so that there is no independent judiciary or due process of law.’
[Citation.]” (Id. at p. 697.)
“The private interest factors are
those that make trial and the enforceability of the ensuing judgment
expeditious and relatively inexpensive, such as the ease of access to sources
of proof, the cost of obtaining attendance of witnesses, and the availability
of compulsory process for attendance of unwilling witnesses. The public
interest factors include avoidance of overburdening local courts with congested
calendars, protecting the interests of potential jurors so that they are not
called upon to decide cases in which the local community has little concern,
and weighing the competing interests of California and the alternate jurisdiction
in the litigation.” (Guimei v. General Electric Co., supra, 172
Cal.App.4th at 701 [citations omitted].)
“On a motion for forum non
conveniens, the defendant, as the moving party, bears the burden of proof. The
granting or denial of such a motion is within the trial court’s discretion, and
substantial deference is accorded its determination in this regard.” (Stangvik
v. Shiley Incorporated, supra, 54 Cal.3d at 751.)
When there is a mandatory forum
selection clause, however, the Court will generally not consider the
traditional forum non conveniens factors. (Olinick v. BMG Entertainment (2006)
138 Cal.App.4th 1286, 1294.) A mandatory forum selection clause is one that “contains
express language of exclusivity of jurisdiction, specifying a mandatory
location for litigation.” (Ibid.)
A forum selection clause is valid
and should be given effect unless enforcement of the clause would be
unreasonable. (Intershop Communications v. Superior Court (2002)
104 Cal.App.4th 191, 196.) For a forum selection clause to be
enforceable, the forum must be suitable, meaning that there is jurisdiction
over the matter, and the statute of limitations did not expire. (American
Online v. Superior Court (2001) 90 Cal.App.4th 1, 12, fn.5.) Forum
selection clauses should not be enforced if the agreement was impacted by
fraud, undue influence, or overweening bargaining power; enforcement would be
unreasonable and unjust; or proceedings in the selected forum would be so
difficult and inconvenient that a party would be deprived of a day in
court. (Alan v. Superior Court (2003) 111 Cal.App.4th 217,
230.)
“[A] range of transaction
participants, parties and non-parties, should benefit from and be subject to
forum selection clauses.” (Manetti-Farrow, Inc. v. Gucci America, Inc.
(1988) 858 F.2d. 509, 514, fn. 5, citing Clinton v. Janger (1984) 583
F.Supp.284, 294.) “A forum selection clause may also be enforced against a
plaintiff who is not a party to the contract in question if the plaintiff is
‘closely related to the contractual relationship.’ The plaintiff challenging
the forum selection clause has the burden of showing, in response to a
defendant's motion to stay or dismiss, that enforcement of the clause would be
unreasonable under the circumstances.” (Net2Phone, Inc. v. Superior Court
(2003) 109 Cal.App.4th 583, 588, quoting Lu v. Dryclean-U.S.A. of California
(1992) 11 Cal.App.4th 1490, 1493.)
Analysis
Defendant argues that the case must
be dismissed because the dispute is subject to a mandatory forum selection clause
specifying that litigation must occur in the Cayman Islands and shall be
governed by Cayman Islands law. (Motion pp. 6, 17-19.)
It is undisputed that the Retainer
Agreement contains the following provision:
“Governing Law & Jurisdiction -
This letter shall be governed by, and construed in accordance with, the laws of
the Cayman Islands. Any person or entity relying on this agreement submits to
the exclusive jurisdiction of the Courts of the Cayman Islands as the sole
tribunal for the determination of any matters which relate to the legal advice
provided and/or documentation produced by Travers Thorp Alberga.” (Alberga
Decl., Ex. 1 at pp. 5, 11.)
Defendant
declares the clause “contains express language of exclusivity, specifying a
mandatory location for litigation,” making the provision a mandatory forum
selection clause. (Motion p. 18.) The Court agrees, because the clause states
that the Cayman Islands is the “exclusive jurisdiction” and “sole tribunal” for
any matter relating to Defendant’s representation. (Motion p. 9.) Plaintiffs do
not oppose this argument.
Plaintiffs have the burden of
showing, in response to Defendant’s motion to dismiss, that enforcement of the
clause would be unreasonable under the circumstances. Plaintiffs do not argue
that the forum selection clause does not apply to the Complaint they filed in
California. Nor do they contend the statute of limitations has expired. Plaintiffs
argue that enforcement would be unreasonable, because three Plaintiffs did not
sign the Retainer Agreement with the forum selection clause. (Opp. pp. 4-6.)
