IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Case Number: 15-CV-01210-RM-NYW
MY24HOURNEWS.COM, INC.,
a Colorado corporation
Plaintiff,
v.
AT&T CORP.,
a New York corporation
Defendant.
MOTION TO ALTER OR AMEND JUDGMENT BY TRANSFERRING CASE
My24HourNews.com, Inc., Plaintiff in the above-captioned case (“Plaintiff”), for its
Motion to Transfer Case pursuant to Federal Rule of Civil Procedure 59 (e) and 28 U.S.C.
§1631, (“Motion”), respectfully submits the following:
CONFERRAL
Plaintiff’s counsel has conferred with Defendant’s counsel, who advises Plaintiff’s
counsel that that Defendant AT&T Corp (“Defendant”) will oppose this Motion on at least the
ground that a transfer is not warranted under the facts of this case.
I. SUMMARY OF MOTION
Plaintiff requests that this Court transfer this case to the United States District Court for
the Northern District of Georgia, pursuant to Federal Rule of Civil Procedure (“Fed.R.Civ.P.”)
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59(e) and 28 U.S.C. §1631. Plaintiff shows below that this Motion meets the requirements under
Rule 59 (e) and 28 U.S.C. § 1631, based upon the Court’s determinations in its July 21, 2016
Opinion & Order (“Opinion & Order”) (ECF 115) for amending the Court’s judgment from
dismissal of this case without prejudice and case closed dismissing without prejudice and
transferring this case to the United States District Court for the Northern District of Georgia, in
the interest of justice.
II. BACKGROUND FACTS
In Magistrate Judge Wang’s Recommendation and Report filed April 11, 2016 (ECF 91)
(“R&R”), Magistrate Judge Wang found that specific personal jurisdiction existed over
Defendant in light of Plaintiff’s allegations that Plaintiff and Defendant were members of a joint
venture, and, during the course of a joint venture, Defendant agreed to Plaintiff’s temporary
relocation of its broadcast studio to Denver, Colorado. Moreover, Magistrate Judge Wang found
that Defendants agreed to Plaintiff’s use of the studio facilities as an off-hour facility and a back-
up facility (ECF 91 at 24-25.) Magistrate Judge Wang also found that, assuming the truth of the
alleged joint venture between the parties, Defendant had purposely availed itself of conducting
activities in Colorado (ECF 91 at 26.) Magistrate Judge Wang further found that this litigation
resulted from alleged injuries that arose from Defendant’s Colorado activities or the claims in
this case arose out of the activities of Defendant in Colorado. (Id).
Defendant objected to these findings asserting Judge Wang failed to address or analyze
whether Plaintiff’s claims arose out of Defendant’s alleged conduct in Colorado (ECF 95 at 2-3),
and if such analysis were performed, none of Plaintiff’s claims arose out of Defendant’s
Colorado contacts. (Id. at 4-6).
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In its de novo review of the R&R, this Court decided in its Opinion & Order that
Plaintiff’s claims (1) and (4) alleging Defendant’s breach of fiduciary duties related to two
separate joint ventures agreements, claims (2) and (5) promissory estoppel based upon
Defendant’s failure to follow through on promises made in relation to two separate joint venture
agreements (claim (3) and (6), Plaintiff’s reliance on the alleged false representation made by
Defendant (claim 7), and Defendant’s concealment of material facts related to two separate joint
venture (claim 8), Defendant’s breach of a contract (claim 9), Defendant’s alleged
misappropriation Plaintiff’s ideas (claim 10), and Defendant’s alleged negligent
misrepresentations (claim 14) did not arise out of Defendant’s alleged contacts in Colorado.(ECF
115 at 5.) The Court noted that the injuries underlying these claims pertain to representations, or
the lack thereof, related to two joint venture agreements that Plaintiff and Defendant and were
made or concealed during the parties meeting in Atlanta, Georgia (ECF 115 at 7) where Plaintiff
resided at the time. Significantly, Atlanta is located in the Northern District of Georgia.
Accordingly,, the Court granted Defendant’s motion to dismiss these claims without prejudice
and closed the case.
With respect to Plaintiff’s claim for Defendant’s alleged misappropriation of Plaintiff’s
ideas (claim 10), theft of trade secrets (claim 11) and conversion and unjust enrichment arising
from Plaintiff’s Broadcast Platform and Plaintiff’s intellectual property (claims 12 and 13),
which are all torts, the Court applied a different analysis, from which the Court concluded that
the injury underlying these claims, unlike the claims described above, did not arise from any
alleged promises, representations, or concealed facts the parties meeting in Atlanta, but from
Defendant’s taking of Plaintiff’s alleged ideas intellectual property and misappropriating,
stealing or converting them for Defendant’s own purposes. The Court found and concluded that
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these claims did not arise from Defendant’s purposeful direction of any contacts in Colorado
(ECF 115 at 9- 12).
In doing so, the Court noted that, to the extent such conduct alleged in the above
referenced claims occurred, the focal point was either wherever it was that Defendant decided to
misappropriate, convert or steal others’ intellectual property, or where Defendant believed
Plaintiff to be located at the time of the tortious conduct (ECF 115 at 11.) The Court found that
Plaintiff’s injuries arising from these claims did not occur in Denver. The facts of record show,
however, that Defendant knew that Plaintiff was located in Atlanta at the time of the tortious
conduct described above. To be sure, Defendant had even argued to the Court in its Motion to
Dismiss that the significant events occurring in this case, including the alleged
misrepresentations and/or concealment, took place in Atlanta (See, Defendant’s Motion to
Dismiss (ECF 46 at pp. 13-14, 16)). Like the Court’s ruling with respect to all claims other than
claims 11, 12 and 13, the Court granted Defendant’s Motion to Dismiss claims 11, 12 and 13
without prejudice and to close this case.
III. ARGUMENT
Rule 59 (e) provides:
Motion to Alter or Amend a Judgment. A motion to alter or amend a judgment
must be filed no later than 28 days after the entry of the judgment.
Plaintiff meets the requirement of this Rule because its Motion is timely filed and it is
requesting the Court to amend its judgment from a dismissal without prejudice and case closed
to, pursuant to 28 U.S.C. §1631, to dismissal without prejudice and to transfer of this case to the
Northern District of Georgia. The Court has the authority under Rule 59 (e) to transfer this case
to the Northern District of Georgia if Plaintiff meets requirements of this statute. As Plaintiff
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demonstrates below, Plaintiff meets the requirements of 28 U.S.C. §1631 because the Northern
District of Georgia has jurisdiction over both the Parties and Plaintiff’s claims.
