Benjamin Burgess v. Religious Technology Center, Inc. , 600 F. App'x 657 ( 2015 )


Menu:
  •               Case: 14-11214     Date Filed: 01/26/2015    Page: 1 of 19
    [DO NOT PUBLISH]
    IN THE UNITED STATES COURT OF APPEALS
    FOR THE ELEVENTH CIRCUIT
    ________________________
    No. 14-11214
    Non-Argument Calendar
    ________________________
    D.C. Docket No. 1:13-cv-02217-SCJ
    BENJAMIN BURGESS,
    RHONDA BURGESS,
    HEIDI HOWARD,
    JOYCE MARTIN,
    BETH KARAMPELAS,
    TERRI DACY,
    MICHAEL DACY,
    individually and on behalf of all others similarly situated,
    Plaintiffs-Appellants,
    versus
    RELIGIOUS TECHNOLOGY CENTER, INC.,
    ASSOCIATION FOR BETTER LIVING AND EDUCATION
    INTERNATIONAL,
    NARCONON INTERNATIONAL,
    NARCONON OF GEORGIA, INC.,
    Defendants-Appellees.
    ________________________
    Appeal from the United States District Court
    for the Northern District of Georgia
    ________________________
    (January 26, 2015)
    Case: 14-11214     Date Filed: 01/26/2015   Page: 2 of 19
    Before WILSON, ROSENBAUM and KRAVITCH, Circuit Judges.
    PER CURIAM:
    Benjamin and Rhonda Burgess, Heidi Howard, Joyce Martin, Beth
    Karampelas, and Terri and Michael Dacy (collectively “the plaintiffs”) appeal from
    the district court’s dismissal of the class action suit against Religious Technology
    Center (RTC), Association for Better Living and Education (ABLE), Narconon
    International (NI), and Narconon of Georgia (NNGA) (collectively “the
    defendants”). For the reasons that follow, we affirm.
    I.
    The plaintiffs filed a class-action complaint in Gwinnett County state court
    on behalf of themselves and others similarly situated who had paid money to
    obtain drug and alcohol rehabilitation services at NNGA. The defendants removed
    the case to federal court under the Class Action Fairness Act, 
    28 U.S.C. § 1332
    (d).
    In the complaint, the plaintiffs alleged that the defendants used misrepresentations
    to induce people to enroll in their drug and alcohol rehabilitation program.
    According to the plaintiffs, the defendants overstated their success rate; identified
    the program as a “cure” for addiction; hid the defendants’ connection to
    Scientology; misrepresented the staff’s credentials; operated a unlicensed
    residential facility; failed to monitor the housing conditions; paid commissions for
    referrals to their program; and failed to comply with the licensing requirements.
    2
    Case: 14-11214      Date Filed: 01/26/2015   Page: 3 of 19
    The complaint listed ten claims against the defendants: (1) fraudulent
    misrepresentation; (2) breach of contract; (3) unjust enrichment; (4) detrimental
    reliance; (5) negligence per se; and (6) civil RICO claims of (a) theft by deception;
    (b) mail and wire fraud; (c) false statements to a government agency; (d) credit
    card fraud; and (e) identity theft.
    ABLE, NI, and NNGA moved to dismiss for failure to state a claim under
    Fed. R. Civ. P. (Rule) 12(b)(6) and failure to plead fraud with specificity under
    Rule 9(b). RTC moved to dismiss for lack of personal jurisdiction under Rule
    12(b)(2). The district court granted the motions. This is the plaintiffs’ appeal.
    II.
    The plaintiffs first argue that the district court erred by dismissing RTC for
    lack of personal jurisdiction because the court misapplied Georgia’s Long Arm
    statute and failed to properly analyze whether RTC could be subject to the court’s
    jurisdiction under agency principles. Alternatively, the plaintiffs contend that the
    court should have granted discovery on the jurisdictional issue to establish RTC’s
    minimum contacts with Georgia.
    We review de novo whether the district court had personal jurisdiction over
    a nonresident defendant, accepting as true the allegations in the complaint. Louis
    Vuiton Malletier, S.A. v. Mosseri, 
    736 F.3d 1339
    , 1350 (11th Cir. 2013). If the
    3
    Case: 14-11214     Date Filed: 01/26/2015     Page: 4 of 19
    district court makes any findings of fact in reaching its personal jurisdiction
    conclusion, we review those findings for clear error. 
