Anzures v. Flagship Restaurant Group

Plaintiff-appellant Joe Anzures was a Colorado resident, and defendants Nick Hogan and Flagship Restaurant Group were Nebraska residents. Anzures and non-party Jared Mitilier (a California resident) contacted defendant Hogan in Omaha, Nebraska, about starting a business venture (all three had been high-school classmates in Nebraska). The proposed business was to broker the sale of pre-paid financial products akin to pre-loaded debit cards. Hogan agreed, and Industria Payment Solutions, LLC was formed as a Nevada LLC with both its registered office and registered agent in Nevada. Anzures was Industria’s only employee. A few months after Industria’s formation, Hogan allegedly attempted to squeeze Anzures out so Flagship could increase its ownership interest. To that purported end, Hogan allegedly made a series of false accusations to Mitilier that Anzures was secretly assisting one of Industria’s competitors, and he tried to persuade Mitilier to vote in favor of removing Anzures from Industria and instituting litigation against Anzures. Hogan also allegedly threatened that Flagship would not provide funding to Industria unless Anzures agreed to take significantly less compensation. Anzures agreed to take less compensation, but when Flagship did not follow through on its promise to make a contribution to Industria, Anzures filed suit in Colorado state court. Hogan and Flagship removed the case to federal court based on diversity jurisdiction. Anzures amended his complaint to add a breach of fiduciary duty claim against Flagship and Hogan, and three other claims against Flagship (fraud, negligent misrepresentation, and breach of contract). Defendants then moved to dismiss the amended complaint due to lack of personal jurisdiction. After allowing limited discovery (including the deposition of Hogan) on the jurisdictional issue, a magistrate judge recommended granting the motion to dismiss. Over Anzures’s objections, the district court agreed. This appeal followed. Finding no reversible error, the Tenth Circuit affirmed. View "Anzures v. Flagship Restaurant Group" on Justia Law