A. 28 U.S.C. §1631, captioned “Transfer to cure want of jurisdiction,” gives this Court
Authority in the exercise of its discretion to Transfer this Case to the Northern District
of Georgia.
Plaintiff requests the Court exercise discretion and transfer this case pursuant to 28
U.S.C. §1631 to the Northern District of Georgia where Atlanta is located in light of the fact that
most, if not all, of the events that underlie Plaintiff’s claims occurred in that jurisdiction and that
District Court in Atlanta has jurisdiction over both Plaintiff and Defendant.
The Court’s dismissal Plaintiff’s claim for lack of jurisdiction over Defendant affords
Plaintiff two options. First, Plaintiff can refile its Complaint against Defendant in the Northern
District of Georgia but will incur new filing fees and other expenses by starting over in
prosecuting its claims in that District Court. Second, Plaintiff can request the Court to amend its
judgment under Rule 59(e) of dismissal without prejudice and case closed and to exercise its
discretion and dismiss without prejudice and to transfer this case to the Northern District of
Georgia, pursuant to 28 U.S.C. §1631, in order to cure the lack of personal jurisdiction in this
Court. Plaintiff has selected this option because as 28 U.S.C. §1631 states, Plaintiff’s complaint
would proceed as if it had been filed in the Northern District of George on the date Plaintiff filed
its FAC here.
28 U.S.C. §1631 provides:
Whenever a civil action is filed in a court as defined in section 610 of this title [28
USCS § 610] or an appeal, including a petition for review of administrative
action, is noticed for or filed with such a court and that court finds that there is a
want of jurisdiction, the court shall, if it is in the interest of justice, transfer such
action or appeal to any other such court in which the action or appeal could have
been brought at the time it was filed or noticed, and the action or appeal shall
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proceed as if it had been filed in or noticed for the court to which it is transferred
on the date upon which it was actually filed in or noticed for the court from which
it is transferred.
This statute gives authority to a federal court that determines that it lacks jurisdiction over
a civil action by stating that the court shall, if it is in the interest of justice, transfer such action to
any other court in which the action could have been brought at the time it was filed or noticed. In
Grynberg v. Ivenhoe Enegy, Inc., 490 Fed. Appx. 86, (10th Cir. 2012,) the United States Court for
the Tenth Circuit set forth the factors this Court must follow before deciding whether to transfer
this case to another District Court. First, this Court must assure itself that the proposed transferee
court has personal jurisdiction over the parties. If the Court finds that the Northern District of
Georgia has such jurisdiction, even though 28 U.S.C. §1631 contains the word “shall,” and the
phrase “if it is in the interest of justice,” this Court has discretion in making a decision whether
to transfer this case. The factors related to the interest of justice include whether the Plaintiff’s
claims would be time-barred if filed a new in the proper forum, whether Plaintiff’s claims as
alleged are likely to have merit, and whether the claims were filed in good faith or if it was clear
at the time Plaintiff’s filing of its complaint that this Court lacked the requisite jurisdiction. The
Court must also consider judicial economy and prejudice to Defendant in determining whether to
transfer this case. The Court must also balance these factors. Grynberg, 490 Fed. Appx. at 109.
B. The Northern District of Georgia has Personal Jurisdiction over Plaintiff and
Defendant in this Case
This Court stated that the Court may exercise specific personal jurisdiction over a
defendant consistent with the Due Process Clause of the U.S. Constitution if a plaintiff shows
that “(1) the defendant has purposefully availed itself of the privilege of conducting activities or
consummating a transaction in the forum state, and (2) the litigation results from alleged injuries
that arise out of or relate to those activities.” (ECF 115 at 4). Emp’rs Mut. Cas. Co. v. Bartile
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Roofs, Inc., 618 F.3d 1153, 1160 (10th Cir. 2010) (quotations, internal quotation, and citations
omitted). This Court also noted that purposeful availment, however, does not mean the same
thing with respect to all claims. The Court stated that, for tort claims, the test to determine
whether Plaintiff’s claims against Defendant establish jurisdiction, “(a) an intentional action that
was (b) expressly aimed at the forum state with (c) knowledge that the brunt of the injury would
be felt in the forum state.” Newsome v. Gallacher, 722 F.3d 1257, 1264-65 (10th Cir. 2013)
(ellipses and quotation omitted), and “[i]n order to assess whether minimum contacts occurred in
a contract case, we look at prior negotiations and contemplated future consequences, along with
the terms of the contract and the parties’ actual course of dealing;” citing AST Sports Sci., Inc. v.
CLF Distribution Ltd., 514 F.3d 1054, 1058 (10th Cir. 2008) (quotation omitted). Plaintiff
demonstrates immediately below why the Northern District of Georgia has jurisdiction over this
case.
1. AT&T purposely availed itself of the privilege of conducting activities in Atlanta
located in the Northern District of Georgia, and the injuries to Plaintiff occurred in
that District Court.
As this Court stated in its Opinion & Order, the Court adopted Magistrate Judge Wang’s
findings in R&R. (ECF 115 at 2). The Court went on to hold that the address the injuries
underlying Plaintiff’s claims pertain to representations, or the lack thereof, related to two joint
venture agreements that Plaintiff and Defendant made during the parties meeting in Atlanta,
Georgia on May 31 and June 1, 2012. (ECF 115 at 7). As stated above, Atlanta is located in the
Northern District of Georgia.
Moreover, the Court found that Plaintiff made it abundantly clear in its First Amended
Complaint (“FAC”), that the joint ventures were agreed to in Atlanta. (ECF 23 at. ¶ ¶ 25, 64-68).
