Allstate v. Grohe Canada, Inc.

2018 DNH 032
CourtDistrict Court, D. New Hampshire
DecidedFebruary 13, 2018
Docket17-cv-50-SM
StatusPublished
Cited by1 cases

This text of 2018 DNH 032 (Allstate v. Grohe Canada, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allstate v. Grohe Canada, Inc., 2018 DNH 032 (D.N.H. 2018).

Opinion

UNITED STATES DISTRICT COURT

DISTRICT OF NEW HAMPSHIRE

Allstate Property and Casualty Insurance Company, Plaintiff

v. Case No. 17-cv-50-SM Opinion No. 2018 DNH 032 Grohe Canada, Inc., Defendant

O R D E R

Allstate Property and Casualty Insurance Company, as

subrogee, brings this action against Grohe Canada, Inc.

Allstate claims that Grohe Canada designed, manufactured, and/or

sold a defective valve (known as the “Tempress II”) that was a

component in a shower valve assembly installed in the home of

its insured. That valve allegedly failed, the insured’s home

flooded, and, pursuant to its contractual obligations under an

insurance policy with the insured, Allstate paid nearly $300,000

to cover the damages. Allstate seeks to recover that money,

plus interest, and costs of this action. In its complaint,

Allstate advances three claims against Grohe Canada: negligence,

strict product liability, and breach of warranty. It asserts

that the court may properly exercise subject matter jurisdiction

pursuant to 28 U.S.C. § 1332 (diversity of the parties). Grohe Canada counters that this is an inappropriate forum

in which to address the merits of Allstate’s claims because this

court lacks personal jurisdiction over it. Accordingly, Grohe

Canada moves to dismiss all of Allstate’s claims. Allstate

objects. Should the court conclude that it lacks personal

jurisdiction over Grohe Canada, Allstate asks the court to

transfer this suit to the United States District Court for the

Central District of California. See generally 28 U.S.C. § 1631.

For the reasons discussed, Grohe Canada’s motion to dismiss

is granted, without prejudice. Allstate’s motion to transfer is

denied.

Standard of Review

The constitutional principles governing this court’s

exercise of personal jurisdiction over a non-consenting

defendant are well-established and need not be recounted in

detail. See generally D’Jamoos v. Atlas Aircraft Center, Inc.,

669 F. Supp. 2d 167 (D.N.H. 2009). It is sufficient to note the

following: First, Allstate invokes this court’s specific (rather

than general) personal jurisdiction over Grohe Canada.

Additionally, the parties have, by agreement, engaged in

jurisdictional discovery, but neither has requested an

evidentiary hearing. Accordingly, Allstate bears the burden of

2 making a prima facie showing, based upon specific facts set

forth in the record, that Grohe Canada has “certain minimum

contacts with [New Hampshire] such that the maintenance of the

suit does not offend traditional notions of fair play and

substantial justice,” Helicopteros Nacionales de Colombia, S.A.

v. Hall, 466 U.S. 408, 414 (1984) (citation and internal

punctuation omitted), and that Grohe Canada’s conduct bears such

a “substantial connection with the forum State” that it “should

reasonably anticipate being haled into court” here, Burger King

Corp. v. Rudzewicz, 471 U.S. 462, 473-75 (1985) (citing World-

Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297 (1980)).

To carry its burden, Allstate must satisfy a three-part

test articulated by the court of appeals.

First, the claim underlying the litigation must directly arise out of, or relate to, the defendant’s forum-state activities. Second, the defendant’s in- state contacts must represent a purposeful availment of the privilege of conducting activities in the forum state, thereby invoking the benefits and protections of that state’s laws and making the defendant’s involuntary presence before the state’s courts foreseeable. Third, the exercise of jurisdiction must, in light of the Gestalt factors, be reasonable.

United Elec., Radio & Mach. Workers of Am. v. 163 Pleasant St.

Corp., 960 F.2d 1080, 1089 (1st Cir. 1992). An affirmative

finding as to each of those three elements - relatedness,

3 purposeful availment, and reasonableness - is necessary to

support the court’s exercise of personal jurisdiction over a

defendant. See Phillips Exeter Academy v. Howard Phillips Fund,

Inc., 196 F.3d 284, 288 (1st Cir. 1999).

Parenthetically, the court notes that the New Hampshire

individual long-arm statute, N.H. Rev. Stat. Ann. (“RSA”) 510:4,

provides jurisdiction over foreign defendants “to the full

extent that the statutory language and due process will allow.”

Phelps v. Kingston, 130 N.H. 166, 171 (1987). Likewise, New

Hampshire’s corporate long-arm statute, RSA 293-A:15.10,

authorizes jurisdiction over foreign corporations and

unregistered professional associations to the full extent

permitted by federal law. See Sawtelle v. Farrell, 70 F.3d

1381, 1388 (1st Cir. 1995). Stated another way, New Hampshire’s

individual and corporate long-arm statutes are coextensive with

the outer limits of due process protection under the federal

constitution. Accordingly, the court need only determine

whether the exercise of personal jurisdiction over a foreign

defendant would comport with federal constitutional guarantees.

With those principles in mind, the court turns to Grohe

Canada’s motion to dismiss, as well as Allstate’s motion to

transfer this action pursuant to 28 U.S.C. § 1631.

4 Discussion

I. Grohe Canada’s Motion to Dismiss.

Based upon the undisputed evidence of record, the relevant

facts - at least as they relate to this court’s exercise of

personal jurisdiction over Grohe Canada - are as follows. Grohe

Canada is a foreign corporation with a principal place of

business in Mississauga, Ontario, Canada. It has never been

licensed, registered, or otherwise authorized to do business in

New Hampshire. It does not have a registered agent for service

of process in New Hampshire. It has never owned or leased any

property in New Hampshire, nor has it ever employed anyone in

New Hampshire or maintained an office in New Hampshire. Grohe

Canada has no bank accounts in New Hampshire, nor has it ever

maintained a New Hampshire phone number. Grohe Canada never

sold, distributed, or delivered any products directly to any

customer in New Hampshire. Grohe Canada did not design, test,

build, repair, service, or inspect the valve at issue in this

case in New Hampshire - if any of that occurred, it would have

happened in either Ontario, Canada, or at one of Grohe’s

suppliers in China.

Grohe Canada sold valve components to several Original

Equipment Manufacturers (OEMs) in the United States, none of

which are located in New Hampshire. Those OEMs then

5 incorporated Grohe Canada’s valves into their products, which

were subsequently sold to end users and retailers in the United

States.

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2018 DNH 032, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allstate-v-grohe-canada-inc-nhd-2018.