Huffman v. Blue Compass RV, LLC

District Court, D. Kansas·Decided September 13, 2024·No. 5:23-cv-04091·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

DONNA HUFFMAN,

Plaintiff,

v. Case No. 23-4091-JWB

FOREST RIVER INC., et al.,

Defendants.

MEMORANDUM AND ORDER

This matter is before the court on Defendant Forest River, Inc.’s motion to dismiss for lack of personal jurisdiction. (Doc. 56.) Plaintiff has also filed a conditional motion to change venue and a motion to bifurcate. (Docs. 54, 55.) The motions have been fully briefed and are ripe for decision. (Docs. 57, 58, 59.) Defendant’s motion is DENIED. Plaintiff’s motions are GRANTED. I. Standard On a Rule 12(b)(2) motion to dismiss, Plaintiff must make a prima facie showing that the court has personal jurisdiction. Old Republic Ins. Co. v. Cont’l Motors, Inc., 877 F.3d 895, 903 (10th Cir. 2017). If a defendant challenges the jurisdictional allegations, Plaintiff “must support the jurisdictional allegations of the complaint by competent proof of the supporting facts.” Sunlight Saunas, Inc. v. Sundance Sauna, Inc., 427 F. Supp. 2d 1011, 1014 (D. Kan. 2006) (citing Pytlik v. Pro’l Res., Ltd., 887 F.2d 1371, 1376 (10th Cir. 1989). All factual disputes must be resolved in Plaintiff’s favor and, to the extent that they are uncontroverted by Defendant’s affidavit, “the allegations in the complaint must be taken as true.” Id. (citing Intercon. Inc. v. Bell Atl. Internet Sols., Inc., 205 F.3d 1244, 1247 (10th Cir. 2000) (only well-pled facts, as distinguished from conclusory allegations, accepted as true). “To obtain personal jurisdiction over a nonresident defendant in a diversity action, a plaintiff must show that jurisdiction is legitimate under the laws of the forum state and that the exercise of jurisdiction does not offend the due process clause of the Fourteenth Amendment.” TH Agriculture & Nutrition, LLC v. Ace Eur. Grp., Ltd., 488 F.3d 1282, 1286–87 (10th Cir. 2007). Because the Kansas long-arm statute is construed liberally to allow jurisdiction to the full extent

permitted by due process, the court ordinarily proceeds directly to the constitutional issue. Id. at 1287 (citing OMI Holdings, Inc. v. Royal Ins. Co. of Canada, 149 F.3d 1086, 1087 (10th Cir. 1998)). “The Due Process Clause protects an individual’s liberty interest in not being subject to the binding judgments of a forum with which he has established no meaningful contacts, ties, or relations.” Burger King Corp. v. Rudzewicz, 471 U.S. 462, 471–72 (1985) (internal quotations omitted). Therefore a “court may exercise personal jurisdiction over a nonresident defendant only so long as there exist minimum contacts between the defendant and the forum state.” World–Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 291 (1979). The requisite minimum contacts may

be established under one of two theories: “specific jurisdiction” or “general jurisdiction.” If the requisite minimum contacts are met, the court proceeds to determine whether the “assertion of personal jurisdiction would comport with fair play and substantial justice.” Old Republic Ins. Co., 877 F.3d at 903 (internal quotations omitted). General jurisdiction is based on an out-of-state corporation’s “continuous and systematic” contacts with the forum state. Id. at 904. Specific jurisdiction exists if the defendant has “purposefully directed his activities at residents of the forum, and the litigation results from alleged injuries that arise out of or relate to those activities.” Burger King Corp., 471 U.S. at 472 (internal citations omitted); see also Mitchell v. BancFirst, No. 17-2036, 2018 WL 338217, at *2 (D. Kan. Jan. 9, 2018). II. Facts and Procedural History This case was originally filed in Jefferson County, Kansas, and was removed by Defendant Forest River, Inc. (Doc. 1.) Since the removal, Plaintiff filed an amended complaint. (Doc. 16.) Plaintiff’s amended complaint brought claims against Forest River, Inc., Blue Compass RV, LLC, and Defendant RV Retailer of Texas, LLC, also known as Motor Home Specialists (“MHS”). All

