North American Truck & Trailer, Inc. v. Dennis Eagle, Inc. and Dennis Eagle,...
North American Truck & Trailer, Inc. v. Dennis Eagle, Inc. and Dennis Eagle,...
Trial Court Opinion
UNITED STATES DISTRICT COURT
DISTRICT OF SOUTH DAKOTA
SOUTHERN DIVISION
NORTH AMERICAN TRUCK & TRAILER, 4:25-CV-04187-KES
INC., a South Dakota corporation,
Plaintiff,
ORDER GRANTING RULE 12(B)(2)
vs. MOTION TO DISMISS AND DENYING
AS MOOT RULE 12(B)(6) MOTION TO
DENNIS EAGLE, INC., a Delaware DISMISS
corporation, and DENNIS EAGLE, LTD.,
a United Kingdom corporation,
Defendants.
North American Truck & Trailer, Inc. (NATT) filed a lawsuit against
Dennis Eagle, Inc. (DEI) and Dennis Eagle, Ltd. (DEL) on September 22, 2025,
alleging claims of (1) Breach of Contract and the Implied Covenant of Good
Faith and Fair Dealing, (2) Violation of the South Dakota Dealer Act, SDCL
§ 32-6B-1, et seq., (3) Violation of SDCL § 37-5, et seq., and (4) Fraudulent
Inducement. Docket 1. DEL now moves to dismiss NATT’s complaint under
Rule 12(b)(2) and Rule 12(b)(6). Docket 35. The court issues the following order.
BACKGROUND
When reviewing a motion to dismiss under Rule 12(b)(2) and Rule
12(b)(6), this court accepts the facts alleged in the complaint as true and
construes all reasonable inferences in the light most favorable to the plaintiff.
See Epps v. Stewart Info. Servs. Corp., 327 F.3d 642, 646-47 (8th Cir. 2003);
Schaaf v. Residential Funding Corp., 517 F.3d 544, 549 (8th Cir. 2008). The
facts as alleged in the complaint are:
DEI is a manufacturer of commercial truck chassis primarily used in the
refuse business. Docket 1 ¶ 10. DEI is a Delaware corporation with its
principal place of business in South Carolina. Id. ¶¶ 5, 10. Id. DEL—DEI’s
parent company—is incorporated and has its principal place of business in the
United Kingdom. Id. ¶¶ 6, 10.
In February of 2023, NATT and DEI entered into the Dennis Eagle Dealer
Sales and Service Agreement (the “Dealer Agreement”). Id. ¶ 2; see also Docket
1-1. Pursuant to the Dealer Agreement, DEI granted NATT exclusive rights to
market and sell DEI’s “vocational truck Pro View chassis range” and “parts and
accessories” in South Dakota, North Dakota, and Nebraska. Docket 1-1 at 1,
12-13. On July 14, 2023, NATT purchased three DEI Pro View chassis for
approximately $210,000 each. Docket 1 ¶ 13. In March of 2025, NATT upfitted
one of these chassis with a rear load refuse packer, increasing the chassis’
value to approximately $350,000. Id. During this same time, NATT “invested
heavily into equipment, training, and marketing related to the DEI product
line.” Id.
Prior to entering the Dealer Agreement, Joe McCalip, the Dealer
Development Manager at DEI, repeatedly represented DEI’s and DEL’s “strong
financial position” to NATT. Id. ¶ 12. McCalip claimed that “DEI was so
financially secure that NATT could travel to the U.K. to visit the parent
company and its facilities, and DEI would ostensibly ‘spare no expense’ for
hospitality and entertainment for NATT.” Id. NATT states that McCalip’s
representations “about DEI’s financial strength were a key factor in NATT’s
decision to enter into the Dealer Agreement.” Id.
