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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW MEXICO HOWARD DELACRUZ-BANCROFT, Plaintiff, v. Civ. No. 23-0023 JB/KK FIELD NATION, LLC, et al., Defendants. MAGISTRATE JUDGEâS PROPOSED FINDINGS AND RECOMMENDED DISPOSITION1 BEFORE the Court are (1) Defendant Jack in the Box, Inc.âs (âJITBâsâ) Motion to Dismiss for Lack of Personal Jurisdiction and Failure to State a Claim (Doc. 1-1 at 31) (âJITB Motion to Dismissâ), and (2) NewBold Corporationâs Motion to Dismiss the Complaint against the National Service Center2 (âNSCâ) (Doc. 1-1 at 25) (âNSC Motion to Dismissâ). Having reviewed the partiesâ submissions, the record, and the relevant law, and being otherwise sufficiently advised, I recommend the Court GRANT JITBâs Motion to Dismiss, GRANT the NSCâs Motion to Dismiss, and DISMISS Plaintiffâs claims against JITB and the NSC. I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY Plaintiff filed this action in the Second Judicial District Court for the County of Bernalillo, State of New Mexico, on November 14, 2022. (Doc. 1-1 at 3.) In his Complaint, Plaintiff asserts claims for breach of contract, breach of the duty of good faith and fair dealing, intentional and/or negligent misrepresentation, and violations of the New Mexico Unfair Practices Act (âNMUPAâ) 1 By an Order of Reference entered on February 22, 2023, United States District Judge James O. Browning referred this case to me to conduct hearings, if warranted, including evidentiary hearings, and to perform any legal analysis required to recommend to the Court an ultimate disposition of the case. (Doc. 20.) 2 The NSC is a division of NewBold Corporation. (Docs. 6, 1-1 at 25.) against Defendants Field Nation, LLC (âField Nationâ), âSpartan Computer Service/National Service Center AKA SCS/NSC,â3 and JITB. (Id. at 3â15); See N.M. Stat. Ann. §§ 57-12-1 to -26 (2003). In support of his claims, Plaintiff alleges that he used Field Nationâs internet âwork platformâ to obtain information technology (âITâ) jobs from businesses posting job opportunities on the platform; however, on November 11, 2018, he provided services to a JITB franchisee (the âDancel Franchiseâ) in Albuquerque without going through the Field Nationâs work platform and Field Nation permanently banned him from the platform, âmeaning that no more IT jobs would be available to Plaintiffâ through it. (Id. at 4â8.) Plaintiff further alleges that Field Nation banned him from its platform on November 14, 2018, because employees of âSCS/NSCâ and JITB informed Field Nation âthat [he] had violated Field Nationâs agreement to not work off the platformâ even though he âhad worked with SCS/NSC off and separate from the Field Nation platform at the request of SCS/NSC for many years prior . . . . â4 (Id. at 7â8.) He adds that Field Nation âdid not 3 Plaintiff named âSpartan Computer Service/National Service Centerâ (âSCS/NSCâ) as a defendant and refers to SCS/NSC through his Complaint as a single entity. (Doc. 1-1 at 1.) Plaintiff certified that he mailed the summons and Complaint to âSpartan Computer Services/National Service Center aka SCS/NSC care of: NewBold Corporation and Stonewood Capital Management Inc.â (Doc. 1-1 at 15.) However, counsel for NewBold Corporation entered an appearance on behalf of the NSC (a division of NewBold Corporation), (Doc. 6), and suggested that SCS is a separate entity. (Docs. 1-1 at 25 (stating that Plaintiff named four defendants: Field Nation, JITB, the NSC, and SCS); see also Doc. 41 at 1.) Nevertheless, Plaintiff continues to refer to âSCS/NSCâ as a single entity. (Doc. 39.) Thus, it appears that Plaintiff intended to sue only NSC. However, to the extent that he intended to pursue claims against SCS, because Plaintiff has not timely served this Defendant, the Court has issued an Order to Show Cause why his claims against SCS should not be dismissed. 4 As noted in the Courtâs Memorandum Opinion and Order dated March 29, 2024, the contract governing Plaintiffâs and Field Nationâs business relationship provides that Plaintiff (referred to as âProviderâ) âshall do all workâ for businesses posting jobs on Field Nationâs platform (referred to as âBuyersâ) âdirectly through the Platform only (or Private Network, as applicable), and shall not communicate with any Buyers, or Buyersâ clients, outside of the Platform for the purpose of avoiding any obligations under these Provider Terms, including the obligation to pay the Field Nation Fee. For the term of these Provider Terms and one year thereafter, Provider shall not directly or indirectly: (a) solicit or accept employment or contract services from any Field Nation Buyer or Buyerâs clients about whom Provider learned from the Buyer or through the Platform, except for services to be performed pursuant to Work Orders via the Platform without the written consent of Field Nation; or (b) take any action which interferes with the relationship between Field Nation and any of its Buyers or Buyersâ clients.â (See Doc. 23-2 at 9-10.) consider or respond to [his] explanation that SCS/NSC was the one who initiated work off the platformâ and âdenied [him] any appeal process.â (Id. at 8â9.) On December 14 and 20, 2022, respectively, JITB and NewBold Corporation filed Motions to Dismiss in state court. (Docs. 1, 1-1 at 25, 31.) JITB argues that this Court lacks personal jurisdiction over it and that Plaintiff has not stated a claim against it because there is no contract between Plaintiff and JITB, his tort claims are untimely, and Plaintiff does not have standing to bring an NMUPA claim. (Doc. 1-1 at 32, 34); See Fed. R. Civ. P 12(b)(6). The NSC argues that Plaintiff has failed to state claims against it as well. (Doc. 1-1 at 25.) On January 9, 2023, Field Nation removed the case to this Court and caused notice of the removal to be served on Plaintiff. (Doc. 1; Doc. 1-2 at 2, 3.)5 On January 10, 2023, Plaintiff filed a motion in state court titled âMotion to Strike, Consideration for Motion to Amend as Response to Motion to Dismiss and Objection for Removal to Federal Court and Request for Hearingâ (the âState Court Responseâ). See Delacruz-Bancroft v. Field Nation, LLC, et al., Case No. D-202-CV- 2022-06858; (Docs. 24 at 1, 39 at 3.) Plaintiff asserts that he responded to JITBâs and the NSCâs motions to dismiss in that filing. (Docs. 24 at 1, 39 at 3.) On January 26, 2023, the Court found good cause to delay entering a scheduling order pending resolution of the motions to dismiss. (Doc. 13 at 1.) About two months later, on March 24, 2023, Field Nation filed a motion asking the Court to compel Plaintiff to arbitrate Plaintiffâs claims against Field Nation and to dismiss Field Nation from this action. (Doc. 23.) On April 11, 2023, Plaintiff filed a âRequest for Clerk to Update Federal Docketing Statement with Pleadings from State District Court to Include Plaintiffâs Response to Defendant 5 Pursuant to this Courtâs order, Field Nation timely filed an amended notice of removal to correct deficiencies in the original notice on January 20, 2023. (Docs. 10, 11.) Spartan Computer Services/National Service Center SCS/NSC AKA NewBoldâs Motion to Dismissâ (âRequest to Update Docketâ). (Doc. 24.) Plaintiff asked that the Clerk âupdate the federal docketing statement with pleadings from the state district court in this instant case to include Plaintiffâs response to Defendant SCS/NSC Spartan Computer Services, National Service Center aka New Boldâs Motion to Dismiss as part of the federal court record.