White Buffalo Environmental, Inc. v. Hungry Horse, LLC

CourtDistrict Court, D. New Mexico
DecidedFebruary 25, 2021
Docket1:21-cv-00175
StatusUnknown

This text of White Buffalo Environmental, Inc. v. Hungry Horse, LLC (White Buffalo Environmental, Inc. v. Hungry Horse, LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White Buffalo Environmental, Inc. v. Hungry Horse, LLC, (D.N.M. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OKLAHOMA WHITE BUFFALO ENVIRONMENTAL, INC., an Oklahoma corporation,

Plaintiff,

v. Case No. 20-CV-00461-GKF-JFJ

HUNGRY HORSE, LLC, a New Mexico limited liability company, NATALIE GLADDEN, KATHY RIVERA, HERIBERTO “EDDIE” GAYTAN, JR., DAKOATAH MONTANEZ, and LINDSAY SALGADO, Defendants.

OPINION AND ORDER This matter is before the court on the Motion to Dismiss for Lack of Personal Jurisdiction [Doc. 7] filed by all defendants. Plaintiff White Buffalo Environmental, Inc. opposes the motion. The court must decide whether it has personal jurisdiction over the defendants, and if it does not, whether it should transfer the case. After consideration, the court agrees with the defendants, grants their motion, and transfers the case to the United States District Court for the District of New Mexico. I. Background White Buffalo alleges the following in its Complaint: White Buffalo is an environmental consulting firm organized under the laws of Oklahoma and with its principal place of business in Tulsa County, Oklahoma. [Doc. 2, pp. 1–2 ¶¶ 1, 10]. Steve McFarlin is the President of White Buffalo. [Id. p. 2 ¶ 10]. White Buffalo became familiar with defendant Natalie Gladden in 2018 through work it was providing in Odessa, Texas. [Id. pp. 2–3 ¶¶ 11–12]. McFarlin hired Gladden in April 2018 and agreed to open a White Buffalo office in Hobbs, New Mexico that Gladden would manage. [Id. p. 3 ¶¶ 13–14]. In August 2018, Gladden hired defendant Kathy Rivera to work in the Hobbs office. [Id. p. 3 ¶ 14]. Although Gladden was successful at adding clients and work, leading to an increase in sales for the Hobbs office, the office appeared to not generate a

profit because of expenses. [Id. p. 3 ¶ 15]. “At some point prior to June 1, 2019, . . . Gladden decided to conspire with [defendant] Hungry Horse through Jerry Brian [], an employee of Hungry Horse, and to move all or substantially all of the files, customers, and property of White Buffalo to Hungry Horse, and close down the operations of White Buffalo’s Hobbs office.” [Id. p. 4 ¶ 17]. “White Buffalo was unaware of the activities of Gladden, Hungry Horse, and Brian, and any efforts to move all or substantially all of the files, customers, and property of White Buffalo to Hungry Horse was not authorized by White Buffalo.” [Id. p. 4 ¶ 17]. In furtherance of this conspiracy, Brian visited White Buffalo’s Hobbs office on May 31, 2019 under the auspices that he was there to provide training, but instead he informed White

Buffalo’s employees that they were “going over to Hungry Horse.” [Id. p. 4 ¶ 18]. That same day, a White Buffalo crew supervisor, defendant Heriberto Gaytan Jr. (“Eddie Jr.”), and his entire crew quit and “joined Hungry Horse to work jobs that would have been with White Buffalo but for Gladden having moved the jobs to Hungry Horse[] while she was still employed by White Buffalo.” [Id. p. 4 ¶ 19]. After Eddie Jr. quit, defendant Lindsay Salgado emailed him information about another White Buffalo client so it could be transferred to Hungry Horse. [Id. pp. 5–6 ¶ 24]. On June 3, 2019, Gladden told a job seeker, Frankie Griggs, that “the Hobbs office of White Buffalo was ceasing operations and moving to Hungry Horse.” [Id. p. 5 ¶ 21]. On June 12, 2019, Gladden emailed McFarlin and told him that Eddie Jr. and his crew had quit that day. [Id. p. 5 ¶ 22]. On June 17, 2019, Gladden informed McFarlin that Rivera had quit White Buffalo. [Id. p. 5 ¶ 23]. That same day, Rivera helped defendant Dakoatah Montanez and other White Buffalo employees dispose of thousands of White Buffalo’s soil samples from the Hobbs’ office. [Id. p. 6 ¶ 25].

