5th LLC v. Kemah Capital Holdings, LLC d/b/a Kemah Marine and Clear Spring Property and Casualty Company

District Court, W.D. Oklahoma·Decided March 10, 2026·No. 5:25-cv-00364·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA

5th LLC, ) ) Plaintiff, ) ) v. ) Case No. CIV-25-364-D ) KEMAH CAPITAL HOLDINGS, LLC ) d/b/a KEMAH MARINE and ) CLEAR SPRING PROPERTY and ) CASUALTY COMPANY, ) ) Defendants. )

ORDER Before the Court is Defendant Kemah Capital’s Motion to Dismiss the First Amended Complaint [Doc. No. 15].1 Plaintiff responded [Doc. No. 20],2 to which Defendant filed a reply [Doc. No. 23]. Defendant seeks dismissal under FED. R. CIV. P. 12(b)(1), 12(b)(2), and 12(b)(6). The matter is fully briefed and at issue. BACKGROUND Plaintiff brought this action against Defendants in Oklahoma County state court on December 20, 2023 [Doc. No. 1-2]. The case was removed to this Court on March 28, 2025 [Doc. No. 1]. In its amended complaint, Plaintiff asserts a claim for breach of contract against both Defendants [Doc. No. 12]. In the instant motion, Defendant Kemah moves to

1 In the instant motion, Defendant asserts that its name is improperly reflected in the petition. In this Order and all further filings in this case, the caption shall be corrected to reflect Defendant’s proper name as reflected in the updated caption herein. 2 Defendant Clear Spring Property and Casualty Company (Clear Spring) also filed a response to Defendant Kemah Capital’s (Kemah) motion to dismiss, agreeing that Defendant Kemah should be dismissed from this action [Doc. No. 17]. dismiss the claim against it arguing that the Court lacks personal jurisdiction over it; the Court lacks subject matter jurisdiction over the action; and Plaintiff fails to state a claim upon which relief can be granted.

PLAINTIFF’S ALLEGATIONS At issue here is an insurance policy Plaintiff purchased for its Moonen 83 yacht (the Yacht). Plaintiff alleges that Kemah and Clear Spring issued an insurance policy (the Policy) for the Yacht providing coverage from October 27, 2022, through October 27, 2023 [Doc. No. 12, ¶ 6]. On or about December 24, 2022, the Yacht was damaged from seawater

entering the vessel—damage that Plaintiff alleges is covered under the Policy. Id. ¶ 23. Plaintiff filed a claim under the Policy, but the claim was denied three separate times. Id. ¶¶ 24-26. Each denial letter mentioned Kemah; was signed by Karen MacMonagle, a claims manager who held herself out as a “Representative of Kemah Marine on behalf of Clear Spring Property & Casualty Insurance”; and copied Daniel

Hatch, a Kemah employee, on the email containing the letter. Id. ¶¶ 27-30. Further, the first denial letter stated that Kemah, on behalf of Clear Spring, completed the investigation and denied coverage under the Policy for Plaintiff’s claim. Id. ¶ 27. The second denial letter stated that Kemah affirmed its denial of Plaintiff’s claim. Id. ¶ 28. After the second denial, Kemah’s representative, Ms. MacMonagle, stated that she “d[id] not see a reason to have

a call to discuss the claim” because they “have made their position clear and have sent two denial letters.” Id. ¶ 29. Kemah asserts that it entered into an agreement with Clear Spring whereby Kemah “‘would market, broker and underwrite insurance on Clear Spring’s behalf’ and that ‘Kemah Capital was authorized to underwrite policies on Clear Spring’s behalf, but not to adjust, settle, or deny any claims.’” Id. ¶ 14 (quoting [Doc. No. 10, at 1, 3]). Plaintiff claims it did not know the relationship between Kemah and Clear Spring prior to the issuance of

the Policy and is still unaware of the nature of this relationship. Id. ¶ 15. Plaintiff alleges that the handling of its claim was done in breach of the implied covenant of good faith and fair dealing and was done in bad faith. Id. ¶ 31. DISCUSSION I. Kemah is subject to personal jurisdiction in Oklahoma.

“Although plaintiff bears the burden of establishing personal jurisdiction over defendant, . . . in the preliminary stages of litigation this burden is ‘light.’” Intercon, Inc. v. Bell Atl. Internet Sols., 205 F.3d 1244, 1247 (10th Cir. 2000) (citing Wenz v. Memery Crystal, 55 F.3d 1503, 1505 (10th Cir. 1995)). “When a district court rules on a Fed. R. Civ. P. 12(b)(2) motion to dismiss for lack

of personal jurisdiction without holding an evidentiary hearing, . . . the plaintiff need only make a prima facie showing of personal jurisdiction to defeat the motion.” OMI Holdings, Inc. v. Royal Ins. Co. of Can., 149 F.3d 1086, 1091 (10th Cir. 1998) (citing Kuenzle v. HTM Sport-Und Freizeitgerate AG, 102 F.3d 453, 456 (10th Cir. 1996)). “The plaintiff may make this prima facie showing by demonstrating, via affidavit or other written materials, facts

that if true would support jurisdiction over the defendant.” Id. “[A] defendant must present a compelling case demonstrating ‘that the presence of some other considerations would render jurisdiction unreasonable’” to defeat Plaintiff’s prima facie showing. Id. (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 471-72 (1985)). “The plaintiff has the duty to support jurisdictional allegations in a complaint by competent proof of the supporting facts if the jurisdictional allegations are challenged by an appropriate pleading.” Pytlik v. Prof. Res., Ltd., 887 F.2d 1371, 1376 (10th Cir. 1989)

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5th LLC v. Kemah Capital Holdings, LLC d/b/a Kemah Marine and Clear Spring Property and Casualty Company, (W.D. Okla. 2026).

5th LLC v. Kemah Capital Holdings, LLC d/b/a Kemah Marine and Clear Spring Property and Casualty Company (5th LLC v. Kemah Capital Holdings, LLC d/b/a Kemah Marine and Clear Spring Property and Casualty Company) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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