Defendants moved to dismiss on the basis that this court lacked personal jurisdiction over them. (Docs. 20, 21.) The facts are largely taken from the court’s prior ruling on the motions to dismiss. Given the overlap of issues in the motions before the court, the facts are restated herein and additional facts will be added throughout. Plaintiff is a citizen of Kansas and has been a citizen of Kansas at all times relevant to the events in this matter. In 2020, she decided to purchase a recreational vehicle (“RV”). Plaintiff and her co-buyers purchased the RV from Defendant MHS in Alvarado, Texas. Plaintiff saw an advertisement from MHS and decided to purchase her new Mercedes Sprinter Isata 3 from MHS. The RV was manufactured by Forest River. Plaintiff negotiated the purchase over the telephone

and doc-u-signed the purchase agreement on July 14, 2020. She also paid a $2,000 deposit by credit card. (Doc. 16 at 9.) The RV was scheduled for delivery to MHS on July 20, 2020. Plaintiff and her family left Kansas on July 19 to pick up the RV in Texas but the RV was not ready. Plaintiff’s amended complaint and second amended complaint sets forth several problems with the RV. On July 22, they picked up the RV and were told that it had passed the 200 point inspection, all parts were accounted for, and no deficiencies were disclosed. (Id. at 5.) The contract for the RV shows that Plaintiff signed it in person on July 21, 2020 while she was in Alvarado, Texas. (Doc. 9-1 at 6.) Further, the warranty registration form and the application for Texas title identifies Plaintiff’s address in Corpus Christi, Texas, and not Kansas. (Id. at 12, 14.) Additional Facts Relevant to Personal Jurisdiction. MHS is a limited liability company and has one location in Alvarado, Texas. (Doc. 9-1 at 2.) Its sole member is Defendant Blue Compass RV, LLC. (Doc. 35 at 1.) Blue Compass’s headquarters are in Florida. (Doc. 9-1 at 2.) Although Blue Compass has numerous members, most of which are other limited liability companies, none of those members are citizens of Kansas. (Doc. 35.)

Forest River is located in Indiana and sells its RVs to authorized dealers, including those located in Kansas. Its principal place of business is in Indiana and it does not have a registered agent or any employees in Kansas. Forest River also has no facilities or property in Kansas and does not exercise day-to-day control over authorized dealers in Kansas. (Doc. 22-2.) In May 2020, Forest River purchased Eldorado National (Kansas), Inc. (“ENK”), a shuttle bus manufacturer located in Salina. In June 2020, Forest River re-domesticated ENK from a Kansas corporation to an Indiana limited liability company. The manufacturing facility was closed after the purchase and the property was sold in July 2021. Forest River has not had any ENK employees in Kansas nor has it built any shuttle buses since the closure. (Id.)

Prior Ruling. On June 6, 2024, the court granted Blue Compass’s motion to dismiss finding that the court lacked personal jurisdiction over Blue Compass and, alternatively, that Plaintiff’s amended complaint failed to state a claim against Blue Compass. (Doc.

Free access — add to your briefcase to read the full text and ask questions with AI

Huffman v. Blue Compass RV, LLC, (D. Kan. 2024).

Huffman v. Blue Compass RV, LLC (Huffman v. Blue Compass RV, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Employers Mutual Casualty Co. v. Bartile Roofs, Inc.
618 F.3d 1153 (Tenth Circuit, 2010)
Sunlight Saunas, Inc. v. Sundance Sauna, Inc.
427 F. Supp. 2d 1011 (D. Kansas, 2006)
Ford Motor Co. v. Montana Eighth Judicial Dist.
592 U.S. 351 (Supreme Court, 2021)
Hood v. American Auto Care
21 F.4th 1216 (Tenth Circuit, 2021)
United States v. Botefuhr
309 F.3d 1263 (Tenth Circuit, 2002)
BHC Development, L.C. v. Bally Gaming, Inc.
985 F. Supp. 2d 1276 (D. Kansas, 2013)