On April 14, 2025, GGG Partners, LLC, on behalf of DEI, sent NATT a
letter (the Cessation Letter), stating that DEI, “effectively, intended to terminate
the Dealer Agreement due to its planned liquidation and exit from the U.S.
market.” Id. ¶ 14; Docket 1-2. DEI offered a cash rebate of $30,000 per chassis
as compensation. Docket 1 ¶ 14; Dockt 1-2 at 1. On April 25, 2025, GGG
Partners, LLC, sent a revised letter, adding a provision concerning DEI’s
obligation under the Dealer Agreement to supply certain parts for ten years
after termination. Docket 1 ¶ 15; Docket 1-3 at 1-2.
NATT rejected DEI’s offer on June 3, 2025. Docket 1 ¶ 16; Docket 1-4. In
NATT’s rejection letter, NATT explained that DEI effectively engaged in a “de
facto termination [of the Dealer Agreement] by announcing Dennis Eagle’s
dissolution and cessation of U.S. operations.” Docket 1-4 at 2. NATT demanded
that DEI comply with its obligations under the Dealer Agreement and South
Dakota law. Docket 1 ¶ 16; Docket 1-4 at 2-4. NATT additionally alleged that
due to DEI’s de facto termination of the Dealer Agreement, DEI has
“significantly disrupted NATT’s dealership business for the DEI chassis.”
Docket 1 ¶ 17. As NATT explains in its complaint, “[d]ue to the uncertainty
surrounding warranty, parts, and service support, customers in NATT’s limited
market are no longer willing to purchase or even seriously consider purchasing
DEI trucks. Simply put, the market for DEI’s products collapsed immediately
upon the delivery of the Cessation Letter.” Id.
On September 22, 2025, NATT filed suit against DEI and DEL, alleging
claims of breach of contract and the implied covenant of good faith, a violation
of the South Dakota Dealer Act, a violation of the South Dakota Buy-Back Law
against DEI, and fraudulent inducement. See Docket 1. Regarding DEI’s claim
of fraudulent inducement, NATT alleges that “upon information and belief,
[DEL] exercised significant control over DEI’s operations and strategic decisions
including DEI’s execution of the Dealer Agreement with NATT.” Id. ¶ 48. As
such, NATT alleges that DEL is “jointly liable for DEI’s fraudulent inducement
of the Dealer Agreement based on its complete control and oversight of DEI’s
actions.” Id. ¶ 50. NATT further alleges that DEL knew McCalip was in South
Dakota acting as an agent for both DEI and DEL “in making false statements
on their behalf to NATT to induce NATT into a relationship that [DEL] knew
would fail and be disastrous for NATT.” Id. ¶ 49.
LEGAL STANDARD
Federal Rule of Civil Procedure 12(b)(2) provides that a party may move
to dismiss claims for lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2). “To
defeat a motion to dismiss for lack of personal jurisdiction, the nonmoving
party need only make a prima facie showing of jurisdiction.” Epps, 327 F.3d at
647. To do so, the plaintiff must plead sufficient facts “to support a reasonable
inference that the defendant[] can be subjected to jurisdiction within the state.”
K-V Pharm. Co. v. J. Uriach & CIA, S.A., 648 F.3d 588, 591-92 (8th Cir. 2011)
(internal quotation marks omitted). The court may consider not only the
pleadings, but also affidavits, exhibits, and other evidence attached in support
or opposition to a Rule 12(b)(2) motion. See id. at 592. The party seeking to
establish personal jurisdiction bears the burden of proof, and “the burden does
not shift to the party challenging jurisdiction.” Epps, 327 F.3d at 647.
Federal Rule of Civil Procedure 12(b)(6) provides that the court may
dismiss a complaint for “failure to state a claim upon which relief can be
granted.” Fed. R. Civ. P. 12(b)(6). To avoid dismissal under Rule 12(b)(6), a
plaintiff must “state a claim to relief that is plausible on its face.” Bell Atlantic
Corp. v. Twombly, 550 U.S. 544, 570 (2007). A complaint is facially plausible
where its factual content “allows the court to draw the reasonable inference
that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556
U.S. 662, 678 (2009). The court’s assessment of whether the complaint states a
plausible claim for relief is a “context-specific task that requires the reviewing
court to draw on its judicial experience and common sense.” Id. at 679.
