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Millennium Square Residential Association v. 2200 M Street LLC

Citations: 952 F. Supp. 2d 234; 2013 WL 3462573; 2013 U.S. Dist. LEXIS 96327Docket: Civil Action No. 2011-1632

Court: District Court, District of Columbia; July 10, 2013; Federal District Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves a condominium association, MSRA, which filed a lawsuit against the developer, 2200 M Street LLC, and associated entities and individuals over maintenance and repair issues concerning the parking garage of the Millennium Square Condominium. The primary legal issues include claims of negligence, breach of contract, and breach of fiduciary duty, alongside counterclaims of breach of contract and unjust enrichment. The court granted motions to dismiss claims against Millennium Washington Commercial Trust and Millennium Square Commercial Association due to their lack of capacity to be sued. However, it denied motions to dismiss negligence and fiduciary duty claims against the individual defendants and allowed the breach of contract claims to proceed. The unjust enrichment counterclaim was dismissed due to existing contracts. The court's decisions were guided by principles such as Rule 12(b)(6), economic loss doctrine, and the legal capacity of entities to sue, ultimately allowing several claims to proceed while dismissing others based on legal insufficiencies.

Legal Issues Addressed

Breach of Fiduciary Duty

Application: The court finds sufficient allegations against the Individual Defendants for breach of fiduciary duty, allowing the claim to proceed.

Reasoning: However, the complaint presents sufficient allegations to establish a breach of fiduciary duty outside the business judgment rule, asserting that the Individual Defendants acted in bad faith out of self-interest related to their employment with the Millennium Defendants.

Economic Loss Doctrine

Application: The court allows tort claims to proceed by finding allegations of personal injury and property damage beyond contractual losses.

Reasoning: However, the court finds that the Complaint also alleges damage to vehicles, personal injuries within the Parking Unit, and diminished marketability of residential units—issues not confined to the 'product' category—thus allowing Counts Five and Six to proceed.

Legal Capacity of Entities to Sue

Application: Millennium Trust and MSCA's motions to dismiss were granted based on their lack of legal capacity to be sued under D.C. law.

Reasoning: Millennium Trust seeks to dismiss the claims against it, asserting that it is not a legal entity capable of being sued in the District of Columbia.

Rule 12(b)(6) Motion to Dismiss

Application: The court evaluates whether the complaint contains enough factual matter to establish a plausible claim for relief, dismissing claims that fail to meet this standard.

Reasoning: A complaint may be dismissed under Rule 12(b)(6) if it fails to state a claim upon which relief can be granted.

Unjust Enrichment

Application: The court dismisses the unjust enrichment counterclaim due to the presence of an express contract governing the relationship between the parties.

Reasoning: The existence of at least two agreements between the parties negates the possibility of an unjust enrichment claim, leading to its dismissal.