McFarlin, suspicious that “timesheets were being padded” and by all of the employee departures, traveled to Hobbs on June 20, 2019 with a business consultant and two of White Buffalo’s Tulsa employees. [Id. p. 6 ¶ 26]. McFarlin noticed the Hobbes office “looked like it had been ‘cleaned,’ as there was no work clutter and the shop area, where soil samples, tools, and equipment were stored, was completely empty but for a few tools.” [Id. p. 7 ¶ 27]. While in New Mexico, McFarlin interviewed candidates to audit the Hobbes office. [Id. p. 7 ¶ 29]. Coincidentally, one of the candidates was Griggs, who informed McFarlin about her conversation with Gladden where Gladden told her all operations were being moved from White Buffalo to Hungry Horse. [Id. p. 7 ¶ 29]. On June 21, 2019, Gladden informed McFarlin that she and the other remaining White

Buffalo employees were quitting, and they were taking three of White Buffalo’s clients with them. [Id. p. 7 ¶ 30]. While the employees who quit packed up their belongings, Eddie Jr. and Montanez drove White Buffalo’s John Deere front-end loader away from the Hobbes office. [Id. pp. 7–8 ¶¶ 30–31]. Since the departure of the Hobbes office’s staff, White Buffalo has audited the office and “uncovered evidence of timesheet fraud and embezzlement, theft of equipment, theft/destruction of soil samples, theft of company files, and conspiracy to divert business to Hungry Horse.” [Id. p. 8 ¶ 32]. White Buffalo brings the following counts against the following defendants: • Count I: Breach of Fiduciary Duty—Gladden • Count II: Breach of Duty of Loyalty—all individual defendants1 • Count III: Unjust Enrichment—all individual defendants • Count IV: Conversion—all defendants • Count V: Tortious Interference with Business Relations—Hungry Horse and Gladden • Count VI: Conspiracy—all defendants [Id. pp. 8–12 ¶¶ 33–50]. White Buffalo alleges that Hungry Horse is a limited liability company organized under the laws of New Mexico and that its principal place of business is Lea County, New Mexico. [Id. p. 2 ¶ 2]. In addition, it alleges that all of the individual defendants are residents of New Mexico, with the exception of Salgado who is a resident of Texas. [Id. p. 2 ¶¶ 2–7]. In their motion, all defendants argue that this court cannot exert personal jurisdiction because they do not have sufficient minimum contacts with Oklahoma. [Doc. 7]. White Buffalo disagrees; White Buffalo argues that Gladden and Hungry Horse have sufficient minimum contacts, and that this court can exert jurisdiction over the remaining defendants because they were co-conspirators with Gladden and Hungry Horse. [Doc. 12]. Alternatively, should the court agree with the defendants, White Buffalo requests that the case be transferred to the United States District Court for the District of New Mexico. [Id. pp. 19–20]. The defendants do not object to the case being transferred rather than dismissed. [Doc. 13, p. 1 n.1]. II. Legal Standard A. Federal Rule of Civil Procedure 12(b)(2) Standard In considering a motion to dismiss pursuant to Rule 12(b)(2), a court must determine whether the plaintiff has alleged sufficient facts to establish the court’s personal jurisdiction over the defendant. See Fed. R. Civ. P. 12(b)(2). A plaintiff bears the burden of establishing that the court has personal jurisdiction over all defendants. Dental Dynamics, LLC v. Jolly Dental Grp., LLC, 946 F.3d 1223, 1228 (10th Cir. 2020). However, where, as here, the question of personal

1 The individual defendants means all of the defendants except for Hungry Horse. jurisdiction is disputed in the preliminary stages of litigation, “the plaintiff need only make a prima facie showing of jurisdiction to defeat the motion [to dismiss].” AST Sports Sci., Inc. v. CLF Dist. Ltd., 514 F.3d 1054, 1056 (10th Cir. 2008).

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White Buffalo Environmental, Inc. v. Hungry Horse, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-buffalo-environmental-inc-v-hungry-horse-llc-nmd-2021.