DiscoverOrg Data LLC v. Quantum Market Research Inc

CourtDistrict Court, W.D. Washington
DecidedOctober 31, 2019
Docket3:19-cv-05656
StatusUnknown

This text of DiscoverOrg Data LLC v. Quantum Market Research Inc (DiscoverOrg Data LLC v. Quantum Market Research Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DiscoverOrg Data LLC v. Quantum Market Research Inc, (W.D. Wash. 2019).

Opinion

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5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT TACOMA 7 DISCOVERORG DATA, LLC, CASE NO. C19-5656 BHS 8 Plaintiff, ORDER DENYING 9 v. DEFENDANT’S MOTION TO DISMISS 10 QUANTUM MARKET RESEARCH INC., 11 Defendant. 12

13 This matter comes before the Court on Defendant Quantum Market Research, 14 Inc’s (“Quantum”) motion to dismiss for lack of personal jurisdiction. Dkt. 8. The Court 15 has considered the pleadings filed in support of and in opposition to the motion and the 16 remainder of the file and hereby denies the motion for the reasons stated herein. 17 I. PROCEDURAL AND FACTUAL HISTORY 18 Plaintiff DiscoverOrg Data, LLC (“DiscoverOrg”) provides sales and marketing 19 information for business to business sales. Dkt. 1. DiscoverOrg’s claims stem from its 20 allegation that Quantum “stole access to DiscoverOrg information (about 9,300 records) 21 and used them for its own sales and marketing, without paying DiscoverOrg any 22 1 licensing fees.” Id. DiscoverOrg is a limited liability company with its principal place of 2 business in Vancouver, Washington, and Quantum is a Delaware corporation with its

3 principal place of business in Nebraska. Id. ⁋⁋ 1–2. 4 Relevant to the instant motion, DiscoverOrg’s Corporate Counsel James Henry 5 (“Henry”) declares that starting in July 2017, “Quantum personnel were engaged in sales 6 discussions with DiscoverOrg personnel.” Dkt. 11 at 4 (citing Dkt. 12, ⁋ 4.). These 7 conversations occurred by phone and email and continued through at least November 8 2017. Id. (citing Dkt. 12, ⁋ 4–5). Henry further declares that DiscoverOrg sales personnel

9 frequently disclose DiscoverOrg’s Vancouver, Washington location on sales calls, and 10 that DiscoverOrg emails sent to Quantum included phone numbers with Washington area 11 codes. Id. (citing Dkt. 12, ⁋⁋ 6–7). From October 27, 2017 to November 4, 2017, 12 Quantum used DiscoverOrg’s database with permission through “a one-week trial with 13 access of two user seats.” Id. at 4–5 (citing Dkt. 12, ⁋ 8). Quantum did not purchase a

14 license to access DiscoverOrg’s database after the trial license expired. Id. at 5 (citing 15 Dkt. 12, ⁋ 9). 16 Next, DiscoverOrg Compliance Analyst Jie Smith (“Smith”) declares that three IP 17 addresses linked to Quantum accessed DiscoverOrg’s database without authorization in 18 November 2017. Id. (citing Dkt. 13, ⁋⁋ 5–6). Smith declares that Quantum ran searches,

19 viewed proprietary information, downloaded over 9,300 records, and used these records 20 to sell its products. Id. (citing Dkt. 13, ⁋⁋ 6–7). Whenever Quantum accessed 21 DiscoverOrg’s login page, it “was presented with a link to DiscoverOrg’s End User 22 License Agreement.” Id. (citing Dkt. 13, ⁋ 8). DiscoverOrg’s Director of Customer 1 Support Will Hinrichs declares that the only way Quantum could have accessed the 2 allegedly stolen records was by using the login credentials of a DiscoverOrg licensee, and

3 that “DiscoverOrg’s website also contains multiple notifications that DiscoverOrg is 4 based in Washington.” Id. (citing Dkt. 15, ⁋⁋ 9–10). 5 On July 18, 2019, DiscoverOrg filed a complaint asserting claims for theft of trade 6 secrets, misappropriation of trade secrets, misappropriation, copyright infringement, 7 violation of the federal Computer Fraud and Abuse Act, trespass to chattels, unjust 8 enrichment, intentional interference with contract, and negligence. Dkt. 1. On August 22,

9 2019, Quantum filed the instant motion to dismiss for lack of personal jurisdiction. Dkt. 10 8. On September 9, 2019, DisocverOrg responded. Dkt. 11. On September 13, 2019, 11 Quantum replied. Dkt. 16. On September 16, 2019, DiscoverOrg filed notice of intent to 12 surreply. Dkt. 17. On September 18, 2019 DiscoverOrg surreplied. Dkt. 18. 13 II. DISCUSSION

