International Truck & Engine Corp. v. Dawson International Inc.

216 F. Supp. 2d 754, 63 U.S.P.Q. 2d (BNA) 1455, 2002 U.S. Dist. LEXIS 16197, 2002 WL 1769257
CourtDistrict Court, N.D. Indiana
DecidedApril 12, 2002
Docket2:01-cv-00374
StatusPublished
Cited by4 cases

This text of 216 F. Supp. 2d 754 (International Truck & Engine Corp. v. Dawson International Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Truck & Engine Corp. v. Dawson International Inc., 216 F. Supp. 2d 754, 63 U.S.P.Q. 2d (BNA) 1455, 2002 U.S. Dist. LEXIS 16197, 2002 WL 1769257 (N.D. Ind. 2002).

Opinion

MEMORANDUM OF DECISION AND ORDER

WILLIAM C. LEE, Chief Judge.

Presently before the court is Defendant Dawson International, Inc.’s (“Dawson’s”) “Motion to Dismiss for Improper Venue, or in the Alternative, To Transfer” filed on January 2, 2002. Plaintiffs, (collectively, “International”) responded on February 22, 2002 to which Dawson replied on March 7, 2002. For the following reasons, Dawson’s Motion to DISMISS will be DENIED and it’s alternative Motion to Transfer will also be DENIED.

DISCUSSION

International filed this claim for patent infringement against Dawson seeking monetary damages, attorneys fees and costs and a permanent injunction prohibiting further acts of infringement. The Complaint alleges infringement of five United States Patents, all involving truck hoods for specific International Truck models, including: No. 4,971,172 issued November 20, 1990 and entitled “Truck Hood Engine Air Induction System”; No. 5,054, 567 issued October 8, 1991 and entitled “Truck Hood Reinforcement System”; Nos. Des. 307,126, Des. 328,273, Des. SOT-OOS issued on April 10, 1990, July 28, 1992, and March 10, 1998, respectively and each bearing the title “Exterior Shell of a Vehicle Hood.”

International Truck and Engine Corporation, LLC, formerly known as Navistar International Transportation Corp., is a Delaware corporation with its principal place of business in Warrenville, Illinois. International Truck does business in this judicial district at its facility located at 2911 Meyer Road, Fort Wayne, Indiana. International Truck Intellectual Property Co., LLC is a wholly owned subsidiary of International Truck and is also a Delaware *756 corporation with its principal place of business in Warrenville, Illinois. International Truck and Engine Corporation Canada is also a wholly owned subsidiary of International Truck and is an Ontario, Canada corporation with its principal place of business in Hamilton, Ontario.

Defendant Dawson is a Texas corporation with its principal place of business in Dallas, Texas. It is a small business operation selling collision related replacement new body parts for a wide variety of both imported and domestic trucks. (Decl. of Donald Cameron, ¶ 2).

Thus far, the only suggestion of any connection between this lawsuit and this district is the fact that International Truck conducts business in this judicial district. For this reason, Dawson has filed a motion to dismiss or in the alternative to transfer for improper venue. In support of its motion, it presents the following facts:

Dawson ships about 95% of its parts directly from its Dallas location to collision repair businesses and truck dealers located all over the country. (Id.). These parts are sold through a catalog distributed by mail to Dawson’s potential customers. (Id.). The remaining 5% of its parts are sold to dealers in New Jersey, New Hampshire, Georgia, Iowa, and California. These dealers serve local areas and do not engage in any significant re-shipping or marketing of Dawson’s products to customers in Indiana.

Dawson utilizes a computer system to maintain records of sales. According to Cameron, Dawson’s president, he has reviewed the sales records for the preceding five years and has found that Dawson has not sold any of the hoods in this judicial district that resemble any of the truck hoods identified in the five patents which are the subject of this lawsuit. Dawson did sell one International style hood in this judicial district but it was for a model not covered by any of the patents in this lawsuit. Dawson has also sold 44 other make and model hoods in this judicial district out of 9,282 hoods sold nationwide in the past five years (a percentage of .47%)

Dawson owns no real estate, has no facilities and no employees located in the Northern District of Indiana. None of its directors, officers or shareholders reside in this district nor is Dawson licensed or registered to do business in Indiana. Dawson does advertise through a catalog mailed to customers nationwide but does not advertise in any publications specifically targeting consumers in Indiana. Dawson has no salesmen or sales representatives attending to customers in Indiana.

International does not dispute these assertions but responds with the addition of the following facts:

— For the last eight years, Dawson has advertised in trade publications with circulation through Indiana;
— Dawson’s largest customer in Indiana is S & J Salvage in Fort Wayne which has steadily purchased products from Dawson for five years;
— Dawson distributed its catalog throughout Indiana and in Fort Wayne to persons requesting such catalogs. (Cameron Dep. pp. 90-91). The catalogs included as products offered for sale truck hoods which include hoods allegedly protected by the patents involved in this case;
— Dawson communicates with customers in this judicial district through its toll free telephone number and its Internet website. The Internet website contains a form customers may fill out to email comments to Dawson or to request catalogs. (Cameron Dep. p. 85).

As indicated at the outset, Dawson has filed a motion to dismiss or in the alternative to transfer asserting that venue properly lies in the Northern District of Texas, Dallas Division. The statute governing venue for patent infringement ae- *757 tions provides, in pertinent part, that venue is proper in a patent infringement suit “where the defendant resides.... ” 28 U.S.C. § 1400(b) (1993). The statute that defines the residence of a corporation for purposes of venue determinations provides, in pertinent part, that “a defendant that is a corporation shall be deemed to reside in any judicial district in which it is subject to personal jurisdiction at the time the action is commenced.” 28 U.S.C. § 1391(c) (1993). Based upon these provisions, the concepts of venue and personal jurisdiction merge into a single inquiry, that is, whether personal jurisdiction exists in the judicial district at the time the action was commenced. See Id.

Plaintiffs bear the burden of demonstrating personal jurisdiction. Central States, Southeast and Southwest Areas Pension Fund v. Reimer Express World Corp., 230 F.3d 934, 939 (7th Cir.2000), citing RAR, Inc. v. Turner Diesel, Ltd., 107 F.3d 1272, 1276 (7th Cir.1997). In order to meet this burden, the plaintiff must provide sufficient evidence to establish a prima facie case of personal jurisdiction. Michael J. Neuman & Assocs., Ltd. v. Florabelle Flowers, Inc., 15 F.3d 721, 724 (7th Cir.1994).

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216 F. Supp. 2d 754, 63 U.S.P.Q. 2d (BNA) 1455, 2002 U.S. Dist. LEXIS 16197, 2002 WL 1769257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-truck-engine-corp-v-dawson-international-inc-innd-2002.