Eckelberger v. LG Chem America Inc.

CourtDistrict Court, S.D. Illinois
DecidedFebruary 10, 2023
Docket3:21-cv-00906
StatusUnknown

This text of Eckelberger v. LG Chem America Inc. (Eckelberger v. LG Chem America Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eckelberger v. LG Chem America Inc., (S.D. Ill. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ILLINOIS JORDAN ECKELBERGER, Plaintiff, v. Case No. 21-CV-906-NJR LG CHEM, LTD., and LG CHEM AMERICA, INC,, Defendants.

MEMORANDUM AND ORDER ROSENSTENGEL, Chief Judge: This matter is before the Court on a motion to dismiss filed by Defendant LG Chem America, Inc. (“LGCAI”). (Doc. 26). LGCAI seeks to dismiss this case for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2). For the reasons set forth below, the motion is denied. BACKGROUND Eckelberger alleges that “a defective lithium-ion battery in an e-cigarette device suddenly and without warning exploded in his hand.” (Doc. 1-1, p. 2). According to Eckelberger, the battery “that exploded and injured [him] was manufactured, marketed, exported, sold, and distributed by Defendant LG Chem. Ltd. (hereinafter ‘LGC’) and its wholly owned subsidiary Defendant LG Chem America, Inc. (hereinafter ‘Defendant LGCAI’).” (Id. at p. 3). The complaint also includes the following allegations: e [Defendants] were at all times relevant, in the business of designing, testing, manufacturing, advertising, distributing and/or selling

Page 1 of 17

batteries including The Battery at issue, for use in electronic cigarettes throughout the world, including Illinois.

e [T]hrough [their] actions and those of any affiliated/ parent/subsidiary companies and agents, does and did at all times relevant conduct substantial business in Illinois by purposefully causing its products, including The Battery at issue, to be marketed, distributed, sold and used within Illinois.

e The Battery that exploded and injured Plaintiff was purchase[d] in [St. Clair] County via the internet and shipped to [St. Clair] County from an individual owner on Ebay prior to the events giving rise to this action.

e [Defendants] manufacture, sell, design, advertise, distribute and supply e-cigarette devises and accessories, including batteries, and specifically The Battery at issue here.

e Defendants were aware at all times relevant to his matter that these e- cigarette devices require a large amount of power to operate and typically use a lithium-ion battery. A typical user will keep “back-up” batteries at the ready since the devices will typically use at least two fully charged batteries during a full day of use. These “back-up” batteries are usually placed in a bag, purse or pants pocket when not in use.

e The Battery was an 18650 3000 mAh High Drain Rechargeable Battery. e Plaintiff relied on literature, advertisements, promotional packaging, and statements of agents of the Defendants in order to select The Battery at issue [ ] for his personal use. (Id. at pp. 3-5). Eckelberger brings the following claims: (1) Strict Liability as to LG Chem, Ltd. (“LGC”); (2) Negligence as to LGC; (3) Breach of Implied Warranty of Merchantability as to LGC; (4) Strict Liability as to LGCAJ; (5) Negligence at to LGCAI; and (6) Breach of Implied Warranty of Merchantability as to LGCAI (Id. at pp. 2-18).

Page 2 of 17

LGCAI timely removed the action from state court and filed a Motion to Dismiss under Federal Rule of Civil Procedure 12(b)(2). (Docs. 1, 26).! In response, Eckelberger moved for jurisdictional discovery because “LGCAI [ ] asserted various factual allegations surrounding the defective battery in this case and its contacts as a corporate entity with the State of Illinois, including an affidavit of its representative, HyunSoo Kim, which contains numerous factual assertions in support of its motion.” (Doc. 8, pp. 1-2). The Court granted Eckelberger’s motion allowing jurisdictional discovery. (Docs. 9, 25). LGCAI’s Amended Answers to Plaintiff's First Jurisdictional Interrogatories assert the following: e If the 18650 cell identified in Plaintiff’s Complaint is, in fact, an LG-brand 18650 lithium-ion cell, the cell could not have been manufactured by LGCAI, as LGCAI does not have any manufacturing facilities and does not manufacture any products; e LGCAI does not distribute, advertise, or sell 18650 lithium-ion battery cells for use by individual customers as standalone, replaceable batteries in Illinois or anywhere else;

e LGCAIT has never advertised, distributed, or sold any 18650 lithium-ion battery cells to anyone for the purpose of resale to consumers as standalone, replaceable batteries in Illinois or anywhere else.

e LGCAI never authorized anyone to advertise, distribute, or sell LG 18650 lithium-ion cells for use by individual consumers as standalone, replaceable batteries in e-cigarette devices or for any other purpose; and

1 The Court has subject matter jurisdiction over this action on the basis of diversity of citizenship. The parties are minimally diverse, as Eckelberger is a citizen of Illinois; LGCAI is a Delaware corporation with its principal place of business in Georgia; and LGC is a South Korean company with its headquarters and principal place of business in South Korea. (Doc. 1, p. 2). The amount of controversy exceeds $75,000.00, exclusive of interest and costs. (Id.). LGC has not been served.

