Four B Corp. v. Ueno Fine Chemicals Industry, Ltd.

241 F. Supp. 2d 1258, 2003 U.S. Dist. LEXIS 434, 2003 WL 105256
CourtDistrict Court, D. Kansas
DecidedJanuary 8, 2003
DocketCivil Action 01-2394-CM
StatusPublished
Cited by4 cases

This text of 241 F. Supp. 2d 1258 (Four B Corp. v. Ueno Fine Chemicals Industry, Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Four B Corp. v. Ueno Fine Chemicals Industry, Ltd., 241 F. Supp. 2d 1258, 2003 U.S. Dist. LEXIS 434, 2003 WL 105256 (D. Kan. 2003).

Opinion

MEMORANDUM AND ORDER

MURGUIA, District Judge.

This purported class action arises out of an alleged international conspiracy to fix the prices of sorbates, including potassium sórbate and sorbic acid, which are chemical preservatives used in food products. Plaintiffs are “indirect purchasers” of sor-bates, who allegedly purchased products containing sorbates that were manufactured and sold by defendants. Plaintiffs allege that defendants engaged in the manufacture and sale of sorbates throughout the world and specifically in Kansas. Plaintiffs further allege that defendants’ conspiracy to control the prices of sorbates affected over $1 billion in U.S. commerce and that they sustained damages due to defendants’ actions. Plaintiffs contend that defendants’ actions in fixing the prices of sorbates was in violation of Kansas antitrust law, Kan. Stat. Ann. § 50-101, et seq.

Pending before the court are defendants Heno Fine Chemicals Industry (USA), *1260 Inc., Ueno Fine Chemicals Industry, Ltd., and Chisso Corporation’s Motions to Dismiss for Lack of Personal Jurisdiction (Docs. 105, 107 & 109). All moving defendants (referenced collectively herein as “defendants”) ask the court to dismiss them from the action based upon a finding that the exercise of personal jurisdiction over them is improper. As set forth herein, defendants’ motions are granted.

• Motion to Dismiss for Lack of Personal Jurisdiction Under Fed. R.Civ.P. 12(b)(2)

Plaintiffs bear the burden to establish personal jurisdiction over defendants. Fed. Deposit Ins. Corp. v. Oaklawn Apartments, 959 F.2d 170, 174 (10th Cir.1992). In order to demonstrate personal jurisdiction sufficient to defeat a motion to dismiss, plaintiffs need only make a prima facie showing that jurisdiction exists. 1 Ten Mile Indus. Park v. W. Plains Serv. Corp., 810 F.2d 1518, 1524 (10th Cir.1987). In ascertaining the facts necessary to establish jurisdiction, the court must accept as true the allegations set forth in the complaint to the extent they are uncontro-verted by the defendants’ affidavits. Id. However, plaintiffs have the “duty to support jurisdictional allegations in a complaint by competent proof of the supporting facts if the jurisdictional allegations are challenged by an appropriate pleading.” Pytlik v. Prof'l Res., Ltd., 887 F.2d 1371, 1376 (10th Cir.1989). The plaintiffs’ complaint and any affidavits submitted are to be construed, and any doubts are to be resolved, in the light most favorable to the plaintiffs. Fed. Deposit, 959 F.2d at 174.

Whether this federal court has personal jurisdiction over the moving nonresident defendants in this diversity action is determined by the law of Kansas, as it represents “the law of the forum state.” Yarbrough v. Elmer Bunker & Assocs., 669 F.2d 614, 616 (10th Cir.1982); see also Fed.R.Civ.P. 4(e). In analyzing a motion to dismiss for lack of personal jurisdiction under Rule 12(b)(2), the court applies a two-part test. First, it determines if defendants’ conduct falls within one of the provisions of the Kansas long-arm statute. Second, it determines whether defendants had sufficient minimum contacts with Kansas to satisfy the constitutional guarantee of due process. See Equifax Servs., Inc. v. Hitz, 905 F.2d 1355, 1357 (10th Cir.1990). The court now applies these tests to determine whether plaintiffs have met their burden to make a prima facie showing of this court’s personal jurisdiction over each of the moving defendants.

• Defendant Ueno Fine Chemicals Industry (USA), Inc.’s Motion (Doc. 105)

Plaintiffs contend that the exercise of jurisdiction over defendants is appropriate under subsections (b)(1), (b)(2), and (b)(7) of the Kansas long-arm statute. Kan. Stat. Ann. § 60 308. Moreover, plaintiffs contend that the exercise of jurisdiction over defendants comports with due process principles. Defendant Ueno Fine Chemicals Industry (USA), Inc. (referenced as “Ueno USA”) asserts that it is not subject to personal jurisdiction in this court under either the “transacting business” or the “product liability” provisions of the Kansas long-arm statute. In addition, defendant Ueno USA asserts that the exercise of jurisdiction over it would violate federal due process concepts because *1261 it has not “purposefully directed” activities toward Kansas and further that such exercise of jurisdiction would violate traditional notions of fair play and substantial justice.

• Kansas Long-Arm Statute

• Section 60—308(b)(1)

Defendant Ueno USA contends that it has not “purposefully” done any business in Kansas or directed any activity toward Kansas. In addition, defendant Ueno USA contends that plaintiffs’ claims do not and cannot arise from any act or transaction by Ueno USA in Kansas.

Under the Kansas long-arm statute, a non-resident submits to the jurisdiction of the State of Kansas as to any cause of action arising from the “[transaction of any business” within Kansas. Kan. Stat. Ann. § 60—308(b)(1).

“Business” is transacted within the state when an individual is within or enters this state in person or by agent and, through dealing with another within the state, effectuates or attempts to effectuate a purpose to improve his economic conditions and satisfy his desires. The transaction of business exists when the nonresident purposefully does some act or consummates some transaction in the forum state.

Volt Delta Res., Inc. v. Devine, 241 Kan. 775, 778, 740 P.2d 1089, 1092 (1987). “The transaction of business exists when the nonresident purposefully does some act or consummates some transaction in the forum state.” Anderson v. Heartland Oil & Gas, Inc., 249 Kan. 458, 467-68, 819 P.2d 1192, 1199 (1991). For jurisdiction to exist under subsection (b)(1) of § 60-308, there must be a nexus between the transaction of business and the alleged claim. Kluin v. Am. Suzuki Motor Corp., 56 P.3d 829, 835 (2002).

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Bluebook (online)
241 F. Supp. 2d 1258, 2003 U.S. Dist. LEXIS 434, 2003 WL 105256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/four-b-corp-v-ueno-fine-chemicals-industry-ltd-ksd-2003.