Dakota Provisions, LLC v. Hillshire Brands Co.

226 F. Supp. 3d 945, 2016 WL 7441628, 2016 U.S. Dist. LEXIS 178684
CourtDistrict Court, D. South Dakota
DecidedDecember 27, 2016
Docket4:16-CV-04099-KES
StatusPublished
Cited by11 cases

This text of 226 F. Supp. 3d 945 (Dakota Provisions, LLC v. Hillshire Brands Co.) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dakota Provisions, LLC v. Hillshire Brands Co., 226 F. Supp. 3d 945, 2016 WL 7441628, 2016 U.S. Dist. LEXIS 178684 (D.S.D. 2016).

Opinion

MEMORANDUM OPINION AND ORDER

KAREN E. SCHREIER, UNITED STATES DISTRICT JUDGE

Defendant The Hillshire Brands Company moves for an order to dismiss the complaint for failure to state a claim or, alternatively, moves to transfer venue to the Northern District of Iowa. Docket 4. Defendant Unlimited Freight, Inc., joins Hill-shire’s motion to transfer venue. Docket 11. Defendant AFN, LLC, moves to dismiss the complaint for failure to state a claim. Docket 9. Plaintiff, Dakota Provisions, LLC, resists these motions and requests leave to amend its complaint and add Marko Dimitrijevic, an individual, as a defendant. Docket 15.

For the following reasons, the court grants Dakota Provisions’ motion to amend, denies the motions to dismiss, and denies the motion to transfer venue to the Northern District of Iowa.

BACKGROUND

The facts as alleged in the proposed amended complaint1 are as follows:

[950]*950Hillshire suffered an explosion and fire at its processing facility located near Storm Lake, Iowa. As a result of this fire, Hillshire contacted Dakota Provisions to inquire as to whether Dakota Provisions could process turkeys for Hillshire. Dakota Provisions’ turkey processing plant is located in Huron, South Dakota. Although Dakota Provisions generally only allows its member growers to utilize its facilities, it agreed to allow Hillshire to process turkeys at its plant.

Under the agreement, Hillshire was responsible for arranging transportation to deliver live turkeys from Hillshire’s grower farms in Iowa and South Dakota to Dakota Provisions’ processing plant. Due to patented technology and specialized equipment located at Dakota Provisions’ processing plant, Hillshire also agreed to transport the live turkeys in a specially sized trailer with custom-built cages that conformed to the processing plant’s requirements. Hillshire hired AFN to work as a brokerage company and to arrange for transportation of the live turkeys. AFN hired Unlimited Freight as a motor carrier to transport the turkeys to the processing plant on' behalf of Hillshire, Unlimited Freight hired Marko Dimitrijevic as its driver.

To haul Hillshire’s turkeys to the Huron, South Dakota, processing plant, Dimitri-jevic used a vehicle and specially sized trailer owned by Dakota Provision. Then, on or about April 12,2014, at or near Sioux City, Iowa, Dimitrijevic was involved in an accident while speeding around a curve.2 The crash resulted in the destruction of the live haul trailer and the 60 specially designed cages, each of which contained a live turkey, at the time of the crash. Dakota Provisions’ trailer also suffered significant damages. Dakota Provisions seeks damages totaling $108,468.48 plus interest.

Dakota Provisions, LLC, instituted this action in Beadle County, South Dakota in May 2016. Docket 1. The complaint was served on Hillshire on June 8, 2016. Hill-shire removed the case with AFN’s consent to this court under 28 U.S.C. § 1441, based on diversity of jurisdiction under 28 U.S.C. § 1332. Id. Unlimited Freight filed its answer to the complaint (Docket 5) and consented to removal on July 11, 2016. Docket 6. Dakota Provisions sought leave to amend its complaint to add additional counts and a new defendant on August 12, 2016. Docket 15.

DISCUSSION

1. Motion to Amend the Complaint

Dakota Provisions moves to amend its complaint to make the following changes: (1) add counts of vicarious liability/agency, negligent hiring, conversion, and joint and several liability against Hill-shire, AFN, and Unlimited Freight; (2) add Marko Dimitrijevic as an individual defendant; and (3) add counts of negligence and negligence per se against Dimi-trijevic. Docket 15. Defendants AFN and Hillshire oppose the motion and argue that the proposed amendments are futile because the amendments fail to state a claim.3 See Docket 19; Docket 21. Defen[951]*951dant Unlimited Freight also opposes the motion but argues that the proposed amendment is futile because the court lacks personal jurisdiction over Dimitry evic. Docket 23. As explained further below, the court will only consider defendants’ arguments as to futility for Counts III, IV, and V of the proposed amended complaint.

A. Legal Standard

The purpose of pleading under the federal rules “is to facilitate a proper decision on the merits.” Foman v. Davis, 371 U.S. 178, 181-82, 83 S.Ct. 227, 9 L.Ed.2d 222 (1962) (rejecting the approach that, under the federal rules, “pleading is a game of skill in which one misstep by counsel may be decisive to the outcome”) (internal quotations omitted). Federal Rule of Civil Procedure 15(a) furthers this purpose by declaring that “[t]he Court should freely give leave [to amend] when justice so requires.” Fed. R. Civ. P. 15(a)(2). “[T]his mandate is to be heeded.” Foman, 371 U.S. at 182, 83 S.Ct. 227.

“The Eighth Circuit Court of Appeals takes a ‘liberal viewpoint towards leave to amend’ and leave ‘should normally be granted absent good reason for a denial.’ ” Libertarian Party of S.D. v. Krebs, 312 F.R.D. 523, 525 (D.S.D. 2016) (quoting Popp Telcom v. Am. Sharecom, Inc., 210 F.3d 928, 943 (8th Cir. 2000)). Leave to amend should be denied only if evidence exists such as “undue delay, bad faith, or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, [or] futility of the amendment.” Roberson v. Hayti Police Dept, 241 F.3d 992, 995 (8th Cir. 2001) (citing Foman, 371 U.S. at 182, 83 S.Ct. 227). “Likelihood of success on the new claim or defenses is not a consideration for denying leave to amend unless the claim is clearly frivolous.” Becker v. Univ. of Neb., 191 F.3d 904, 908 (8th Cir. 1999) (citing Gamma-10 Plastics, Inc. v. Am. President Lines, Ltd., 32 F.3d 1244, 1256 (8th Cir. 1994)).

B. The Proposed Amended Complaint is Not Futile.

“[I]t is common practice for a party to seek leave to amend in response to a motion to dismiss.” Ireland v. Anderson, 2014 WL 3732014, at *2 (D.N.D. July 25, 2014) (citing Jameson v. State Farm Mut. Auto. Ins. Co., 871 F.Supp.2d 862, 869 (W.D.Mo. May 14, 2012)). In fact, the Eighth Circuit Court of Appeals has stated that a “motion to amend a complaint may moot a pending motion to dismiss.” Pure Country, Inc. v. Sigma Chi Fraternity,

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226 F. Supp. 3d 945, 2016 WL 7441628, 2016 U.S. Dist. LEXIS 178684, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dakota-provisions-llc-v-hillshire-brands-co-sdd-2016.