Albany International Corp. v. Yamauchi Corp.

978 F. Supp. 2d 138, 2013 WL 5718538, 2013 U.S. Dist. LEXIS 151363
CourtDistrict Court, N.D. New York
DecidedOctober 22, 2013
DocketNo. 1:13-CV-00257
StatusPublished
Cited by1 cases

This text of 978 F. Supp. 2d 138 (Albany International Corp. v. Yamauchi Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Albany International Corp. v. Yamauchi Corp., 978 F. Supp. 2d 138, 2013 WL 5718538, 2013 U.S. Dist. LEXIS 151363 (N.D.N.Y. 2013).

Opinion

MEMORANDUM-DECISION and ORDER

DAVID N. HURD, District Judge.

1. INTRODUCTION

This action arises out of a dispute between Albany International Corporation (“Albany”) and Yamauchi Corporation (“Yamauchi”) over the validity of four U.S. patents that protect various design aspects of “shoe press belts,” which are used to remove excess water during the paper manufacturing process. Albany filed the instant action alleging that Yamauchi and its U.S. sales representative, AstenJohnson, Inc. (“AstenJohnson”), are manufacturing and selling products that infringe two of its patents (the “Albany Patents”).1 It also seeks a declaration that the two patents Yamauchi holds on similar technology are invalid and unenforceable (the “Yamauchi Patents”).2

Yamauchi and AstenJohnson (collectively “defendants”) have filed this joint motion to dismiss or transfer pursuant to Federal Rules of Civil Procedure 12(b)(2) and (3) (“Rule-”), 28 U.S.C. § 1404(a), and Local Rule 7.1. They argue that there [141]*141is no personal jurisdiction over either defendant, and that venue is improperly laid against AstenJohnson. Alternatively, defendants seek to transfer this case to the District of South Carolina. Plaintiff opposes, and in the alternative requests leave to conduct jurisdictional discovery. Oral argument was heard on Friday, October 11, 2012 in Utica, New York. Decision was reserved.

II. FACTUAL BACKGROUND

A. Parties

Albany is a Delaware corporation based in Rochester, New Hampshire. Compl. ¶ 1. It manufactures a number of products, including shoe press belts. Id. ¶ 14. Prior to 2011, Albany’s corporate headquarters were located just outside of Albany, New York. Moriarty Deck, ECF No. 19-1, ¶ 6. Although the majority of its operations have been relocated to the United Kingdom, Sweden, and China, Albany still operates two locations in New York that employ approximately 310 people. Id. ¶ 7.

Yamauchi is a Japanese corporation based in Osaka, Japan. Compl. ¶2. It manufactures a number of industrial products, including the allegedly infringing Yamabelt Super95 Interrupted Groove shoe press belt (“Yamabelt”). See id. ¶ 5. Although it has a U.S. sales office located in Schaumburg, Illinois, Yamauchi has no offices or facilities in New York and is not authorized to do business in the State. Nakagawa Deck, ECF No. 15-15, ¶4. It has never sold a Yamabelt in New York.3 Id. ¶¶ 8-9; see Compl. ¶ 15. Yamauchi maintains a globally accessible website that provides information about its various products, but a direct purchase cannot be made from the website. Compl. ¶ 16. Rather, sales inquiries in the “Americas” are directed to Luc Foisy, an AstenJohnson employee located at a facility in Kanata, Ontario, Canada. See id. ¶ 17; Pl.’s Mem. Opp’n, ECF No. 19, 5 (“Ph’s Mem.”).

AstenJohnson is a Delaware corporation based in Charleston, South Carolina. Compl. ¶ 3. It manufactures and sells products for the papermaking industry, but does not make or use shoe press belts. See id. ¶ 7; Pb’s Mem. 6. It is authorized to do business in New York. Compl. ¶ 7. However, it does not maintain an office or bank account, own property, or otherwise have a corporate presence in the state, and “substantially less” than one percent of the total sales of its various products take place in the Northern District of New York. Kemp Deck, ECF No. 15-16, ¶¶ 5-6. Since May 2009, AstenJohnson has promoted the sale of Yamauchi’s shoe press belts on behalf of Yamauchi’s U.S. subsidiary. Compl. ¶ 17. However, AstenJohnson does not have the authority to make sales — inquiries are referred to Yamauchi’s U.S. subsidiary in Illinois. See id.; Kemp Deck ¶ 4. AstenJohnson also has a .globally accessible website, but no products are offered for sale, and the website does not mention the Yamabelt or the company’s affiliation with Yamauchi. Id. ¶ 8.

B. Procedural history

In late December 2012, Albany and Yamauchi, acting through their respective counsel, began a heated exchange of letters over the validity of the U.S. patents that are now the subject of this action. Parke Deck, ECF No. 19-2, ¶¶ 3-5. On March 6, 2013, Yamauchi sued Albany in the Central District of California (the “California action”), alleging that Albany was [142]*142infringing on the Yamauchi Patents and seeking a declaration that the Albany Patents were invalid or unenforceable. Id. ¶ 6. The very next day, Albany sued Yamauchi in the Northern District of New York (the “New York action”) alleging the inverse. Id. ¶ 7.

On July 22, 2013, Albany filed a motion before the court in the California action to transfer the case to the Northern District of New York. Id. ¶ 7. Due to a “calendaring error,” Yamauchi failed to file a brief in opposition and the court presiding over the California action granted Abany’s motion to transfer as unopposed. Id.; Defs.’ Mem. Supp. Mot. Dismiss, ECF No. 15-1, 7 (“Defs.’ Mem.”). The next day, Yamauchi filed an emergency motion requesting that the California court vacate its transfer order and consider Abany’s transfer motion on the merits. Parke Deck ¶ 8. The California court denied Yamauchi’s emergency motion, finding that the Central District of California was an inappropriate venue because there were no witnesses or evidence from either party located there. Id. ¶ 9.

Immediately after the California action was transferred, Yamauchi filed a Notice of Voluntary Dismissal in that case. Id. ¶ 12. The very next day, defendants filed this joint motion to dismiss the New York action.

III. DISCUSSION

A. Rule 12(b)(2) — Legal Standard

In opposing a motion to dismiss pursuant to Rule 12(b)(2), the plaintiff bears the burden of establishing a proper basis for personal jurisdiction over the defendant. Nat’l Elec. Sys., Inc. v. City of Anderson, 601 F.Supp.2d 495, 497 (N.D.N.Y.2009) (citing Bank Brussels Lambert v. Fiddler Gonzalez & Rodriguez, 171 F.3d 779, 784 (2d Cir.1999)).

Absent discovery or an evidentiary hearing, the plaintiff need only “allege facts constituting a prima facie showing of personal jurisdiction.” Id. (citing PDK Labs, Inc. v. Friedlander, 103 F.3d 1105, 1106 (2d Cir.1997)). At this early stage, all pleadings and factual ambiguities are construed in favor of the plaintiff. Id. (citing Robinson v. Overseas Military Sales Corp., 21 F.3d 502, 507 (2d Cir.1994)). With these principles in mind, personal jurisdiction inquiries are “necessarily fact sensitive because each case is dependent upon its own particular circumstances.” PDK Labs, Inc., 103 F.3d at 1108 (quoting Landoil Res. Corp. v. Alexander & Alexander Servs., Inc., 918 F.2d 1039, 1043 (2d Cir.1991)).

B.

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978 F. Supp. 2d 138, 2013 WL 5718538, 2013 U.S. Dist. LEXIS 151363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/albany-international-corp-v-yamauchi-corp-nynd-2013.