VGM Financial Services v. Singh

708 F. Supp. 2d 822, 2010 U.S. Dist. LEXIS 42744, 2010 WL 1731648
CourtDistrict Court, N.D. Iowa
DecidedApril 30, 2010
Docket09-CV-2045-LRR
StatusPublished
Cited by2 cases

This text of 708 F. Supp. 2d 822 (VGM Financial Services v. Singh) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
VGM Financial Services v. Singh, 708 F. Supp. 2d 822, 2010 U.S. Dist. LEXIS 42744, 2010 WL 1731648 (N.D. Iowa 2010).

Opinion

*826 ORDER

LINDA R. READE, Chief Judge.

TABLE OF CONTENTS

I. INTRODUCTION.........................................................826

II. PROCEDURAL BACKGROUND............................................826

III. SUBJECT MATTER JURISDICTION.......................................827

IV. STANDARD OF REVIEW..................................................827

V. RELEVANT FACTUAL BACKGROUND.....................................827

A. Parties...............................................................827

B. Transaction..........................................................827

C. Prior Action..........................................................829

VI. ANALYSIS...............................................................830

A. Personal Jurisdiction .................................................830

1. Personal jurisdiction standard.....................................830

2. Personal jurisdiction over Cynosure.................................831

a. Judicial estoppel ..............................................831

b. Forum selection clauses in Lease and Guaranty..................833

c. Cynosure’s contacts with Iowa..................................835

i. VGM-financed transactions................................836

ii. Cynosure’s website........................................837

Hi. Remaininy contacts with Iowa.............................839

d. Conclusion....................................................841

B. Venue................................................................841
VII. CONCLUSION............................................................841
I. INTRODUCTION

The matter before the court is the “Motion to Dismiss Amended Third Party Complaint for Lack of Personal Jurisdiction and Improper Venue” (“Motion”) (docket no. 25), filed by Third-Party Defendant Cynosure, Inc. (“Cynosure”).

II. PROCEDURAL BACKGROUND

On August 3, 2009, Plaintiff VGM Financial Services (“VGM”) filed a “Petition at Law” (“Complaint”) against Varinder K. Singh, M.D., P.C. (“Singh P.C.”) and Varinder K. Singh (“Dr. Singh”) (together, “Singh”) in the Iowa District Court for Black Hawk County, Case No. LACV 109968. On August 19, 2009, Singh removed the action to this court pursuant to 28 U.S.C. § 1441.

On August 21, 2009, Singh filed an Answer (docket no. 7) to the Complaint and asserted counterclaims against VGM. That same date, Singh filed a five-count Third-Party Complaint (docket no. 8) against Cynosure. In the Third-Party Complaint, Singh asserted claims against Cynosure for fraud, negligent misrepresentation, negligence, breach of warranty and common law indemnity. On September 8, 2009, VGM filed an Answer to Singh’s counterclaims (docket no. 12).

On November 10, 2009, Cynosure filed a “Motion to Dismiss Third Party Complaint for Lack of Personal Jurisdiction and Improper Venue” (“First Motion to Dismiss”) (docket no. 15). On November 27, 2009, Singh filed a Resistance (docket no. 17) to *827 the First Motion to Dismiss. That same date, Singh filed an Amended Third-Party Complaint (docket no. 16) against Cynosure. On December 4, 2010, Cynosure filed a Reply (docket no. 19) in support of the First Motion to Dismiss.

On February 2, 2010, the undersigned issued an Order (docket no. 24). In the Order, the court noted that the Amended Third-Party Complaint “ supercede [d] the Third-Party Complaint and render[ed] it legally ineffective.” Order at 2. Because the First Motion to Dismiss sought dismissal of the Third-Party Complaint — not the Amended Third-Party Complaint — the court denied the First Motion to Dismiss as moot with leave to refile.

On February 12, 2010, Cynosure filed the Motion. On March 1, 2010, Singh filed a Resistance (docket no. 27). On March 8, 2010, Cynosure filed a Reply (docket no. 33). On April 8, 2010, Singh filed a Supplemental Resistance (“Supp. Resistance”) (docket no. 50). On April 15, 2010, Cynosure filed a Surreply (docket no. 52).

III.SUBJECT MATTER JURISDICTION

The court has diversity jurisdiction over this case because complete diversity exists among the parties and the amount in controversy exceeds $75,000. See 28 U.S.C. § 1332 (“The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between citizens of different States”). The court is satisfied that subject matter jurisdiction exists.

IV.STANDARD OF REVIEW

The party seeking to establish personal jurisdiction bears the burden to prove it exists. Romak USA, Inc. v. Rich, 384 F.3d 979, 983-84 (8th Cir.2004). At this stage in the proceedings, Singh need not prove personal jurisdiction by a preponderance of the evidence. Id. at 983. Rather, Singh need only make a prima facie showing of jurisdiction. Id. Singh may use affidavits, exhibits or other evidence to meet its burden. Id. The court must review the evidence in the light most favorable to the non-moving party. Id.

V.RELEVANT FACTUAL BACKGROUND

A. Parties

VGM is a division of TCF Equipment Finance, a Minnesota corporation. VGM’s principal place of business is in Waterloo, Iowa. Singh P.C. is a Georgia professional corporation with a principal place of business in Duluth, Georgia. Dr. Singh is a medical doctor and resides in Duluth, Georgia. Dr. Singh owns Singh P.C.

Cynosure is a Delaware corporation with its principal place of business in Massachusetts. Cynosure manufactures medical devices, including the Cynosure SmartLipo Laser Body Sculpting Workstation (“Equipment”).

B. Transaction

In early 2008, Mike Denkman, a sales manager for Cynosure, contacted Dr. Singh regarding a possible purchase of the Equipment. According to Denkman, he did so after Dr. Singh expressed interest in the Equipment via Cynosure’s website.

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708 F. Supp. 2d 822, 2010 U.S. Dist. LEXIS 42744, 2010 WL 1731648, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vgm-financial-services-v-singh-iand-2010.