Industrial Builders, Inc. v. Robson Handling Technology USA Inc.

CourtDistrict Court, D. Idaho
DecidedApril 2, 2024
Docket1:23-cv-00499
StatusUnknown

This text of Industrial Builders, Inc. v. Robson Handling Technology USA Inc. (Industrial Builders, Inc. v. Robson Handling Technology USA Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Idaho primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Industrial Builders, Inc. v. Robson Handling Technology USA Inc., (D. Idaho 2024).

Opinion

UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF IDAHO

INDUSTRIAL BUILDERS, INC., Case No. 1:23-cv-00499-CWD Plaintiff, MEMORANDUM DECISION AND v. ORDER

ROBSON HANDLING TECHNOLOGY USA INC. and MATT WILLIAMS, individually,

Defendants.

ROBSON HANDLING TECHNOLOGY USA, INC.,

Counterclaimant,

v.

INDUSTRIAL BUILDERS, INC.,

Counterdefendant.

INTRODUCTION Before the Court is Defendants’ Motion to Dismiss, filed pursuant to Fed. R. Civ. P. 12(b)(6). (Dkt. 18.) The motion seeks to dismiss the civil conspiracy claim, and counts four and five, of the Complaint. The motion is fully briefed. (Dkt. 18, 23, 24.) Having carefully reviewed the submissions and the entire record, the Court finds the facts and legal arguments relevant to Defendants’ motion are adequately presented in the record. Accordingly, in the interest of avoiding delay, and because the decisional process would

not be significantly aided by oral argument, the motion will be decided based on the record. Dist. Idaho Loc. Civ. R. 7.1(d)(1)(B). For the reasons explained below, the motion will be granted in part and denied in part. LEGAL STANDARD Under Federal Rule of Civil Procedure 12(b)(6), a motion to dismiss for failure to state a claim upon which relief can be granted tests the legal sufficiency of a complaint.

Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001). In assessing dismissal of claims pursuant to Rule 12(b)(6), the Court must “accept factual allegations in the complaint as true and construe the pleadings in the light most favorable to the nonmoving party.” Manzarek v. St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). When a court grants a Rule 12(b)(6) motion to dismiss, a plaintiff is ordinarily

entitled to amend the complaint before the action is dismissed. Lopez v. Smith, 203 F.3d 1122, 1130 (9th Cir. 2000); see also Fed. R. Civ. P. 15(a) (“the court should freely give leave [to amend] when justice so requires.”). Rule 15’s policy favoring amendment “should be given with extreme liberality.” DCD Programs, Ltd. v. Leighton, 833 F.2d 183, 186 (9th Cir. 1987). Leave to amend should be withheld, however, if the

“amendment: (i) prejudices the opposing party; (ii) is sought in bad faith; (iii) produces an undue delay in litigation; or (iv) is futile.” AmerisourceBergen Corp. v. Dialysist W., Inc., 465 F.3d 946, 951 (9th Cir. 2006). Generally, the Court may not consider any materials beyond the complaint when ruling on a Rule 12(b)(6) motion. Hal Roach Studios, Inc. v. Richard Feiner & Co., 896

F.2d 1542, 1555 n.19 (9th Cir. 1990). If the Court considers evidence outside the pleadings, it must convert a Rule 12(b)(6) motion into a motion for summary judgment under Rule 56. “A court may, however, consider certain materials—documents attached to the complaint, documents incorporated by reference in the complaint, or matters of judicial notice—without converting the motion to dismiss into a motion for summary judgment.” United States v. Ritchie, 342 F.3d 903, 908 (9th Cir. 2003).

Here, Defendants request that the Court consider a document entitled “Letter of Intent,” because it was expressly referenced in the Complaint. See Decl. of Westley, Ex. 1. (Dkt. 18-1, 18-2.) The Complaint references the Letter of Intent (“LOI”) at paragraphs 19 – 21. Compl. ¶¶ 19 – 21. (Dkt. 1.) The Court may properly consider the LOI without converting the motion to one under Rule 56.

BACKGROUND Industrial Builders, Inc.’s (“Industrial Builders”)1 various business specialties include airport baggage handling systems within the United States. Industrial Builders’ owner and president is Dave Erlebach. Robson Handling Technology USA, Inc. (“Robson USA”)2 is in the business of

providing airport baggage handling systems for airports located in the United States. The

1 Industrial Builders is an Idaho corporation with its principal place of business located in Caldwell, Idaho. 2 Robson USA is a Texas corporation with its principal place of business located in Grapevine, Texas. principals of Robson USA include Defendant Matt Williams, its President; Shawn Jones, its Vice President; and Stuart Westley,3 the Director and General Manager for Robson

USA and its parent company, Robson Handling Technology LTD (“Robson UK”). In 2021, Robson USA approached Industrial Builders about doing business together as business partners in the airport baggage handling industry. On or about March 19, 2021, Industrial Builders and Robson USA entered into a Teaming Agreement wherein Robson USA and Industrial Builders agreed they would “work together on an exclusive basis for all aviation projects with an estimated contract value of 5m to 25m”

for a period of five years. Under the Teaming Agreement, the parties agreed that they would work together to bid various projects in the baggage handling industry; that Industrial Builders would serve as the prime contractor for each contract that was awarded; and that Industrial Builders would provide the necessary licensing and bonding. Robson USA would handle

“all other Responsibilities for the project.” The parties also agreed that “Robson will not bid a project in this value range to another Prime Contractor or take on the Prime Contractor role in a tender unless Industrial Builders decides that they do not want to participate in that tender.” After the execution of the Teaming Agreement, Industrial Builders and Robson USA bid on several airport baggage handling projects together,

across the United States.

3 Mr. Westley’s name has also been spelled “Westly.” In his declaration, it is spelled “Westley,” so that is the spelling the Court will use. In February of 2023, Stuart Westley, on behalf of Robson USA and Robson UK, approached Dave Erlebach about Industrial Builders potentially acquiring Robson USA.

Westley and Erlebach executed a Letter of Intent (“LOI”) on or about February 13, 2023. The LOI reflected International Builders’ intentions to acquire Robson USA, and Robson UK’s intentions to sell Robson USA to “[e]ither a current entity of Dave Erlebach or a new entity to be formed by Dave Erlebach or one of his affiliated companies.” Westley Decl., Ex. 1. (Dkt. 18-2.)4 The LOI expressly stated the letter was “non-binding,” and its provisions were for “informational purposes only,” because the prospective transaction

required further “negotiation and documentation, including preparing and executing a final agreement.” On February 14, 2023, Robson USA and Industrial Builders executed a confidentiality agreement and agreed that confidential information may be disclosed for purposes of conducting due diligence associated with the acquisition.5 The Complaint

alleges that, after executing the confidentiality agreement, Robson USA and Erlebach began negotiations associated with Industrial Builders’ potential acquisition of Robson USA. During negotiations, Erlebach communicated with Jones and Westley regarding the potential terms of Industrial Builders’ acquisition of Robson USA. The parties discussed

4 The Complaint incorrectly states that Westley executed the LOI on behalf of Robson USA. See Compl. ¶ 21.

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Industrial Builders, Inc. v. Robson Handling Technology USA Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/industrial-builders-inc-v-robson-handling-technology-usa-inc-idd-2024.