â (Id. at 2.) On April 13, 2023, Plaintiff filed a âRequest for Clerkâs Entry of Defaultâ in which he argued that the Court should enter a default because Field Nation, SCS/NSC, and JITB were served with summonses and copies of the complaint on November 14, 2022, but failed to file responsive pleadings within thirty days as required by New Mexico Rule of Civil Procedure 1-004. (Doc. 25 at 1â2.) As discussed further below, the Court denied the request for entry of default on April 18, 2023, because âthe record does not contain proofs of service that include the dates of delivery by the post office and copies of Defendantsâ signature receipts, nor does it otherwise reflect that persons authorized to accept service of process on Defendantsâ behalf signed receipts for these mailings.â (Doc. 26 at 2 (citing Doc. 1-1 at 16â24.) âThus, there is no indication in the record that service of process on Defendants was completed on November 14, 2022.â (Doc. 26 at 2.) On April 27, 2023, JITB and NewBold Corporation filed Notices of Completion of Briefing indicating that Plaintiff had not filed a response to their motions to dismiss, either in state court before removal or in this Court afterward. (Docs. 27 at 1-2; 30 at 1.) On the same date, Field Nation filed a reply in support of its Motion to Compel Arbitration indicating that Plaintiff had neither responded to the motion nor sought an extension of time in which to do so. (Doc. 28 at 1-2.) Approximately nine months later, on January 19, 2024, the Court denied Plaintiffâs Request to Update Docket because in general, âdocuments filed in state court after removal are legal nullitiesâ and âhave no bearing on any part of the removed action.â (Doc. 31 (quoting Alexander v. Kirkpatrick, Civ. No. 19-509 JB/SMV, 2019 WL 4164882, at *2 (D.N.M. Sept. 3, 2019), report and recommendation adopted, 426 F. Supp. 3d 1005 (D.N.M. 2019)). In its Order, the Court noted that âPlaintiff plainly received notice of removal of his case to this Court before he filed his [State Court Response] in state court, and he has failed to offer any reason why he could not have filed [it] in this Court.â (Doc. 31 at 2.) The Court also issued an Order to Show Cause requiring Plaintiff to show cause why the Court should not grant the motions to dismiss and Field Nationâs motion to compel arbitration because he had failed to timely respond to them. (Doc. 32 at 3.) In his show- cause response, Plaintiff asked for an extension of time in which to respond to the motions. (Doc. 33.) After expedited briefing, the Court granted this request. (Doc. 38.) In its Order, â[t]o ensure that Plaintiff does not suffer from any lingering confusion,â the Court advised him âthat it will not consider any pleadings filed in state court after removal when it rules on Defendantsâ motions. Rather, Plaintiff must file his responses to the motions in this Court if he wants the Court to consider them.â (Id. at 3 (emphasis in original).) Plaintiff timely filed a single response addressing the three motions on February 16, 2024. (Doc. 39.) In his Response, Plaintiff did not adduce evidence showing that the Court has personal jurisdiction over JITB and did not substantively address JITBâs or the NSCâs Rule 12(b)(6) arguments. (Doc. 39.) Although he states that he âtimely amend[ed] his complaint . . . as an answer toâ JITBâs motion to dismiss (Doc. 39 at 3), Plaintiff did not file a motion to amend the Complaint in this Court. Therefore, the Complaint filed on November 14, 2022, is the operative complaint. (Doc. 1-1 at 3.) Defendants filed replies addressing Plaintiffâs Response. (Docs. 40, 41, 42.) The Court granted Field Nationâs Motion to Compel Arbitration on March 29, 2024, and dismissed Plaintiffâs claims against Field Nation. Bancroft v. Field Nation, LLC, No. CV 23-23 JB/KK, 2024 WL 1051237, at *6 (D.N.M. Mar. 11, 2024) report and recommendation adopted sub nom. DeLaCruz-Bancroft v. Field Nation, LLC, No. CIV 23-0023 JB/KK, 2024 WL 1382829 (D.N.M. Mar. 29, 2024) (âDeLaCruz-Bancroft Iâ). III. ANALYSIS The issues before the Court are whether: (A) JITBâs Motion to Dismiss was untimely, (Doc. 39 at 2), (B) Plaintiff has shown the Court has personal jurisdiction over JITB, (Doc. 1-1 at 32) and (C) Plaintiff has stated claims against JITB and the NSC under Federal Rule of Civil Procedure 12(b)(6). See (Doc. 1-1 at 25, 34.) A. Timeliness of JITBâs Motion to Dismiss Plaintiff argues, as he did in his âRequest for Clerkâs Entry of Default,â that the Court should find JITB âin defaultâ because JITB did not file its Motion to Dismiss within thirty days after the Complaint was served on it. (Docs. 25, 39 at 2, 12.) Plaintiff relies on N.M. R. Civ. P. 1- 012(a)(1), which requires defendants to file an âanswerâ within thirty days âafter the service of the summons and complaint uponâ them. The Court has already rejected this argument because the record does not support it. (Doc. 26.) The record shows that Plaintiff mailed summonses and a copy of the complaint to JITB and NewBold Corporationâs registered agent on November 14, 2022. (Doc. 1-1 at 15â24.) However, in state court civil actions, service by mail is only complete when a person authorized to accept service on a defendantâs behalf âsigns a receiptâ for the mailing. N.M. R. Civ. P. 1-004(E)(3), (G)(3). And here, as the Court observed in its Order Denying Plaintiffâs Request for Clerkâs Entry of Default, filed on April 18, 2023, the record does not contain proofs of service that include the dates of delivery by the post office and copies of Defendantsâ signature receipts, nor does it otherwise reflect that persons authorized to accept service of process on Defendantsâ behalf signed receipts for these mailings. Thus, there is no indication in the record that service of process on Defendants was completed on November 14, 2022, and that their responsive pleadings were therefore due by December 14, 2022. (Doc. 26 at 2 (footnote and citation omitted)); see DeLaCruz-Bancroft I at *6. The Court also noted that âDefendants cannot have received the mailings on November 14, 2022, because the summonses were not issued until November 14, 2022.â (Docs. 26 at 2; 1-1 at 16-24.) Although he filed his Response over nine months after the Courtâs Order Denying Plaintiffâs Request for Clerkâs Entry of Default, Plaintiff did not address the Courtâs reasoning or the effect of N.M. R. Civ. P. 1-004(E)(3), (G)(3). Hence, he has not shown that JITBâs Motion to Dismiss was untimely as a matter of fact. Even if JITBâs Motion to Dismiss was filed outside of the deadline for its answer to the Complaint, Plaintiff has not shown that JITB waived its personal jurisdiction defense. See N. M. R. Civ. P. 1-012(H) (lack of personal jurisdiction is a waivable defense); Fed. R. Civ. P 12(h) (same); see also (Doc. 39 at 13.) Plaintiffâs premise is that Rule 1-012(a)(1) fixes a deadline for motions to dismiss as well as answers to a complaint. But the plain language of Rule 1-012(a)(1) does not address motions and Plaintiff cites no New Mexico cases in support of his reading of the rule. (Doc. 39.) To the contrary, federal courts6 construing the counterpart federal rule have held that Rule 12(a)(1) does not fix a deadline for motions to dismiss for lack of personal jurisdiction. See Christenson Media Grp., Inc. v. Lang Indus., Inc., No. 10-2505-JTM, 2011 WL 2551744, at *2 (D. Kan. June 27, 2011) (collecting cases holding that âthe time limits in 12(a) do not govern waiver of 12(b) motions under 12(h)(1)â); Taylor v. State of Kansas, No. 87-1521-C, 1988 WL 507620, at *2 (D. Kan. Oct. 26, 1988) (âFed. R. Civ. P. 12(a) does not state that a defendant shall 6 New Mexico courts find âfederal authority interpretingâ Federal Rule of Civil Procedure 12 âinstructiveâ because âthe language of Rule 1â012 closely parallelsâ its federal counterpart. Doe v. Roman Cath. Diocese of Boise, Inc., 1996-NMCA-057, ¶ 5, 918 P.2d 17; see, e.g., Rupp v. Hurley, 1999-NMCA-057, ¶ 19, 979 P.2d 733 (relying on construction of Rule 12(h) to construe Rule 1-012(H)). serve an answer or respond by motion within 20 days, only that the defendant shall serve an answer within 20 days.