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Scott Usa Inc. v. Patregnani

United States District Court, D. Idaho

April 16, 2015

SCOTT USA INC., Plaintiff,
v.
ARMAND PATREGNANI, Defendant/Third-Party Plaintiff,
v.
BIKESTREET RETAIL, LLC d/b/a BIKESTREET USA, Third-Party Defendant.

MEMORANDUM DECISION AND ORDER

B. LYNN WINMILL, Chief District Judge.

Before the Court is Third-Party Defendant BikeStreet Retail d/b/a BikeStreet USA's Motion to Dismiss for Lack of Personal Jurisdiction (Dkt. 17). BikeStreet, seeks dismissal of this action for lack of personal jurisdiction in Idaho. For the reasons set forth below, the Court finds that BikeStreet is not subject to general jurisdiction because it does not have substantial, continuous, and systematic contacts with the State of Idaho, but is subject to specific jurisdiction of the Idaho courts for reasons described below.

BACKGROUND

BikeStreet is a Florida limited liability company with its headquarters in Florida. BikeStreet operates retail bicycle stores throughout Florida, North Carolina, and South Carolina. Netral Decl. ¶ 4. BikeStreet has never operated a store in Idaho nor sold its good to an Idaho purchaser. BikeStreet has never provided bicycle repairs services that required pick-up or delivery of repaired bicycle in Idaho.

In 2012, however, BikeStreet began purchasing bicycles and bicycle products from Scott USA, Inc., which has business operations in Idaho. As part of its arrangement with Scott USA to purchase bicycle products, BikeStreet requested and Scott USA extended a line of credit. Defendant Armand Patregnani personally guaranteed the line of credit, presumably at the request of BikeStreet.

In the credit application, which BikeStreet executed on August 8, 2012, BikeStreet consented to the jurisdiction in Idaho:

The undersigned [Patregnani] further acknowledges that all applications are subject to approval and acceptance by SCOTT at its principal office in Sun Valley, Idaho. The law of the state of Idaho, excluding its choice of law rules, governs this application and any resulting agreement between SCOTT and the Dealer [BikeStreet]. The Dealer [BikeStreet] and the undersigned individuals [Patregnani] consent and submit to the jurisdiction of the courts of the state of Idaho including its courts in Blaine County.

Patregnani Decl. ¶¶ 4, 7, Ex. 1; see also Compl. Ex. A.

The Scott USA Personal Guarantee, executed by Patregnani, in order for Scott to extend credit to Bike Street, includes a similar provision:

[The] law of the state of Idaho, excluding its choice of law rules, governs this Guarantee and any agreement between SCOTT and the Dealer [BikeStreet]. The Dealer [BikeStreet] and the undersigned individuals [Patregnani] consent and submit to the jurisdiction of the courts of the state of Idaho including its courts in Blaine County.

Patregnani Decl. ¶ 5, Ex. 2; see also Compl. ¶ 7.

Finally, the Terms and Conditions of Sale, also executed by BikeStreet on August 8, 2012, likewise contain a nearly identical provision:

Governing Law. Except as otherwise provided herein, this agreement and all rights and obligations of the parties hereunder, including matters of construction, validity and performance, shall be governed by the laws of the State of Idaho, but without giving effect to the principles of conflicts of law thereof. The Dealer [BikeStreet] consents and submits to ...

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