McGinness Energy Company, Inc. v. Independent Tubular Corporation, d/b/a ITC Pipe; Boly Pipe Co., Ltd; and Jol Tubular, Inc.

CourtDistrict Court, D. Kansas
DecidedNovember 18, 2025
Docket6:25-cv-01076
StatusUnknown

This text of McGinness Energy Company, Inc. v. Independent Tubular Corporation, d/b/a ITC Pipe; Boly Pipe Co., Ltd; and Jol Tubular, Inc. (McGinness Energy Company, Inc. v. Independent Tubular Corporation, d/b/a ITC Pipe; Boly Pipe Co., Ltd; and Jol Tubular, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGinness Energy Company, Inc. v. Independent Tubular Corporation, d/b/a ITC Pipe; Boly Pipe Co., Ltd; and Jol Tubular, Inc., (D. Kan. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

MCGINNESS ENERGY COMPANY, INC., ) ) Plaintiff, ) ) v. ) ) INDEPENDENT TUBULAR ) CORPORATION, d/b/a ITC PIPE, ) CIVIL ACTION ) Defendant/ ) No. 25-1076-KHV Third-Party Plaintiff, ) ) v. ) ) BOLY PIPE CO., LTD; and ) JOL TUBULAR, INC., ) ) Third-Party ) Defendants. ) ____________________________________________)

MEMORANDUM AND ORDER AND ORDER TO SHOW CAUSE On February 25, 2025, in the District Court of Barber County, Kansas, plaintiff McGinness Energy Company, Inc. filed suit against Independent Tubular Corporation (“ITC”), alleging that ITC breached its contract and warranty to plaintiff by suppling faulty casing pipe. On April 23, 2025, ITC removed the case to federal court. See Notice of Removal (Doc. #1). ITC later filed a third-party complaint demanding indemnity from Boly Pipe, Ltd. and JOL Tubular, Inc., which had manufactured and supplied the pipe to Commercial Steel Products, LLC, which in turn had supplied it to ITC. This matter is before the Court on Third-Party Defendant JOL Tubular Inc.’s Motion To Dismiss (Doc. #48) filed September 10, 2025. For reasons stated below, the Court conditionally sustains JOL’s motion as to personal jurisdiction and overrules it as to subject matter jurisdiction. Legal Standard JOL asserts that the Court should dismiss plaintiff’s claims under Rules 12(b)(1), 12(b)(2) and 12(b)(6), Fed. R. Civ. P., because (1) the Court lacks subject matter jurisdiction, (2) the Court lacks personal jurisdiction over JOL and (3) ITC’s complaint does not state a claim on which relief can be granted.

When defendant seeks dismissal under Rule 12(b)(1) or 12(b)(2) and 12(b)(6) in the alternative, the Court must first decide the jurisdictional challenges because the latter challenge will be moot if the Court lacks jurisdiction. See Creamer v. Gildemeister, No. 15-4871-KHV, 2015 WL 6828186, at *2 (D. Kan. Nov. 6, 2015). Dismissal under Rule 12(b)(1) is appropriate when the Court lacks subject matter jurisdiction over a claim for relief. The party asserting jurisdiction has the burden of establishing subject matter jurisdiction. Id. (citing Port City Props. v. Union Pac. R.R. Co., 518 F.3d 1186, 1189 (10th Cir. 2008)). Plaintiff bears the burden of establishing jurisdiction and at this stage of the litigation, only needs to make a prima facie showing. See Dudnikov v. Chalk & Vermilion Fine Arts, Inc., 514

F.3d 1063, 1069–70 (10th Cir. 2008). At this stage, the burden on plaintiff is light. See Wenz v. Memery Crystal, 55 F.3d 1503, 1505 (10th Cir. 1995). To the extent that defendant’s affidavits do not controvert the well-pleaded allegations of the complaint, the Court must accept plaintiff’s allegations as true. See id. at 1505. If defendant sufficiently challenges the jurisdictional allegations, however, plaintiff must support them with competent proof. Pytlik v. Prof’l Res., Ltd., 887 F.2d 1371, 1376 (10th Cir. 1989). Plaintiff may do so by affidavit or other written materials which demonstrate facts that—if true—would support jurisdiction. TH Agric. & Nutrition, LLC v. Ace European Grp. Ltd., 488 F.3d 1282, 1286 (10th Cir. 2007). The Court resolves any factual disputes in favor of plaintiff. Wenz, 55 F.3d at 1505. Because the Court lacks personal jurisdiction for reasons discussed below, the Court does not reach the Rule 12(b)(6) arguments. Factual Background The relevant facts are as follows: Plaintiff McGinness Energy Company is a Kansas corporation.