DISCUSSION
DEL moves to dismiss NATT’s complaint on two grounds. First, DEL
argues that dismissal is warranted under Rule 12(b)(2) because DEL has “no
contacts with South Dakota, and the contacts of its subsidiary may not
lawfully be imputed to it.” Docket 35 at 1. Second, DEL moves to dismiss
NATT’s complaint under Rule 12(b)(6) because the complaint “fails to state a
cognizable, plausible theory of recovery against DEL based upon its own
alleged conduct but instead improperly seeks to impute to DEL the conduct of
its separate subsidiary, [DEI].” Id. The court first addresses DEL’s motion
under Rule 12(b)(2) before turning to its motion under Rule 12(b)(6).
I. Rule 12(b)(2)
“A federal court in a diversity action may assume jurisdiction over
nonresident defendants only to the extent permitted by the long-arm statute of
the forum state and by the Due Process Clause.” Dever v. Hentzen Coatings,
Inc., 380 F.3d 1070, 1073 (8th Cir. 2004) (internal quotation marks omitted).
“The South Dakota Supreme Court has interpreted the long-arm statute to
confer jurisdiction ‘to the fullest extent permissible under the due process
clause of the Fourteenth Amendment.’ ” Austad Co. v. Pennie & Edmonds, 823
F.2d 223, 225 (8th Cir. 1987) (quoting Ventling v. Kraft, 161 N.W.2d 29, 30
(S.D. 1968)); see also Cup O’ Dirt, LLC v. Badlands Airtime, LLC, 2020 WL
475606, at *10 (D.S.D. Jan. 29, 2020). Thus, to determine whether personal
jurisdiction over DEL exists, the court only needs to examine whether the
exercise of jurisdiction comports with the limits imposed by federal due
process. See Estate of Moore v. Carroll, 159 F. Supp. 3d 1002, 1007 (D.S.D.
2016).
“Due process requires that a non-resident have minimum contacts with
the forum state such that the maintenance of the lawsuit does not offend
traditional notions of fair play and substantial justice.” Fastpath, Inc. v. Arbela
Tech. Corp., 760 F.3d 816, 820 (8th Cir. 2014); see also Int’l Shoe Co. v. Wash.,
326 U.S. 310, 316 (1945). There are two types of personal jurisdiction. The first
type, general jurisdiction, covers “any and all claims” where a defendant is
“essentially at home.” Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., 592 U.S.
351, 358 (2021). For a corporation, this is usually its place of incorporation
and principal place of business. See id. at 359. The second type, specific
jurisdiction, covers a narrower class of claims and exists where a defendant
takes “some act by which [it] purposefully avails itself of the privilege of
conducting activities within the forum State.” Id. (internal quotation marks
omitted). Such “contacts must be the defendant’s own choice and not ‘random,
isolated, or fortuitous.’ ” Id. (quoting Keeton v. Hustler Mag., Inc., 465 U.S. 770,
774 (1984)). Further, because the defendant is not “at home” in the forum
state, there must be showing that the plaintiff’s claims “arise out of or relate to
the defendant’s contacts with the forum.” Id. (cleaned up and citation omitted).
To determine whether a nonresident defendant’s contacts with the forum
state are sufficient, the Eighth Circuit considers “1) the nature and quality of
contacts with the forum state; 2) the quantity of the contacts; 3) the relation of
the cause of action to the contacts; 4) the interest of the forum state in
providing a forum for its residents; and 5) convenience of the parties.”
Fastpath, 760 F.3d at 821. The first three factors are of “primary” importance,
while the last two “carry less weight and are not dispositive.” See Kaliannan v.
Liang, 2 F.4th 727, 733 (8th Cir. 2021) (quoting Whaley v. Esebag, 946 F.3d
447, 452 (8th Cir. 2020)).
