Daimler Trucks North America LLC v. Super. Ct.

CourtCalifornia Court of Appeal
DecidedJuly 7, 2022
DocketB316199
StatusPublished

This text of Daimler Trucks North America LLC v. Super. Ct. (Daimler Trucks North America LLC v. Super. Ct.) 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
Daimler Trucks North America LLC v. Super. Ct., (Cal. Ct. App. 2022).

Opinion

Filed 7/7/22 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION FIVE

DAIMLER TRUCKS NORTH B316199 AMERICA LLC, (Los Angeles County Petitioner, Super. Ct. No. 21STCV07830)

v.

THE SUPERIOR COURT OF LOS ANGELES COUNTY,

Respondent;

YONGQUAN HU et al.,

Real Parties in Interest.

ORIGINAL PROCEEDINGS; petition for writ of mandate. Curtis A. Kin, Judge. Petition denied. Nelson Mullins Riley & Scarborough, Philip R. Cosgrove and Ryan E. Cosgrove, for Petitioner. No appearance for Respondent. Strassburg, Gilmore & Wei, William R. Gilmore, for Real Parties in Interest. ____________________________ INTRODUCTION Petitioner Daimler Trucks North America LLC (Daimler) is a defendant in a lawsuit brought by real parties in interest Yongquan Hu and Jinghua Ren (collectively, Hu). Hu seeks to recover for injuries stemming from a truck accident that occurred in Oklahoma.1 Daimler filed a motion to quash for lack of personal jurisdiction, which the trial court denied. In this petition for a writ of mandate, Daimler argues the motion to quash should have been granted because the operative facts do not establish Daimler is subject to jurisdiction in California. Daimler additionally challenges the trial court’s rulings on its evidentiary objections. We deny the petition for writ of mandate. FACTUAL AND PROCEDURAL BACKGROUND 1. The Long Distance Tractor-Trailer Accident Sometime prior to March 21, 2020, Mr. Hu and Ran Gao, both California residents and long-distance tractor-trailer drivers, made their way from California to the east coast. On that date, they were on the return trip to California, transporting goods from New Jersey. While Gao was driving on Interstate 40 in Oklahoma City, Oklahoma, the tractor-trailer was involved in a single vehicle accident. Mr. Hu was seriously injured.2 The 2016 Freightliner Cascadia truck in which the two were riding was originally sold by Daimler. Per Daimler’s person most knowledgeable, Cascadias are intended to be used for journeys across multiple state lines. Daimler’s website states the Cascadia is an “on-highway truck” with an interior designed for

1 Ren is Mr. Hu’s wife and brought suit for loss of consortium. 2 Mr. Gao is not a party to this appeal.

2 drivers who may spend more than 100 hours per week in the cab. In 2015, Daimler sold the Freightliner in which Mr. Hu was riding to Werner Enterprises and shipped the truck to Georgia. Werner Enterprises maintains a national truck fleet based in Nebraska. It has a hub in Fontana, California, where it sells used trucks. In 2019, Mr. Hu’s employer, a California corporation, bought the subject Freightliner Cascadia from Werner Enterprises’ Fontana hub. 2. Daimler’s Freightliner Business Daimler is a Delaware limited liability company with its principal place of business in Portland, Oregon. Daimler owns the Freightliner brand. Although Daimler does not manufacture or assemble vehicles in California, it does conduct considerable business in the state. Daimler advertises Freightliner trucks, including the Cascadia specifically, across multiple national and regional media that is also directed to California. Daimler has 32 authorized dealerships in California that sell Freightliners. Customers can order the vehicles at these dealerships; Daimler then assembles the specified vehicles and delivers them to the dealership. Between 4,000 to 5,000 trucks were sold in California each year from 2014 to 2020. Authorized dealerships advertise Freightliner trucks, and Daimler provides the dealerships with information for display advertising purposes. Daimler also sells and ships truck parts to 27 of these authorized California dealerships. The dealerships offer a variety of specialized maintenance and repair services. Twenty-three of the authorized California dealerships service Freightliner trucks. There are 11 truck “Elite Support” locations in California. These service centers offer customers the services of mechanics who receive

3 “continual training from the experts at Freightliner” and must meet specific criteria. Nine “ServicePoint” locations in California offer 24/7 service, repairs, parts, inspections, and trailer maintenance. Seven “Body Shop” locations in California provide Freightliner crash repair and other repair services not often available in a typical dealership. Hundreds of these service shops are located in the United States. Daimler also provides telephone and online support that is available in California—its website claims that “no matter where you are, we’ve got you covered.” This support includes a 24/7 helpline that provides technological support, roadside assistance, towing, and referral to service locations for Freightliners. The “Detroit Connect” service can monitor Freightliner trucks’ driving performance. One feature of this service is that it transmits fault codes to Daimler. Daimler is then able to notify the truck’s owner of the problem and refer them to an authorized service location for service. 3. Lawsuit against Daimler and the Motion to Quash In March 2021, Hu filed suit against Daimler and other (non-appealing) defendants, alleging products liability, negligence and loss of consortium claims against the company. Daimler filed a motion to quash and asserted lack of personal jurisdiction. Daimler argued it was not subject to specific jurisdiction in California, primarily because the causes of action did not arise out of or relate to its forum-related activities.3 Daimler did not engage in any activity dealing with the subject

3 Daimler also argued below that it was not subject to suit in California based on general jurisdiction. As will become apparent, we decide the case based on specific jurisdiction. Accordingly, we do not address general jurisdiction.

4 Freightliner Cascadia that took place in, or was directed at, California. According to Daimler, no activity in California caused the injuries. Hu opposed the motion. He argued Daimler was subject to specific jurisdiction because it had purposefully availed itself of the privilege of doing business in California by marketing, selling, and servicing within the state the same model of Freightliner truck involved in the accident. The Cascadia was specifically designed for long hauls, and “was outfitted with a specially designed sleeping compartment for this purpose.” And because Daimler had “systematically served a market in California for the very vehicle that the Plaintiffs allege was defective and injured them,” Hu’s claims related to Daimler’s contacts with California. Other ties to California were that Mr. Hu and his wife are California residents, Mr. Hu was working for a California company and driving to California at the time of the accident, the subject vehicle was purchased in California, and the bulk of the damages for pain and suffering and medical expenses occurred and would continue to occur in California. Hu continued that, by marketing, selling, servicing and supporting their Freightliner trucks in California, Daimler had notice it could be subject to suit there. The fact the particular truck involved in this litigation came to California through an intermediary did not make jurisdiction unfair, especially because Daimler certainly understood that some of its trucks likely would be resold in California. That the injury occurred out of state did not defeat jurisdiction either. Daimler’s extensive business operations in this state supported a finding of personal jurisdiction, as did the fact that it knew—and its marketing campaign promoted—that the Freightliner trucks would be used by its owners for cross-

5 country transportation. According to Hu, a necessary incident of Daimler’s business was the risk that its activities in any state could foreseeably cause injury to a person in a distant forum.

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Daimler Trucks North America LLC v. Super. Ct., Counsel Stack Legal Research, https://law.counselstack.com/opinion/daimler-trucks-north-america-llc-v-super-ct-calctapp-2022.