Helmer v. Doletskaya

• Citation: 290 F.Supp.2d 61
• Decision Date: 27 October 2003
• Docket Number: No. CIV.A.02-00460(HHK).,CIV.A.02-00460(HHK).
• Parties: John HELMER, Plaintiff, v. Elena DOLETSKAYA, Defendant.
• Court: United States Courts of Appeals. United States Court of Appeals (District of Columbia)

290 F.Supp.2d 61

John HELMER, Plaintiff, v. Elena DOLETSKAYA, Defendant.

No. CIV.A.02-00460(HHK).

United States District Court, District of Columbia.

October 27, 2003.

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

Bruce Aitken, Aitken, Irvin, Berlin & Vrooman LLP, Washington, DC, Bruce S. Marks, John M. Mason, Marks & Sokolov, LLC, Philadelphia, PA, Nicholas H. Cobbs, Washington, DC, for Plaintiff.

Whitney Adams, Vienna, VA, William M. Sullivan, Jr., Coudert Brothers, LLP, Washington, DC, for Defendant.

MEMORANDUM OPINION

KENNEDY, District Judge.

Plaintiff, John Helmer ("Helmer"), brings this action for fraud and breach of contract against defendant, Elena Doletskaya ("Doletskaya"). Before this court is Doletskaya's motion to dismiss [# 5]. Upon consideration of Doletskaya's motion, the opposition thereto, and the record of this case, the court concludes that the motion must be granted.

I. BACKGROUND INFORMATION

Helmer is a citizen of the United States and owns a home in the District of Columbia (the "District"). Compl. ¶ 2. From 1990 to the present, however, he has worked as an independent business journalist in Moscow, Russia, where he lives. Id. ¶ 4. Doletskaya is a citizen of the Russian Federation. Id. ¶ 3

In 1993, Helmer and Doletskaya began a personal relationship and, in July of that year, Doletskaya visited Helmer in Washington, D.C. Id. ¶ 6. During this visit, Helmer asserts that he and Doletskaya entered into two contracts. First, they discussed the possibility of Helmer purchasing an apartment in Moscow, negotiations for which had already begun in Moscow. Id. ¶ 7. Doletskaya allegedly represented that she would assist Helmer in the transaction because she was able to read and understand Russian while Helmer could not. Id. ¶ 8. Helmer alleges that Doletskaya represented that she would arrange for the apartment to be placed in his name upon his payment of the apartment's sale price. Id. ¶ 9. On November 19, 1993, Doletskaya assisted Helmer with the purchase of an apartment in Moscow, Russia. Id. ¶ 12. Helmer allegedly paid for the apartment, and the parties both moved into the apartment in January 1994. Id. ¶¶ 13-15. In 1996, Helmer and Doletskaya's "personal relationship" ended, but they continued to live in the apartment together. Id. ¶ 21. In 2000, Helmer learned that the Moscow apartment was titled in Doletskaya's name. Id. ¶ 33. Doletskaya has refused to transfer the apartment to Helmer. Id. ¶ 34.

The second contract Helmer and Doletskaya allegedly entered into during Doletskaya's visit called for Helmer to support Doletskaya while she was attempting to establish her career. Id. ¶ 10. After her career was established, Doletskaya would repay Helmer. Id. ¶ 11. Helmer supported Doletskaya financially from 1993 to 2000 and allowed her to use his American Express and Mastercard credit cards. Id. ¶¶ 17-18. During this time, Doletskaya incurred over $57,000 in personal expenses on Helmer's American Express and Mastercard credit cards, Id. ¶ 20, and Helmer agreed to finance Doletskaya's move to a cottage outside of Moscow by loaning her over $11,000 to pay for the cottage and other expenses. Id. ¶ 22. In 1998, Doletskaya was appointed the editor-in-chief of "Vogue Russia," and allegedly became financially self-sufficient as of 2001. Id. ¶ 23. Contrary to her alleged promises, however, Doletskaya has refused to repay the $68,000 in personal expenses that Helmer allegedly provided her during their relationship. Id. ¶ 35.

Helmer further alleges that during the parties' personal relationship, Doletskaya concealed numerous aspects of her past, and that if Helmer had known of Doletskaya's personal history, he would not have entered into the two contracts. Id. ¶¶ 27-31, 37. Helmer learned of Doletskaya's personal history in 2000 after their relationship terminated, and after Doletskaya refused to transfer the apartment and repay the loans. Id. ¶ 36. This suit followed.

