Boyce v. Cycle Spectrum, Inc.

148 F. Supp. 3d 256, 2015 WL 8273463
CourtDistrict Court, E.D. New York
DecidedDecember 8, 2015
Docket14-CV-1163
StatusPublished
Cited by7 cases

This text of 148 F. Supp. 3d 256 (Boyce v. Cycle Spectrum, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Boyce v. Cycle Spectrum, Inc., 148 F. Supp. 3d 256, 2015 WL 8273463 (E.D.N.Y. 2015).

Opinion

MEMORANDUM & ORDER

Jack B. Weinstein, Senior United States District Judge:

Table of Contents

I. Introduction... 259

II. Facts... 260

A. Parties... 260

B. The handle bar’s path from manufacture to plaintiff... 261

C.Procedural History... 262

III. Law... 263

A. Pleading Burden... 263

B. Personal Jurisdiction... 263

1. New York General Jurisdiction... 264 '

2. New York Long-Arm Statute... 264

a) N.Y. C.P.L.R. § 302(a)(1)... 265

b) N.Y. C.P.L.R. § 302(a)(2).’.. 265

c) N.Y. C.P.L.R. § 302(a)(3)... 265

3. Due Process... 266

a) Minimum Contacts... 266

b) Reasonableness... 267

IV. Application of Law to Facts... 268

' A. General Jurisdiction.... 268

B. Specific Jurisdiction... 268

1. C.P.L.R. § 302(a)(1)... 268

2. C.P.L.R. § 302(a)(2)... 270

3. C.P.L.R. § 302(a)(3)... 270

V. Due Proc’ess... 270

VI. Conclusion... 270

I. Introduction

This case illustrates.the extensive internationalization of the production of consumer goods .and some of the jurisdictional problems that exist in compensating for harms to consumers all over the world. Complexities are increased where the path a product takes between suppliers and customers is indirect, with intervening persons communicating by e-mail, internet, and other electronic devices of the modem world linked through satellites and transoceanic undersea cables. .

The injured consumer should be entitled, where possible, to sue for damages in his or her local court, rather than a distant forum. See, e.g., Essay, Mass Tort Jurisdiction and Choice of Law in a Multinational World Communicating by Extrater[260]*260restrial Satellites, 37 Willamette L.Rev. 145, 146-51 (Winter 2001) (discussing need for availability of jurisdiction, venue, and choice of law based on national contacts). The defendant manufacturer is more likely to be able to afford travel to plaintiffs venue. And, in any event, modem video and other devices make presence in another venue much less burdensome to the well-to-do. See Flores v. United States, 142 F.Supp.3d 279, 287-88, No. 14-CV-3166, 2015 WL 6737744, at *5 (E.D.N.Y. Nov. 4, 2015) (discussing the availability of video conference technology in reducing the burden on witnesses located away from the courthouse).

To the extent that changes in the basis for personal jurisdiction are frozen by the Constitution, international treaties may provide an escape to a more flexible and rational modem approach. Compare Asahi Metal Indus. Co. v.Super. Ct. of Cal., Solano Cty., 480 U.S. 102, 108, 107 S.Ct. 1026, 94 L.Ed.2d 92 (1987) (“The Due Process Clause of the Fourteenth Amendment limits the power of a state court to exert personal jurisdiction over a nonresident defendant.”) with The Trans-Pacific Partnership, art. 28.4 (2015), https://ustr.gov/ sites/default/flles/TPP-Final-Text-Dispute-Settlement.pdf (“Where a dispute regarding any matter arises under this Agreement and under another international trade agreement to which disputing parties are party, including the WTO Agreement, the complaining Party may select the forum in which to settle the dispute.”); J. McIntyre Mach., Ltd. v. Nicastro, 564 U.S. 873, 131 S.Ct. 2780, 2800-01, 180 L.Ed.2d 765 (2011) (Ginsburg, J. [formerly professor and author on civil procedure and jurisdiction], dissenting) (examining case in which manufacturer “dealt with the United States as a single market,” opining as follows: “The modem approach to jurisdiction over corporations and other legal entities, ushered in by International Shoe, gave prime place to reason and fairness. Is it not fair and reasonable, given the mode of trading of which this case is an example, to require the international seller to defend at the place its products cause injury?”) (emphasis added).

The underlying claim in this case is that a bicycle handle bar was defectively manufactured, causing it to break and cause injuries when the bicycle’s rider, plaintiff Timothy Boyce, lost control of the bicycle and fell to the ground. The instant motion is brought by third-party defendant HL Corp. (Shenzhen) (“HL Corp.”), a company based in China with no direct New York contacts. It was impleaded by three defendants through two separate third-party complaints. All three impleading defendants seek contribution and indemnification from HL Corp. HL Corp moves pursuant to Federal Rule 12(b)(2) to dismiss both third-party complaints for lack of personal jurisdiction.

Although the economic realities of the world have changed significantly since the Supreme Court’s modem jurisdictional jurisprudence was announced, until the Supreme Court rules otherwise, this court is bound by those holdings. There is presently no statutory or constitutional basis to exercise personal jurisdiction over HL Corp.

II. Facts

A. Parties

Plaintiffs Timothy and Courtney Boyce are residents of New York. The defendants and their primary locations are:

• Defendant/Third-Party Plaintiff Velo BDBI Support Inc.: Texas
• Defendant/Third-Party Plaintiff Advanced Sports, Inc.: Pennsylvania
• Defendant/Third-Party Plaintiff Spratt Cycle Support, Inc.: Florida
[261]*261• Defendant Windsor America Corp.: Delaware
• Third-Party Defendant Ideal Bike Corporation: Taiwan
• Third-Party Defendant Top Sport International Ltd.: Taiwan
• Third-Party Defendant/Movant HL Corp. (Shenzhen): China

HL Corp. is a Chinese corporation with its principle place of business in China. Hr’g Tr., Nov. 20, 2015 (“Hr’g Tr.”), at 8:6-9. It manufactures and sells rehabilitation equipment, sports equipment, and bicycle parts. Its annual revenue is approximately $150 million. Id. at 24:19-22. Approximately one-third of this revenue comes from the. sale of bicycle handle bars; HL Corp. is known as. one of the world’s leading manufacturers of this product. Id. at 18:22-25; 24:23-25:3. HL Corp.’s recent annual revenue from direct sales to the United States totaled $6,100; no sale was made to a consumer in New York. Id. at 26:3-14.

B. The handle bar’s path from'manufacture to plaintiff

The bicycle handle bar at issue in this case was manufactured by HL Corp. in China.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
148 F. Supp. 3d 256, 2015 WL 8273463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boyce-v-cycle-spectrum-inc-nyed-2015.