Alvis v. Glaxosmithkline

344 F. Supp. 2d 686
CourtDistrict Court, W.D. Washington
DecidedJanuary 13, 2003
DocketNo. MDL NO. 1407
StatusPublished
Cited by1 cases

This text of 344 F. Supp. 2d 686 (Alvis v. Glaxosmithkline) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alvis v. Glaxosmithkline, 344 F. Supp. 2d 686 (W.D. Wash. 2003).

Opinion

ORDER DENYING DEFENDANT NOVARTIS AG’S MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION

ROTHSTEIN, District Judge.

I. BACKGROUND

Plaintiff, a resident of Tennessee, filed a complaint in federal district court in Oregon alleging injuries stemming from her consumption of PPA-containing products. She included in this action as defendants, among others, Novartis AG (“NAG”), Novartis Corporation, Novartis Consumer Health, Inc., and Novartis Pharmaceuticals Corporation (“NPC”). NAG is a foreign corporation, organized and existing under the laws of Switzerland. It resulted from the merger of two Swiss corporations, San-doz Ltd. (“Sandoz”) and Ciba-Geigy AG (“Ciba”). NPC is a U.S. corporation, organized under the laws of Delaware and with its principal place of business in New Jersey.

NAG moved to dismiss based on lack of personal jurisdiction. Plaintiff asserted the establishment of personal jurisdiction based on the existence of an agency relationship between NAG and NPC, and by attributing NPC’s Oregon contacts to NAG. Defendant disputed the existence of an agency relationship between NPC and NAG, maintaining that NAG is merely a holding company of which NPC is an indirect affiliate. Plaintiff counter-moved to postpone consideration of the motion to dismiss until after the taking of jurisdictional discovery, and NAG moved for a protective order to stay merits discovery pending the resolution of its jurisdictional challenge.

In May 2002, the court struck NAG’s motion to dismiss with leave to re-note pending the conclusion of jurisdictional discovery underway in an un-related case, DaCosta v. Novartis AG et al., Case No. CV 01-800-BR (D.Or.), in which a court faced the identical issue of personal jurisdiction over NAG. The court also granted NAG’s motion for a protective order.

In August 2002, the parties in the Da-Costa litigation entered into a joint stipulation of dismissal following the completion of jurisdictional discovery, but prior to a resolution of the personal jurisdiction question. Plaintiff filed the current motion seeking a ruling on NAG’s motion to dismiss. Having reviewed all relevant pleadings, along with the remainder of the record, and, being fully advised, the court finds and concludes as follows:

II. DISCUSSION

The burden of establishing personal jurisdiction rests on plaintiff. Overby v. Oregonian Publ’g, 882 F.Supp. 964, 966 [690]*690(D.Or.1995) (citing Farmers Ins. Exch. v. Portage La Prairie Mut. Ins. Co., 907 F.2d 911, 912 (9th Cir.1990)). The court has elected to resolve the motion on the parties’ briefs, exhibits, and affidavits, rather than hold an evidentiary hearing. Therefore, plaintiff need only “make a pri-ma facie showing of jurisdictional facts in order to defeat [the] motion to dismiss.” Farmers Ins. Exch., 907 F.2d at 912.1 “ ‘That is, [ ] plaintiff need only demonstrate facts that if true would support jurisdiction over the defendant.’ ” Doe v. Unocal Corp., 248 F.3d 915, 922 (9th Cir.2001) (quoting Ballard v. Savage, 65 F.3d 1495, 1498 (9th Cir.1995)). The court takes plaintiffs version of the facts as true for purposes of a Rule 12(b)(2) motion to dismiss, and resolves any conflicts in the evidence set forth in the affidavits in plaintiffs favor. Id.

In order to establish personal jurisdiction, plaintiff must show both that Oregon’s long-arm statute confers personal jurisdiction over the nonresident defendant, and that the exercise of jurisdiction comports with due process. Gray & Co. v. Firstenberg Mach. Co., Inc., 913 F.2d 758, 760 (9th Cir.1990); Overby, 882 F.Supp. at 966. Oregon’s long-arm statute confers personal jurisdiction to the extent due process allows. Overby, 882 F.Supp. at 966; Or. R. Civ. Pro. 4(L).

Satisfaction of due process occurs when a nonresident defendant has “ ‘certain minimum contacts with [the forum] 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, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984) (quoting International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945) (quoting Milliken v. Meyer, 311 U.S. 457, 463, 61 S.Ct. 339, 85 L.Ed. 278 (1940))).2 In addition to establishing the requisite contacts, the assertion of jurisdiction must be found reasonable. Asahi Metal Indus. Co. v. Superior Ct., 480 U.S. 102, 107, 107 S.Ct. 1026, 94 L.Ed.2d 92 (1987); Unocal Corp., 248 F.3d at 925 (citing Amoco Egypt Oil Co. v. Leonis Navigation Co., 1 F.3d 848, 851 (9th Cir.1993)).

A. NAG Contacts with Oregon

NAG states its purpose as “holdfing] interests in enterprises in the area of health care or nutrition [or] in the areas of biology, chemistry, physics, information technology or related areas.” Affidavit of Brian Campf (“Campf Aff.”), Ex. 11. Except through the activities of its affiliates, NAG has no physical presence and conducts no business in Oregon. NPC falls within the pharmaceuticals sector of the “Novartis Group,” comprising in total some 360 affiliates in 140 different countries. See Campf Aff., Ex. 8. Specifically, NPC is a wholly-owned subsidiary of Novartis Finance Corporation, a U.S. holding [691]*691company wholly-owned by another U.S. holding company, Novartis Corporation, which is a wholly-owned subsidiary of a Swiss holding company, Novartis Holding AG, which, finally, is a wholly-owned subsidiary of NAG. See Decl. of Peter Kor-nicker (“Kornicker Decl.”), ¶¶ 6-7.

There is no dispute that NPC is subject to personal jurisdiction in Oregon. See NAG’s Opp’n at 4 & n. 1.3 As such, the court must determine whether NPC’s Oregon contacts may be attributed to NAG through an agency relationship. See Unocal Corp., 248 F.3d at 925 (“Where, as here, the defendant’s alleged contacts are through its corporate subsidiaries, the Court must engage in a preliminary inquiry to determine whether the subsidiaries contacts are properly attributed to the defendant.”)

1. Personal Jurisdiction Based on Agency:

The mere existence of a parent-subsidiary relationship is not sufficient to confer personal jurisdiction over the parent based on the subsidiary’s forum contacts. Unocal Corp., 248 F.3d at 925.4

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Related

In Re Phenylpropanolamine (Ppa) Products Liab. Lit.
344 F. Supp. 2d 686 (W.D. Washington, 2003)

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Bluebook (online)
344 F. Supp. 2d 686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alvis-v-glaxosmithkline-wawd-2003.