AVIVA LIFE AND ANNUITY CO. v. Goldstein

722 F. Supp. 2d 1067, 2010 U.S. Dist. LEXIS 70171, 2010 WL 2747274
CourtDistrict Court, S.D. Iowa
DecidedJuly 13, 2010
Docket4:10-cv-00129
StatusPublished
Cited by2 cases

This text of 722 F. Supp. 2d 1067 (AVIVA LIFE AND ANNUITY CO. v. Goldstein) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AVIVA LIFE AND ANNUITY CO. v. Goldstein, 722 F. Supp. 2d 1067, 2010 U.S. Dist. LEXIS 70171, 2010 WL 2747274 (S.D. Iowa 2010).

Opinion

ORDER ON MOTION TO DISMISS

ROBERT W. PRATT, Chief Judge.

Before the Court is a Motion to Dismiss for Lack of Jurisdiction and Improper Venue (hereinafter “Motion to Dismiss”), filed by Defendant, Jeffrey Goldstein (“Goldstein”), on May 18, 2010. Clerk’s No. 6. Plaintiff, Aviva Life and Annuity Company (“Aviva”), filed a Resistance to the Motion to Dismiss on June 1, 2010 (Clerk’s No. 8), and a Supplemental Brief in Support of Resistance on June 11, 2010 (Clerk’s No. 9). Goldstein filed a Reply on June 11, 2010. Clerk’s No. 10. The Court heard oral arguments via telephone on June 25, 2010. Clerk’s No. 13. The matter is fully submitted.

I. BACKGROUND

This dispute revolves around a life insurance policy issued by Aviva to Goldstein. See generally First Am. Compl. In February and March 2009, Goldstein went through the process of applying for a life insurance policy from Aviva, which was issued on or about March 14, 2009 and Goldstein received on April 1, 2009 (hereinafter “Policy”). Clerk’s No. 8-1 (Martin Aff.) ¶¶2-7; First Am. Compl. ¶ 6. Gold-stein sent Aviva three quarterly payments before Aviva rescinded the Policy in February 2010. Id. ¶ 8; First Am. Compl. ¶ 17. After the rescission, on February 15, 2010, Goldstein sent a letter to Aviva denying Aviva’s assertion that he made intentional material misrepresentations in his application materials, requesting reinstatement of the Policy, and stating his intention to institute legal proceedings against Aviva if his policy was not reinstated in thirty days. Clerk’s No. 8-1 at 21-22.

On March 24, 2010, Aviva filed the present action, pursuant to 28 U.S.C. § 2201, seeking a declaration that it has a legal right to rescind the Policy based on misrepresentations and concealments of materials facts in Goldstein’s application, and that the Policy has been rescinded and is void ab initio. First Am. Compl. ¶¶ 7-12, 20. Aviva alleges that it is an Iowa corporation and Iowa citizen with its principal place of business in Polk County, Iowa, and that Goldstein is a citizen of the State of Texas. Id. ¶¶ 1, 2, 6. Aviva asserts that the amount in controversy, without interest and costs, exceeds the sum or value required for federal diversity subject matter jurisdiction, pursuant to 28 U.S.C. § 1332, and that venue is proper in this Court, pursuant to 28 U.S.C. § 1391(a). Id. ¶¶ 3, 4.

Goldstein now moves to have this action dismissed under Federal Rule of Civil Procedure 12(b)(2) on the basis that he has insufficient contacts with the State of Iowa to warrant personal jurisdiction over him, and under Rule 12(b)(3) for improper venue. In the alternative, Goldstein requests the Court transfer the action to the United States District Court for the Southern District of Texas, Houston Division.

II. LAW AND ANALYSIS

A. Motion to Dismiss for Lack of Personal Jurisdiction

The Court begins by considering Gold-stein’s objections to personal jurisdiction. Goldstein argues that his contacts with *1071 Aviva in Iowa are insufficient to subject him to personal jurisdiction in Iowa. Def.’s Mot. to Dismiss at 8-11. Goldstein notes that he did not complete any portion of the Application on the Policy in Iowa, never traveled to Iowa, and never spoke to Aviva in Iowa. Id. at 10. Instead, he met with an independent insurance agent, Mr. B.L. Nelcon (“Nelcon”), in Houston, Texas, who suggested a life insurance policy from Aviva. Tr. at 1-2. 1 Nelcon filled out a form application, which Goldstein signed, and Nelcon submitted the application to Aviva. Id. at 2. Nelcon then contacted Goldstein to inform him that a medical practitioner would be visiting Goldstein at Goldstein’s home for a medical exam. Id. at 3, After the medical exam, Aviva issued the Policy. Id. Goldstein argues that his contacts with Iowa are unsubstantial and observes that none of the alleged “concealments” or “misrepresentations” took place in Iowa. Id.; Def.’s Mot. to Dismiss at 9-10. In addition, Goldstein argues that Texas is the “place of contractual performance” since he is a Texas resident; Aviva’s policies, applications, and rates in Texas are governed by Texas law; and the Policy permits him to submit any “dispute” or question about the Policy to the Texas Department of Insurance. Tr. at 3; Def.’s Mot. to Dismiss at 10-11.

In resistance, Aviva argues that, while the formation of a contractual relationship does not necessarily establish sufficient minimum contacts to support personal jurisdiction, in the case at bar, “prior negotiations and contemplated future consequences, along with the terms of the contract and the parties’ actual course of dealing” indicate that Goldstein purposefully established minimum contacts with Iowa. See Pl.’s Resistance at 7-8 (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 478-79, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985)). The emphasis of Aviva’s argument is that because Goldstein’s application and other materials were submitted to Aviva in Iowa and because the Policy contemplated an on-going relationship between Aviva and Goldstein over an extended period of time, Goldstein should have reasonably anticipated being haled into an Iowa courtroom. Tr. at 5. In support of this assertion, Aviva has submitted two affidavits by Marilyn Martin, a Lead Analyst in the Insurance Administration Division of Aviva, and copies of various documents submitted by Goldstein when applying for the Policy. Clerk’s Nos. 8-1, 9-1. The materials submitted by Aviva show contacts by Goldstein with Aviva in Iowa that can be placed in three categories; (1) the submission of application materials to Aviva in Iowa in pursuit of life insurance (Pl.’s Resistance at 2-3; Pi’s Supp. Resistance at 1-2); 2 (2) three quarterly payments sent to Aviva in Iowa (PL’s Resistance at 3); and (3) a letter to *1072 Aviva contesting the rescission of the Policy (Id.; Clerk’s No. 8-1 at 21-22).

Once a defendant makes a motion challenging personal jurisdiction, “[t]he plaintiff bears the burden of proving facts supporting personal jurisdiction.” Wells Dairy, Inc. v. Food Movers Int’l., Inc., 607 F.3d 515, 518 (8th Cir.2010) (citing Dever v. Hentzen Coatings, Inc., 380 F.3d 1070, 1073 (8th Cir.2004)). When considering a motion to dismiss for lack of personal jurisdiction, the Court will review “the affidavits and exhibits presented with the motions and in opposition thereto,” as well as the pleadings. Id. (quoting

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722 F. Supp. 2d 1067, 2010 U.S. Dist. LEXIS 70171, 2010 WL 2747274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aviva-life-and-annuity-co-v-goldstein-iasd-2010.