Brown v. Kerkhoff, No. 4:06-cv-00342-JEG.
| Court | United States District Courts. 8th Circuit. United States State District Court of Southern District of Iowa |
| Writing for the Court | Gritzner |
| Citation | 504 F.Supp.2d 464 |
| Parties | Heidi BROWN, and Heidi Brown as Parent and Next Friend of Trevor Rhiner, Individually and On Behalf of All Others Similarly Situated, Plaintiffs, v. Dr. Paul KERKHOFF; Kerkhoff Chiropractic; The Masters Circle; Dr. Larry Markson; Dr. Bob Hoffman; Dr. Dennis Perman; and John Does, Defendants. |
| Docket Number | No. 4:06-cv-00342-JEG. |
| Decision Date | 23 August 2007 |
v.
Dr. Paul KERKHOFF; Kerkhoff Chiropractic; The Masters Circle; Dr. Larry Markson; Dr. Bob Hoffman; Dr. Dennis Perman; and John Does, Defendants.
Page 465
COPYRIGHT MATERIAL OMITTED
Page 466
COPYRIGHT MATERIAL OMITTED
Page 467
COPYRIGHT MATERIAL OMITTED
Page 468
COPYRIGHT MATERIAL OMITTED
Page 469
COPYRIGHT MATERIAL OMITTED
Page 470
COPYRIGHT MATERIAL OMITTED
Page 471
Kimberley K. Baer, Steven P. Wandro, Wandro & Associates PC, Des Moines, IA, for Plaintiffs.
James H. Gilliam, Sean P. Moore, Brown Winick Graves Gross Baskerville Schoenebaum, Des Moines, IA, Jonathan R. Poole, Mary M. Brockington, Strickland Brockington Lewis LLP, John E. Floyd, Bondurant Mixon & Elmore LLP, Atlanta, GA, for Defendants.
GRITZNER, District Judge.
This matter comes before the Court on a Motion to Dismiss for Failure to State a Claim (Clerk's No. 21) filed by Defendants Kerkhoff Chiropractic, The Masters Circle, Inc., Larry Markson, Bob Hoffman, Dennis Perman, and Paul Kerkhoff; a Motion to Dismiss for Lack of Personal Jurisdiction (Clerk's No. 22) filed by Defendants The Masters Circle, Inc., Larry Markson, Bob Hoffman, and Dennis Perman; and a Motion for Leave to File Third Amended Complaint and Dissolve or Modify the State Court's June 15, 2006, Order Pursuant to 28 U.S.C. 1450 filed by Plaintiffs (Clerk's No. 33). Plaintiffs are represented by Kimberley Baer, Steven Wandro, and Kasey Kincaid. Defendants are represented by Mary Brockington, Jonathan Poole, James Gilliam, and Sean Moore. Following an April 27, 2007, hearing, these matters are fully submitted and are ready for disposition.1
TABLE OF CONTENTS
FACTUAL AND PROCEDURAL HISTORY...........................................................474
I. Factual Allegations................................................................474
A. The Defendants.................................................................474
B. Defendants' Alleged Wrongful Practices.........................................476
C. The Proposed Class Representatives.............................................477
1. Heidi Brown and Trevor Rhiner..............................................477
2. Cynthia Christian..........................................................478
D. Nonresident Defendants' Contacts with Iowa.....................................478
1. The Masters Circle.........................................................478
a. Physical Presence......................................................478
b. Virtual Presence.......................................................481
2. Individual Nonresident Defendants..........................................481
a. Markson................................................................481
b. Hoffman................................................................482
c. Perman.................................................................482
II. Procedural History...................................................................483
DISCUSSION...............................................................................483
Page 472
I. Issues Related to Standing.........................................................483
A. Relevance of the State Court's June 2006 Order.................................483
B. Standing of Brown and Rhiner to Sue The Masters Circle, Hoffman,
Markson, and Perman..........................................................484
1. Applicable Legal Standards.................................................484
2. Discussion.................................................................485
3. The Third Amended Complaint................................................486
C. Conclusion.....................................................................487
II. Motion to Dismiss for Lack of Personal Jurisdiction................................487
A. Applicable Legal Standards.....................................................487
1. Burden of Proof............................................................487
2. Constitutional and Statutory Considerations................................488
a. Service of Process.....................................................488
b. Constitutional Parameters..............................................489
B. Personal Jurisdiction Under RICO...............................................489
1. Statutory Authorization....................................................489
a. Statutory Provisions...................................................489
b. Analysis...............................................................490