â); 5C Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 1391 (3d ed.2004) (stating that Rule 12(h) âdoes not call for the assertion of the [personal jurisdiction] defense within the time provided in Rule 12(a) for serving a responsive pleading; it merely dictates waiver if the defense is not made by motion or included in the responsive pleading, presumably whenever it may happen to be servedâ). Similarly, âthe defense of failure to state a claim . . . may be raised during the pendency of the action including at trial on the merits.â Sundance Mech. & Util. Corp. v. Atlas, 1990-NMSC-031, ¶ 25, 789 P.2d 1250; N.M. R. Civ. P. 1â012(H)(2). In short, I find JITBâs Motion to Dismiss was not untimely and that JITB has not waived its defenses of lack of personal jurisdiction or failure to state a claim. B. Personal Jurisdiction over JITB If a defendant moves for dismissal of claims against it for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2), courts must decide whether the plaintiff has established personal jurisdiction over that defendant for each claim against it before ruling on the merits of the case. See OMI Holdings, Inc. v. Royal Ins. Co. of Canada, 149 F.3d 1086, 1091 (10th Cir. 1998); Behagen v. Amateur Basketball Assân of U.S.A., 744 F.2d 731, 733 (10th Cir. 1984) (âThe plaintiff bears the burden of establishing personal jurisdiction over the defendant.â); Dental Dynamics, LLC v. Jolly Dental Grp., LLC, 946 F.3d 1223, 1228 (10th Cir. 2020) (stating the plaintiff âmust make this showing with respect to each of the claims allegedâ). Before trial, the âplaintiff need only make a prima facie showingâ that the Court has personal jurisdiction over the defendants, which can be done by âdemonstrating, via affidavit or other written materials, facts that if true would support jurisdiction over the defendant.â OMI Holdings, Inc., 149 F.3d at 1091. In addition, the Court takes as true the allegations in the complaint âto the extent they are uncontroverted by the defendantâs affidavits.â Behagen, 744 F.2d at 733. âIf the parties present conflicting affidavits, all factual disputes are resolved in the plaintiffâs favor, and the plaintiffâs prima facie showing is sufficient notwithstanding the contrary presentation by the moving party.â Id.; OMI Holdings, 149 F.3d at 1091. Here, Plaintiff did not address JITBâs personal jurisdiction arguments in his Response or provide affidavits or other materials addressing jurisdiction. The Court therefore examines the allegations in the Complaint to determine whether, if true, those facts suffice to make a prima facie showing of personal jurisdiction over JITB. Behagen, 744 F.2d at 733. Determining whether the Court has personal jurisdiction involves two questions, the first of which is âwhether any applicable statute authorizes the service of process on defendants.â Dudnikov v. Chalk & Vermilion Fine Arts, Inc., 514 F.3d 1063, 1070 (10th Cir. 2008). In cases like this one not involving a federal statute conferring personal jurisdiction over the defendants, courts âapply the law of the state in which the district court sits.â Id. The second question is âwhether the exercise of such statutory jurisdiction comports with constitutional due process demands.â Id. Those âdemandsâ protect âan individualâs liberty interest in not being subject to the binding judgments of a forum with which he has established no meaningful âcontacts ties, or relations.ââ Burger King Corp. v. Rudzewicz, 471 U.S. 462, 471â472 (1985) (quoting Int'l Shoe Co. v. State of Wash., Off. of Unemployment Comp. & Placement, 326 U.S. 310, 319 (1945)). Therefore, a âcourt may exercise personal jurisdiction over a nonresident defendant only so long as there exist âminimum contactsâ between the defendant and the forum state.â WorldâWide Volkswagen Corp. v. Woodson, 444 U.S. 286, 291 (1979). If the defendant has the requisite minimum contacts with the forum state, courts then determine whether exercising personal jurisdiction over a defendant offends âtraditional notions of fair play and substantial justiceâ by considering the burden on the defendant, the interests of the plaintiff and the forum state, judicial efficiency, and âthe shared interest of the several states or foreign nations in furthering fundamental social policies. OMI Holdings, Inc., 149 F.3d at 1095. Under this analysis, a defendantâs contacts with a state may give rise to either âgeneralâ (all-purpose) or âspecificâ (case- related) personal jurisdiction. Dudnikov, 514 F.3d at 1078; OMI Holdings, Inc., 149 F.3d at 1091. The state law applicable here is New Mexicoâs âlong-armâ statute. N.M. Stat. Ann. § 38- 1-16 (1971). Because that statute âextends the jurisdictional reach of [courts in New Mexico] as far as constitutionally permissible,â the Court focuses only on the second questionâwhether [JITB has] the minimum contacts with New Mexico such that subjecting [it] to suit here is consistent with [its] due process rights. Tercero v. Roman Catholic Diocese, 2002-NMSC-018, ¶ 6, 48 P.3d 50; see Emps. Mut. Cas. Co. v. Bartile Roofs, Inc., 618 F.3d 1153, 1159 (10th Cir. 2010) (where a long-arm statute is coextensive with due process, courts âneed not conduct a statutory analysis apart from the due process analysisâ). 1. General Jurisdiction âGeneralâ jurisdiction may be exercised when the defendant has âaffiliations with the State [that] are so âcontinuous and systematicâ as to render [the defendant] essentially at home in the forum State.â Daimler AG v. Bauman, 571 U.S. 117, 139 (2014); Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 919 (2011). A corporationâs state of incorporation and principal place of business are paradigmatic bases for finding a corporation at âhome.â Goodyear Dunlop Tires Operations, S.A., 564 U.S. at 924 (2011); Daimler AG, 571 U.S. at 139. Only in âexceptionalâ cases will general jurisdiction be available anywhere else. Daimler AG, 571 U.S. at 139 n.19. Determining whether it has general jurisdiction requires a court to âappraise . . . a corporationâs activities in their entirety, nationwide and worldwide. A corporation that operates in many places can scarcely be deemed at home in all of them.