Heft v. AAI CORP.

355 F. Supp. 2d 757, 35 Employee Benefits Cas. (BNA) 1215, 2005 U.S. Dist. LEXIS 924, 2005 WL 159451
CourtDistrict Court, M.D. Pennsylvania
DecidedJanuary 24, 2005
DocketCIV.A. 104CV1709
StatusPublished
Cited by24 cases

This text of 355 F. Supp. 2d 757 (Heft v. AAI CORP.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Heft v. AAI CORP., 355 F. Supp. 2d 757, 35 Employee Benefits Cas. (BNA) 1215, 2005 U.S. Dist. LEXIS 924, 2005 WL 159451 (M.D. Pa. 2005).

Opinion

MEMORANDUM

CONNER, District Judge.

Removal, personal jurisdiction, and venue occasionally conspire to render the question of where a case proceeds as great a controversy as how it proceeds. A corporation based in Maryland asserts that a federal court sitting in Pennsylvania lacks statutory and constitutional authority to bind the company to judgment in an action removed from the state judiciary. This court disagrees, and finds that maintenance of this suit for benefits under the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. §§ 1001-1401, comports with federal personal jurisdiction and venue requirements.

I. Statement of Facts 1

The ERISA claims presented in this federal action are premised on a domestic relations order entered by a Pennsylvania court of common pleas. The former husband of plaintiff, Julee H. Heft (“Heft”), was employed by defendant, AAI Corporation, and was a participant in a retirement plan administered by the company at the time of the couple’s divorce in 2001. A domestic relations order designated Heft as an “alternate payee,” entitled to a share of benefits under the retirement plan when they became payable. 2 Heft’s ex-husband died in 2002, and she sought benefits pursuant to the order and retirement plan. AAI Corporation denied her request based on purported deficiencies in the domestic relations order. (Doc. 1, Ex. 1 ¶¶ 3-16).

Heft soon commenced a civil action, claiming breach of contract and bad faith, in the Court of Common Pleas of York County, Pennsylvania. She served the complaint on AAI Corporation at its headquarters in Maryland. The company did not respond directly to the complaint, but filed a notice of removal premised on federal question jurisdiction over ERISA claims. 3 (Doc. 1 ¶¶ 3-4, 10). Heft did not file a motion to remand.

Within several days of removal, AAI Corporation filed a motion to dismiss the complaint based on lack of personal jurisdiction and improper venue. The motion asserts that AAI Corporation is incorporated, does business, and employed Heft’s ex-husband in Maryland. The company neither maintains offices or agents nor conducts any business in Pennsylvania. It administers retirement plans in Maryland, and the decision to deny benefits to Heft was made in that state. (Docs.3, 4). The parties do not dispute these facts, but only whether they provide a sufficient basis on which this court may entertain the claims. (See Docs. 5,10).

*762 II. Standard of Review

Motions to dismiss for lack of personal jurisdiction or improper venue generally require the court to accept as true the allegations of the pleadings. 4 Pinker v. Roche Holdings Ltd., 292 F.3d 361, 368 (3d Cir.2002); Myers v. Am. Dental Ass’n, 695 F.2d 716, 724 (3d Cir.1982). The parties may submit affidavits in support of their positions, and may stipulate as to certain facts, but the plaintiff is entitled to rely on the allegations of the complaint absent evidentiary challenge. Carteret Sav. Bank, F.A. v. Shushan, 954 F.2d 141, 142 & n. 1 (3d Cir.1992); Myers, 695 F.2d at 724. Whatever the nature of the parties’ submissions, the court is bound to view the facts in the light most favorable to the plaintiff. Carteret, 954 F.2d at 142 & n. 1; Myers, 695 F.2d at 724.

III. Discussion

Personal jurisdiction and venue are closely related concepts. Both are concerned with the territorial reach of the court, not its inherent adjudicative power. See Ins. Corp. of Ir., Ltd. v. Compagnie des Bauxites de Guinee, 456 U.S. 694, 702, 102 S.Ct. 2099, 72 L.Ed.2d 492 (1982); Neirbo Co. v. Bethlehem Shipbuilding Corp., 308 U.S. 165, 167-68, 60 S.Ct. 153, 84 L.Ed. 167 (1939). Both depend on statutory factors but incorporate equitable and prudential considerations. See Burger King Corp. v. Rudzewicz, 471 U.S. 462, 474, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985); Stafford v. Briggs, 444 U.S. 527, 535-37, 100 S.Ct. 774, 63 L.Ed.2d 1 (1980). Both may be waived if not timely asserted. Fed. R. Civ. P. 12(h)(1); see also Bauxites, 456 U.S. at 702, 102 S.Ct. 2099.

But important distinctions exist. United States ex rel. Rudick v. Laird, 412 F.2d 16, 20 (2d Cir.1969); 4 Chakles Alan WRIght & Arthur R. Miller, Federal Practice AND Procedure § 1063 (3d ed.2002). The exercise of personal jurisdiction implicates constitutional, not merely statutory, concerns. See Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945). Considerations relevant to proper venue include not only the party’s activities in the forum, but also the location of other parties and their activities. See Stafford, 444 U.S. at 535-37, 100 S.Ct. 774. A party may preserve an objection to personal jurisdiction, but not to venue, by simply refusing to appear in the initial case and asserting a collateral challenge in a subsequent enforcement action. Bauxites, 456 U.S. at 702, 102 S.Ct. 2099; Earle v. McVeigh, 91 U.S. 503, 507, 1 Otto 503, 23 L.Ed. 398 (1875), cited in United States v. County of Cook, 167 F.3d 381, 388 (7th Cir.1999).

AAI Corporation has raised timely objections to both personal jurisdiction and venue, and each will receive the individual analysis that it deserves. In light of its constitutional dimension, the issue of personal jurisdiction will be addressed first. See Leroy v. Great W. United Corp., 443 U.S. 173, 180, 99 S.Ct. 2710, 61 L.Ed.2d 464 (1979).

A. Personal Jurisdiction

The authority of the United States courts to bind individuals to judgment is limited by both federal statute and the Due Process Clause of the Fifth Amendment. Pinker, 292 F.3d at 369. Through restrictions on the geographic scope of ef-

*763 fective service of process, the legislature may prescribe the persons over whom the court may acquire jurisdiction. Id. But, regardless of congressional directives, the Constitution provides the ultimate limitation on the reach of a court’s authority. Id. Thus, any analysis of personal jurisdiction requires an examination of both statutory and constitutional provisions. Vetro-tex Certainteed Corp. v. Consol.

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355 F. Supp. 2d 757, 35 Employee Benefits Cas. (BNA) 1215, 2005 U.S. Dist. LEXIS 924, 2005 WL 159451, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heft-v-aai-corp-pamd-2005.