Here, the court finds that nature, quality, and quantity of DEL’s contacts
with South Dakota are insufficient to justify exercising personal jurisdiction
over it. DEL is incorporated in the United Kingdom and has its principal place
of business in the United Kingdom. Docket 1 ¶¶ 6-7. DEL is not registered to
do business in South Dakota, has no properties or employees in South Dakota,
and has not entered into any contracts or availed itself of the benefits of doing
business in South Dakota. See Docket 37-1. While South Dakota has an
interest in providing a forum for its residents, see Burger King Corp. v.
Rudzewicz, 471 U.S. 462, 473 (1985), the absence of any contacts with South
Dakota indicates that DEL is neither at home nor has purposefully availed
“itself of the privilege of conducting activities within” South Dakota. See Ford
Motor Co., 592 U.S. at 359. Thus, the court finds that NATT has not made a
prima facie case demonstrating that DEL alone has sufficient minimum
contacts to warrant exercising personal jurisdiction over it.
But rather than rely solely on DEL’s contacts with South Dakota to
justify its prima face case for personal jurisdiction, NATT argues that this court
has personal jurisdiction over DEL based on the actions of its alleged agent,
McCalip, and based on the acts of its subsidiary, DEI. Docket 43 at 1, 4-11
(“[V]iewed in the light most favorable to NATT, these facts evidence that DEL’s
contacts through its agent or subsidiary with South Dakota were not ‘random,
fortuitous, or attenuated,’ but rather were central to a scheme to purposefully
avail itself of the privileged of conducting activities in South Dakota.”); see also
Docket 1 ¶¶ 12, 44, 48-51. Thus, to determine whether sufficient minimum
contacts exist for this court to exercise personal jurisdiction over DEL, this
court needs to consider whether NATT has adequately alleged that a principal-
agent relationship existed between DEL and McCalip and/or whether DEI’s
corporate veil should be pierced.
A. Whether NATT has sufficiently alleged that a principal-agent
relationship existed between DEL and McCalip
Under South Dakota law, an agency relationship is defined as “the
representation of one called the principal by another called the agent in dealing
with third persons.” SDCL § 59-1-1; see also Bernie v. Catholic Diocese of Sioux
Falls, 821 N.W.2d 232, 240 (S.D. 2012) (quotation and citation omitted). An
agency relationship can be either actual or ostensible. See Am. Prairie Const.
Co. v. Hoich, 560 F.3d 780, 793 (8th Cir. 2009). “Actual authority is created by
manifestations from the principal to the agent . . . while ostensible authority is
created when the principal allows a third person to believe the agent has
authority to act on the principal’s behalf.” Id. “Actual agency requires proof of
certain factual elements: ‘The manifestation by the principal that the agent
shall act for him, the agent's acceptance of the undertaking, and the
understanding of the parties that the principal is to be in control of the
undertaking.’ ” Babinski Props. v. Union Ins. Co., 833 F. Supp. 2d 1145, 1151
(D.S.D. 2011) (quoting Kasselder v. Kapperman, 316 N.W.2d 628, 630 (S.D.
1982) (cleaned up)). “To establish ostensible agency, the evidence should
indicate that the principal, by its representations or actions, caused a third
party to believe that a person was its agent.” Id.
In its complaint, NATT alleges that DEL knew McCalip “was in [South
Dakota] acting as not only the agent for DEI but also as the agent for [DEL] in
making false statements on their behalf to NATT to induce NATT into a
relationship that [DEL] know would fail and be disastrous for NATT.” Docket 1
¶ 49. But NATT has failed to allege that McCalip had actual or ostensible
authority to act as DEL’s agent.
