Opinion ID: 2634764
Heading Depth: 1
Heading Rank: 3

Heading: Proper Procedure for Addressing a 12(b)(2) Motion

Text: We begin by noting that C.R.C.P. 12(b)(2) is virtually identical to its federal counterpart. See F.R.C.P. 12(b)(2). As such, we may turn to federal precedent for guidance in clarifying our procedure for addressing a 12(b)(2) motion to dismiss. Bd. of County Comm'rs v. Dist. Ct., 172 Colo. 311, 313, 472 P.2d 128, 129 (1970)(noting the similarities between C.R.C.P. 12(b) and F.R.C.P. 12(b)); accord Benton v. Adams, 56 P.3d 81, 86 (Colo.2002) (comparing C.R.C.P. 15(a) to F.R.C.P. 15(a)); Leidy's v. H2O Eng'g, Inc., 811 P.2d 38 (Colo.1991)(using federal case law in analyzing C.R.C.P. 52). In its discretion, a court may address a 12(b)(2) motion prior to trial based solely on the documentary evidence or by holding a hearing. See FDIC v. Oaklawn Apartments, 959 F.2d 170, 174 (10th Cir.1992); Ten Mile Indus. Park v. W. Plains Serv. Corp., 810 F.2d 1518, 1524 (10th Cir.1987). These options are not mutually exclusive. Data Disc, Inc. v. Sys. Tech. Assocs. Inc., 557 F.2d 1280, 1285 (9th Cir.1977); see Foster-Miller, Inc. v. Babcock & Wilcox Canada, 46 F.3d 138, 145 (1st Cir.1995). However, the plaintiff's burden of proof on the question of personal jurisdiction depends on the method the court employs to decide the 12(b)(2) motion. Oaklawn, 959 F.2d at 174; see Boit v. Gar-Tec Prods. Inc., 967 F.2d 671, 676 (1st Cir.1992). Where the court decides the motion only on the documentary evidence, the plaintiff need only demonstrate a prima facie showing of personal jurisdiction to defeat the motion. [3] Benton v. Cameco Corp., 375 F.3d 1070, 1074 (10th Cir.2004); Oaklawn, 959 F.2d at 174. A prima facie showing exists where the plaintiff raises a reasonable inference that the court has jurisdiction over the defendant. See Keefe v. Kirschenbaum & Kirschenbaum, P.C., 40 P.3d 1267, 1272 (Colo.2002). Documentary evidence consists of the allegations in the complaint, as well as affidavits and any other evidence submitted by the parties. OMI Holdings, Inc. v. Royal Ins. Co. of Canada, 149 F.3d 1086, 1091 (10th Cir.1998); Ten Mile, 810 F.2d at 1524. Similar to the court's role in addressing a motion for summary judgment, a court addressing a 12(b)(2) motion on documentary evidence alone acts as a data collector and not a factfinder. Foster-Miller, 46 F.3d at 145; see Leidy's, 811 P.2d at 39. Accordingly, the allegations in the complaint must be accepted as true to the extent they are not contradicted by the defendant's competent evidence, and where the parties' competent evidence presents conflicting facts, these discrepancies must be resolved in the plaintiff's favor. Foster-Miller, 46 F.3d at 145; Behagen v. Amateur Basketball Ass'n, 744 F.2d 731, 733 (10th Cir.1984); Leidy's, 811 P.2d at 40. The purpose of the light prima facie burden of proof at this early stage of litigation is simply to screen out cases in which personal jurisdiction is obviously lacking, and those in which the jurisdictional challenge is patently bogus. Foster-Miller, 46 F.3d at 145. Where a trial court elects to resolve a 12(b)(2) motion by holding an evidentiary hearing, the plaintiff's burden increases. At that juncture, the plaintiff must establish jurisdiction by a preponderance of the evidence. Id.; Oaklawn, 959 F.2d at 174. When a court holds a hearing, it is the factfinder and is in a position to weigh and resolve any factual disputes pertaining to jurisdiction. Foster-Miller, 46 F.3d at 146; see Ten Mile, 810 F.2d at 1524. To this end, the court has the power to control the scope of the hearing and any discovery that may be necessary to allow it to decide the question of personal jurisdiction fully. Foster-Miller, 46 F.3d at 146; see Wenz v. Nat'l Westminster Bank, PLC, 91 P.3d 467, 469 (Colo.App.2004)(holding regulation of discovery on jurisdictional issues is within the trial court's discretion). In deciding whether a hearing on the issue of personal jurisdiction is appropriate, the court must determine if the circumstances of a particular case indicate it is unfair to force an out-of-state defendant to incur the expense and burden of a trial on the merits in the local forum without first requiring more of the plaintiff than a prima facie showing of facts essential to in personam jurisdiction. A court may so determine, for example, when the proffered evidence is conflicting and the record is rife with contradictions, or when a plaintiff's affidavits are patently incredible. Foster-Miller, 46 F.3d at 145-46 (quoting Boit, 967 F.2d at 676). To this end, a court may determine that an evidentiary hearing is warranted even if it has already determined that a plaintiff has made a prima facie showing of personal jurisdiction. Id. at 146; see Data Disc, 557 F.2d at 1285. The court should be wary of finally deciding the jurisdictional question at an evidentiary hearing where the jurisdictional facts are inextricably intertwined with the merits of the case, because doing so could endanger the plaintiff's substantive right to a jury trial. Foster-Miller, 46 F.3d at 146; see C.R.C.P. 16(d); Schramm v. Oakes, 352 F.2d 143, 149 (10th Cir.1965). Further, the parties must be aware that if the trial court does address the jurisdictional question at a hearing, any findings it makes could later have a preclusive effect against a party. Foster-Miller, 46 F.3d at 146. The procedure outlined by the federal courts for addressing 12(b)(2) motions furthers principles of flexibility, judicial economy, and the preservation of substantial rights. Anderson v. Am. Soc. of Plastic and Reconstructive Surgeons, 807 P.2d 825, 827 (Utah 1990)(noting that the federal approach to addressing 12(b)(2) motions is motivated by a concern for these three factors). We conclude that the procedure also appropriately balances the interests of the litigants, and clarifies the trial court's role. Hence, in summary, because the trial court here decided to address the C.R.C.P. 12(b)(2) jurisdictional challenge on the documentary evidence alone, the trial court's role was to determine whether the plaintiff successfully asserted a prima facie case of personal jurisdiction over each defendant. In making that assessment, the trial court was required to resolve any disputed issues of material jurisdictional fact in favor of the plaintiff. If the trial court determined that Archangel had made a prima facie showing of personal jurisdiction, the trial court could still, in its discretion, either hold an evidentiary hearing to resolve the issue fully prior to trial, or it could simply proceed to trial where, if the defendant again challenged the court's personal jurisdiction, Archangel would have to prove personal jurisdiction by a preponderance of the evidence.