Page 3 of 17

e LGCAI does not manufacture LG 18650 lithium-ion cells. (Doc. 28-2, pp. 5-8) (emphasis added). However, Eckelberger’s Interrogatory 7 asks the following: Does Defendant LGCAI now or in the five years preceding the July 10, 2019 incident manufacture, distribute, supply, market, service, and/or sell lithium-ion batteries in the State of Illinois? If yes, name any such manufacturer(s), distributors(s), supplier(s), and or third-party seller(s) in which Defendant LGCAI does business with in regards to lithium-ion batteries in Illinois. (Doc. 28-2, p. 7). In response, LGCAI answered: LGCAI objects to this interrogatory as “lithium ion batteries” is vague and unduly burdensome. LGCAI further objects that this interrogatory purports to seek information not relevant to the issue of jurisdiction, including information related to products other than the incident battery cell model at issue, and information that is outside of any relevant time period in relation to the date of the incident that is the subject of Plaintiff s lawsuit. LGCAI objects to this interrogatory on the grounds that it seeks confidential proprietary and/or trade secret information for which there is no legitimate need, and the disclosure of which will cause LGCAI competitive harm and pecuniary loss. Subject to and without waiving these objections, and subject to the stipulated protective order entered October 14, 2021, and responding only as to 18650 lithium-ion battery cells sold to customers in Illinois between July 10,2014 and July 10,2019, LGCAI responds as follows: B2B Networks, Inc. LGCAI did not sell any such battery cells to any entities in the e-cigarette industry, nor did LGCAI intend for the 18650 lithium-ion battery cells to be used as stand-alone, removable, rechargeable, power sources for e-cigarettes and/or vape devices. (id.) (emphasis added). Thus, jurisdictional discovery revealed that LGCAI sold thousands of 18650 lithium-ion battery cells to B2B Networks, Inc. in Illinois between July 2014 and May 2016. LEGAL STANDARD When personal jurisdiction is challenged under Federal Rule of Civil Procedure Page 4 of 17

12(b)(2), the plaintiff bears the burden of establishing personal jurisdiction over a defendant. Matlin v. Spin Master Corp., 921 F.3d 701, 705 (7th Cir. 2019); Purdue Research

Found. v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Tamburo v. Dworkin
601 F.3d 693 (Seventh Circuit, 2010)
Hanson v. Denckla
357 U.S. 235 (Supreme Court, 1958)
World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
uBID, Inc. v. GoDaddy Group, Inc.
623 F.3d 421 (Seventh Circuit, 2010)
Hyatt International Corp. v. Gerardo Coco
302 F.3d 707 (Seventh Circuit, 2002)
Robert Felland v. Patrick Clifton
682 F.3d 665 (Seventh Circuit, 2012)
Associated Press v. United States
326 U.S. 1 (Supreme Court, 1945)
DiCosolo v. Janssen Pharmaceuticals, Inc.
2011 IL App (1st) 093562 (Appellate Court of Illinois, 2011)
Daimler AG v. Bauman
134 S. Ct. 746 (Supreme Court, 2014)
Sherwin Brook v. J. McCormley
873 F.3d 549 (Seventh Circuit, 2017)
Tai Matlin v. Spin Master Corp.
921 F.3d 701 (Seventh Circuit, 2019)
Charles Curry v. Revolution Laboratories, LLC
949 F.3d 385 (Seventh Circuit, 2020)
Calvin Horne v. Electric Eel Manufacturing Com
987 F.3d 704 (Seventh Circuit, 2021)
Ford Motor Co. v. Montana Eighth Judicial Dist.
592 U.S. 351 (Supreme Court, 2021)
Dianne Donaldson v. Johnson & Johnson
37 F.4th 400 (Seventh Circuit, 2022)

Cite This Page — Counsel Stack

Bluebook (online)
Eckelberger v. LG Chem America Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/eckelberger-v-lg-chem-america-inc-ilsd-2023.