Likewise, the Court found, by adopting Magistrate Judge Wang’s findings, that Plaintiff was
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incorporated in Georgia at the time the events that underlie Plaintiff’s claims, and did not
incorporate in Colorado until September 3 2014. (ECF 115 at 2; ECF 9 at 10). Magistrate Judge
Wang also found that My24 was a Georgia corporation when it negotiated the master agreement
and amended Master agreement in which both agreements identified My24’s headquarters as
Atlanta. (ECF 91 at 4, 10, 23; R&R at 4, 10 and 23). Additionally, Plaintiff and Defendant
negotiated the proposed Town Hall meeting in Atlanta. (ECF 91 at 5; ECF 46 at 116-11), and
both sought to establish a studio in Atlanta, but due environmental conditions among others,
Plaintiff was not able to do so. (ECF 91 at 8). Thus, Plaintiff was a Georgia corporation at all
times relevant to Plaintiff’s claims which arose in 2012, and the events that underlie to Plaintiff’s
claims arose in Atlanta. Consequently, the record shows that Defendant purposely availed itself
of conducting activities or consummating transactions in Atlanta, Georgia, and the injuries
alleged from Defendant’s contract arise out of or relate to Defendant’s actions in Atlanta,
Georgia.
Plaintiff submits that, based on the facts, the Northern District of Georgia has specific
jurisdiction over Plaintiff and its claims for breach of contract, that is, the joint venture
agreements because Defendant purposely availed itself of the privilege of conducting activities
with Plaintiff in Atlanta, Georgia, and that the litigation results from injuries Plaintiff allegedly
sustained arising out of or related to Defendant’s activities in Atlanta, Georgia.
2. AT&T purposely directed its activities which were aimed at Georgia.
For its tort claims alleged against Defendant, Plaintiff must show defendant (a) engaged
in an intentional action (b) that was expressly aimed at Georgia (c) with the knowledge that the
brunt of the injury would be felt in Georgia. (ECF 115 at 4, 10).
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Defendant intentionally built the Broadcast Platform pursuant to the Network
Agreements (“Agreements”) which My24 signed in Atlanta where it was located in August 2012.
These Agreements call for AT&T to deliver the Broadcast Platform for use by the joint ventures
in the Parties plans for use in presidential debates and in the political context, that is, in the time
period after the Republican and Democratic conventions such as Debates/Town Hall meetings
(ECF 91 at 4; R&R at 4). The launch of the Broadcast Platform was originally intended be made
from My24’s proposed Atlanta studio because the Parties wanted the joint venture to be located
in Atlanta (ECF 91 at 8; R&R at 5).
Second, as just noted, the launch of My24’s Broadcast platform was originally to be
made from My24’s Atlanta studios. Thus, Defendant’s, actions in making the launch were
expressly aimed at Atlanta where the launch of the Broadcast Platform from My24 studios was
to have occurred. (ECF 46 at ¶¶ 87-94). Indeed, this Court held that to the extent Defendant
engaged in the conduct alleged in the FAC, its focal point was either wherever it is that
Defendant decided to misappropriate, convert or steal others’ intellectual property or where
Defendant believed Plaintiff to be located at the time of the tortious conduct. (ECF 115 at
11). Here, Defendant knew that Plaintiff was located in Atlanta, Georgia in December 2012 at
the time Defendant decided not to go forward with the joint ventures based on the factual events
described by Magistrate Judge Wang and her R&R. (EFC 91 at 2-10; R&R 2-10), AT&T also
began holding Plaintiff’s Broadcast Platform hostage for the invoices which Defendants sent
Plaintiff for payment in Atlanta.
Finally, Defendant reneged on the planned use of the Broadcast Platform, knowing that
the brunt of the injuries to My24 would be felt in Atlanta, where Plaintiff had planned to move
back after the use of a studio proposed for backup in Denver. (ECF 115 at 5; and ECF 91 at 9).
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As noted above, the focal point of Defendant’s conduct in this regard was either wherever it was
that Defendant decided to misappropriate, convert or steal others’ intellectual property, or where
Defendant believed Plaintiff to be located at the time of Defendant’s conduct. As this Court
held in its Opinion & Order, while Plaintiff’s injuries underlying its claims did not arise from
any alleged, promises, presentations or concealed facts from the parties meeting in Atlanta but
from Defendant’s taking Plaintiff’s alleged ideas and intellectual property and/or converting
them for Defendant’s own ends (ECF 115 at 11), Plaintiff submits that the record is clear that
Defendant knew Plaintiff was located in Atlanta. (ECF 115 at 7). Moreover, Defendant never
asserted that it did not know where Plaintiff was located at the time it decided not to go forward
with the joint ventures in 2012. In fact, Defendant argued just the opposite to this Court in its
Motion to Dismiss. See Defendant’s Motion to Dismiss. (ECF 46 at 5, 7).
Plaintiff submits that it has met the three-part test by showing above that Defendant
purposely directed its activities in the forum of the Northern District of Georgia, and that that
District Court has personal jurisdiction over Plaintiff and Defendant and the claims under the
three part tort analysis this Court employed in its Opinion & Order. (ECF 115 at 10-12).
C. A transfer of this case to The Northern District of Georgia is in the interest of justice.
A transfer of this case to the Northern District of Georgia is warranted because Plaintiff’s
claims would not be time-barred, the claims are likely to have merit, and Plaintiffs’ claims were
filed in good faith rather than filed after Plaintiff either knew or should have known that the
forum in which Plaintiff filed its complaint in Colorado was improper.
D. Judicial Economy.
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Moreover, the transferring court must consider judicial economy and prejudice. Finally,
the transferring Court must balance the factors. Grynberg at 105, 107-108.
1. In its Opinion & Order, the Court acknowledged that Plaintiff alleged that the
breach of the joint ventures occurred on December 7, 2012 when Defendants invoiced Plaintiff
for work on the Broadcast Platform. (ECF 115 at 6). Accordingly, Plaintiff claims will not be
time-barred if the Court transfers this case to the Northern District of Georgia. The Georgia
statute of limitations for breach of simple written contract claims is six years but is only four
years for breach of an oral contract. O.C.G.A. Title 9-3-24 (“all actions upon simple contracts in
writing shall be brought within six years after the same becomes due and payable.…”) O.C.G.A.
Title 9-3-26 (all other actions upon contracts suppressed or implied not otherwise provided for
shall be brought within four years from the accrual of the right of action….”). O.C.G.A Title 9-3-
26 obviously covers more sophisticated agreements and oral agreements such as a joint ventures
Plaintiff alleges Defendant entered with Plaintiff in this case. Accordingly, Plaintiff’s action
against Defendant for breach of contract, which the Court found that Plaintiff had alleged in its
FAC, not occurred on December 7, 2012 (ECF 115 at 6) is governed by the four-year statute of
limitations set forth in O.C.G.A. Title 9-3-26. Thus, Plaintiffs claims are not time-barred against
Defendant if the Court transfers this case to the Northern District of Georgia as long as the
transfer occurs before December 6, 2016.
