Gordon & Rees Denver partner John Palmeri, partner Heather Kelly, and associate Megan Rose, recently secured dismissal of fraud and conspiracy claims arising out of a telecommunications dispute where the plaintiff alleged defendants had defrauded it out of $12.5 million.
The plaintiff, a national telecommunications company, filed a complaint in the United States District Court for the District of Colorado against three defendants alleging violations of the Telecommunications Act of 1934 and pendant claims of fraud, conspiracy, breach of contract, and unjust enrichment. The plaintiff alleged the defendants had misrepresented billing based on telephone services to the plaintiff and were paid $12.5 million that they were not owed.
Gordon & Rees’s client's principal place of business is in Washington, D.C., and had limited contacts in Colorado. In a lengthy opinion, the District Court granted the Motion to Dismiss for lack of personal jurisdiction finding that the plaintiff had not sufficiently alleged minimum contacts to subject the client to jurisdiction in Colorado.
Facing a motion for attorney fees, the plaintiff stipulated to a dismissal with prejudice.