Warfield v. KR Entertainment, Inc. (In Re Federal Fountain, Inc.)

212 B.R. 960, 1997 U.S. Dist. LEXIS 14427, 1997 WL 580812
CourtDistrict Court, E.D. Missouri
DecidedSeptember 17, 1997
Docket4:97CV1147 CDP
StatusPublished
Cited by5 cases

This text of 212 B.R. 960 (Warfield v. KR Entertainment, Inc. (In Re Federal Fountain, Inc.)) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warfield v. KR Entertainment, Inc. (In Re Federal Fountain, Inc.), 212 B.R. 960, 1997 U.S. Dist. LEXIS 14427, 1997 WL 580812 (E.D. Mo. 1997).

Opinion

*961 MEMORANDUM AND ORDER

PERRY, District Judge.

This matter is before the Court on defendant’s motion to dismiss plaintiffs complaint for lack of personal jurisdiction. In the alternative, defendant requests that the Court abstain from hearing this action pursuant to 28 U.S.C. § 1384(c)(1).

Plaintiff is trustee for the estate of Federal Fountain, Inc., a Chapter 7 debtor. On January 31, 1997, plaintiff filed a three-count complaint in the United States Bankruptcy Court for the Eastern District of Missouri, alleging breach of contract, account stated, and quantum meruit. Jurisdiction was founded on 28 U.S.C. §§ 157 and 1334. On May 30, 1997, the Bankruptcy Court 1 ordered the ease transferred to this Court in response to defendant’s demand for a jury trial, which defendant filed together with its motion to dismiss. In this demand, defendant expressly stated that it was not waiving “any defense or objection, including ... lack of subject matter and/or personal jurisdiction.” For the reasons discussed below, the Court finds that plaintiff has failed to show that the exercise of personal jurisdiction over defendant would be proper. The Court will therefore grant defendant’s motion to dismiss.

I. Factual Background

Defendant KR Entertainment, Inc., is a Nevada corporation with it principal place of business in Las Vegas. On or about January 13, 1995, Federal Fountain, Inc. (“Debtor”) and defendant entered into an agreement whereby Debtor agreed to design, furnish, and install certain equipment for defendant’s live water entertainment show in Las Vegas. Debtor claims that defendant agreed to pay $597,377 for this work. Debtor asserts that it completed the work by the end of June 1995. Debtor acknowledges that defendant has paid part of the $597,377, but claims that defendant still owes $271,986.18, plus interest.

II. Discussion

When a defendant challenges a federal court’s jurisdiction, the plaintiff bears the burden of proving that jurisdiction exists. Moog World Trade Corp. v. Bancomer, S.A., 90 F.3d 1382, 1384 (8th Cir.1996). This burden is not an onerous one. To survive a motion to dismiss for lack of personal jurisdiction, the plaintiff need make only a prima facie showing of personal jurisdiction. DigiTel Holdings, Inc. v. Proteq Telecommunications, Ltd., 89 F.3d 519, 522 (8th Cir.1996). In determining whether the plaintiff has made the requisite showing, the court views the evidence in the light most favorable to the plaintiff and resolves all factual conflicts in the plaintiffs favor. Id.

In federal question cases, the Supreme Court has held that in the absence of any statutory provision for service of process, a federal court must determine a non-resident defendant’s amenability to suit by referring to the long-arm statute of the state in which it sits. Omni Capital Int’l v. Rudolf Wolff & Co., 484 U.S. 97, 108, 108 S.Ct. 404, 411-12, 98 L.Ed.2d 415 (1987). Under the test set forth in International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945), and its progeny, “the constitutional touchstone” in determining whether an exercise of personal jurisdiction comports with due process is “whether the defendant purposefully established ‘minimum contacts’ in the forum State.” Burger King Corp. v. Rudzewicz, 471 U.S. 462, 474, 105 S.Ct. 2174, 2183, 85 L.Ed.2d 528 (1985) (quoting International Shoe, 326 U.S. at 316, 66 S.Ct. at 158).

The Omni Capital case concerned a federal statute that was silent as to service of process. By contrast, in an adversary proceeding such as this one, Rule 7004(d) of the Federal Rules of Bankruptcy Procedure provides that “[t]he summons and complaint and all other process except a subpoena may be served anywhere in the United States.” Fed. R. Bankr.P. 7004(d). Confronted with a federal statute that provides for nationwide service of process, most federal courts have *962 held that the “minimum contacts” to be examined are not those between the defendant and the state, but rather those between the defendant and the nation as a whole. See. e.g., Busch v. Buchman, Buchman & O’Brien, 11 F.3d 1255, 1258 (5th Cir.1994); Diamond Mortgage Corp. v. Sugar, 913 F.2d 1233, 1244 (7th Cir.1990), cert. denied, 498 U.S. 1089, 111 S.Ct. 968, 112 L.Ed.2d 1054 (1991); Go-Video, Inc. v. Akai Elec. Co., 885 F.2d 1406, 1416 (9th Cir.1989). These courts reason that in a case brought under federal question jurisdiction, the sovereign exercising its authority over the defendant is the United States. Busch, 11 F.3d at 1258; Diamond Mortgage Corp., 913 F.2d at 1244. Accordingly, these courts have found the mere fact that a defendant resides in the United States a sufficient basis for a federal court to exercise jurisdiction over him. Diamond Mortgage Corp., 913 F.2d at 1244; but see Republic of Panama v. BCCI Holdings (Luxembourg) S.A., 119 F.3d 935, 947 (11th Cir.1997) (defendant’s minimum contacts with the United States do not “automatically” satisfy fifth amendment’s due process requirements).

The Eighth Circuit appears to be an outlier on this issue. To the limited extent that it has addressed the relevant due process inquiry with respect to a federal statute providing for nationwide service of process, it has endorsed an examination of the defendant’s contacts with the forum state. In South Dakota v. Kansas City Southern Industries, 880 F.2d 40 (8th Cir.1989), cert. denied, 493 U.S. 1023, 110 S.Ct.

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Bluebook (online)
212 B.R. 960, 1997 U.S. Dist. LEXIS 14427, 1997 WL 580812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warfield-v-kr-entertainment-inc-in-re-federal-fountain-inc-moed-1997.