Stage Nine Design, LLC v. Rock-It Cargo, LLC

District Court, E.D. California·Decided August 12, 2021·No. 2:21-cv-00722·Unknown

Opinion

----oo0oo---- STAGE NINE DESIGN, LLC, No. 2:21-cv-00722-WBS-AC Plaintiff, v. ORDER RE: DEFENDANT GLOBALTRANZ’S MOTION TO ROCK-IT CARGO USA, LLC; VALUED DISMISS FREIGHT SERVICES, LLC; GLOBALTRANZ ENTERPRISES, LLC; SPN CARGO, INC.; and DOES 1 to 20, inclusive, Defendants. ----oo0oo---- Plaintiff Stage Nine Design, LLC (“Stage Nine”) brought this action against defendants Rock-It Cargo USA, LLC (“Rock- It”), Valued Freight Services, LLC (“Valued Freight”), GlobalTranz Enterprises, LLC (“GlobalTranz”), and SPN Cargo, Inc. (“SPN”), for breach of contract, negligence, and violations of the Carmack Amendment to the Interstate Commerce Act, 49 U.S.C. § 14706.1 (See generally GlobalTranz’s Notice of Removal, Ex. A

1 Stage Nine’s complaint was created using “Cause of (“Compl.”) (Docket No. 1-1).) GlobalTranz now moves to dismiss Stage Nine’s claims against it on the ground that this court lacks personal jurisdiction. (Mot. to Dismiss (Docket No. 21).) I. Factual Background In April 2020, Stage Nine engaged Rock-It to ship its traveling pop culture museum exhibition (entitled “Hall of Heroes”) from West Palm Beach, Florida, to the Springfield Museum in Springfield, Massachusetts. (Compl. ¶ 3.) Shortly thereafter, Rock-It subcontracted its obligations under the engagement to Valued Freight, who subsequently subcontracted the shipment to GlobalTranz. (Compl. ¶ 4.) On July 8, 2020, GlobalTranz contracted with SPN to operate as a motor carrier for the shipment. (Id.)

Action” forms provided by the Judicial Council of California. The complaint contains two “Cause of Action” forms--one for breach of contract, and one for negligence--with numbered allegations attached to each. (See Compl. at 14-18, 19-22.) In the thirteenth paragraph of the allegations supporting each cause of action, Stage Nine also alleges that defendants are liable for Stage Nine’s losses under 49 U.S.C. § 14706. (See Compl. at 14, 19.) The “Cause of Action” for negligence further states: “Additionally, pursuant to 49 U.S.C. § 14706, defendants and each of them, by their actions and/or words, were “carriers” within the meaning of the statute, and therefore are liable for plaintiff’s losses as a matter of law.” (See Compl. at 15.) The court therefore construes plaintiff’s complaint as asserting three claims against defendants: (1) breach of contract, (2) negligence, and (3) violations of the Carmack Amendment to the Interstate Commerce Act, 49 U.S.C. § 14706. Additionally, the allegations listed in support of Stage Nine’s second “Cause of Action” for negligence are identical to allegations listed in support of its “Cause of Action” for breach of contract. (Compare Compl. at 19-22 with Compl. at 14-18.) Any subsequent references to numbered allegations in Stage Nine’s complaint will therefore correspond with the allegations listed in support of Stage Nine’s first “Cause of Action,” located at pages 14-18 of the complaint. On July 10th, SPN picked up the exhibition trailer from West Palm Beach. (Compl. ¶ 5.) En route to Massachusetts, the SPN driver, Veljko, stopped at the Kenworth dealer in Riviera Beach, Florida, because he noticed the “check engine” light illuminate on his tractor. (Id.) Stage Nine alleges that Veljko left the trailer on the street unattended and unsecured near the dealership as the tractor was being serviced. (Id.) Sometime between July 10th and 11th, the trailer was stolen, and still has not been recovered. (Id.) Stage Nine alleges the value of the goods lost to be approximately $462,742. (Id.) Stage Nine and Rock-It’s relationship was governed by a 2017 written agreement, in which Rock-It agreed to perform transportation brokerage services and logistics assistance on behalf of Stage Nine (the “2017 Agreement”). (Compl. ¶ 1.) (Compl. ¶¶ 1, 17-18.) Stage Nine claims that Rock-It breached the terms of this agreement by “failing to use its best efforts to select and engage responsible carriers and other transportation intermediaries,” failing to “ensure there was adequate insurance without exclusions to protect Stage Nine,” and failing to “properly and reasonable supervise and oversee the shipment.” (Compl. ¶ 17.) Stage Nine further claims that Valued Freight, GlobalTranz, and SPN each breached their respective agreements with Stage Nine, as a third-party beneficiary, for similar reasons as articulated in its claims against Rock-It, (see Compl. ¶¶ 18-20), and that each defendant is strictly liable for Stage Nine’s losses under the Carmack Amendment to the Interstate Commerce Act (see Compl. at 15). When it answered Stage Nine’s complaint, SPN filed its own cross-claim against GlobalTranz. (See Answer of Defendant SPN Cargo, Inc. and Cross-Claim against Co-Defendant GlobalTranz Enterprises, LLC, at 14-17 (“SPN Cross-Claim”) (Docket No. 7).) It is not clear exactly what claims SPN is asserting against GlobalTranz, as the cross-claim only contains factual allegations and does not expressly label or list any claims, but, similar to Stage Nine’s complaint, the thrust of SPN’s cross-claim appears to be that GlobalTranz breached its contract with SPN, was negligent, and is liable under the Carmack Amendment because it failed to correctly and fully inform SPN of the value of the cargo it asked SPN to transport. (See id.) II. Discussion Federal Rule of Civil Procedure 12(b)(2) authorizes dismissal of a plaintiff’s claims where the court lacks personal jurisdiction over the defendant. See Fed. R. Civ. P. 12(b)(2). In opposing a defendant's motion to dismiss for lack of personal jurisdiction, the plaintiff bears the burden of establishing that jurisdiction is proper. CollegeSource, Inc. v. AcademyOne, Inc., 653 F.3d 1066, 1073 (9th Cir. 2011). “Where, as here, the defendant's motion is based on written materials rather than an evidentiary hearing, ‘the plaintiff need only make a prima facie showing of jurisdictional facts to withstand the motion to dismiss.’” Id. (quoting Brayton Purcell LLP v. Recordon & Recordon, 606 F.3d 1124, 1127 (9th Cir. 2010)). A plaintiff may not simply rest on the “bare allegations of [the] complaint,” but uncontroverted allegations must be taken as true, and “[c]onflicts between parties over statements contained in affidavits must be resolved in the plaintiff's favor.” Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004). “Personal jurisdiction over a nonresident defendant is tested by a two-part analysis. First, the exercise of jurisdiction must satisfy the requirements of the applicable state long-arm statute. Second, the exercise of jurisdiction must comport with federal due process.” Chan v. Soc'y Expeditions, Inc., 39 F.3d 1398, 1404–05 (9th Cir. 1994). California’s long-arm statute allows courts to “exercise jurisdiction on any basis not inconsistent with the Constitution of [California] or of the United States.” Cal. Code Civ. Proc. § 410.10. This provision allows courts to exercise jurisdiction to the limits of the Due Process Clause of the U.S. Constitution. See Mattel, Inc. v. Greiner & Hausser GmbH,

Stage Nine Design, LLC v. Rock-It Cargo, LLC, (E.D. Cal. 2021).

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