Harris v. American International Group, Inc.

923 F. Supp. 2d 1299, 2013 WL 501354, 2013 U.S. Dist. LEXIS 17981
CourtDistrict Court, W.D. Oklahoma
DecidedFebruary 11, 2013
DocketNo. CIV-12-470-D
StatusPublished
Cited by3 cases

This text of 923 F. Supp. 2d 1299 (Harris v. American International Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris v. American International Group, Inc., 923 F. Supp. 2d 1299, 2013 WL 501354, 2013 U.S. Dist. LEXIS 17981 (W.D. Okla. 2013).

Opinion

ORDER

TIMOTHY D. DeGIUSTI, District Judge.

Before the Court is the motion of Defendant American International Group, Inc., d/b/a American International Companies (“AIG”) [Doc. No. 27] to dismiss this action against it for lack of personal jurisdiction. Plaintiff timely opposed the motion, and AIG filed a reply.

In this action, Plaintiff asserts claims based on an automobile insurance policy issued by Defendant Granite State Insurance Company (“Granite”) and providing uninsured and underinsured motorist coverage. Plaintiff alleges she was injured in a motor vehicle collision caused by the negligence of an uninsured motorist, and submitted a claim to Granite. She contends that, by denying her claim, Granite breached the insurance contract. She also contends it acted in bad faith by improperly investigating and handling her claim.

Plaintiff also names AIG as a defendant, alleging that it is the holding company for [1302]*1302Granite and, in that capacity, AIG “owns and controls” Granite and other insurance companies. Complaint at ¶ 6. Athough Granite issued the subject insurance policy, Plaintiff alleges that it is merely an instrumentality and alter ego of AIG, and thus seeks to hold AIG liable for the alleged policy breach and bad faith conduct.

In its motion, AIG argues that this Court cannot exercise personal jurisdiction over it because it lacks the necessary minimum contacts with Oklahoma to satisfy due process. It presents evidence that AIG is a Delaware corporation having its principal place of business in New York City, that it is not licensed to do business in Oklahoma, and does not maintain an office or own property here. Affidavit of AIG Assistant Corporate Secretary, Patrick M. Burke (“Burke affidavit”), Ex. 1 to motion. AIG is a publicly listed holding company, and the ultimate corporate parent to numerous subsidiaries, including insurance companies. Id. at ¶ 8. However, AIG does not sell, write, or issue insurance policies, administer or process insurance claims, or make decisions regarding coverage. Nor is it authorized to do so on its own account or on behalf of any insurer. Id. at ¶ 10. As a holding company, its officers and directors, books records, and financial accounts are separate from those of its subsidiaries, including Granite. Id. at ¶ 11.

In response to the motion, Plaintiff does not dispute these contentions. However, she argues that, because Granite has sufficient minimum contacts with Oklahoma to permit the exercise of jurisdiction over it,1 those contacts should be imputed to AIG because it allegedly controls Granite. In support, Plaintiff submits extensive exhibits, including AIG Securities and Exchange Commission (“SEC”) filings and other publicly filed documents, which Plaintiff contends establish that AIG’s control over Granite is sufficient to permit this Court to exercise jurisdiction over AIG. Plaintiff also submits transcripts of depositions of AIG employees taken in other litigation, arguing their testimony establishes AIG’s control over its insurance subsidiaries.2

District courts have discretion to determine whether an evidentiary hearing is required to adjudicate a Rule 12(b)(2) motion challenging personal jurisdiction. Dudnikov v. Chalk & Vermilion Fine Arts, Inc., 514 F.3d 1063, 1069 (10th Cir. 2008). The parties in this case have not requested a hearing, and their extensive briefs and evidence, as well as applicable legal authorities, establish that no additional evidence is required to decide the issue raised by AIG. Nor is there a request by either party for jurisdictional discovery, as both rely heavily on public documents and deposition testimony in other litigation raising the same jurisdictional challenge. Accordingly, the Court finds that jurisdictional discovery need not be conducted in this case,3 and the Court will [1303]*1303proceed to rule on the basis of the parties’ briefs and the evidentiary materials submitted.

Standard of review:

It is well established that, to be subject to personal jurisdiction, a nonresident defendant must have sufficient contacts with the forum state to satisfy the requirements of due process. World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 291, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980); Peay v. BellSouth Medical Assistance Plan, 205 F.3d 1206, 1209 (10th Cir.2000). “To obtain personal jurisdiction over a nonresident defendant in a diversity action, a plaintiff must show both that jurisdiction is proper under the laws of the forum state and that the exercise of jurisdiction would not offend due process.” Intercon, Inc. v. Bell Atlantic Internet Solutions, Inc., 205 F.3d 1244, 1247 (10th Cir. 2000).

The plaintiff has the burden of establishing jurisdiction when the defendant contests a court’s jurisdictional authority. See, e.g., AST Sports Science, Inc. v. CLF Distribution Limited, 514 F.3d 1054, 1057 (10th Cir.2008). Where a court does not hold an evidentiary hearing, the plaintiff must only make a prima facie showing of personal jurisdiction by demonstrating, via affidavit or other written materials, facts that, if true, would support jurisdiction over the defendant. Id. In assessing the sufficiency of Plaintiffs showing in this case, the Court must assume the truth of her allegations if they are “plausible, non-conclusory, and non-speculative,” and resolve properly disputed factual contentions in her favor. Dudnikov v. Chalk & Vermilion Fine Arts, Inc., 514 F.3d 1063, 1070 (10th Cir.2008).

“The analysis of the personal jurisdiction question in diversity cases generally involves a 2-step inquiry: courts must determine whether the exercise of jurisdiction is consistent with (1) the long-arm statute of the forum state, and (2) the due process clause of the fourteenth amendment.” McClelland v. Watling Ladder Co., 729 F.Supp. 1316, 1318 (W.D.Okla.1990). In Oklahoma that test becomes a single inquiry because Oklahoma’s long-arm statute reaches to the full extent of due process. Rambo v. American Southern Ins. Co., 839 F.2d 1415, 1416 (10th Cir.1988).

To establish the requisite minimum contacts, plaintiff must show that defendant has “purposefully availed itself of the privilege of conducting business in the jurisdiction of this court;” for this purpose, a defendant need not be physically present or have physical contacts with the forum, so long as its efforts are purposefully directed there. Burger King Corp. v. Rudzewicz, 471 U.S. 462, 476, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985); Pro Axess, Inc. v. Orlux Distribution, Inc.,

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923 F. Supp. 2d 1299, 2013 WL 501354, 2013 U.S. Dist. LEXIS 17981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-american-international-group-inc-okwd-2013.