Huntington v. Smoke City for Less LLC

District Court, E.D. Washington·Decided April 18, 2023·No. 4:22-cv-05014·Unknown

Opinion

EASTERU N. S D. I SD TI RS IT CR TI C OT F C WO AU SR HT I NGTON Apr 18, 2023 SEAN F. MCAVOY, CLERK JEFFREY HUNTINGTON, No. 4:22-cv-05014-MKD

Plaintiff, ORDER GRANTING DEFENDANT v. LG CHEM’S MOTION TO DISMISS AND DENYING SMOKE CITY FOR LESS LLC d/b/a PLAINTIFF HUNTINGTON’S SMOKE CITY FOR LESS; LG CHEM REQUEST FOR JURISDICTIONAL LTD; AND DOES 1-50, DISCOVERY

Defendant. ECF No. 16

Before the Court is Defendant LG Chem, Ltd.’s (“LG Chem”) Motion to Dismiss for Lack of Personal Jurisdiction. ECF No. 16. Plaintiff Jeffrey Huntington brings claims of defective design and manufacture, failure to warn, and negligence against LG Chem. ECF No. 9 at 14-22. LG Chem moves to dismiss for lack of personal jurisdiction. ECF No. 16. The Court has reviewed the motion and the record and is fully informed. For the reasons stated below, the Court GRANTS LG Chem’s Motion to Dismiss

for Lack of Personal Jurisdiction and DENIES Plaintiff’s request for limited jurisdictional discovery.

A. First Amended Complaint Plaintiff alleges that he purchased a LG MH1 3200mAh 10A rechargeable lithium-ion battery, also identified as a “18650 lithium-ion battery,” (the “subject battery”) from Defendant Smoke City for Less LLC d/b/a Smoke City for Less

(“Smoke City”), in Hermiston, Oregon. ECF No. 9 at 2-3 ¶¶ 3, 7-8; 13 ¶ 40. Plaintiff alleges that on or around November 7, 2019, Plaintiff was carrying the subject battery and another battery in his left front pocket when the subject battery

exploded and his pants pocket caught fire. ECF No. 9 at 2 ¶ 3; 13 ¶ 41. Plaintiff alleges that because of the battery explosion, he “sustained severe, permanent physical and emotional injuries.” ECF No. 9 at 14 ¶ 47. Plaintiff brings suit against Smoke City, LG Chem, and Does 1-50 for their alleged involvement in

providing 18650 lithium-ion batteries to consumers. ECF No. 9. Plaintiff alleges that LG Chem sells its lithium-ion batteries to Chinese companies that “redistribute LG’s products to e-cigarette and vaping retailers,

wholesalers, and distributors in the United States.” ECF No. 9 at 3-4 ¶ 8. Plaintiff also alleges that LG Chem has “not taken steps to curtail the flow of its batteries” to the e-cigarette market, ECF No. 9 at 5 ¶ 13, and that LG Chem has publicly

stated its “intent [] to dominate the United States lithium-ion 18650 battery market.” ECF No. 9 at 5 ¶ 14. Plaintiff contends that although he is currently a resident of Oregon, ECF

No. 9 at 2 ¶ 1, he was injured in Washington, ECF No. 9 at 6 ¶ 18, and was a Washington resident at the time of his injury. ECF No. 9 at 2 ¶ 1. B. LG Chem’s Evidence in Support of its Motion to Dismiss In support of its motion to dismiss for lack of personal jurisdiction, LG

Chem submits the declaration of Hwi Jae Lee (“Lee Declaration”), an employee of LG Energy Solutions, Ltd.1 ECF No. 17. LG Chem is a Korean company with its principal offices in Seoul, South Korea, is not registered to do business in

