Crossfit, Inc. v. Matrix Solutions, LLC

District Court, S.D. California·Decided November 4, 2020·No. 3:19-cv-00887·Unknown

Opinion

CrossFit, Inc., a Delaware corporation, Case No.: 19-CV-00887-CAB-BLM

Plaintiff, ORDER GRANTING MOTION TO v. DISMISS FOR LACK OF PERSONAL JURISDICTION Matrix Solutions, LLC d/b/a Progenex, a

Wyoming limited liability company, et al., [Doc. Nos. 64, 68] Defendants.

This matter is before the Court on a motion to dismiss for lack of personal jurisdiction filed by Defendants Fitness Trade sp. z o.o. and Fitness Trade sp. z o.o. sp. k. (together, the “Fitness Trade Defendants”). The motion is fully briefed, and the Court deems it suitable for submission without oral argument. As discussed below, the motion is granted, and the claims against the Fitness Trade Defendants are dismissed for lack of personal jurisdiction. I. Background On May 10, 2019, Plaintiff CrossFit, Inc. (“CrossFit”) filed this lawsuit against Defendants Matrix Solutions, LLC (“Matrix”); Progenex Holdings, LLC (“Holdings”); the Fitness Trade Defendants, which are a Polish limited liability company and a Polish limited partnership, respectively; and ABC Corp. [Doc. No. 1.] The original complaint asserts claims for breach of contract, breach of the covenant of good faith and fair dealing, trademark infringement, unfair competition, “passing off” under United Kingdom common law, and unjust enrichment. [Doc. No. 1.] On December 2, 2019, CrossFit filed the operative First Amended Complaint (“FAC”), adding Defendants Michal Slisinski, an individual (“Slisinski”); The Conclave, LLC (“Conclave”); and Dagobah, LLC (“Dagobah”). [Doc. No. 28.] The FAC made few unique factual allegations against these new defendants. Instead, the FAC simply defined all of the defendants together as “Progenex” based on a conclusory allegation that they were acting “as a partnership, a joint venture, and/or alter egos of one another.” [Id. at ¶ 14.] Counsel for Matrix and Holdings subsequently withdrew without a replacement [Doc. No. 32], and defendant Conclave failed to respond to the FAC, resulting in the eventual entry of default judgment against defendants Matrix, Holdings, and Conclave. [Doc. No. 54.] On February 28, 2020, the Court granted Dagobah’s motion to dismiss for lack of personal jurisdiction. [Doc. No. 48.] The Fitness Trade Defendants and Mr. Slisinski are now the only remaining defendants in this matter. After receiving several lengthy extensions from the Court, CrossFit contends that it finally served the summons and FAC on the Fitness Trade Defendants via the Hague Convention on June 29, 2020. [Doc. No. 63.] CrossFit has yet to serve Mr. Slisinski. On September 17, 2020, the Fitness Trade Defendants filed the present motion to dismiss for lack of personal jurisdiction, which is now fully briefed and ripe for resolution. [Doc. No. 64.] II. Legal Standards Federal Rule of Civil Procedure 12(b)(2) allows a district court to dismiss an action for lack of personal jurisdiction. “Where defendants move to dismiss a complaint for lack

1 According to the Complaint, Fitness Trade sp. z o.o. is a Polish limited liability company, and Fitness of personal jurisdiction, plaintiffs bear the burden of demonstrating that jurisdiction is appropriate.” Dole Foods Co. Inc. v. Watts, 303 F. 3d 1104, 1108 (9th Cir. 2002). “The court may consider evidence presented in affidavits to assist in its determination and may order discovery on the jurisdictional issues.” Doe v. Unocal Corp., 248 F.3d 915, 922 (9th Cir. 2011) (citing Data Disc, Inc. v. Sys. Tech. Ass’n, Inc., 557 F.2d 1280 (9th Cir. 1977)). A court’s power to exercise personal jurisdiction over a nonresident defendant is limited by two independent constraints, namely the applicable state personal jurisdiction statute and the constitutional principles of due process. Sher v. Johnson, 911 F.2d 1357, 1361 (9th Cir. 1990); see also In re W. States Wholesale Natural Gas Antitrust Litig., 715 F.3d 716, 741 (9th Cir. 2013) (“[p]ersonal jurisdiction over a nonresident defendant is proper if permitted by a state’s long-arm statute and if the exercise of that jurisdiction does not violate federal due process.”). “Under California’s long-arm statute, California state courts may exercise personal jurisdiction ‘on any basis not inconsistent with the Constitution of this state or of the United States.’” Daimler AG v. Bauman, 571 U.S. 117, 125 (2014) (quoting Cal. Civ. Proc. Code Ann. § 410.10 (West 2004)). Thus, “the jurisdictional analyses under state law and federal due process are the same.” Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800-801 (9th Cir. 2004)). Under the Due Process Clause of the Fourteenth Amendment, to exercise personal jurisdiction over an out-of-state defendant, the defendant must have “certain minimum contacts with [the State] such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.” Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 923 (2011) (quoting Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945) (internal quotations omitted)). This minimum contacts jurisdiction may be either “general or all-purpose jurisdiction,” or “specific or case-linked jurisdiction.” Id. at 919 (citing Helicopteros Nacionales de Colombia S.A. v. Hall, 466 U.S. 408, 414 (1984)). “The strength of contacts required depends on which of the two categories of personal jurisdiction a litigant invokes: specific jurisdiction or general jurisdiction.” Ranza v. Nike, Inc., 793 F.3d 1059, 1068 (9th Cir. 2015). Here, because the motion to dismiss for lack of jurisdiction is based on affidavits and documents, CrossFit is required to make a prima facie showing that the Fitness Trade Defendants are subject to personal jurisdiction in California. See Pebble Beach Co. v. Caddy, 453 F.3d 1151, 1154 (9th Cir. 2006). The uncontroverted allegations in the complaint must be taken as true and factual conflicts must be resolved in CrossFit’s favor. Mavrix Photo, Inc. v. Brand Techs., Inc., 647 F.3d 1218, 1223 (9th Cir. 2011). In order to survive the motion to dismiss, CrossFit must show that the Fitness Trade Defendants have minimum contacts with the forum state as will allow exercise of personal jurisdiction over it, but “bare formulaic accusations” that a defendant maintains sufficient contacts with California are inadequate. Schwarzenegger, 374 F.3d at 800. III. Discussion A. General Jurisdiction “A court with general jurisdiction may hear any claim against that defendant, even if all the incidents underlying the claim occurred in a different State.” Bristol-Myers Squibb Co. v. Superior Court of California, 137 S. Ct. 1773, 1780 (2017) (emphasis in original) (citing Goodyear, 564 U.S. at 919). “But ‘only a limited set of affiliations with a forum will render a defendant amenable to’ general jurisdiction in that State.” Id. (quoting Daimler, 571 U.S. at 137). General jurisdiction over a corporate defendant is warranted when the defendant’s “continuous corporate operations within a state [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, 326 U.S. at 318. The “paradigm forum” for exercis

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