Air Vent, Inc. v. Powermax Electric Co., Ltd.

District Court, N.D. Texas·Decided August 3, 2023·No. 3:22-cv-00516·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

AIR VENT, INC. and GIBRALTAR § INDUSTRIES, INC., § § Plaintiffs, § § v. § CIVIL ACTION NO. 3:22-CV-0516-B § POWERMAX ELECTRIC CO., LTD., § § Defendant. §

MEMORANDUM OPINION AND ORDER Before the Court is Plaintiffs Air Vent, Inc. and Gibraltar Industries, Inc.’s Motion for Reconsideration (Doc. 15). Because Plaintiffs have demonstrated an error in the Court’s Memorandum Opinion & Order (the “Order”) necessitating reconsideration, the Motion is GRANTED. I. BACKGROUND The factual background of this case is presented in detail in the Court’s Order dismissing Plaintiffs’ Complaint for lack of personal jurisdiction. See Doc. 14, Mem. Op. & Order, 1–2. In sum, Plaintiffs seek indemnification from Defendant Powermax Electric Co., LTD. (“Powermax”) regarding an insurance suit (the “Chaja Lawsuit”). Id. The Chaja Lawsuit involved a residential fire in California caused by a fan manufactured and sold by Plaintiffs. Id. at 2. However, Plaintiffs allege that the fan malfunctioned because of a faulty motor, which Powermax manufactured and sold to Plaintiffs. Id. In its Order, the Court concluded that while Powermax had created minimum contacts with Texas by selling and shipping its motors to Texas residents, Plaintiffs’ suit did not “sufficiently relate[]” to Powermax’s Texas contacts to warrant specific jurisdiction in Texas. See id. at 9–11. Plaintiffs now urge the Court to reconsider its Order. II.

LEGAL STANDARD The Federal Rules of Civil Procedure do not specifically provide for a motion for reconsideration, but such a motion may be considered under either Rule 59(e) motion to alter or amend judgment or a Rule 60(b) motion for relief from a judgment or order. Shepherd v. Int’l Paper Co., 372 F.3d 326, 328 n.1 (5th Cir. 2004). Whether a motion falls under Rule 59(e) or 60(b) depends on when it was filed. See id. In this case, Plaintiffs filed their motion within twenty-eight days of the Court granting Powermax’s Motion to Dismiss, so the motion was timely under Rule

59(e). See Fed. R. Civ. P. 59(e) (requiring such motion to be filed “no later than 28 days after the entry of the judgment”). “A Rule 59(e) motion calls into question the correctness of a judgment.” Templet v. HydroChem, Inc., 367 F.3d 473, 478 (5th Cir. 2004) (internal quotation omitted). Reconsideration under Rule 59(e) does not serve as a “vehicle for rehashing evidence, legal theories, or arguments that could have been offered or raised before the entry of judgment.” Id. at 479. Rather, it serves

to correct a manifest error of law or fact, to account for newly discovered evidence, or to accommodate an intervening change in controlling law. Schiller v. Physicians Res. Grp., Inc., 342 F.3d 563, 567 (5th Cir. 2003). Therefore, it “is an extraordinary remedy that should be used sparingly.” Templet, 367 F.3d at 479. III. ANALYSIS Personal jurisdiction exists when “the state’s long-arm statute extends to the defendant and

exercise of such jurisdiction is consistent with due process.” Sangha v. Navig8 ShipManagement Priv. Ltd., 882 F.3d 96, 101 (5th Cir. 2018). But “[b]ecause the Texas long-arm statute extends to the limits of federal due process, the two-step inquiry collapses into one federal due process analysis.” Id. Due process has two elements. First, the nonresident defendant must have purposefully availed itself of the benefits and protections of the forum state through “minimum contacts” such that it should reasonably anticipate being haled into court there. Burger King Corp. v. Rudzewicz,

471 U.S. 462, 474–75 (1985). Second, the exercise of jurisdiction over the defendant must “not offend traditional notions of fair play and substantial justice.” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945) (internal quotations omitted). “There are two types of ‘minimum contacts’: those that give rise to specific personal jurisdiction and those that give rise to general personal jurisdiction.” Lewis v. Fresne, 252 F.3d 352, 358 (5th Cir. 2001). Specific jurisdiction, which is at issue here, “is confined to adjudication of

issues deriving from, or connected with, the very controversy that establishes jurisdiction.” Id. (quoting Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 919 (2011)). The Fifth Circuit applies a three-step analysis to determine whether specific personal jurisdiction over a defendant exists: (1) whether the defendant purposely directed its activities toward the forum state or purposely availed itself of the privileges of conducting activities there; (2) whether the plaintiff’s cause of action arises out of or results from the defendant’s forum-related contacts; and (3) whether the exercise of personal jurisdiction is fair and reasonable. Luv N’ Care, Ltd. v. Insta-Mix, Inc., 438 F.3d 465, 469 (5th Cir. 2006) (alteration omitted). At the outset, the Court notes, as it did in its previous Order, that “Plaintiffs present[ed] no argument as to how their claims relate[d] to Powermax’s Texas contacts” in its Response to

Powermax’s Motion to Dismiss. See Doc. 14, Mem. Op. & Order, 10. “As Plaintiffs ha[d] the burden of demonstrating this Court’s jurisdiction, this failure to brief essentially concede[d] the issue of relatedness.” See id. (citing Luv N’ Care, Ltd., 438 F.3d at 469). The Court need not allow Plaintiffs an opportunity to “rebrief” the issue of relatedness simply because they disagree with the Court’s decision. See Templet, 367 F.3d at 479 (“[A Rule 59(e)] motion is not the proper vehicle for rehashing evidence, legal theories, or arguments that could have been offered or raised before the entry of judgment.”).

Thus, the Court will not address arguments Plaintiffs could have previously raised regarding relevant legal precedents the Court should have utilized. Instead, the Court will address Plaintiffs’ arguments regarding the Court’s Order itself. Plaintiffs argue that “the contacts identified by the Court — the receipt of the Fan Motor by Plaintiffs at their principal place of business in Dallas, Texas . . . — gave rise to Plaintiffs’ contract and indemnity claims.” Doc. 15, Mot. Recons., 18. The Court agrees and thus GRANTS Plaintiffs’ Motion for Reconsideration (Doc. 15).

In its Order, the Court focused its analysis on the events which gave rise to Plaintiffs’ injury and found these events were not sufficiently related to Powermax’s Texas contacts. See Doc. 14, Mem. Op. & Order, 10–11. However, the correct focus should have been on Plaintiffs’ claims themselves and whether they arose out of or related to Powermax’s Texas contacts. See Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414 (1984) (stating that “[w]hen a controversy is related to or ‘arises out of’ a defendant’s contacts with the forum,” the court may exercise specific personal jurisdiction over a defendant) (emphasis added); Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., 141 S. Ct.

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Air Vent, Inc. v. Powermax Electric Co., Ltd., (N.D. Tex. 2023).

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