Plaintiffs claim that there was a lack of mutual consent between Defendant and
the three non-signatories as evidenced by the lack of three signatures. (Opp.
p. 6.) Plaintiffs also argue Defendant is attempting “to enforce the
non-executed agreement against” the non-signatories through subjective intent.
(Opp. p. 6.)
Here, plaintiffs Cecil Kyte (Kyte),
Samuel 1, Ltd., and Alexander Menzel (Menzel) are the only three parties who
did not sign the Retainer Agreement. (Alberga Decl., Ex. 1 at pp. 17, 18.)
Plaintiffs do not contest that Jeff Katofsky, Rex Alexander, Mark Alfano, Rand
Barton, Misty Hammer, and Raisha Park all signed the Retainer Agreement.
Plaintiffs assert that the forum selection clause should not be enforced
against any plaintiff due to the three missing signatures, but do not attempt
to explain why the missing signatures should affect the signed parties.
Therefore, the Court finds the forum selection clause applies to plaintiffs Jeff
Katofsky, Rex Alexander, Mark Alfano, Rand Barton, Misty Hammer, and Raisha
Park.
Regarding the non-signatories, the
Court may only enforce the Retainer Agreement and forum selection clause
against Kyte, Samuel 1, Ltd., and Menzel if they are closely related to the
contractual relationship. All three state that they never had contact with
Defendant, never gave it authority to represent them, never signed any
agreements with Defendant, never gave Defendant authority to accept service of
process, and never received a bill from Defendant. (Kyte Decl. ¶ 4; Alfano Decl. ¶ 4; Menzel Decl. ¶ 4.) All
claim that they did not give Jeff Katofsky the authority “to tell [Defendant]
to represent or enter an appearance in any lawsuit on their behalf.” (Kyte
Decl. ¶ 5; Alfano Decl. ¶ 5; Menzel
Decl. ¶ 5.) Kyte and Menzel claim that they were unaware of the lawsuit. (Kyte
Decl. ¶ 6; Menzel Decl. ¶ 6.) Mark Alfano, an officer of Samuel 1, Ltd., claims
that Samuel 1, Ltd. “never participated in in the lawsuit or communicated with”
Defendant. (Alfano Decl. ¶ 5.) Defendant does not contest these statements but
argues the remaining Plaintiffs’ Complaint should be dismissed on another
grounds. (Reply pp. 5-10.) The declarations and lack of opposition to these
declarations support the assertion that Kyte, Samuel 1, Ltd., and Menzel are not
closely related to the contractual relationship. For this reason, the Court
does not find that the forum selection clause applies to Kyte, Samuel 1, Ltd.,
and Menzel.
Specially Appearing Defendant
Travers Thorp Alberga Attorneys at Law’s Motion to Dismiss the Action on the
Ground of Inconvenient Forum as to plaintiffs Jeff Katofsky, Rex Alexander,
Mark Alfano, Rand Barton, Misty Hammer, and Raisha Park is GRANTED.
The Court hereby orders that Plaintiffs’
action as to plaintiffs Jeff Katofsky, Rex Alexander, Mark Alfano, Rand Barton,
Misty Hammer, and Raisha Park is DISMISSED on the grounds of inconvenient forum.
Motion to Quash Service of Summons for Lack of
Personal Jurisdiction
Timeliness
As discussed, the motion is timely,
because Defendant filed this instant motion on January 21, 2025, which was the
deadline for doing so.
Legal Standard
A defendant may serve and file a
notice of motion to quash service of summons on the grounds of lack of
jurisdiction of the court over them. (Code Civ. Proc. §418.10(a).) Code of
Civil Procedure section 418.10 provides the exclusive procedure for challenging
personal jurisdiction at the outset. (Roy v. Sup.Ct. (2005) 127
Cal.App.4th 337, 342.) The court may dismiss without prejudice the complaint in
whole, or as to that defendant, when dismissal is made pursuant to Section
418.10. (Code Civ. Proc., § 581, subd. (h).)