â Id. at n.20. Accordingly, a contractual relationship between a nationwide franchisor and in-forum franchisee, standing alone, does not render the franchisor âat homeâ in the franchiseeâs state. Id. (stating that âat homeâ is not âsynonymous with âdoing businessââ); see, e.g., Pestmaster Franchise Network, Inc. v. Mata, No. 16-CV-07268-EMC, 2017 WL 1956927, at *3 (N.D. Cal. May 11, 2017) (finding a franchisor was not âat homeâ in the forum state where the franchisor had 44 franchisees nationwide and three in the forum state). To assess whether a defendantâs contacts are âcontinuous and systematic,â so as to render it at home in the forum, courts consider â(1) whether the corporation solicits business in the state through a local office or agentsâ or regularly âsends agents into the state to solicit business,â whether the corporation âholds itself out as doing business in the forum,â such as by advertising or bank accounts, and the âvolume of business conducted in the state . . . . â Trierweiler v. Croxton and Trench Holding Corp., 90 F.3d 1523, 1533 (10th Cir. 1996) (holding that the plaintiff had not established general jurisdiction where he did not allege facts related to these factors). Plaintiff neither alleges nor provides evidence of JITBâs contacts with New Mexico that support general jurisdiction. See id. (holding that the plaintiff had not established general jurisdiction where he did not allege facts related to the enumerated factors). Plaintiff certified that he served JITB through its registered agent in Delaware (Doc. 1-1 at 15), listed a Delaware address for JITB, and alleges that âJITB Corporateâ is located in San Diego. (Id. at 6, 19.) Rather than demonstrate JITB is âat homeâ in New Mexico, these allegations suggest that JITB is incorporated and has its principal place of business in Delaware or California, not in New Mexico. Moreover, the fact that JITB is a franchisor with at least one franchisee in New Mexico, without more, does not establish that JITB is âat homeâ in New Mexico. Cf. Duran v. Dominoâs Pizza, LLC, No. CV 08-0962 WPL/RHS, 2008 WL 11411185, at *4 (D.N.M. Dec. 29, 2008) (finding general jurisdiction over a franchisor where the plaintiff showed the defendant advertised, solicited franchises, had a registered agent, and contracted with at least 13 locations in Bernalillo County). â[B]ecause general jurisdiction is not related to the events giving rise to the suit,â Plaintiff must meet a âmore stringent minimum contacts testâ that requires him to âdemonstrate the defendantâs continuous and systematic general business contactsâ with New Mexico. OMI Holdings, Inc., 149 F.3d at 1091 (quoting Metropolitan Life Ins. Co. v. RobertsonâCeco Corp., 84 F.3d 560, 567 (2d Cir.1996)). Plaintiff has not met this heavy burden. I therefore find that the Court does not have general jurisdiction over JITB. 2. Specific Jurisdiction In contrast to general jurisdiction, â[s]pecific jurisdiction . . . is premised on something of a quid pro quo: in exchange for âbenefittingâ from some purposive conduct directed at the forum state, a party is deemed to consent to the exercise of jurisdiction for claims related to those contacts.â Dudnikov, 514 F.3d at 1078. To show that a court has specific jurisdiction over each claim, a plaintiff must show first, that the defendant ââpurposefully directedâ its activities at residents of the forum state, and second, that the plaintiffâs injuries . . . âarise out ofââ those purposefully directed activities. Id. at 1071. a. Plaintiffâs Claims Sounding in Tort7 Purposeful Direction In the context of alleged torts, the purposeful direction prong âhas three elements: (1) an intentional action; (2) expressly aimed at the forum state; and (3) with knowledge that the brunt of the injury would be felt in the forum state.â Dental Dynamics, LLC, 946 F.3d at 1231. The heart of this three-part testâknown as the Calder âEffects Testââis whether the defendant âexpressly aimed atâ the forum state. Eighteen Seventy, LP v. Jayson, 32 F.4th 956, 966 (2022) (citing Calder v. Jones, 465 U.S. 783 (1984)). The Effects Test examines the defendantâs intentions, i.e., âwhere was the âfocal pointâ of its purposive efforts.â Dudnikov, 514 F.3d at 1075. Personal jurisdiction over alleged tortfeasors does not exist merely because they acted knowing that a plaintiff resides in a certain state; instead, the defendants must have intended their conduct to have an effect in the forum state. Eighteen Seventy, LP, 32 F.4th at 969; Old Republic Ins. Co. v. Contâl Motors, Inc., 877 F.3d 895, 907 (10th Cir. 2017) (âPurposeful direction may also be establishedâeven in the absence of continuing relationships or market exploitationâwhen an out-of-state defendantâs intentional conduct targets and has substantial harmful effects in the forum state.â) In Calder, for example, the Court found the defendant purposefully directed its conduct at California because the plaintiff alleged â(a) an intentional action (writing, editing, and publishing 7 In his fourth claim, Plaintiff alleges violations of the NMUPA. The âgravamen of an unfair trade practice is a misleading, false, or deceptive statement made knowingly in connection with the sale of goods or services.â Diversey Corp. v. ChemâSource Corp., 1998âNMCAâ112, ¶ 17, 965 P.2d 332. A contract is not an essential element of an NMUPA claim. Stevenson v. Louis Dreyfus Corp., 1991-NMSC-051, ¶ 13, 811 P.2d 1308 (setting forth elements of NMUPA claims). Based on these principles, courts in this district have found that NMUPA claims are akin to tort claims. See, e.g., CEI Enterprises, Inc. v. Pro. Coating Techs., Inc., No. 1:21-CV-01212-MLG-LF, 2023 WL 8112695, at *4 (D.N.M. Nov. 22, 2023); Carl Kelley Constr. L.L.C. v. Danco Techs., 656 F. Supp. 2d 1323, 1339 (D.N.M. 2009) (stating that an NMUPA claim âis more like a tort claim than a contract claimâ); Guidance Endodontics, LLC v. Dentsply Intâl, Inc., 749 F. Supp. 2d 1235, 1276 (D.N.M. 2010). Given Plaintiffâs allegations that a JITB employee âwillfullyâ made false representations in âconnection with the delivery of services and goodsâ with intent to cause âharm, injury and damage toâ Plaintiff, I conclude his NMUPA claim is akin to a tort claim for purposes of the specific jurisdiction analysis. (Doc. 1-1 at 13.) [an] article), that was (b) expressly aimed atâ California where the âarticle was about a California resident and her activities in Californiaâ and âwas drawn from California sources and widely distributed in that state,â and (c) that the defendant knew âthe brunt of the injury would be felt inâ California because they âknew [the plaintiff] was in California and her career revolved around the entertainment industry there[].â Dudnikov, 514 F.3d at 1072 (summarizing Calder); Calder, 465 U.S. at 789â790. The Tenth Circuit applied Calder in Dudnikov. 514 F.3d at 1068. The Dudnikov plaintiffs had a business selling fabrics through eBay from their home in Colorado. Id. They alleged that, under an eBay program called âVerified Rights Owner (VeRo),â eBay âwill automatically terminate an ongoing auction when it receives a notice of claimed infringement (âNOCIâ) from a VeRO member stating, under penalty of perjury, that it has a good-faith belief that an item up for auction infringes its copyright.â Id. The plaintiffs further alleged that the defendants, knowing of the VeRO program, intentionally sent a NOCI to eBay in California âwith the intent of terminating plaintiffsâ auctionâthereby causing them lost business and a damaged business reputationâ in Colorado. Id. at 1073. The Tenth Circuit held that, like in Calder, the complaint alleged âfacts detailing what defendants did (sending the NOCI), what they knew would happen when they sent the NOCI (the cancellation of plaintiffsâ auction and its ramifications for plaintiffsâ business), and the basis for that knowledge (the specifics of the VeRO program and defendantsâ participation in that program).