NATT has not alleged that there was some agreement between McCalip
and DEL nor that DEL’s words or actions would indicate that an actual agency
relationship existed between McCalip and DEL. See Kasselder, 316 N.W.2d at
630 (requiring an agreement between the principal and agent for actual
authority to exist). Instead, NATT clearly alleges that McCalip was DEI’s
employee and agent. See Docket 1 ¶ 12. Additionally, NATT does not allege that
DEL engaged in some conduct that would lead it to believe that McCalip had
ostensible authority to act on DEL’s behalf. Rather, NATT argues that
McCalip’s statements about DEL’s financial status indicated to NATT that
McCalip was DEL’s agent. See Docket 43 at 12-13; see also Docket 1 ¶ 49. But
“[o]stensible agency for which a principal may be held liable must be traceable
to the principal and cannot be established solely by the acts, declarations, or
conduct of an agent.” Am. Prairie Const. Co., 560 F.3d at 793-94 (internal
quotation marks omitted). As such, because NATT’s allegation that McCalip
was DEL’s agent is based on McCalip’s statements and conduct, rather than
DEL’s conduct, NATT has failed to sufficiently allege that McCalip had
ostensible authority to act as DEL’s agent. Thus, to the extent NATT seeks to
impute McCalip’s alleged fraudulent misrepresentations to DEL under an
agency theory,1 the court finds that NATT has failed to make a prima facie case
that personal jurisdiction exists over NATT based on McCalip’s statements.
B. Whether NATT has sufficiently alleged that DEI’s corporate
veil should be pierced
Courts generally do not presume that a parent corporation is liable for
the actions of its wholly owned subsidiary. United States v. Bestfoods, 524 U.S.
51, 61 (1998). But personal jurisdiction over a nonresident parent corporation
can exist “based on the activities of the nonresident corporation’s in-state
subsidiary, but only if the parent so controlled and dominated the affairs of the
subsidiary that the latter’s corporate existence was disregarded so as to cause
the residential corporation to act as the nonresidential corporate defendant’s
alter ego.” Epps, 327 F.3d at 648-49. Thus, “[i]f the resident subsidiary
corporation is the alter ego of the nonresident corporate defendant, the
subsidiary’s contacts are those of the parent corporation’s, and due process is
satisfied.” Id. at 649. The Eighth Circuit has stated that “piercing the corporate
veil, if only to establish jurisdiction over [a] parent corporation, is a drastic
approach authorized only in the most extreme situations.” Lakota Girl Scout
Council v. Havey Fund-Raising Mgmt., 519 F.2d 634, 637 (8th Cir. 1975).
1 Additionally, to the extent that NATT seeks to establish personal jurisdiction
over DEL on the basis that DEI is DEL’s agent, this would fail. “The Eighth
Circuit has stated that it is not free to adopt an agency-like finding of personal
jurisdiction when a parent/subsidiary relationship is alleged to exist ‘because
it is inconsistent with our precedent.’ ” Burke v. Ability Ins. Co., 926 F. Supp.
2d 1056, 1066 (D.S.D. 2013) (quoting Viasystems, Inc. v. EMB-Papst St. George
GmbH & Co., KG, 646 F.3d 589, 596 (8th Cir. 2011)). Because this “agency
theory” would be inconsistent with Eighth Circuit precedent, the court finds
that personal jurisdiction does not exist over DEL on the basis that DEI is
DEL’s agent. See Viasystems, 646 F.3d at 596.
“State law is viewed to determine whether and how to pierce the
corporate veil.” Epps, 327 F.3d at 649. South Dakota law provides that “[a]
parent corporation is liable for the acts of its subsidiary under the
instrumentality exception when (1) the parent controls the subsidiary to such a
degree as to render the latter the mere instrumentality of the former; and (2)
adherence to the rule of corporate separateness would produce injustices and
inequities.” Burke, 926 F. Supp. 2d at 1063 (internal quotation marks omitted).
The South Dakota Supreme Court provides several factors that courts
should consider in determining the level of control necessary to hold a parent
company liable. See Cup O’ Dirt, LLC, 2020 WL 475606, at *8; Glanzer v. St.
