Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Trans-West, Inc. v. Southwest Luxury Coach Sales, LLC

United States District Court, D. Colorado

February 29, 2016

TRANS-WEST, INC., a Colorado corporation d/b/a Transwest Truck Trailer RV, Plaintiff,
v.
SOUTHWEST LUXURY COACH SALES, LLC, an Arizona limited liability company, & SCOTT BUCHANAN, an individual, Defendants.

          REPORT & RECOMMENDATION ON MOTION TO STAY OR, IN THE ALTERNATIVE, TO DISMISS IN RESPONSE TO PLAINTIFF'S AMENDED COMPLAINT AND JURY DEMAND (Docket No. 42)

          MICHAEL J. WATANABE, Magistrate Judge.

         Plaintiff alleges that Defendants participated in a kickback scheme with one of Plaintiff's employees. This case was removed to federal court; Plaintiff's lawsuit against its own employee remains pending in state court. Defendants ask the Court to stay the case in favor of the related state proceedings or, if the case moves forward, to dismiss two of Plaintiff's claims under Fed.R.Civ.P. 12(b)(6).

         The Court has reviewed Defendants' motion (Docket No. 42) and Plaintiff's response (Docket No 45). The deadline for Defendants to file a reply has passed. The Court has also taken judicial notice of the Court's entire file in this case and considered the applicable Federal Rules of Civil Procedure, statutes, and case law. Now being fully informed, the Court makes the following (1) order on the motion to stay, and (2) report and recommendation as to the motion to dismiss.

         Facts as Alleged in the Amended Complaint

         Plaintiff Trans-West, Inc. sells new and used recreational vehicles ("RVs"); so does co-Defendant Southwest Luxury Coach Sales, LLC, which is owned by co-Defendant Scott Buchanan (collectively, "Defendants"). (Docket No. 40 ¶¶ 6-8.) Jeffrey Mullins was the RV Sales Manager at one of Plaintiff's locations, working for Plaintiff from October 2011 to June 2015. ( Id. ¶ 9.) Mullins sold about 36 RVs to Defendants- at deeply discounted prices on paper, but taking money under the table as part of "an ongoing kickback embezzlement and bribery scheme." ( Id. ¶¶ 11-14.) Defendants bought at least 27 RVs pursuant to this scheme, paying Mullins a total of $265, 925 in checks and, once other transfers are included, more than $500, 000. ( Id. ¶¶ 15-19.) Plaintiff estimates its actual losses, due to the discounted prices, to exceed a million dollars. ( Id. ¶ 22.)

         Further, some sales went in the other direction, with Defendants selling RVs to Plaintiff; in negotiating these transactions, Mullins inflated the prices paid by Plaintiff and again accepted kickbacks from Defendants. ( Id. ¶¶ 22-23.) Mullins also arranged to have RVs sold to Plaintiff for purpose of having repairs and refurbishments completed at Plaintiff's expense, then sold back to Defendants or others at cost or, sometimes, at a loss to Plaintiff. ( Id. ¶¶ 24-31.)

         Finally, Plaintiff alleges that it incurred nearly $27, 000 repairing and refurbishing a particular RV at Defendants' request, and that Defendants refused to make payment. Id. ¶¶ 32-36.)

         Plaintiff sued Mullins in state court; that case remains pending at present. (See Docket Nos. 42-1, 42-8, & 42-9.) In this action, Plaintiff sued Defendants in a different district in state court, and Defendants removed to Federal court.

         Discussion

         Plaintiff asserts eight claims, all arising under Colorado law:

• Count One: Aiding and Abetting Breach of Fiduciary Duty
• Count Two: Civil Theft under C.R.S. § 18-4-401
• Count Three: ...

Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.