Best Buy Co. v. Hitachi Ltd.

27 F. Supp. 3d 1002, 2014 U.S. Dist. LEXIS 35389
CourtDistrict Court, N.D. California
DecidedMarch 13, 2014
DocketMDL No. 1917; Case No. C-07-5944-SC
StatusPublished
Cited by29 cases

This text of 27 F. Supp. 3d 1002 (Best Buy Co. v. Hitachi Ltd.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Best Buy Co. v. Hitachi Ltd., 27 F. Supp. 3d 1002, 2014 U.S. Dist. LEXIS 35389 (N.D. Cal. 2014).

Opinion

[1006]*1006 ORDER DENYING BEIJING-MAT-SUSHITA COLOR CRT CO.’S MOTION TO DISMISS

Samuel Conti, UNITED STATES DISTRICT JUDGE

I. INTRODUCTION

Now before the Court is Defendant Beijing-Matsushita Color CRT Company’s (“Defendant” or “BMCC”) motion to dismiss certain Direct Action Plaintiffs’ (“Plaintiffs” or “DAPs”) complaints for lack of personal jurisdiction.1 ECF No. 2118 (“MTD”). The motion is fully briefed. ECF Nos. 2239-4 (“Opp’n”) (filed under seal), 2363 (“Reply”).2 Finding this matter suitable for disposition without oral argument, Civ. L.R. 7-l(b), the Court DENIES the motion.

II. BACKGROUND

Defendant is a Chinese company with its principal place of business in Beijing, China. See Target SAC ¶ 38; Best Buy FAC ¶ 44; Sears Compl. ¶ 40; Tech Data FAC ¶46. During the time relevant to the Complaints, Defendant was a joint venture, and its shareholders included MT Picture Display Co. Ltd. (“MTPD”), a subsidiary of Defendant Panasonic Corporation (“Panasonic”), which owned 50 percent of Defendant. Id. Three Chinese companies owned the remainder. See id. Plaintiffs allege that MTPD controlled Defendant, classified it as a business unit, monitored its activities, and assigned its directors responsibility over Defendant. ECF No. 2339-5 (“Loh Deck”) Ex. D at 6, 11, 12, 17, 18, 27, 37, 38 (filed under seal). Originally, MTPD was formed as a joint venture between Defendants Panasonic and Toshiba, with Panasonic owning 64.5 of MTPD and Toshiba owning the remaining 35.5, but Panasonic purchased Toshiba’s share on March 30, 2007, making MTPD Panasonic’s wholly owned subsidiary. Best Buy FAC ¶ 43; Tech Data FAC ¶ 45; Target SAC ¶ 37. Panasonic personnel moved interchangeably through Defendant, MTPD, and related entities.

Plaintiffs allege that between at least 1998 and 2007, Defendant conspired to fix prices of CRTs ultimately sold in the United States. See Best Buy FAC ¶¶ 1, 4, 14, 44; Tech Data FAC ¶¶ 1, 4,15, 46; Target SAC ¶¶ 1, 3, 14, 38. This included attending meetings with co-conspirators regarding the prices of CRTs sold to corporate [1007]*1007affiliates, which manufactured finished CRT Products like televisions and computer monitors for sale in the United States. See Best Buy FAC ¶¶ 116-30, 146; Tech Data FAC ¶¶ 121-34, 142; Target SAC ¶¶ 109-24, 140. The co-conspirators allegedly ensured that all original equipment manufacturers (“OEMs”), including their affiliates, paid supracompetitive prices for CRTs around the world, including in the United States. See Best Buy FAC ¶ 127; Tech Data FAC ¶ 132; Target SAC ¶ 120.

