Foscato v. Chaparral Boats, Inc.

CourtDistrict Court, W.D. Missouri
DecidedMay 3, 2022
Docket2:21-cv-04240
StatusUnknown

This text of Foscato v. Chaparral Boats, Inc. (Foscato v. Chaparral Boats, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foscato v. Chaparral Boats, Inc., (W.D. Mo. 2022).

Opinion

UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MISSOURI CENTRAL DIVISON

VINCENT E. FOSCATO, et al.,

Plaintiffs,

v. Case No. 2:21-4240-NKL

CHAPARRAL BOATS, INC., et al.,

Defendants.

ORDER Defendant Xtreme Marine Corporation moves to dismiss the claims against it for lack of personal jurisdiction. Doc. 24. For the reasons stated below, the Court grants Xtreme’s motion. I. BACKGROUND A. Factual Background Plaintiffs allege that they were passengers in Defendant Gregory S. Lajuene’s boat when he negligently caused the underside of the boat to strike a bridge pillar. See Doc. 9 (Amended Complaint), at ¶ 2. The collision destabilized the boat’s hard top tower, which then fell and injured Plaintiffs. Id. Xtreme manufactured the hard top tower. Defendant Chaparral Boats, Inc. attached the tower to the hull of its boat and sold the completed boat to a dealer, Premier 54 Motorsports. Premier 54 then sold the boat to Lajuene. B. Procedural Background Plaintiffs sued Lajuene and Chaparral in Missouri state court. Doc. 1. The case was removed to this Court. Id. Plaintiffs then filed an Amended Complaint adding Xtreme as a defendant. Doc. 9. Xtreme filed a motion to dismiss, arguing that the Court does not have personal jurisdiction over it. Doc. 24.

C. Jurisdictional Allegations and Facts Plaintiffs’ amended complaint alleges that: Xtreme is incorporated in Delaware with a principal place of business in Tennessee; Chaparral is incorporated in Alabama with a principal place of business in Georgia; Lajuene is domiciled in Texas; Plaintiffs are domiciled in Wisconsin; and “this Court has personal jurisdiction over all parties, because, among other things, Defendants Chaparral and Xtreme designed, manufactured, and sold or caused to be sold the boat with its defective hard top tower in Missouri, and the accident at issue occurred in Missouri.” Doc. 9, ¶¶ 6-9. In response to Xtreme’s Motion to Dismiss, Plaintiffs further allege that Xtreme sold the

towers through Chaparral’s dealers and attempted to fix a defect in Lajuene’s boat by sending a replacement tower to Missouri with an instruction manual. Plaintiffs’ attorney submits a declaration stating that Chaparral engaged Xtreme to design and build a tower specifically for Chaparral’s boats, that Chaparral then sold the boats through its network of authorized dealers, and that Premier 54 replaced the tower with a new tower that Xtreme manufactured. Doc. 31-1 (Richard M. Elias Declaration), ¶¶ 3, 4, 9.1 In support of its motion to dismiss, however, Xtreme submits a declaration from Anthony D. Williams, vice president of Patrick Industries, which provides operational oversight of Xtreme. Doc. 24-1. Williams, who states he is personally familiar with the nature and geographic scope of Xtreme’s business, declares that: Chaparral and Xtreme are owned and operated independently;

1 Xtreme argues that the Court cannot consider the declaration because it is hearsay and lacks a reliable foundation. The Court will consider the statements in the declaration without deciding the hearsay issue because, as discussed below, even considering those facts, the Court concludes that it lacks personal jurisdiction. Xtreme is not registered with the Missouri Secretary of State to conduct business; Xtreme does not have an agent for service of process in Missouri; Xtreme does not file a tax return with Missouri; Xtreme does not have a Missouri mailing address or telephone number; Xtreme does not advertise in Missouri, other than maintaining a generally available website where purchases cannot be made;

Xtreme does not own or lease property in Missouri; Xtreme does not operate or maintain any facilities or offices in Missouri; Xtreme has no agents or employees in Missouri; Xtreme does not have any dealers or distributors in Missouri; Xtreme does not have any shareholders in Missouri; and Xtreme does nothing to specifically target Missouri. Id.¶¶ 2, 4-17. To the best of Williams’ knowledge, Xtreme has never been sued in Missouri before. Id. ¶ 12. Further, Williams declares that Xtreme manufactured the towers in Tennessee and sold them exclusively to Chaparral in Georgia. Id. ¶¶ 21-22. Chaparral then attached the towers and sold the boats through its own sales channels and distribution networks. Id. ¶ 27. Xtreme played no role in determining where Chaparral sold or advertised the boats. Id. ¶ 28. In a supplemental declaration, submitted in support of Xtreme’s reply, Williams states that Xtreme communicated about the tower repair only

with Chaparral, and Xtreme manufactured 50 tower repair kits with instruction manuals that were sold exclusively to Chaparral in Georgia. Doc. 38-1, ¶¶ 4, 8-10. Williams reaffirmed that Xtreme did nothing to encourage Chaparral to sell its towers to any location. Id. ¶¶ 11-19. II. LEGAL STANDARD “The requirement of personal jurisdiction represents an individual liberty interest that derives from the Due Process Clause.” Vallone v. CJS Sols. Group, LLC, 9 F.4th 861, 864 (8th

Cir. 2021) (internal quotation omitted). Plaintiffs have the burden of establishing that the Court has personal jurisdiction over Xtreme. Viasystems, Inc. v. EBM-Papst St. Georgen GmbH & Co., KG, 646 F.3d 589, 592 (8th Cir. 2011). “The evidentiary showing required at the prima facie stage is minimal.” Johnson v. Arden, 614 F.3d 785, 794 (8th Cir. 2010). However, a party’s assertion of jurisdiction cannot “be supported by the pleadings alone”; rather, the party must provide evidence opposing the motion to dismiss. Dever v. Hentzen Coatings, Inc., 380 F.3d 1070, 1072 (8th Cir. 2004).

For the Court to exercise personal jurisdiction in this case, Missouri’s long-arm statute must apply, and the Due Process Clause must permit the exercise of personal jurisdiction. Smith v. Truman Rd. Dev., LLC, 414 F. Supp. 3d 1205, 1215-16 (W.D. Mo. 2019). However, where “the exercise of personal jurisdiction is not permitted by the Due Process Clause,” “it is not necessary to consider the application of Missouri’s long-arm statute . . . .” Everett v. Bombardier-Rotax, No. 2:14-CV-04033-NKL, 2014 WL 3809199, at *2 (W.D. Mo. Aug. 1, 2014); see also Viasystems, Inc., 646 F.3d at 594 (“We need not decide whether these actions . . . suffice to place it within the bounds of Missouri’s long-arm statute, because it is clear that the cited activities are not sufficient to surmount the due-process threshold.”). “The canonical opinion in this area remains International Shoe [Co. v. Washington, 326

U.S. 310 (1945)], in which [the Supreme Court] held that a State may authorize its courts to exercise personal jurisdiction over an out-of-state defendant if the defendant has ‘certain minimum contacts with [the State] such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.’” Daimler AG v. Bauman, 571 U.S. 117, 126-27 (2014) (quoting Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 923 (2011)). Personal jurisdiction can be specific or general. Daimler AG, 571 U.S. at 126. Plaintiffs here argue only that the Court has specific jurisdiction over Xtreme. For the Court to have specific jurisdiction, “it is essential in each case that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.” Hanson v. Denckla, 357 U.S. 235, 253 (1958).

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