Likewise, Plaintiff’s claims that constitute torts are also governed by a four-year statute
of limitations in Georgia. O.C.G.A. Title 9-3-31 (“Actions for injuries to personalty shall be
brought within four years after the right of action accrues.”). Plaintiff’s tort claims against
Defendant raise injury to Plaintiffs personalty. Willis v City of Atlanta, 265 GA App 640, 595
S.E. 2d 339 (2003), McNean v. Paine, Webber, Jackson & Curtis, Inc., 598 F.2d 888 (5th Cir
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1979); McLendon v. Georgia Kaolin, 782 F. Supp. 154 (M.D. Ga. 1992). Hamburger v. PFM
Capital Mgmt, 286 Ga. App. 382, 649 S.E. 2d. 779 (2007). Under this Georgia statute, Plaintiff’s
claims of fraud and breach of fiduciary duty as well as the other torts alleged in claims 11, 12
and 13 began to accrue at or about December 7, 2012, when Plaintiff first learned that Defendant
invoiced Plaintiff for work on the Broadcast Platform, the costs of which cost Defendant was to
bear under the joint ventures the Parties agreed to at the May 31-June 1, 2012 meetings in
Atlanta.
2. Plaintiff’s claims are likely to have merit.
Plaintiff has the burden of establishing the grounds for a transfer. Grynberg at 108.
Moreover, this Court is authorized in the interest of justice to consider the consequences of a
transfer of this case to the Northern District of Georgia by taking “a peek at the merits to avoid
raising false hopes and wasted judicial resources that would result from transferring a case” to a
district court which is clearly without merit. Grynberg, at 108, citing Haugh v. Booker, 210 F.3d
1147, 1150 (10th Cir. 2000) (quoting Phillips v. Seiter, 173 F.3d 609, 610-11, (7th Cir. 1999)). In
Phillips, the Seventh Circuit held that the Court is authorized to consider the consequence of a
transfer before deciding to transfer which implies that the Court “take a peek at the merits,” since
whether or not Plaintiff’s claims have any possible merit bears significantly on whether the Court
should transfer or dismiss the Plaintiff’s case. The Seventh Circuit went on to hold that that a
Court’s jurisdiction under 28 U.S.C. § 1631 is limited, which creates a power of limited review,
that should reveal that “a case is a sure loser in the court that has jurisdiction over it, then the
court in which it initially was filed did not have jurisdiction, should dismiss the case rather than
waste time of another court.” Phillips, at 610-11. Therefore, under Phillips, this Court need not
review the merits of the claims in detail, only review them for the purposes of determining
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whether the claims state claims for relief. Significantly, Defendant has not answered the
allegations in its FAC because Defendant moved for dismissal for lack of jurisdiction here which
extends the filing of an answer with the Court. Therefore, at this point, Defendants have not
denied Plaintiff’s allegations in the FAC. Plaintiff submits that the Court should consider this
factor in determining whether Plaintiff’s claims have merit.
3. Plaintiff filed its complaint in good faith.
This factor considers whether Plaintiff should have known that jurisdiction was not
proper in this Court. Plaintiff, however, raised significant factual arguments demonstrating that
this Court had jurisdiction both, general and specific jurisdiction over Defendant, and, indeed,
the Magistrate Judge Wang agreed with Plaintiff with respect to specific jurisdiction, although
this Court overturned Magistrate Judge Wang‘s R&R. There can be no question that Plaintiff
filed its FAC in this Court in good faith, because Plaintiff had no reason to believe that
jurisdiction was not proper in this Court.
4. A transfer this case will effect judicial economy and no prejudice to Defendant
This Court must also consider whether a transfer is in the interest of justice by balancing
the facts including judicial economy and no prejudice to Defendant. Grynberg at 108-109. A
transfer of this case to the Northern District of Georgia is also in the interest of justice. A transfer
will allow Plaintiff to proceed with its claims against Defendant in a court which has jurisdiction
over both parties and over Plaintiff’s claims. Plaintiff will get its day in court, to which it is
entitled. Moreover, the facts show that Defendant conducted most, if not all, of the activities that
form the underlying basis for Plaintiff’s claims in Atlanta, Georgia, where Plaintiff was located,
rather than have Plaintiff’s Chief Executive Officer and Plaintiff’s other representatives traveling
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to various places around the country to meet with the member AT&T representatives in
connection with the joint ventures. In other words, AT&T representatives always went to
Plaintiff in Atlanta, Georgia for meetings, and always contacted Plaintiff’s Chief Executive
Officer where Plaintiff was located in Atlanta. There will be no prejudice to Defendant as it
chose Atlanta, Georgia to conduct its activities giving rise to Plaintiff’s claims in Georgia.
WHEREFORE, Plaintiff requests this Court to amend its judgment dismissing this case
without prejudice and closing this case to dismissing this case and transferring it to the Northern
District of Georgia.
Dated August 18, 2016
Respectfully submitted,
Law Office of Michael L. Glaser, LLC
s/ Michael L. Glaser
Michael L. Glaser
Michael D. Murphy
The Law Office of Michael L. Glaser, LLC
1720 S. Bellaire St., Suite 607
Denver, CO 80222
Telephone: 303-757-1600
mglaser@glaserlegal.com
Attorneys for My24HourNews.Com, Inc.
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CERTIFICATE OF SERVICE
I hereby certify that on this 18th day of August, 2016, a true and correct copy of the
foregoing MOTION TO ALTER OR AMEND JUDGMENT BY TRANSFERRING CASE
was filed and served via CM/ECF addressed to the following:
Lee F. Johnston
Case L. Collard
Tucker K. Trautman
DORSEY & WHITNEY LLP
1400 Wewatta St., Suite 400
Denver, CO 80202
Johnston.lee@dorsey.com
Trautman.tucker@dorsey.com
Collard.case@dorsey.com
Attorneys for Defendant AT&T Corp.
s/ Pamela L. Laning_____
Pamela L. Laning
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IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF COLORADO
Case Number: 15-CV-01210-RM-NYW
MY24HOURNEWS.COM, INC.,
a Colorado corporation
Plaintiff,
v.
