First Way Transport LLC v. Rebel Auction Company Incorporated

CourtDistrict Court, D. Arizona
DecidedJune 6, 2024
Docket4:23-cv-00393
StatusUnknown

This text of First Way Transport LLC v. Rebel Auction Company Incorporated (First Way Transport LLC v. Rebel Auction Company Incorporated) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First Way Transport LLC v. Rebel Auction Company Incorporated, (D. Ariz. 2024).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 First Way Transport LLC, No. CV-23-00393-TUC-SHR

10 Plaintiff, Order Re: Motion to Dismiss

11 v.

12 Rebel Auction Company Incorporated, et al.,

13 Defendants.

15 Pending before the Court is a Motion to Dismiss filed by Defendants Rebel Auction 16 Company, Inc., Larry Davis, and Brad Davis (collectively, “Defendants,” or individually 17 by their names). This matter has been fully briefed, and Plaintiff, First Way Transport, 18 LLC, has requested additional limited discovery in its Response. (Docs. 12, 13 at 5, 16.) 19 For the following reasons, the Court will grant Defendants’ Motion and deny Plaintiff’s 20 request for discovery.1 21 I. Background 22 Plaintiff is “an Arizona limited liability company with its principal place of business 23 in Santa Cruz County, State of Arizona.” (Doc. 1 ¶ 1.) Defendant Rebel Auction 24 Company, Inc. (“Rebel”) is “a Georgia corporation with its principal place of business in 25 Jeff Davis County, State of Georgia.” (Id. ¶ 2.) Defendants Larry Davis and Brad Davis 26 1 Although Defendants requested oral argument, the Court declines because oral 27 argument will not aid in resolution of the issues raised. See LRCiv 7.2(f) (“The Court may decide motions without oral argument.”); Fed. R. Civ. P. 78(b); Partridge v. Reich, 141 28 F.3d 920, 926 (9th Cir. 1998) (“[A] district court can decide the issue without oral argument if the parties can submit their papers to the court.”). 1 are residents of Hazelhurst, Georgia, County of Jeff Davis. (Id. ¶¶ 3, 5.) Defendant Larry 2 Davis is the Chief Executive Officer of Rebel. (Id. ¶ 4.) Defendant Brad Davis is the Chief 3 Financial Officer of Rebel. (Id. ¶ 6.) 4 Plaintiff alleges it purchased two tractor trailer trucks (the “vehicles”) from Rebel 5 on April 14, 2023. (Id. ¶ 13.) Shortly after, Plaintiff’s agent traveled to Georgia, paid for 6 the vehicles in full, and then paid an independent company to ship the vehicles from 7 Georgia to Arizona. (Id. ¶¶ 18, 20.) Following delivery, Plaintiff alleges it had “both 8 [vehicles] inspected by a mechanic who [found] that the Diesel Exhaust Fluid (DEF) had 9 been removed from both [vehicles] prior to their delivery to First Way.” (Id. ¶ 22.) Plaintiff 10 alleges Defendants failed to disclose this information to them, and the sale of the vehicles 11 without their DEFs violated federal law. (Id. ¶¶ 24–26.) In addition, Plaintiff alleges 12 Defendants did not send it the titles for both vehicles until three months after the finalized 13 sale, in contravention of Rebel’s website terms. (Id. ¶¶ 27–28, 42–43.) 14 In response to Plaintiff’s Complaint, Defendants filed the motion to dismiss for lack 15 of personal jurisdiction. (Doc 12.) 16 II. Legal Standard 17 When opposing a motion to dismiss for lack of personal jurisdiction, the “plaintiff 18 bears the burden of establishing . . . jurisdiction is proper.” Mavrix Photo, Inc. v. Brand 19 Techs., Inc., 647 F.3d 1218, 1223 (9th Cir. 2011). When the district court does not conduct 20 an evidentiary hearing,2 “the plaintiff need only make a prima facie showing of 21 jurisdictional facts.” Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th 22 Cir. 2004) (citation omitted); see also Boschetto v. Hansing, 539 F.3d 1011, 1015 (9th Cir. 23 2008). In these instances, the Court takes the “uncontroverted allegations in the complaint” 24 as true and resolves conflicts in the plaintiff’s favor. Schwarzenegger, 374 F.3d at 800; 25 Boschetto, 539 F.3d at 1015 (citation omitted). Further, the Court, in its discretion, “may 26 order discovery on . . . jurisdictional issues.” Doe v. Unocal Corp., 248 F.3d 915, 922 (9th 27 Cir. 2001) (citation omitted). 28 2 Neither party has requested an evidentiary hearing. (See generally Docs. 12, 13.) 1 Where “there is no applicable federal statute governing personal jurisdiction, the 2 district court applies the law of the state in which the district court sits.” Schwarzenegger, 3 374 F.3d at 800 (citing Fed. R. Civ. P. 4(k)(1)(A)). “The Arizona long-arm statute provides 4 for personal jurisdiction co-extensive with the limits of federal due process.” Doe v. Am. 5 Nat’l Red Cross, 112 F.3d 1048, 1050 (9th Cir. 1997); see also Ariz. R. Civ. P. 4.2(a). 6 Therefore, “the jurisdictional analyses under state law and federal due process are the 7 same.” Herbal Brands, Inc. v. Photoplaza, Inc., 72 F.4th 1085, 1089 (9th Cir. 2023) 8 (quoting Schwarzenegger, 374 F.3d at 800–01), cert. denied, 144 S. Ct. 693 (2024) (mem.). 9 Under the Fourteenth Amendment’s Due Process Clause, “a tribunal’s authority 10 depends on the defendant[] having such ‘contacts’ with the forum State [to ensure] ‘the 11 maintenance of the suit’ is ‘reasonable, in the context of our federal system of government,’ 12 and ‘does not offend traditional notions of fair play and substantial justice.’” Ford Motor 13 Co. v. Mont. Eighth Jud. Dist. Ct., 592 U.S. 351, 358 (2021) (quoting Int’l Shoe Co. v. 14 Washington, 326 U.S. 310, 316–17 (1945)). There are two types of personal jurisdiction: 15 general and specific. See Daimler AG v. Bauman, 571 U.S. 117, 122 (2014). 16 General jurisdiction exists over a nonresident defendant when the defendant’s 17 “affiliations with the State are so ‘continuous and systematic’ as to render them essentially 18 at home in the forum State.” Id. at 127 (quoting Goodyear Dunlop Tires Operations, S.A. 19 v. Brown, 564 U.S. 915, 919 (2011)); see also Schwarzenegger, 374 F.3d at 801. To decide 20 whether a defendant has the requisite contacts, the Ninth Circuit considers the contact’s 21 “[l]ongevity, continuity, volume, economic impact, physical presence, and integration into 22 the [forum] state’s regulatory or economic markets.” Mavrix Photo, Inc., 647 F.3d at 1224 23 (citation omitted). 24 Alternatively, “specific jurisdiction covers defendants . . . less intimately connected 25 with a state, but [who] have sufficient minimum contacts with the state . . . relevant to the 26 lawsuit.” LNS Enters. LLC v. Cont’l Motors, Inc., 22 F.4th 852, 859 (9th Cir. 2022). “The 27 inquiry whether a forum State may assert specific jurisdiction over a nonresident defendant 28 focuses on the relationship among the defendant, the forum, and the litigation.” Walden v. 1 Fiore, 571 U.S. 277, 283–84 (2014) (citation and internal quotation marks omitted). The 2 Ninth Circuit has implemented a three-prong test to determine if a court has specific 3 jurisdiction over a defendant: 4 (1) The non-resident defendant must purposefully direct his activities or consummate some transaction with the forum or 5 resident thereof; or perform some act by which he purposefully 6 avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its 7 laws; 8 (2) the claim must be one which arises out of or relates to the defendant’s forum-related activities; and 9 (3) the exercise of jurisdiction must comport with fair play and 10 substantial justice, i.e. it must be reasonable.

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First Way Transport LLC v. Rebel Auction Company Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-way-transport-llc-v-rebel-auction-company-incorporated-azd-2024.