RFD-TV v. WildOpenFence Finance

CourtNebraska Supreme Court
DecidedJune 13, 2014
DocketS-13-581
StatusPublished

This text of RFD-TV v. WildOpenFence Finance (RFD-TV v. WildOpenFence Finance) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RFD-TV v. WildOpenFence Finance, (Neb. 2014).

Opinion

Nebraska Advance Sheets 318 288 NEBRASKA REPORTS

which may have prevented this accident. But because it retains sovereign immunity with respect to such discretionary func- tions, it cannot be held legally liable for its inaction. For these reasons, we affirm the judgment of the district court. Affirmed. Heavican, C.J., not participating.

RFD-TV, LLC, appellant, v. WildOpenWest Finance, LLC, doing business as Wow! Cable, and K nology, I nc., appellees. ___ N.W.2d ___

Filed June 13, 2014. No. S-13-581.

1. Motions to Dismiss: Jurisdiction: Pleadings: Evidence. When a trial court relies solely on pleadings and supporting affidavits in ruling on a motion to dis- miss for want of personal jurisdiction, the plaintiff need only make a prima facie showing of jurisdiction to survive the motion. However, if the court holds an evidentiary hearing on the issue or decides the matter after trial, then the plaintiff bears the burden of demonstrating personal jurisdiction by a preponderance of the evidence. 2. Jurisdiction: Appeal and Error. An appellate court examines the question of whether the nonmoving party has established a prima facie case of personal juris- diction de novo. 3. Motions to Dismiss: Appeal and Error. In reviewing the grant of a motion to dismiss, an appellate court must look at the facts in the light most favorable to the nonmoving party and resolve all factual conflicts in favor of that party. 4. Judgments: Appeal and Error. An appellate court determines questions of law independently of the determination reached by the lower court. 5. Courts: Jurisdiction: Pleadings: Affidavits. A trial court may elect to decide the issue of personal jurisdiction before trial, or it may defer the matter until trial. A trial court also has discretion in electing whether to decide a matter based on pleadings and affidavits, or conduct a hearing and receive evidence. 6. Summary Judgment: Motions to Dismiss: Proof. If a motion to dismiss is treated as one for summary judgment, then the movant carries the burden of showing that there is no genuine issue as to any material fact. 7. Summary Judgment: Motions to Dismiss: Jurisdiction: Affidavits. When the issue on a motion to dismiss is personal jurisdiction, affidavits may be submitted without converting the motion into one for summary judgment. 8. Jurisdiction: Words and Phrases. Personal jurisdiction is the power of a tribu- nal to subject and bind a particular entity to its decisions. 9. Due Process: Jurisdiction: States. Before a court can exercise personal juris- diction over a nonresident defendant, the court must determine, first, whether Nebraska Advance Sheets RFD-TV v. WILDOPENWEST FINANCE 319 Cite as 288 Neb. 318

the long-arm statute is satisfied and, if the long-arm statute is satisfied, second, whether minimum contacts exist between the defendant and the forum state for personal jurisdiction over the defendant without offending due process. 10. ____: ____: ____. When a state construes its long-arm statute to confer juris- diction to the fullest extent permitted by the Due Process Clause, the inquiry collapses into the single question of whether exercise of personal jurisdiction comports with due process. 11. ____: ____: ____. Due process for personal jurisdiction over a nonresident defend­ nt requires that the plaintiff allege specific acts by the defendant which a establish that the defendant had the necessary minimum contacts before a Nebraska court can exercise jurisdiction over a person. 12. Jurisdiction: States. When considering the issue of personal jurisdiction, it is essential in each case that there be some act by which the defendant purposely avails himself or herself of the privilege of conducting activities within the forum state, thus invoking the benefits and protections of its laws. 13. Due Process: Jurisdiction: States. The benchmark for determining whether the exercise of personal jurisdiction satisfies due process is whether the defendant’s minimum contacts with the forum state are such that the defendant should reason- ably anticipate being haled into court there. 14. States: Parties: Statutes. Parties who reach out beyond one state and cre- ate continuing relationships and obligations with citizens of another state are subject to regulation and sanctions in the other state for the consequences of their activities.

Appeal from the District Court for Douglas County: J. Michael Coffey, Judge. Affirmed as modified. Steven D. Davidson and Krista M. Eckhoff, of Baird Holm, L.L.P., for appellant. Megan S. Wright, of Cline, Williams, Wright, Johnson & Oldfather, L.L.P., and Vince M. Roche, of Davenport, Evans, Hurwitz & Smith, L.L.P., for appellees. Heavican, C.J., Stephan, McCormack, and Cassel, JJ., and Inbody, Chief Judge. Heavican, C.J. I. INTRODUCTION RFD-TV, LLC (RFD), filed a complaint against WildOpenWest Finance, LLC, doing business as WOW! Cable (WOW), and Knology, Inc., for breach of contract related to the termination of a cable television affiliation agreement. The defendants moved to dismiss the complaint for lack Nebraska Advance Sheets 320 288 NEBRASKA REPORTS

of personal jurisdiction. After a hearing, the district court dismissed the case with prejudice. RFD appeals. We affirm as modified. II. BACKGROUND Appellant, RFD, is a television programming service focused on the interests of rural and agricultural counties. RFD is a Delaware limited liability company that claims Omaha, Nebraska, as its principal place of business. Knology and WOW are cable television providers operating in several locations, including Kansas and South Dakota. Knology is a Delaware corporation with its principal place of business in Georgia. WOW is a Delaware limited liability company with its principal place of business in Colorado. Neither Knology nor WOW has subscribers in the State of Nebraska, and neither company maintains a physical presence in Nebraska. On December 14, 2009, RFD executed an affiliation agree- ment (Sunflower Agreement) with The World Company, doing business as Sunflower Broadband Corporation (Sunflower). The Sunflower Agreement granted Sunflower a nonexclu- sive right and license to distribute RFD programming to Sunflower’s subscribers in Lawrence, Kansas, in exchange for a monthly per-subscriber license fee. The Sunflower Agreement was for an initial term of 5 years, expiring on December 13, 2014. The Sunflower Agreement provides that it “shall be governed by, construed, and enforced in accord­ ance with the laws of the State of Nebraska” and states that “[a]ny dispute arising in or relating to this Agreement shall be resolved by binding arbitration in Omaha, Douglas County, Nebraska . . . .” Knology purchased Sunflower’s assets in August 2010. Prior to acquiring Sunflower, Knology was pro- viding cable service to subscribers in Sioux Falls and Rapid City, South Dakota. In June 2012, Knology became a wholly owned subsidiary of WOW. In October, Knology and WOW informed RFD that as of December 1, 2012, they no longer intended to provide RFD programming to their subscribers. Knology and WOW ceased distribution of RFD programming and did not pay fees to RFD in December 2012. Nebraska Advance Sheets RFD-TV v. WILDOPENWEST FINANCE 321 Cite as 288 Neb. 318

On December 28, 2012, RFD filed a complaint alleging that Knology had ratified and adopted the Sunflower Agreement by distributing RFD programming to its subscribers in both Kansas and South Dakota and paying RFD the monthly fee according to the pricing structure provided in the Sunflower Agreement. In its complaint, RFD alleges Knology breached the Sunflower Agreement when it stopped making monthly fee payments to RFD before the contract expired. Knology and WOW (hereinafter collectively appellees) filed a motion to dismiss under Neb. Ct. R. Pldg.

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RFD-TV v. WildOpenFence Finance, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rfd-tv-v-wildopenfence-finance-neb-2014.