Buckley v. Universal Sewing Supply, Inc.

CourtDistrict Court, M.D. Pennsylvania
DecidedOctober 17, 2019
Docket1:19-cv-00794
StatusUnknown

This text of Buckley v. Universal Sewing Supply, Inc. (Buckley v. Universal Sewing Supply, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buckley v. Universal Sewing Supply, Inc., (M.D. Pa. 2019).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA KAREN KAY BUCKLEY, : Civil No. 1:19-cv-794-SHR : Plaintiff, : : v. : : UNIVERSAL SEWING SUPPLY, : INC., : : Defendant. : Judge Sylvia H. Rambo

M E M O R A N D U M Before the court is the motion to dismiss for lack of personal jurisdiction and improper venue, or, alternatively, to transfer based on 28 U.S.C. § 1404(a) (Doc. 9), filed by Defendant Universal Sewing Supply, Inc. (“Defendant” or “Universal”). Having considered the motion, Plaintiff’s response (Doc. 11), and Defendant’s reply (Doc. 13), the court will deny the motion without prejudice, granting Plaintiff leave to conduct limited jurisdictional discovery. I. Background This is a copyright infringement dispute. For the purposes of this memorandum, the court shall construe all facts in favor of Plaintiff and view the documentary evidence and declaration1 submitted in the light most favorable to her.

1 While the written statement by Plaintiff is labeled an “affidavit,” it is not notarized and thus does not constitute an affidavit. Furnier v. M&T Veneer Corp., No. 1:10-cv-0222, 2010 WL 2835563, at *1 n.2 (M.D. Pa. July 16, 2010) (“The unsworn declaration of Theresa Duty is not an affidavit. An affidavit is taken before a person having authority to administer an oath or affirmation.”) (internal quotations and ellipses omitted); accord BLACK’S LAW DICTIONARY 70 Plaintiff Karen Kay Buckley (“Plaintiff”) is a quilt designer who designed multiple different types of quilting scissors. In December of 2016, Plaintiff began

negotiating, by email and phone, a distributor deal with Universal, whereby it would purchase and re-sell Plaintiff’s scissors under certain limitations, including a restriction on selling scissors through websites such as Amazon. On March 30,

2017, Defendant issued a purchase order requesting 7,920 pairs of scissors for a price of $64,407.60. In response, Plaintiff accepted the purchase order and shipped the requested products from Pennsylvania to Missouri on April 11, 2017. On August 24, 2017, Universal issued an additional purchase order that Plaintiff again filled by

shipping the scissors from Pennsylvania. Universal paid for these purchases by mailing checks to Plaintiff at her Pennsylvania address. At some point in 2017, Plaintiff began receiving complaints from other

distributors of a competitor selling her scissors on Amazon for cheaper prices. Plaintiff came to believe Universal was the party doing so. Thus, in response to Defendant’s next purchase order, Plaintiff informed Defendant she would no longer

(11th ed. 2019) (defining an affidavit as a “voluntary declaration of facts written down and sworn to by a declarant, usu. before an officer authorized to administer oaths”). Nonetheless, Plaintiff issues her statement “pursuant to 28 U.S.C. § 1746,” and “declare[s] under penalty of perjury that the foregoing is true and correct.” (Doc. 12-1, ¶¶ 1, 27.) It thus constitutes a valid declaration under § 1746 and can be relied upon by the court in “any matter” requiring an evidentiary basis. 28 U.S.C. § 1746(2). sell to them due to their breaching of the agreement by selling through Amazon. Defendant never responded.

According to the complaint, Defendant then began selling a set of copycat scissors with virtually identical packaging and design, encroaching on Plaintiff’s intellectual property rights. On May 9, 2019, Plaintiff thus brought suit against

Defendant for copyright infringement and Lanham Act violations, alleging trade dress infringement and unfair competition. (See generally, Doc. 1.) On July 9, 2019, Defendant moved to dismiss the case for lack of personal jurisdiction and improper venue; or, alternatively, to transfer the case to the Eastern

District of Missouri. (See generally, Docs. 9-10.) On July 23, 2019, Plaintiff filed a response. (Docs. 11-12.) And on August 5, 2019, Defendant filed a reply with eight new exhibits. (Doc. 13.) This motion is thus ripe for review.

II. Standard of review In reviewing a 12(b)(2) motion to dismiss for lack of jurisdiction, the court must take as true the facts alleged by the plaintiff. Metcalfe v. Renaissance Marine, Inc., 566 F.3d 324, 330 (3d Cir. 2009) (citing O’Connor v. Sandy Lane Hotel Co.,

496 F.3d 312, 316 (3d Cir. 2007)). At that point, “the plaintiffs need only establish a prima facie case of personal jurisdiction.” Id. (internal quotations and brackets omitted). “The plaintiff meets this burden and presents a prima facie case for the

exercise of personal jurisdiction by establishing with reasonable particularity sufficient contacts between the defendant and the forum state.” Mellon Bank (East) PSFS, Nat. Ass’n v. Farino, 960 F.2d 1217, 1223 (3d Cir. 1992).

“When a defendant provides affidavits to support a Rule 12(b)(2) motion, the plaintiff may not simply rest on the allegations of the complaint.” 4A Charles Alan Wright & Arthur R. Miller, Procedural Aspects of Personal Jurisdiction, Fed. Prac.

& Proc. § 1067.6 (4th ed. 2019) (“Wright & Miller”). Instead, the plaintiff must carry its burden by presenting admissible evidence. Estate of Thompson v. Phillips, 741 F. App’x 94, 96 (3d Cir. 2018). The court may evaluate the motion on the papers and documentary evidence alone, in which case the plaintiff “need only establish a

prima facie case of personal jurisdiction and they are entitled to have . . . all factual disputes drawn in their favor.” Id. (internal quotations and brackets omitted); Metcalfe, 566 F.3d at 331 (reversing district court for failing to construe disputed

facts in the plaintiff’s favor). The plaintiff carries this “prima facie” burden if its evidence makes its personal jurisdiction theory “seem[] to be true on first examination, even though it may later be proved to be untrue.” BLACK’S LAW DICTIONARY 1441 (11th ed. 2019). But the plaintiff ultimately bears the burden of

proving “by a preponderance of the evidence, facts sufficient to establish personal jurisdiction.” Carteret Sav. Bank, FA v. Shushan, 954 F.2d 141, 146 (3d Cir. 1992). Thus, “[i]f the existence of jurisdiction turns on disputed factual questions the court

may resolve the challenge on the basis of a separate evidentiary hearing, or may defer ruling pending receipt at trial of evidence relevant to the jurisdictional question.” Combs v. Bakker, 886 F.2d 673, 676 (4th Cir. 1989); accord Metcalfe,

566 F.3d at 336 (explaining the personal jurisdiction process similarly). The choice of how the court resolves a factual dispute is ultimately a “discretionary” one. Wright & Miller, supra, at § 1067.6.

Courts in the Third Circuit “ordinarily allow” limited jurisdictional discovery, as long as the plaintiff’s personal jurisdiction claim “is not clearly frivolous.” Metcalfe, 566 F.3d at 336; accord Shuker v. Smith & Nephew, PLC, 885 F.3d 760, 781 n.20 (3d Cir. 2018) (jurisdictional discovery must be limited). “Furthermore,

we have found jurisdictional discovery particularly appropriate where the defendant is a corporation.” Metcalfe, 566 F.3d at 336.

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