SeedX v. Lincoln Strategy

Court of Appeals for the Tenth Circuit·Decided November 10, 2025·No. 24-8028·Published

Opinion

FILED

United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS November 10, 2025 Christopher M. Wolpert

FOR THE TENTH CIRCUIT Clerk of Court

SEEDX, INC., Plaintiff - Appellant/Cross-Appellee, v. No. 24-8028

LINCOLN STRATEGY GROUP LLC; FORTIFIED CONSULTING LLC; NATHAN SPROUL,

Defendants - Appellees, and KANYE 2020, Defendant - Appellee/Cross-Appellant.

––––––––––––––––––––––––––––––––––– SEEDX, INC., Plaintiff - Appellee, v. No. 24-8036

LINCOLN STRATEGY GROUP, LLC; FORTIFIED CONSULTING, LLC; NATHAN SPROUL,

Defendants, and KANYE 2020,

Defendant - Appellant.

Appeal from the United States District Court for the District of Wyoming (D.C. No. 2:23-CV-00142-ABJ)

Earl Landers Vickery of Vickery & Shepherd, LLP, Houston, TX, for Plaintiff- Appellant/Cross-Appellee SeedX, Inc.

John G. Knepper of Law Office of John G. Knepper, LLC, Cheyenne, WY, for Defendants-Appellees Lincoln Strategy Group, LLC, Fortified Consulting, LLC, and Nathan Sproul.

Amy M. Iberlin of Williams, Porter, Day & Neville, P.C., Casper, WY, for Defendant- Appellee/Cross-Appellant Kanye 2020.

Before HARTZ, McHUGH, and MORITZ, Circuit Judges.

MORITZ, Circuit Judge.

SeedX, Inc. is a marketing and e-commerce company on a quest to recover payment for services it alleges it provided to the Kanye 2020 presidential campaign. As part of that quest, SeedX sued Kanye 2020, along with Lincoln Strategy Group, LLC, Fortified Consulting, LLC, and Nathan Sproul (the Lincoln defendants), in Wyoming district court.

The district court dismissed the claims against Kanye 2020 without prejudice for failure to state a claim. And finding that it lacked personal jurisdiction over the Lincoln defendants, the district court transferred claims against them to district court in Arizona. Kanye 2020 then moved for reconsideration, arguing that the claims

against it should have been dismissed with prejudice. But the Wyoming court responded that it no longer had jurisdiction over the case following the transfer to Arizona. Now, SeedX appeals the transfer of its claims against the Lincoln defendants and the dismissal of its claims against Kanye 2020, and Kanye 2020 cross-appeals, contending the dismissal of the claims against it should have been with prejudice.

On SeedX’s appeal, we lack jurisdiction over the interlocutory transfer order, and we affirm the dismissal of SeedX’s contract claims against Kanye 2020 for failure to state a claim. On Kanye 2020’s cross-appeal, we hold that the district court erred in concluding that it lacked jurisdiction over Kanye 2020’s motion for reconsideration. We thus remand for the district court to consider in the first instance whether the dismissal of SeedX’s contract claims against Kanye 2020 should be with prejudice.

Background 1

The relationship between SeedX and the Lincoln defendants sprouted in June 2020. The Arizona-based Lincoln defendants, comprising Sproul and two entities he created for political consulting and campaign management, reached out to SeedX, a Nevada company, to discuss working together. By August 2020, SeedX had begun providing services to one of the Lincoln defendants’ clients. That same month, the Lincoln defendants asked SeedX if it would be interested in helping with the Kanye

1 Given the procedural posture of this appeal, we accept the facts as alleged in the complaint. See N. Arapaho Tribe v. Becerra, 61 F.4th 810, 813 (10th Cir. 2023).

2020 campaign. SeedX agreed and asked for a written agreement of the terms, and the Lincoln defendants repeatedly assured SeedX that the agreement would be reduced to writing once the scope of the work became clearer.

