Gamez v. Huffy Corporation Incorporated

District Court, D. Arizona·Decided January 9, 2024·No. 4:21-cv-00414·Unknown

Opinion

WO

Ernestina Gamez, No. CV-21-00414-TUC-JCH

Plaintiff, ORDER

v.

Huffy Corporation Incorporated, et al.,

Defendants. In this case, Plaintiff seeks to hold Defendant Huffy1 liable for the death of her father after a bicycle fork on a Huffy Trail Runner bicycle failed unexpectedly. Doc. 1-2 at 14. Huffy, in turn, seeks indemnity and contribution from the alleged manufacturer of the bicycle fork, Third-Party Defendant Tianjin Xuchen Bicycle Accessories Limited Company ("TXBA"). Doc. 24 at 3–5. Before the Court is TXBA's motion to dismiss for lack of personal jurisdiction. Doc. 62. The motion is fully briefed, Docs. 76, 89, and the Court heard oral argument on January 5, 2024. Doc. 90. The Court will grant TXBA's motion because TXBA has no relationship to Arizona specifically, only an attenuated relationship to the United States generally. The Court will further deny Huffy's request for jurisdictional discovery because the request is vague and based on bare allegations in the face of specific denials. ///

1 For convenience, the Court uses “Huffy” to mean both Defendants “Huffy Corporation International, Inc.” and “Huffy Manufacturing Company d/b/a Huffy Bicycle Company.” I. Legal Standards A. Rule 12(b)(2) Under Federal Rule of Civil Procedure 12(b)(2), a defendant may move to dismiss for lack of personal jurisdiction. Facing a Rule 12(b)(2) motion to dismiss, the nonmovant bears the burden of demonstrating that the court's exercise of jurisdiction is proper. See CollegeSource, Inc. v. AcademyOne, Inc., 653 F.3d 1066, 1073 (9th Cir. 2011). The plaintiff "need only make a prima facie showing of jurisdictional facts" when the court's determination is based on written materials rather than an evidentiary hearing. Boschetto v. Hansing, 539 F.3d 1011, 1015 (9th Cir. 2008) (quotation marks and citation omitted). That is, "the plaintiff need only demonstrate facts that if true would support jurisdiction over the defendant." Ballard v. Savage, 65 F.3d 1495, 1498 (9th Cir. 1995). Uncontroverted allegations in the complaint must be taken as true. Boschetto, 539 F.3d at 1015. In addition, "[t]he court may consider evidence presented in affidavits to assist it in its determination and may order discovery on the jurisdictional issues." Doe v. Unocal Corp., 248 F.3d 915, 922 (9th Cir. 2001). Any conflict "between the parties over statements contained in affidavits must be resolved in the plaintiff's favor." Boschetto, 539 F.3d at 1015 (quoting Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004)). B. Personal Jurisdiction Federal courts generally follow state law in determining the bounds of personal jurisdiction. See Fed. R. Civ. P. 4(k)(1)(A). Here, "Arizona 'exerts personal jurisdiction over a nonresident litigant to the maximum extent allowed by the federal constitution.'" LNS Enters. LLC v. Cont'l Motors, Inc., 22 F.4th 852, 858 (9th Cir. 2022) (quoting A. Uberti & C. v. Leonardo, 892 P.2d 1354, 1358 (Ariz. 1995)); see also Ariz. R. Civ. P. 4.2(a). Given that, "the jurisdictional analyses under state law and federal due process are the same." Schwarzenegger, 374 F.3d at 801. Under the Fourteenth Amendment's due process clause, "a tribunal's authority depends on the defendant having such 'contacts' with the forum State that 'the maintenance of the suit' is 'reasonable, in the context of our federal system of government,' and 'does not offend traditional notions of fair play and substantial justice.'" Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., 141 S. Ct. 1017, 1024 (2021) (quoting Int'l Shoe Co. v. Washington, 326 U.S. 310, 316–17 (1945)). This inquiry "has long focused on the nature and extent of 'the defendant's relationship to the forum state.'" Id. (quoting Bristol-Myers Squibb Co. v. Super. Ct. of Cal., San Francisco Cnty., 582 U.S. 255, 262 (2017)). That relationship may permit "two kinds of personal jurisdiction: general (sometimes called all-purpose) jurisdiction and specific (sometimes called case-linked) jurisdiction." Id. General jurisdiction depends on the defendant's relationship with the forum state— for companies, the question is whether the defendant is incorporated, headquartered, or otherwise "at home" there. Ford, 141 S. Ct. at 1024. By contrast, "specific jurisdiction covers defendants that are less intimately connected with a state, but that have sufficient minimum contacts with the state that are relevant to the lawsuit." LNS Enters., 22 F.4th at 859 (citing Pebble Beach Co. v. Caddy, 453 F.3d 1151, 1155 (9th Cir. 2006)). While general jurisdiction depends on the relationship between the defendant and the forum, specific jurisdiction depends on the relationship between "the defendant, the forum, and the litigation." Walden v. Fiore, 571 U.S. 277, 284 (2014) (citation omitted). The Ninth Circuit has "established a three-prong test for analyzing a claim of specific personal jurisdiction." Schwarzenegger, 374 F.3d at 802. In particular: (1) The non-resident defendant must purposefully direct his activities or consummate some transaction with the forum or resident thereof; or perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws; (2) the claim must be one which arises out of or relates to the defendant's forum-related activities; and (3) the exercise of jurisdiction must comport with fair play and substantial justice, i.e., it must be reasonable. Id. (citation omitted). /// II. Analysis Huffy concedes that the Court lacks general personal jurisdiction here. The Court further determines it lacks specific personal jurisdiction because TXBA has no relationship with Arizona specifically, only an attenuated relationship with the United States generally. The Court further determines that jurisdictional discovery is not warranted because Huffy's request is speculative and does not rise above the level of a "hunch." A. General Personal Jurisdiction Huffy does not respond to TXBA's argument or dispute that the Court lacks general personal jurisdiction over TXBA. Compare Doc. 63 at 8–9, with Doc. 24. At oral argument, Huffy conceded the point. Doc. 90 at 10:19–23. The Court agrees it lacks general personal jurisdiction because TXBA "is a limited company with its principal place of business at Liang Tou Village East, Liang Tou Town, Jinghai County, Tianjin, China." Doc. 24 ¶ 2. TXBA "has no physical locations, facilities or personnel in Arizona, … is not licensed to conduct business in Arizona, owns no property or assets in Arizona, … neither owes nor pays taxes in Arizona[, and] [n]one of [TXBA]'s officers, directors, shareholders, or employees are domiciled in Arizona." Doc. 63 at 9. TXBA thus is not "at home" in Arizona. B. Specific Personal Jurisdiction Huffy's Third-Party Complaint alleges the Court has specific personal jurisdiction because TXBA "knowingly conducting business as a designer, manufacturer, supplier, assembler, marketer, seller, and/or distributor of component parts of bicycles to be sold in Arizona." Doc. 24 ¶ 3. TXBA mostly controverts Huffy's allegation. See Doc. 63 at 3–5. TXBA asse

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