Omni Hotels Management Corp. v. Round Hill Developments Ltd.

675 F. Supp. 745, 1987 U.S. Dist. LEXIS 11700, 1987 WL 23897
CourtDistrict Court, D. New Hampshire
DecidedDecember 17, 1987
DocketCiv. 87-200-D
StatusPublished
Cited by14 cases

This text of 675 F. Supp. 745 (Omni Hotels Management Corp. v. Round Hill Developments Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Omni Hotels Management Corp. v. Round Hill Developments Ltd., 675 F. Supp. 745, 1987 U.S. Dist. LEXIS 11700, 1987 WL 23897 (D.N.H. 1987).

Opinion

ORDER

DEVINE, Chief Judge.

Plaintiff Omni Hotels Management Corporation (“Omni”) (formerly the Dunfey Hotels Corporation), a Delaware corporation with its principal place of business in Hampton, New Hampshire, brings this diversity action against Round Hill Developments Limited (“Round Hill”), a Jamaican corporation with its principal place of business in Hopewell, Jamaica, West Indies, alleging that Round Hill breached management and marketing contracts it had entered into with Omni. Omni seeks compensatory damages of not less than $1.65 million and its costs and attorneys’ fees. Jurisdiction is based on 28 U.S.C. § 1332, the parties being diverse and the amount in controversy exceeding $10,000 exclusive of interest and costs.

Round Hill contends that the Court may not properly assert personal jurisdiction *747 over it and moves for dismissal pursuant to Rule 12(b)(2), Fed.R.Civ.P. Omni objects. Both parties have submitted memoranda, affidavits, and exhibits to support their arguments, and, pursuant to the Court’s Order of October 7, 1987, both parties have addressed the potential applicability of the doctrine of forum non conveniens. The issues being capable of resolution without oral hearing, the Court addresses the merits of Round Hill’s motion on the documents as filed. See Rule 11(g). Rules of the United States District Court for the District of New Hampshire.

Factual Background

Omni and Round Hill entered into two contracts on or about December 16, 1983. The avowed purpose of said contracts was to allow Round Hill to increase the profitability of its Jamaican resort hotel operation (“the complex”) by tapping into Omni’s expertise in the field of hotel marketing and management. See Affidavit of Roger S. Cline, Senior Vice President of Omni [hereinafter “Cline Aff.”] ¶ 27. Reproduced as Exhibits A and B of the complaint, the two contracts are respectively entitled “Management Agreement” and “Marketing and Reservations Agreement” (“Marketing Agreement”). Pursuant to these agreements, Omni was to receive annual fees, incentive fees, and out-of-pocket expenses.

Under the Management Agreement, Omni was to have “absolute control and discretion in the management and operation of the complex.” Complaint, Exhibit A, art. 3.2. The agreement contemplated, inter alia, that Omni would determine the retail prices for amenities offered to guests, set labor policies, negotiate leases and concessions, maintain financial records and control disbursement of revenues, determine and complete necessary repairs to the complex, and hire and fire employees. Id. In short, Omni was to perform all the tasks necessary to successfully operate the complex. The agreement specified that it was to be executed and delivered in Jamaica and “governed by and construed and interpreted in accordance with the laws of Jamaica.” Id., art. 23.2.

Whereas the Management Agreement focused on physical operation of the complex, the Marketing Agreement involved marketing and reservations services Omni was to provide within the United States in order to promote the use of the complex by United States residents. Id., Exhibit B at 1-2. In essence, the Marketing Agreement envisioned that from its New Hampshire base of operations, Omni would advertise, solicit, and organize bookings in the United States for the Round Hill facility and would regularly provide budget forecasts to the complex’s owners. See id. at 2; Cline Aff. 111120, 22-23. The agreement stated that it was to be coterminous with the Management Agreement, Complaint, Exhibit B at 3, but contained no choice-of-law provision such as that found in the Management Agreement.

Omni alleges that it fully carried out its duties as set forth by both agreements and at all times was ready, willing, and able to perform future duties as required. Complaint Ml 9-10. Omni further alleges that Round Hill unilaterally breached the agreements in 1984 by refusing to allow Omni to perform its obligations and by failing to pay contractual payments as due. Id. 1111.

Discussion

Round Hill’s motion to dismiss raises the issue of whether the Court may properly assert personal jurisdiction over Round Hill pursuant to New Hampshire Revised Statutes Annotated (“RSA”) 293-A:121 (Supp. 1986), the New Hampshire long-arm statute applicable to foreign corporations.

“[W]hen a court’s personal jurisdiction over a defendant is contested, the plaintiff has the burden of showing that jurisdiction exists.” Ealing Corp. v. Harrods Ltd., 790 F.2d 978, 979 (1st Cir.1986) (citing, e.g., McNutt v. GMAC, 298 U.S. 178, 189, 56 S.Ct. 780, 785, 80 L.Ed. 1135 (1936)). To meet this burden and avoid dismissal on jurisdictional grounds, a plaintiff need make only “a prima facie showing of jurisdiction supported by specific facts alleged in the pleadings, affidavits, and exhibits.” Id. (and citations therein). A plaintiff’s written allegations of jurisdictional facts *748 are to be construed in the plaintiffs favor, Kowalski v. Doherty, Wallace, Pillsbury & Murphy, 787 F.2d 7, 9 (1st Cir.1986), and a court may consider matters outside the pleadings such as affidavits and other evi-dentiary material without treating the motion to dismiss as a matter for summary judgment, see, e.g., Papafagos v. Fiat Auto, S.p.A., 568 F.Supp. 692, 693 n. 1 (D.N.H.1983) (citing Amoco Oil Co. v. Local 99, IBEW, 536 F.Supp. 1203, 1210 n. 9 (D.R.I.1982) (see citations therein)); C. Wright & A. Miller, 5 Federal Practice and Procedure § 1364 (1969 & Supp.1987); cf. Rule 12(b), Fed.R.Civ.P. (last sentence) (outside materials not to be considered on Rule 12(b)(6) motion unless motion is treated as one for summary judgment).

The Assertion of Personal Jurisdiction Over Round Hill

In order to resolve long-arm jurisdictional issues, the Court applies a two-step analysis. The Court first considers whether the actions at issue fall within the requirements of the long-arm statute. If so, the Court then considers whether the nonresident defendant’s contacts with New Hampshire satisfy due process concerns mandated by the Fourteenth Amendment to the United States Constitution. Kowalski, supra, 787 F.2d at 9-10; Cove-Craft Indus, v. B.L. Armstrong Co., 120 N.H. 195, 198, 412 A.2d 1028, 1030 (1980). Before beginning this analysis, in the interest of clarification the Court addresses Omni’s assertion that a two-step analysis is unnecessary.

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Bluebook (online)
675 F. Supp. 745, 1987 U.S. Dist. LEXIS 11700, 1987 WL 23897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omni-hotels-management-corp-v-round-hill-developments-ltd-nhd-1987.