Bullock v. Otto Imports, LLC

District Court, W.D. Kentucky·Decided May 12, 2020·No. 4:19-cv-00149·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY OWENSBORO DIVISION CIVIL ACTION NO. 4:19-CV-00149-JHM-HBB

CHAD BULLOCK PLAINTIFF

VS.

OTTO IMPORTS, et al. DEFENDANTS

MEMORANDUM OPINION AND ORDER Before the Court is Defendant LG Chem America, Inc.’s (“LG”) Motion for a Protective Order from Plaintiff’s Jurisdictional Discovery Requests (DN 31). Bullock has filed a response (DN 34). LG replied (DN 44). Bullock has also filed a competing Motion to Compel Responses to his discovery requests (DN 42). The motion does not raise new arguments, but requests “affirmative relief” in the event the Court denies LG’s Motion for a Protective Order. LG Chem has filed a response (DN 49). Bullock did not reply. The motions are now ripe and ready for determination.1 Background LG filed a motion to dismiss for lack of personal jurisdiction (DN 6). The Court denied the motion without prejudice (DN 12). The Court found that Bullock had not “provided enough evidence to prove personal jurisdiction” over LG. The Court ordered the parties to engage in discovery limited to the question of personal jurisdiction.

1 This action has been referred to the undersigned for determination of non-dispositive matters pursuant to 28 U.S.C. § 636(b)(1)(A). Bullock served LG with 163 discovery requests. LG has objected to most of them arguing, “the vast majority… make no pretense whatsoever of complying with the Court’s limitations.” (DN 31 PageID # 366). LG argues the requests improperly seek information related to the merits of the case, information regarding LG’s contacts with the United States generally (as opposed to Kentucky), information from entities other than LG, information that post-dates the incident, and

information concerning products other than the specific battery at issue. In response, Bullock agreed to withdraw or limit a few discovery requests, but maintains that LG should be required to answer most of his served requests (DN 34). He claims that LG has, to date, not produced a single record. He asks this Court to compel LG to answer all discovery requests except for those he has agreed to withdraw (DN 42). Discussion Federal courts generally follow state law in determining the bounds of their jurisdiction over persons. See Fed. R. Civ. P. 4(k)(1)(A). Kentucky’s long-arm statute allows the exercise of personal jurisdiction over defendants who, among other things, cause “tortious injury in this

Commonwealth by an act or omission outside this Commonwealth if he regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered in this Commonwealth, provided that the tortious injury occurring in this Commonwealth arises out of the doing or soliciting of business or a persistent course of conduct or derivation of substantial revenue within the Commonwealth.” KRS § 454.210(2)(a)(4). There are two kinds of personal jurisdiction that a court may exercise over a foreign defendant— “general jurisdiction” and “specific jurisdiction.” General jurisdiction exists if the defendant’s contacts with the forum are “so substantial and of such a nature as to justify suit against it on causes of action arising from dealings entirely distinct from those activities.” Int'l Shoe Co. v. State of Wash., Office of Unemployment Comp. & Placement, 326 U.S. 310, 318 (1945). Specific jurisdiction, on the other hand, exists where the litigation is derived from obligations that “arise out of or are connected with the [company’s] activities within the state.” Id. at 319. At issue in this case is whether LG’s activities within the Commonwealth of Kentucky subject it to specific

jurisdiction in this Court. The Sixth Circuit has adopted the “stream of commerce plus” test to determine if personal jurisdiction exists over a defendant. Bridgeport Music, Inc. v. Still N The Water Pub., 327 F.3d 472 (6th Cir. 2003). Under this test, “the placement of a product into the stream of commerce, without more, is not an act of the defendant purposefully directed toward the forum state.” Bridgeport Music, 327 F.3d 472 at 479 (quoting Asahi Metal Industry Company, Ltd. v. Superior Court, 480 U.S. at 112 (1987)). “The ‘substantial connection’ between the defendant and the forum State necessary for a finding of minimum contacts must come about by an action of the defendant purposefully directed toward the forum State.” Asahi, 480 U.S. at 112 (1987) (internal

citations omitted). Such actions may include, but are not limited to, advertising in the forum state, establishing channels for providing regular advice to customers in the forum State, or marketing a product through a distributor who has agreed to serve as the sales agent in the forum State.” Id. Factors Courts should consider include, the defendants direction or control over the flow of the product into the forum; the quantity of the defendant’s particular product regularly flowing into the forum; and the distinctive features of the forum that connect it with the product in question. “One Media IP Ltd. V. S.A.A.R. SrL, 122 F.Supp.3d 705, 717 (M.D. Tenn. 2015). Importantly, a plaintiff can demonstrate contacts with the forum state by establishing the defendant made a “deliberate decision” to distribute its product throughout all 50 states. Tobin v. Astra Pharm. Prod., Inc., 993 F.2d 528 (6th Cir. 1993). In Tobin, Duphar, a Dutch pharmaceutical company, “sought out and negotiated” a licensing agreement with co-defendant, Astra Pharmaceuticals. Under that agreement, Astra was to distribute Duphar’s drug throughout the United States. 993 F.2d 528 at 543. The Court reasoned Duphar’s negotiated contract with Astra created “something more than mere awareness that the stream of commerce will sweep the product

into the forum state.” Id. (citing Asahi, 480 U.S. at 111). Duphar made a deliberate decision to market its product in all 50 states, including Kentucky, the forum state. Id. The Sixth Circuit reaffirmed this principle in Bridgeport Music v. Still N The Water, 327 F.3d 472 (6th Cir. 2003), and officially adopted the stream of commerce plus test first articulated by Justice O’Connor. The Court found Defendant DM had purposefully availed itself of the Tennessee market because it entered into a nationwide distribution contract. The contract sought distribution throughout “the United States, its territories, commonwealth, possessions…” Bridgeport, 327 F.2d at 483. The “primary emphasis” of its decision was DM’s deliberate decision to distribute its product in all 50 states. The Court found, as in Tobin, DM did nothing in particular

to target Tennessee distinguishable from any other state in the union. Nevertheless, because the defendant deliberately targeted all 50 states, a “prima facie purposeful availment finding” was warranted. Id. at 484. See also, Parker v. Winwood, 938 F.3d 833, 841 (6th Cir. 2019).

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