Imperial Products, Inc. v. Endura Products, Inc.

109 F. Supp. 2d 809, 2000 U.S. Dist. LEXIS 6109, 2000 WL 1146137
CourtDistrict Court, S.D. Ohio
DecidedMarch 13, 2000
DocketC-3-99-167
StatusPublished
Cited by4 cases

This text of 109 F. Supp. 2d 809 (Imperial Products, Inc. v. Endura Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Imperial Products, Inc. v. Endura Products, Inc., 109 F. Supp. 2d 809, 2000 U.S. Dist. LEXIS 6109, 2000 WL 1146137 (S.D. Ohio 2000).

Opinion

DECISION AND ENTRY OVERRULING MOTION TO DISMISS (DOC. #3-1) FILED BY DEFENDANT ENDURA PRODUCTS, INC.; MOTION TO TRANSFER VENUE (DOC. #3-2) FILED BY DEFENDANT ENDURA PRODUCTS, INC., OVERRULED

RICE, Chief Judge.

This litigation stems from the alleged infringement by Defendant Endura Prod *810 ucts, Inc. (“Endura”), on patents owned by Plaintiff Imperial Products, Inc. (“Imperial”). In its Complaint, Imperial asserts that Endura infringed on the patents by selling “door threshold assemblies” to customers in Ohio. (Doc. # 1 at ¶ 5, 8). Imperial contends that the infringing acts “have been and are still being performed.... ” (Id. at ¶ 11). As a result, it seeks declaratory and injunctive relief, as well as compensatory damages of $1,000,000. Pending before the Court are two Motions filed by Endura: (1) a Motion to Dismiss for Lack of Personal Jurisdiction (Doc. # 3-1); and (2) an alternative Motion to Transfer Venue (Doc. # 3-2).

I. Analysis of Defendant’s Motion to Dismiss (Doc. # 3-1)

In its Motion to Dismiss, Endura contends that the Court lacks personal jurisdiction over it, because it is an out-of-state Defendant, it is not amenable to suit under Ohio’s long-arm statute and the exercise of in personam jurisdiction would violate federal due process. In support, the company alleges that it lacks any significant connections to Ohio. Brad Procton, a Vice President of Endura, avers that the company is based in North Carolina, where most of its employees and operations are located. (Procton affidavit, Doc. # 3 at ¶ 3<t — 4). According to Procton, Endura (1) owns no property in Ohio, (2) has no offices or facilities in Ohio, (3) has no place of business in Ohio, (4) has no employees, agents or sales representatives in Ohio, (5) is not licensed to do business in Ohio and (6) has no telephone listing in Ohio. (Id. at ¶ 5). Procton also avers that his company receives orders for its products by telephone, fax or mail. (Id. at ¶ 6). He states that Endura’s sales to residents of Ohio are relatively small. (Id. at ¶ 7). With respect to this litigation, Procton contends that Endura has generated less than $600 in gross revenue from Ohio sales of its allegedly infringing product over a three-year period. (Id. at ¶ 8). This dollar amount purportedly represents one-tenth of one percent of Endura’s total product sales nationwide. (Id. at ¶ 8). Based upon these assertions, Endura contends that the Court may not exercise personal jurisdiction over it.

When determining whether to exercise personal jurisdiction over an out-of-state accused patent infringer such as Endura, the Court must apply Federal Circuit law, rather than the law of the Sixth Circuit. Akro Corp. v. Luker, 45 F.3d 1541, 1543 (Fed.Cir.1995). Under Federal Circuit law, the Court may resolve the present Rule 12(b)(2) Motion without conducting a hearing. In so doing, it must construe the pleadings, affidavits and other evidence in a light most favorable to Imperial. Graphic Controls Corp. v. Utah Medical Products, Inc., 149 F.3d 1382, 1383 n. 1 (Fed.Cir.1998). Endura’s Motion must be overruled if Imperial makes a prima facie showing of personal jurisdiction. 1 See, e.g., United States v. Ziegler Bolt and Parts Co., 111 F.3d 878, 880. (Fed.Cir.1997).

In the present case, Imperial has provided the Court with affidavits and other materials to support its argument that the exercise of personal jurisdiction over En-dura is proper. In the exercise of its discretion, the Court has chosen to resolve the jurisdictional issue on the basis of the pleadings, affidavits and other evidence before it. Consequently, the Court will construe the parties’ evidence in a light most favorable to Imperial and against Endura. With the foregoing guidelines in mind, the Court turns now to its analysis of the in personam jurisdiction issue.

A. Applicable law

Under Federal Circuit law, as elsewhere, “a district court’s personal jurisdiction over a non-consenting defendant outside the boundaries of the forum [involves] *811 a two-step inquiry.” Red Wing Shoe Co. v. Hockerson-Halberstadt, Inc., 148 F.3d 1355, 1358 (Fed.Cir.1998). “First, the district court determines whether a provision makes the defendant amenable to process, which usually depends on whether the ‘defendant could be subjected to jurisdiction of a court of general jurisdiction in the state in which the district is located.’ ” Id., quoting Fed.R.Civ.P. 4(k)(1)(A). This inquiry involves applying Ohio’s “long-arm” statute, Ohio Revised Code § 2307.382, to the facts at hand. Akro Corp. v. Luker, 45 F.3d 1541, 1544 (Fed.Cir.1995). “Second, the district court ensures that ‘maintenance of the suit does not offend traditional notions of fair play and substantial justice’ that are embodied in the Due Process Clause” of the Fifth Amendment. 2 Red Wing Shoe Co., 148 F.3d at 1358, quoting International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945). In accordance with this two-step approach, the Court first will determine whether Endura is amenable to suit under Ohio’s long-arm statute. 3 If so, the Court then will determine whether it may exercise personal jurisdiction over Endura, consistent with the requirements of federal due process, as articulated by the Federal Circuit. 4

B. Ohio’s Long-Arm Statute

The Ohio long-arm statute provides, inter alia, that an Ohio court may exercise personal jurisdiction “as to a cause of action arising from” a defendant “[cjausing tortious injury in this state by an act or omission outside the state, if he regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered in this state[.]” Ohio Rev.Code § 2307.382(A)(4). Although other subsections of the long-arm statute “may require direct contact with the state, [Federal Circuit] analysis of the plain meaning and application by Ohio courts of subsection (4) leads ... to [the] conclusion] that no such contact is required under that subsection.”

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Bluebook (online)
109 F. Supp. 2d 809, 2000 U.S. Dist. LEXIS 6109, 2000 WL 1146137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/imperial-products-inc-v-endura-products-inc-ohsd-2000.