Gmi, LLC v. Asociación Del Fútbol Argentino

Third District Court of Appeal
State of Florida
Opinion filed May 04, 2016.
Not final until disposition of timely filed motion for rehearing.
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No. 3D15-1678
Lower Tribunal No. 14-21682
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GMI, LLC, etc.,
Appellant,
vs.
Asociaciόn del Fútbol Argentino, etc.,
Appellee.
An Appeal from the Circuit Court for Miami-Dade County, Jose M.
Rodriguez, Judge.
Salpeter Gitkin, LLP, and James P. Gitkin (Fort Lauderdale), for appellant.
Atkinson & Brownell, P.A., and Krystina N. Jiron; Dorsey & Whitney LLP,
and Juan C. Basombrio (Costa Mesa, California), for appellee.
Before ROTHENBERG, LAGOA, and SALTER, JJ.
ROTHENBERG, J.
The sole issue on appeal is whether the Republic of Argentina (“Argentina”)
is an indispensable party to the lawsuit filed by GMI, LLC (“GMI”) against
Asociaciόn del Fútbol Argentino (“AFA”), the governing body of football (soccer)
in Argentina. For the reasons that follow, we conclude that Argentina is an
indispensable party and Argentina cannot be joined as a party because it is immune
from suit under the Foreign Sovereign Immunities Act (“FSIA”). Thus, the trial
court properly dismissed GMI’s action, and we affirm.
I. FACTUAL AND PROCEDURAL HISTORY
GMI filed an amended complaint against AFA, alleging causes of action for
breach of contract and, in the alternative, unjust enrichment, fraud in the
inducement, and tortious interference. These causes of action were based on the
following alleged facts. On January 13, 2007, GMI and AFA entered into a one-
page Exclusive Authorization Agreement (“Agreement”) granting GMI the
exclusive right to market, negotiate, and execute a deal for the sale of AFA’s
football media rights for a period of twenty years starting in the 2014/2015 football
season. The translated Agreement, which was attached to the amended complaint,
provides as follows:
The parties expressly state that the AFA will not pay any
compensation for the work performed. The AFA will reach an
agreement with the buyer on the financial compensation due GMI for
organizing the transaction, as well as the way in which this will be
implemented (i.e., cash, shareholding, etc.).
In March 2009, GMI met with Argentina’s then Minister of Justice, and
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during that meeting, GMI proposed that Argentina purchase AFA’s football media
rights. Following this meeting, AFA instructed GMI to pursue the opportunity
further. In response to AFA’s directive, GMI allegedly conducted several
meetings with Argentina’s then Minister of Economy in July 2009 regarding
Argentina’s purchase of AFA’s football media rights. Immediately thereafter,
Argentina’s Minister of Economy presented the proposal to Argentina’s then
president, who subsequently “green lighted” the idea and appointed Argentina’s
Minister of Justice to run the project for the Argentine government. GMI alleges
that AFA then orchestrated a meeting at the presidential residence without GMI
presence, and at this meeting, AFA informed Argentina that GMI did not have to
participate in the meeting and would have no further involvement. On August 20,
2009, AFA executed a Partnership Agreement, which created a partnership
between AFA and a group of Argentine government entities, wherein AFA
assigned its football media rights to these Argentine government entities for a
period of ten years for compensation.
GMI alleged that it was the procuring cause of the Partnership Agreement,
and based on the Agreement between AFA and GMI, AFA knew that GMI was
entitled to compensation for procuring the Partnership Agreement between AFA
and the Argentine government entities. GMI also alleged that AFA failed and/or
refused to perform its obligations under the Agreement, and prior to entering into
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the Agreement, AFA knew that it would ultimately cut GMI out of any negotiated
arrangement. Lastly, GMI alleged that it was seeking compensation and damages
only against AFA, and that, in this action, it was not seeking any relief,
compensation, or damages from Argentina.
AFA filed a motion to dismiss GMI’s amended complaint, arguing, in part,
that the action must be dismissed for lack of subject matter jurisdiction.
Specifically, AFA argued that based on the allegations set forth in GMI’s amended
complaint and its attachments, Argentina is an indispensable party to the action,1
and because Argentina cannot be joined given its sovereign immunity under the
FSIA, dismissal of the action in its entirety is required under the United States
Supreme Court’s decision in Republic of Philippines v. Pimental, 553 U.S. 851
(2008).2
At the hearing on AFA’s motion to dismiss the amended complaint, the trial
court granted AFA’s motion to dismiss without leave to amend based on its finding
that Argentina is an indispensable party, and subsequently entered an amended
final order granting AFA’s motion to dismiss the amended complaint without leave
to amend and dismissing GMI’s action. GMI’s appeal followed.
1 Florida Rule of Civil Procedure 1.140(b)(7) provides that the defense of failure
to join indispensable parties may be made by motion at the option of the pleader.
2 In Pimental, the United States Supreme Court held that “where sovereign
immunity is asserted, and the claims of the sovereign are not frivolous, dismissal of
the action must be ordered where there is a potential for injury to the interests of
the absent sovereign.” 553 U.S. at t 867.
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II. ANALYSIS
“[A]n indispensable party is one whose interest in the controversy makes it
impossible to completely adjudicate the matter without affecting either that party’s
interests or the interest of another party in the action.” Diaz v. Impex of Doral,
Inc., 7 So. 3d 591, 594 (Fla. 3d DCA 2009); see also Fla. Dep’t of Revenue v.
Cummings, 930 So. 2d 604, 607 (Fla. 2006). Based on this standard, AFA argues,
and we agree, that the trial court correctly determined that Argentina is an
indispensable party based on two separate but equally compelling reasons.
First, the Agreement between GMI and AFA specifically provides that AFA
will not pay any compensation for work performed by GMI, and that GMI will be
compensated for its efforts by the buyer of AFA’s football media rights. GMI has
alleged that it is the “procuring cause” of the Partnership Agreement between AFA
and the Argentine government entities, and therefore, the Argentine government
entities, as the buyer of AFA’s football media rights, would be responsible for
paying any compensation due to GMI. Therefore, any decision rendered in this
action will affect Argentina’s interests.
Second, GMI alleged in its amended complaint that AFA and a group of
Argentine government entities entered into the Partnership Agreement, whereby
AFA assigned its football media rights to these entities, and these Argentine
government entities agreed to pay AFA directly. Based on these allegations, if
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judgment is ultimately entered against AFA and in favor of GMI, because
Argentina and AFA are partners, Argentina will be directly affected by the final
judgment. See Meyerowich v. Carrere Gen. Contractors, Inc., 611 So. 2d 41, 42
(Fla. 4th DCA 1991) (“Each partner is deemed to have an interest in the chose in
action and thus is an indispensable party to the suit.”) (quoting DeToro v. Dervan
Invs. Ltd. Corp., 483 So. 2d 717, 721 (Fla. 4th DCA 1985), review denied, 492 So.
2d 1334 (Fla. 1986)).
III. CONCLUSION
As the trial court properly determined that Argentina is an indispensable
party that cannot be joined based on its sovereign immunity under the FSIA, and
GMI has acknowledged that if Argentina is an indispensable party, dismissal of the
action in its entirety is required under Pimental, we affirm the order under review
that grants AFA’s motion to dismiss GMI’s amended complaint without leave to
amend and dismisses GMI’s action.
Affirmed.
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