Multifamily Captive Group, LLC v. Assurance Risk Managers, Inc.

MEMORANDUM AND ORDER

This matter is before the court on defendant California Apartment Association’s (“CAA” or “defendant”) motion to dismiss plaintiffs’ First Amended Complaint, pursuant to Federal Rule of Civil Procedure 12(b)(6). Plaintiffs Multifamily Captive Group, LLC and Samantha Gumenick (collectively “plaintiffs”) oppose the motion. For the reasons set forth below, defendant’s motion to dismiss is GRANTED in part and DENIED in part.

BACKGROUND

Multifamily Captive Group, LLC (“Multifamily”) is a Maryland corporation offering insurance programs for the multifamily real estate property manager or owner. (FAC ¶ 10). Samantha Gumenick (“Gu-menick”) is the sole operator and managing partner of Multifamily. (Id. ¶ 2). Gu-menick is licensed to sell insurance in California by the California Department of Insurance. (Id.)

On or about February 7, 2006, CAA engaged plaintiffs to develop a new workers compensation insurance program for CAA to provide to its members. (Id. ¶ 13). Plaintiffs were to be compensated for this work on behalf of CAA based on commissions derived from the value of the insurance program. (Id.) CAA later authorized plaintiffs to exclusively market the workers…