â Id. The Court further held that these facts, if true, established that the defendantsâ âexpress aim in acting was to halt a Colorado-based sale by a Colorado resident . . . . â Id. at 1076; see id. at 1075 (stating that the defendantsâ actions were âsomething like a bank shot in basketballâ during which a âplayer who shoots the ball off of the backboard intends to hit the backboard, but he does so in the service of his further intention of putting the ball into the basketâ). It concluded that the âpurposefully directedâ prong of the minimum contacts test was satisfied because the plaintiffs alleged that the defendants had intentionally acted, expressly aimed their actions at the forum state, and knew the brunt of their actions would be felt in the forum state. Id. at 1077â1078; see Old Republic Ins. Co., 877 F.3d at 908 (stating that the Dudnikov court âfound purposeful direction because the defendants had intentionally caused harm to the plaintiffsâ business in the forum stateâ). Here, Plaintiff alleges that he contacted JITB corporate offices several times in his attempts to assist the Dancel Franchise, which is located in New Mexico, with its technical issues. (Doc. 1- 1 at 7.) He further alleged that a JITB employee, together with the NSC employees, notified Field Nation that Plaintiff had âviolated Field Nationâs agreement to not work off the platformâ knowing Plaintiff âwould be permanently banned from theâ platform and denied âany future possibilities f[or] work not only from SCS/NSC and [JITB] but all the other vendors that used the Field Nation platform to send [him] work orders . . . . â (Doc. 1-1 at 7â8, 12.) I find these allegations sufficient to satisfy the Effects Test. Like in Calder and Dudnikov, Plaintiff alleges facts showing that JITB intentionally acted (contacting Field Nation) knowing what would happen (Plaintiff would be barred from future work on the Field Nation platform) and the basis for that knowledge (Plaintiffâs agreement with Field Nation). See Dudnikov, 514 F.3d at 1073; Calder, 465 U.S. at 789â790. These facts are sufficient to make a prima facie showing that JITB purposefully directed its activities at New Mexico. Arise Out Of The second personal jurisdiction inquiry is whether Plaintiffâs âinjuries âarise out ofâ defendantsâ contacts withâ New Mexico. Dudnikov, 514 F.3d at 1078. In a recent opinion, the Tenth Circuit stated, âWe have interpreted the âarise out ofâ language to requireâ a causal connection between the plaintiffâs claims and the defendantâs contacts with the forum and, âin this context, we have used âbut-for and proximate causation tests.ââ XMISSION, L.C., a Utah company, Plaintiff - Appellant, v. PUREHEALTH RESEARCH, a Virginia business entity, Defendant - Appellee., ___F.4th___, 2024 WL 3216478, at *8 (10th Cir. June 28, 2024) (quoting Dudnikov, 514 F.3d at 1079). Although the Court observed that âthere is reason to think a wholly causation- based framing of the âarise out of or relate toâ prong may be in tension with the Supreme Courtâs recent pronouncements on the specific-jurisdiction inquiry,â it nevertheless applied the but-for and proximate causation tests in that case. Id. at n.13 (citing Ford Motor Co. v. Montana Eighth Jud. Dist. Ct., 592 U.S. 351, 362 (2021), Bristol-Myers Squibb Co. v. Superior Ct. of California, San Francisco Cnty., 582 U.S. 255, 262 (2017), and Hood v. Am. Auto Care, LLC, 21 F.4th 1216, 1223 (10th Cir. 2021)); see also id. at *9. Under the âbut-forâ test, âany event in the causal chain leading to the plaintiffâs injury is sufficiently related to the claim to support the exercise of specific jurisdiction.â Dudnikov, 514 F.3d at 1078. The proximate causation âapproach, by contrast, is considerably more restrictive and calls for courts to âexamine[] whether any of the defendantâs contacts with the forum are relevant to the merits of the plaintiffâs claim.ââ Id. (quoting OâConnor v. Sandy Lane Hotel Co., 496 F.3d 312, 319 (3d Cir.2007)). Plaintiffâs allegations suffice under either test. Like in Dudnikov, JITBâs alleged notification to Field Nation was the âbut forâ cause âof the real[-]world harm that [Plaintiff seeks] to have remedied: the cancellation of [his contract with Field Nation] and the black mark on [his] record.â Dudnikov, 514 F.3d at 1079. Additionally, JITBâs contact with New Mexicoâthe intentional notification of Field Nation of Plaintiffâs efforts on behalf of the Dancel Franchise with knowledge that Plaintiff would be barred from the Field Nation platformâis the very conduct that allegedly injured Plaintiff. Id. (holding that the proximate causation test was met where the defendantâs communication to eBay was âat the very core of [the] plaintiffsâ suitâ). I conclude that Plaintiffâs allegations are sufficient to show that JITB purposefully directed its conduct at New Mexico and that Plaintiffâs alleged tort claims arise out of that conduct. Fair Play and Substantial Justice I also find that exercise of personal jurisdiction over JITB for Plaintiffâs tort claims does not âoffend traditional notions of fair play and substantial justice.â Dudnikov, 514 F.3d at 1080 (quoting Int'l Shoe Co., 326 U.S. at 316). This analysis assesses â(1) the burden on [JITB], (2) [New Mexicoâs] interest in resolving the dispute, (3) [Plaintiffâs] interest in receiving convenient and effective relief, (4) the interstate judicial systemâs interest in obtaining the most efficient resolution of controversies, and (5) the shared interest of the several states in furthering fundamental substantive social policies.â OMI Holdings, Inc., 149 F.3d at 1095. Because Plaintiff has alleged his claims arise out of JITBâs minimum contacts with New Mexico, JITB âmust present a compelling case that the presence of some other considerations would render jurisdiction unreasonable.â Burger King Corp., 471 U.S. at 477; Pro Axess, Inc. v. Orlux Distribution, Inc., 428 F.3d 1270, 1280 (10th Cir. 2005). JITB has not presented a compelling case against specific jurisdiction. In its Motion to Dismiss, JITB states that exercising jurisdiction over it would offend traditional notions of fair play and substantial justice but does not address why. (Doc. 34.) Further, JITB has not presented evidence or argument demonstrating an undue burden to it resulting from exercise of jurisdiction in New Mexico and New Mexico has a strong interest in resolving this dispute, as Plaintiff is a New Mexico citizen who alleges injury in this state. See Burger King Corp., 471 U.S. at 473 (âA State generally has a âmanifest interestâ in providing its residents with a convenient forum for redressing injuries inflicted by out-of-state actors.â (citation omitted)). Plaintiff is seeking compensatory damages for loss of income, among other things, and therefore has an interest in obtaining convenient and effective relief. Finally, the interstate judicial systemâs interest in obtaining an efficient resolution of controversies and the shared interest of the several states in furthering fundamental social policies appear to weigh neutrally. Because JITB has not met its burden on this issue and because I find that the factors do not weigh in JITBâs favor, I conclude that exercising specific personal jurisdiction over Plaintiffâs tort and NMUPA claims is consistent with fair play and substantial justice. b. Plaintiffâs Claims Sounding in Contract8 â[I]n contract cases,â the purposeful direction inquiry is âwhether the defendant âpurposefully availedâ itself of the privilege of conducting activities or consummating a transaction in the forum state.â Dudnikov, 514 F.3d at 1071. As in the general jurisdiction analysis, a âcontract with an out-of-state party alone can[not] automatically establish sufficient minimum contacts in the other partyâs home forum . . . . â Burger King Corp., 471 U.S. at 478; Dental Dynamics, LLC, 946 F.3d at 1230 (âAlthough contractual obligations may create sufficient ties to establish jurisdiction, an out-of-state residentâs contract with a resident of the forum state is insufficient, standing alone, to create personal jurisdiction.â). Instead, courts must consider the partiesâ âprior negotiations and contemplated future consequences, along with the terms of the contract and the partiesâ actual course of dealing . . . in determining whether the defendant purposefully established minimum contacts within the forum.