Alert 24 Security, LLC v. Tyco International, Ltd.

823 F. Supp. 2d 589, 2011 U.S. Dist. LEXIS 120503, 2011 WL 4948981
CourtDistrict Court, S.D. Texas
DecidedOctober 18, 2011
DocketCivil Action No. 5:11-cv-21
StatusPublished
Cited by3 cases

This text of 823 F. Supp. 2d 589 (Alert 24 Security, LLC v. Tyco International, Ltd.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alert 24 Security, LLC v. Tyco International, Ltd., 823 F. Supp. 2d 589, 2011 U.S. Dist. LEXIS 120503, 2011 WL 4948981 (S.D. Tex. 2011).

Opinion

OPINION AND ORDER

MICAELA ALVAREZ, District Judge.

Pending before the Court is Defendants’ motion to dismiss for lack of personal jurisdiction, improper process and service of process, Plaintiffs response, and Defendants’ reply.1 After considering the motion, response, reply, record and controlling authorities, the Court GRANTS Defendants’ motion to dismiss for lack of personal jurisdiction. ADT Private Security Services de Mexico, S.A. de C.V. and Tyco International Limited are therefore dismissed from this case. Furthermore, the motions to dismiss based on improper process and improper service of process are DENIED as moot.

I. BACKGROUND

Plaintiff herein, Alert 24 Security, LLC (“Alert 24”), is a Texas limited liability corporation, but a citizen of Arizona.2 Alert 24 alleges that prior to the inception of this lawsuit, Alert 24 was a defendant in a state court action brought by ADT Security Services, S.A. de C.V. (“ADT Mexico”), a non-party to this lawsuit.3 Alert 24 counter-claimed in the state court action and, on or about October 14, 2009, Alert 24 was awarded damages by a jury.4 The counter-claim was based on ADT Mexico’s use of Alert 24’s Electronic Event Detection Devices (“EEDDs”) which are located exclusively in Mexico.5 According to Alert 24, the jury damages were calculated only through October 1, 2009.6

Alert 24 alleges that on or about January 25, 2010, it sent a demand letter to Defendants, Tyco International, Ltd. (“Tyco Int’l”) and ADT Private Security Services de Mexico, S.A. de C.V. (“ADT Private Security”), asking them to either cease the use of the EEDDs located in Mexico or to pay for the use of the EEDDs.7 Alert 24 argues that Defendants’ failure to respond and continued use of the EEDDs resulted in a formation of a contract-a contract which Defendants have now breached.8

On January 27, 2011, Alert 24 filed in this case an amended petition and application for temporary injunction.9 Alert 24 based its amended petition on four causes of action: (1) breach of contract, (2) quantum meruit, (3) unjust enrichment and (4) trespass to personality.10

[592]*592On March 4, 2011, Defendants removed this action on the basis of diversity jurisdiction.11 On March 11, 2011, Defendants filed a motion to dismiss for lack of personal jurisdiction, improper process and service of process.12

II. PRELIMINARY MATTER

Alert 24 would have this Court exercise personal jurisdiction over Defendants in this case, in part, based on the actions of various business entities that are not parties to this action. Alert 24 should have clearly identified the entities and then attempted to identify jurisdictionally relevant links between those entities and Defendants. By relying on vague designations such as “Tyco” and “ADT” when more precise designations were readily available, Alert 24 has done little more than muddy the waters. This approach is particularly perplexing since much of the evidence cited by Alert 24 provides more, specific corporate designations— designations that are crucial in this context. When a party files a pleading laden with ambiguities, the Court must interpret those ambiguities, and the filing party runs the risk that its imprecise arguments will be misinterpreted.

III. ANALYSIS

If the Court finds that it lacks personal jurisdiction over Defendants, the issues of •improper process and service of process will be rendered moot. The Court will begin with the personal jurisdiction analysis.

The burden of showing that the Court may exercise personal jurisdiction over Defendants falls on Alert 24.13 In their filings, the parties have focused exclusively on “minimum contacts.” Accordingly, the Court will limit its personal jurisdiction analysis to a minimum contacts theory of personal jurisdiction. In Mullins v. TestAmerica, Inc.,14 the Fifth Circuit recited the relevant test for determining whether a federal court in Texas sitting in diversity may exercise personal jurisdiction over non-resident defendants such as Tyco Int’l and ADT Private Security.

A federal court sitting in diversity may exercise personal jurisdiction over a nonresident defendant (1) as allowed under the state’s long-arm statute; and (2) to the extent permitted by the Due Process Clause of the Fourteenth Amendment. “Because the Texas long-arm statute extends to the limits of federal due process, the two-step inquiry collapses into one federal due process analysis.” To satisfy the requirements of due process, the plaintiff must demonstrate: “(1) that the nonresident purposely availed himself of the benefits and protections of the forum state by establishing ‘minimum contacts’ with the state; and (2) that the exercise of jurisdiction does not offend ‘traditional notions of fair play and substantial justice.’ ”15

Therefore, the Court must evaluate all of Defendants’ alleged links to Texas and will then determine whether these links rise to the level of “minimum contacts” necessary to exercise jurisdiction.

“Minimum contacts” can be established either through contacts sufficient to assert specific jurisdiction, or contacts sufficient to assert general jurisdiction. [593]*593Specific jurisdiction over a nonresident corporation is appropriate when that corporation has purposefully directed its activities at the forum state and the “litigation results from alleged injuries that arise out of or relate to those activities.” General jurisdiction, on the other hand, will attach where the nonresident defendant’s contacts with the forum state, although not related to the plaintiffs cause of action, are “continuous and systematic.”16

Generally, “at this stage the plaintiff is required to present only a prima facie case for personal jurisdiction.”17 After sifting through the record, it appears that Alert 24 alleges numerous facts which it argues support an exercise of personal jurisdiction over Defendants, or at the very least, entitle Alert 24 to jurisdictional discovery. The facts alleged by Alert 24 are:

1) That a contract arose between Alert 24 and ADT Private Security after Alert 24 sent a demand letter to ADT Private Security.18
2) Defendants engaged in a conspiracy to commit torts by directing the filing of the Webb County lawsuit and by harming a Texas resident with acts committed in other jurisdictions.19
3) ADT Private Security’s “predecessor in interest” sued Alert 24 in Webb County, Texas.20
4) A relationship exists between “Tyco” and “ADT.”21
5) Defendants and ADT Mexico comprise a single business enterprise.22

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Wise v. Wal-Mart Stores East, LP
N.D. Mississippi, 2019
Bouchillon v. SAME Deutz-Fahr, Group
268 F. Supp. 3d 890 (N.D. Mississippi, 2017)
Bar Group, LLC v. Business Intelligence Advisors, Inc.
215 F. Supp. 3d 524 (S.D. Texas, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
823 F. Supp. 2d 589, 2011 U.S. Dist. LEXIS 120503, 2011 WL 4948981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alert-24-security-llc-v-tyco-international-ltd-txsd-2011.