Advanced Knowledge Tech LLC v. Fleitas

Only Fraud, Negligent Misrepresentation Claims Stand; Veil-Piercing Claim Not Recognized

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OPINION AND ORDER In this diversity action, plaintiff Advanced Knowledge Tech, LLC (“AKT”) seeks to hold defendant Marcello Fleitas, the Managing Member and Director of Ubergig, LLC (“Ubergig”), liable for unpaid services rendered to a client of Ubergig’s known as Hello Elephant.¹ AKT provides consulting services in the field of information technology. The businesses of Ubergig and Hello Elephant are not described in the Amended Complaint. Ubergig is not a party to this action and is alleged to have filed for Chapter 7 bankruptcy protection in October 2020. (Am. Compl’t 35.) AKT asserts claims against Fleitas for common law fraud, negligent misrepresentation, unjust enrichment, conversion and veil piercing and Fleitas has moved, pursuant to Rule 12(b)(6), Fed. R. Civ. P., to dismiss each claim. For reasons that will be explained, the motion will be granted as to all claims except the fraud and negligent misrepresentation claims. BACKGROUND For the purposes of the motion, the Court accepts the well-pleaded factual allegations of the Amended Complaint as true, drawing all reasonable inferences in favor of the non-movant, AKT. AKT alleges that on January 3, 2020 it entered into an agreement with Ubergig to provide IT consulting services to Ubergig’s client, Hello Elephant. (Am. Compl’t

8, 11.) AKT alleges that Ubergig “immediately defaulted” under the agreement and failed to pay invoices from January 2020 until October 2020. (Am. Compl’t 12.) In October 2020, AKT ceased rendering services when it learned that Ubergig had filed for bankruptcy protection. (Id.) Prior to AKT’s agreement with Ubergig, Fleitas told AKT’s President Peter Boyapati that Ubergig would pay AKT for the consulting services and that Ubergig was a financially viable company and had sufficient funds to make full payment to AKT. (Am. Compl’t

Advanced Knowledge Tech LLC v. Fleitas

Only Fraud, Negligent Misrepresentation Claims Stand; Veil-Piercing Claim Not Recognized

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