â Burger King Corp., 471 U.S. at 479. This is a fact intensive analysis. Id. Viewed in the light most favorable to Plaintiff, the Complaint references contracts between (1) Plaintiff and Field Nation, (2) JITB and the Dancel Franchise, and (3) the Dancel Franchise 8 As discussed in more detail below, a claim for breach of the duty of good faith and fair dealing, which generally sounds in contract law, may sound in tort law under certain circumstances. However, Plaintiff has not shown those circumstances exist here. See Section III.D.2. and the NSC or Field Nation in the form of a âmaintenance contract.â (Doc. 1 at 6, 7.) It is not clear whether JITB, the NSC, or the Dancel Franchise also had contracts with Field Nation to use its platform to procure services by IT providers like Plaintiff. See id.; see also (Doc. 23-2 at 2). He does not allege facts showing a contract between him and JITB, nor about the negotiation of any agreements showing that JITB âcontemplated future consequencesâ in New Mexico, about the terms of such agreements, or JITBâs course of dealing with entities in New Mexico. See Burger King Corp., 471 U.S. at 479; Martin v. SGT, Inc., No. 2:19-CV-00289, 2020 WL 1930109, at *5 (D. Utah Apr. 21, 2020) (holding that the plaintiff had shown purposeful availment where he alleged facts about the negotiation of a license, travel into the forum state by the defendantâs representative, payments by defendant to the plaintiff in the forum state, and the length of the partiesâ relationship). Plaintiff therefore has not shown that JITB purposefully availed itself of the benefits of transacting business in New Mexico through contractual relationships with residents. Thus, to the extent this litigation arises from alleged breaches of such contracts, Plaintiffâs allegations are insufficient to support the exercise of specific personal jurisdiction. See, e.g., Pro Polish, LLC v. Abkarian, No. 23-CV-02470-NYW-SBP, 2024 WL 2701314, at *9â10 (D. Colo. May 24, 2024). The analysis of these claims is not quite complete because, âonce a district court has personal jurisdiction over a defendant for one claim, it may âpiggybackâ onto that claim other claims over which it lacks independent personal jurisdiction, provided that all the claims arise from the same facts as the claim over which it has proper personal jurisdiction.â United States v. Botefuhr, 309 F.3d 1263, 1272 (10th Cir. 2002). If the Court dismisses the so-called âanchor claims,â however, it generally must also dismiss the piggybacking claims, for they no longer have any claim on which to ride. Id. As explained below, I find that Plaintiffâs tort and NMUPA claims must be dismissed. Hence, even though the Court has personal jurisdiction over those claims, they cannot be anchor claims for Plaintiffâs contract claims against JITB even if all the claims arise from the same facts. Id. I therefore recommend the Court dismiss Plaintiffâs contract claims against JITB without prejudice for lack of personal jurisdiction. See Crocs, Inc. v. Effervescent, Inc., No. 06-CV-00605- PAB-KMT, 2021 WL 952215, at *4 (D. Colo. Mar. 11, 2021) (stating that âa claim can only anchor pendent jurisdiction if it is a live claim in the lawsuitâ). C. Plaintiffâs Claims Federal Rule of Civil Procedure 12(b)(6) authorizes courts to dismiss a complaint for âfailure to state a claim upon which relief can be granted.â Fed. R. Civ. P. 12(b)(6). In deciding a motion to dismiss under Rule 12(b)(6), courts must determine whether the plaintiffâs complaint âcontain[s] sufficient factual matter, accepted as true, to âstate a claim to relief that is plausible on its face.ââ Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 570). Courts must consider âthe complaint as a whole, along with the documents incorporated by reference into the complaint[,]â and construe all well-pled allegations âin the light most favorable to the plaintiff.â Nakkhumpun v. Taylor, 782 F.3d 1142, 1146 (10th Cir. 2015). âWell-pledâ means that allegations are âplausible, non-conclusory, and non-speculative . . . . â Dudnikov, 514 F.3d at 1070. âThreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.â Iqbal, 556 U.S. at 678. Indeed, courts âdisregard conclusory statements and look only to whether the remaining[] factual allegations plausibly suggest the defendant is liable.â Mocek v. City of Albuquerque, 813 F.3d 912, 921 (10th Cir. 2015) (quotation omitted). 1. Breach of Contract Claim (Claim 1) Plaintiffâs first claim is titled âBreach of Contract, Failure to Perform.â (Doc. 1-1 at 9.) Under New Mexico law, to prevail on such a claim, a plaintiff must show (1) the existence of a valid and binding contract and breach thereof; (2) the plaintiffâs compliance with the contract and performance of the obligations under it; (3) a general averment of the performance of any conditions precedent; and (4) damages suffered resulting from defendantâs breach. McCasland v. Prather, 1978-NMCA-098, ¶ 7, 585 P.2d 336; see Tyler Grp. Partners, LLC v. Madera, 564 F. Supp. 3d 944, 1002 (D.N.M. 2021). Plaintiff alleges that Defendants had âlegal obligation[s]â to (1) ârespond to the Plaintiffâs explanations and claims for justification for having done work separately from the Field Nation work portal,â (2) âconsider, respond and reinstate the Plaintiff to regular work status,â (3) âtreat the Plaintiff with respect, professionalism and to take into consideration the many years of compe[]tent, faithful serviceâ and (4) âunderstand their actions to collude, conspire and deprive the Plaintiff of any ongoing financial dealings with each of these separately and collectively was conspiracy and collusion.â (Doc. 1-1 at 9â10.) He also asserts that Defendants âdid not fulfil their oblig[]ations under agreement with Plaintiffâ and have, therefore, âcommitted a breach of contract.â (Id. at 10.) Plaintiff has failed to state a breach of contract claim against JITB and the NSC because he does not allege facts showing he had a contract with them setting forth the obligations he alleges were breached. In the Complaint, Plaintiff references a contract between Plaintiff and Field Nation, a âmaintenance service contractâ held by the Dancel Franchise,9 and a franchise agreement 9 It is not clear from the Complaint whether the parties to the âmaintenance service contractâ include, in addition to the Dancel Franchise, JITB, SCS, or the NSC. between the Dancel Franchise and JITB. (Doc. 1-1 at 5, 6.) But Plaintiff does not allege a binding written contract between him and JITB or facts showing formation of an oral contract through an offer, an acceptance, consideration, and mutual assent. Strausberg v. Laurel Healthcare Providers, LLC, 2013-NMSC-032, ¶ 42, 304 P.3d 409 (setting forth the requirements for contract formation). There is no evidence that any of the agreements referenced in the Complaint obligate JITB to Plaintiff. See (Doc. 1-1 at 5, 6.) As to the NSC, Plaintiff alleges facts suggesting he has had agreements with the NSC through which it âhad allowed and used Plaintiff on previous occasions with their knowledge away from and off the Field Nation portal to work with the Dancel [F]ranchise.â (Doc. 1-1 at 5.) But he does not allege a breach of those agreements and does not allege that he had formed a contract with the NSC to provide service to the Dancel Franchise in November 2018. Id. Even viewing the Complaint in Plaintiffâs favor, the only contract alleged to which Plaintiff is a party is the agreement with Field Nation.10 (Doc. 1-1 at 7.) It does not appear that JITB or the NSC are parties to that contract. See (Doc. 23-2.) Moreover, the record does not show Plaintiff served a copy of any contract with JITB or the NSC with the Complaint as required under the New Mexico civil procedure rules, and he did not respond to JITBâs or the NSCâs assertion in their Motions to Dismiss that no such contracts exist. (Docs. 1-1 at 3â15; 1-1 at 26; 39); New Mexico Rules of Civil Procedure 1-009(I) (âWhen any instrument of writing on which the action or defense is founded is referred to in the pleadings, the original or a copy of the instrument shall be served with the pleading, if within the power or control of the party wishing to use the same.