Jane Doe v. Webgroup Czech Republic, A.S.

93 F.4th 442
Court of Appeals for the Ninth Circuit·Decided February 14, 2024·No. 22-55315·Published·Cited by 13 cases

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

JANE DOE, on behalf of herself and No. 22-55315 all others similarly situated, D.C. No. 2:21-cv- Plaintiff-Appellant, 02428-VAP-SK

v. ORDER AND AMENDED WEBGROUP CZECH REPUBLIC, OPINION A.S.; WGCZ HOLDING, A.S.; WGCZ LIMITED, S.R.O.; NKL ASSOCIATES, S.R.O.; TRAFFIC F, S.R.O.; GTFLIX TV, S.R.O.; FTCP, S.R.O.; VS MEDIA, INC.; HC MEDIA, S.R.O.; HC MULTIMEDIA LLC; FBP MEDIA, S.R.O.; STEPHANE MICHAEL PACAUD; DEBORAH MALORIE PACAUD; SERVERSTACK, INC.; DIGITAL OCEAN HOLDINGS, INC.; DIGITAL OCEAN, LLC, FKA Digital Ocean, Inc.,

Defendants-Appellees.

Appeal from the United States District Court for the Central District of California Virginia A. Phillips, District Judge, Presiding

Argued and Submitted December 9, 2022 Pasadena, California

Filed January 2, 2024 Amended February 14, 2024

Before: Milan D. Smith, Jr., Daniel P. Collins, and Kenneth K. Lee, Circuit Judges.

Order; Opinion by Judge Collins; Concurrence by Judge Lee

SUMMARY *

Personal Jurisdiction

The panel reversed in part and vacated in part the district court’s dismissal, for lack of personal jurisdiction, of claims asserted against 11 foreign-based defendants in a putative class action alleging that defendants violated federal and California law by participating in, or benefitting from, the distribution of videos on the internet that depicted the sexual abuse of Plaintiff and of other victims of childhood-sex- trafficking. At least four of the videos depicting Plaintiff were uploaded to two pornography websites, which use English as their default language but are respectively operated by two related Czech entities, Defendants WebGroup Czech * This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. DOE V. WEBGROUP CZECH REPUBLIC, A.S. 3

Republic, a.s. and NKL Associates, s.r.o. Both entities have their principal place of business in the Czech Republic, and neither has offices, conducts business operations, or is registered to do business in the United States. Plaintiff filed this putative class action against WGCZ, NKL, and nine additional foreign defendants (collectively, the “Foreign Defendants”), and five U.S.-based defendants. Plaintiff contended that personal jurisdiction over the Foreign Defendants is authorized by Federal Rule of Civil Procedure 4(k)(2). Whether personal jurisdiction exists under Rule 4(k)(2) turns on whether the requirements of the Due Process Clause are satisfied. Because Plaintiff did not contend that the Foreign Defendants’ contacts with the United States were sufficient to give rise to general jurisdiction, the sole potential basis for personal jurisdiction was specific jurisdiction over the particular matters at issue in this lawsuit. The panel held that the district court erred in holding that it lacked specific personal jurisdiction against WGCZ and NKL under the requisite three-part due process test because (1) Plaintiff established a prima facie case that WGCZ and NKL purposefully directed their websites at the United States, (2) her claims seek redress for harms that arise from WGCZ’s and NKL’s forum-related activities in targeting their websites towards the U.S. market, and (3) WGCZ and NKL failed to make a compelling showing that the exercise of personal jurisdiction would be unreasonable. The panel therefore reversed the district court’s dismissal of the action against WGCZ and NKL for lack of personal jurisdiction. Because the district court dismissed the remaining nine Foreign Defendants solely on the ground that there was no personal jurisdiction over WGCZ and

NKL, the panel vacated the dismissal of those additional defendants. The panel instructed the district court to address on remand the remaining unresolved issues concerning whether personal jurisdiction may be asserted against those additional defendants. Concurring, Judge Lee wrote separately to state that it would have been prudent for the district court to have ordered very limited jurisdictional discovery here, which would have tethered the district court’s analysis more tightly onto this circuit’s personal jurisdiction framework.

COUNSEL

Mark B. Schoeller (argued), Kevin D. Kent, and Vanessa L. Huber, Clark Hill PLC, Philadelphia, Pennsylvania; Abbas Kazerounian and Mona Amini, Kazerouni Law Group APC, Costa Mesa, California; Benjamin W. Bull, Peter A. Gentala, and Dani B. Pinter, National Center on Sexual Exploitation, Washington, D.C.; Kimberly L. Adams, Levin Papantonio Rafferty Proctor Buchanan O’ Brien Barr & Mougey PA, Pensacola, Florida; for Plaintiff-Appellant. Derek L. Shaffer (argued), Quinn Emanuel Urquhart & Sullivan LLP, Washington, D.C.; Michael T. Zeller, Michael E. Williams, Diane Cafferata, and Dylan C. Bonfigli, Quinn Emanuel Urquhart & Sullivan LLP, Los Angeles, California; Victor H.J. Jih, Wilson Sonsini Goodrich & Rosati, Los Angeles, California; Brian M. Willen, Wilson Sonsini Goodrich & Rosati PC, New York, New York; for Defendants-Appellees. DOE V. WEBGROUP CZECH REPUBLIC, A.S. 5

ORDER

The slip opinion filed on January 2, 2024 is amended by adding a footnote at the end of the first full paragraph on page 18, with the footnote to read as follows:

We reject Defendants’ contention that we may not consider the allegations and evidence concerning CDNs in assessing whether Plaintiff made a prima facie showing of express aiming. Plaintiff expressly pleaded facts concerning Defendants’ use of U.S.-based CDNs in the operative complaint, and Defendants therefore squarely addressed that subject in their motion to dismiss and supporting declarations. In her opposition, Plaintiff then expressly relied on the CDNs as one of Defendants’ relevant contacts with the United States. Plaintiff again raised the CDNs in her motion to reconsider the district court’s dismissal order, and, although Defendants argued that reconsideration was unwarranted, they also argued on the merits that further consideration of the CDNs would not change the “express aiming” analysis. In declining to specifically address the significance of the CDNs in evaluating the express-aiming factor, the district court emphasized that the relevant substantive discussion of how the CDNs gave rise to personal jurisdiction was contained in the section of Plaintiff’s opposition addressing the “arising out of” factor and was not also included in the section addressing the

“express aiming” factor. Even assuming that technical observation to be correct, we nonetheless conclude that Plaintiff sufficiently raised the issue below to permit this court, on de novo review, to address the merits of the parties’ arguments concerning the significance of the CDNs with respect to the express-aiming factor. See Menken v. Emm, 503 F.3d 1050, 1058 n.4 (9th Cir. 2007).

An amended version of the opinion, reflecting this change, accompanies this order. The concurrence of Judge Lee is unchanged. With the opinion as amended, the panel has unanimously voted to deny the petition for panel rehearing and rehearing en banc filed on January 16, 2024 (Dkt. No. 56). The full court has been advised of the petition for rehearing en banc and no judge of the court has requested a vote on whether to rehear the matter en banc. Fed. R. App. P. 35. Accordingly, the petition for panel rehearing and rehearing en banc is DENIED. No further petitions for rehearing or rehearing en banc will be entertained. DOE V. WEBGROUP CZECH REPUBLIC, A.S. 7

OPINION

COLLINS, Circuit Judge:

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Jane Doe v. Webgroup Czech Republic, A.S., 93 F.4th 442 (9th Cir. 2024).

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