Dodd v. Textron Inc

District Court, W.D. Washington·Decided February 9, 2022·No. 3:21-cv-05177·Unknown

Opinion

UNITED STATES DISTRICT COURT AT TACOMA DAVID DODD and PAULA DODD, CASE NO. 3:21-cv-5177 BHS-TLF Plaintiffs, ORDER ADOPTING IN PART v. AND REJECTING IN PART REPORT AND TEXTRON, INC., et al., RECOMMENDATION Defendants. This matter comes before the Court on the Report and Recommendation (“R&R”) of the Honorable Theresa L. Fricke, United States Magistrate Judge, Dkt. 22, and Defendants’ objections to the R&R, Dkt. 23. In March 2019, Plaintiffs David and Paula Dodd were driving a side-by-side off road vehicle, the Wildcat XX, on a sand dune in Winchester Bay, Oregon when it stalled out and rolled down the dune. Dkt. 1, ¶¶ 3.3, 3.5. During the accident, Paula Dodd’s seatbelt failed, and her door ripped off. Id. ¶ 3.5. As a result, she suffered a severe laceration to her left hand, displaced proximal phalanx fractures to her left hand, a displaced fracture of the right humerus, and a displaced tuberosity humeral fracture. Id. Defendant Textron, Inc. is a multi-industry company incorporated in Delaware with its principal place of business in Rhode Island. Dkt. 8 at 2. Textron describes itself as a “holding company.” Dkt. 8-1, ¶ 3. Defendant Textron Specialized Vehicles, Inc.

(“TSV”) is Textron’s subsidiary. Dkt. 8 at 2. TSV designs and manufactures vehicles and equipment, including off-road vehicles, and it owns Arctic Cat, Inc.—the company that manufactures the Wildcat XX. Dkt. 8-2, ¶¶ 2–3. TSV is also incorporated in Delaware but has its principal place of business in Georgia. Dkt. 8 at 2. TSV does not have any company-owned dealerships in Washington, but it does sell its off-road vehicles through

nine independent, non-exclusive dealerships in the state. Id. The Dodds reside in Deer Park, Washington, which is in Eastern Washington near Spokane and the Idaho border. Dkt. 1, ¶ 1.1; Dkt. 11, ¶ 5. On July 20, 2018, the Dodds purchased a 2018 Wildcat XX from CGM Enterprises, Inc. in Sandpoint, Idaho. Dkt. 11, ¶ 6. The Dodds assert that they only purchased the Wildcat XX after seeing an

advertisement for the vehicle in Washington. Dkt. 1, ¶ 3.4. The Dodds sued Textron and TSV in March 2021, asserting that the companies negligently designed, tested, manufactured, labeled, distributed, marketed, and promoted the Wildcat XX and violated the Washington Products Liability Act (“WPLA”), RCW Ch. 7.72. Id. ¶¶ 4.1, 4.2. They seek damages for past and future medical expenses, costs,

property damage, past and future income loss, permanent disability, emotional injuries, permanent scarring, impaired earning capacity, pain and suffering, loss of enjoyment of life, loss of consortium, and other damages to be proven at trial. Id. ¶ 5.1, 5.2. Textron and TSV moved to dismiss for lack of personal jurisdiction in April 2021, arguing primarily that the companies’ conduct in Washington did not relate to the Dodds’ accident in Oregon. Dkt. 8 at 4–6. They alternatively argued that the complaint should be

dismissed for improper venue. Id. at 6–7. The Dodds argued that Textron and TSV are properly subject to personal jurisdiction in Washington because they regularly conduct business in the state, they are registered in the state, and their advertising of the Wildcat XX in Washington caused the Dodds to purchase the vehicle. Dkt. 10. Judge Fricke issued the instant R&R recommending that this Court deny the

companies’ motion to dismiss. Dkt. 22. Judge Fricke concluded that Textron and TSV have the necessary minimum contacts in Washington and that Washington would be the most convenient and efficient forum. Id. She further concluded that transfer to a different jurisdiction would be inappropriate because Washington has a strong interest in protecting its residents. Id.

Textron objects, arguing that Judge Fricke failed to consider its specific connections to Washington apart from TSV’s own connections to Washington. See Dkt. 23. TSV also objects, arguing that Judge Fricke only analyzed the first and third factors of the specific jurisdiction test, but failed to analyze the relatedness prong. See id. It argues that even if it has minimum contacts with the state of Washington, the Dodds’

claims are not related to and do not arise from those contacts. Id. The Dodds argue that their claims do in fact “arise out of” or “relate to” the companies’ contacts with Washington. Dkt. 25. The Dodds did not address the companies’ argument that Textron should be considered separate from TSV beyond reiterating that TSV is Textron’s subsidiary. Id.

A. Legal Standard The district judge must determine de novo any part of the magistrate judge’s disposition to which a party has properly objected. The district judge may accept, reject, or modify the recommended disposition; receive further evidence; or return the matter to the magistrate judge with instructions. Fed. R. Civ. P. 72(b)(3).

B. Personal Jurisdiction Claims against a defendant may be dismissed when a court lacks personal jurisdiction. Fed. R. Civ. P. 12(b)(2). When a defendant seeks dismissal on these grounds, the plaintiff must prove jurisdiction is appropriate. Picot v. Weston, 780 F.3d 1206, 1211 (9th Cir. 2015). To determine whether it has jurisdiction over a defendant, a federal court applies the law of the state in which it sits, as long as that law is consistent with federal due process. Daimler AG v. Bauman, 571 U.S. 117, 126 (2014). Washington grants courts the maximum jurisdictional reach permitted by due process. Easter v. Am. W. Fin., 381 F.3d 948, 960 (9th Cir. 2004). Due process is satisfied when subjecting the entity to the court’s power does not “offend traditional notions of fair play and substantial justice.” Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414 (1984) (quoting Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945)). “[T]raditional notions of fair play and substantial justice” require that a defendant have minimum contacts with the forum state before it may be haled into a court in that forum. Int’l Shoe, 326 U.S. at 316. The extent of those contacts can result in either general or specific personal jurisdiction over the defendant. Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 919 (2011). At issue here is whether this Court may exercise specific jurisdiction over

Textron and TSV. “Although the plaintiff cannot simply rest on the bare allegations of its complaint, uncontroverted allegations in the complaint must be taken as true.” Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004) (internal quotation marks and citations omitted). “Additionally, any evidentiary materials submitted on the motion are

construed in the light most favorable to the plaintiffs and all doubts are resolved in their favor.” Ochoa v. J.B. Martin & Sons Farms, Inc., 287 F.3d 1182, 1187 (9th Cir. 2002) (internal quotation omitted). Specific jurisdiction permits a district court to exercise jurisdiction over a nonresident defendant for conduct that “create[s] a substantial connection with the forum

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