With no written contract, SeedX began its work for Kanye 2020. Its first product was a slideshow that included graphic designs and marketing and public- relations strategies for the campaign. The Lincoln defendants asked SeedX to replace its name with “Lincoln” on the first slide, and SeedX agreed because the Lincoln defendants would be making the presentation. SeedX then built a campaign website and digital storefront for Kanye 2020. While most of SeedX’s contacts up until that point were with the Lincoln defendants, once the website went live, SeedX also communicated with the Kanye 2020 campaign. SeedX alleges it “became the hub of a massive marketing effort, managing the digital storefront, facilitating online orders for campaign merchandise/donations and gathering/monitoring campaign donor data.” App. vol. 1, 17.

Ultimately, Kanye 2020 paid more than $13.2 million for campaign services in 2020; about $4.8 million of that went to the Lincoln defendants. But SeedX was never paid for its work. So it sued Kanye 2020 and the Lincoln defendants in district court in Wyoming, where Kanye 2020 is based, asserting claims against them for breach of an implied or oral contract, breach of the implied duty of good faith and fair dealing, and unjust enrichment. 2 SeedX also asserted claims for conversion and

2 SeedX initially sued Kanye 2020 and the Lincoln defendants in Texas, but the district court there dismissed the action without prejudice for lack of personal

fraud against the Lincoln defendants. The Lincoln defendants moved to dismiss for lack of personal jurisdiction, while Kanye 2020 moved to dismiss for failure to state a claim.

The district court found it lacked personal jurisdiction over the Lincoln defendants. However, instead of dismissing those claims, the district court transferred them to the District of Arizona—where the Lincoln defendants are based. It did so pursuant to 28 U.S.C. § 1631, which provides that when a district court “finds that there is a want of jurisdiction, the court shall, if it is in the interest of justice, transfer such action or appeal to any other such court . . . in which the action or appeal could have been brought at the time it was filed or noticed.” The district court did so out of concern that the claims, which “appear[ed] to have merit,” would be time-barred if filed anew in Arizona. App. vol. 2, 312. Next, the district court determined that SeedX failed to plausibly allege any claims against Kanye 2020, and it dismissed those claims without prejudice.

Kanye 2020 then moved for reconsideration under Federal Rule of Civil Procedure 59(e), asking the Wyoming court to dismiss the claims against it with prejudice. The district court declined, stating it no longer had jurisdiction because the case was transferred to Arizona.

jurisdiction. See Basulto v. Sproul, No. 21-CV-592, 2021 WL 8018073 (W.D. Tex. Nov. 2, 2021) (unpublished), report and recommendation adopted 2021 WL 8018072 (W.D. Tex. Nov. 30, 2021) (unpublished).

SeedX appeals in Appeal No. 24-8028, and Kanye 2020 cross-appeals in Appeal No. 24-8036. 3 Analysis

SeedX contends the district court erred in transferring its claims against the Lincoln defendants and in dismissing its claims against Kanye 2020. Kanye 2020, for its part, argues the district court erred by dismissing the claims against it without prejudice. I. Jurisdiction We must first determine which issues we have jurisdiction to reach. See City of Albuquerque v. Soto Enters., Inc., 864 F.3d 1089, 1091 (10th Cir. 2017) (conducting jurisdictional inquiry before addressing merits). “We review questions of our appellate jurisdiction de novo.” Id.

Our jurisdiction typically extends only to final decisions of the district courts.

See 28 U.S.C. § 1291. “[T]o be final, a decision must reflect ‘the termination of all matters as to all parties and causes of action.’” 4 Dodge v. Cotter Corp., 328 F.3d 1212, 1221 (10th Cir. 2003) (quoting D & H Marketers, Inc. v. Freedom Oil & Gas, Inc., 744 F.2d 1443, 1444 (10th Cir. 1984) (en banc)). And crucially for our

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