AT&T CORP.,
a New York corporation
Defendant.
MOTION TO ALTER OR AMEND JUDGMENT BY TRANSFERRING CASE
My24HourNews.com, Inc., Plaintiff in the above-captioned case (“Plaintiff”), for its
Motion to Transfer Case pursuant to Federal Rule of Civil Procedure 59 (e) and 28 U.S.C.
§1631, (“Motion”), respectfully submits the following:
CONFERRAL
Plaintiff’s counsel has conferred with Defendant’s counsel, who advises Plaintiff’s
counsel that that Defendant AT&T Corp (“Defendant”) will oppose this Motion on at least the
ground that a transfer is not warranted under the facts of this case.
I. SUMMARY OF MOTION
Plaintiff requests that this Court transfer this case to the United States District Court for
the Northern District of Georgia, pursuant to Federal Rule of Civil Procedure (“Fed.R.Civ.P.”)
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59(e) and 28 U.S.C. §1631. Plaintiff shows below that this Motion meets the requirements under
Rule 59 (e) and 28 U.S.C. § 1631, based upon the Court’s determinations in its July 21, 2016
Opinion & Order (“Opinion & Order”) (ECF 115) for amending the Court’s judgment from
dismissal of this case without prejudice and case closed dismissing without prejudice and
transferring this case to the United States District Court for the Northern District of Georgia, in
the interest of justice.
II. BACKGROUND FACTS
In Magistrate Judge Wang’s Recommendation and Report filed April 11, 2016 (ECF 91)
(“R&R”), Magistrate Judge Wang found that specific personal jurisdiction existed over
Defendant in light of Plaintiff’s allegations that Plaintiff and Defendant were members of a joint
venture, and, during the course of a joint venture, Defendant agreed to Plaintiff’s temporary
relocation of its broadcast studio to Denver, Colorado. Moreover, Magistrate Judge Wang found
that Defendants agreed to Plaintiff’s use of the studio facilities as an off-hour facility and a back-
up facility (ECF 91 at 24-25.) Magistrate Judge Wang also found that, assuming the truth of the
alleged joint venture between the parties, Defendant had purposely availed itself of conducting
activities in Colorado (ECF 91 at 26.) Magistrate Judge Wang further found that this litigation
resulted from alleged injuries that arose from Defendant’s Colorado activities or the claims in
this case arose out of the activities of Defendant in Colorado. (Id).
Defendant objected to these findings asserting Judge Wang failed to address or analyze
whether Plaintiff’s claims arose out of Defendant’s alleged conduct in Colorado (ECF 95 at 2-3),
and if such analysis were performed, none of Plaintiff’s claims arose out of Defendant’s
Colorado contacts. (Id. at 4-6).
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In its de novo review of the R&R, this Court decided in its Opinion & Order that
Plaintiff’s claims (1) and (4) alleging Defendant’s breach of fiduciary duties related to two
separate joint ventures agreements, claims (2) and (5) promissory estoppel based upon
Defendant’s failure to follow through on promises made in relation to two separate joint venture
agreements (claim (3) and (6), Plaintiff’s reliance on the alleged false representation made by
Defendant (claim 7), and Defendant’s concealment of material facts related to two separate joint
venture (claim 8), Defendant’s breach of a contract (claim 9), Defendant’s alleged
misappropriation Plaintiff’s ideas (claim 10), and Defendant’s alleged negligent
misrepresentations (claim 14) did not arise out of Defendant’s alleged contacts in Colorado.(ECF
115 at 5.) The Court noted that the injuries underlying these claims pertain to representations, or
the lack thereof, related to two joint venture agreements that Plaintiff and Defendant and were
made or concealed during the parties meeting in Atlanta, Georgia (ECF 115 at 7) where Plaintiff
resided at the time. Significantly, Atlanta is located in the Northern District of Georgia.
Accordingly,, the Court granted Defendant’s motion to dismiss these claims without prejudice
and closed the case.
With respect to Plaintiff’s claim for Defendant’s alleged misappropriation of Plaintiff’s
ideas (claim 10), theft of trade secrets (claim 11) and conversion and unjust enrichment arising
from Plaintiff’s Broadcast Platform and Plaintiff’s intellectual property (claims 12 and 13),
which are all torts, the Court applied a different analysis, from which the Court concluded that
the injury underlying these claims, unlike the claims described above, did not arise from any
alleged promises, representations, or concealed facts the parties meeting in Atlanta, but from
Defendant’s taking of Plaintiff’s alleged ideas intellectual property and misappropriating,
stealing or converting them for Defendant’s own purposes. The Court found and concluded that
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these claims did not arise from Defendant’s purposeful direction of any contacts in Colorado
(ECF 115 at 9- 12).
In doing so, the Court noted that, to the extent such conduct alleged in the above
referenced claims occurred, the focal point was either wherever it was that Defendant decided to
misappropriate, convert or steal others’ intellectual property, or where Defendant believed
Plaintiff to be located at the time of the tortious conduct (ECF 115 at 11.) The Court found that
Plaintiff’s injuries arising from these claims did not occur in Denver. The facts of record show,
however, that Defendant knew that Plaintiff was located in Atlanta at the time of the tortious
conduct described above. To be sure, Defendant had even argued to the Court in its Motion to
Dismiss that the significant events occurring in this case, including the alleged
misrepresentations and/or concealment, took place in Atlanta (See, Defendant’s Motion to
Dismiss (ECF 46 at pp. 13-14, 16)). Like the Court’s ruling with respect to all claims other than
claims 11, 12 and 13, the Court granted Defendant’s Motion to Dismiss claims 11, 12 and 13
without prejudice and to close this case.
III. ARGUMENT
Rule 59 (e) provides:
Motion to Alter or Amend a Judgment. A motion to alter or amend a judgment
must be filed no later than 28 days after the entry of the judgment.
