Showalter v. Rinard

752 F. Supp. 963, 1990 U.S. Dist. LEXIS 17210, 1990 WL 210205
CourtDistrict Court, D. Oregon
DecidedDecember 6, 1990
DocketCiv. No. 90-732-FR
StatusPublished
Cited by1 cases

This text of 752 F. Supp. 963 (Showalter v. Rinard) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Showalter v. Rinard, 752 F. Supp. 963, 1990 U.S. Dist. LEXIS 17210, 1990 WL 210205 (D. Or. 1990).

Opinion

OPINION

FRYE, District Judge:

This dispute involves claims arising from a motor vehicle accident and the settlement of that accident. The matters before the court are:

1) the motion (# 28) of defendant State Farm Mutual Automobile Insurance Company to dismiss plaintiff’s second claim for relief, outrageous conduct, pursuant to Fed.R.Civ.P. 12(b)(6); and

2) the motion (#29-1) of defendant Bradley Rinard to dismiss plaintiff’s first claim for relief, negligence, based on lack of personal jurisdiction; and, in the alternative, to dismiss plaintiff’s negligence claim on the grounds that the claim is barred by the statute of limitations (# 29-2).

[965]*965BACKGROUND

On or about December 17, 1986 in Kala-ma, Washington, plaintiff, Craig Showalter, and his wife, Kris Showalter, residents of the State of Washington, were involved in an automobile collision with Bradley Ri-nard, a resident of the State of Washington who was insured under a liability insurance policy issued by State Farm Mutual Automobile Insurance Company (State Farm) in the State of Washington.

Following the automobile accident, the Showalters separated. In January, 1988, State Farm, on behalf of Bradley Rinard, entered into a settlement agreement with Kris Showalter. At the time Kris Showal-ter settled her claim against Bradley Ri-nard, she presented State Farm with a written waiver, purportedly signed by Craig Showalter, which released and signed over the right of Craig Showalter to any settlement proceeds to Kris Showalter. State Farm accepted this waiver and gave the settlement proceeds, $15,000, to Kris Showalter. In his first claim for relief, negligence, Craig Showalter alleges that the automobile accident was caused by the negligence of Bradley Rinard. He seeks to recover for the unpaid medical bills of Kris Showalter, for which he is liable under the laws of the State of Washington, and for damages for loss of consortium caused by the accident.

In his second claim for relief, Craig Showalter alleges that the conduct of State Farm in accepting the waiver presented by Kris Showalter and entering into a settlement agreement with her without regard to his interests constitutes the tort of outrageous conduct.

APPLICABLE LAW

For purposes of a motion under Fed.R.Civ.P. 12(b)(6), the court views the complaint in the light most favorable to the plaintiff and must generally accept as true the facts alleged. Western Mining Council v. Watt, 643 F.2d 618, 624 (9th Cir.), cert. denied, 454 U.S. 1031, 102 S.Ct. 567, 70 L.Ed.2d 474 (1981). The court should dismiss a complaint for failure to state a claim only when it appears beyond doubt that the plaintiff can prove no set of facts in support of the claim which would entitle the plaintiff to relief. Conley v. Gibson, 355 U.S. 41, 45, 78 S.Ct. 99, 101, 2 L.Ed.2d 80 (1957).

ANALYSIS AND RULING

Rinard’s Motion to Dismiss for Lack of Personal Jurisdiction

Bradley Rinard contends that Craig Showalter’s first claim for relief must be dismissed because Rinard is not subject to personal jurisdiction in the State of Oregon. Rinard argues that he is a citizen of the State of Washington; that he has never engaged in any activities within the State of Oregon which relate to this dispute; and that he has never consented to be sued in the State of Oregon. Rinard argues that for this court to exercise personal jurisdiction over him would violate his right to due process of law.

Craig Showalter argues that this dispute relates to the petition he has filed in bankruptcy in the State of Oregon, and therefore this case has been properly filed regardless of the jurisdiction of the state or federal courts.

The issues presented in Craig Show-alter’s first claim for relief do not involve federal bankruptcy laws. Craig Showal-ter’s reliance on the laws governing jurisdiction in bankruptcy proceedings is misplaced. In order to establish personal jurisdiction in a diversity case, a plaintiff must show that the law of the forum state confers personal jurisdiction over the nonresident defendant, and that the exercise of jurisdiction accords with federal constitutional principles of due process. Lake v. Lake, 817 F.2d 1416, 1420 (9th Cir.1987). Rinard argues that he is not subject to the general or specific jurisdiction of this court.

A nonresident defendant may be subject to the general jurisdiction of a state if the activities of the defendant within that state are “substantial” or “continuous and systematic.” Data Disc, Inc. v. Systems Tech. Assocs., Inc., 557 F.2d 1280, 1287 (9th Cir.1977). Craig Showalter has produced [966]*966no evidence of the contact, if any, between Rinard and the State of Oregon. Rinard is, and has been at all times relevant to this dispute, a resident of the State of Washington. The accident which Craig Showalter alleges was caused by the negligence of Rinard occurred in the State of Washington.

Rinard also contends that he is not subject to the specific jurisdiction of this court pursuant to Or.R.Civ.P. 4. Rule 4 L extends personal jurisdiction to the maximum extent allowed by federal principles of due process. State ex rel Hydraulic Servocontrols Corp. v. Dale, 294 Or. 381, 657 P.2d 211 (1982). Due process requires that the nonresident defendant have certain minimum contacts with the forum so that the maintenance of a suit does not offend traditional notions of fair play and substantial justice. International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945).

This circuit has established three criteria to be used in determining whether jurisdiction is properly exercised over a nonresident defendant:

(1) the nonresident defendant must purposefully direct his activities or consummate some transaction with the forum or residents thereof; or perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws; (2) the claim must be one which arises out of or relates to the defendant’s forum-related activities; and (3) the exercise of jurisdiction must comport with fair play and substantial justice, i.e. it must be reasonable.

Lake, 817 F.2d at 1421. The court will consider whether these criteria have been met.

Craig Showalter has not alleged that Rinard purposefully directed his activities toward the State of Oregon or its residents or performed some act by which he availed himself of the benefits of the laws of the State of Oregon. Craig Showalter’s claim arises out of an activity wholly confined within the borders of the State of Washington.

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Related

Showalter v. Rinard
126 B.R. 596 (D. Oregon, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
752 F. Supp. 963, 1990 U.S. Dist. LEXIS 17210, 1990 WL 210205, Counsel Stack Legal Research, https://law.counselstack.com/opinion/showalter-v-rinard-ord-1990.