14 A. Standard on a Motion to Dismiss Under Fed. R. Civ. P. 12(b)(2) 15 To determine whether it has jurisdiction over a defendant, a federal court applies 16 the law of the state in which it sits, as long as that law is consistent with federal due 17 process. Daimler AG v. Bauman, 571 U.S. 117, 126 (2014). Washington allows the 18 maximum jurisdictional reach permitted by due process. Easter v. Am. W. Fin., 381 F.3d

19 948, 960 (9th Cir. 2004). Due process is satisfied when subjecting the entity to the court’s 20 power does not “offend ‘traditional notions of fair play and substantial justice.’” 21 Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414 (1984) (quoting 22 Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945)). “[T]raditional notions of fair 1 play and substantial justice” require that a defendant have minimum contacts with the 2 forum state before it may be haled into a court in that forum. Int’l Shoe, 326 U.S. at 316

3 (1945). The extent of those contacts can result in either general or specific personal 4 jurisdiction over the defendant. Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 5 U.S. 915, 919 (2011). 6 “Although the plaintiff cannot simply rest on the bare allegations of its complaint, 7 uncontroverted allegations in the complaint must be taken as true.” Schwarzenegger v. 8 Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004) (internal quotation marks and

9 citations omitted). “Additionally, any evidentiary materials submitted on the motion are 10 construed in the light most favorable to the plaintiffs and all doubts are resolved in their 11 favor.” See Ochoa v. J.B. Martin & Sons Farms, Inc., 287 F.3d 1182, 1187 (9th Cir. 12 2002). 13 Specific jurisdiction permits a district court to exercise jurisdiction over a

14 nonresident defendant for conduct that “create[s] a substantial connection with the forum 15 State.” Walden v. Fiore, 571 U.S. 277, 284 (2014). A defendant creates a substantial 16 connection in a tort-based action when it purposefully directs its activities at the forum 17 state, the lawsuit arises out of or relates to the defendant’s forum-related activities, and 18 the exercise of jurisdiction is reasonable. Picot v. Weston, 780 F.3d 1206, 1211 (9th Cir.

19 2015) (“Picot”). Purposeful direction constitutes (1) an intentional action, (2) expressly 20 aimed at the forum state, which (3) cause harm “the brunt of which is suffered—and 21 which the defendant knows is likely to be suffered—in the forum state.” Core-Vent Corp. 22 v. Nobel Industries AB, 11 F.3d 1482, 1485–86 (9th Cir. 1993) (citing Calder v. Jones, 1 465 U.S. 783, 788–89 (1984)). In applying this test, the Court must “look[] to the 2 defendant’s contacts with the forum State itself, not the defendant’s contacts with persons

3 who reside there.” Walden v. Fiore, 571 U.S. 277, 285 (2014). “[A]n injury is 4 jurisdictionally relevant only insofar as it shows that the defendant has formed a contact 5 with the forum state.” Id. at 290. However, the Supreme Court also explained in a 6 footnote that Walden “does not present the very different questions whether and how a 7 defendant’s virtual ‘presence’ and conduct translates into ‘contacts’ with a particular 8 State.” Id. at 290 n.9. In applying Walden, the Ninth Circuit found in Picot that contact

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Related

International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
Calder v. Jones
465 U.S. 783 (Supreme Court, 1984)
Helicopteros Nacionales De Colombia, S. A. v. Hall
466 U.S. 408 (Supreme Court, 1984)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Daimler AG v. Bauman
134 S. Ct. 746 (Supreme Court, 2014)
Walden v. Fiore
134 S. Ct. 1115 (Supreme Court, 2014)
Bernard Picot v. Dean Weston
780 F.3d 1206 (Ninth Circuit, 2015)
Ochoa v. J.B. Martin & Sons Farms, Inc.
287 F.3d 1182 (Ninth Circuit, 2002)
Microsoft Corp. v. Communications & Data System Consultants, Inc.
127 F. Supp. 3d 1107 (W.D. Washington, 2015)
Schwarzenegger v. Fred Martin Motor Co.
374 F.3d 797 (Ninth Circuit, 2004)
DHL Supply Chain v. Dex Sys., Inc.
139 S. Ct. 592 (Supreme Court, 2018)

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DiscoverOrg Data LLC v. Quantum Market Research Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/discoverorg-data-llc-v-quantum-market-research-inc-wawd-2019.