Benjamin Woodhouse v. The United States Government

Case 2:22-cv-00285-CAS Document 75 Filed 05/02/22 Pagelof9 Page ID #:1378

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:22-cv-00285-CAS Date May 2, 2022

Title Benjamin Woodhouse v. The United States Government et al

Present: The Honorable CHRISTINA A. SNYDER

Catherine Jeang Not Present N/A

Deputy Clerk Court Reporter / Recorder Tape No.

Attorneys Present for Plaintiffs: Attorneys Present for Defendants:

Not Present Not Present

Proceedings: (IN CHAMBERS) - DEFENDANT ALPHABET INC.’S MOTION

TO DISMISS (DKT. 64, FILED ON MARCH 22, 2022)

I. INTRODUCTION

The Court finds that Alphabet Inc.’s motion to dismiss is appropriate for decision

without oral argument. See Fed. R. Civ. P. 78; C.D. Cal. L-R. 7-15. Accordingly, the

matter is hereby taken under submission.

On January 13, 2022, Benjamin Woodhouse, representing himself, and Havensight

Capital L.L.C. (collectively, “plaintiff’) filed this action against defendants the United

States Government, the Hon. Stanley Blumenfeld Jr., the Hon. R. Gary Klausner, the

Hon. Fernando M. Olguin, the Hon. Manuel L. Real, now deceased, the Hon. Otis D.

Wright II, Daniel Beck, Tracy Wilkison, David Harris, Joanne Osinoff, and the Hon.

Philip S. Gutierrez (collectively, “defendants”). Dkt. 1 (“Compl.”). Plaintiff brought his

complaint against defendants for their actions “as [] governmental officialls],”

complaining that that defendants “engag|ed] in alleged obstruction, cit{ed] to criminal

conduct, in a defective Minutes Order, |] allegedly interfere|ed| with Judge Klaus[ner],

who is also a named Defendant, |] obstruct[ed] due process[,] and tr[1ed] to abrogate the

right to file a Complaint against the U.S. Government.” Id. at 3. Plaintiff's initial

complaint alleged the following claims for relief: (1) “obstruction and due process

violations:” (2) “fraud and collusion;” and (3) “intentional interference with prospective

business and economic relations.” Id. at 17-33. Plaintiffs initial complaint requested

that the Court “dissolve” Gibson Dunn Inc., Meta Verse Inc., Nike Inc., and Alphabet

Inc., and “award [| $3 Trillion in compensatory and punitive damages to the Plaintiff,

against each of” those corporate entities. Id. at 33.

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Case 2:22-cv-00285-CAS Document 75 Filed 05/02/22 Page2of9 Page ID #:1379

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:22-cv-00285-CAS Date May 2, 2022

Title Benjamin Woodhouse v. The United States Government et al

Plaintiff, appearing as himself or his alter ego, Havensight Capital, LLC, has been

declared a vexatious litigant in several cases within the U-S. District Court for the Central

District of California. See Havensight Cap. LLC v. Nike, Inc., No. CV 14-7153-R, 2015

WL 3544111 (C_D. Cal. Apr. 22, 2015); Havensight Cap., LLC v. Facebook, Inc., No.

CV 17-6727 FMO (MRWsx), 2018 WL 6340757 (C.D. Cal. Sept. 24, 2018), aff'd, 776 F.

App’x 420 (9th Cir. 2019): Woodhouse v. United States Gow’t, No. 2:21-CV-06372-SB,

2021 WL 6333468 (C.D. Cal. Nov. 24, 2021). Most recently, Judge Blumenfeld’s

November 24, 2021, vexatious litigant order stated that “if Plaintiff files another lawsuit

against [Facebook, Nike, and Gibson Dunn], there will be an automatic stay to allow the

Court to evaluate whether the lawsuit falls within the scope of this order.”” Woodhouse,

2021 WL 6333468, at *6. On January 27, 2022, plaintiff filed a first amended complaint,

which named Gibson Dunn Inc., Meta Platforms Inc., Nike Inc., Alphabet Inc., and the

Hon. Christina A. Snyder as defendants. Dkt. 21 (“FAC”).

On January 27, 2022, the Court referred plaintiff's complaint to Judge Blumenfeld

for the limited purpose of determining whether it falls within the constraints of Judge

Blumenfeld’s November 24, 2021 vexatious litigant order.

On February 18, 2022, Judge Blumenfeld found “that the claims against Nike, Inc.,

Meta Verse, Inc., and Gibson Dunn Inc. fall within the scope of the Court’s vexatious

litigant order.” Benjamin Woodhouse v. The United States Government (Woodhouse I),

2:21-cv-06372-SB, Dkt. 81 at 4. Pursuant to his November 24, 2021 vexatious litigant

order, Judge Blumenfeld also revoked plaintiff's e-filing privileges in their entirety.