i. The Argument for Subsection (d)...................................491
ii. The Argument for Subsection (b)...................................491
iii. Application of Subsection (b).....................................493
(a) The Ninth Circuit Approach....................................494
(b) The Tenth Circuit Approach....................................494
(c) Application of the Tests......................................495
2. Constitutional Considerations..............................................497
3. Conclusion.................................................................497
C. Personal Jurisdiction Under the Calder "Effects" Test..........................497
1. Applicable Legal Standards.................................................497
2. Discussion.................................................................498
D. Personal Jurisdiction Under the Iowa Long-Arm Statute..........................499
1. Applicable Legal Principles................................................499
2. Summary of Defendants' Contacts............................................501
a. The Masters Circle.....................................................501
b. Individual Defendants..................................................503
3. Nature, Quality, and Quantity of the Nonresident Defendants'
Contacts, and the Relation of Such Contacts to Plaintiffs' Causes of
Action...................................................................503
a. The Masters Circle...................................................503
i. Internet Contacts...............................................503
(a) Legal Standards.............................................504
(b) Analysis....................................................506
ii. Non-Internet Contacts...........................................508
iii. Individual Defendants...........................................512
iv. Conclusion......................................................512
4. Interest of the Forum State and Convenience of the Parties.................512
5. Conclusion.................................................................513
E. Personal Jurisdiction Under A "Conspiracy Jurisdiction" Theory.................513
F. Conclusion.....................................................................518
III. Motion to Dismiss for Failure to State a Claim.....................................518
A. Applicable Legal Standards.....................................................518
1. Rule 8(a) Claims (Non-Fraud Based Claims)..................................518
2. Rule 9(b) Claims (Fraud Based Claims)......................................523
B. Civil Conspiracy...............................................................525
1. Elements of the Claim......................................................525
2. Allegations of an Agreement or Understanding to Effect a Wrong.............526
a. Allegations of the Second Amended Petition.............................526
b. Analysis...............................................................527
Page 473
3. Allegations of Injury or Damage............................................528
4. Conclusion.................................................................528
C. Ongoing Criminal Conduct.......................................................529
1. Overview of the Statute....................................................529
2. Purported Pleading Deficiencies............................................530
3. "Specified Unlawful Activity" Allegations..................................530
a. Theft by Deception Under Iowa Law......................................530
i. Legal Standards...................................................530
ii. Arguments of the Parties..........................................531
iii. Allegations of the Second Amended Petition........................531
iv. Analysis..........................................................532
v. Conclusion........................................................534
b. Insurance Fraud Under Iowa and New York Law............................534
i. Legal Standards...................................................534
ii. Arguments of the Parties..........................................535
c. Allegations of the Second Amended Petition.............................535
d. Analysis...............................................................536
e. Conclusion.............................................................537
4. Scheme to Defraud..........................................................537
a. Legal Standards........................................................537
b. Allegations of the Second Amended Petition.............................538
c. Arguments of the Parties...............................................538
d. Analysis...............................................................538
e. Conclusion.............................................................539
5. Money Laundering...........................................................539
a. Legal...To continue reading
Request your trial
50 practice notes
-
Fraserside IP L.L.C. v. Netvertising Ltd., No. C11–3034–MWB.