    Id.
    A plaintiff seeking to establish personal jurisdiction over a nonresident
    defendant “bears the initial burden of alleging in the complaint sufficient facts to
    make out a prima facie case of jurisdiction.” United Techs. Corp. v. Mazer, 
    556 F.3d 1260
    , 1274 (11th Cir. 2009). When a defendant challenges personal
    jurisdiction “by submitting affidavit evidence in support of its position, the burden
    traditionally shifts back to the plaintiff to produce evidence supporting
    jurisdiction.” Madara v. Hall, 
    916 F.2d 1510
    , 1514 (11th Cir. 1990) (internal
    quotation marks omitted).
    To determine whether the district court had personal jurisdiction over RTC,
    we consider two issues: (1) whether personal jurisdiction exists under the Georgia
    Long-Arm Statute, and (2) if so, whether the exercise of the court’s jurisdiction
    would violate the Fourteenth Amendment’s Due Process Clause. Louis Vuitton
    Malletier, 736 F.3d at 1350. “When a federal court uses a state long-arm statute,
    because the extent of the statute is governed by state law, the federal court is
    required to construe it as would the state’s supreme court.” Lockard v. Equifax,
    Inc., 
    163 F.3d 1259
    , 1265 (11th Cir. 1998). Therefore, we will interpret and apply
    Georgia’s long-arm statute in the same way as would the Georgia Supreme Court.
    Where the Georgia Supreme Court has not ruled on an issue of state law, we “are
    4
    Case: 14-11214     Date Filed: 01/26/2015    Page: 5 of 19
    bound by decisions of a state’s intermediate appellate courts unless there is
    persuasive evidence that the highest state court would rule otherwise.” Pendergast
    v. Sprint Nextel Corp., 
    592 F.3d 1119
    , 1133 (11th Cir. 2010) (internal citations and
    quotation marks omitted).
    Georgia’s Long-Arm Statute provides for personal jurisdiction over a
    nonresident defendant if, relevant to this appeal,
    in person or through an agent, he or she: (1) Transacts any business
    within this state; (2) Commits a tortious act or omission within this
    state . . . ; [or] (3) Commits a tortious injury in this state caused by an
    act or omission outside this state if the tort-feasor regularly does or
    solicits business, or engages in any other persistent course of conduct,
    or derives substantial revenue from goods used or consumed or
    services rendered in this state . . . .
    O.C.G.A. § 9-10-91(1)-(3) (2011).
    The plaintiffs allege that personal jurisdiction exists over RTC under all
    three prongs. But to satisfy each prong, the plaintiffs rely on an agency
    relationship between RTC and ABLE, NI, and NNGA. Attached to its motion to
    dismiss, RTC submitted an affidavit of RTC President Warren McShane disputing
    any such relationship. According to McShane’s declaration, RTC holds the
    licenses to religious trademarks associated with Scientology, but secular
    trademarks, such as Narconon, belong to ABLE. Moreover, McShane stated that
    RTC is not the parent company of ABLE, has no license or contract with ABLE,
    and has not received any money from ABLE, NI, or NNGA. In response, the
    5
    Case: 14-11214    Date Filed: 01/26/2015    Page: 6 of 19
    plaintiffs have submitted several affidavits trying to link RTC to ABLE, as well as
    numerous documents about the various Scientology groups. They contend that the
    RTC documents reference and discuss ABLE’s programs, such as NI, and thus
    show the agency relationship.
    We agree with the district court that none of the plaintiffs’ evidence
    establishes an agency relationship between RTC and ABLE, NI, and NNGA.
    Under Georgia law, an agency relationship can arise in three distinct ways:
    expressly, by implication, or through subsequent ratification by the principal of the
    agent’s conduct. O.C.G.A. § 10–6–1; Beckworth v. Beckworth, 
    336 S.E.2d 782
    ,
    785 (Ga. 1985). Express agency arises when the principal expressly grants the
    agent the authority to act on its behalf. Absent express authority, the court may
    look to whether agency is implied by the circumstances. NAACP v. Overstreet,
    
