Johnson v. AMERICAN LEATHER SPECIALITIES CORP.

565 F. Supp. 2d 1015, 2008 U.S. Dist. LEXIS 54195, 2008 WL 2780912
CourtDistrict Court, N.D. Iowa
DecidedJuly 16, 2008
DocketC06-3073-MWB
StatusPublished
Cited by2 cases

This text of 565 F. Supp. 2d 1015 (Johnson v. AMERICAN LEATHER SPECIALITIES CORP.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. AMERICAN LEATHER SPECIALITIES CORP., 565 F. Supp. 2d 1015, 2008 U.S. Dist. LEXIS 54195, 2008 WL 2780912 (N.D. Iowa 2008).

Opinion

MEMORANDUM OPINION AND ORDER REGARDING THIRD PARTY DEFENDANT’S MOTION TO DISMISS

MARK W. BENNETT, District Judge.

TABLE OF CONTENTS

I. INTRODUCTION AND BACKGROUND .1019

A. Procedural Background.1019

B. Factual Background.1019

II. LEGAL ANALYSIS.1020

A. Legal Standards For Rule 12(b)(2) And Personal Jurisdiction.1020

B. Personal Jurisdiction Analgsis.1023

1. Ultra Marketing’s contacts with Iowa.1023 2. Nature, qualitg and quantity of contacts.1023

3. The relation of the cause of action to contacts.1024

4. Interest of forum state in providing a forum.1026

5. The convenience of the parties.1026

6. Conclusion.1027

III. CONCLUSION .1027

*1019 I. INTRODUCTION AND BACKGROUND

A. Procedural Background

On November 6, 2006, plaintiffs Vincent R. Johnson and Julie Johnson (collectively “the Johnsons” unless otherwise indicated) filed a complaint against defendants/third-party plaintiffs American Leather Specialties Corp. (“American Leather”) and Shop-ko Stores, Inc. (“Shopko”) alleging eight causes of action related to injuries sustained by plaintiff Vincent Johnson when a dog leash failed, causing the leash’s cord to snap back, striking Vincent in the left eye. 1 It is alleged that Vincent purchased the dog leash from defendant/third-party plaintiff Shopko and that defendant/third-party plaintiff American Leather designed and/or manufactured and distributed the leash under the trademark, “Canine Country.” Compl. at ¶ 4. The Complaint alleges that this court has subject matter jurisdiction by virtue of diversity of citizenship of the parties, 28 U.S.C. § 1332.

On January 29, 2008, defendants/third-party plaintiffs Shopko and American Leather filed a third-party complaint against third-party defendant Ultra Marketing Corporation (“Ultra Marketing”) for contribution. On January 31, 2008, defendants/third-party plaintiffs Shopko and American Leather filed an amended third-party complaint against third-party defendant Ultra Marketing for contribution. Third-party defendant Ultra Marketing subsequently filed a Motion to Dismiss (Doc. No. 24). In its motion, third-party defendant Ultra Marketing asserts that it does not have sufficient minimum contacts with the State of Iowa so as to satisfy the Due Process Clause of the . United States Constitution. Defendants/third-party plaintiffs Shopko and American Leather have filed a timely resistance to third-party defendant Ultra Marketing’s Motion to Dismiss.

B. Factual Background

The following factual background is based on the allegations of defendants/third-party plaintiffs Shopko and American Leather’s amended third-party complaint and the affidavits attached to the parties’ briefs. 2

Ultra Marketing Corporation is a Minnesota Corporation and is authorized to do business in Minnesota. Ultra Marketing is a marketing representative for a number of Chinese companies who are distributors of goods manufactured by other Chinese companies. As a marketing representative for those Chinese companies, Ultra Marketing provides potential purchasers of goods from a Chinese distributor with information concerning the goods that may be purchased from that distributor. If the potential purchaser decides that it wishes to place an order with the Chinese distributor represented by Ultra Marketing, Ultra Marketing will facilitate placement of the purchase order with the Chinese distributor and will facilitate com *1020 munication between the Chinese distributor and the purchaser with respect to any purchase order submitted to the Chinese distributor. Ultra Marketing does not have authority to bind those Chinese distributors with which it has a marketing relationship to a binding contract. All purchase and sale agreements are entered into directly by and between the purchaser and the Chinese distribution company.

Ultra marketing is a marketing representative for a Chinese distributor named Jiangsu Namkwong Industries of Nanjing, China. Jiangsu Namkwong Industries distributes, inter alia, pet supplies manufactured by Chinese manufacturers. Ultra Marketing has facilitated communications between Jiangsu Namkwong Industries and defendant/third-party plaintiff American Leather concerning American Leather’s purchase of pet supplies from Jiangsu Namkwong Industries.

The dog leash at the center of this case was designed and manufactured by J.J. Hao, Jiangsu Namkwong Industries. Defendant/third-party plaintiff American Leather purchased the leash through Ultra Marketing. American Leather distributed the leash to defendant/third-party plaintiff Shopko, who, in turn, sold it to plaintiff Vincent Johnson. American Leather purposefully marketed its products, including the dog leash in this case, to mass merchants and retailers in many states, including Iowa. American Leather, by and through its marketing representatives, informed Ultra Marketing that it would be marketing its products in and throughout the United States.

Neither American Leather, Jiangsu Namkwong Industries or Ultra Marketing had any contact with the State of Iowa in connection with American Leather’s purchase of the leash from Jiangsu Nam-kwong Industries. Ultra Marketing’s only involvement in the transaction between American Leather and Jiangsu Namkwong Industries was limited to meetings with American Leather in New York and/or telephone, e-mail, or regular mail communications between Ultra Marketing, from its offices in Minnesota and American Leather at its offices in the State of New York, or Jiangsu Namkwong Industries at its place of business in Nanjing, China. All transactions involving American Leather in which Ultra Marketing has been involved have not included any activity by Ultra Marketing in Iowa. Ultra Marketing owns no property in Iowa, it has no employees in Iowa, it has no bank accounts in Iowa, and has no place of business in Iowa. Ultra Marketing is not registered to do business in Iowa.

Ultra Marketing’s only contact with the State of Iowa has been in connection with an Iowa corporation, Apache Hose and Belting Company (“Apache Hose”) of Cedar Rapids, Iowa. Since 2004, Ultra Marketing has provided marketing representative services to a Chinese company, Shanghai Cartee Industrial and Trading Company (“SCITC”). In its capacity as a marketing representative for SCITC, Ultra Marketing has met three times with Apache Hose at its offices in Cedar Rapids, Iowa, in connection with Apache Hose’s purchase of goods in China from SCITC. In addition to the three meetings, Ultra Marketing has communicated with Apache Hose from Ultra Marketing’s offices in Minnesota by telephone, fax, email, and regular mail.

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Bluebook (online)
565 F. Supp. 2d 1015, 2008 U.S. Dist. LEXIS 54195, 2008 WL 2780912, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-american-leather-specialities-corp-iand-2008.