1032-1034 Lex Ave. Ltd. v. Fox
1:24-cv-00765
D.N.M.Mar 11, 2025Background
- The case arises from a dispute over the indirect ownership and potential sale of a shopping center in Kansas City, Missouri, called the Shops at Boardwalk.
- Plaintiffs (1032-1034 Lex. Ave., Stephen and Barbro Kirschenbaum) allege breaches of contract and fraud by defendants (Alan C. Fox, ACF Property Management, Inc., and The Alan C. Fox Revocable Trust).
- Plaintiffs initiated suit in New Mexico state court after Fox exercised a Call Option to purchase their interest following their refusal to consent to a sale of the property.
- Defendants removed the case to federal court and moved to dismiss, arguing lack of personal jurisdiction and failure to state a claim.
- Plaintiffs asserted the court had specific personal jurisdiction due to business solicitations directed at New Mexico.
- The court addressed only the question of personal jurisdiction, finding it dispositive.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Specific personal jurisdiction | Defendants solicited business in NM and created ties with NM | Contacts not related to events at issue; 2011 visit unrelated | No jurisdiction—contacts not sufficiently related |
| Purposeful availment | In-person meetings in NM led to investment in disputed biz | 2011 meeting was personal, not business, and years before dispute | Not satisfied; prior unrelated contacts |
| Relation of contacts to claim | 2011/2015 NM meetings were foundation for later investment | Events in dispute (2017) not connected to earlier NM contacts | Contacts must relate to events at issue |
| Dismissal or further consideration | Sought to proceed on merits | Sought dismissal for lack of jurisdiction | Case dismissed without prejudice for lack of jurisdiction |
Key Cases Cited
- Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915 (2011) (defining general personal jurisdiction as requiring a defendant to be "essentially at home" in the forum)
- Daimler AG v. Bauman, 571 U.S. 117 (2014) (addressing limits of general jurisdiction over foreign defendants)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (1985) (establishing the purposeful availment requirement for specific jurisdiction)
- Walden v. Fiore, 571 U.S. 277 (2014) (specific jurisdiction requires defendant's suit-related conduct to create substantial connection with forum)
- Bristol-Myers Squibb Co. v. Superior Ct. of California, San Francisco Cnty., 582 U.S. 255 (2017) (requiring affiliation between forum and underlying controversy for specific jurisdiction)