    142 S.E.2d 816
    , 826 (Ga. 1965), overruled on other grounds by NAACP v.
    Claiborne Hardware Co., 
    458 U.S. 886
     (1982).
    There can be little dispute that there is no express agency relationship here.
    McShane’s affidavit specifically rejects any such relationship, and the plaintiffs
    have offered nothing to show an express agency relationship. Nor is there any
    implied agency relationship. Nothing in plaintiffs’ evidence showed any action by
    RTC with respect to the management of ABLE, NI, or NNGA centers. And there
    is no evidence showing that RTC ratified any conduct by NI or NNGA.
    6
    Case: 14-11214      Date Filed: 01/26/2015     Page: 7 of 19
    Finally, under Georgia law, there is no agency relationship between an
    organization and its parent company simply because the parent may exercise some
    level of control over its subsidiary. See, e.g., Schlotzky’s, Inc. v. Hyde, 
    538 S.E.2d 561
    , 561-63 (Ga. Ct. App. 2000) (explaining that franchisee was not an agent and
    franchisor was not liable for acts of franchisee in absence of agreement to be liable
    even though franchisor may set detailed and strict standards for its product).
    Therefore, in the absence of an agency relationship between RTC and ABLE, NI,
    and NNGA, the district court properly concluded that the Georgia Long-Arm
    Statute did not confer on the court personal jurisdiction over RTC. 1
    Moreover, the district court did not abuse its discretion by denying discovery
    on the jurisdictional issue. White v. Coca–Cola Co., 
    542 F.3d 848
    , 853 (11th Cir.
    2008) (reviewing discovery request for abuse of discretion). Generally, “the
    plaintiff should be given the opportunity to discover facts that would support his
    allegations of jurisdiction.” Majd–Pour v. Georgiana Cmty. Hosp., Inc., 
    724 F.2d 901
    , 903 (11th Cir. 1984). But a district court does not abuse its discretion in
    dismissing the plaintiff’s action for lack of personal jurisdiction, even before
    jurisdictional discovery occurs, when the plaintiff has not diligently pursued such
    discovery despite the opportunity to do so. See United Techs. Corp., 
    556 F.3d at 1280-81
     (affirming the district court’s dismissal of plaintiff’s claims for lack of
    1
    Because we reach this conclusion, we need not address whether RTC had sufficient minimum
    contacts to satisfy due process.
    7
    Case: 14-11214     Date Filed: 01/26/2015   Page: 8 of 19
    personal jurisdiction before the plaintiff conducted jurisdictional discovery). Here,
    the plaintiffs never served any discovery to RTC, never filed a motion for leave to
    conduct discovery, and did not even include a proposal for discovery in the Joint
    Preliminary Report and Discovery Plan. Under these facts, we cannot say that the
    plaintiffs acted with due diligence to pursue discovery, and further discovery on
    the jurisdictional issue was not warranted. Accordingly, we affirm the district
    court’s dismissal of RTC.
    III.
    The plaintiffs next argue that the district court erred by dismissing their
    claims against ABLE, NI, and NNGA.
    “We review de novo the district court’s grant of a motion to dismiss under
    Rule 12(b)(6) for failure to state a claim, accepting the allegations in the complaint
    as true and construing them in the light most favorable to the plaintiff.” Butler v.
    Sheriff of Palm Beach Cnty., 
    685 F.3d 1261
    , 1265 (11th Cir. 2012) (citation
    omitted). To survive a motion to dismiss under Rule 12(b)(6), a plaintiff must
    present factual allegations “enough to raise a right to relief above the speculative
    level.” Bell Atl. Corp. v. Twombly, 
    550 U.S. 544
    , 555 (2007). Once a claim has
    been sufficiently stated, “it may be supported by showing any set of facts
    consistent with the allegations in the complaint.” 
    Id. at 563
    . “A pleading that
    offers labels and conclusions or a formulaic recitation of the elements of a cause of
    8
    Case: 14-11214      Date Filed: 01/26/2015     Page: 9 of 19
    action will not do. Nor does a complaint suffice if it tenders naked assertions
    devoid of further factual enhancement.” Ashcroft v. Iqbal, 
    556 U.S. 662
    , 678
    (2009) (quotations, alteration, and citation omitted). Because courts under CAFA
    are based on diversity jurisdiction, we apply substantive state law to determine if
    the plaintiffs’ allegations state a claim for relief. See, e.g., Audler v. CBC Innovis,
    Inc., 
    519 F.3d 239
    , 248 (5th Cir. 2008). Like other diversity cases, we apply
    federal procedural rules. 
    Id.
    A. Fraud and Georgia Civil RICO claims
    The plaintiffs argue that they sufficiently pleaded their fraud claims with
    specificity by identifying the time period of the alleged misrepresentations and the
    specific fraudulent statements the defendants made. They further contend that the
