Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-ca11-14-10948/USCOURTS-ca11-14-10948-0/pdf.json

Nature of Suit Code: 370
Nature of Suit: Other Fraud
Cause of Action: 

---

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT

________________________

No. 14-10948

________________________

D.C. Docket No. 1:13-cv-01588-SCJ

PARESH PATEL, 

 Plaintiff - Appellant,

 versus

DIPLOMAT 1419VA HOTELS, LLC, et al., 

 Defendants - Appellees.

________________________

Appeal from the United States District Court

for the Northern District of Georgia

________________________

(June 3, 2015)

Before HULL and BLACK, Circuit Judges, and ANTOON,

∗ District Judge.

PER CURIAM: 

 ∗ The Honorable John Antoon II, United States District Judge for the Middle District of 

Florida, sitting by designation. 

USCA11 Case: 14-10948 Date Filed: 06/03/2015 Page: 1 of 5
2

Paresh Patel1 appeals the district court’s order dismissing his claims on 

various grounds, including the statute of limitations. Because we find that the 

district court erred in not granting Paresh leave to amend the complaint, we reverse 

and remand this case.

Paresh alleged in his complaint that appellees R.C. and Mike Patel formed 

Diplomat 1419VA Hotels, LLC2 for the purpose of acquiring and owning a

particular hotel property. Paresh alleged that R.C. and Mike solicited him and his 

father to invest in Diplomat 1419VA. Anticipating that Diplomat 1419VA would 

purchase the hotel, Paresh and his father invested $450,000 in Diplomat 1419VA

on behalf of Paresh’s mother. In the end, Diplomat 1419VA did not acquire title to 

the hotel; instead, the hotel was acquired by RM Hotels, Inc., an entity partially 

owned by R.C. and Mike. R.C. and Mike hid this acquisition from Paresh and his 

mother. R.C. and Mike also burdened Diplomat 1419VA with debts and expenses 

that were unrelated to its operations. Paresh sued Diplomat 1419VA, R.C., Mike, 

and others in 2013, filing a ten-count complaint, including claims of fraud, 

fraudulent transfer, and breach of fiduciary duty.

 1 Two appellees—Rajesh C. (“R.C.”) Patel and Mukesh C. (“Mike”) Patel—have the same last 

name as Appellant. For simplicity, we refer to the individual parties using their first names.

2 Two other appellees are similarly named entities—Diplomat Companies, LLC and Diplomat 

PB Hotels, LLC. However, the only entity relevant to this opinion is Diplomat 1419VA Hotels, 

LLC. 

USCA11 Case: 14-10948 Date Filed: 06/03/2015 Page: 2 of 5
3

In the complaint, Paresh alleged that appellees’ actions giving rise to the 

lawsuit began between 2000 and 2002. He further alleged that R.C. sent him a 

letter in 2002 confirming the capital contribution, ownership interest, and interest 

payments and stating that a closing of the property at issue had occurred. Paresh

alleged that he “was not aware of the . . . facts regarding [appellees’] misconduct, 

and could not have reasonably learned of the existence of these facts, until 2012.” 

Appellees moved to dismiss the complaint on several grounds, including that 

the statute of limitations barred the lawsuit. The district court dismissed Paresh’s

claims of fraud, fraudulent transfer, and breach of fiduciary duty based on the 

statute of limitations.

3

 Paresh argues on appeal that the district court erred in 

dismissing these claims with prejudice and in not allowing Paresh the opportunity 

to amend the complaint. 

Because the statute of limitations bar is an affirmative defense, granting a 

motion to dismiss on this basis “is appropriate only if it is apparent from the face 

of the complaint that the claim is time-barred.” La Grasta v. First Union Sec., Inc., 

358 F.3d 840, 845 (11th Cir. 2004) (quotation marks omitted); accord Douglas v. 

Yates, 535 F.3d 1316, 1321 (11th Cir. 2008). Here, the dates alleged in the 

 3 The district court applied a four-year statute of limitations to Paresh’s fraud and breach of 

fiduciary duty claims, and it applied a statute of limitations of “four years after the transfer was 

made or the obligation was incurred or, if later, within one year after the transfer or obligation 

was or could reasonably have been discovered by the claimant” to Paresh’s fraudulent transfer 

claim. Appellees set forth an alternative one-year statute of limitations for fraudulent transfer 

claims, but the parties do not otherwise argue that the statutes of limitations applied by the 

district court were incorrect.

USCA11 Case: 14-10948 Date Filed: 06/03/2015 Page: 3 of 5
4

complaint make it clear that the statute of limitations bars Paresh’s claims unless 

Paresh alleged facts supporting tolling of the statute of limitations. Paresh’s 

complaint attempts to do that. But Paresh’s allegation that he “could not have 

reasonably learned” of the facts on which his claim is based until 2012, without 

more, is insufficient to satisfy the pleading requirements as to tolling. 

The district court did err, however, in not granting Paresh leave to amend. 

The district court dismissed the complaint and directed the Clerk to close the case 

without addressing whether Paresh should be given leave to replead his claims. 

Paresh requested that he be given an opportunity to amend the complaint, which 

had not been previously amended.

Federal Rule of Civil Procedure 15(a) directs that district courts give leave 

to amend freely “when justice so requires.” See Bryant v. Dupree, 252 F.3d 1161, 

1163 (11th Cir. 2001). “Generally, ‘[w]here a more carefully drafted complaint 

might state a claim, a plaintiff must be given at least one chance to amend the 

complaint before the district court dismisses the action with prejudice.’” Id.

(alteration in original) (quoting Bank v. Pitt, 928 F.2d 1108, 1112 (11th Cir. 

1991)). In this case, a more carefully drafted complaint might have cured at least 

some of the pleading defects. 

USCA11 Case: 14-10948 Date Filed: 06/03/2015 Page: 4 of 5
5

Accordingly, the district court’s order dismissing the complaint with 

prejudice is reversed, and the case is remanded to allow Paresh the opportunity to 

amend the complaint.

REVERSED AND REMANDED.

USCA11 Case: 14-10948 Date Filed: 06/03/2015 Page: 5 of 5