Defendant allegedly participated in price-fixing meetings in China between 1998 and 2007. See, e.g., Loh Decl. Ex. E (“Samsung Interrogs.”) at 29-85 (summarizing Defendant Samsung SDI’s price-fixing meetings with alleged co-conspirators, including Defendant); id. Ex. F (‘Tang Depo.”) 402:3-22 (stating that Defendant, and other alleged co-conspirators conducted meetings in China); id. Ex. G (“Lu Depo.”) 238:2-23 (same); id. Ex. O (meeting notes from a discussion among alleged co-conspirators, including Defendant, regarding CRT marketing information, including sales to United States customers like Wal-Mart, Circuit City, and Sears). The alleged co-conspirators coordinated pricing decisions in relation to United States market conditions, and discussed CRT prices in U.S. dollars. Id. Ex. H (“Mar. 9, 2001 Notes”) at CHU00029193E (noting that Defendant Orion, as well as other unnamed customers, would see an increase in orders as the United States market’s high season drew closer), CHU00029194E (stating that though Defendant did not attend that meeting, another party was responsible for delivering price increase news to Defendant so that producers would not confuse customers by providing lower prices); id. Ex. I (“Aug. 23, 1999 Notes”) at CHU00029179.02E (confirming that Defendant had raised CRT prices from USD 29.50 to USD 30.50 following communications with another alleged co-conspirator).

Importantly for this particular case, Defendant asserts that it never sold any CRTs or CRT Products to United States customers — rather, it sold the majority of its CRTs to customers in China. ECF No. 2118-1 (“Kinoshita Deck”) ¶¶ 21-23. It sold certain CRTs to Defendant Panasonic, which then sold them in the United States, but Defendant avers that it had no control over or responsibility for Panasonic’s volume or pricing decisions. Id. Certain deposition testimony states, however, that Defendant sold CRTs to AKEI, which the witness states was a New Jersey-based Matsushita affiliate. Loh Deck Ex. K (“Liu Depo.”) 423:17-424:11. Further, Panasonic and Defendant exchanged frequent emails regarding Chinese television makers’ sales to the United States. See Loh Deck Ex. L (“Jun. 13, 2002 Email”). Defendant supplied this information to Panasonic, which included certain Chinese manufacturers’ sales to Best Buy and the American military, among others. Loh Deck Ex. M (“Sept. 11, 2003 Email”). Other emails concern discussions among Defendant, Panasonic, and MTPD about price and volume increases to the United States. Loh Deck Ex. N (“Sept. 11, 2006 Email”).

Plaintiffs sued Defendant under federal and state antitrust and competition laws, based on their allegations that Defendant fixed prices on CRTs that it or its affiliates sold in the United States. Defendant moves to dismiss, arguing that the Court lacks either general or specific jurisdiction over it, and that some Plaintiffs’ service on Defendant was improper, owing to what Defendant claims is the Court’s error in prior orders concerning methods of serving foreign defendants.

[1008]*1008III. LEGAL STANDARD

A. Jurisdiction — Rule 12(b)(2)

Under Rule 12(b)(2) of the Federal Rules of Civil Procedure, defendants may move to dismiss for lack of personal jurisdiction. The Court may consider evidence presented in affidavits and declarations determining personal jurisdiction. Doe v. Unocal Corp., 248 F.3d 915, 922 (9th Cir.2001). Plaintiff bears the burden of showing that the Court has personal jurisdiction over Defendants. See Pebble Beach Co. v. Caddy, 453 F.3d 1151, 1154 (9th Cir.2006). “[T]his demonstration requires that the plaintiff make only a prima facie showing of jurisdictional facts to withstand the motion to dismiss.” Id. (quotations omitted). “[T]he court resolves all disputed facts in favor of the plaintiff....” Id. (quotations omitted). “The plaintiff cannot simply rest on the bare allegations of its complaint, but un-controverted allegations in the complaint must be taken as true.” Mavrix Photo, Inc. v. Brand Techs., Inc., 647 F.3d 1218, 1223 (9th Cir.2011) (quotations and citations omitted). The Court may not assume the truth of allegations that are contradicted by affidavit. Data Disc, Inc. v. Sys. Tech. Assocs., Inc., 557 F.2d 1280, 1284 (9th Cir.1977).

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27 F. Supp. 3d 1002, 2014 U.S. Dist. LEXIS 35389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/best-buy-co-v-hitachi-ltd-cand-2014.