    RICO claims alleging theft by deception, mail and wire fraud, and false statements
    to a government agency were not subject to Rule 9’s specificity requirements
    because those claims do not arise from fraud.
    Under Georgia law, to state a claim for fraud, the plaintiffs must show “five
    elements: (1) false representation by defendant; (2) with scienter, or knowledge of
    falsity; (3) with intent to deceive plaintiff or to induce plaintiff into acting or
    refraining from acting; (4) on which plaintiff justifiably relied; (5) with proximate
    cause of damages to plaintiff.” Worsham v. Provident Cos., Inc., 
    249 F. Supp. 2d 1325
    , 1331 (N.D. Ga.2002); see also O.C.G.A. §§ 23–2–52, 51–6–2(a).
    9
    Case: 14-11214      Date Filed: 01/26/2015   Page: 10 of 19
    In pleading a claim for fraud, the plaintiffs “must state with particularity the
    circumstances constituting fraud or mistake. Malice, intent, knowledge, and other
    conditions of a person’s mind may be alleged generally.” Fed. R. Civ. P. 9(b).
    Rule 9 thus requires plaintiffs to allege
    (1) precisely what statements or omissions were made in which
    documents or oral representations; (2) the time and place of each
    such statement and the person responsible for making (or, in the
    case of omissions, not making) them; (3) the content of such
    statements and the manner in which they misled the plaintiff; and
    (4) what the defendant obtained as a consequence of the fraud.
    Findwhat Investor Grp. v. FindWhat.com, 
    658 F.3d 1282
    , 1296 (11th Cir. 2011).
    Specificity under Rule 9(b) does not, however, eliminate the concept of
    notice pleading. Ziemba v. Cascade Int’l, Inc., 
    256 F.3d 1194
    , 1202 (11th Cir.
    2001) (internal quotation marks omitted). “Allegations of date, time or place
    satisfy the Rule 9(b) requirement that the circumstances of the alleged fraud must
    be pleaded with particularity, but alternative means are also available to satisfy the
    rule.” Durham v. Bus. Mgmt. Assocs., 
    847 F.2d 1505
    , 1512 (11th Cir. 1988). The
    particularity requirement may be relaxed for allegations of “prolonged multi-act
    schemes.” U.S. ex rel. Clausen v. Lab. Corp. of Am., Inc., 
    290 F.3d 1301
    , 1314
    n.25 (11th Cir. 2002). The relaxed standard permits a plaintiff to plead the overall
    nature of the fraud and then to allege with particularity one or more illustrative
    instances of the fraud. See 
    id.
     Even under the relaxed requirement, however, a
    10
    Case: 14-11214      Date Filed: 01/26/2015    Page: 11 of 19
    plaintiff is still required to allege at least some particular examples of fraudulent
    conduct to lay a foundation for the rest of the allegations of fraud. See 
    id.
    Under the Georgia civil RICO statute, “[i]t is unlawful for any person,
    through a pattern of racketeering activity or proceeds derived therefrom, to acquire
    or maintain, directly or indirectly, any interest in or control of any enterprise, real
    property, or personal property of any nature, including money.” O.C.G.A. § 16-
    14-4(a). The statute does not require proof of an “enterprise.” Cobb Cnty. v. Jones
    Group, P.L.C., 
    460 S.E.2d 516
    , 520-21 (Ga. Ct. App. 1995). Rather, under the
    Georgia civil RICO statute, the plaintiffs need only establish racketeering activity;
    that is, “a plaintiff must show that the defendant committed predicate offenses (set
    forth in O.C.G.A. § 16-14-3(9)) at least twice.” Id. at 521 (quotation marks and
    citation omitted). Nevertheless, like any other fraud action, a RICO claim based
    on fraud must be pleaded with specificity. See Fed. R. Civ. P. 9(b); O.C.G.A. § 9-
    11-9(b).
    The district court properly concluded that the plaintiffs failed to state their
    claims for fraudulent misrepresentation and civil RICO violations because the
    plaintiffs failed to plead these claims with specificity under Rule 9(b). Here, the
    plaintiffs identified eleven different misrepresentations, but none of the allegations
    indicated the date, time, or place of any misrepresentation. Nor did the plaintiffs
    11
    Case: 14-11214       Date Filed: 01/26/2015       Page: 12 of 19
    identify which of the many defendants was responsible for the specific statement.
    For example, in paragraphs 2 and 3 of the complaint, the plaintiffs alleged:
    [i]n 2011, Mr. Burgess and Ms. Burgess sought the services of an in-
    patient drug and alcohol rehabilitation center . . . . The Burgesses
    found NNGA through an internet search, and . . . . spoke with one or
    more employees of NNGA and/or International, and/or were provided
    with marketing materials regarding NNGA’s program. The Burgesses
    relied upon the following representations made by NNGA and/or
    International . . . .
    These allegations fall short of the heightened pleading requirement in that