Joseph Indian Sch., 438 N.W.2d 204, 207 (S.D. 1989). These factors include:
(a) The parent corporation owns all or most of the capital stock of
the subsidiary.
(b) The parent and subsidiary corporations have common directors
or officers.
(c) The parent corporation finances the subsidiary.
(d) The parent corporation subscribes to all the capital stock of the
subsidiary or otherwise causes its incorporation.
(e) The subsidiary has grossly inadequate capital.
(f) The parent corporation pays the salaries and other expenses or
losses of the subsidiary.
(g) The subsidiary has substantially no business except with the
parent corporation or no assets except those conveyed to it by the
parent corporation.
(h) In the papers of the parent corporation or in the statements of
its officers, the subsidiary is described as a department or division
of the parent corporation, or its business or financial responsibility
is referred to as the parent corporation's own.
(i) The parent corporation uses the property of the subsidiary as its
own.
(j) The directors or executives of the subsidiary do not act
independently in the interest of the subsidiary but take their orders
from the parent corporation in the latter's interest.
(k) The formal legal requirements of the subsidiary are not observed.
Glazner, 438 N.W.2d at 207 (citations omitted). These factors are not
exhaustive and need not all be present to conclude that a subsidiary is an
instrumentality of a parent corporation. Id. But courts “should pierce the
corporate veil only upon the strongest evidence of these factors.” Cup O’ Dirt,
LLC, 2020 WL 475606, at *8 (internal quotation marks omitted).
Here, NATT argues that the corporate veil should be pierced because it
has alleged that “both it and DEI would be financially backed or financed by
DEL, . . . that DEL was grossly undercapitalized due to its declared intent to
liquidate and its insolvency,” and that DEI and DEL share at least four
common officers and directors. See Docket 43 at 9-10; Docket 44-1; Docket 44-
2; Docket 44-3. NATT argues it made such allegations in the complaint, see
Docket 43 at 10 (citing Docket 1 ¶¶ 12, 14), but the specific allegations NATT
cites in its complaint do not support its current contentions that it previously
alleged it would be financially backed by DEL or that DEI was grossly
undercapitalized, see Docket 1 ¶¶ 12, 14. Instead, NATT alleges that McCalip
made representations as to DEI’s financial stability and that in its Cessation
Letter, DEI stated that it intended to terminate the Dealer Agreement due to its
planned liquidation. See id. But “[s]imply identifying evidence of financial
problems is insufficient to show that [DEI] was undercapitalized.” Kan. Gas &
Elec. Co. v. Ross, 521 N.W.2d 107, 115 (S.D. 1994) (internal quotation marks
omitted). Additionally, because a brief filed in opposition to a motion to dismiss
cannot amend or supplement allegations made in a complaint, see Morgan
Distrib. Co. v. Unidynamic Corp., 868 F.2d 992, 995 (8th Cir. 1989); Hawse v.
Page, 7 F.4th 685, 691 (8th Cir. 2021), NATT cannot rely upon newly raised
arguments and allegations to save insufficient factual allegations made in its
complaint.2
Additionally, although a parent and subsidiary corporation sharing
common officers or directors is a factor under the instrumentality exception,
see Glazner, 438 N.W.2d at 207, “[a] parent corporation is not liable for the
debts of its subsidiary merely because the parent holds the controlling interest
or because the two are managed by the same officers,” Epps, 327 F.3d at 649;
see also Bestfoods, 524 U.S. at 69 (“[I]t is entirely appropriate for directors of a
parent corporation to serve as directors of its subsidiary, and that fact alone
may not serve to expose the parent corporation to liability for its subsidiary’s
acts.”). Further, NATT’s allegation that DEL had “significant control over DEI’s
operations and strategic decisions,” without more factual foundation, is
insufficient to demonstrate that DEI was merely DEL’s alter ego. See Dever,
380 F.3d at 1073 (“Mere conclusory statements devoid of a factual foundation
do not suffice.”). Thus, without factual allegations indicating that DEL
2 It appears that NATT was referring to a separate section of its complaint,
where it stated that McCalip’s representations “included explicit statements
that DEI was financially strong, well-capitalized, and fully backed by a solvent
parent company with long-term business prospects.” Docket 1 ¶ 44. But this
allegation only relates to actions taken by McCalip and DEI, not specific
conduct in which NATT alleges DEL engaged. See id. Even accepting as true
that NATT was told that DEL financially backed DEI and that DEI was “well-
capitalized”—these allegations still do not explain how DEL would have such
significant control over DEI as to render it a mere instrumentality of DEL.
