AVICOLLI v. BJ'S WHOLESALE CLUB, INC.

District Court, E.D. Pennsylvania·Decided June 16, 2021·No. 2:21-cv-01119·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

NADINE AVICOLLI, et al. : CIVIL ACTION : v. : NO. 21-1119 : BJ’S WHOLESALE CLUB, INC., et al. :

MEMORANDUM KEARNEY, J. June 16, 2021 A husband and wife allege injury caused by a product purchased at a BJ’s Wholesale Club in Delaware County but manufactured in Mexico City by a Mexican company. The Mexican manufacturer did not sell the product to BJ’s. It sells products to a middleman Texas limited liability company with related managers which then sells the products to retailers like BJ’s. The Mexican manufacturer moves to dismiss arguing we lack personal jurisdiction over it. We granted the parties expedited jurisdictional discovery. The husband and wife are proceeding in discovery against BJ’s but have not adduced evidence allowing us to exercise personal jurisdiction over the Mexican manufacturer under either general or specific jurisdiction theories. The Mexican manufacturer is not “at home” here. The Mexican manufacturer cannot be subject to our personal jurisdiction just because it has a contractual relationship with a Texas company which, in turn, sells its products in the United States including to BJ’s. The husband and wife do not adduce evidence of an alter ego relationship between the Mexico manufacturer and Texas distributor warranting an exercise of equitable piercing of corporate protections. We further decline to adopt a stream of commerce theory to find specific jurisdiction over the Mexican manufacturer. We dismiss the Mexican manufacturer without prejudice. I. Facts adduced in jurisdictional discovery. Dennis Avicolli purchased a seventeen-ounce bottle of Blumen Clear Advanced Hand Sanitizer from a local BJ’s Wholesale Club in May 2020.1 The foreign manufacturer of the hand sanitizer - 4E Global SAPI de CV (“4E Global”) – subsequently recalled all of its seventeen-ounce bottles because they contained methanol or wood alcohol.2 Mr. Avicolli’s wife, Nadine Avicolli,

allegedly sustained injuries after she “ingested” some of the hand sanitizer.3 The Avicollis sued BJs, 4E Global, and the regional distributor of the hand sanitizer, 4E Brands North America (“4E Brands”), alleging product defect, lack of warning labels, and negligence.4 4E Global 4E Global is a business entity formed in Mexico with a principal place of business in Mexico.5 4E Global manufactures hand sanitizers, hand soaps, and personal hair care products in Mexico City.6 4E Brands then purchases these products and 4E Global exports them to 4E Brands’ Texas facility.7 Over thirty-one million units of 4E Global products have been sold in the United States.8 4E Global is responsible for ensuring its products and labels comply with state and federal law.9 4E Global also decides whether to issue a recall of its products.10

Juan Carlos González Olvera works as 4E Global’s marketing and product development director and previously served as its operations director.11 Juan Carlos’s brother, Jorge González Olvera, also serves as a director of 4E Global.12 4E Brands 4E Brands is a limited liability company formed in Texas with a principal place of business in Texas.13 4E Brands is a wholly-owned subsidiary of 4E Global.14 4E Brands’ registered managers – Jorge and Juan Carlos – are citizens of Mexico.15 Jorge and Juan Carlos created 4E Brands around 2016, in part, to distribute 4E Global’s products in the United States.16 They created 4E Brands specifically to sell 4E Global’s products to Dollar Tree in Virginia.17 4E Brands continued to sell to Dollar Tree until February or March 2020.18 4E Brands has also sold products to several companies including BJ’s, Costco Wholesale Corporation, and Sam’s Club in the past five years.19

Juan Carlos served as 4E Brands’ vice president since its creation and works for 4E Brands remotely from Mexico.20 4E Global did not impose restrictions or limitations on 4E Brands with respect to the states in which it sells 4E Global’s products.21 4E Brands has only sold 4E Global’s products although Juan Carlos testified 4E Brands has been looking for other suppliers.22 4E Brands does not have a retail store.23 4E Brands does not manufacture products but conducts market research into products like shampoos and soaps.24 4E Brands and 4E Global use similar logos.25 4E Brands shipped 141,240 units of 4E Global products to Pennsylvania.26 BJ’s relationship with 4E Global and 4E Brands BJ’s swore it has not entered into contracts or supply agreements with 4E Global.27 BJ’s instead purchased 4E Global’s products from 4E Brands by purchase order invoices.28 4E Brands