Woodhouse I, Dkt. 80.

On February 18, 2022, plaintiff filed a second amended complaint. Dkt. 47.

On March 2, 2022, the Court struck plaintiff's first amended complaint to the

extent it brought claims against Nike, Inc., Meta Verse, Inc., and Gibson Dunn Inc., and

struck plaintiff's second amended complaint in its entirety for failure to seek leave to

amend. Dkt. 52. Moreover, on March 2, 2022, on the basis of judicial immunity or

qualified immunity, respectively, the Court dismissed the case as to individual defendants

the Hon. Stanley Blumenfeld Jr., the Hon. R. Gary Klausner, the Hon. Fernando M.

Olguin, the Hon. Manuel L. Real, the Hon. Otis D. Wright II, Daniel Beck, Tracy

Wilkison, David Harris, Joanne Osinoff, the Hon. Philip S. Gutierrez, and the Hon.

Christina A. Snyder. Id. Thus, the operative complaint is the FAC, and Alphabet Inc. is

the only remaining defendant.

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UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:22-cv-00285-CAS Date May 2, 2022

Title Benjamin Woodhouse v. The United States Government et al

On March 22, 2022, Alphabet filed a motion to dismiss plaintiff's complaint for

lack of subject matter jurisdiction under Fed. R. Civ. P. 12(b)(1), and for failure to state a

claim under Fed. R. Civ. P. 12(b)(6). Dkt. 64 (“Mot.”). On March 23, 2022, plaintiff

filed his opposition to Alphabet’s motion to dismiss. Dkt. 68 (“Opp.”).! On April 18,

2022, Alphabet filed its reply. Dkt. 70 (“Reply”).

Having carefully considered the parties’ arguments and submissions, the Court

finds and concludes as follows.

Il. BACKGROUND

The FAC brings the following claims against Alphabet: (1) obstruction and due

process violations; (2) fraud, collusion and civil RICO; and (3) intentional interference

with prospective business and economic relations. See FAC at 16-33. However, the

FAC contains few specific factual allegations against Alphabet. See generally FAC.

Plaintiff's FAC was brought against “Gibson Dunn Inc., Meta Verse Inc., Nike

Inc., and Alphabet Inc., for continued contact of Clients, and Investment Bankers of

Plaintiff's company, after feloniously accessing his email, in addition to claims against

the U.S. Government, for conscripting the Plaintiff, and taking continued and consistent

alleged bribes, in consistently upholding Triple Conflicted Counsel’s plead felonies and

conflicts, in two cases, in a systematic means, which has caused select Quasi National

Security Agency Leaders, and the California Bar to question whether the Federal Court

should still be open, and whether it has any independence of any kind.” FAC at 10-11.

Many of plaintiff's allegations are bizarre and conspiratorial in nature. See, e.g., FAC at

21-22 (“Felonies and criminal conduct, which are plead, and not alleged, can never go

unpunished, because those charged with bestowing justice, have written trite phrases,

proclaiming not to want to take notice of anything. Such a trend, would lead to total

chaos, and require immediate National Security intervention, with a National Security

incarceration protocol.”).

‘In his opposition to Alphabet’s motion to dismiss, plaintiff includes various requests,

including a request for default and a request for reinstatement of electronic filing

privileges. Because including those requests in an opposition to a motion to dismiss is

procedurally improper, the Court STRIKES those requests.

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UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘Oo’

Case No. 2:22-cv-00285-CAS Date May 2, 2022

Title Benjamin Woodhouse v. The United States Government et al

With respect to Alphabet, plaintiff's allegations in this action are centered around

Alphabet’s alleged “fail[ure] to show up and defend” in a previous action, Woodhouse I.

FAC at 11. Plaintiff's FAC asks this Court to “dissolve” Alphabet, and award plaintiff

$3 trillion in damages. Id. at 33.

If. LEGAL STANDARDS

A. Mootion to Dismiss for Lack of Subject Matter Jurisdiction

A motion to dismiss an action pursuant to Fed. R. Civ. P. 12(b)(1) raises the

objection that the federal court has no subject matter jurisdiction over the action. This

defect may exist despite the formal sufficiency of the allegations in the complaint. T.B.

Harms Co. v. Eliscu, 226 F. Supp. 337, 338 (S.D.N.Y. 1964), aff'd 339 F.2d 823 (2d Cir.