Plaintiff meets the requirement of this Rule because its Motion is timely filed and it is
requesting the Court to amend its judgment from a dismissal without prejudice and case closed
to, pursuant to 28 U.S.C. §1631, to dismissal without prejudice and to transfer of this case to the
Northern District of Georgia. The Court has the authority under Rule 59 (e) to transfer this case
to the Northern District of Georgia if Plaintiff meets requirements of this statute. As Plaintiff
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demonstrates below, Plaintiff meets the requirements of 28 U.S.C. §1631 because the Northern
District of Georgia has jurisdiction over both the Parties and Plaintiff’s claims.
A. 28 U.S.C. §1631, captioned “Transfer to cure want of jurisdiction,” gives this Court
Authority in the exercise of its discretion to Transfer this Case to the Northern District
of Georgia.
Plaintiff requests the Court exercise discretion and transfer this case pursuant to 28
U.S.C. §1631 to the Northern District of Georgia where Atlanta is located in light of the fact that
most, if not all, of the events that underlie Plaintiff’s claims occurred in that jurisdiction and that
District Court in Atlanta has jurisdiction over both Plaintiff and Defendant.
The Court’s dismissal Plaintiff’s claim for lack of jurisdiction over Defendant affords
Plaintiff two options. First, Plaintiff can refile its Complaint against Defendant in the Northern
District of Georgia but will incur new filing fees and other expenses by starting over in
prosecuting its claims in that District Court. Second, Plaintiff can request the Court to amend its
judgment under Rule 59(e) of dismissal without prejudice and case closed and to exercise its
discretion and dismiss without prejudice and to transfer this case to the Northern District of
Georgia, pursuant to 28 U.S.C. §1631, in order to cure the lack of personal jurisdiction in this
Court. Plaintiff has selected this option because as 28 U.S.C. §1631 states, Plaintiff’s complaint
would proceed as if it had been filed in the Northern District of George on the date Plaintiff filed
its FAC here.
28 U.S.C. §1631 provides:
Whenever a civil action is filed in a court as defined in section 610 of this title [28
USCS § 610] or an appeal, including a petition for review of administrative
action, is noticed for or filed with such a court and that court finds that there is a
want of jurisdiction, the court shall, if it is in the interest of justice, transfer such
action or appeal to any other such court in which the action or appeal could have
been brought at the time it was filed or noticed, and the action or appeal shall
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proceed as if it had been filed in or noticed for the court to which it is transferred
on the date upon which it was actually filed in or noticed for the court from which
it is transferred.
This statute gives authority to a federal court that determines that it lacks jurisdiction over
a civil action by stating that the court shall, if it is in the interest of justice, transfer such action to
any other court in which the action could have been brought at the time it was filed or noticed. In
Grynberg v. Ivenhoe Enegy, Inc., 490 Fed. Appx. 86, (10th Cir. 2012,) the United States Court for
the Tenth Circuit set forth the factors this Court must follow before deciding whether to transfer
this case to another District Court. First, this Court must assure itself that the proposed transferee
court has personal jurisdiction over the parties. If the Court finds that the Northern District of
Georgia has such jurisdiction, even though 28 U.S.C. §1631 contains the word “shall,” and the
phrase “if it is in the interest of justice,” this Court has discretion in making a decision whether
to transfer this case. The factors related to the interest of justice include whether the Plaintiff’s
claims would be time-barred if filed a new in the proper forum, whether Plaintiff’s claims as
alleged are likely to have merit, and whether the claims were filed in good faith or if it was clear
at the time Plaintiff’s filing of its complaint that this Court lacked the requisite jurisdiction. The
Court must also consider judicial economy and prejudice to Defendant in determining whether to
transfer this case. The Court must also balance these factors. Grynberg, 490 Fed. Appx. at 109.
B. The Northern District of Georgia has Personal Jurisdiction over Plaintiff and
Defendant in this Case
This Court stated that the Court may exercise specific personal jurisdiction over a
defendant consistent with the Due Process Clause of the U.S. Constitution if a plaintiff shows
that “(1) the defendant has purposefully availed itself of the privilege of conducting activities or
consummating a transaction in the forum state, and (2) the litigation results from alleged injuries
that arise out of or relate to those activities.” (ECF 115 at 4). Emp’rs Mut. Cas. Co. v. Bartile
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Roofs, Inc., 618 F.3d 1153, 1160 (10th Cir. 2010) (quotations, internal quotation, and citations
omitted). This Court also noted that purposeful availment, however, does not mean the same
thing with respect to all claims. The Court stated that, for tort claims, the test to determine
whether Plaintiff’s claims against Defendant establish jurisdiction, “(a) an intentional action that
was (b) expressly aimed at the forum state with (c) knowledge that the brunt of the injury would
be felt in the forum state.” Newsome v. Gallacher, 722 F.3d 1257, 1264-65 (10th Cir. 2013)
(ellipses and quotation omitted), and “[i]n order to assess whether minimum contacts occurred in
a contract case, we look at prior negotiations and contemplated future consequences, along with
the terms of the contract and the parties’ actual course of dealing;” citing AST Sports Sci., Inc. v.
CLF Distribution Ltd., 514 F.3d 1054, 1058 (10th Cir. 2008) (quotation omitted). Plaintiff
demonstrates immediately below why the Northern District of Georgia has jurisdiction over this
case.
1. AT&T purposely availed itself of the privilege of conducting activities in Atlanta
located in the Northern District of Georgia, and the injuries to Plaintiff occurred in
that District Court.
As this Court stated in its Opinion & Order, the Court adopted Magistrate Judge Wang’s
findings in R&R. (ECF 115 at 2). The Court went on to hold that the address the injuries
underlying Plaintiff’s claims pertain to representations, or the lack thereof, related to two joint
venture agreements that Plaintiff and Defendant made during the parties meeting in Atlanta,
Georgia on May 31 and June 1, 2012. (ECF 115 at 7). As stated above, Atlanta is located in the
Northern District of Georgia.
Moreover, the Court found that Plaintiff made it abundantly clear in its First Amended
Complaint (“FAC”), that the joint ventures were agreed to in Atlanta. (ECF 23 at. ¶ ¶ 25, 64-68).