Commercial Steel Products, LLC (“CSP”) is a Texas corporation which distributes pipes nationwide. On December 28, 2023, it purchased casing pipe from JOL, a Texas corporation with its principal place of business in Texas. The parties agreed that Boly Pipe Co. would manufacture the pipe in Thailand and deliver it to CSP in Texas. In January of 2024, CSP sold the pipe to ITC, an Oklahoma corporation with its principal place of business in Oklahoma. ITC sold the pipe to plaintiff and CSP delivered it to plaintiff in Kansas, where it allegedly failed due to a defect. JOL imports and distributes tubular goods within the State of Texas. Boly Pipe is a Taiwan corporation with its principal place of business in Thailand. Boly Pipe’s web site describes JOL as its “Houston Branch,” but the exact nature of the relationship is unclear.

In this action, plaintiff sues ITC, its direct supplier, for breach of contract and warranty. CSP, which supplied the faulty pipe to ITC, is not a party to this case. On June 5, 2025, five months after plaintiff filed this suit, CSP assigned to ITC “(to the fullest extent assignable), all of [its] rights under the warranties of the vendor [JOL] or manufacturer [Boly Pipe] that supplied the goods.” Email from Cameron Kirkpatrick (CSP) To Tyler Allred (ITC) (Doc #53-1). In bringing its third-party indemnity claim against Boly Pipe and JOL, ITC relies on this assignment. According to the sworn Declaration Of Jianyang Zhou In Support Of JOL Tubular, Inc.’s Motion To Dismiss (Doc #49-1) filed September 10, 2025, the Purchase Order between CSP and JOL did not allow assignment without prior written consent from both CSP and JOL, and JOL never consented for CSP to assign its Purchase Order to ITC or anyone else. See Memorandum Of Law In Support Of Third-Party Defendant JOL Tubular Inc.’s Motion to Dismiss (Doc. #49) filed September 10, 2025. Zhou declares that he is the Marketing Manager of JOL, has personal knowledge of the facts declared and handled the account relevant to this lawsuit. He also declares that JOL has not marketed goods to, sold goods in, or shipped goods to Kansas, has not had any

contacts with Kansas or held an office in the State of Kansas. On October 1, 2025, ITC accessed a LinkedIn account that purports to belong to Zhou. Screen shots of the account list Zhou’s employment dates in Chinese, which ITC translates to say that Zhou worked as “Supply and Marketing Director” from October of 2019 to February of 2023, then “Sales Director” of Boly Pipe from January of 2023 to the present. See Third-Party Plaintiff ITC’s Response To Third-Party Defendant JOL’s Motion To Dismiss (Doc. #53) at 9–10. The main title at the top of Zhou’s page reads “Marketing Manager at JOL Group.” Id. Analysis JOL argues that it is entitled to dismissal of ITC’s indemnity claims because under

Rule 12(b)(1) the Court lacks subject matter jurisdiction, under Rule 12(b)(2) the Court lacks personal jurisdiction over JOL and under Rule 12(b)(6) ITC fails to state a claim. A court without jurisdiction over the parties cannot render a valid judgment. See OMI Holdings, Inc. v. Royal Ins. Co. of Canada, 149 F.3d 1086, 1090 (10th Cir. 1998). Accordingly, before addressing the merits, the Court must determine whether it has subject matter jurisdiction over these claims and personal jurisdiction over JOL. See id.; see also First Magnus Financial Corp. v. Star Equity Funding, LLC, No. 06-2426-JWL, 2007 WL 635312, at *4 (D. Kan. Feb. 27, 2007) (not addressing merits of Rule 12(b)(6) motion because court lacked personal jurisdiction). I. 12(b)(1) Subject Matter Jurisdiction JOL argues that the Court lacks subject matter jurisdiction because (1) ITC does not have standing to sue and (2) ITC’s claim is not ripe. ITC responds that it does have standing through privity of contract and that its indemnification claim is ripe. The concept of constitutional standing is derived from Article III of the U.S. Constitution,

which limits the exercise of the federal judicial power to cases and controversies. U.S. Const. art.

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McGinness Energy Company, Inc. v. Independent Tubular Corporation, d/b/a ITC Pipe; Boly Pipe Co., Ltd; and Jol Tubular, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcginness-energy-company-inc-v-independent-tubular-corporation-dba-ksd-2025.