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MOTION for Leave to File Reply Brief by Capital Plus Financial LLC, Crossroads… — Greathouse Capitalplus (Dkt. 50)
Summary
A Motion for Leave to File Reply Brief by Defendants Capital Plus Financial, LLC and Crossroads Systems, Inc., Doc. 50, filed May 25, 2022 in Greathouse v. Capital Plus Financial, LLC, No. 4:21-cv-01243-BRW, in the U.S. District Court for the Eastern District of Arkansas. The defendants state that the plaintiffs' May 23, 2022 response in opposition to the motion to dismiss is seventy-five pages in length and provides two declarations. They ask to file a short reply, no greater than ten pages, limited to listed issues, including personal jurisdiction, the plaintiffs' reading of Ford Motor Co. and Bristol Myers, and jurisdictional discovery. The reply would be filed within seven days from the Court's ruling.
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“MOTION for Leave to File Reply Brief by Capital Plus Financial LLC, Crossroads… — Greathouse Capitalplus (Dkt. 50).”
Original at ecf.ared.uscourts.gov, No. 4:21-cv-01243-BRW, Doc. 50. Archived at Pandemic Darlings, https://pandemicdarlings.com/court-filings/greathouse-capitalplus-ared-131205/undated-gov-uscourts-ared-131205-50-0-gov-uscourts-ared-131205-50-0/
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Case 4:21-cv-01243-BRW Document 50 Filed 05/25/22 Page 1 of 3
IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF ARKANSAS
CENTRAL DIVISION
Eric Greathouse, Ernesto Covarrubias, §
Tiffany Sumrall, and Barbara Myles, §
individually and on behalf of all others §
similarly situated, §
§
Plaintiff, § Case No. 4:21–cv–1243–BRW
§
v. §
§
Capital Plus Financial, LLC and §
Crossroads Systems, Inc., §
Defendants.
MOTION FOR LEAVE TO FILE REPLY BRIEF
Capital Plus Financial, LLC and Crossroads Systems, Inc., collectively, “Defendants,”
have moved to dismiss the Amended Class Action Complaint (ECF 31). ECF 44. On May 23,
2022, Plaintiffs filed a response in opposition to the motion to dismiss, which is seventy-five pages
in length and provides two declarations. ECF 49.
To assist the Court’s ruling on the motion to dismiss, Defendants respectfully request that
they be permitted a short reply, no greater than ten pages, 1 limited to addressing the following
issues:
1. Plaintiffs’ misrepresentations regarding personal jurisdiction over the Defendants,
including that:
a. Greathouse’s loan documents contain language stating the loan would
ultimately be paid to an Arkansas bank (which it does not);
1
Defendants disagree with Plaintiffs’ response brief as it pertains to the issues of Plaintiffs’ ability to demonstrate
standing or state a claim. For purposes of their reply, however, Defendants will focus solely on the deficiencies in
Plaintiffs’ personal jurisdiction arguments.
Case 4:21-cv-01243-BRW Document 50 Filed 05/25/22 Page 2 of 3
b. Ms. Giga’s Declaration states that Defendants advertised in Arkansas (when
it says that they did not and that any communication with Mr. Greathouse
was after his loan was approved by the SBA); and
c. SBA’s Loan Service Center engages in loan origination and would service
unfunded loans (a representation which runs counter to SBA’s own
website);
2. Plaintiffs’ flawed interpretation of Ford Motor Co. v. Montana Eighth Jud. Dist.
Ct., 141 S. Ct. 1017 (2021), which has never been applied in a breach-of-contract
case and is distinguishable here because Defendants do not have nationwide,
physical offices or a product in the stream of commerce;
3. Plaintiffs’ misplaced reliance on the recent order in the pending litigation in Oto
Analytics, Inc. v. Cap. Plus Fin., LLC, Case No. 3:21-cv-02636-B (N.D. Tex.)
(“Womply”) because the orders on defendants’ recent motions to dismiss premise
the jurisdictional analysis on the forum in which a defendant does business, not the
resident state of the borrowers as Plaintiffs allege;
4. Plaintiffs’ misinterpretation of Bristol Myers v. Superior Ct. of California, San
Fransisco City., 137 S. Ct. 1773 (2017) because Plaintiffs must show their claims
arise out of or relate to Defendants’ contacts with the forum; and
5. Plaintiffs’ failure to demonstrate that they are entitled to jurisdictional discovery
under the relevant test in the Eighth Circuit requiring certain facts to be unknown
or undisputed.
A reply on these discrete issues is necessary so that the Court has a full and accurate record
before it issues a ruling. Accordingly, Defendants respectfully request that they be granted leave
to file a short reply, limited to the discrete issues set forth above, within seven days from the
Court’s ruling. Pursuant to Local Rule 7.2(d), no brief is required to be filed in support of this
request for leave.
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Case 4:21-cv-01243-BRW Document 50 Filed 05/25/22 Page 3 of 3
Respectfully submitted on May 25, 2022.
Karen P. Freeman
MITCHELL, WILLIAMS, SELIG,
GATES & WOODYARD, P.L.L.C.
4206 South J.B. Hunt Drive, Suite 200
Rogers, Arkansas 72758
Tel.: (479) 464–5650
Fax: (479) 464–5680
Kfreeman@mwlaw.com
Graham Talley
MITCHELL, WILLIAMS, SELIG,
GATES & WOODYARD, P.L.L.C.
425 West Capitol Avenue, Suite 1800
Little Rock, Arkansas 72201
Tel.: (501) 688–8800
Fax: (501) 688–8807
Gtalley@mwlaw.com
Katherine G. Treistman (pro hac vice)
Andrew D. Bergman (pro hac vice)
ARNOLD & PORTER KAYE SCHOLER LLP
700 Louisiana Street, Suite 4000
Houston, Texas 77002–2755
Tel.: (713) 576–2400
Fax: (713) 576–2499
Katherine.Treistman@arnoldporter.com
Andrew.Bergman@arnoldporter.com
Eric N. Whitney (pro hac vice)
ARNOLD & PORTER KAYE SCHOLER LLP
250 West 55th Street
New York, New York 10019–9710
Tel.: (212) 836–8000
Fax: (212) 836–8689
Eric.Whitney@arnoldporter.com
Attorneys for Defendants Capital Plus
Financial, LLC and Crossroads Systems, Inc.
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