1964). When considering a Rule 12(b)(1) motion challenging the substance of

jurisdictional allegations, the Court 1s not restricted to the face of the pleadings, but may

review any evidence, such as declarations and testimony, to resolve any factual disputes

concerning the existence of jurisdiction. See McCarthy v. United States, 850 F.2d 558,

560 (9th Cir. 1988).

Once a Rule 12(b)(1) motion has been raised, the burden is on the party asserting

jurisdiction. Sopcak v. N. Mountain Helicopter Serv., 52 F.3d 817, 818 (9th Cir. 1995):

Ass’n of Am. Med. Coll. v. United States, 217 F.3d 770, 778-79 (9th Cir. 2000). If

jurisdiction is based on a federal question, the pleader must show that he has alleged a

claim under federal law and that the claim is not frivolous. See 5B Charles A. Wright &

Arthur R. Miller, Federal Practice and Procedure, § 1350, pp. 211, 231 (3d ed. 2021). If

jurisdiction is based on diversity of citizenship, the pleader must show real and complete

diversity, and also that his asserted claim exceeds the requisite jurisdictional amount of

$75,000. See id.

B. Motion to Dismiss for Failure to State a Claim

A motion pursuant to Federal Rule of Civil Procedure 12(b)(6) tests the legal

sufficiency of the claims asserted in a complaint. Under this Rule, a district court

properly dismisses a claim if “there is a ‘lack of a cognizable legal theory or the absence

of sufficient facts alleged under a cognizable legal theory.”” Conservation Force v.

Salazar, 646 F.3d 1240, 1242 (9th Cir. 2011) (quoting Balisteri v. Pacifica Police Dep't.

901 F.2d 696, 699 (9th Cir. 1988)).

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UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

ee 2 22-CV-00285-CAS ER May2, 202200

Title Benjamin Woodhouse v. The United States Government et al

“While a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need

detailed factual allegations, a plaintiff's obligation to provide the ‘grounds’ of his

‘entitlement to relief requires more than labels and conclusions, and a formulaic

recitation of the elements of a cause of action will not do.” Bell Atlantic Corp. v.

Twombly, 550 U.S. 544, 555 (2007). “[F]actual allegations must be enough to raise a

right to relief above the speculative level.” Id.

Unless a court converts a Rule 12(b)(6) motion into a motion for summary

judgment, a court cannot consider material outside of the complaint (e.g., facts presented

in briefs, affidavits, or discovery materials). In re American Cont’l Corp./Lincoln Sav. &

Loan Sec. Litig., 102 F.3d 1524, 1537 (9th Cir. 1996), rev’d on other grounds sub nom

Lexecon, Inc. v. Milberg Weiss Bershad Hynes & Lerach, 523 U.S. 26 (1998). A court

may, however, consider exhibits submitted with or alleged in the complaint and matters

that may be judicially noticed pursuant to Federal Rule of Evidence 201. See Lee v. City

of Los Angeles, 250 F.3d 668, 689 (9th Cir. 2001). Where a court converts a motion to

dismiss into a motion for summary judgment, “[a]ll parties must be given a reasonable

opportunity to present all the material that is pertinent to the motion.” Fed. R. Civ. P.

12(d).

IV. DISCUSSION

A. Timeliness of Alphabet’s Motion

In his opposition, plaintiff contends that because Alphabet was served with the

second amended complaint on February 24, 2022, Alphabet’s response was due on March

17, 2022. Opp. at 7. According to plaintiff, because Alphabet did not file this motion to

dismiss until March 22, 2022, Alphabet’s motion “is five days late.” Id.

However, on March 2, 2022, the Court struck plaintiff's second amended

complaint in its entirety for failure to seek leave to amend. Dkt. 52. Accordingly, the

appropriate calculation is based on the date Alphabet was served with the operative first

amended complaint and notice of summons. The record shows that plaintiff never served

Alphabet with a summons on the operative FAC. See Dkt. 70-2.

While Alphabet’s registered agent was served with a summons on the second

amended complaint on February 24, 2022, dkt. 70-3, the second amend complaint was

stricken because plaintiff did not have leave to file it, rendering service of the second

amended complaint on Alphabet a nullity. Even if it could be argued that Alphabet was

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UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:22-cv-00285-CAS Date May 2, 2022

Title Benjamin Woodhouse v. The United States Government et al

required to file its motion by March 17, 2022, the Court retains the discretion to enlarge

the time in which to file the motion to dismiss because Alphabet submitted evidence

suggesting that it did not receive the summons on the second amended complaint from its

registered agent until March 21, 2022. See Dkt. 70-1 (Declaration of Nadia Granke) 4 5:

see also Creager v. Columbia Debt Recovery, LLC, No. 2:21-cv-00431-BJR, 2021 WL

3187596, at *1 n.1 (W.D. Wash. July 28, 2021) (“[T]he Court may consider an untimely

motion to dismiss if the defendant is not in default.”). Accordingly, the Court finds it

appropriate to consider Alphabet’s motion to dismiss.

