Allied Services, LLC v. Smash My Trash, LLC

District Court, W.D. Missouri·Decided August 2, 2021·No. 4:21-cv-00249·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MISSOURI WESTERN DIVISION

ALLIED SERVICES, LLC, ) d/b/a Republic Services of Kansas City, ) ) Plaintiff, ) ) v. ) Case No. 21-cv-00249-SRB ) SMASH MY TRASH, LLC, et al., ) ) Defendants. )

ORDER Before the Court is the Motion of Defendants Smash Franchise Partners, LLC, and SMT KC LLC, for Dismissal of Counts II, III, IV, and V of Plaintiff’s Complaint, and Motion of Defendant Smash My Trash, LLC, for Dismissal for Lack of Personal Jurisdiction. (Doc. #20.) Also before the Court is Plaintiff’s Motion to Amend With Suggestions in Support. (Doc. #33.) As set forth below, Defendants’ Motion to Dismiss (Doc. #20) is GRANTED IN PART and DENIED IN PART. Plaintiff’s Motion to Amend (Doc. #33) is DENIED. I. FACTUAL BACKGROUND Because this matter comes before the Court on a motion to dismiss, the following allegations in Plaintiff Allied Services, LLC, d/b/a Republic Services of Kansas City’s (“Republic”) Complaint (Doc. #2) are taken as true. Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009); see also Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007). Additional allegations and facts relevant to the pending motions are discussed in Section III. Republic provides waste and recycling services to business and residential customers in the Kansas City metropolitan area. Republic owns dumpsters and open top roll-off waste containers (the “Equipment”) and supplies the Equipment to its customers. The Equipment is designed and constructed only to collect a customer’s ordinary waste. Republic and its business customers typically enter into a Customer Services Agreement (the “Agreement”).1 The Agreement provides that Republic will haul away the customer’s waste at a scheduled time. The Agreement provides in part that the Equipment is Republic’s property and that the customer is liable for any loss or damage to the Equipment.

Defendant Smash Franchise Partners, LLC (“Smash Franchise”), Smash My Trash LLC (“SMT”), and SMT KC LLC (“SMT KC”) (collectively, “Smash”) provide mobile waste compacting services in the Kansas City metropolitan area. Smash compacts trash for its customers by using “Smash Machines.” (Doc. #2, ¶ 32.) Smash Machines are 25,000 pound trucks with hydraulic booms and three-ton spiked, rotating metal drums. On April 13, 2021, Republic filed this lawsuit against Smash.2 Republic alleges that Smash has wrongfully solicited its customers, and that Smash’s compaction services wrongfully utilize, trespass upon, and damage Republic’s Equipment. The Verified Complaint asserts the following claims: Count I—Trespass to Chattels; Count II—Conversion; Count III—Tortious

Interference; Count IV—False Advertising; Count V—Civil Conspiracy; and Count VI— Declaratory Judgment. Smash now moves to dismiss Counts II, III, IV, and V for failure to state a claim upon which relief may be granted under Federal Rule of Civil Procedure 12(b)(6). SMT also moves to dismiss all claims against it for lack of personal jurisdiction under Federal Rule of Civil

1 Smash submitted a copy of a Customer Service Agreement in support of its Motion to Dismiss. (Doc. #22-2.) Republic’s opposition brief does not dispute the authenticity of that exhibit and does not dispute that it may be considered by the Court. As a result, the Court has considered the exhibit in resolving the Motion to Dismiss. Cole v. Homier Distrib. Co., Inc., 599 F.3d 856, 863 (8th Cir. 2010) (recognizing that a court may consider documents referenced in the complaint).

2 On the same day, Republic filed a motion for temporary restraining order and preliminary injunction. The Court denied that motion on April 28, 2021. (Doc. #17.) Procedure 12(b)(2). Republic opposes the motion, and also filed a Motion to Amend its Complaint “if the pending Motion to Dismiss is not denied in its entirety[.]” (Doc. #33, p. 3.)3 Smash opposes Republic’s Motion to Amend, and both motions are addressed below. II. LEGAL STANDARD Under Rule 12(b)(6), a defendant may move to dismiss for “failure to state a claim upon

which relief can be granted.” “To survive a motion to dismiss [for failure to state a claim], a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Iqbal, 556 U.S. at 678 (quoting Twombly, 550 U.S. at 570). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ash v. Anderson Merchs., LLC, 799 F.3d 957, 960 (8th Cir. 2015) (quoting Iqbal, 556 U.S. at 678). When deciding a motion to dismiss, “[t]he factual allegations of a complaint are assumed true and construed in favor of the plaintiff, even if it strikes a savvy judge that actual proof of those facts is improbable.” Data Mfg., Inc. v. United Parcel Serv., Inc., 557 F.3d 849, 851 (8th Cir. 2009)

(citations and quotations omitted). Under Rule 12(b)(2), a defendant may move to dismiss for lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2). To survive a motion to dismiss challenging personal jurisdiction, the plaintiff must plead “sufficient facts to support a reasonable inference that the defendant can be subjected to jurisdiction within the state.” Creative Calling Sols., Inc. v. LF Beauty Ltd., 799 F.3d 975, 979 (8th Cir. 2015). If, as here, the parties submit affidavits and other materials outside the pleadings, “and the district court relies on the evidence, the motion is in substance one for summary judgment.” Id. The plaintiff “bears the burden of proof on the issue of

3 All page numbers refer to the pagination automatically generated by CM/ECF. personal jurisdiction and must establish jurisdiction by a preponderance of the evidence[.]” Id. The evidence must be viewed “in the light most favorable to the plaintiff” and “all factual conflicts” must be viewed in favor of the plaintiff. K-V Pharm. Co. v. J. Uriach & CIA, SA, 648 F.3d 588, 592 (8th Cir. 2011). III. DISCUSSION

A. Rule 12(b)(6)—Failure to State a Claim i. Conversion (Count II) Count II asserts a claim for conversion. “In Missouri, in order to maintain a suit for conversion . . . the plaintiff must have had or been entitled to immediate possession at the time of conversion and when the suit is brought.” Mickelson v. Airmen, Inc., 712 S.W.2d 714, 717 (Mo. App. W.D. 1986) (emphasis in original) (alterations omitted).4 “The law of conversion is concerned with possession, and not with title.” Jackson v. Premier Serv. Corp., 761 S.W.2d 648, 650 (Mo. App. E.D. 1988). “Since conversion is a possessory action, ownership alone is not enough to support a conversion action.” Id.

Smash argues this claim should be dismissed because the Agreement between Republic and its customers provide that the customers—not Republic—have the right to immediate possession of the Equipment.

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Allied Services, LLC v. Smash My Trash, LLC, (W.D. Mo. 2021).

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