then shipped the products to a BJ’s facility in Laredo, Texas.29 4E Brands has sold over two million units of hand sanitizer to BJ’s.30 BJ’s delivered the products from the Texas facility to its retail locations.31 BJ’s operates seventeen retail clubs in Pennsylvania.32 BJ’s sold Blumen hand sanitizer at each of these seventeen locations for some period.33 BJ’s sold Blumen hand sanitizer in 46,919 transactions in its Pennsylvania clubs.34 Juan Carlos – on behalf of 4E Brands – signed an agreement with BJ’s titled “Re: Electronic Transmission of Purchase Orders.”35 4E Brands and BJ’s agreed to submit purchase orders using electronic data interchange.36 Juan Carlos provided two email addresses on the agreement: mrodriguez@4eglobal.com and jpallores@4eglobal.com.37 II. Analysis 4E Global moves to dismiss claims against it. It argues we lack personal jurisdiction over

it because (1) it is not “at home” in Pennsylvania and (2) it has not deliberately targeted Pennsylvania.38 We allowed the Avicollis to conduct jurisdictional discovery. The Avicollis argue following discovery we have specific jurisdiction over 4E Global through 4E Brands’ contacts with Pennsylvania under an alter ego theory.39 They also argue we have general jurisdiction over 4E Global because it has sold millions of products in the United States, including hundreds of thousands in Pennsylvania.40 Federal Rule of Civil Procedure 4(k) allows a federal court to exercise personal jurisdiction over a non-resident defendant to the extent provided by the law of the state in which the federal court sits.41 We look to Pennsylvania’s long-arm statute, which allows courts in Pennsylvania to assert personal jurisdiction over non-resident defendants “to the fullest extent allowed under the

Constitution of the United States and may be based on the most minimum contact with this Commonwealth allowed under the Constitution of the United States.”42 The Due Process Clause of the Constitution, in turn, requires non-resident defendants “have certain minimum contacts with [Pennsylvania] such that maintenance of the suit does not offend traditional notions of fair play and substantial justice.”43 If a defendant challenges the exercise of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2), the plaintiff bears the burden of demonstrating personal jurisdiction exists.44 The plaintiff cannot rest on his pleadings alone and must instead present affidavits or other competent evidence of sufficient contact with the forum state.45 “Such contacts must be established with ‘reasonable particularity,’ but need only amount to a prima facie case in favor of personal jurisdiction.”46 If the plaintiff meets this burden, the defendant must then establish the presence of other considerations that would render jurisdiction unreasonable.47 We must have either specific or general jurisdiction over a defendant to exercise personal

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

AVICOLLI v. BJ'S WHOLESALE CLUB, INC., (E.D. Pa. 2021).

AVICOLLI v. BJ'S WHOLESALE CLUB, INC. (AVICOLLI v. BJ'S WHOLESALE CLUB, INC.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
Hanson v. Denckla
357 U.S. 235 (Supreme Court, 1958)
Helicopteros Nacionales De Colombia, S. A. v. Hall
466 U.S. 408 (Supreme Court, 1984)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Goodyear Dunlop Tires Operations, S. A. v. Brown
131 S. Ct. 2846 (Supreme Court, 2011)
J. McIntyre Machinery, Ltd. v. Nicastro
131 S. Ct. 2780 (Supreme Court, 2011)
Susan Rocke v. Pebble Beach Company
541 F. App'x 208 (Third Circuit, 2013)
O'CONNOR v. Sandy Lane Hotel Co., Ltd.
496 F.3d 312 (Third Circuit, 2007)
Clark v. Matsushita Electric Industrial Co.
811 F. Supp. 1061 (M.D. Pennsylvania, 1993)
Ent. Rent-A-Car Wage & Hour Emp. Practices Lit.
735 F. Supp. 2d 277 (W.D. Pennsylvania, 2010)
SIMEONE EX REL. ESTATE SIMEONE v. Bombardier-Rotax
360 F. Supp. 2d 665 (E.D. Pennsylvania, 2005)
Daimler AG v. Bauman
134 S. Ct. 746 (Supreme Court, 2014)
Walden v. Fiore
134 S. Ct. 1115 (Supreme Court, 2014)
Walter Shuker v. Smith & Nephew PLC
885 F.3d 760 (Third Circuit, 2018)
Ford Motor Co. v. Montana Eighth Judicial Dist.
592 U.S. 351 (Supreme Court, 2021)
Farber v. Tennant Truck Lines, Inc.
84 F. Supp. 3d 421 (E.D. Pennsylvania, 2015)
Britax Child Safety, Inc. v. Nuna Int'l B.V.
321 F. Supp. 3d 546 (E.D. Pennsylvania, 2018)
Aetna Inc. v. Insys Therapeutics, Inc.
324 F. Supp. 3d 541 (E.D. Pennsylvania, 2018)