International Paper Co. v. Goldschmidt

872 F. Supp. 2d 624, 2012 U.S. Dist. LEXIS 73228, 2012 WL 1902557
CourtDistrict Court, S.D. Ohio
DecidedMay 25, 2012
DocketCase No. 1:11-cv-910
StatusPublished
Cited by16 cases

This text of 872 F. Supp. 2d 624 (International Paper Co. v. Goldschmidt) 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
International Paper Co. v. Goldschmidt, 872 F. Supp. 2d 624, 2012 U.S. Dist. LEXIS 73228, 2012 WL 1902557 (S.D. Ohio 2012).

Opinion

DECISION AND ENTRY: (1) DENYING DEFENDANT’S MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION; (2) DENYING DEFENDANT’S MOTION TO DISMISS FOR IMPROPER VENUE; (3) DENYING DEFENDANT’S MOTION TO CHANGE VENUE; AND (4) GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS FOR FAILURE TO STATE A CLAIM (DOC. 13)

TIMOTHY S. BLACK, District Judge.

This civil action is before the Court on Defendant David Goldschmidt’s Motion to Dismiss for Lack of Personal Jurisdiction, Improper Venue, and Failure to State a Claim, or in the Aternative for Change of Venue. (Doc. 13). Defendant International Paper Company (“IPC”) filed an Opposition to Defendant’s Motion to Dismiss. (Doc. 19). Defendant filed a Reply Brief in Support. (Doc. 22). Defendant’s Motion is ripe.

I. BACKGROUND

Plaintiff International Paper Company (“IPC”) js a Kfew York corporation with a principal place of business in Memphis, Tennessee. (Doc. 1, PAGEID 1). xpedx is a division of IPC that does business throughout the United States and maintains its headquarters in Loveland, Ohio. (Doc. 1, PAGEID 1-4). xpedx includes two specialty brands, one of which is Strategic Paper Group (“SPG”), which maintains its headquarters in New York City, though it also maintains offices throughout the United States. (Id.) xpedx acquired SPG in 2007. (Doc. 19-1, PAGEID 173).

Plaintiff David Goldschmidt (“Goldschmidt”), a California resident, was an employee of SPG/xpedx. (Doc. 1). Goldschmidt’s employment with SPG began in [628]*6282000 and continued after xpedx acquired SPG in 2007. (Doc. 1, Doc. 19-1). Throughout his employment, Goldschmidt resided in and worked from California. (Doc. 1). In May 2007, Goldschmidt assumed responsibility for the west region of SPG. (Doc. 19-1, PAGEID 189). Effective January 1, 2009, Goldschmidt was promoted to Vice President of SPG. (Doc. 19-1, PAGEID 186, 189). In that position, he functioned as the general manager of SPG’s western region and participated in xpedx’s management incentive plan. (Doc. 1, PAGEID 2).

As Vice President of SPG, Goldschmidt possessed access to confidential and trade secret information. In consideration and as a condition of employment, Goldschmidt executed an Employee Agreement Concerning Inventions, Intellectual Property, Confidential Information and Conflict of Interest (“Confidentiality Agreement”).

Beginning in mid-2011, Goldschmidt was asked to participate with a group of seven other xpedx managers on xpedx’s Directed Buy team to address xpedx’s future strategy for its direct buy business. Goldschmidt’s participation on the Directed Buy team included frequent communication with xpedx members in Ohio via email communications, videoconferencing and teleconferencing. Members of the Directed Buy team also had access to a password protected xpedx website. In addition to communications by email, video, phone and websites, between May and October 2011, Goldschmidt attended Directed Buy meetings in person in Ohio.

In mid-October 2011, IPC contends that Goldschmidt began meeting with and discussing with xpedx sales professionals he supervised the topic of leaving xpedx and going to work for a competitor company, Midland Paper Company (“Midland”). Soon thereafter, Goldschmidt and these sales professionals purportedly met with Midland in Chicago, Illinois. On December 14, 2011, Goldschmidt abruptly resigned his position as Vice President of SPG and informed xpedx that he had accepted a position with Midland. Six other xpedx employees under Goldschmidt’s direct or second-level supervision also resigned their positions with xpedx to purportedly work for Midland.

IPC now brings suit alleging that Goldschmidt: (1) breached the Confidentiality Agreement by virtue of his employment with Midland; (2) violated the Ohio Uniform Trade Secrets Act, Ohio Rev.Code § 1333.61 et seq., by allegedly disclosing IPC’s trade secrets; (3) breached fiduciary duties owed to IPC; and (4) breached a duty of loyalty owed to IPC.

II. PERSONAL JURISDICTION

Goldschmidt moves dismiss the Complaint pursuant to Fed.R.Civ.P. 12(b)(2), arguing that he maintained sporadic, tenuous and insignificant contacts with Ohio, and, therefore, this Court lacks personal jurisdiction over him under Ohio’s long-arm statute and the Due Process Clause of the U.S. Constitution. “The party seeking to assert personal jurisdiction bears the burden of demonstrating that such jurisdiction exists.” Youn v. Track, Inc., 324 F.3d 409, 417 (6th Cir.2003) (citing Neogen Corp. v. Neo Gen Screening, Inc., 282 F.3d 883 (6th Cir.2002)); see also Bird v. Parsons, 289 F.3d 865 (6th Cir.2002); Schneider v. Hardesty, 669 F.3d 693 (6th Cir.2012).

In cases where plaintiff seeks to invoke this Court’s jurisdiction on the basis of diversity, the Court must “examine the law of the forum state to determine whether personal jurisdiction exists.” Estate of Thomson ex rel. Estate of Rakestraw v. Toyota Motor Corp. Worldwide, 545 F.3d 357, 361 (6th Cir.2008) (citing Calphalon Corp. v. Rowlette, 228 F.3d 718 (6th Cir.2000)). If Ohio law authorizes [629]*629jurisdiction over Defendant, the Court must then “determine whether that authorization comports with the Due Process Clause of the Fourteenth Amendment.” Id. (citing Brunner v. Hampson, 441 F.3d 457 (6th Cir.2006)); see also Schneider, 669 F.3d at 699 (stating that because “Ohio’s long-arm statute is not coterminous with federal constitutional limits[,]” plaintiff “must demonstrate that both due process and Ohio’s long-arm statute are satisfied”).

In the absence of an evidentiary hearing, plaintiffs “burden is merely that of making a prima facie showing that personal jurisdiction exists[,]” and the court “must consider the pleadings and affidavits in the light most favorable to the plaintiff.” Serras v. First Tenn. Bank Nat’l Ass’n, 875 F.2d 1212, 1214 (6th Cir.1989) (citations omitted). Where, however, “ ‘plaintiff has received all of the discovery it sought with respect to personal jurisdiction and there does not appear to be any real dispute over the facts relating to jurisdiction,’ the prima facie ‘proposition loses some of its significance.’ ” Conn v. Zakharov, 667 F.3d 705, 711 (6th Cir.2012) (citations omitted).

Here, neither party requested an evidentiary hearing, and while IPC was granted leave to depose Goldschmidt, such deposition apparently never occurred. Accordingly, the Court will employ the standard requiring IPC to make a prima facie showing of personal jurisdiction.

A. Ohio’s Long-Arm Statute

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Bluebook (online)
872 F. Supp. 2d 624, 2012 U.S. Dist. LEXIS 73228, 2012 WL 1902557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-paper-co-v-goldschmidt-ohsd-2012.