“A court of this state may exercise
jurisdiction on any basis not inconsistent with the Constitution of this state
or of the United States.” (Code Civ. Proc., § 410.10.) “The Due Process Clause
protects an individual’s liberty interest in not being subject to the binding
judgments of a forum with which he has established no meaningful ‘contacts,
ties, or relations.’” (Burger King Corp. v. Rudzewicz (1985) 471
U.S. 462, 471-472.) A state court may not exercise personal jurisdiction over a
party under circumstances that would offend “traditional notions of fair play
and substantial justice.” (Asahi Metal Industry Co., Ltd., v. Superior Court
of California, Solano County (1987) 480 U.S. 102, 113.)
When a defendant moves to quash
service of the summons and complaint, the plaintiff has “the burden of proving
the facts that did give the court jurisdiction, that is the facts requisite to
an effective service.” (Coulston v. Cooper (1966) 245 Cal.App.2d 866, 868.) The
plaintiff must establish the facts of jurisdiction by a preponderance of the
evidence. (Aquila, Inc. v. Sup. Ct. (2007) 148 Cal.App.4th 556, 568.) “When a
nonresident defendant challenges personal jurisdiction the burden shifts to the
plaintiff to demonstrate by a preponderance of the evidence that all necessary
jurisdictional criteria are met. [Citation.] This burden must be met by
competent evidence in affidavits and authenticated documentary evidence. An
unverified complaint may not be considered as an affidavit supplying necessary
facts.” (Jewish Defense Organization, Inc. v. Superior Court (1999) 72
Cal.App.4th 1045, 1054-55.)
“Personal jurisdiction may be
either general or specific.” (Vons Companies, Inc. v. Seabest Foods, Inc. (1996)
14 Cal.4th 434, 445.) “A defendant that has substantial, continuous, and
systematic contacts with the forum state is subject to general jurisdiction in
the state, meaning jurisdiction on any cause of action.” (HealthMarkets,
Inc. v. Superior Court (2009) 171 Cal.App.4th 1160, 1167.) “General
jurisdiction, as its name implies, extends to any and all claims brought
against a defendant. Those claims need not relate to the forum State or the
defendant’s activity there; they may concern events and conduct anywhere in the
world. But that breadth imposes a correlative limit: Only a select set of
affiliations with a forum will expose a defendant to such sweeping
jurisdiction. In what [the Supreme Court] ha[s] called the paradigm case, an
individual is subject to general jurisdiction in her place of domicile. And the
equivalent forums for a corporation are its place of incorporation and
principal place of business.” (Preciado v. Freightliner Custom Chassis Corp.¿(2023)
87 Cal.App.5th 964, 976 [internal citation omitted].)
A nonresident may be subject to
specific jurisdiction if a three-prong test is met. “First, the defendant must
have purposefully availed itself of the state’s benefits. Second, the
controversy must be related to or arise out of the defendant’s contacts with
the state. Third, considering the defendant’s contacts with the state and other
factors, California’s exercise of jurisdiction over the defendant must comport
with fair play and substantial justice.” (Gilmore Bank v. AsiaTrust New
Zealand Ltd. (2014) 223 Cal.App.4th 1558, 1568 [internal citations and
emphasis omitted].) “When a defendant moves to quash service of process on
jurisdictional grounds, the plaintiff has the initial burden of demonstrating
facts justifying the exercise of jurisdiction.¿Once facts showing minimum
contacts with the forum state are established, however, it becomes the
defendant’s burden to demonstrate that the exercise of jurisdiction would be
unreasonable.” (Vons Companies, Inc. v. Seabest Foods, Inc., supra,
14 Cal.4th at p. 449 [internal citations omitted].)
Analysis
The Court
finds it does not have personal jurisdiction over Defendant.
Defendant argues and the Court
agrees that the Court has no general jurisdiction over Defendant. Defendant has
offices in the Grand Cayman Islands, the British Virgin Islands, London, Hong
Kong, Australia, and New Zealand, and is not registered to do business in
California. (Alberga Decl. ¶¶ 2-3.) Defendant has never conducted business in
California. (Alberga Decl. ¶¶ 3-4.) Accordingly, the Court will only have
personal jurisdiction over Defendant if there is specific jurisdiction.
