Glasstech, Inc. v. TGL Tempering Systems, Inc.

50 F. Supp. 2d 722, 1999 U.S. Dist. LEXIS 8441, 1999 WL 364252
CourtDistrict Court, N.D. Ohio
DecidedJune 4, 1999
Docket3:98 CV 7215
StatusPublished
Cited by36 cases

This text of 50 F. Supp. 2d 722 (Glasstech, Inc. v. TGL Tempering Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glasstech, Inc. v. TGL Tempering Systems, Inc., 50 F. Supp. 2d 722, 1999 U.S. Dist. LEXIS 8441, 1999 WL 364252 (N.D. Ohio 1999).

Opinion

MEMORANDUM OPINION

KATZ, District Judge.

This matter is before the Court on Defendants’ motion to dismiss. For the following reasons, Defendants’ motion to dismiss for lack of personal jurisdiction over the Defendants with respect to the patent claims is granted. This Court has jurisdiction over the remaining claims pursuant to 28 U.S.C. § 1332.

BACKGROUND

Plaintiff Glasstech, Inc. (“Glasstech”) is a Delaware Corporation with its principal place of business in Perrysburg, Ohio. Glasstech is engaged in the business of selling glass sheet heating, bending, and tempering equipment and is the holder of hundreds of patents in the United States and in many foreign countries. Defendants TGL Tempering Systems, Inc. (“TGL”) and Tamglass, Inc. (“Tamglass”) are Pennsylvania corporations. TGL has it principal place of business in Cinnamin-son, New Jersey and Tamglass is principally located in Pittsburgh, Pennsylvania. Defendant Tamglass Ltd. OY (“Tamglass OY”) is a Finnish corporation having its principal place of business in Tampere, Finland. Each of the Defendants are in the business of manufacturing and servicing advanced tempering and laminating machinery for automotive and architectural glass manufacturers. Glasstech and Defendants have been competing for many years.

On September 20, 1990, Glasstech entered into a contract with Mitsubishi International Corp. (“Mitsubishi”) for the sale and installation of a horizontal roller hearth architectural bending and tempering'system (“architectural bender”). Mitsubishi agreed in the contract of sale to protect the confidentiality of Glasstech’s technical information. Mitsubishi then transferred the architectural bender to Watanabe Mage Glass Company, Ltd. (“Watanabe”). Watanabe subsequently declared bankruptcy under the laws of Japan. A court-appointed trustee for Wa-tanabe sold the architectural bender to Craftman K.K. who thereafter sold the machine to Sansui, Ltd. (“Sansui”). Subsequently, Sansui entered into negotiations with Tamglass OY to sell the architectural bender. The sale contract, dated January 11, 1997, provided that the seller had “the full authority to sell the equipment on behalf of all the creditors of the Watanabe Mage Glass Co., Ltd. bankruptcy estate,” and that the “[ejquipment is free of all liens or other obligations of the third party.”

Tamglass OY removed the architectural bender from the vacant site of the Watan-abe manufacturing plant. The machine was disassembled in Nagoya, Japan and was shipped on a commercial ocean freighter to Baltimore, Maryland. The machine was then moved by truck to Cin-naminson, New Jersey.

Glasstech filed a complaint on April 13, 1998 alleging that Defendants violated the Ohio Uniform Trade Secrets Act, Ohio Rev.Code §§ 1333.65 et seq. and the Ohio common law by misappropriating its trade secrets. On October 27, 1998, Glasstech amended its complaint to include a claim of *725 patent infringement and/or induced infringement. The Defendants subsequently filed this motion to dismiss. The Court addresses Defendants’ motion below.

DISCUSSION

A. Personal Jurisdiction Under Ohio Law

Plaintiff bears the burden of making a prima facie showing that the Court has jurisdiction over the person of each Defendant to the action. On a motion to dismiss for lack of personal jurisdiction, the Court treats the allegations contained in Plaintiffs complaint, affidavits, and depositions as true, and resolves any factual dispute in Plaintiffs favor. Welsh v. Gibbs, 631 F.2d 436, 438-39 (6th Cir.1980), cert. denied, 450 U.S. 981, 101 S.Ct. 1517, 67 L.Ed.2d 816 (1981); Gold Circle Stores v. Body Maven, Inc., 711 F.Supp. 897, 899 (S.D.Ohio 1988).

Generally, the Court engages in a two-step process in determining whether it has in 'personam jurisdiction over the Defendants. First, it must look to Ohio law. A federal district court has jurisdiction over any person “who could be subjected to the jurisdiction of a court of general jurisdiction in the state in which the district court is located.” Fed.R.Civ.P. 4 (k)(l)(A). If state law grants the Court in personam jurisdiction, the Court must then determine whether such jurisdiction comports with the due process requirements of the United States Constitution. Due process requires that the defendant “have certain minimum contacts with [the forum] such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.” International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945) (internal quotation and citation omitted). See also Omni Capital Intern. v. Rudolf Wolff & Co. Ltd., 484 U.S. 97, 104, 108 S.Ct. 404, 409-10, 98 L.Ed.2d 415 (1987) (holding that a court may only exercise jurisdiction over an out-of-state defendant if the defendant is amenable to service of process under the forum’s long-arm statute and if the exercise of jurisdiction over the defendant would not violate thé Due Process Clause of the Fifth and Fourteenth Amendments.)

Under the Due Process Clause, there are two bases upon which the Court may exercise jurisdiction over a defendant in a diversity case. First, there is general jurisdiction, which arises in cases in which a defendant’s “continuous and systematic” contacts within the forum state renders that defendant amenable to suit in any lawsuit brought against it in the forum state. Nationwide Mutual Ins. Co. v. Tryg Intern. Ins. Co., 91 F.3d 790, 793 (6th Cir.1996) (citation omitted). Second is specific jurisdiction, which exists in cases in which the subject matter of the lawsuit arises out of or is related to the defendant’s contacts with the forum. Id.

The Ohio long-arm statute does not extend personal jurisdiction to the limits of due process. Goldstein v. Christiansen, 70 Ohio St.3d 232, 238 n. 1, 638 N.E.2d 541, 546 n. 1 (1994) (holding it error to interpret the long-arm statute to give Ohio courts jurisdiction to the limits of the Due Process Clause, “since that interpretation would render the first part of the court’s two-part analysis nugatory”); see also Hoover Co. v. Robeson Indus. Corp., 904 F.Supp. 671, 673 (N.D.Ohio 1995). The Ohio long-arm statute provides for jurisdiction over a person as to a cause of action arising from the person’s:

(1) Transacting any business in the state;
(2) Contracting to supply services or goods in this state;

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Bluebook (online)
50 F. Supp. 2d 722, 1999 U.S. Dist. LEXIS 8441, 1999 WL 364252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glasstech-inc-v-tgl-tempering-systems-inc-ohnd-1999.