Likewise, the Court found, by adopting Magistrate Judge Wang’s findings, that Plaintiff was
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incorporated in Georgia at the time the events that underlie Plaintiff’s claims, and did not
incorporate in Colorado until September 3 2014. (ECF 115 at 2; ECF 9 at 10). Magistrate Judge
Wang also found that My24 was a Georgia corporation when it negotiated the master agreement
and amended Master agreement in which both agreements identified My24’s headquarters as
Atlanta. (ECF 91 at 4, 10, 23; R&R at 4, 10 and 23). Additionally, Plaintiff and Defendant
negotiated the proposed Town Hall meeting in Atlanta. (ECF 91 at 5; ECF 46 at 116-11), and
both sought to establish a studio in Atlanta, but due environmental conditions among others,
Plaintiff was not able to do so. (ECF 91 at 8). Thus, Plaintiff was a Georgia corporation at all
times relevant to Plaintiff’s claims which arose in 2012, and the events that underlie to Plaintiff’s
claims arose in Atlanta. Consequently, the record shows that Defendant purposely availed itself
of conducting activities or consummating transactions in Atlanta, Georgia, and the injuries
alleged from Defendant’s contract arise out of or relate to Defendant’s actions in Atlanta,
Georgia.
Plaintiff submits that, based on the facts, the Northern District of Georgia has specific
jurisdiction over Plaintiff and its claims for breach of contract, that is, the joint venture
agreements because Defendant purposely availed itself of the privilege of conducting activities
with Plaintiff in Atlanta, Georgia, and that the litigation results from injuries Plaintiff allegedly
sustained arising out of or related to Defendant’s activities in Atlanta, Georgia.
2. AT&T purposely directed its activities which were aimed at Georgia.
For its tort claims alleged against Defendant, Plaintiff must show defendant (a) engaged
in an intentional action (b) that was expressly aimed at Georgia (c) with the knowledge that the
brunt of the injury would be felt in Georgia. (ECF 115 at 4, 10).
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Defendant intentionally built the Broadcast Platform pursuant to the Network
Agreements (“Agreements”) which My24 signed in Atlanta where it was located in August 2012.
These Agreements call for AT&T to deliver the Broadcast Platform for use by the joint ventures
in the Parties plans for use in presidential debates and in the political context, that is, in the time
period after the Republican and Democratic conventions such as Debates/Town Hall meetings
(ECF 91 at 4; R&R at 4). The launch of the Broadcast Platform was originally intended be made
from My24’s proposed Atlanta studio because the Parties wanted the joint venture to be located
in Atlanta (ECF 91 at 8; R&R at 5).
Second, as just noted, the launch of My24’s Broadcast platform was originally to be
made from My24’s Atlanta studios. Thus, Defendant’s, actions in making the launch were
expressly aimed at Atlanta where the launch of the Broadcast Platform from My24 studios was
to have occurred. (ECF 46 at ¶¶ 87-94). Indeed, this Court held that to the extent Defendant
engaged in the conduct alleged in the FAC, its focal point was either wherever it is that
Defendant decided to misappropriate, convert or steal others’ intellectual property or where
Defendant believed Plaintiff to be located at the time of the tortious conduct. (ECF 115 at
11). Here, Defendant knew that Plaintiff was located in Atlanta, Georgia in December 2012 at
the time Defendant decided not to go forward with the joint ventures based on the factual events
described by Magistrate Judge Wang and her R&R. (EFC 91 at 2-10; R&R 2-10), AT&T also
began holding Plaintiff’s Broadcast Platform hostage for the invoices which Defendants sent
Plaintiff for payment in Atlanta.
Finally, Defendant reneged on the planned use of the Broadcast Platform, knowing that
the brunt of the injuries to My24 would be felt in Atlanta, where Plaintiff had planned to move
back after the use of a studio proposed for backup in Denver. (ECF 115 at 5; and ECF 91 at 9).
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As noted above, the focal point of Defendant’s conduct in this regard was either wherever it was
that Defendant decided to misappropriate, convert or steal others’ intellectual property, or where
Defendant believed Plaintiff to be located at the time of Defendant’s conduct. As this Court
held in its Opinion & Order, while Plaintiff’s injuries underlying its claims did not arise from
any alleged, promises, presentations or concealed facts from the parties meeting in Atlanta but
from Defendant’s taking Plaintiff’s alleged ideas and intellectual property and/or converting
them for Defendant’s own ends (ECF 115 at 11), Plaintiff submits that the record is clear that
Defendant knew Plaintiff was located in Atlanta. (ECF 115 at 7). Moreover, Defendant never
asserted that it did not know where Plaintiff was located at the time it decided not to go forward
with the joint ventures in 2012. In fact, Defendant argued just the opposite to this Court in its
Motion to Dismiss. See Defendant’s Motion to Dismiss. (ECF 46 at 5, 7).
Plaintiff submits that it has met the three-part test by showing above that Defendant
purposely directed its activities in the forum of the Northern District of Georgia, and that that
District Court has personal jurisdiction over Plaintiff and Defendant and the claims under the
three part tort analysis this Court employed in its Opinion & Order. (ECF 115 at 10-12).
C. A transfer of this case to The Northern District of Georgia is in the interest of justice.
A transfer of this case to the Northern District of Georgia is warranted because Plaintiff’s
claims would not be time-barred, the claims are likely to have merit, and Plaintiffs’ claims were
filed in good faith rather than filed after Plaintiff either knew or should have known that the
forum in which Plaintiff filed its complaint in Colorado was improper.
D. Judicial Economy.
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Moreover, the transferring court must consider judicial economy and prejudice. Finally,
the transferring Court must balance the factors. Grynberg at 105, 107-108.
1. In its Opinion & Order, the Court acknowledged that Plaintiff alleged that the
breach of the joint ventures occurred on December 7, 2012 when Defendants invoiced Plaintiff
for work on the Broadcast Platform. (ECF 115 at 6). Accordingly, Plaintiff claims will not be
time-barred if the Court transfers this case to the Northern District of Georgia. The Georgia
statute of limitations for breach of simple written contract claims is six years but is only four
years for breach of an oral contract. O.C.G.A. Title 9-3-24 (“all actions upon simple contracts in
writing shall be brought within six years after the same becomes due and payable.…”) O.C.G.A.
Title 9-3-26 (all other actions upon contracts suppressed or implied not otherwise provided for
shall be brought within four years from the accrual of the right of action….”). O.C.G.A Title 9-3-
26 obviously covers more sophisticated agreements and oral agreements such as a joint ventures
Plaintiff alleges Defendant entered with Plaintiff in this case. Accordingly, Plaintiff’s action
against Defendant for breach of contract, which the Court found that Plaintiff had alleged in its
FAC, not occurred on December 7, 2012 (ECF 115 at 6) is governed by the four-year statute of
limitations set forth in O.C.G.A. Title 9-3-26. Thus, Plaintiffs claims are not time-barred against
Defendant if the Court transfers this case to the Northern District of Georgia as long as the
transfer occurs before December 6, 2016.