The
remaining Plaintiffs argue that Defendant purposefully established minimum
contacts with California. (Opp. pp. 8-12.) Plaintiffs do not directly argue
that Defendant meets the three-prong test to establish specific jurisdiction,
but the Court will attempt to examine Plaintiffs’ arguments through this lens. Plaintiffs
allude to Defendant purposefully availing itself to California, because
Defendant “has a worldwide presence,” “purposefully obtained clients in …
California” and communicated with several of the signatory Plaintiffs that reside
in California. (Opp. pp. 3-4, 9-11.) Plaintiffs believe this communication led
to “Defendant developing and utilizing established channels to deliver [its]
legal product … within … California.” (Opp. 9.) Plaintiffs indicate that the controversy
giving rise to the lawsuit is related to or arises out of the Defendant’s
contacts with California, because the communications, including phone call,
emails, physical mail, and other “digital means[, that] resulted in the harm
complained” occurred in California when Defendant contact the Californian
signatories. (Opp. 9.) As for the third
prong of comporting with fair play and substantial justice, Plaintiffs state
that this prong would be met if the first two prongs are met. (Opp. 10.)
Plaintiffs do not explain further.
Defendant
argues that the first prong of the specific jurisdiction test is not met.
(Motion pp. 13-17.) Defendant relies on Jacqueline B. v. Rawls Law Group,
P.C. (2021) 68 Cal.App.5th 243 (Jacqueline B.). Turning to the first
prong, Jacqueline B. states that an out-of-state defendant’s website
purposefully avails itself when (1) the “website targets California residents,
… and if it does not, (2) … the website falls on a ‘sliding scale’ of
interactivity with internet users, with websites allowing the out-of-state
defendant to conduct business with California residents at one end of the scale
and websites that passively make information available at the other end.” (Id.
at p. 289.) The Court of Appeal found
that the defendant’s website did not target California residents even through
it called itself “nationwide,” and was in the middle of the sliding scale
because it allowed the plaintiff to “exchange information with the firm’s
website” and plaintiff reached out to defendant directly for representation. (Id.
at p. 290.)
Defendant
contends and the Court agrees that Defendant’s website did not purposefully
avail itself of access to Californian residents. Similar to Jacqueline B.,
Defendant’s website does not discuss California. (Alberga Decl. Exh. 2.)
Although Plaintiffs allege that the website calls its presence “worldwide,”
this does not indicate that Defendant targeted California. Defendant’s alleged
reference to “worldwide” likely indicates its presence in the Grand Cayman
Islands, the British Virgin Islands, London, Hong Kong, Australia, and New
Zealand. In addition, nothing in the facts indicates that the website allowed
Plaintiffs to exchange information through the firm’s website. Moreover,
Defendant alleges that non-party HIF and Plaintiffs contacted them for
representation in the Action. (Alberga Decl. ¶ 7.)
Defendant
then asserts that the first prong is not met as it “did not purposefully derive
any benefit from California by virtue of its Retainer Agreement with the three
alleged California-resident Plaintiffs.” (Motion p. 14.) Defendant relies upon Goehring
v. Superior Court (Bernier) (1998) 62 Cal.App.4th 894 to assert its
argument. The Court of Appeal in that case stated, “a court must evaluate the
contract terms and the surrounding circumstances to determine whether the
defendant purposefully established minimum contacts within the forum[, and]
relevant factors include prior negotiations, contemplated future consequences,
the parties' course of dealings, and the contract's choice-of-law provision.” (Id.
at p. 907.)
The Court agrees Defendant did not
purposefully derive any benefit from California through its Retainer Agreement.
The Retainer Agreement was prepared in the Grand Cayman Islands by Grand Cayman
Island attorneys for the Action occurring in the Grand Cayman Islands and
contained a choice-of-law provision for the Grand Cayman Islands. (Motion p.
15; Alberga Decl. ¶ 7, Exh. 1.) Nothing about the Retainer Agreement suggests
that Defendant purposefully derived any benefit from California.
Defendant finally asserts the first
prong is not met as it “did not purposefully avail itself of California’s
benefits by virtue of its legal representation of Plaintiffs.” (Motion p. 15.)