    they fail to specify which defendant was involved, what employee they spoke with
    and for whom the employee worked, when they conducted the internet search,
    where the misrepresentation appeared, and whether and what marketing materials
    they were given and by whom. And, in paragraph 111, the plaintiffs list the eleven
    misrepresentations, but again they do so only in generalities.
    In fact, the allegations in the complaint fail to meet even the relaxed
    standard; plaintiffs failed to identify any specific examples to illustrate the fraud
    while pleading the overall nature of the fraud generally. 2 See Clauson, 
    290 F.3d at 1314
    . Moreover, the plaintiffs lump all the defendants together as the sources of
    the misrepresentations, and they pleaded the who, what, and when elements of
    their fraud in the alternative. This court has repeatedly held that lumping multiple
    2
    Although at times the plaintiffs identified the specific misrepresentation, such as “NNGA had
    a success rate of over 70%,” the plaintiffs failed to specify who made the statement or what
    material it appeared in, or when they misrepresentation was made.
    12
    Case: 14-11214     Date Filed: 01/26/2015    Page: 13 of 19
    defendants together in such generalities is insufficient under Rule 9(b). See, e.g.,
    Ambrosia Coal & Constr. Co. v. Pages Morales, 
    482 F.3d 1309
    , 1317 (11th Cir.
    2007) (“[I]n a case involving multiple defendants . . . the complaint should inform
    each defendant of the nature of his alleged participation in the fraud.” (internal
    citation omitted)). Accordingly, we agree with the district court that the plaintiffs’
    fraud claim failed to meet the heightened pleading requirement of Rule 9(b).
    The plaintiffs’ civil RICO claims fail for the same lack of specificity. And
    although the plaintiffs argue to the contrary, a review of the complaint shows that
    the same misrepresentations alleged as fraudulent form the basis for the RICO
    claims. For example, in paragraph 142 setting out the claim for mail and wire
    fraud, the plaintiffs alleged that “Defendants distributed the following false
    statements and/or representations . . . through the mail, telephone wire facilities,
    and/or Internet.” They then list nine allegedly false statements. And although
    some of the alleged misrepresentations are specific, such as “NNGA offered a
    complete cure for addiction,” the plaintiffs failed to specify which defendant made
    the alleged misrepresentation, when that defendant made it, and through what
    medium. Thus, the district court properly dismissed the RICO claims as well.
    B. Breach of contract
    The plaintiffs argue that they established the existence of a valid contract
    and sufficiently alleged a breach based on the misrepresentations NI and NNGA
    13
    Case: 14-11214        Date Filed: 01/26/2015       Page: 14 of 19
    made regarding the rehabilitation program. They assert that the court improperly
    declined to address NNGA’s failure to act in good faith under the contract for
    rehabilitation services and state that they identified specific contractual provisions
    in their responses to the motion to dismiss.
    We first note that this count applied only to NNGA, as only NNGA was a
    party to the contract. See Kaesemeyer v. Angiogenix, Inc., 
    629 S.E.2d 22
    , 25 (Ga.
    Ct. App. 2006) (explaining that only the parties to a contract are bound by its
    terms). Thus, the district court correctly dismissed this count against ABLE and
    NI.
    Under Georgia law the plaintiffs must show a breach of a valid contract and
    damages to the party who has the right to complain about the breach. Budget
    Rent–a–Car of Atlanta, Inc. v. Webb, 
    469 S.E.2d 712
    , 713 (Ga. Ct. App. 1996).
    Here, the plaintiffs failed to attach a copy of the contract to the complaint,
    and failed to identify the specific contractual provisions that the defendants
    breached.3 In their complaint, the plaintiffs made vague references to a breach, but
    they never identified the contract provision that formed the basis of their claims.
    As the plaintiffs later conceded, there were multiple contracts at issue, including
    the Financial Policy, the Admission and Services Agreement, the Student Rules of
    3
    The defendants attached copies of the various contracts to their motions to dismiss. Thus, we,
    like the district court, can review those documents. See SFM Holdings, Ltd. v. Banc of Am. Sec.,
    LLC, 
    600 F.3d 1334
    , 1337 (11th Cir. 2010) (“In ruling upon a motion to dismiss, the district
    court may consider an extrinsic document if it is (1) central to the plaintiff’s claim, and (2) its
    authenticity is not challenged.”).
    14
    Case: 14-11214     Date Filed: 01/26/2015    Page: 15 of 19
    Conduct, the Confidentiality Agreement, and various Consent forms. Some of
