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LLC v. Fun Club USA, Inc.

United States District Court, D. Nevada

December 8, 2014

BTG180, LLC, et al., Plaintiff(s),
v.
FUN CLUB USA, INC., et al., Defendant(s)

For BTG180, LLC, Randall Jeffers, Plaintiffs: Mark R Smith, Law Offices of Mark R. Smith, P.C., Las Vegas, NV.

Fun Club USA, Inc., Defendant, Pro se, Port Orange, FL.

Robert Craddock, Defendant, Pro se, Port Orange, FL.

Sylvia Salgado Craddock, Defendant, Pro se, Port Orange, FL.

Theodore F. Zentner, Defendant, Pro se, Middleburg, FL.

ORDER

James C. Mahan, UNITED STATES DISTRICT JUDGE.

Presently before the court is defendant Theodore F. Zentner's (hereinafter " defendant") motion to dismiss plaintiff's first amended complaint. (Doc. # 45). Plaintiffs BTG180, LLC and Randall Jeffers (hereinafter " plaintiffs") filed a response. (Doc. # 49). Defendant did not file a reply and the deadline to reply has now passed.

I. Background

Plaintiff BTG180, LLC (" BTG180") is a Nevada network marketing company. (Doc. # 27). Plaintiff Randall Jeffers is the founder and CEO of BTG180. (Doc. # 27). Defendant Fun Club USA, Inc. (" Fun Club") is a Florida corporation owned by defendants Robert and Sylvia Craddock. (Doc. # 27). Defendant Zentner is a business associate of Robert and Sylvia Craddock. (Doc. # 27). All individual defendants reside in Florida. (Doc. # 27).

On or about August 12, 2013, BTG180 entered into a contract with Robert Craddock (" Craddock") and Fun Club. (Doc. # 27). Craddock and Fun Club agreed to perform marketing services for BTG180, and the parties drafted an unsigned written contract. (Doc. # 27).

In reliance on the terms of the writing, BTG180 paid Craddock and Fun Club $50, 000 for their services. (Doc. # 27). Craddock and Fun Club thereafter failed to perform the marketing services and began contacting BTG180 affiliates with false information. (Doc. # 27). On or about December 11, 2013, defendants set up a website called BTGlegal.com, on which they stated false information about BTG180 and its owners. (Doc. # 27).

Through their emails and website, defendants accused plaintiffs of perpetrating a Ponzi scheme, stated that plaintiffs were under investigation, alleged that plaintiffs had criminal records, and accused them of perpetrating fraud. (Doc. # 49). Defendants asked plaintiffs' affiliates for donations to support legal action against plaintiffs. The website referenced defendant Zentner as a contact person and attorney affiliated with the case. (Doc. # 49).

On February 5, 2014, plaintiffs filed the instant action asserting claims for cybersquatting, trademark infringement, wrongful use of computer, misappropriation, wrongful interference with economic relations, breach of contract, unjust enrichment, defamation, and alter ego. (Doc. # 1). On July 3, 2014, plaintiffs filed their first amended complaint, adding defendant Zentner as a party. (Doc. # 27).

Defendant now moves to dismiss plaintiff's first amended complaint for improper venue pursuant to Federal Rule of Civil Procedure 12(b)(3) and ...


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