Likewise, Plaintiff’s claims that constitute torts are also governed by a four-year statute
of limitations in Georgia. O.C.G.A. Title 9-3-31 (“Actions for injuries to personalty shall be
brought within four years after the right of action accrues.”). Plaintiff’s tort claims against
Defendant raise injury to Plaintiffs personalty. Willis v City of Atlanta, 265 GA App 640, 595
S.E. 2d 339 (2003), McNean v. Paine, Webber, Jackson & Curtis, Inc., 598 F.2d 888 (5th Cir
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1979); McLendon v. Georgia Kaolin, 782 F. Supp. 154 (M.D. Ga. 1992). Hamburger v. PFM
Capital Mgmt, 286 Ga. App. 382, 649 S.E. 2d. 779 (2007). Under this Georgia statute, Plaintiff’s
claims of fraud and breach of fiduciary duty as well as the other torts alleged in claims 11, 12
and 13 began to accrue at or about December 7, 2012, when Plaintiff first learned that Defendant
invoiced Plaintiff for work on the Broadcast Platform, the costs of which cost Defendant was to
bear under the joint ventures the Parties agreed to at the May 31-June 1, 2012 meetings in
Atlanta.
2. Plaintiff’s claims are likely to have merit.
Plaintiff has the burden of establishing the grounds for a transfer. Grynberg at 108.
Moreover, this Court is authorized in the interest of justice to consider the consequences of a
transfer of this case to the Northern District of Georgia by taking “a peek at the merits to avoid
raising false hopes and wasted judicial resources that would result from transferring a case” to a
district court which is clearly without merit. Grynberg, at 108, citing Haugh v. Booker, 210 F.3d
1147, 1150 (10th Cir. 2000) (quoting Phillips v. Seiter, 173 F.3d 609, 610-11, (7th Cir. 1999)). In
Phillips, the Seventh Circuit held that the Court is authorized to consider the consequence of a
transfer before deciding to transfer which implies that the Court “take a peek at the merits,” since
whether or not Plaintiff’s claims have any possible merit bears significantly on whether the Court
should transfer or dismiss the Plaintiff’s case. The Seventh Circuit went on to hold that that a
Court’s jurisdiction under 28 U.S.C. § 1631 is limited, which creates a power of limited review,
that should reveal that “a case is a sure loser in the court that has jurisdiction over it, then the
court in which it initially was filed did not have jurisdiction, should dismiss the case rather than
waste time of another court.” Phillips, at 610-11. Therefore, under Phillips, this Court need not
review the merits of the claims in detail, only review them for the purposes of determining
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whether the claims state claims for relief. Significantly, Defendant has not answered the
allegations in its FAC because Defendant moved for dismissal for lack of jurisdiction here which
extends the filing of an answer with the Court. Therefore, at this point, Defendants have not
denied Plaintiff’s allegations in the FAC. Plaintiff submits that the Court should consider this
factor in determining whether Plaintiff’s claims have merit.
3. Plaintiff filed its complaint in good faith.
This factor considers whether Plaintiff should have known that jurisdiction was not
proper in this Court. Plaintiff, however, raised significant factual arguments demonstrating that
this Court had jurisdiction both, general and specific jurisdiction over Defendant, and, indeed,
the Magistrate Judge Wang agreed with Plaintiff with respect to specific jurisdiction, although
this Court overturned Magistrate Judge Wang‘s R&R. There can be no question that Plaintiff
filed its FAC in this Court in good faith, because Plaintiff had no reason to believe that
jurisdiction was not proper in this Court.
4. A transfer this case will effect judicial economy and no prejudice to Defendant
This Court must also consider whether a transfer is in the interest of justice by balancing
the facts including judicial economy and no prejudice to Defendant. Grynberg at 108-109. A
transfer of this case to the Northern District of Georgia is also in the interest of justice. A transfer
will allow Plaintiff to proceed with its claims against Defendant in a court which has jurisdiction
over both parties and over Plaintiff’s claims. Plaintiff will get its day in court, to which it is
entitled. Moreover, the facts show that Defendant conducted most, if not all, of the activities that
form the underlying basis for Plaintiff’s claims in Atlanta, Georgia, where Plaintiff was located,
rather than have Plaintiff’s Chief Executive Officer and Plaintiff’s other representatives traveling
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to various places around the country to meet with the member AT&T representatives in
connection with the joint ventures. In other words, AT&T representatives always went to
Plaintiff in Atlanta, Georgia for meetings, and always contacted Plaintiff’s Chief Executive
Officer where Plaintiff was located in Atlanta. There will be no prejudice to Defendant as it
chose Atlanta, Georgia to conduct its activities giving rise to Plaintiff’s claims in Georgia.
WHEREFORE, Plaintiff requests this Court to amend its judgment dismissing this case
without prejudice and closing this case to dismissing this case and transferring it to the Northern
District of Georgia.
Dated August 18, 2016
Respectfully submitted,
Law Office of Michael L. Glaser, LLC
s/ Michael L. Glaser
Michael L. Glaser
Michael D. Murphy
The Law Office of Michael L. Glaser, LLC
1720 S. Bellaire St., Suite 607
Denver, CO 80222
Telephone: 303-757-1600
mglaser@glaserlegal.com
Attorneys for My24HourNews.Com, Inc.
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CERTIFICATE OF SERVICE
I hereby certify that on this 18th day of August, 2016, a true and correct copy of the
foregoing MOTION TO ALTER OR AMEND JUDGMENT BY TRANSFERRING CASE
was filed and served via CM/ECF addressed to the following:
Lee F. Johnston
Case L. Collard
Tucker K. Trautman
DORSEY & WHITNEY LLP
1400 Wewatta St., Suite 400
Denver, CO 80202
Johnston.lee@dorsey.com
Trautman.tucker@dorsey.com
Collard.case@dorsey.com
Attorneys for Defendant AT&T Corp.
s/ Pamela L. Laning_____
Pamela L. Laning
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