    these were signed only by the patients and others by the plaintiffs and the patients.
    Thus, the plaintiffs’ list of alleged misrepresentations, not tied to any specific
    contract or contractual provision, was insufficient to set forth a breach-of-contract
    claim.
    Moreover, in the absence of an express breach, there can be no claim for
    breach of the implied covenant of good faith. See Morrell v. Wellstar Health Sys.,
    Inc., 
    633 S.E.2d 68
    , 72 (Ga. Ct. App. 2006) (“there is no independent cause of
    action for violation of the covenant apart from breach of an express term of the
    contract” (internal citation omitted)). Accordingly, the district court properly
    dismissed the breach-of-contract claim against NNGA.
    C. Unjust enrichment
    The plaintiffs next argue that the court erred by dismissing at this
    preliminary stage its alternate pleading of unjust enrichment.
    In the absence of an enforceable contract, a plaintiff may be able to recover
    under a theory of unjust enrichment, claiming a benefit conferred on the defendant
    for which the plaintiff received no corresponding return. Ga. Tile Distribs., Inc. v.
    Zumpano Enters., Inc., 
    422 S.E.2d 906
    , 908 (Ga. Ct. App. 1992). Because there
    was a contract in this case, there could be no claim for unjust enrichment against
    NNGA. See Williams v. Mohawk, Indust., Inc., 
    465 F.3d 1277
    , 1295 (11th Cir.
    15
    Case: 14-11214     Date Filed: 01/26/2015    Page: 16 of 19
    2006). Thus, we will consider the unjust enrichment claim as it pertains to ABLE
    and NI.
    “[U]nder Georgia law, an unjust enrichment claim requires the plaintiff to
    establish the following: (1) that the plaintiff conferred a benefit on the defendant
    and (2) that equity requires the defendant to compensate the plaintiff for this
    benefit.” Chem–Nuclear Sys., Inc. v. Arivec Chems., Inc., 
    978 F. Supp. 1105
    , 1110
    (N.D. Ga. 1997); accord O.C.G.A. § 9–2–7. The plaintiffs, however, failed to
    allege any benefit conferred on ABLE and NI. Thus, there is no requirement that
    ABLE and NI compensate the plaintiffs. See Brown v. Cooper, 
    514 S.E.2d 857
    ,
    860 (Ga. Ct. App. 1999). Accordingly, the district court properly dismissed this
    count of the complaint.
    D. Detrimental reliance and Leave to amend
    As the plaintiffs conceded, there is no such cause of action under Georgia
    law. Rather, the plaintiffs contend, this count should be considered as a claim for
    promissory estoppel.
    The district court did not abuse its discretion by failing to allow the plaintiffs
    to amend their complaint to address the detrimental-reliance claim or any other
    deficiencies. We repeatedly have held that plaintiffs cannot amend their complaint
    through a response to a motion to dismiss. Rosenberg v. Gould, 
    554 F.3d 962
    , 967
    (11th Cir. 2009). In Rosenberg, we confirmed that a request for leave submitted in
    16
    Case: 14-11214    Date Filed: 01/26/2015    Page: 17 of 19
    a footnote in a memo opposing a motion to dismiss was insufficient to require the
    court to grant leave to amend. We further noted that Rule 7(b) required the
    plaintiff to submit a copy of the proposed amendment or to describe the proposed
    amendment when requesting leave. 
    Id.
     (citing Fed. R. Civ. P. 7(b)(1)). Thus, our
    precedent is clear: the proper method to request leave to amend is through filing a
    motion, and such motion for leave to amend should either set forth the substance of
    the proposed amendment or attach a copy of the proposed amendment. Long, 181
    F.3d at 1279.
    In this case, the plaintiffs did not file a motion for leave to amend but instead
    included the request for leave to amend in the memorandum they filed in
    opposition to the motion to dismiss. Furthermore, they failed to attach the
    amendment or set forth the substance of the proposed amendment. Moreover, they
    could have — but did not — seek relief from judgment under 59(e), or 60(b)(6) in
    order to seek such leave. See DiMaio v. Democratic Nat’l Comm., 
    520 F.3d 1299
    ,
    1303 (11th Cir. 2008) (discussing failure to seek leave under Rules 15, 59, or 60)
    (citing United States ex rel. Atkins v. McInteer, 
    470 F.3d 1350
    , 1361, 1362 n.22
    (11th Cir. 2006). Thus, we conclude that the district court did not abuse its
    discretion.
    17
    Case: 14-11214     Date Filed: 01/26/2015    Page: 18 of 19
    E. Negligence per se
    Addressing the negligence per se claim, the plaintiffs contend that NNGA’s
    failure to comply with state licensing regulations caused a harm that the
    regulations were designed to prevent.
    “Georgia law allows the adoption of a statute as a standard of conduct so
    that its violation becomes negligence per se.” Cent. Anesthesia Assoc. v. Worthy,
    
