Grynberg v. Ivanhoe Energy, Inc.

490 F. App'x 86
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 12, 2012
Docket10-1361
StatusUnpublished
Cited by83 cases

This text of 490 F. App'x 86 (Grynberg v. Ivanhoe Energy, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grynberg v. Ivanhoe Energy, Inc., 490 F. App'x 86 (10th Cir. 2012).

Opinion

ORDER AND JUDGMENT *

JEROME A. HOLMES, Circuit Judge.

Plaintiffs-Appellants challenge the district court’s denial of jurisdictional discovery, refusal to transfer this action, and dismissal for lack of personal jurisdiction. Exercising jurisdiction under 28 U.S.C. § 1291, we affirm.

I. Factual Background

In 2006, the Republic of Ecuador granted Cotundo Minerales S.A. (“Cotundo”) seventeen mining concessions. Cotundo is an Ecuadorian company, owned by RSM Production Corporation (“RSM”), a Texas corporation, and Archidona Minerales, S.A. (“Archidona”), a Panamanian corporation. Jack J. Grynberg is the President of RSM. These three businesses — Cotundo, RSM, and Archidona — and Mr. Grynberg are the plaintiffs-appellants in this litigation.

The mining concessions granted to Co-tundo gave the company the exclusive *89 right to explore and produce oil from nearly 200,000 acres in the Pungarayacu Heavy Tar Sands Oil Deposit (“Pungarayacu”) for thirty years. Although previous estimates suggested that seven billion barrels of oil could be extracted from the Pungarayacu, Mr. Grynberg estimated that at least fifteen billion barrels could be recovered.

Mr. Grynberg contacted David R. Martin, executive co-chairman of Ivanhoe Energy, Inc. (“Ivanhoe”), regarding the Pun-garayacu. Mr. Martin shared Ivanhoe’s chairman role with Robert M. Friedland, who also served as Ivanhoe’s CEO. Mr. Martin also was executive chairman of Ivanhoe Energy Latin America Inc. (“IELA”) and Ivanhoe Energy Ecuador, Inc. (“IEE”). Messrs. Martin and Fried-land and the Ivanhoe-related businesses— Ivanhoe, IELA, and IEE — are the defendants-appellees in this litigation.

Based upon Mr. Grynberg’s contact, Mr. Martin requested information from him about the Pungarayacu, and Mr. Grynberg mailed to Mr. Martin a proprietary and confidential report that included Mr. Gryn-berg’s estimates of the oil deposits in the Pungarayacu. Mr. Martin, in turn, sent materials discussing Ivanhoe’s oil-processing technology to Mr. Grynberg.

Subsequently, Mr. Martin told Mr. Grynberg that Ivanhoe would be interested in forming a joint venture with Cotun-do, and the parties agreed on twenty percent participation by Ivanhoe if the deal moved forward. When Mr. Grynberg encountered resistance to his efforts to visit Ivanhoe’s plant in California, he began to sense that the deal would not go forward. He then requested that Mr. Martin return the confidential material. Ultimately, the joint venture was not consummated.

In March 2008, the plaintiffs learned that the defendants traveled to Ecuador to discuss the Pungarayacu, and that Ecuadorian officials made two visits to Ivanhoe’s plant in California. In April 2008, Ecuador declared as expired without compensation all mining concessions (1) that were in the exploration phase and that, as of the end of December 2007, had not been the subject of development-related investments; (2) as to which no environmental impact study had been presented; and (3) with regard to which the consultation process had not been completed. In October 2008, Ivanhoe announced that IEE signed a contract to develop the Pungarayacu. Later in October 2008, a journal article reported Mr. Friedland’s estimate that the Pungarayacu contained between fifteen and twenty billion barrels of oil, an estimate allegedly taken from the plaintiffs’ confidential materials.

The plaintiffs allege that the defendants stole their “confidential information under false pretenses, made knowing false representations regarding their use of [this] information, and improperly interfered with Plaintiffs’ property interests.” Aplt. Opening Br. at 7-8. Moreover, the plaintiffs suggest that the defendants may have persuaded Ecuador to revoke their concessions and award them to the defendants “by making unlawful payments and providing valuable gifts to Ecuador government personnel.” Id. at 7.

II. Procedural History

On November 20, 2008, Mr. Grynberg, Cotundo, RSM, and Archidona initiated this action by filing a complaint in the United States District Court for the District of Colorado. As amended, the plaintiffs’ complaint asserts claims of fraud, intentional and tortious interference with prospective unique business advantages, unjust enrichment, civil conspiracy to commit fraud, and violations of the Racketeer Influenced and Corrupt Organizations Act (“RICO”) against Ivanhoe, IELA, IEE, *90 Mr. Friedland, Mr. Martin, and ten John Does.

In January 2009, the defendants moved to dismiss this action for lack of personal jurisdiction. At a scheduling conference held February 10, 2009, the magistrate judge stayed discovery. On March 16, 2009, the plaintiffs moved to lift the stay and obtain jurisdictional discovery. The magistrate judge denied the plaintiffs’ motion at an April 3, 2009, hearing. The plaintiffs filed objections to the magistrate judge’s ruling on April 13, 2009.

On May 1, 2009, the plaintiffs moved, in the alternative, to transfer this action to the United States District Court for the Eastern District of California. On September 30, 2009, the district court denied the plaintiffs’ objections to the magistrate judge’s denial of jurisdictional discovery, denied the plaintiffs’ motion in the alternative to transfer this action, and dismissed this action without prejudice for lack of personal jurisdiction. See Grynberg v. Ivanhoe Energy, Inc., 666 F.Supp.2d 1218, 1241-42 (D.Colo.2009).

The plaintiffs moved for reconsideration of the district court’s denial of jurisdictional discovery on October 16, 2009. The district court denied reconsideration on July 15, 2010. See Grynberg v. Ivanhoe Energy, Inc., No. 08-cv-2528, 2010 WL 2802649, at *1 (D.Colo. July 15, 2010).

This appeal followed.

III. Discussion

The plaintiffs claim on appeal that the district court erred in (1) finding that it lacked personal jurisdiction over the defendants; (2) denying their motion for reconsideration; (3) denying their request for jurisdictional discovery; and (4) denying their motion to transfer the case to the Eastern District of California. We reject their contentions on each ground.

A. Personal Jurisdiction

“We review a trial court’s dismissal for lack of personal jurisdiction over the defendant de novo. The plaintiff has the burden of proving that the court has jurisdiction.” Melea, Ltd. v. Jawer SA, 511 F.3d 1060, 1065 (10th Cir.2007) (citation omitted); see ClearOne Commc’ns, Inc. v. Bowers, 651 F.3d 1200, 1214 (10th Cir. 2011); cf. Marcus Food Co. v. DiPanfilo, 671 F.3d 1159, 1166 (10th Cir.2011) (“We apply the de novo standard of review to the exercise of personal jurisdiction over a foreign defendant.”). “Where, as here, the district court does not hold an evidentiary hearing before dismissing the case, the plaintiff must only make a prima facie showing of personal jurisdiction ...

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