controlled DEI to such a “degree as to render [DEI] the mere instrumentality” of
DEL, the court finds that NATT has failed to sufficiently allege that DEI’s
corporate veil should be pierced.3 See Burke, 926 F. Supp. 2d at 1063.
Based on the foregoing, the court finds that NATT has failed to establish
a prima facie case of personal jurisdiction over DEL based on its piercing the
corporate veil or alter ego theory. Thus, because NATT fails to plead sufficient
suit-related contacts with South Dakota to support general or specific personal
jurisdiction over DEL, the court grants DEL’s motion to dismiss under Rule
12(b)(2).
II. Rule 12(b)(6)
DEL argues that NATT’s claim for fraudulent inducement should be
dismissed under Rule 12(b)(6) because NATT “has failed to allege sufficient
facts supporting any cognizable theory of recovery.” Docket 36 at 11. NATT
argues that DEL is liable to it for fraudulent inducement because it has
3 NATT argues that the second prong for piercing the corporate veil is met
because “fraudulent misrepresentation claims (like that alleged against DEL in
Count IV) have been found sufficient to satisfy this prong.” Docket 43 at 10-11.
Because the court determined that NATT failed to adequately allege facts
supporting the first prong, it need not consider whether NATT raised sufficient
allegations under the second prong. See Brevet Int’l, Inc. v. Great Plains
Luggage Co., 604 N.W.2d 268, 274 (S.D. 2000) (noting that the court will only
consider the second prong if the factors under the first prong are satisfied “in
sufficient number and/or degree”). But even if the court were to consider
whether NATT established a prima facie case under the second prong, the court
is not convinced that NATT has raised sufficient allegations indicating that DEL
took some action that abused the corporate form. See Kan. Gas & Elec. Co.,
521 N.W.2d 107, 113 (S.D. 1994).
“sufficiently pled a viable claim for relief against DEL under principles of
agency and piercing the corporate veil.” Docket 43 at 11.
Because the court determined that NATT has failed to make a prima facie
case of personal jurisdiction over DEL, it need not reach the merits of DEL’s
Rule 12(b)(6) motion. See, e.g., Golden Arrow Rsch., LLC v. Ancestry.com DNA,
LLC, 806 F. Supp. 3d 903, 912 (E.D. Mo. 2025) (denying Rule 12(b)(6) motion
as moot because the court determined that plaintiff failed to establish a prima
facie case of personal jurisdiction over the defendant); Ecolab Inc. v. IBA, Inc.,
2023 WL 7091853, at *1 n.2 (D. Minn. Oct. 26, 2023) (reasoning that because
court was granting defendant’s Rule 12(b)(2) motion, “it would be inappropriate
to consider [defendant’s] alternative grounds for dismissal” under Rule
12(b)(6)); Patrick’s Rest., LLC v. Singh, 2019 WL 2869082, at *5 (D. Minn. July
3, 2019) (“If personal jurisdiction is lacking, it would be improper to consider
the alternative ground for dismissal; the absence of personal jurisdiction
means the absence of judicial power to reach the merits of a case.”). Thus, the
court denies DEL’s Rule 12(b)(6) motion as moot.
