Capital Promotions, L.l.c. Vs. Don King Productions, Inc.

CourtSupreme Court of Iowa
DecidedSeptember 26, 2008
Docket97 / 07–0508
StatusPublished

This text of Capital Promotions, L.l.c. Vs. Don King Productions, Inc. (Capital Promotions, L.l.c. Vs. Don King Productions, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Capital Promotions, L.l.c. Vs. Don King Productions, Inc., (iowa 2008).

Opinion

IN THE SUPREME COURT OF IOWA No. 97 / 07–0508

Filed September 26, 2008

CAPITAL PROMOTIONS, L.L.C.,

Appellant,

vs.

DON KING PRODUCTIONS, INC.,

Appellee,

and

DON KING and BILLY BAXTER,

Defendants.

On review from the Iowa Court of Appeals.

Appeal from the Iowa District Court for Polk County, Joel D.

Novak, Judge.

Further review of court of appeals’ decision affirming summary

judgment for appellee based on lack of personal jurisdiction. DECISION

OF COURT OF APPEALS AND JUDGMENT OF DISTRICT COURT

AFFIRMED.

Kenneth R. Munro of Munro Law Office, P.C., Des Moines, and

Joseph G. Bertogli, Des Moines, for appellant. 2

Mariclare Thinnes Culver of Duncan Green Brown & Langeness

PC, Des Moines, and Gerald G. Saltarelli and James A. Morsch of Butler

Rubin Saltarelli & Boyd LLP, Chicago, Illinois, for appellee. 3

TERNUS, Chief Justice.

The appellant, Capital Promotions, L.L.C., sued the appellee, Don

King Productions, Inc., for intentional interference with Capital’s

contractual relationship with boxer Tye Fields. The district court granted

King Productions’ motion for summary judgment, ruling Iowa courts did

not have personal jurisdiction over King Productions. The court of

appeals affirmed the district court’s dismissal of King Productions, and

we granted Capital’s application for further review. After reviewing the

record and considering the applicable legal principles, we agree with the

district court and the court of appeals that King Productions did not have

sufficient contacts with this state to support personal jurisdiction in

Iowa. Therefore, we affirm the decision of the court of appeals and the

judgment of the district court.

I. Background Facts and Prior Proceedings.

Capital Promotions, L.L.C. is an Iowa limited liability company with

its principal place of business in Iowa. In 2000, it entered into a

promotional rights agreement with boxer Tye Fields. Fields, whose

hometown is Des Moines, Iowa, resided in Missouri when the contract

was signed. By the time of the events giving rise to this lawsuit, he

resided in Nevada. Billy Baxter became Fields’ manager sometime in

2003. Baxter also resided in Nevada.

Under the promotional rights agreement between Capital and

Fields, Capital had the exclusive right to promote Fields’ professional

boxing contests, including staging and selling tickets for such contests

and all marketing and merchandizing rights. By its terms, this

agreement was to be governed by the law of Iowa and was to terminate

on February 4, 2005. During the term of the contract, Capital arranged 4

numerous fights for Fields. Several bouts were in Iowa, but the majority

of Fields’ fights were in other states.

Don King Productions, Inc. is a Delaware corporation with its

principal place of business in Florida. Like Capital, King Productions is

in the business of promoting boxing matches. King Productions has

never promoted a fight in Iowa. It has never owned or rented property in

Iowa, has never had a bank account in Iowa, has never had an employee

located in Iowa, and has never had a registered agent in Iowa.

In January 2004, King Productions employee Eric Botcher called

Capital’s Des Moines office and spoke with Capital employee Bill McGee.

Botcher told McGee that King Productions was interested in taking over

the promotional rights for Fields. McGee advised Botcher that Capital

was Fields’ promoter and had no interest in relinquishing its rights.

A few months later, in the spring of 2004, Bobby Goodman,

another King Productions employee, called Capital in Des Moines and

spoke with Capital’s president, Paul Scieszinski. The purpose of this call

was to offer Fields an International Boxing Federation (IBF) world

heavyweight title fight with a King Productions fighter, Chris Byrd, who

was the reigning IBF heavyweight champion. One of the terms of the

proposed fight was that, if Fields beat Byrd, King Productions would be

allowed to assume Fields’ promotional rights. Scieszinski turned down

the offer and advised Goodman that Capital was not interested in

relinquishing its promotional rights to Fields.

In the summer of 2004, Goodman called Capital to negotiate a

fight between another King Productions fighter, Henry Akiwande, and

Fields. This conversation was prompted by the fact Fields had won the

United States Boxing Association (USBA) world heavyweight title in

September 2003. After this win, in December 2003, the chair of the 5

IBF/USBA office had written to Scieszinski, with a copy to Goodman,

stating Fields’ mandatory defense of his title was due by September 2,

2004, and suggesting Akiwande was the leading available contender.

The Akiwande/Fields bout was not scheduled, however, because Fields

had suffered an injury in late spring 2004 and was unable to fight.

There was no discussion of Capital’s promotional rights in Fields during

this phone conversation.

In the fall of 2004, Scieszinski spoke with Don King personally via

telephone. Scieszinski informed King that Capital had a promotional

rights contract with Fields and was not interested in sharing its rights

with King or King Productions. Capital does not contend this call was

initiated by King.

In January 2005, King Productions employee Botcher placed a

telephone call to a Capital fighter, Josh Gutcher, who was in Iowa at the

time. Botcher offered Gutcher a fight through King Productions and

mentioned King Productions was involved in negotiations for a February

2005 fight with another Capital fighter, Tye Fields. Gutcher rejected the

offer, telling Botcher he was a Capital fighter, as was Fields, and Botcher

would have to speak to Scieszinski regarding any fights.

After Gutcher talked to Botcher, Gutcher called Scieszinski and

told Scieszinski of the conversation. Scieszinski then called King

Productions employee Goodman and informed Goodman that Capital was

the exclusive promoter for Fields and Gutcher and that any attempts to

offer either man a fight would be viewed as an interference with Capital’s

promotional rights agreements with those fighters.

In February 2005, Scieszinski arranged a fight between Fields and

Vaughan Bean to take place on February 25, 2005, in Kansas City. The

proposed fight was canceled, however, after King Productions and 6

Baxter, Fields’ manager, arranged a February 5, 2005 boxing bout

between Fields and Ray Luncsford in St. Louis. The record shows Baxter

had approached Don King in Las Vegas, Nevada, with a request to put

Fields on the undercard of the Spinks v. Judah II event being promoted

by King Productions and scheduled to take place in St. Louis on

February 5, 2005. King agreed to do so, and on February 3, 2005, in St.

Louis, Missouri, Fields signed a bout agreement for the February 5 fight.

In that agreement, he represented that he was not under contract with

any other promoter. There is no evidence in the record showing that any

communication regarding this bout agreement occurred in the state of

Iowa.

On April 7, 2006, Capital filed this action against King

Productions, Don King, and Baxter, alleging they intentionally interfered

with its contractual relationship with Fields. Subsequently, King

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