Washington, does not have an office in Washington, and does not own or lease any

1 According to Lee’s Declaration, LG Energy Solution, Ltd. (“LGES”) was “formed on December 1, 2020, in a spin-off of LG Chem’s battery division.” ECF No. 17 at 2 ¶ 4. LGES is a subsidiary of LG Chem that became a publicly traded company on January 27, 2022. ECF No. 17 at 2 ¶ 4. Additionally, LGES is in possession of “all business records related to the design, manufacture, distribution

and sale of 18650 lithium ion battery cells.” ECF No. 17 at 2 ¶ 6. property in Washington. ECF No. 17 at 2 ¶¶ 7-8. According to Lee’s Declaration, “LG Chem never designed, manufactured, distributed, advertised, or sold 18650

lithium ion cells for sale to or use by individual consumers as standalone, replaceable batteries” and “never authorized any . . . individual or entity” to do so. ECF No. 17 at 3 ¶¶ 11-12. “LG Chem never provided, advertised, or authorized

consumer repair or replacement services for LG 18650 lithium ion cells in Washington.” ECF No. 17 at 4 ¶ 17. “LG Chem never conducted business with Smoke City (the alleged retailer) or Eleaf (the alleged manufacturer of the device)[.]” ECF No. 17 at 4 ¶ 15.

Lee’s Declaration states that consumers could not purchase 18650 lithium- ion cells through LG Chem’s website, and “[t]o the extent consumers could access information about LG 18650 lithium ion battery cells on LG Chem’s website . . .

the website included an express warning against the use of 18650 cells as standalone, replaceable batteries prior to the alleged incident on November 7, 2019.” ECF No. 17 at 4 ¶ 17. “The 18650 lithium ion cells LG Chem manufactured are industrial component parts” and “were not designed to be

handled by consumers.” ECF No. 17 at 3 ¶ 11. Lee avers, premised upon a review of sales records, as follows: for the time period 2012-2020 . . . LG Chem engaged in a total of three transactions with companies located in Washington that involved 18650 lithium ion battery cells. Each transaction involved a shipment of 18650 lithium-ion cells to be encased with protective circuitry in a battery pack. The total number of 18650 cells shipped to entities in Washington was less than 5,000 cells. ECF No. 17 at 5 ¶ 19. None of the transactions involved the model type at issue in the Complaint. ECF No. 17 at 5 ¶ 19. “None of the transactions involved sales or shipments to . . . anyone known to LG Chem to be engaged in the business of manufacturing or selling any type of e-cigarette device.” ECF No. 17 at 5 ¶ 19. C. Plaintiff’s Evidence in Support of Jurisdiction In support of jurisdiction, Plaintiff submits the declaration of Nickie Bonenfant, Chief Operating Officer at ImportGenius. ECF No. 25. According to the declaration, ImportGenius is a privately held company, which provides access to United States import data via www.importgenius.com. ECF No. 25 at 2 ¶¶ 3-4. The declaration states that the company obtains its data directly from U.S. Customs Bills of Lading. ECF No. 25 at 2 ¶ 4. According to Plaintiff, appendices A-F to Bonenfant’s declaration show search results from the ImportGenius database that identify shipments from various LG entities including LG Chem, LG Chem America, and LG Energy Solutions into Washington and that some of those shipments were consigned by LG Chem subsidiaries. ECF No. 25 at 4-5 ¶¶ 20-25; ECF No. 25, apps. A-F. According to the declaration, appendices A-F demonstrate the following: Appendix A shows 8,444 import records “identifying shipments from ‘LG Chem’ arriving in a State of Washington port from November 1, 2006 to January 9, 2023[,]” ECF No. 25 at 4 ¶ 20; Appendix B shows 487 import records “identifying shipments from ‘LG Chem’ consigned by a consignee with a State of Washington

address and arriving in any U.S [sic] port from November 1, 2006 to January 9, 2023[,]” ECF No. 25 at 4 ¶ 21; Appendix C shows 792 import records “identifying shipments from ‘LG Chem’ to a Notifying Party with a State of Washington

address and arriving in any U.S [sic] port from November 1, 2006 to January 9, 2023[,]” ECF No. 25 at 4-5 ¶ 22; Appendix D shows 127 import records “identifying shipments from ‘LG Energy’ arriving in a State of Washington port from November 1, 2006 to January 9, 2023[,]” ECF No. 25 at 5 ¶ 23; Appendix E

shows 2 import records “identifying shipments from ‘LG Energy’ consigned by a consignee with a State of Washington address and arriving in any U.S [sic] port from November 1, 2006 to January 9, 2023[,]” ECF No. 25 at 5 ¶ 24; Appendix F

shows 1 import record “identifying shipments from ‘LG Energy’ to a Notifying Party with a State of Washington address and arriving in any U.S [sic] port from November 1, 2006 to January 9, 2023[,]” ECF No. 25 at 5 ¶ 25. The import records are submitted as non-scannable excel files. ECF No. 26.

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