B. Rule 12(b)(6)

1. Obstruction and Violations of Due Process

Plaintiff's first claim for relief alleges “obstruction and due process violations”

against Alphabet. FAC at 16.

Plaintiff's claim for obstruction of justice fails because there is no private right of

action for obstruction of justice. See Fisher v. Hug, No. C-01-0578 VRW, 2001 WL

210478, at *1 (N.D. Cal. Feb. 23, 2001) (finding that there is no private right of action for

obstruction of justice).

The Court interprets plaintiffs claim for “due process violations” as an attempt to

assert a claim under 42 U.S.C. § 1983. To state a claim under section 1983, plaintiff

must allege two elements: “(1) violation of his rights secured by the Constitution or laws

of the United States and (2) the alleged deprivation of his rights was committed by a

person acting under the color of state law.” Fisher, 2001 WL 210478, at *2. Here,

plaintiff's due process claim fails because plaintiff does not allege that Alphabet is a

government actor, or that Alphabet acted under the color of state law. See Feng v. Cty.

of Santa Clara, No. 19-cv-06877-LB, 2019 WL 7194475, at *6 (N_D. Cal. Dec. 26, 2019)

(“Purely private conduct, no matter how wrongful, is not covered under § 1983.”)

(internal citations and quotation marks omitted). Accordingly, plaintiff fails to state a

claim for “due process violations.”

2. Fraud, Collusion, and Civil RICO

Plaintiff's second claim alleges fraud, collusion, and civil RICO violations against

Alphabet. FAC at 22.

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UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:22-cv-00285-CAS Date May 2, 2022

Title Benjamin Woodhouse v. The United States Government et al

“Claims for fraud and negligent misrepresentation must meet the heightened

pleading requirements of Rule 9(b).” Glen Holly Ent. Inc. v. Tektronix, Inc., 100 F.

Supp. 2d 1086, 1093 (C.D. Cal. 1999): see Fed. R. Civ. P. 9(b) (“In alleging fraud or

mistake, a party must state with particularity the circumstances constituting fraud or

mistake.”). Accordingly, “when averments of fraud are made, the circumstances

constituting the alleged fraud [must] be specific enough to give defendants notice of the

particular misconduct . . . so that they can defend against the charge and not just deny that

they have done anything wrong.” Vess v. Ciba-Geigy Corp. USA, 317 F.3d 1097, 1106

(9th Cir. 2003) (internal citations and quotation marks omitted). “Averments of fraud

must be accompanied by ‘the who, what, when, where, and how’ of the misconduct

charged.” Id. “To plead a fraud claim, a party must allege (1) a knowingly false

representation or fraudulent omission by the defendant; (2) an intent to deceive or induce

reliance; (3) justifiable reliance by the plaintiff; and (4) resulting damages.” UMG

Recordings, Inc. v. Glob. Eagle Ent., Inc., 117 F. Supp. 3d 1092, 1109 (C.D. Cal. 2015).

Here, plaintiffs fraud claim fails because plaintiff does not allege any of the elements of

a fraud claim against Alphabet.

Plaintiff's collusion claim fails because collusion is not an independent cause of

action under California law. See Lewis v. Wells Fargo Bank, N.A., No. LA CV 12-

04540 JAK (SPx), 2012 WL 12897041, at *2 (C_D. Cal. Sept. 12, 2012) (dismissing

plaintiff's claim for collusion with prejudice).

Finally, plaintiff's civil RICO claims fails because plaintiff fails to allege the

required elements of such claim, 1.¢., that “(1) conduct (2) of an enterprise (3) through a

pattern (4) of racketeering activity (5) caus/ed] injury to plaintiffs’ ‘business or

property.’” Ove v. Gwinn, 264 F.3d 817, 825 (9th Cir. 2001) (quoting 18 U.S.C. §

1964(c)). Although plaintiff's complaint alleges that “the Triple Conflicted Clients . . .

engaged in a pattern of alleged racketeering,” and that “there has been racketeering,

between the U.S. Attorney, Court and Conflicted Counsels,” FAC at 24, 26, the FAC

never alleges that Alphabet engaged in racketeering. Additionally, plaintiff does not

allege that it suffered any injury proximately caused by Alphabet’s racketeering activity.

