AUSTIN
v.
METRO DEVELOPMENT GROUP, LLC

M.D. Fla. | 2020-09-16
No. 8:20-cv-1472
District Court, M.D. Florida (2020)

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Holding

The court held that the plaintiff lacked standing to bring a claim for fraudulent filing of information returns because the 1099 forms indicated the income was paid to an LLC, not to her individually. The court granted dismissal of this count with leave to amend.


Facts & Procedural History

Plaintiff Jen Austin sued Metro Development Group, LLC and John Ryan, alleging she was improperly classified as an independent contractor and that fra…

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Opinion of the Court

1307-Orl-40TBS, 2017 WL 819919, at *4 (M.D. Fla. Mar.2, 2017). Although Plaintiff may have individual standing if she were the sole member of the LLC, this is certainly not ascertainable from the face of the complaint. Furthermore, the 1099 forms show that multiple entities – none of which are Metro or Ryan – issued the 1099 forms. Although Plaintiff alleges that Defendants “control” a number of closely related entities, she does not sufficiently identify these entities or describe their relationship to either Metro or Ryan. The bare allegations of the complaint are insufficient to impose any type of liability upon Defendants. See, e.g., Brown v. Family Dollar Corp., No. 6:17-cv-1521-Orl-40KRS, 2018 WL 2215222, at *2 (M.D. Fla. May 15, 2018) (dismissing claims against parent company where plaintiff only alleged ownership and control with no additional facts to establish that the subsidiary was a mere instrumentality or alter ego of the parent company); Garcia v. Kashi Co., 43 F. Supp. 3d 1359, 1394-95 (S.D. Fla. 2014) (same). Consequently, Count I is due to be dismissed. The Court will grant Plaintiff the opportunity to file an amended complaint to cure these deficiencies. Because the Court is dismissing Count I with leave to amend, it does not reach Defendants’ arguments as to Counts II, III, IV, V, or VI. The motion is therefore denied without prejudice as to these grounds, and Defendants may raise these arguments again should Plaintiff file an amended complaint that confers jurisdiction upon this Court. It is therefore ORDERED, ADJUDGED, and DECREED: 1. “Defendants’ Motion to Dismiss Complaint” (Doc. 10) is hereby GRANTED IN PART and DENIED IN PART.

2. The motion is GRANTED as to Count I.

3. Because the Court is dismissing Count I with leave to amend, it does not reach Defendants’ arguments as to Counts II, III, IV, V, or VI. The motion is therefore DENIED WITHOUT PREJUDICE as to these grounds. 4. Plaintiff directed to file an amended complaint on or before September 30, 2020. DONE and ORDERED in Chambers, in Tampa, Florida, this 16th day of September, 2020.

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Footnotes
2 The Court “may consider a document attached to a motion to dismiss . . . if the attached document is (1) central to the plaintiff's claim and (2) undisputed.” Day v. Taylor, 400 F. 3d 1272, 1276 (11th Cir. 2005) (citing Horsley v. Feldt, 304 F. 3d 1125, 1134 (11th Cir. 2002)). Further, federal courts regularly take judicial notice of government documents at the motion to dismiss stage. See, e.g., Smith v. Atl. Beach, No. 3:18-cv-1459-J-34MCR, 2020 WL 708145, at *1 (M.D. Fla. Feb. 12, 2020). Where there is a contradiction between the exhibits and the pleadings, the exhibits govern. See Griffin Indus., Inc. v. Irvin, 496 F. 3d 1189, 1206 (11th Cir. 2007). Each of the 1099 forms list the same tax identification number for the recipient of the 1099 – that tax identification number belongs to “AustinMarketing LLC.” As such, it is the LLC that was injured by any fraudulent tax forms rather than Plaintiff as an individual. In a strikingly similar case, the district court found that the plaintiff as an individual lacked standing and dismissed the complaint without prejudice so that plaintiff could either provide sufficient allegations or substitute in the proper party. See Vazquez v. Joseph Cory Holdings, LLC, 6:16-cv-

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