Westlake Investments, L.L.C. v. MLP Management L.L.C.

707 F. Supp. 2d 904, 2010 U.S. Dist. LEXIS 49442, 2010 WL 1657629
CourtDistrict Court, S.D. Iowa
DecidedJanuary 26, 2010
Docket4:09-cv-95
StatusPublished

This text of 707 F. Supp. 2d 904 (Westlake Investments, L.L.C. v. MLP Management L.L.C.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westlake Investments, L.L.C. v. MLP Management L.L.C., 707 F. Supp. 2d 904, 2010 U.S. Dist. LEXIS 49442, 2010 WL 1657629 (S.D. Iowa 2010).

Opinion

*909 ORDER

JOHN A. JARVEY, District Judge.

This matter comes before the Court pursuant to Defendants MLP Multi-family Construction, L.L.C. (“MLP Multi-family”), MLP Group, L.L.C. (“MLP Group”), and MLP Land Development, L.L.C.’s (“MLP Land”) (collectively “MLP Defendants”) Motion to Dismiss for Lack of Personal Jurisdiction filed on April 10, 2009 [Dkt. No. 32], William Breece (“Breece”) also filed a similar motion on May 15, 2009. [Dkt. No. 53.] Plaintiff Westlake Investment, L.L.C. (‘Westlake”) filed a Resistance to MLP Defendants’ Rule 12(b)(2) Motion to Dismiss Plaintiffs Claims on December 22, 2009 [Dkt. No. 145], and a Resistance to Breece’s motion on December 22, 2009. [Dkt. No. 148.] Breece filed a Reply on January 4, 2010. [Dkt. No. 150.]

For the reasons described below, the Court DENIES in part and GRANTS in part MLP Defendants’ motion [Dkt. No. 32] and GRANTS Breece’s motion [Dkt. No. 53].

I. Procedural Background and Summary of Arguments

The complaint arises out of the sale pursuant to a Purchase Agreement of a property known as Westlake Apartments. Westlake alleges that MLP Defendants failed to construct the Westlake Apartments to a “first class and of workmanlike quality” standard. [Dkt. No. 1-2 at 3.] Westlake asserts causes of action against MLP Defendants ranging from breach of contract and tortious interference to breach of the covenant of good faith and fair dealing. Westlake seeks joint and several judgments against MLP Defendants and Breece.

MLP Defendants and Breece assert that this Court lacks personal jurisdiction over them and this Court must dismiss West-lake’s claims. [Dkt. No. 32 at 4.] MLP Defendants are companies organized under the law of Missouri with their principal place of businesses in Missouri. [Dkt. No. 32 at 2.] John Porta and Stan McCurdy are the members of both MLP Multi-family and MLP Land, and they are both citizens of Missouri. MLP Group’s members are Greg Springmeyer, Bryan Aston, Jim Brueggemann, and Michael Mannion, and they are all citizens of Missouri. William Breece is a citizen of Florida, and is the sole member of Crown Capitol West-lake, L.L.C. (“Crown Capitol”), a Missouri company. MLP Defendants and Breece assert that they were not parties to the Purchase Agreement; are not subsidiaries or parent companies of any parties involved in the sale of Westlake Apartments; were not involved in the sale; did not communicate with Westlake about the transaction or any other Iowa resident in furtherance of a business transaction; deny being physically present in Iowa for purposes of the transaction; did not enter into contracts in the State of Iowa; and generally, did not transact business in the State of Iowa. [Dkt. Nos. 32 & 53.] Accordingly, MLP Defendants and Breece claim that they did not engage in any activity that would grant this court jurisdiction over them under Iowa’s long-arm statute, and that there are insufficient minimum contacts. Westlake resists the MLP Defendants’ and Breece’s Rule 12(b)(2) motions, asserting that the long-arm statute does apply and that there are sufficient minimum contacts for this Court to exercise personal jurisdiction over them. [Dkt. No. 145 & 148.]

II. Legal Standards for Rule 12(b)(2) and Personal Jurisdiction

In a motion to dismiss for lack of personal jurisdiction pursuant to Fed. R.CrvP. 12(b)(2), the complaint must, at a minimum, state sufficient facts to “support a reasonable inference” that the MLP De *910 fendants and Breece “may be subjected to jurisdiction” in Iowa. Steinbuch v. Cutler, 518 F.3d 580, 585 (8th Cir.2008). Because the MLP Defendants and Breece deny there is personal jurisdiction, Westlake has the burden of proving the facts supporting personal jurisdiction. Dever v. Hentzen Coatings, Inc., 380 F.3d 1070, 1072 (8th Cir.2004) (internal quotations omitted). Westlake need not prove personal jurisdiction by a preponderance of the evidence until a court holds an evidentiary hearing or until trial. Dakota Indus., Inc. v. Dakota Sportswear, Inc., 946 F.2d 1384, 1387 (8th Cir.1991). If the district court does not conduct a hearing, then it must consider the facts in the light most favorable to the non-moving party and resolve all conflicts in favor of that party. Romak USA, Inc. v. Rich, 384 F.3d 979, 983-84 (8th Cir.2004); Stevens v. Redwing, 146 F.3d 538, 543 (8th Cir.1998); Digi-Tel Holdings v. Proteq Telecomm., Ltd., 89 F.3d 519, 522 (8th Cir.1996). Thus, Westlake may defeat the motion to dismiss for lack of personal jurisdiction by only making a prima facie showing of jurisdiction, and may do so by exhibits, affidavits, or other evidence. Watlow Elec. Mfg. Co. v. Patch Rubber Co., 838 F.2d 999, 1000 (8th Cir.1988); Scullin Steel Co. v. Nat’l Ry. Utilization Corp., 676 F.2d 309, 311 (8th Cir.1982). At the onset, the Court notes that Westlake failed to file a supporting brief pursuant to Local Rule 7(e) 1 in its Resistance to the MLP Defendants’ Rule 12(b)(2) motion to dismiss.

This Court may “assume jurisdiction over a foreign defendant only to the extent permitted by the forum state’s long-arm statute and by the Due Process Clause of the Constitution.” Dakota Indus., Inc. v. Ever Best Ltd., 28 F.3d 910, 915 (8th Cir.1994); Minnesota Mining and Manuf. Co. v. Nippon Carbide, 63 F.3d 694, 696-97 (8th Cir.1995) ((l)to determine personal jurisdiction, the court must look to whether the long-arm statute “is satisfied; and (2) whether a court’s exercise of jurisdiction” satisfies the Due Process Clause). Iowa has a very broad long-arm statute 2 and expands its “jurisdictional reach to the widest due process parameters” that the Constitution allows. Hammond v. Fl. Asset Financing Corp., 695 N.W.2d 1, 5 (Iowa 2005) (discussing Iowa Rule of Civil Procedure 1.306). Accordingly, this Court’s analysis need only resolve the issue of whether exercising personal jurisdiction over the nonresident MLP Defendants and Breece “is consistent with principles of due process.” Brown v. Kerkhoff, 504 F.Supp.2d 464, 499-500 (S.D.Iowa 2007); see Bell Paper Box, Inc. v. U.S. Kids, Inc., 22 F.3d 816, 818 (8th Cir.1994) (when a long-arm statute is broadly construed, “the inquiry collapses into the single question of whether exercise of personal jurisdiction comports with due process.”).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
707 F. Supp. 2d 904, 2010 U.S. Dist. LEXIS 49442, 2010 WL 1657629, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westlake-investments-llc-v-mlp-management-llc-iasd-2010.