Bridgestone Corp. v. Superior Court

99 Cal. App. 4th 767, 121 Cal. Rptr. 2d 673, 2002 Cal. Daily Op. Serv. 5724, 2002 Daily Journal DAR 7181, 2002 Cal. App. LEXIS 4320
CourtCalifornia Court of Appeal
DecidedJune 25, 2002
DocketNo. B151190
StatusPublished
Cited by13 cases

This text of 99 Cal. App. 4th 767 (Bridgestone Corp. v. Superior Court) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bridgestone Corp. v. Superior Court, 99 Cal. App. 4th 767, 121 Cal. Rptr. 2d 673, 2002 Cal. Daily Op. Serv. 5724, 2002 Daily Journal DAR 7181, 2002 Cal. App. LEXIS 4320 (Cal. Ct. App. 2002).

Opinion

[771]*771Opinion

KITCHING, J.

A foreign tire manufacturer regularly sold a large volume of tires to a California distributor, one of which allegedly failed and caused injury. The injured party sued the driver and others who then cross-complained against the manufacturer for indemnity and contribution. The manufacturer moved to quash service of summons on the ground that it does not have sufficient contacts with California to be subject to personal jurisdiction here. The trial court denied the motion. We conclude pursuant to Burger King Corp. v. Rudzewicz (1985) 471 U.S. 462 [105 S.Ct. 2174, 85 L.Ed.2d 528], Vons Companies, Inc. v. Seabest Foods, Inc. (1996) 14 Cal.4th 434 [58 Cal.Rptr.2d 899, 926 P.2d 1085], and Secrest Machine Corp. v. Superior Court (1983) 33 Cal.3d 664 [190 Cal.Rptr. 175, 660 P.2d 399] that the manufacturer purposefully availed itself of the benefits of conducting activities in California and obtained the benefits and protections of California’s laws by selling its products to a California distributor for resale in California. We therefore conclude that the manufacturer is subject to the jurisdiction of California courts, and that the trial court properly denied the motion to quash.

Factual and Procedural Background

Plaintiff John S. Lee sued defendants T & T Truck & Crane Service, Inc., Kenai Drilling, Ltd., and Gene Coker (collectively Truckers) in February 1999 for damages arising from the explosion of a trailer tire. Truckers are, respectively, the employer of the truck driver who was towing the trailer, trailer owner, and truck driver. Lee named Bridgestone/Firestone, Inc. (Firestone), a distributor of Bridgestone tires in California, as an additional defendant in December 1999.

Truckers cross-complained against Schoettler Tire and Firestone in February 2000 alleging that the cross-defendants had manufactured, designed, distributed, sold, installed, or were otherwise responsible for the tire and asserting causes of action for equitable indemnity and contribution. Trackers named Bridgestone Corporation (Bridgestone), a Japanese corporation and manufacturer of the tire, as a cross-defendant in May 2000.

Bridgestone moved to quash service of summons in January 2001 on the grounds that it does not have sufficient contacts with California to be subject to personal jurisdiction in California. It presented evidence that it is a Japanese corporation, has its principal place of business in Japan, manufactures and sells tires in Japan, is not licensed to do business in California, conducts no business in California and has no presence here, and does not [772]*772advertise or market its products in California. It also presented evidence that Firestone is a wholly owned subsidiary of Bridgestone, is incorporated in Ohio, has its principal place of business in Tennessee, and maintains a separate corporate identity. Bridgestone argued that merely placing goods in the stream of commerce with knowledge that they may be purchased in California does not constitute sufficient contacts to support personal jurisdiction.

Truckers opposed the motion arguing that Bridgestone has purposefully directed its activities toward California by delivering tires into the stream of commerce with the expectation that they would be purchased by consumers in California, and that it is reasonable to subject Bridgestone to personal jurisdiction here. Truckers also argued that Firestone as a wholly owned subsidiary of Bridgestone should be deemed a general agent for Bridgestone in California. They presented evidence that Firestone had distributed the subject tire and regularly distributed similar Bridgestone tires, and argued that Bridgestone knew that the tires would be purchased by California consumers.

The court continued the hearing on the motion to quash from February to May 2001 and allowed Truckers to conduct discovery on the issue of personal jurisdiction and to file supplemental opposition papers. Truckers presented evidence that Firestone’s distribution center in Ontario, California receives at least 25,000 tires per month manufactured by Bridgestone in Japan, and then distributes the tires to 850 to 900 Firestone dealers, approximately one-half of whom are in California. They also presented evidence that several Bridgestone employees have visited Firestone’s distribution center in recent years and that the manager of Firestone’s distribution center has visited Bridgestone in Japan on several occasions.

The court denied the motion to quash. It found that Bridgestone sold tires to Firestone in Japan, that no evidence showed Bridgestone sold tires in California, and that Firestone did not act as Bridgestone’s general agent in California. It stated that Firestone’s contacts with California cannot be imputed to Bridgestone based solely on their subsidiary-parent relationship or on an agency relationship. It concluded, however, that Bridgestone purposely directed its activities toward California by placing in the stream of commerce “[a]n enormous amount of tires” “to be sold primarily in California” and by entering into a trademark license agreement with Firestone. Thus, it concluded, Bridgestone and Firestone created a “symbiotic relationship” to market and distribute tires in California. The court also stated that California’s interests in the dispute are substantial because the injured parties are California residents and “[tjhis case concerns safety issues on a grand scale.”

[773]*773Bridgestone petitioned this court for extraordinary writ relief. We issued an order to show cause and stayed all trial court proceedings against Bridgestone.

Contentions

Bridgestone contends that (1) its sale of tires to Firestone in Japan with the expectation that Firestone would sell tires in California does not constitute activity purposefully directed toward California so as to support personal jurisdiction; (2) its license agreement with Firestone in addition to the tire sales does not constitute activity purposefully directed toward California; (3) Truckers’ cross-complaint for equitable indemnity and contribution does not arise out of the license agreement, so there is no basis for specific jurisdiction; and (4) California does not have a substantial interest in Bridge-stone’s dispute with Truckers because the dispute involves primarily indemnification, not product safety.

Discussion

1. Constitutional Limits to the Exercise of Personal Jurisdiction

A California court may exercise personal jurisdiction to the extent allowed under the United States Constitution and the California Constitution. (Code Civ. Proc., § 410.10; Vons Companies, Inc. v. Seabest Foods, Inc., supra, 14 Cal.4th at p. 444.) Under the Fourteenth Amendment due process clause, a state court may exercise personal jurisdiction over a nonresident defendant who has not been served with process inside the state only if the defendant has sufficient “minimum contacts” with the state so that the exercise of jurisdiction is reasonable and comports with “ ‘fair play and substantial justice.’ ” (Internat. Shoe Co. v. Washington (1945) 326 U.S. 310, 316-317 [66 S.Ct.

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Bluebook (online)
99 Cal. App. 4th 767, 121 Cal. Rptr. 2d 673, 2002 Cal. Daily Op. Serv. 5724, 2002 Daily Journal DAR 7181, 2002 Cal. App. LEXIS 4320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bridgestone-corp-v-superior-court-calctapp-2002.