Jacobs Trading, LLC v. Ningbo Hicon International Industry Co.

872 F. Supp. 2d 838, 2012 WL 1959565, 2012 U.S. Dist. LEXIS 74330
CourtDistrict Court, D. Minnesota
DecidedMay 30, 2012
DocketCivil No. 11-354 (JNE/AJB)
StatusPublished
Cited by7 cases

This text of 872 F. Supp. 2d 838 (Jacobs Trading, LLC v. Ningbo Hicon International Industry Co.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacobs Trading, LLC v. Ningbo Hicon International Industry Co., 872 F. Supp. 2d 838, 2012 WL 1959565, 2012 U.S. Dist. LEXIS 74330 (mnd 2012).

Opinion

ORDER

JOAN N. ERICKSEN, District Judge.

Plaintiff Jacobs Trading, LLC (“Jacobs”) brought this action against Defendant Ningbo Hicon International Industry Co., Ltd. (“Hicon”), asserting claims of common law fraud and consumer fraud related to Plaintiffs purchase of allegedly counterfeit “Comobar” brand espresso machines from Defendant for $139,500. Hi-con moved to dismiss for lack of personal jurisdiction and/or improper venue. On February 17, 2012, the Court permitted Jacobs to conduct limited jurisdictional discovery and allowed the parties to supplement their briefs after discovery was completed. For the reasons stated below, the Court now grants Hicon’s Motion to Dismiss.

I. BACKGROUND

A. The Transaction

Jacobs is a Minnesota LLC with its principal place of business in Hopkins, Minnesota.1 Hicon is a company formed under the laws of the People’s Republic of China and has its principal place of business in China. On November 2, 2009, Jacobs’ agent, Michael Marcotte,2 called [841]*841Hicon to inquire about what overstock goods Hicon might have available to purchase. Marcotte spoke with Hicon employee David Hu and told him that he represented Jacobs, a Minnesota wholesaler interested in purchasing goods for resale. Marcotte followed this initial phone call with an email inquiring about the availability of overstock goods. Hu allegedly represented to Marcotte that Hicon had an overstock of authentic “Comobar” coffeemakers that it was authorized to sell. Hu made an opening offer to Marcotte for the sale and purchase of the coffeemakers. In response, on November 5, 2009, Marcotte traveled to Hicon’s warehouse to inspect the coffeemakers. Marcotte met Hu and gave him his business card indicating that Jacobs is a Minnesota company. Marcotte and Hicon entered into negotiations for the sale of the coffeemakers. Jacobs alleges that during these negotiations, Hu made false statements which induced Jacobs to purchase the allegedly counterfeit products. Hicon arranged for the products to be shipped to Minnesota, “F.O.B. Ningbo,” through CHRistal Lines, a shipping eompany/freight forwarder.3 The invoice was addressed to Jacobs’ address in Minnesota.

B. Hicon’s Other Contacts with Minnesota

Jacobs states that it “understands from third party retailers and vendors that Hi-con sells a substantial quantity of goods into the State of Minnesota.” PL’s Mem. Opp. 4. For support, Jacobs refers to the Affidavit of Keith Carpenter, which states that “Jacobs has relationships with various retailers and vendors throughout the State of Minnesota” and “[tjhrough these retailers, I have been told that [Hicon] sells a substantial amount of goods into Minnesota.” Carpenter Aff. ¶¶ 3, 4. In November 2011, Hicon allegedly engaged in one transaction with another Minnesota-based purchaser, involving the sale of chest freezers.

Hicon has never maintained an office, manufacturing plant or facility in Minnesota, does not conduct meetings in Minnesota, and does not maintain any bank accounts in Minnesota. It does not own any property in Minnesota, have any employees in Minnesota, or have a phone number or mailing address in Minnesota. It is not registered to conduct business in Minnesota and has never been a resident of Minnesota. Hicon does not maintain a registered agent for service in Minnesota and has never sent its employees to Minnesota to transact business on its behalf. It has never executed a contract in Minnesota, nor has it ever executed a contract to be performed in Minnesota. Hicon has never consented or been held to be subject to personal jurisdiction in any Minnesota court.

Hicon does not advertise in the United States and has never specifically directed advertising to a publication soliciting Minnesota companies. It previously advertised through a website located at http://www.hicongj.cc/en/, which stated that some of Hicon’s products “have made it to international supermarkets like WAL-MART, Auchan and Home Depot” and that Hicon “is one of China-based [842]*842strategic partners of home appliance giants like GE, Electrolux and Haier America.” The website also stated that “[a]ll critical equipment was introduced from USA, Japan or Germany” and that Hicon “has the right to handle import and export directly and the products sell to more than 50 countries and regions in Europe, America and Asia.” Further, “[t]he Hicon product series are certified to CCC, ROHS, CB, CE, UL, ETL and GS, some even certified to the Energy Star and NSF of USA.” It appears as though the web address http://www.hicongj.cc/en/ is no longer operational, but Hicon now operates a website located at http://www.hiconchina. trade51.com/. This new website states that Hicon “import[s] key equipment from the USA, Japan and Germany” and that its products “sell well on markets of more than thirty countries and regions, such as the USA....” Neither website targeted residents in any particular country or state. Consumers cannot make orders through the websites, but they can click on a link to email the company. Neither website makes any reference to Hicon’s contacts, if any, with Minnesota.

II. DISCUSSION

To survive a motion to dismiss for lack of personal jurisdiction, a plaintiff must establish a prima facie case that the forum state has personal jurisdiction over the defendant. Digi-Tel Holdings, Inc. v. Proteq Telecomms. (PTE), Ltd., 89 F.3d 519, 522 (8th Cir.1996). A court must view the evidence in the light most favorable to the plaintiff when deciding whether the plaintiff has made the requisite showing. Id. The court must determine whether the exercise of personal jurisdiction over a non-resident defendant complies with the state long-arm statute, and if so, whether it comports with due process. Id. Minnesota’s long-arm statute, Minn.Stat. § 543.19, confers jurisdiction to the fullest extent permitted by due process. Coen v. Coen, 509 F.3d 900, 905 (8th Cir.2007); In re Minn. Asbestos Litig., 552 N.W.2d 242, 246 (Minn.1996). The Court therefore need only consider whether the requirements of due process are satisfied to resolve the jurisdictional challenges. Wessels, Arnold & Henderson v. Nat’l Med. Waste, Inc., 65 F.3d 1427, 1431 (8th Cir. 1995); Valspar Corp. v. Lukken Color Corp., 495 N.W.2d 408, 411 (Minn.1992).

Due process allows a court to exercise personal jurisdiction over a non-resident defendant if the defendant has “certain minimum contacts with [the forum state] such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945) (quoting Milliken v. Meyer, 311 U.S. 457, 463, 61 S.Ct. 339, 85 L.Ed. 278 (1940)). The defendant’s contacts with the state must be such that the defendant “should reasonably anticipate being haled into court there.” World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980). Unilateral activity by one who claims a relationship with the defendant does not satisfy the minimum contacts requirement. Hanson v. Denckla,

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Bluebook (online)
872 F. Supp. 2d 838, 2012 WL 1959565, 2012 U.S. Dist. LEXIS 74330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacobs-trading-llc-v-ningbo-hicon-international-industry-co-mnd-2012.