Again, Defendant relies upon Jacqueline B. There, the Court of Appeal
looked to the totality of several factors including: “(1) whether the
malpractice plaintiff/former client lived in the forum state at the time the
firm or lawyers were retained, as well as when the allegedly defective legal
services were provided …; (2) whether the firm or lawyers were physically
located in the forum state, licensed to practice law there, used those licenses
to perform the legal services at issue, or were cocounsel with lawyers located
in the state …; (3) whether the retainer agreement was executed in the forum
state or whether the obligation to pay for legal services under the agreement
was enforceable solely through the forum state's legal process …; (4) whether
the legal services alleged to be defectively provided were provided in the forum
state and, if the services involved litigation, whether the firm or its lawyers
acquired evidence in the forum state, filed suit in the forum state, or
otherwise invoked the forum state's legal process … and (5) whether the legal
services provided or the plaintiff's malpractice lawsuit relied upon
application or misapplication — of the laws of the forum state.” (Jacqueline
B., supra, 68 Cal.App.5th at pp. 255-256.)
The Court
agrees Defendant did not purposefully avail itself of any benefits from
California via its legal representation. Although some of the Plaintiffs allege
to live in California, six do not and none of the non-signatory Plaintiffs
claim to be California residents. Plaintiffs state Cecil Lyte is a resident of Arizona and Nevada, Samuel 1, LTC is a Cayman
Islands entity, and Alexander
Menzel is a resident of Brazil. (Alberga Decl. ¶ 7.) In addition, as
discussed, the Retainer Agreement was prepared in the Grand Cayman Islands by
Grand Cayman Island attorneys for the Action occurring in the Grand Cayman
Islands and contained a choice-of-law provision for the Grand Cayman Islands.
(Motion p. 15; Alberga Decl. ¶ 7, Exh. 1.) Moreover, the communications made to
the alleged Californian Plaintiffs do not show that the legal services were
provided in California. Rather the communications were about legal services
provided in the Grand Cayman Islands. Plaintiffs’ argument does not convince
the Court that the legal representation allowed Defendant to purposefully
derive any benefit from California. Because the first prong of the specific
jurisdiction test is not met, the Court does not have specific jurisdiction
over Defendant.
The Court does not have general or
specific jurisdiction over Defendant. Thus, the Court GRANTS Specially
Appearing Defendant Travers Thorp Alberga Attorneys at Law’s Motion to Quash
Service of Summons for Lack of Personal Jurisdiction.
The Court hereby orders that the
service of summons is quashed for lack of jurisdiction over Defendant as to all
Plaintiffs and Plaintiffs’ action is therefore DISMISSED.
Motion for Continuance to Conduct Discovery
Legal
Standard
“A trial court
has the discretion to continue the hearing on a motion to quash service of
summons for lack of personal jurisdiction to allow the plaintiff to conduct
discovery on jurisdictional issues.” (HealthMarkets,
Inc. v. Superior Court (2009) 171 Cal.App.4th 1160, 1173; Beckman v. Thompson (1992) 4 Cal.App.4th
481, 487.) A “plaintiff is generally entitled to conduct discovery with regard
to a jurisdictional issue before a court rules on a motion to quash[,]” but it
lies within the sound discretion of the judge. (Goehring v. Superior Court (1998) 62 Cal.App.4th 894, 911.)
“In order to
prevail on a motion for a continuance for jurisdictional discovery, the
plaintiff should demonstrate that discovery is likely to lead to the production
of evidence of facts establishing jurisdiction.” (In re Automobile Antitrust Cases I & II (2005) 135 Cal.App.4th
100, 127.)
Analysis
Plaintiffs argue that they “are entitled
to conduct such discovery to meet their initial burden of establishing that
Defendant's contacts are sufficient to establish [specific] jurisdiction.”
(Opp. p. 12.) While this may be true in some cases, Plaintiffs here have not
demonstrates that discovery is likely to lead to the production of evidence of
facts establishing specific jurisdiction as required. For this reason, The
Court DENIES Plaintiffs’ Motion for Continuance to Conduct Discovery to
Determine the Nature and Extent of Defendant’s Contacts in the State of
California.
Specially Appearing Defendant
Travers Thorp Alberga Attorneys at Law to give notice, unless waived.
IT IS SO ORDERED.
Dated: February 14,
2025 ___________________________________
Theresa
M. Traber
Judge of the
Superior Court
Any party may submit on the
tentative ruling by contacting the courtroom via email at Smcdept47@lacourt.org by no later
than 4:00 p.m. the day before the hearing. All interested parties
must be copied on the email. It should be noted that if you submit
on a tentative ruling the court will still conduct a hearing if any party
appears. By submitting on the tentative you have, in essence, waived your right
to be present at the hearing, and you should be aware that the court may not
adopt the tentative, and may issue an order which modifies the tentative ruling
in whole or in part.