Bayne v. Taishan Gypsum Co., Ltd.

CourtDistrict Court, N.D. Alabama
DecidedAugust 13, 2021
Docket4:17-cv-01286
StatusUnknown

This text of Bayne v. Taishan Gypsum Co., Ltd. (Bayne v. Taishan Gypsum Co., Ltd.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bayne v. Taishan Gypsum Co., Ltd., (N.D. Ala. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA MIDDLE DIVISION

RANDY BAYNE, et al., individually, ] and on behalf of all others similarly ] situated, ] ] Plaintiffs, ] 4:17-cv-1286-KOB ] v. ] ] TAISHAN GYPSUM COMPANY, ] LTD. f/k/a SHANDONG TIAHE ] DONGXIN CO., LTD., et al,

Defendants.

MEMORANDUM OPINION

This case is before the court after remand from the United States Judicial Panel on Multidistrict Litigation and on Defendants Taishan Gypsum Co., Ltd. and Tai’an Taishan Plasterboard Co., Ltd.’s (collectively “Taishan”)1 motion to dismiss for lack of personal jurisdiction pursuant to Fed. R. Civ. P. 12(b)(2) (doc. 38). Plaintiffs responded (doc. 41), and Taishan replied (doc. 42). The motion is ripe for review. For the reasons set forth below, the court GRANTS Taishan’s motion to the extent that it finds that the court lacks personal jurisdiction over Taishan but, at Plaintiffs’ request, transfers this case to the United States District Court for the Northern District of Florida, Pensacola Division, under 28 U.S.C. § 1404(a), where presumably personal jurisdiction may exist. I. Background This case arises out of the installation of Chinese drywall—used because of a shortage of

1 Defendant Tai’an Taishan Plasterboard Co., Ltd. is a wholly owned subsidiary of Defendant Taishan Gympsum Co., Ltd. drywall in the U.S. marketplace after Hurricanes Katrina and Rita—in Alabama homes and buildings. The Chinese drywall allegedly led to “odd odors, corrosion of metal components, failure of electronics and appliances, and in some cases, physical ailments, such as nose bleeds, skin irritation, and respiratory problems.” (Doc. 41 at 6−7). On August 1, 2017, a group of

owners and residents of real property containing the defective, Chinese-manufactured drywall in Alabama brought a putative class action against Taishan and several other Defendants for designing, manufacturing, importing, distributing, delivering, supplying, marketing, inspecting, installing, and selling defective gypsum drywall that was used in their residential and business structures. (Doc. 1). On August 31, 2017, the United States Judicial Panel on Multidistrict Litigation transferred the case to the United States District Court for the Eastern District of Louisiana and assigned it to Judge Eldon E. Fallon for consolidated pretrial proceedings, like discovery. (Doc. 2). On January 10, 2020, the MDL court approved a Global Class Action Settlement. (Doc. 3-1). The claimants in the present action decided to exercise their rights to opt- out of the settlement and proceed independently. On April 15, 2020, this case—the merits of

which were never litigated in the MDL—was remanded back to this court. (Doc. 3). On September 25, 2020, Taishan filed a motion to dismiss Plaintiffs’ complaint. (Doc. 5). On September 28, 2020, Defendants Beijing New Building Materials Public Limited Co. (“BNBM”), China National Building Materials Co., Ltd. (“CNBM Co.”), and Beijing New Building Materials Group Co., Ltd. (“BNBM Group”) also filed a motion to dismiss Plaintiffs’ complaint. (Doc. 6). On October 23, 2020, Plaintiffs filed a notice of voluntary dismissal as to Defendants BNBM, CNBM Co., and BNBM Group (doc. 22). The court dismissed Plaintiffs’ claims against those Defendants without prejudice. (Doc. 23). On November 12, 2020, 2 Plaintiffs—with the court’s leave—filed an amended complaint (doc. 34). Taishan then filed the present revised motion to dismiss (doc. 39). II. Legal Standard Taishan moves to dismiss Plaintiffs’ Amended Complaint (doc. 34) pursuant to Fed. R. Civ. P. 12(b)(2) for lack of personal jurisdiction, asserting that Plaintiffs have not met their

burden to plead a basis for jurisdiction and that the court has neither general nor personal jurisdiction over Taishan. (Doc. 39 at 12−14). When a defendant moves to dismiss a complaint for lack of personal jurisdiction and the court does not hold an evidentiary hearing, “the plaintiff bears the burden of establishing a prima facie case of jurisdiction over the movant, non-resident defendant.” Morris v. SSE, Inc., 843 F.2d 489, 492 (11th Cir. 1988) (citations omitted). “A prima facie case is established if the plaintiff presents sufficient evidence to defeat a motion for a directed verdict,” and “[t]he district court must construe the allegations in the complaint as true, to the extent that they are uncontroverted by defendants’ affidavits or deposition testimony.” Id. When defendants submit affidavits or deposition testimony showing the court lacks personal

jurisdiction, “the burden traditionally shifts back to the plaintiff to produce evidence supporting jurisdiction unless [defendants’ affidavits or deposition testimony] contain only conclusory assertions that defendant is not subject to jurisdiction.” Meier ex rel. Meier v. Sun Intern. Hotels, Ltd., 288 F.3d 1264, 1269 (11th Cir. 2002). Where the evidence conflicts, the court “must construe all reasonable inferences in favor of the non-movant plaintiff.” Madara v. Hall, 916 F.2d 1510, 1514 (11th Cir. 1990).

3 III. Discussion A. Threshold Burden First, in its motion to dismiss, Taishan asserts that Plaintiffs have not met their initial burden to plead jurisdiction under the Iqbal/Twombly pleading standards. (Doc. 39 at 12). Under that standard, “[t]o survive a motion to dismiss, a complaint must contain sufficient

factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). Looking at the Amended Complaint (doc. 34), the court finds that Plaintiffs have alleged sufficient facts to meet their threshold burden for pleading personal jurisdiction. Plaintiffs allege that Taishan is subject to the Alabama Long-Arm Statute for manufacturing, selling, distributing, marketing, and placing gypsum drywall within the stream of commerce with the expectation that consumers in several states, including Alabama, would purchase it. The court finds that these allegations are sufficient to meet the threshold burden.

B. Personal Jurisdiction Second, Taishan argues that no Plaintiff can establish personal jurisdiction over Taishan because (1) Taishan is not subject to the general jurisdiction of Alabama courts, as it has no presence or continuous and systematic contacts in Alabama, and because (2) Taishan is not subject to the specific jurisdiction of Alabama courts, as Plaintiffs cannot show and have not alleged that Taishan “purposefully directed the drywall in their particular property to this State or otherwise availed itself of the privilege of doing business in Alabama.” (Doc. 39 at 5, 9).

4 Whether a federal court may exercise personal jurisdiction over a non-resident defendant in a diversity case is usually a two-step inquiry involving a state’s long-arm statute and the due process requirements of the United States Constitution.

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Bayne v. Taishan Gypsum Co., Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/bayne-v-taishan-gypsum-co-ltd-alnd-2021.