Missouri River Historical Development, Inc. v. Penn National Gaming, Inc.

283 F.R.D. 501, 83 Fed. R. Serv. 3d 285, 2012 U.S. Dist. LEXIS 99055, 2012 WL 2921509
CourtDistrict Court, N.D. Iowa
DecidedJuly 17, 2012
DocketNo. 12-CV-4007-LRR
StatusPublished

This text of 283 F.R.D. 501 (Missouri River Historical Development, Inc. v. Penn National Gaming, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Missouri River Historical Development, Inc. v. Penn National Gaming, Inc., 283 F.R.D. 501, 83 Fed. R. Serv. 3d 285, 2012 U.S. Dist. LEXIS 99055, 2012 WL 2921509 (N.D. Iowa 2012).

Opinion

ORDER

LINDA R. READE, Chief Judge.

[503]*503 TABLE OF CONTENTS

I. INTRODUCTION........................................................503

II. PROCEDURAL BACKGROUND ..........................................503

III. STANDARDS OF REVIEW...............................................503

IV. FACTUAL BACKGROUND ...............................................504

A. Players .............................................................504

B. Operating Agreement.................................................504

C. Renewal Negotiations................................................505

D. Penn’s Communications with Other Operators..........................505

V. SUBJECT MATTER JURISDICTION......................................505

A. Failure to Join an Indispensable Party................................506

1. Necessary party..................................................506

a. Parties’arguments ...........................................506

b. Applicable law................................................506

c. Discussion...................................................507

2. Whether nonparty can be joined...................................508

3. Whether action can continue in equity and good conscience..........508

a. Rule 19(b) factors.............................................509

b. Additional factors.............................................511

B. Failure to Plead Jurisdictional Amount................................511

IV. FAILURE TO STATE A CLAIM .... .....................................511
VII. CONCLUSION.................... .....................................511
I. INTRODUCTION

The matter before the court is Defendant Penn National Gaming, Inc.’s (“Penn”) “Motion to Dismiss” (“Motion”) (docket no. 17).

II. PROCEDURAL BACKGROUND

On January 12, 2012, Plaintiff Missouri River Historical Development, Inc. (“MRHD”) filed a Complaint (docket no. 2). Count I of the Complaint alleges that Penn interfered with MRHD’s prospective business relationship with other casino operators. Count II of the Complaint alleges that Penn engaged in unfair competition with other casino operators. Count III of the Complaint asks the court to enter a preliminary injunction against Penn enjoining Penn from interfering with MRHD’s prospective business advantage with other casino operators and from engaging in efforts to exclude competition with other casino operators.

On February 3, 2012, Penn filed the Motion on the grounds that MRHD failed to join an indispensable party, failed to plead the requisite amount in controversy to support diversity jurisdiction and failed to state a claim upon which relief may be granted. On February 21, 2012, MRHD filed a Resistance (docket no. 22). On March 2, 2012, Penn filed a Reply (docket no. 23). The parties did not request a hearing on the Motion and the court finds that a hearing is unnecessary. The matter is fully submitted and ready for decision.

III. STANDARDS OF REVIEW

Federal Rule of Civil Procedure 12(b)(6) provides for dismissal on the basis of “failure to state a claim upon which relief can be granted.” Fed.R.Civ.P. 12(b)(6). To survive a Rule 12(b)(6) motion to dismiss, a “complaint must contain sufficient factual matter ... to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)); accord B & B Hardware, Inc. v. Hargis Indus., Inc., 569 F.3d 383, 387 (8th Cir.2009). When considering a Rule 12(b)(6) motion, the court views the evidence in the light most favorable to the nonmoving party. See Coons v. Mineta, 410 F.3d 1036, 1039 (8th Cir.2005) (“When ruling on a motion to dismiss, the court must accept the allegations contained in the complaint as true and draw [504]*504all reasonable inferences in favor of the non-moving party.”).

Federal Rule of Civil Procedure 12(b)(1) provides that a party may raise the defense of “lack of subject-matter jurisdiction” in a motion before answering the complaint filed in any action. Fed.R.Civ.P. 12(b)(1). As subject matter jurisdiction is a threshold consideration, the court has “ ‘broader power to decide its own right to hear the ease than it has when the merits of the ease are reached.’ ” Bellecourt v. United States, 994 F.2d 427, 430 (8th Cir.1993) (quoting Osborn v. United States, 918 F.2d 724, 729 (8th Cir.1990)). When considering a Rule 12(b)(1) motion for lack of subject matter jurisdiction, the court does not grant the same deference to the nonmoving party and has broader power to decide jurisdictional issues than when considering a motion to dismiss under Rule 12(b)(6). “Jurisdictional issues, whether they involve questions of law or fact, are for the court to decide.” Osborn, 918 F.2d at 729.

To dismiss for want of subject matter jurisdiction under Rule 12(b)(1), the moving party must successfully challenge the complaint either “on its face or on the factual truthfulness of its averments.” Titus v. Sullivan, 4 F.3d 590, 593 (8th Cir.1993). In a facial attack to jurisdiction, all of the factual allegations regarding jurisdiction are presumed true and the motion to dismiss succeeds only if the plaintiff fails to allege an element necessary for subject matter jurisdiction. Id. However, in a factual attack to jurisdiction, the court can consider competent evidence, such as affidavits, deposition testimony and the like, in order to determine the factual dispute. Id. In this case, Penn challenges the jurisdictional facts alleged by MRHD; that is, Penn questions whether Belle is an indispensable party whose joinder will destroy the court’s subject matter jurisdiction.

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283 F.R.D. 501, 83 Fed. R. Serv. 3d 285, 2012 U.S. Dist. LEXIS 99055, 2012 WL 2921509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/missouri-river-historical-development-inc-v-penn-national-gaming-inc-iand-2012.