    325 S.E.2d 819
    , 823 (Ga. Ct. App. 1984), aff’d, 
    333 S.E.2d 829
     (Ga. 1985). “In
    determining whether the violation of a statute or ordinance is negligence per se as
    to a particular person, it is necessary to examine the purposes of the legislation and
    decide (1) whether the injured person falls within the class of persons it was
    intended to protect and (2) whether the harm complained of was the harm it was
    intended to guard against.” 
    Id.
     Further, for a violation of a statute to be negligence
    per se, the violation “must be capable of having a causal connection between it and
    the damage or injury inflicted upon the other person,” which “refers not to the
    proximate cause element of the negligence action [], but rather to the character of
    the legal duty involved.” 
    Id.
    Here, the plaintiffs alleged that NNGA violated O.C.G.A. § 26-5-3, which
    defines terms applicable to the regulation of drug treatment programs, and Ga.
    18
    Case: 14-11214        Date Filed: 01/26/2015        Page: 19 of 19
    Comp. R. & Regs. 290-4-2.4 As the district court correctly found, § 26-5-3 merely
    sets forth definitions and thus provides no basis for a negligence per se claim.
    With respect to Regulation 290-4-2, the Georgia Department of Human
    Services established rules and regulations for drug and alcohol rehabilitation
    programs. But these regulations were “intended for licensing and inspection
    purposes and not for the creation of a standard of conduct to protect individuals.”
    See, e.g., Doe v. Fulton-Dekalb Hosp. Auth., 
    628 F.3d 1325
    , 1339 (11th Cir. 2010)
    (discussing negligence per se as it pertains to Regulation 290-9-12, which is nearly
    identical to 290-4-2). Thus, the district court properly determined that the
    regulations could not form the basis of a negligence per se claim.
    IV.
    For the foregoing reasons, we conclude that the district court properly
    dismissed RTC for lack of personal jurisdiction and the claims against ABLE, NI,
    and NNGA for failure to state a claim.
    AFFIRMED.
    4
    As the district court noted, this regulation has since been repealed.
    19
    

