Beydoun v. Wataniya Rests. Holding

• Citation: 768 F.3d 499
• Decision Date: 19 September 2014
• Docket Number: No. 13–2437.,13–2437.
• Parties: Nasser M. BEYDOUN and Maysa Beydoun, individually and as parents and general guardians of AB, JB, and MJ.B, minor children, Plaintiffs–Appellants, v. WATANIYA RESTAURANTS HOLDING, Q.S.C.; Qatar National Hotels Company; Global Investment House; Hamad Bin Abdullah Al Attiyah; Abdul Azziz Bin Hamad Al Attiya; Abdul Azziz Bin Mohamed Al Attiya; Khalid Bin Mohammed Al Attiyah, Defendants–Appellees.
• Court: U.S. Court of Appeals — Sixth Circuit

768 F.3d 499

Nasser M. BEYDOUN and Maysa Beydoun, individually and as parents and general guardians of AB, JB, and MJ.B, minor children, Plaintiffs–Appellants,
v.
WATANIYA RESTAURANTS HOLDING, Q.S.C.; Qatar National Hotels Company; Global Investment House; Hamad Bin Abdullah Al Attiyah; Abdul Azziz Bin Hamad Al Attiya; Abdul Azziz Bin Mohamed Al Attiya; Khalid Bin Mohammed Al Attiyah, Defendants–Appellees.

No. 13–2437.

United States Court of Appeals, Sixth Circuit.

Argued: Aug. 6, 2014
Decided and Filed: Sept. 19, 2014

Affirmed.

[768 F.3d 502]

ARGUED: James P. Allen, Sr., Allen Brothers Attorneys and Counselors, PLLC, Detroit, Michigan, for Appellants. Jonathan D. King, DLA Piper LLP, Chicago, Illinois, for Appellees. ON BRIEF:

Edward M. Turfe, Turfe Law, PLLC, Detroit, Michigan, for Appellants. Jonathan D. King, Joseph A. Roselius, Stephanie A. Zosak, DLA Piper LLP, Chicago, Illinois, for Appellees.

Before: COOK and GRIFFIN, Circuit Judges; RICE, District Judge. ^* OPINION
GRIFFIN, Circuit Judge.

Plaintiffs sued plaintiff Nasser Beydoun's former employer, Qatari-based Wataniya Restaurants Holding—along with Wataniya shareholders and members of the Wataniya board of directors—in federal district court in Michigan, alleging various causes of action based on events that took place after Beydoun's employment as Wataniya's CEO ended contentiously. The district court dismissed plaintiffs' complaint for lack of personal jurisdiction. Because plaintiffs have failed to establish that their alleged causes of action proximately resulted from Wataniya's contacts with Michigan, we affirm the judgment of the district court.

I.

None of the defendants in this case are citizens of the United States, nor of Michigan. Wataniya is a Qatari corporation that, among other things, operates restaurant franchises in the Middle East and North Africa. Its principal place of business is in Qatar, and it has never operated any franchises in the United States, nor does it have any offices, representatives, or employees in Michigan. Qatar National Hotels Company is a Qatari company based in Qatar with no ties to Michigan. Global Investment House is based in Kuwait

[768 F.3d 503]

with no ties to Michigan. The non-Wataniya defendants named in Beydoun's complaint who are natural persons were shareholders or representatives of shareholders of Wataniya, and all are citizens of Qatar.

Beydoun is a citizen of the United States and of Michigan. He is a businessman in Detroit. In 2006, Beydoun was approached by Donald Jordan, a representative of Wataniya, about Beydoun moving to Qatar and becoming Wataniya's CEO. Jordan told Beydoun that Wataniya's goal in recruiting him was to “bring Western culture and restaurant franchises to the Middle East.” In January 2007, Beydoun and Jordan met at a Starbucks in Northville, Michigan. During that meeting, Beydoun and Jordan

spoke at length regarding the terms and conditions of [Beydoun's] employment with Wataniya and [Beydoun's] moving to Qatar, as well as “the vision” and desires of the ... Board members, directors and shareholders of Wataniya. At the conclusion of [the] meeting [Jordan and Beydoun] had agreed in principle that [Beydoun] would accept the position as President and Chief Operating Officer of Wataniya. [Beydoun] advised Jordan that [he] needed to discuss everything with [his] wife ... and think things over.

Following the Starbucks meeting, Jordan and Beydoun had “[m]ultiple discussions and emails” about the position, occurring after Jordan returned to Qatar (Beydoun remained in Michigan).¹ Beydoun “ultimately accepted the position” and moved to Qatar in mid-March 2007; his family followed in August 2008.

After moving to Qatar, Beydoun made more than ten business trips to Michigan on Wataniya's behalf. During this same time, Wataniya purchased restaurant equipment from several Michigan-based companies.

Wataniya lost money while Beydoun was CEO; consequently, the relationship between the two soured. In late October 2009, Beydoun was summoned to meet with Hamad bin Abdullah al Attiyah (Hamad). Hamad was a shareholder in Wataniya and, at the time, was an adviser to Wataniya's board. At the meeting, Hamad accused Beydoun of mismanaging Wataniya and accused Beydoun of stealing “significant sums of money from the company.” Hamad told Beydoun that he would have to personally reimburse the company for $13.7 million for losses the company had sustained. Beydoun responded that the company had not yet paid him his salary nor reimbursed him for his living expenses. Following this meeting, Beydoun learned that Wataniya had revoked his exit visa, rendering Beydoun unable to leave Qatar.²

[768 F.3d 504]

On December 12, 2009, Beydoun filed suit in the Qatari courts seeking back pay and benefits. Four days later, Wataniya filed suit against Beydoun in Qatar, seeking to recover $13.7 million. Beydoun claims that many of the allegations in Wataniya's lawsuit were false. Additionally, Wataniya lodged a criminal complaint against Beydoun. Ultimately, Wataniya's lawsuit was dismissed, and Beydoun's lawsuit was successful—Beydoun was awarded $170,000 by the Qatari courts. The criminal complaint against Beydoun was dismissed as well. However, Beydoun's exit visa was not reinstated while these matters were litigated and resolved. Accordingly, Beydoun was not legally permitted to return home to Michigan until February 7, 2011.

On February 2, 2012, plaintiffs filed the instant lawsuit. The complaint alleged thirteen counts, including false imprisonment, abuse of process, and malicious prosecution. The...