Harper v. Biolife Energy Systems, Inc.

426 P.3d 1067
CourtAlaska Supreme Court
DecidedSeptember 14, 2018
Docket7294 S-16488
StatusPublished
Cited by8 cases

This text of 426 P.3d 1067 (Harper v. Biolife Energy Systems, Inc.) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harper v. Biolife Energy Systems, Inc., 426 P.3d 1067 (Ala. 2018).

Opinion

STOWERS, Chief Justice.

I. INTRODUCTION

A woman sued two New York corporations in the superior court in Valdez, alleging violations of her right of publicity and right of privacy. Her claims related to an allegedly false account regarding her recovery from cancer ; she discovered the account in a brochure promoting products by BioLife Energy Systems, Inc., while working for BioLife's distributor in Colorado. The defendants filed a motion to dismiss based on lack of personal jurisdiction, claiming that neither of them has the minimum contacts with Alaska necessary to satisfy due process. The superior court granted the motion, reasoning that although BioLife arguably had some contacts in Alaska, the woman's claims did not relate *1070 to those contacts, and the defendants' contacts were insufficient to establish all-purpose jurisdiction. The woman appeals. We affirm.

II. FACTS AND PROCEEDINGS

Around May and June 2012, Paulette Harper, who had recently moved from Alaska to Montrose, Colorado, worked for HoneyCombs Herbs and Vitamins for approximately four weeks. HoneyCombs manufactured and distributed herbal and vitamin products on behalf of other companies, including BioLife. While working at HoneyCombs, Harper alleged she saw a brochure from BioLife that included a section entitled "The Herbalist Behind BioLife: Michael Combs"; Combs is Harper's brother, and the write-up about him included an allegedly false account of his organic herb research leading to Harper recovering from cancer. 1 All parties agreed that the brochure was available on BioLife's website. Harper moved back to Alaska in October 2012, and in June 2015 she filed a lawsuit against BioLife and Linkup Media Group of Companies, Inc., 2 in the superior court in Valdez, alleging violations of her right of publicity and right of privacy and seeking damages for unjust enrichment and punitive damages.

In January 2016 defendants moved to dismiss for lack of personal jurisdiction. They argued that they had "no significant contacts with Alaska" and that "the closest [they] ha[d] come to doing business in Alaska" was when BioLife "sen[t] supplements ordered by a Connecticut resident to a person in Alaska" in 2012. They also argued that the fact that the brochure was posted on BioLife's New York-based website did not subject them to either specific or general personal jurisdiction in Alaska.

Harper opposed the motion. She argued that BioLife's website was highly commercial in nature, allowing customers to purchase products online, and that the drop-down menu for shipping included Alaska as an option, along with the other 49 states "and a long list of nations from Afghanistan to Zimbabwe." In her accompanying affidavit, she alleged that HoneyCombs "place[d] at least several dozen Bio[L]ife orders [on an average day], and some days more than one hundred," and that "[b]ased on the large quantity of orders [she] place[d] during just [her] brief period there, and considering that Bio[L]ife ha[d] been in business for approximately five years, it seem[ed] highly plausible that one or more order[s] could have originated in Alaska." She suggested that jurisdictional discovery was appropriate. She later filed a supplemental affidavit, alleging that she saw "several orders from Alaska." She stated that "[c]onsidering the number of BioLife packages [she] saw destined for Alaska during [her] short time working there, [she assumed] that there were many more before and after [her] time there."

In their reply the defendants argued that Harper was not credible because of the inconsistency between the two affidavits and because Harper's assertions were contradicted by Crystal Combs, the owner of HoneyCombs, who stated that Harper "only taped [boxes] ... and labels were later applied in the shipping department" and that according to HoneyCombs's records "[t]he only shipment to Alaska was for an order from a Connecticut customer for delivery in Alaska." They opposed the "undeveloped discovery request."

The superior court issued an order granting the motion to dismiss the lawsuit without prejudice. The court found that the website was "clearly commercial in nature" but seemed to credit the defendants' position that BioLife shipped only one order to Alaska. The court concluded that it lacked general personal jurisdiction over the defendants; it also concluded that it lacked specific personal jurisdiction because "[a]lthough Bio[L]ife arguably did at one time purposefully direct its activities to Alaska residents, *1071 the claims at issue in this case do not relate to or arise from those activities."

Harper moved for reconsideration and also filed a formal motion for additional jurisdictional discovery. She argued that "she [was] and ha[d] been an Alaska resident for all periods [of] time relevant to her complaint" 3 and that Alaska was therefore the place of injury. She also argued that she "made specific and credible allegations regarding BioLife's contacts with Alaska" and "clearly provide[d] a good faith basis to believe that there is discoverable information on this question." She included a second supplemental affidavit.

The defendants opposed the motions, arguing among other things that the second supplemental affidavit constituted newly introduced evidence that should not be considered. They argued that Harper failed to explain how the court allegedly misconstrued or misapplied the law of personal jurisdiction and that her affidavits were contradictory.

The court denied the motions for reconsideration and for jurisdictional discovery. Harper appeals.

III. STANDARD OF REVIEW

"We review questions regarding personal jurisdiction de novo because '[j]urisdictional issues are questions of law subject to this court's independent judgment.' We adopt 'the rule of law that is most persuasive in light of precedent, reason, and policy' when it comes to jurisdictional questions." 4

"When considering the appeal of a motion to dismiss we 'presume all factual allegations of the complaint to be true and make all reasonable inferences in favor of the non-moving party.' " 5

"We will not overturn an order denying a motion for reconsideration unless there has been an abuse of discretion." 6 Abuse of discretion will be found "when the decision on review is manifestly unreasonable." 7

IV. DISCUSSION

A. The Superior Court Did Not Err In Dismissing The Action For Lack Of Personal Jurisdiction.

Alaska courts may exercise jurisdiction over out-of-state defendants pursuant to Alaska's "long-arm statute," AS 09.05.015. 8

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Bluebook (online)
426 P.3d 1067, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harper-v-biolife-energy-systems-inc-alaska-2018.