Hoppe v. G.D. Searle & Co.

683 F. Supp. 1271, 1988 U.S. Dist. LEXIS 5628, 1988 WL 35391
CourtDistrict Court, D. Minnesota
DecidedMarch 25, 1988
DocketCiv. 3-87-425
StatusPublished
Cited by14 cases

This text of 683 F. Supp. 1271 (Hoppe v. G.D. Searle & Co.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hoppe v. G.D. Searle & Co., 683 F. Supp. 1271, 1988 U.S. Dist. LEXIS 5628, 1988 WL 35391 (mnd 1988).

Opinion

ORDER

RENNER, District Judge.

Before the Court is defendant’s motion, pursuant to Fed.R.Civ.P. 12(b)(2), to dismiss plaintiff's complaint for lack of personal jurisdiction over defendant. In the alternative, defendant urges transfer of the case to the United States District Court in New York.

BACKGROUND

Plaintiff Hoppe is a New York citizen residing in New York. Defendant Searle is a corporation existing in, and incorporated under, Delaware law. Searle’s principal place of business is in the state of Illinois. For purposes of this motion, Searle does not deny that it transacts business in Minnesota, has committed acts within the state, and has “minimum contacts” with Minnesota.

While in New York state, plaintiff had inserted and then had removed a Cu-7 manufactured by Searle. Her treating physicians are in New York. The Complaint does not plead a specific nexus between Searle’s acts in Minnesota and plain *1272 tiff’s cause of action. Instead, the Complaint states only that Searle promoted and sold the Cu-7 and other pharmaceutical products in Minnesota.

Defendant contends that Hoppe’s case in this forum must be dismissed because her claims do not arise from Searle’s transaction of business or commission of acts occurring in Minnesota. According to defendant, such a nexus between defendant’s forum state actions and plaintiff’s cause of action is required by the Minnesota long-arm statute. Minn.Stat. § 543.19, subds. 1(b) and 3.

Upon careful review, the Court concludes that regardless of whether subdivision 3 indeed limits the extraterritorial reach of the Minnesota long-arm statute somewhere short of the full extent authorized by due process, there is a sufficient nexus between defendant’s forum contacts and plaintiff’s cause of action to justify assertion of jurisdiction consistent with Minn.Stat. § 543.19, subds. 1(b) and 3. For the reasons discussed herein, however, the Court finds it appropriate to transfer this case to the District of New York.

ANALYSIS

In order for this court to exercise diversity jurisdiction, the Court must find not only that the exercise of personal jurisdiction, be it “specific” or “general,” comports with due process, but also that service of process is authorized by the Minnesota long-arm statute. World-Wide Volkswagen v. Woodson, 444 U.S. 286, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980).

Minnesota’s long-arm statute authorizes personal jurisdiction over foreign corporations which transact business within this state. Minn.Stat. § 543.19, subd. 1(b) provides:

Personal jurisdiction over non-residents. Subdivision 1. As to a cause of action arising from any acts enumerated in this subdivision, a court of this state with jurisdiction of the subject matter may exercise personal jurisdiction over any foreign corporation ... in the same manner as if it were a domestic corpora-tion_ This section applies if, in person or through an agent, the foreign corporation ...:
(b) Transacts any business within the state.

The long-arm statute further requires, however, that

[o]nly causes of action arising from acts enumerated in subdivision 1 may be asserted against a defendant in an action in which jurisdiction over him is based upon this section.

Minn.Stat. § 543.19, subd. 3. A literal reading and application of this nexus requirement would clearly defeat personal jurisdiction unless plaintiff establishes that her claims arise out of G.D. Searle’s business activities in Minnesota.

1. Musi the “arising from” requirement of subdivision 3 be met in all cases?

It is now well established that fundamental due process rights are not offended solely because a cause of action does not arise out of, or relate to, the foreign corporation’s activities in the forum state. General jurisdiction is constitutionally appropriate provided that there are sufficient contacts between the state and the defendant corporation. Helicopteros Nacionales de Columbia v. Hall, 466 U.S. 408, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984). One issue before the Court is whether the explicit nexus requirement of Minn.Stat. § 543.19, subd. 3 limits the reach of the Minnesota long-arm statute somewhere short of the maximum permitted by current due process principles.

No Minnesota Supreme Court case has held the subdivision 3 nexus requirement an absolute bar to personal jurisdiction where a defendant has otherwise substantial enough forum contacts to satisfy due process. In contrast, at least five Minnesota Supreme Court decisions suggest that the “arising from” language of subdivision 3 does not preclude the assertion of jurisdiction where defendant’s contacts with this state, although unrelated to a plaintiff’s cause of action, are nonetheless so significant as to make it fair and reasonable that defendant appear in the forum.

*1273 In Franklin Mfg. Co. v. Union Pacific R. Co., 297 Minn. 181, 210 N.W.2d 227 (1973), a Minnesota corporation sued a foreign railroad company for damages resulting from the misrouting of a shipment of insulating materials which originated in Kansas. The defendant railroad had for an extended period of time maintained an office in Minnesota for the purpose of soliciting freight shipments for carriage on some part of its line. The defendant did not own transportation lines in the state, but did own railroad rolling stock which it authorized other companies to bring into Minnesota. The court stated:

That plaintiffs asserted cause of action did not arise out of defendant’s contacts with Minnesota is not unimportant. Were it otherwise, the issue would probably not have been raised. This nevertheless does not prevent this state from taking jurisdiction, provided the other factors weigh sufficiently in favor of it.

Id. at 184, 210 N.W.2d at 230.

Similarly, in Northwestern National Bank of St. Paul v. Kratt, 303 Minn. 256, 226 N.W.2d 910 (1975), the court held that an Illinois guarantor who had guaranteed a loan made by a Minnesota bank on property in Minnesota had transacted business within the state sufficient to satisfy Minn. Stat. § 543.19, subds. 1(b) and 3, notwithstanding that his Minnesota business transactions did not, in the strictest sense, give rise to the cause of action based on the signing of the guarantee itself. The guarantor had discussed a mortgage over the phone with bank officials and attended meetings concerning the transaction in Minnesota. The court stated that “[defendant’s] contention that his activities must give rise to this particular cause of action, based upon the signing of the guaranty itself, construes the statute more strictly than was intended by the legislature.” 303 Minn. at 261, 226 N.W.2d at 914.

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Bluebook (online)
683 F. Supp. 1271, 1988 U.S. Dist. LEXIS 5628, 1988 WL 35391, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hoppe-v-gd-searle-co-mnd-1988.