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Defense Training Systems and Katmai Government Services, LLC v. International Charter Inc.

United States District Court, Ninth Circuit

December 13, 2013

Defense Training Systems and Katmai Government Services, LLC, Plaintiffs,
v.
International Charter Inc. of Wyoming and Brian J. Boquist, Defendants.

ORDER AND OPINION

[Re: Motion at docket 12]

JOHN W. SEDWICK, District Judge.

I. MOTION PRESENTED

At docket 12, defendant Brian J. Boquist ("Boquist") moves for dismissal of the claims against him filed by plaintiffs Defense Training Systems ("DTS") and Katmai Government Services, LLC ("KGS") (collectively "Plaintiffs") for want of personal jurisdiction. Boquist's supporting memorandum is at docket 13, and his supporting declaration is at docket 14. Plaintiffs' response is at docket 21 with an errata at docket 23. Attached as an exhibit to Plaintiffs' response is the declaration of David Stephens at docket 21-1. Boquist's reply is at docket 33, and his additional declaration is at docket 32. No party has requested oral argument, and it would not assist the court.

II. BACKGROUND

Plaintiffs' complaint alleges that DTS is a division of ILSC Holdings, L.C. ("ILSC"), a Florida limited liability company and that the majority owner of ILSC is KGS, which is an Alaska limited liability company. According to the complaint, DTS is in the business of providing "role player" and training services to the United States military. The complaint further alleges that ILSC has many office locations, including one in Anchorage, Alaska, while KGS maintains its principal office in Anchorage. It is undisputed that Boquist resides in Oregon and that he is the Executive Vice-President of his co-defendant International Charter Inc. of Wyoming ("ICI"), which is a Wyoming corporation whose offices are in Cheyenne, Wyoming.

Plaintiffs' complaint, in the lamentable "kitchen sink" fashion so popular in current pleading practices, sets out eight distinct claims for relief, but at the heart of each is the proposition that defendants defamed plaintiffs. Six of the eight claims sound in tort while two sound in contract.[1] The complaint seeks to recover compensatory and punitive damages. The case was originally filed in state court, but timely removed to this court which has jurisdiction pursuant to the diversity jurisdiction statute, 28 U.S.C. ยง 1332.22

This lawsuit relates to a contract between DTS and the United States Marine Corps ("USMC") to provide services at Camp Lejeune, North Carolina, and elsewhere, identified as Prime Contract Number M67854-08-D-8028 ("the Contract") and a related subcontract between DTS and ICI as the subcontractor, Subcontract DTS-08-D-001 entered May 1, 2008 ("the Subcontract"), to provide services at Camp Lejeune.

Plaintiffs' complaint alleges that Boquist is an Oregon resident and that he is an officer of ICI, [2] a Wyoming corporation. The complaint alleges that there is personal jurisdiction in Alaska,

because of the substantial contacts between Defendants and the State of Alaska, including but not limited to the formation of the subcontract between DTS and ICI in Alaska, the personal presence of Boquist in Alaska in connection with the subcontract, the performance of the portion of the subcontract in Alaska, the payment of amounts due under the Subcontract maintained in Alaska, and the performing of acts outside of Alaska for the purpose and with the intent of causing harm within Alaska.[3]

The following alleged facts are taken from Boquist's two declarations:

1. Boquist resides in Dallas, Oregon, which has been his primary residence since January 1, 1997.
2. Boquist has never resided in Alaska.
3. Neither Boquist nor any entity controlled by him, in which he has an ownership interest, or which employees him:
a. has an office, registered agent, officer, director, employee or agent in Alaska;
b. holds any license, charter, or permit issued by any governmental authority in Alaska;
c. has paid or is required to pay taxes in Alaska;
d. maintains a bank account in Alaska;
e. has any type of office or other ...

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