Huth v. Midea America Corp.

CourtDistrict Court, D. Kansas
DecidedMarch 26, 2024
Docket5:23-cv-04031
StatusUnknown

This text of Huth v. Midea America Corp. (Huth v. Midea America Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huth v. Midea America Corp., (D. Kan. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF KANSAS

WILLIAM HUTH and DEBORAH HUTH, Case No. 23-4031-DDC-GEB Plaintiffs,

v.

MIDEA AMERICA CORP., GUANGDONG MIDEA AIR- CONDITIONING EQUIPLMENT CO., LTD., and MIDEA GROUP CO., LTD.,

Defendants.

MEMORANDUM AND ORDER

This matter comes before the court on defendant Midea America Corp.’s Motion to Dismiss (Doc. 10) for lack of personal jurisdiction. Plaintiffs William and Deborah Huth sued Midea America and two other defendants in Kansas state court after a Frigidaire humidifier— which, plaintiffs allege, defendants manufactured and sold—malfunctioned and damaged plaintiffs’ property. Midea America removed this case to federal court. It then filed a Motion to Dismiss, arguing that this court lacks personal jurisdiction because Midea America doesn’t manufacture or sell Frigidaire humidifiers, and it doesn’t have any meaningful contacts with Kansas. Plaintiffs oppose the motion, asking the court to permit jurisdictional discovery or to remand the case to state court so plaintiffs can resolve their claims against the remaining two defendants in plaintiffs’ selected forum. For the reasons below, the court grants Midea America’s Motion to Dismiss (Doc. 10) and denies plaintiffs’ Motion to Remand (Doc. 15). I. Factual Allegations and Procedural History Plaintiffs William and Deborah Huth live in Emporia, Kansas. Doc. 1-1 at 1 (Pet. ¶ 1). In their home, plaintiffs used a Frigidaire dehumidifier. Id. (Pet. ¶ 2). In November 2019, the dehumidifier malfunctioned and caused smoke damage to plaintiffs’ real and personal property. Id. Plaintiffs allege that defendants Midea America Corp. (Midea America), Guangdong Midea

Air-Conditioning Equipment Co., Ltd. (Guangdong Midea), and Midea Group Co., Ltd. (Midea Group) each sold, warranted, distributed, and manufactured the dehumidifier that damaged their property. Id. at 2 (Pet. ¶ 3). Plaintiffs sued defendants in state court, specifically, the District Court of Lyon County, Kansas. They asserted claims for negligence, breach of contract, strict liability, and for violating the Kansas Consumer Protection Act. Doc. 1-1 (Pet.). Midea America removed the case to federal court, invoking the court’s diversity jurisdiction. Doc. 1. Midea America then filed a Motion to Dismiss (Doc. 10) for lack of personal jurisdiction. Midea America asserts that it lacks ties to the specific product at issue and to the state of Kansas. Midea America is a Florida corporation with its headquarters in New Jersey.1 Doc. 11-

2 at 2 (Teixeira Aff. ¶¶ 6–7). It denies having manufactured, distributed, or sold the Frigidaire dehumidifier that allegedly damaged plaintiffs’ property. Id. at 3 (Teixeira Aff. ¶ 11). Midea America doesn’t have any offices or employees in Kansas. Id. (Teixeira Aff. ¶¶ 14–15). And Midea America isn’t registered to do business in Kansas. Id. (Teixeira Aff. ¶ 17). Midea America stores inventory in a Kansas warehouse, but it doesn’t own or rent the warehouse. Id. (Teixeira Aff. ¶ 18).

1 Where, as here, the court decides a motion to dismiss for lack of personal jurisdiction without an evidentiary hearing, the court may consider affidavits and other written materials that the parties submit. See Wenz v. Memery Crystal, 55 F.3d 1503, 1505 (10th Cir. 1995). Plaintiffs oppose Midea America’s Motion to Dismiss. Doc. 14. They ask the court to permit them to conduct jurisdictional discovery about Midea America’s relationship with the dehumidifier and the state of Kansas. Id. at 4; Doc. 15. Alternatively, should the court grant Midea America’s Motion to Dismiss, plaintiffs ask the court to remand the case to state court so they can pursue their claims against Guangdong Midea and Midea Group in plaintiffs’ chosen

forum. Doc. 15. II. Legal Standard Midea America contends this court lacks personal jurisdiction over it. Rule 12(b)(2) of the Federal Rules of Civil Procedure governs dismissal for lack of personal jurisdiction. The plaintiff bears the burden to establish personal jurisdiction over each defendant named in the action. Rockwood Select Asset Fund XI (6)-1, LLC v. Devine, Millimet & Branch, 750 F.3d 1178, 1179–80 (10th Cir. 2014) (citation omitted). But in a case’s preliminary stages, a plaintiff’s burden to prove personal jurisdiction is a light one. AST Sports Sci., Inc. v. CLF Distrib. Ltd., 514 F.3d 1054, 1056 (10th Cir. 2008) (citation omitted). Where, as here, a defendant asks the court to decide a pretrial Motion to Dismiss for lack

of personal jurisdiction without conducting an evidentiary hearing, a plaintiff must make only a prima facie showing of jurisdiction. Id. at 1056–57 (citing OMI Holdings, Inc. v. Royal Ins. Co. of Can., 149 F.3d 1086, 1091 (10th Cir. 1998)). “The plaintiff may make this prima facie showing by demonstrating, via affidavit or other written materials, facts that if true would support jurisdiction over the defendant.” OMI Holdings, Inc., 149 F.3d at 1091. To defeat a prima facie showing of personal jurisdiction, defendants “must present a compelling case demonstrating ‘that the presence of some other considerations would render jurisdiction unreasonable.’” Id. (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 477 (1985)). When defendant fails to controvert plaintiff’s allegations with affidavits or other evidence, the court must accept the well-pleaded allegations in the complaint as true and resolve any factual disputes in plaintiff’s favor. Wenz v. Memery Crystal, 55 F.3d 1503, 1505 (10th Cir. 1995); Dudnikov v. Chalk & Vermilion Fine Arts, Inc., 514 F.3d 1063, 1070 (10th Cir. 2008) (describing well-pled facts as “plausible, non-conclusory, and non-speculative” (citing Twombly, 550 U.S. 544)).

“Federal courts ordinarily follow state law in determining the bounds of their jurisdiction over persons.” Daimler AG v. Bauman, 571 U.S. 117, 125 (2014) (citing Fed. R. Civ. P. 4(k)(1)(A)). In a diversity action like this one, the plaintiff must show that exercising jurisdiction is proper under the laws of the forum state and that doing so comports with the Constitution’s due process requirements. Federated Rural Elec. Ins. Corp. v. Kootenai Elec. Co- op., 17 F.3d 1302, 1304–05 (10th Cir. 1994) (citation omitted). But Kansas’s long-arm statute is construed liberally to permit any exercise of jurisdiction that comports with the United States Constitution. Id. at 1305; see also Kan. Stat. Ann. § 60- 308(b)(1)(L) & (b)(2). Thus, it’s unnecessary to conduct a separate personal jurisdiction analysis

under Kansas law. Instead, the court may proceed directly to the due process inquiry. Federated Rural Elec. Ins. Corp., 17 F.3d at 1305; see also Niemi v. Lasshofer, 770 F.3d 1331, 1348 (10th Cir. 2014) (explaining that where a state’s long-arm statute “confers the maximum jurisdiction permissible consistent with the Due Process Clause . . . the first, statutory, inquiry effectively collapses into the second, constitutional, analysis” (internal quotation marks and citation omitted)).

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