UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

SOUTHERN DIVISION

IRA RESOURCES, INC. FBO

GARY S. HANN IRA ACCOUNT NO. 21195

BY SOLE BENEFICIARY GARY S. HANN,

Plaintiff,

Case No. 09-CV-13567 

vs. HON. GEORGE CARAM STEEH

DEUTSCHE BANK NATIONAL TRUST, et al., 

Michigan LLC,

Defendant.

_____________________________/

ORDER GRANTING GARY HANN'S MOTION TO PROCEED

IN FORMA PAUPERIS (#2), AND DISMISSING CLAIMS PURSUANT TO

28 U.S.C. § 1915(e)(2)(B)(i) and (ii)

Gary Hann filed a pro se complaint on behalf of IRA Resources, Inc., for the benefit

of Gary S. Hann IRA Account No. 21195 by sole beneficiary Gary Hann, and his own

application to proceed without prepayment of fees on September 10, 2009. Consistent with

Hann's accompanying affidavit, the court is persuaded he is unable to pay the fees

associated with the filing of the complaint. Accordingly, Hann's application to proceed

without the prepayment of fees, or in forma pauperis ("IFP"), is hereby GRANTED. See

28 U.S.C. § 1915(a)(1).

IRA Resources, Inc. alleges that defendants Deutsche Bank National Trust and G8

Capital Fund VI are the owners of a parcel of property known as 19 S. Grove, Ypsilanti,

Michigan 48197. Defendant Adam Butler is allegedly a managing partner of G8 Capital

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Fund VI. Defendants Glenn Silvenis and ReMax Crossroads III are alleged listing agents

of the Ypsilanti property. Western Wayne Oakland County Association of Realtors and Ann

Arbor Area Board of Realtors are also named as defendants. IRA Resources, Inc. alleges

that it entered into a non-contingent Purchase Agreement with a "seller" on June 9, 2009

to purchase the Ypsilanti property, depositing $1,000.00 as earnest money with Real Estate

One. IRA Resources, Inc. alleges that "[d]espite no contingencies and ordering a full

closing package, defendants refused to show up for closing or to take any mitigating action

as permitted by law. Defendants have ignored all respectful efforts by Plaintiff to proceed

and have greatly harmed Plaintiff's ERISA retirement." Count I alleges violations of "ERISA

AND THE IRS CODE." Count II alleges violations of "REAL ESTATE LAW AND

PRACTICE" under Michigan law. Count III alleges "BREACH OF CONTRACT." Count IV

alleges the defendants violated "federal banking and TARP and TALF and other

regulations[.]" Federal question jurisdiction is invoked premised on "the Internal Revenue

Code and ERISA and banking law . . . , purely federal laws[.]" 

Pursuant to 28 U.S.C. § 1915(e)(2)(B)(i) and (ii), this court must dismiss IRA

Resources, Inc.'s IFP claims upon determining that the claims are frivolous or fail to state

a claim on which relief may be granted. McGore v. Wrigglesworth, 114 F.3d 601, 612 (6th

Cir. 1997). To state an actionable claim upon which relief may be granted, the claim's

"factual allegations must be enough to raise a right to relief above the speculative level on

the assumption that all of the allegations in the complaint are true." Ass’n of Cleveland Fire

Fighters v. City of Cleveland, 502 F.3d 545, 548 (6th Cir. 2007) (citing Bell Atlantic Corp.

v. Twombly, ___ U.S. ___, 127 S. Ct. 1955, 1965 (2007)). The claim for relief must provide

"more than labels and conclusions, and a formulaic recitation of the elements of a cause

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of action will not do." Id. (quoting Bell Atlantic, 127 S. Ct. at 1964-65) (citations and

quotations omitted).

Only natural persons may apply for IFP status. Rowland v. California Men's Colony,

Unit II Men's Advisory Counsel, 506 U.S. 194, 196 (1993). Further, "[i]t has been the law

for the better part of two centuries . . . that a corporation may appear in the federal courts

only through licensed counsel." Id. at 201-202. Although the court has approved Gary

Hann's application for IFP status, plaintiff IRA Resources, Inc. cannot appear in this court

through Hann; Hann does not represent that he is a licensed attorney. Id. For this reason

alone, IRA Resources, Inc.'s complaint must be dismissed.

Alternatively, IRA Resources, Inc.'s claims are subject to dismissal as frivolous and

for failing to state a claim on which relief may be granted. The complaint does not allege

a plausible claim under the Employee Retirement Income Security Act ("ERISA"), 29 U.S.C.

§ 1001, et seq., the "IRS CODE" or "federal banking and TARP and TALF and other

regulations[.]" Plaintiff's mere conclusionary invocation of federal laws and regulations is

insufficient to allege a plausible federal claim. Ass’n of Cleveland Fire Fighters, 502 F.3d

at 548. 

In summary, IRA Resources, Inc. cannot appear in this action through IFP applicant

Gary Hann as a matter of law. Rowland, 506 U.S. at 201-202. IRA Resources, Inc.'s

complaint also fails to state a federal claim upon which relief may be granted. Ass’n of

Cleveland Fire Fighters, 502 F.3d at 548. IRA Resources, Inc.'s attempt to turn an

allegedly failed real estate transaction into a federal claim is also frivolous. Pursuant to §

1915(e)(2)(B)(i) and (ii), IRA Resources, Inc.'s federal claims must be dismissed. McGore,

114 F.3d at 612. This court lacks federal question subject matter jurisdiction over IRA

Resources, Inc.'s remaining state law claims. Accordingly,

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Plaintiff IRA Resources, Inc.'s federal claims are hereby DISMISSED pursuant to 28

U.S.C. § 1915(e)(2)(B)(i) and (ii). IRA Resources, Inc.'s state law claims are hereby

DISMISSED without prejudice for lack of federal subject matter jurisdiction.

SO ORDERED.

Dated: September 14, 2009

s/George Caram Steeh 

GEORGE CARAM STEEH

UNITED STATES DISTRICT JUDGE

CERTIFICATE OF SERVICE

Copies of this Order were served upon attorneys of record on

September 14, 2009, by electronic and/or ordinary mail.

s/Josephine Chaffee

Deputy Clerk

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