Opinion
Civil Action No. 13-cv-01769-REB-MJW
01-22-2014
HEALTHCARE VENTURES, LLC, NEXUS OUTSOURCE GROUP, LLC, and ARI KRAUSZ, Plaintiffs, v. ALEXANDER ORNSTEIN, and SILVER LEAF CONSULTING, INC., Defendants.
Judge Robert E. Blackburn
ORDER OVERRULING OBJECTION TO AND ADOPTING
RECOMMENDATION OF UNITED STATES MAGISTRATE JUDGE
Blackburn, J.
The matters before me are (1) the magistrate judge's Recommendation on Defendants' Motion To Dismiss for Lack of Personal Jurisdiction and Improper Venue (Docket No. 9) [#17], filed November 7, 2013; and (2) plaintiffs' Objection to [Docket No. 17] Recommendation of United States Magistrate Judge on Defendants' Motion To Dismiss for Lack of Personal Jurisdiction and Improper Venue [#18], filed November 21, 2013. I overrule the objection, adopt the recommendation, and grant defendants' motion to dismiss for lack of personal jurisdiction.
"[#17]" is an example of the convention I use to identify the docket number assigned to a specific paper by the court's electronic case filing and management system (CM/ECF). I use this convention throughout this order.
As required by 28 U.S.C. § 636(b), I have reviewed de novo all portions of the recommendation to which objections have been filed. Thus, I have considered carefully the recommendation, objections, and applicable caselaw. The recommendation is detailed and well-reasoned. I concur with the magistrate judge's conclusion that defendants' contacts with this forum are based on nothing more than the mere fortuity that plaintiffs are located here. See Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475, 105 S.Ct. 2174, 2183, 85 L.Ed.2d 528 (1985). I specifically reject plaintiffs' assertion that Mr. Ornstein's acceptance of a directorship in a Colorado limited liability company is per se sufficient to confer personal jurisdiction over him in this forum. The Supreme Court has specifically rejected such an argument. Shaffer v. Heitner, 433 U.S. 186, 216, 97 S.Ct. 2569, 2586, 53 L.Ed.2d 683 (1977). See also Schmitz v. Xiqing Diao, 2013 WL 5965882 at *9-10 (D. Wyo. Nov. 7, 2013).
Thus, I find and conclude that the arguments advanced, authorities cited, and findings of fact, conclusions of law, and recommendation proposed by the magistrate judge should be approved and adopted.
THEREFORE, IT IS ORDERED as follows:
1. That magistrate judge's Recommendation on Defendants' Motion To Dismiss for Lack of Personal Jurisdiction and Improper Venue (Docket No. 9) [#17], filed November 7, 2013, is APPROVED AND ADOPTED as an order of this court;
2. That the objections stated in plaintiffs' Objection to [Docket No. 17] Recommendation of United States Magistrate Judge on Defendants' Motion To Dismiss for Lack of Personal Jurisdiction and Improper Venue [#18], filed November 21, 2013, are OVERRULED;
3. That Defendants' Motion To Dismiss for Lack of Personal Jurisdiction and for Improper Venue [#9], filed August 26, 2013, is GRANTED IN PART and DENIED IN PART as moot as follows;
a. That the motion is GRANTED to the extent it seeks dismissal on the ground of lack of personal jurisdiction over defendants in this forum; and
b. That in all other respects, the motion is DENIED AS MOOT;
4. That plaintiffs' claims in this lawsuit are DISMISSED WITHOUT PREJUDICE;
5. That judgment without prejudice SHALL ENTER on behalf of defendants, Alexander Ornstein and Silver Leaf Consulting, Inc., a New York corporation, against plaintiffs, Healthcare Ventures, LLC, a Colorado limited liability company; Nexus Outsource Group, LLC, a Colorado limited liability company; and Ari Krausz, as to all claims and causes of action asserted herein; and
6. That all pretrial deadlines, the Trial Preparation Conference set October 3, 2014, at 3:30 p.m., and the bench trial set to commence on October 6, 2014, are VACATED.
Dated January 22, 2014, at Denver, Colorado.
BY THE COURT:
___________________
Robert E. Blackburn
United States District Judge