James Avery Craftsman, Inc. v. Lugosch

486 F. Supp. 2d 595, 2007 U.S. Dist. LEXIS 34211, 2007 WL 1258525
CourtDistrict Court, W.D. Texas
DecidedMarch 19, 2007
Docket5:06-cv-01064
StatusPublished

This text of 486 F. Supp. 2d 595 (James Avery Craftsman, Inc. v. Lugosch) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James Avery Craftsman, Inc. v. Lugosch, 486 F. Supp. 2d 595, 2007 U.S. Dist. LEXIS 34211, 2007 WL 1258525 (W.D. Tex. 2007).

Opinion

ORDER GRANTING MOTION TO DISMISS

ORLANDO L. GARCIA, District Judge.

Before the Court is defendants’ motion to dismiss plaintiffs complaint for lack of personal jurisdiction. (Docket no. 4.) Plaintiff James Avery Craftsman, Inc. filed its complaint seeking a declaration of non-infringement of defendants’ jewelry designs. Ronna Lugosch is a resident of Maine and operates her retail jewelry gallery in Round Pond, Maine. Her business, Lugosch Designs, is a Maine corporation with its principal place of business there. Plaintiff seeks to establish jurisdiction over defendants through principles of general jurisdiction.

When a nonresident defendant presents a motion to dismiss for lack of personal jurisdiction, the plaintiff bears the burden of establishing the district court’s jurisdiction over the nonresident. Wilson v. Belin, 20 F.3d 644, 648 (5th Cir.1994); Stuart v. Spademan, 772 F.2d 1185, 1192 (5th Cir.1985). When the district court rules on a motion to dismiss for lack of jurisdiction without conducting an evidentiary hearing, the plaintiff may bear his burden by presenting a prima facie case of jurisdiction. Wilson, 20 F.3d at 648. Uncontroverted allegations in the plaintiffs complaint will be taken as true, and conflicts between the facts contained in the parties’ affidavits will be resolved in the plaintiffs favor for purposes of determining whether a prima facie case for personal jurisdiction exists. Id.

In a federal diversity suit, a nonresident defendant is subject to personal jurisdiction to the extent permitted by the laws of the forum state and constitutional due process. Command-Aire Corp. v. Ontario Mechanical Sales & Serv. Inc., 963 F.2d 90, 93 (5th Cir.1992). The Texas Long Arm statute reaches as far as is constitutionally permissible, therefore, the personal jurisdiction question is simply a constitutional due process inquiry. Id.; see also Hall v. Helicopteros Nacionales De Colombia, S.A., 638 S.W.2d 870, 872 (Tex.1982), rev’d on other grounds, 466 U.S. 408, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984). The due process inquiry is governed by federal law and requires the satisfaction of two elements: (1) the nonresident must have some minimum contact with the forum which results from an affirmative act on his part, and (2) it must be *598 fair and reasonable to require the nonresident to defend the suit in the forum state. D.J. Investments, Inc. v. Metzeler Motorcycle Tire Agent Gregg, Inc., 754 F.2d 542, 545 (5th Cir.1985).

When the cause of action does not arise from or relate to the foreign corporation’s purposeful conduct within the forum state, due process requires that there be continuous and systematic contacts between the State and the foreign corporation to support an exercise of “general” personal jurisdiction by that forum. Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 104 S.Ct. 1868, 1872-73, 80 L.Ed.2d 404 (1984). More contact is required with the forum state because the state has no direct interest in the cause of action. To exercise general jurisdiction, the court must determine whether the contacts are sufficiently systematic and continuous to support a reasonable exercise of jurisdiction. Holt Oil & Gas Corp. v. Harvey, 801 F.2d 773, 777 (5th Cir.1986).

Plaintiff advances three arguments in support of its argument that defendants’ contacts with Texas are continuous and systematic. These involve defendants’ “use of their websites,” relationships with Texas jewelers, and sales to Texas residents.

Use of websites.

Through the use of an internet archive called the “Wayback Machine,” plaintiffs counsel obtained archived webpages of defendants’ websites as far back as 2001 and 2002 that offer her jewelry for sale over the telephone or via email. Customers may not purchase items directly through the websites. These websites are therefore passive websites in that they merely allow the owner to post advertising information on the internet. As such, they are not sufficient to establish personal jurisdiction. Revell v. Lidov, 317 F.3d 467, 470 (5th Cir.2002); Hanson Pipe & Products, Inc. v. Bridge Technologies, LLC, 351 F.Supp.2d 603, 615 (E.D.Tex.2004). This is because while “the maintenance of a website is, in a sense, a continuous presence everywhere in the world,” their contacts “with Texas are not in any way ‘substantial.’ ” Revell, 317 F.3d at 471. The fact that defendants maintain a website where potential Texas customers, along with potential customers anywhere else in the world who have internet access, can contact defendants by phone or email to purchase jewelry does not subject defendants to personal jurisdiction.

Essentially, AAAA maintains a website that posts information about its products and services. While the website provides users with a printable mail-in order form, AAAA’s toll-free telephone number, a mailing address and an electronic mail (“e-mail”) address, orders are not taken through AAAA’s website. This does not classify the website as anything more than passive advertisement which is not grounds for the exercise of personal jurisdiction.

Mink v. AAAA Development LLC, 190 F.3d 333, 336-37 (5th Cir.1999).

Relationships with Texas jewelers.

A legal secretary with plaintiffs attorney’s law firm visited a jewelry retailer in Austin, Texas and observed that defendants’ “Mother’s Love” designs were offered for sale. Defendants present evidence that since 1997 their designs are licensed to, manufactured by, and distributed by Stuller Settings, Inc., a completely unrelated entity. Stuller distributes defendants’ designs to retailers and defendants have no input or control over how Stuller markets their designs or to which retailers they distribute them. Thus, it is Stuller who is present and doing business in Texas, not defendants. See Hanson Pipe & Products, Inc., 351 F.Supp.2d 603, *599 613 (“Where, as here, a foreign [parent] corporation merely sells its products to a resident subsidiary, the contacts are not significant enough to justify general jurisdiction.”). Here, of course, the contacts are even more attenuated than in Hanson Pipe

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486 F. Supp. 2d 595, 2007 U.S. Dist. LEXIS 34211, 2007 WL 1258525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-avery-craftsman-inc-v-lugosch-txwd-2007.