Strobl v. Croft
1:24-cv-00140
E.D. Tenn.Apr 14, 2025Background
- Plaintiffs allege that defendants, including Kawamura (CEO of ROI), operated a fraudulent investment scheme via Rhino Onward International, LLC (ROI).
- Kawamura purportedly failed to correct false statements in investment calls and permitted co-defendants to divert investor funds for personal and unrelated business use.
- Plaintiffs claim that Kawamura’s conduct (and his alleged travel to Tennessee) connects him to the state for purposes of jurisdiction.
- The Court previously denied Kawamura’s motion to dismiss for lack of personal jurisdiction, holding that jurisdiction was proper based on a conspiracy theory.
- Kawamura moved to certify that decision for interlocutory appeal and to stay the case as to himself; plaintiffs opposed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether interlocutory appeal should be certified on conspiracy-based personal jurisdiction issue | The issue is not a pure legal question but a fact-intensive, case-specific inquiry; appeal is premature | Whether conspiracy-based jurisdiction over out-of-state defendants lacking minimum contacts is a controlling question warranting immediate appeal | Certification denied; issue is a mixed law/fact question not suited for interlocutory appeal |
| Whether an immediate appeal would materially advance litigation | Appeal would not save significant resources as discovery will proceed and Kawamura would be involved regardless | Immediate appeal would end claims against Kawamura and save time/expense | Certification denied; litigation would proceed similarly regardless of appeal |
Key Cases Cited
- Chenault v. Walker, 36 S.W.3d 45 (Tenn. 2001) (discussing conspiracy theory of personal jurisdiction)
- Eisen v. Carlisle & Jacquelin, 417 U.S. 156 (1974) (explaining policy against piecemeal appeals)
- In re City of Memphis, 293 F.3d 345 (6th Cir. 2002) (standards and discretion for certifying interlocutory appeals)