II. ANALYSIS

A. Standard for Motion to Dismiss

Doletskaya seeks a dismissal of this case on several grounds only one of which merit significant discussion. Pursuant to Federal Rule of Civil Procedure 12(b)(2), Doletskaya moves to dismiss for lack of personal jurisdiction.¹

In general, the jurisdictional reach of a federal court is coextensive with a state court of general jurisdiction in the state where the federal court is located. Crane v. Carr, 814 F.2d 758, 762 (D.C.Cir. 1987). To determine whether this court is able to exercise personal jurisdiction over a defendant, the court must engage in a two-part inquiry. First, the court must examine whether jurisdiction is permitted under the District of Columbia's long-arm statute. GTE New Media Servs. Inc. v. BellSouth Corp., 199 F.3d 1343, 1347 (D.C.Cir.2000). Second, if the long arm statute provides a basis for exercising jurisdiction, the court must then determine whether exercising jurisdiction over the defendant would offend the Constitution's guarantee of due process. Id. Constitutional due process requirements are satisfied when a defendant has "certain minimum contacts with [the forum] such that the maintenance of the suit does not offend `traditional notions of fair play and substantial justice.'" Int'l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945) (quoting Milliken v. Meyer, 311 U.S. 457, 463, 61 S.Ct. 339, 85 L.Ed. 278 (1940)). A defendant has minimum contacts with a forum when it has "purposefully directed [its] activities at residents of the forum, and the litigation results from alleged injuries that arise out of or relate to those activities." Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472-73, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985) (internal quotation marks and citations omitted); United States v. Philip Morris Inc., 116 F.Supp.2d 116, 129 (D.D.C.2000).

The plaintiff bears the burden of proof of establishing personal jurisdiction. Jacobsen v. Oliver, 201 F.Supp.2d 93, 104 (D.D.C.2002); Dooley v. United Techs. Corp., 786 F.Supp. 65, 70 (D.D.C.1992); Lott v. Burning Tree Club, Inc., 516 F.Supp. 913, 918 (D.D.C.1980). The plaintiff must make a prima facie showing of personal jurisdiction by alleging specific facts that demonstrate purposeful activity by the defendant in the District of Columbia invoking the benefits and protections of its laws. First Chicago Int'l v. United Exch. Co., 836 F.2d 1375, 1378-79 (D.C.Cir.1988); Jacobsen, 201 F.Supp.2d at 104; Novak-Canzeri v. Saud, 864 F.Supp. 203, 205 (D.D.C.1994). When personal jurisdiction is challenged, the plaintiff "cannot rest on bare allegations or conclusory statements and must allege specific facts connecting each defendant with the forum." GTE New Media Servs., Inc. v. Ameritech Corp., 21 F.Supp.2d 27, 36 (D.D.C.1998).

The District of Columbia's long-arm statute provides, in pertinent part:

(a) A District of Columbia court may exercise personal jurisdiction over a person, who acts directly or by an agent, as to a claim for relief arising from the person's—

(1) transacting any business in the District of Columbia;

. . . . .

(3) causing tortious injury in the District of Columbia by an act or omission in the District of Columbia;

(4) causing tortious injury in the District of Columbia by an act or omission outside the District of Columbia if he regularly does or solicits business, engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed, or services rendered, in the District of Columbia ....

D.C.Code § 13-423 (2001). When jurisdiction over a person is based solely on § 13-423, "only a claim for relief arising from acts enumerated in this section may be asserted against him." D.C.Code § 13-423(b). Thus, each claim must be based specifically on acts set forth in § 13-423(a).

1. Breach of Contract

Helmer does not specifically indicate which provision of the long-arm statute he relies upon to establish personal jurisdiction as to his breach of contract claim. The only provision that could potentially apply, however, is § 13-423(a)(1).

To establish jurisdiction under the "transacting business" provision of the long-arm statute, Helmer must satisfy a four-part test by establishing that:

(i) the Doletskaya transacted business in the District;

(ii) the claim arose from the business in the District;

(iii) the Doletskaya had minimum contacts with the jurisdiction; and

(iv) the [c]ourt's exercise of jurisdiction does not offend traditional notions of fair play and substantial justice.

Jacobsen, 201 F.Supp.2d at 104 (internal quotation marks and citation omitted). It is clearly established that the "transacting business" provision of the District of Columbia long-arm statute authorizes the exercise of personal jurisdiction to the full extent permitted by the Due Process Clause. United States v. Ferrara, 54 F.3d 825, 828 (D.C.Cir.1995) (stating that "the statutory and constitutional jurisdictional questions, which are usually distinct, merge into a single inquiry here"); Freiman v. Lazur, 925 F.Supp. 14, 24 (D.D.C. 1996).

The "transacting any business" provision of the District of Columbia long-arm statute permits the exercise of personal jurisdiction when a non-resident defendant's contractual activities cause repercussions in the District. Schwartz v. CDI Japan, Ltd., 938 F.Supp. 1, 5 (D.D.C. 1996). It is sufficient if a suit is based on a contract that has a "substantial connection" with the District. McGee v. Int'l Life Ins. Co., 355 U.S. 220, 222, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957); Mouzavires v. Baxter, 434 A.2d 988, 993 (D.C.1981). Under certain circumstances, a single act may be adequate to bring a defendant within the reach of the statute. Reiman v. First Union Real Estate Equity & Mortgage Invs., 614 F.Supp. 255, 257 (D.D.C.1985); see Bueno v. La Compania Peruana De Radiodifusion, S.A., 375 A.2d 6, 9 (D.C. 1977). The court must look at the "quality and nature of contacts, and these contacts must illustrate a...