Alamo Intermediate II Holdings, LLC v. Birmingham Alamo Movies, LLC.

CourtDistrict Court, W.D. Texas
DecidedApril 25, 2024
Docket5:23-cv-01531
StatusUnknown

This text of Alamo Intermediate II Holdings, LLC v. Birmingham Alamo Movies, LLC. (Alamo Intermediate II Holdings, LLC v. Birmingham Alamo Movies, LLC.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alamo Intermediate II Holdings, LLC v. Birmingham Alamo Movies, LLC., (W.D. Tex. 2024).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION

ALAMO INTERMEDIATE II HOLD- INGS, LLC,

Plaintiff,

v. Case No. SA-23-CV-01531-JKP

BIRMINGHAM ALAMO MOVIES, LLC, ORCHESTRA PARTNERS DE- VELOPMENT, LLC, MR. HUNTER RENFROE,

Defendants.

MEMORANDUM OPINION AND ORDER Before the Court is Defendant Hunter Renfroe’s Motion to Dismiss for Lack of Personal Jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2). ECF Nos. 24,28. Plaintiff Al- amo Intermediate Holdings (Alamo) responded. ECF No. 27. Upon consideration, the Court con- cludes the Motion is DENIED. Undisputed Factual Background In January 2022, Alamo, as the named franchisor, and Birmingham Alamo Movies (BAM), as the named franchisee, entered into a Franchise Agreement under which Defendants sought to develop an Alamo Drafthouse venue in Birmingham, Alabama. Under the Franchise Agreement, Defendant Orchestra Partners Development, LLC (“Orchestra”) agreed to act as the project developer and signed a separate Corporate Guaranty Agreement. Defendant Hunter Ren- froe, co-owner of BAM and Orchestra, and the Operating and Controlling Principal under the Franchise Agreement, signed all documents on behalf of, and as representative of BAM and signed the Corporate Guaranty Agreement as representative of Orchestra. Pertinent to this Mo- tion, the Franchise Agreement contains a clause which states, The parties mutually agree that the U.S. District Court for the Western District of Texas, or if such court lacks jurisdiction, the state courts located in Travis Coun- ty, Texas, shall be the venue and exclusive forum in which to adjudicate any suit, proceeding, claim, demand, investigation, or inquiry, formal or informal (collec- tively, an “Action”) arising from or relating to this Agreement and any related guarantees or undertakings, and the relationship established thereby, however, with respect to any Action which seeks injunctive relief or other extraordinary re- lief, Franchisor may bring such Action in any court of competent jurisdiction. The parties irrevocably submit to the jurisdiction of such courts and waive any objec- tions to either the jurisdiction of or venue in such courts. The parties mutually agree that personal jurisdiction may be effected by service of process and that when so made shall be as if served personally.

ECF No. 18-1, Franchise Agreement, par. 18.9 (emphasis added).

When development of the franchise Alamo Drafthouse venue failed, Alamo filed this suit asserting a cause of action for breach of contract against BAM for violation of the Franchise Agreement, a cause of action for breach of contract against Orchestra for breach of the Corporate Guaranty Agreement, and a cause of action for breach of contract against Renfroe in his individ- ual capacity for violation of the Franchise Agreement. Renfroe now files this Motion to Dismiss for Lack of Personal Jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2) in which he asserts this Court does not hold personal jurisdiction over him, individually. Issues to be Determined Federal Rule 12(b)(2) governs dismissal for lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2); Alvarado v. Envolve Client Services Group, LLC, 653 F.Supp.3d 351, 354 (W.D. Tex. 2023). Typically, when presented with such a motion, a court must determine whether the forum state’s long-arm statue confers personal jurisdiction and then determine whether the exercise of jurisdiction would be consistent with due process. See, e.g., Alvarado, 653 F.Supp.3d at 354; Pa- tel v. Pacific Life Ins. Co., No. 3:08-CV-0249-B, 2009 WL 1456526, *21 (N.D. Tex. May 22, 2009). Here, however, the parties dispute whether Renfroe as an individual is bound by the terms and conditions of the Franchise Agreement which contains a forum selection clause and waiver of jurisdictional challenge. Specifically, Renfroe contends this Court lacks personal jurisdiction over him because he is a resident of Alabama, has no contact within the State of Texas to confer

personal jurisdiction, and he is not a party to the Franchise Agreement which contains a forum selection clause and waiver of jurisdiction. In making this argument, Renfroe begins with the premise he is not a party to, and therefore, not bound by the terms of the Francise Agreement. Then, based upon this premise, contends this Court does not have personal jurisdiction over him, as an individual. This Motion and Renfroe’s arguments, as presented, present two separate issues for this Court’s determination. First, whether Renfroe, as a non-signatory individual, is bound by the terms of the Franchise Agreement. Second, whether this Court holds personal jurisdiction over Renfroe. Because the Franchise Agreement contains a forum selection clause and waiver of ju-

risdictional challenge, this Court must determine, first, whether Renfroe is bound by its terms. Determination of this issue will direct whether this Court reaches Renfroe’s challenge to person- al jurisdiction. Discussion Issue One: Contract Construction: Whether Renfroe is Bound by the Terms of the Fran- chise Agreement

Renfroe contends he is not a party, nor an individual signatory, to the Franchise Agree- ment, and therefore, cannot be bound by any forum selection clause contained therein. Renfroe argues that, by its clear language, this clause only applies to the “parties,” and, as an individual, he is not a party to the Franchise Agreement. In addition, Renfroe contends he cannot be sued individually because he signed the Franchise Agreement only in his representative capacity for BAM and signed the corporate Guaranty only in his representative capacity for Orchestra.1 As representative, only, Renfroe contends he agreed to the forum selection clause for BAM and Or- chestra, only. Legal Standard

1. Governing Law A federal court sitting in diversity applies Texas law in the interpretation of contracts ne- gotiated, drafted, and executed in Texas. Erie R.R. Co. v. Tompkins, 304 U.S. 64, 78–79 (1938); Weber v. PACT XPP Techs., AG, 811 F.3d 758, 770 (5th Cir. 2016). This case, therefore, re- quires application of Texas contract law in the Court’s interpretation of the Franchise Agree- ment. 2. Rules of Construction “Parties to a contract are the signatories to the contract or those who have otherwise indi- cated their consent to be bound by the contractual promises.” Harris v. Meridian Sec. Ins. Co.,

No. 4:19-CV-00507-P, 2019 WL 5457027, at *3 (N.D. Tex. Oct. 24, 2019)(citing Willis v. Don- nelly, 199 S.W.3d 262, 271–72 (Tex. 2006)(holding this general principle but finding the non- signatory was not a party to the contract because consent was not otherwise indicated); Germa- nia Farm Mut. Ins. Co. v. Deere & Co., No. 2:19-CV-227-Z-BR, 2020 WL 10897965, at *2 (N.D. Tex. Aug. 31, 2020). To interpret the meaning of a contract, Texas courts look first to the written instrument as a whole, its “four corners,” to ascertain the intent of the parties. In its use of the “four corners

1 In making his arguments, Renfroe conflates the concept of viability of a breach of contract cause of action against him individually with the issue whether he individually is bound by the Franchise Agreement terms.

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Alamo Intermediate II Holdings, LLC v. Birmingham Alamo Movies, LLC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/alamo-intermediate-ii-holdings-llc-v-birmingham-alamo-movies-llc-txwd-2024.