See Rezner v. Bayerische Hypo-Und Vereinsbank AG, 630 F.3d 866, 873 (9th Cir. 2010)

(“To have standing under civil RICO, [a plaintiff] 1s required to show that the

racketeering activity was both a but-for cause and a proximate cause of his injury.”).

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UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:22-cv-00285-CAS Date May 2, 2022

Title Benjamin Woodhouse v. The United States Government et al

3. Intentional Interference with Prospective Business and Economic

Relations

Plaintiffs third and final claim for relief alleges intentional interference with

prospective business and economic relations against Alphabet. FAC at 29.

“T|he elements of a cause of action for intentional interference with prospective

economic relations (“ITPER”’) under California law are: “(1) an economic relationship

between the plaintiff and some third party, with the probability of future economic

benefit to the plaintiff; (2) the defendant’s knowledge of the relationship; (3) intentional

[wrongful] acts on the part of the defendant designed to disrupt the relationship; (4)

actual disruption of the relationship; and (5) economic harm to the plaintiff proximately

caused by the acts of the defendant.’” Pro Water Sol. Inc. v. Angie's List, Inc., 457 F.

Supp. 3d 845, 852 (C.D. Cal. 2020) (quoting Sybersound Records, Inc. v. VAV Corp.,

517 F.3d 1137, 1151 (9th Cir. 2008)). Plaintiff's ITPER claim fails because, as Alphabet

correctly notes, plaintiff “fails to identify any economic relationship between Plaintiffs

and any third party with the prospect of economic benefit to Plaintiffs that was known to

Alphabet sufficient to satisfy the first and second claim elements.” Mot. at 25.

C. Rule 12(b)(1)

Defendants argue that the FAC should be dismissed for lack of subject matter

jurisdiction because there is no federal question jurisdiction given that plaintiff's claims

are “‘obviously frivolous,’” and because there is no diversity jurisdiction given that

plaintiff and Alphabet are citizens of California. Mot. at 16-17.

In opposition, plaintiff argues that there is federal jurisdiction because a federal

civil RICO claim has been alleged, and because “Havensight and [] Woodhouse are

citizens of the [U.S. Virgin Islands] while Alphabet Inc. is a citizen of California.” Opp.

at 9.

Plaintiff has not met its burden of establishing that diversity jurisdiction exists.

Alphabet is a citizen of California, and although plaintiff contends that Woodhouse and

Havensight Capital are citizens of the U.S. Virgin Islands, he has failed to submit

evidence to that effect. In Havensight Capital, LLC v. Facebook Inc., No. CV 15-3758

FMO (MRWx), 2015 WL 3948380 (C.D. Cal. June 29, 2015), the court concluded that

“Woodhouse’s ties to California are far more significant” than his ties to the U.S. Virgin

Islands, and that, therefore, “Woodhouse has not met his burden of establishing diversity

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UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CIVIL MINUTES —- GENERAL ‘O’

Case No. 2:22-cv-00285-CAS Date May 2, 2022

Title Benjamin Woodhouse v. The United States Government et al

jurisdiction.” Id. at *7. Here, neither the FAC nor plaintiff's opposition to Alphabet’s

motion to dismiss provide any evidentiary basis for concluding that Woodhouse and

Havensight Capital are citizens of the U.S. Virgin Islands.

However, while “federal courts are without power to entertain claims otherwise

within their jurisdiction if they are so attenuated and unsubstantial as to be absolutely

devoid of merit,” Hagans v. Lavine, 415 U.S. 528, 536 (1974), if plaintiff could

adequately plead a civil RICO claim, that claim would provide federal question

jurisdiction. Concluding that plaintiffs civil RICO claim is absolutely devoid of merit,

without granting plaintiff an opportunity to amend the FAC, is premature.

Accordingly, a finding that the Court lacks subject matter jurisdiction over this

case 1s Inappropriate at this time.

D. Leave to Amend

Alphabet argues that the FAC “should be dismissed with prejudice because the

defects in Plaintiffs’ claims cannot be remedied with further pleading.” Mot. at 27.

“A court should ‘freely give leave [to amend] when justice so requires.’” Carrico

v. City & Cty. of San Francisco, 656 F.3d 1002, 1008 (9th Cir. 2011) (quoting Fed. R.

Civ. P. 15(a)(2)). While leave to amend is “properly denied” where “amendment would

be futile,” Carrico, 656 F.3d at 1008, granting plaintiff an opportunity to amend the FAC

is appropriate here given that plaintiff is appearing pro se.

V. CONCLUSION

In accordance with the foregoing, the Court DISMISSES plaintiffs first amended

complaint. Plaintiff must submit an amended complaint on or before May 31, 2022.

IT IS SO ORDERED.

00 : 00

Initials of Preparer CMI

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