Kinsella v. BELFORTE

373 F. Supp. 2d 957, 2005 U.S. Dist. LEXIS 10748, 2005 WL 1400260
CourtDistrict Court, S.D. Iowa
DecidedJune 2, 2005
Docket4:04 CV 00684 JEG
StatusPublished
Cited by2 cases

This text of 373 F. Supp. 2d 957 (Kinsella v. BELFORTE) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kinsella v. BELFORTE, 373 F. Supp. 2d 957, 2005 U.S. Dist. LEXIS 10748, 2005 WL 1400260 (S.D. Iowa 2005).

Opinion

*958 ORDER ON MOTION TO DISMISS

GRITZNER, District Judge.

Presently before the Court is Defendants’ Motion to Dismiss for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2). ■ This matter came on for hearing April 7, 2005. Representing Plaintiff Kinsella was Fred Anderson; representing Defendants John Belforte II and Beltappo, Inc., was Dennis Johnson. The matter is fully submitted and ready for disposition.

I. JURISDICTION

On December 7, 2004, Defendants removed this case from the Iowa District Court for Polk County, alleging diversity jurisdiction pursuant to 28 U.S.C § 1332. Plaintiff Brian Kinsella is a citizen of the State of Iowa. Defendant John Belforte II is a citizen of the State of Washington. The place of incorporation and the principal place of business of Defendant Beltap-po, Inc., is also the State of Washington. Defendants allege the amount in controversy exceeds $75,000.

II. PERTINENT FACTS

Plaintiff Brian Kinsella has been involved in the wine industry since 1991 and started his own business, “The Wine Company”, in 1995. In addition to operating his own company, from June 1998 through June 2000, Kinsella was a full time consultant and vice president of marketing and sales for The Guardian Cork Company (“Guardian”), part of the Hettinga Technologies group, in Des Moines, Iowa. In his capacity as consultant, Kinsella helped develop and market Guardian’s synthetic cork.

Defendant Beltappo, Inc. (“Beltappo”), is a distributor of synthetic corks which are used primarily by wine producers; Defendant John Belforte II is President of Beltappo. 1 In the Fall of 2000, Belforte came to Des Moines to discuss a possible business relationship with Guardian. During that visit, Belforte met Kinsella. No business relationship ever developed between Beltappo and Guardian.

In the Fall of 2000, Kinsella left Guardian. Shortly thereafter, discussions began between Kinsella and Belforte about Kin-sella’s representation of Beltappo’s cork products. 2 On January 2, 2001, Belforte sent Kinsella a letter, indicating he was pleased Kinsella was interested in representing Belforte’s cork products.

In the letter, Belforte discussed Kinsel-la’s proposed position as Beltappo’s exclusive agent in markets in Canada, South Africa, and the United States — east of the Rockies. In the letter, Belforte asked Kinsella for information he had about markets in Chile, Argentina, France, Greece, and Eastern Europe. Belforte remarked that Kinsella’s experiences and contacts could dramatically impact cork sales in those markets. In conclusion, Belforte expressed that he looked forward to developing a mutually beneficial business relationship with Kinsella. The letter was signed, John S. Belforte II, President — -The Vigo Corp.

It is undisputed that Kinsella and Bel-forte entered into an oral agreement wherein Kinsella was Beltappo’s exclusive agent in Canada and in the United States, east of the Rockies, and nonexclusive agent in other countries, including Italy *959 and Chile. According to the oral agreement, Kinsella was to receive commission from his gross sales. During the course of the contract, Belforte directed all email, faxes, letters, and telephone calls to Kin-sella in Iowa.

In February 2001, Belforte and Kinsella exchanged email regarding Kinsella’s need for supplies and pricing lists for an upcoming wine show. Belforte indicated he would send foreign and domestic price lists, as well as presentation samples and sample corks. He also responded to observations Kinsella made regarding cork imperfections. Belforte stated that he would pass along those observations to his associates as he continued to monitor the situation.

A few days later, Belforte sent Kinsella another email, expressing how pleased he was to be working with a well-trained and educated professional. Belforte asked, “How were you going to test the wine that we bottled with Beltappo and with natural cork? Can your test provide us any objective analytical evidence? Could we generate any type of empirical evidence with your help?” Belforte acknowledged that Kinsella would be ready to initiate trials as soon as samples were delivered. He posed to Kinsella questions regarding provisions for cork orders by smaller wineries in the United States and Canada, such as (1) the size of the orders; (2) whether a private logo would be needed; (3) the size and colors of corks; (4) value to the smaller wineries to have a quality cork immediately available; (5) selling price to these customers; (6) how often would they need corks; and (7) whether orders could be amalgamated to offer savings.

Kinsella responded to Belforte’s questions regarding the smaller North American wineries, opining as to (1) the expected size and frequency of those orders; (2) Beltappo’s need to fill those orders in a timely fashion or risk losing the business; and (3) competitive pricing. Kinsella also requested consulting expenses so he could attend trade shows, indicating he would eventually be earning those costs back when his agency fees kicked in.

In April 2001, Belforte and Kinsella exchanged email regarding bottling test trials Kinsella had performed on the Cortex cork samples. Kinsella relayed problems he encountered during the trials. Belforte concurred with Kinsella’s opinions and indicated he had personally conveyed those opinions to his associates.

In September 2003, Beltappo sent an agreement entitled “Exclusive Agency Agreement”; it was signed by Belforte as President and Chief Executive Officer of Beltappo; Kinsella never signed the agreement. A second proposed “Exclusive Agency Agreement” was sent to Kinsella in July 2004; neither party signed that agreement.

During his business relationship with Beltappo, Kinsella introduced Belforte to several wine distributors. Pertinent to this action were distributors in Chile and Spain — Gonsala Casas and Carolina Rad-man (“Casas/Radman”), and Rich Xiberta (“Xiberta”), respectively. Kinsella asserts that as a result of his fostering those relationships, Beltappo entered into distributorship agreements with Casas/Radman and Xiberta. In his Complaint, Kinsella alleges Beltappo has refused to pay him the portion of gross sales he is entitled to per their agreement.

On November 8, 2004, Kinsella filed a petition in Iowa District Court for Polk County against Belforte and Beltappo, alleging claims for breach of contract, quantum meriut, tortious interference with business relations, and tortious interference with prospective business advantage. On December 7, 2004, Defendants removed the action to this court. On January 18, 2005, Defendants’ Des *960 Moines attorney sent Kinsella a notice of termination of the exclusive agency agreement on behalf of Belforte and Beltappo. On January 6, 2005, Defendants filed the present motion to dismiss, alleging the court lacks personal jurisdiction over the Defendants.

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Bluebook (online)
373 F. Supp. 2d 957, 2005 U.S. Dist. LEXIS 10748, 2005 WL 1400260, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kinsella-v-belforte-iasd-2005.