â). Without 10 The agreement with Field Nation provides that âProvidersâ under that agreement are independent contractors âwho use[] the Platform to offer services and to perform work on specific projects for Buyers pursuant to Work Orders posted by Buyersâ and that each âWork Order constitutes a new contract between Buyer and Provider to perform work . . . . â (Doc. 23-2 at 2.) However, Plaintiff does not allege that he, as a Provider, was party to a Work Order with JITB or the NSC related to providing IT services to the Dancel Franchise. alleging a binding contract with them, Plaintiff cannot state a claim for breach of contract against JITB or the NSC. I recommend dismissing Claim 1. 2. Breach of the Duty of Good Faith and Fair Dealing Claim (Claim 2) Plaintiff alleges that Defendants breached the duty of good faith and fair dealing by âfailing to competently perform on the agreement with Plaintiff, . . . [and] remedy deficiencies in performing on the agreement . . . â and â[e]ngaging in unprofessional, abusive conduct designed to intimidate Plaintiff into acquiescing to Defendantsâ coercive bad faith efforts to remove and stop the Plaintiff from working with the Dancel [F]ranchise and on the Field Nation work platform.â (Doc. 1-1 at 10.) Although Plaintiff asserts that these âimplied/duties/terms were conditions for the contractual relationship between Plaintiff and Defendants,â he also asserts that Defendantsâ actions were âwillful, wanton, malicious, reckless, and [therefore] grossly negligent so as to warrant an additional award of punitive damages . . . . â (Id. at 11.) âWhether express or not, every contract imposes upon the parties a duty of good faith and fair dealing in its performance and enforcement.â Watson Truck & Supply Co. v. Males, 1990- NMSC-105, ¶ 12, 801 P.2d 639. This duty ârequires that neither party do anything that will injure the rights of the other to receive the benefit of their agreement. Denying a party its rights to those benefits will breach the duty of good faith implicit in the contract.â Bourgeous v. Horizon Healthcare Corp., 1994-NMSC-038, ¶ 16, 872 P.2d 852. â[A] cause of action for breach of the covenant of good faith and fair dealing sounds in contract.â Young v. Hartford Cas. Ins. Co., 503 F. Supp. 3d 1125, 1182 (D.N.M. 2020); see Bourgeous, 1994-NMSC-038, ¶ 16, 872 P.2d 852. However, âtort recovery for breach of the covenant of good faith and fair dealing is permissibleâ in certain limited circumstances, such as âwhere a special relationship exists . . . . â Young, 503 F. Supp. 3d at 1182â83 (a special relationship existed between an insurer and its insured); see Bourgeous, 1994-NMSC-038, ¶ 17, 872 P.2d 852; Heimann v. Kinder-Morgan CO2 Co., L.P., 2006-NMCA-127, ¶ 18, 144 P.3d 111. As discussed, Plaintiff has not alleged facts showing a contract with JITB or the NSC that expressly or implicitly includes the duty of good faith and fair dealing. Neither has he alleged facts showing a special relationship with them that would support recovery for tortious breach of the duty. Even if he had, such tort claims would be barred as untimely, as discussed below. Thus, Plaintiff has failed to plausibly state a breach of the duty of good faith and fair dealing claim sounding in contract or tort. I recommend dismissing Claim 2. 3. Negligent and/or Intentional Misrepresentation Claim (Claim 3) In his third count, Plaintiff alleges that âDefendants made false and misleading representations of fact about the Plaintiff, which were intended to be received by others, agents, or between the Defendants so as to cause undue hardship upon the Plaintiff and also cause others . . . to act in a willful, wanton, malicious, reckless and grossly vindictive and purposeful negligent manner to the detriment of the Plaintiff and his ability to conduct business as usual.â (Doc. 1-1 at 12.) He also alleges that âDefendants knowingly or recklessly made false representations of fact and/or omissions of fact to and about the Plaintiff with the intent to induce reliance and act upon those misrepresentations to cause Plaintiff to be perm[an]ently banned from the Field Nation work platform . . . . â (Id. at 12.) As to the alleged statements to the Plaintiff, he alleges that he delayed filing suit based on the Defendantsâ statements that their conduct was âlegal beyond the scope of any lawful remedyâ and that he later learned that âthe actions of the Defendant[]s were in fact unlawful . . . . â (Id. at 13.) New Mexicoâs three-year statute of limitations bars Plaintiffâs tort claims for negligent and intentional misrepresentation.11 See N.M. Stat. Ann. § 37-1-8 (stating that actions âfor an injury to the person or reputation of any person, [must be brought] within three yearsâ). To determine when a claim accrues, New Mexico applies the âdiscovery rule.â See Gerke v. Romero, 2010-NMCA- 060, ¶ 10, 237 P.3d 111 (collecting cases). Under that rule, the limitations period begins when the plaintiff âacquires knowledge of facts, conditions, or circumstances which would cause a reasonable person to make an inquiry leading to the discovery of the concealed cause of action.â Martinez v. Showa Denko, K.K., 1998-NMCA-111, ¶ 24, 964 P.2d 176 (quotation marks and citation omitted). âThe key consideration under the discovery rule is the factual, not the legal, basis for the cause of action. The action accrues when the plaintiff knows or should know the relevant facts, whether or not the plaintiff also knows that these facts are enough to establish a legal cause of action.â Coslett v. Third St. Grocery, 1994-NMCA-046, ¶ 24, 876 P.2d 656 (quoting Allen v. State, 118 Wash. 2d 752, 826 P.2d 200, 203 (1992)). In short, âthe time period begins to run when the [plaintiff] has knowledge of sufficient facts to constitute a cause of action,â regardless of whether the plaintiff knows of the full extent of injury or of the potential legal remedies. Gerke, 2010-NMCA-060, ¶ 10, 237 P.3d 111. Plaintiff alleges that he learned on November 14, 2018, that he âwould be banned permanently from [Field Nationâs] work platformâ because of JITB and the NSC employeesâ alleged misrepresentations about him to Field Nation. (Doc. 1-1 at 8.) This fact forms the basis for his claims. Thus, he had until November 14, 2021, to file his tort claims. However, apparently relying on New Mexicoâs four-year statute of limitations for contract claims, he filed the 11 âA federal court sitting in diversity applies state law for statute of limitations purposesâ and âstate law determines when an action is commenced . . . . â Burnham v. Humphrey Hosp. Reit Tr., Inc., 403 F.3d 709, 712 (10th Cir. 2005). Complaint on November 14, 2022. (Id. at 4 (referencing the statute of limitation for contract claims).) I therefore find that Plaintiffâs tort claims are barred because they were filed more than three years after Plaintiff was aware of their factual basis. That Plaintiff also alleges that Defendants misled him as to whether he had legal causes of action, and that he only later learned otherwise, does not change this analysis because Plaintiff knew the factual basis of his claims on November 14, 2018. See Coslett, 1994-NMCA-046, ¶ 24, 876 P.2d 656 (â[N]o New Mexico decision has suggested that ignorance of the governing law tolls the limitation period.