Document Info

Docket Number: 14-11214

Citation Numbers: 600 F. App'x 657

Judges: Wilson, Rosenbaum, Kravitch

Filed Date: 1/26/2015

Precedential Status: Non-Precedential

Modified Date: 10/19/2024

Authorities (27)

United States v. Charles M. McInteer , 470 F.3d 1350 ( 2006 )

richard-durham-v-business-management-associates-somers-altenbach , 847 F.2d 1505 ( 1988 )

National Ass'n for the Advancement of Colored People v. ... , 102 S. Ct. 3409 ( 1982 )

National Association for Advancement of Colored People v. ... , 221 Ga. 16 ( 1965 )

Central Anesthesia Associates P. C. v. Worthy , 173 Ga. App. 150 ( 1984 )

United Technologies Corp. v. Mazer , 556 F.3d 1260 ( 2009 )

Rosenberg v. Gould , 554 F.3d 962 ( 2009 )

Dimaio v. Democratic National Committee , 520 F.3d 1299 ( 2008 )

Bell Atlantic Corp. v. Twombly , 127 S. Ct. 1955 ( 2007 )

Ashcroft v. Iqbal , 129 S. Ct. 1937 ( 2009 )

John Madara v. Daryl Hall , 916 F.2d 1510 ( 1990 )

Schlotzsky's, Inc. v. Hyde , 245 Ga. App. 888 ( 2000 )

Audler v. CBC Innovis Inc. , 519 F.3d 239 ( 2008 )

Doe v. Fulton-DeKalb Hospital Authority , 628 F.3d 1325 ( 2010 )

Morrell v. Wellstar Health System, Inc. , 280 Ga. App. 1 ( 2006 )

Beckworth v. Beckworth , 255 Ga. 241 ( 1985 )

Central Anesthesia Associates, P.C. v. Worthy , 254 Ga. 728 ( 1985 )

White v. Coca-Cola Co. , 542 F.3d 848 ( 2008 )

Ambrosia Coal v. Hector Carlos Pages Morales , 482 F.3d 1309 ( 2007 )

Chem-Nuclear Systems, Inc. v. Arivec Chemicals, Inc. , 978 F. Supp. 1105 ( 1997 )

View All Authorities »