...exercising personal jurisdiction over [the] nonresident Defendant 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. ( Bell Paper I ), 22 F.3d 816, 818 (8th Cir.1994) ( “[W]hen a state con......
-
Gibbs v. Primelending, No. 10–1250.
...have rejected the conspiracy theory of jurisdiction, concluding that it is inconsistent with due process, see, e.g., Brown v. Kerkhoff, 504 F.Supp.2d 464 (S.D.Iowa 2007); Paolino v. Argyll Equities, L.L.C., 401 F.Supp.2d 712 (W.D.Tex.2005); Silver Valley Partners, LLC v. De Motte, 400 F.Sup......
-
Fraserside IP L.L.C. v. Letyagin, No. C11–3041–MWB.
...exercising personal jurisdiction over [the] nonresident Defendant is consistent with principles of due process.” Brown v. Kerkhoff, 504 F.Supp.2d 464, 499–500 (S.D.Iowa 2007); see [885 F.Supp.2d 914]Bell Paper Box, Inc. v. U.S. Kids, Inc. (Bell Paper I), 22 F.3d 816, 818 (8th Cir.1994) (“[W......
-
Fraserside IP L.L.C. v. Gamma Entm't., Inc., No. C11-3056-MWB
...exercising personal jurisdiction over [the] nonresident Defendant 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. (Bell Paper I), 22 F.3d 816, 818 (8th Cir. 1994) ("[W]hen a state co......
Request a trial to view additional results
52 cases
-
Fraserside IP L.L.C. v. Netvertising Ltd., C11–3034–MWB.
...exercising personal jurisdiction over [the] nonresident Defendant 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. ( Bell Paper I ), 22 F.3d 816, 818 (8th Cir.1994) ( “[W]hen a state con......
-
Fraserside IP L.L.C. v. Letyagin, C11–3041–MWB.
...exercising personal jurisdiction over [the] nonresident Defendant is consistent with principles of due process.” Brown v. Kerkhoff, 504 F.Supp.2d 464, 499–500 (S.D.Iowa 2007); see [885 F.Supp.2d 914]Bell Paper Box, Inc. v. U.S. Kids, Inc. (Bell Paper I), 22 F.3d 816, 818 (8th Cir.1994) (“[W......
-
Gibbs v. Primelending, 10–1250.
...have rejected the conspiracy theory of jurisdiction, concluding that it is inconsistent with due process, see, e.g., Brown v. Kerkhoff, 504 F.Supp.2d 464 (S.D.Iowa 2007); Paolino v. Argyll Equities, L.L.C., 401 F.Supp.2d 712 (W.D.Tex.2005); Silver Valley Partners, LLC v. De Motte, 400 F.Sup......
-
High Plains Constr., Inc. v. Gay, 4:11–cv–00245–JEG.
...does not “eliminate another state's ability to exercise personal jurisdiction over a party to [ ] such a contract.” Brown v. Kerkhoff, 504 F.Supp.2d 464, 502 n. 28 (S.D.Iowa 2007). Instead, a party's means of enforcing a forum selection clause has been addressed by courts as a concern of ve......
Request a trial to view additional results
2 books & journal articles
-
Table of Cases
...Shops, Inc., 155 F.3d 331 (4th Cir. 1998), 55, 56, 180 Brown Shoe Co Inc v United States 370 US 294 (1962), 317 Brown v. Kerkhoff, 504 F. Supp. 2d 464 (S.D. Iowa 2007), 25 Brown v. Pro Football Inc., 146 F.R.D. 1 (D.D.C. 1992), 2 Brown v. Ticor Title Ins. Co., 982 F.2d 386 (9th Cir. 1992), ......
-
Filing a Class Action
...of a conspiracy may be attributed to the other members of the conspiracy’”), while others are more skeptical, see Brown v. Kerkhoff, 504 F. Supp. 2d 464, 518 (S.D. Iowa 2007) (stating “conspiracy theory” gives “short shrift to the constitutional mandate that there be some connection between......