â); (Doc. 1- 1 at 13 (alleging that he relied on statements by Defendants that their conduct was âbeyond the scope of any lawful remedyâ). I recommend the Court dismiss Claim 3.12 4. New Mexico Unfair Practices Act Claim (Claim 4) Plaintiff asserts that the Defendants violated the NMUPA by âcommunicat[ing] facts and ma[king] representations to the Plaintiff and other third parties . . . and between Defendants,â one or more of which âwere false when made . . . . â (Doc. 1-1 at 13.) Thus, Plaintiff alleges that Defendants made false statements about him to others and to him. As to the statements to him, he asserts that he âdid, in fact, rely on these false statements in connection with the decision to believe that such actions by Defendants were legal beyond the scope of any lawful remedyâ and that he 12 Plaintiff argues in his Response that, after this matter was removed to this Court, Plaintiff filed in state court a motion to amend his complaint to add a tort claim for âTortious Interference with a Business Relationship.â (Doc. 39 at 3.) However, this Court made clear to Plaintiff that, after the date of removal, all âdocuments filed in state court after removal are legal nullitiesâ and âhave no bearing on any part of the removed action.â (Doc. 31.) In a subsequent order, the Court advised him âthat it will not consider any pleadings filed in state court after removal when it rules on Defendantsâ motions. Rather, Plaintiff must file his responses to the motions in this Court if he wants the Court to consider them.â (Doc. 38 at 3.) Plaintiff never filed a motion to amend the complaint in this Court to add that claim. Moreover, even if the Court were to permit Plaintiff to amend his complaint to assert such a claim, such amendment would be futile because that claim would also be barred by the statute of limitations. See Printron, Inc. v. McGraw- Hill, Inc., 35 F. Supp. 2d 1325, 1327 (D.N.M. 1998) (holding that New Mexicoâs three-year limitation period applies to tort claims for interference with existing and prospective contract relations). later learned that âthe actions of the Defendant[]s were in fact unlawful . . . . â (Id.) Plaintiff contends that he suffered damages and was delayed in bringing his suit because of Defendantsâ false statements to him. (Id. at 13â14.) A claim under the NMUPA has four elements: the defendant (1) made a âfalse or misleadingâ representation (2) âin connection with the sale, lease, rental or loan of goods or servicesâ (3) that occurred in the regular course of trade or commerce, and (4) was of the type that âmay, tends to or does, deceive or mislead any person.â Stevenson v. Louis Dreyfus Corp., 1991- NMSC-051, ¶ 13, 811 P.2d 1308 (quotation marks and citation omitted). The NMUPA is a remedial consumer protection statute. Gandydancer, LLC v. Rock House CGM, LLC, 2019- NMSC-021, ¶ 24, 453 P.3d 434. âConsistent with its purpose as consumer protection legislation, . . . the UPA gives standing only to buyers of goods or services.â Santa Fe Custom Shutters & Doors, Inc. v. Home Depot U.S.A., Inc., 2005-NMCA-051, ¶ 17, 113 P.3d 347; see Gandydancer, 2019-NMSC-021, ¶¶ 29â36, 453 P.3d 434 (discussing cases construing the NMUPA). Here, Plaintiff alleges that he was a provider of IT services to the Dancel Franchise and other businesses, not a consumer. See (Docs. 1-1 at 7 (stating that Plaintiff was the âpreferred vendor for any IT service calls in the greater Albuquerque area . . . . â); cf. Doc. 23-2 at 2 (referring to Plaintiff as âProviderâ and the businesses posting jobs on the work platform as âBuyersâ). Plaintiff has not shown that, in relation to JITB and the NSC, he was a consumer of goods or services. Hence, Plaintiff does not have standing to assert a claim against JITB and the NSC under the NMUPA. See Hicks v. Eller, 2012-NMCA-061, ¶ 20, 280 P.3d 304 (only buyers of goods or services have standing to bring NMUPA claims). I recommend dismissing Claim 4. D. Type of Dismissal âDismissal of a pro se complaint for failure to state a claim is proper only where it is obvious that the plaintiff cannot prevail on the facts he has alleged and it would be futile to give him an opportunity to amend.â Perkins v. Kansas Depât of Corr., 165 F.3d 803, 806 (10th Cir. 1999); see Brereton v. Bountiful City Corp., 434 F.3d 1213, 1219 (10th Cir. 2006). Here, it would be futile to give Plaintiff an opportunity to amend his tort claims because such claims were time barred at the time he filed the Complaint in state court. In addition, although Plaintiff has had ample opportunity to seek to amend the Complaint in this Court, he has neither done so nor responded to JITBâs or the NSCâs assertions that they are not party to a contract with Plaintiff, suggesting there are no contracts. It would therefore be futile to grant Plaintiff leave to amend his Complaint to rectify these issues. Hence, I recommend dismissal of Plaintiffâs contract and tort claims (Claims 1, 2, and 3) with prejudice. Brereton, 434 F.3d at 1219 (âA dismissal with prejudice is appropriate where a complaint fails to state a claim under Rule 12(b)(6) and granting leave to amend would be futile.â). Although it would be similarly futile to amend Plaintiffâs NMUPA claim, I recommend dismissal of this claim (Claim 4) without prejudice because the Court lacks jurisdiction to rule on its merits. See id. (holding that dismissal for lack of standing should be without prejudice); Gandydancer, LLC, 2019-NMSC-021, ¶ 7, 453 P.3d 434 (stating that statutory standing under the NMUPA is a âjurisdictional prerequisite to an actionâ). IV. CONCLUSION I find that Plaintiff has not shown that JITBâs Motion to Dismiss was untimely. I further find that Plaintiff has not met his burden to show the Court has personal jurisdiction over JITB for his contract claims and therefore recommend that the Court GRANT JITBâs Motion to Dismiss and dismiss Plaintiff's contract claims against JITB without prejudice for lack of personal Jurisdiction. I find the Court has personal jurisdiction over Plaintiffâs tort and NMUPA claims against JITB, but that Plaintiff has not stated claims against JITB for breach of contract or breach of the duty of good faith and fair dealing, that his tort claims are barred by the New Mexico statute of limitations, and he lacks standing to bring an NMUPA claim against JITB. Therefore, even if the Court disagrees that it lacks personal jurisdiction over JITB as to Plaintiffs contract claims, I recommend the Court GRANT the Motion to Dismiss and dismiss Claims 1, 2, and 3 against JITB with prejudice and Claim 4 against JITB without prejudice. Furthermore, I find, for the same reasons stated above, that Plaintiff has not stated claims against the NSC and therefore recommend the Court GRANT NewBold Corporationâs Motion to Dismiss and dismiss Claims 1, 2, and 3 against the NSC with prejudice and Claim 4 against the NSC without prejudice. tila thal CUA. A_â KIRTAN KHALSA UNITED STATES MAGISTRATE JUDGE THE PARTIES ARE FURTHER NOTIFIED THAT WITHIN 14 DAYS OF SERVICE of a copy of these Proposed Findings and Recommended Disposition they may file written objections with the Clerk of the District Court pursuant to 28 U.S.C. § 636(b)(1). A party must file any objections with the Clerk of the District Court within the fourteen-day period if that party wants to have appellate review of the proposed findings and recommended disposition. If no objections are filed, no appellate review will be allowed. 29
Case Information
- Court
- D.N.M.
- Decision Date
- July 25, 2024
- Status
- Precedential