III. Leave to File an Amended Complaint and Request for Jurisdictional
Discovery
NATT requests that if this court grants any part of DEL’s motion to
dismiss, it be given an opportunity to amend its complaint and a chance to
engage in “jurisdictional discovery to obtain the necessary information related
to its alter ego theory of liability.” Docket 43 at 13-14. DEL argues that this
court should deny NATT’s request to conduct jurisdictional discovery because
NATT “has offered nothing but speculation that any of the Glazner alter
ego/veil piercing factors are satisfied.” Docket 45 at 9-10.
Federal Rule of Civil Procedure 15(a) provides that “a party may amend
its pleading . . . with the opposing party’s written consent or the court’s leave.”
Fed. R. Civ. P. 15(a). Under Rule 15(a), “[t]he court should freely give leave
when justice so requires,” Fed. R. Civ. P. 15(a), and “[a] decision whether to
allow a party to amend [a] complaint is left to the sound discretion of the
district court,” Popoalii v. Corr. Med. Servs., 512 F.3d 488, 497 (8th Cir. 2008).
Denying a motion to amend “is appropriate only in those limited circumstances
in which undue delay, bad faith on the part of the moving party, futility of the
amendment, or unfair prejudice to the non-moving party can be
demonstrated.” Hillescheim v. Myron’s Cards & Gifts, Inc., 897 F.3d 953, 955
(8th Cir. 2018) (citation omitted).
Under Local Rule 15.1, however, NATT should have filed a separate
motion to amend and attached the proposed amended complaint, see D.S.D.
CIV LR 15.1, rather than make such a request in its briefing, see Fed. R. Civ.
P. 7(b) (stating that requests for court action must be made by filing a motion).
As such, because NATT’s request for leave to file an amended complaint did not
comply with Local Rule 15.1, its request is denied.
The court also denies NATT’s request to conduct jurisdictional discovery.
When considering requests for jurisdictional discovery, “[c]ourts look to
decisions under Rule 56 for guidance in determining whether to allow discovery
on jurisdictional facts.” Johnson v. United States, 534 F.3d 958, 965 (8th Cir.
2008). To obtain discovery under Rule 56(f), “a party must file an affidavit
describing: (1) what facts are sought and how they are to be obtained; (2) how
these facts are reasonably expected to raise a genuine issue of material fact;
(3) what efforts the affiant has made to obtain them; and (4) why the affiant’s
efforts were unsuccessful.” Id.; see also Fed. R. Civ. P. 56(f).
Here, NATT requests such discovery “to obtain the necessary information
related to its alter ego theory of liability,” but it fails to specifically identify what
discovery it would be seeking to provide support for its alter ego or piercing
theory. See Docket 43 at 13-14; see also Jahner v. Kumo Tire U.S.A, Inc., 2020
WL 4932832, at *17 (D.S.D. Aug. 24, 2020) (granting plaintiff’s request for
jurisdictional discovery, which outlined specific discovery requests, because
certain facts were unknown). And as the Eighth Circuit has explained, “[w]hen
a plaintiff offers only speculation or conclusory assertions about contacts with
a forum state, a court is within its discretion in denying jurisdictional
discovery.” Viasystems, Inc., 646 F.3d at 598 (internal quotation marks
omitted). Beyond its identification of common officers and directors between
the two corporations, see Docket 44-1; Docket 44-2; Docket 44-3, NATT has
only offered speculation and conclusory allegations to justify asserting personal
jurisdiction over DEL, see Docket 1 ¶ 50. As such, the court denies NATT’s
request to conduct jurisdictional discovery.
CONCLUSION
Based on the foregoing, it is
ORDERED that DEL’s motion to dismiss under Rule 12(b)(2) (Docket 35)
is granted and DEL’s motion to dismiss under Rule 12(b)(6) (Docket 35) is
denied as moot. NATT’s claim of fraudulent inducement against DEL is
dismissed without prejudice.
Dated May 12, 2026.
BY THE COURT:
/s/ Karen E. Schreier
KAREN E. SCHREIER
UNITED STATES DISTRICT JUDGE
Case-law data current through December 31, 2025. Source: CourtListener bulk data.