Knoll, Inc. v. Senator International Limited

CourtDistrict Court, N.D. Illinois
DecidedApril 21, 2020
Docket1:20-cv-02458
StatusUnknown

This text of Knoll, Inc. v. Senator International Limited (Knoll, Inc. v. Senator International Limited) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knoll, Inc. v. Senator International Limited, (N.D. Ill. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA

KNOLL, INC. : CIVIL ACTION : v. : NO. 19-4566 : SENATOR INTERNATIONAL : LIMITED :

MEMORANDUM KEARNEY, J. April 21, 2020 Office furniture competitors dispute whether a United Kingdom company infringes on a United States company’s patent for a version of an office table. The United Kingdom company sells its products to its United States affiliate which, in turn, sells this table through distributors in the United States. The United States company holding the patent sues only the United Kingdom company; it chose not to sue its United States affiliate. The United Kingdom company now moves to dismiss arguing we lack personal jurisdiction over it in Pennsylvania, but a federal court in Illinois may exercise personal jurisdiction. The United States company declined our offer for jurisdictional discovery, withdrew its arguments for general jurisdiction, and now argues only we may exercise personal jurisdiction under the federal long-arm statute, Federal Rule of Civil Procedure 4(k)(2), which applies if there is no District in the United States which could exercise personal jurisdiction. Limited to this assertion of specific jurisdiction, we agree with the United Kingdom company as to the inapplicability of Rule 4(k)(2) and transfer this case to the United States District Court for the Northern District of Illinois. I. Background. Knoll, Inc. develops, sells, and markets office furniture.1 It owns U.S. Patent No. D839,638 for the PIXEL line of tables.2 Its patent covers the C-Leg version of the PIXEL table.3 Knoll alleges competitor Senator International Limited designed its Array table to copy the design of Knoll’s PIXEL table with knowledge the Array table infringes Knoll’s patent.4

Senator International Limited is a foreign private limited company incorporated and with its principal place of business in the United Kingdom.5 It develops, manufactures, distributes, and imports furniture products.6 Senator International Limited sells its allegedly infringing Array table products to its United States affiliate, Senator International, Inc., which, in turn, sells the table products through distributors in the United States including one in this District.7 The issue is whether we can exercise personal jurisdiction over the United Kingdom- based Senator International Limited. In response to Senator International Limited moving to dismiss the complaint for lack of personal jurisdiction, we ordered parties file memoranda describing whether we should allow Knoll thirty days of expedited jurisdictional discovery.8 Both parties opposed jurisdictional discovery.9 Knoll asserted Federal Rule of Civil Procedure

4(k)(2) allows our exercise of personal jurisdiction in its memorandum opposing jurisdictional discovery.10 Senator International Limited “disagree[d] with Plaintiff’s representation [Rule] 4(k)(2) establishes personal jurisdiction and [would] respond accordingly if and when Plaintiff responds to Defendant’s Motion to Dismiss … and/or files an amended complaint.”11 We proceed without the benefit of additional information from jurisdictional discovery. In its amended Complaint, Knoll pleaded Senator International Limited has sufficient contacts with our District to support our exercise of general and specific jurisdiction.12 Knoll did not plead Rule 4(k)(2) as a basis for personal jurisdiction.13 Senator International Limited moved to dismiss for lack of personal jurisdiction, arguing its lack of contacts with Pennsylvania prevent us from adjudicating Knoll’s claims against it.14 Senator International Limited included declarations swearing “[t]he Accused Product is exclusively marketed, imported, and sold in the United States by Senator International, Inc. [Defendant’s non-party U.S. subsidiary]; however,

Senator International, Inc. has not engaged in any of those activities in the State of Pennsylvania.”15 Knoll then withdrew its claim we have general jurisdiction over Senator International Limited.16 It also withdrew claims of specific jurisdiction over Senator International Limited except for the applicability of Federal Rule of Civil Procedure 4(k)(2).17 Knoll relies on the Rule 4(k)(2) to argue we may exercise personal jurisdiction due to Senator International Limited’s lack of contacts with any state. In its reply, Senator International Limited argues Rule 4(k)(2) cannot apply because district courts in Illinois and Ohio could properly exercise personal jurisdiction.18 II. Analysis Senator International Limited (“Senator UK”) moves to dismiss arguing neither it nor

Senator International, Inc. (“Senator US”) are incorporated or maintain a regular and established place of business in Pennsylvania, and neither sold the allegedly infringing product in Pennsylvania.19 Knoll responds we may exercise specific personal jurisdiction over Senator UK under Federal Rule of Civil Procedure 4(k)(2).20 Senator UK replies Rule 4(k)(2) does not apply because Illinois or Ohio could properly exercise specific personal jurisdiction over it.21 We agree with Senator UK. We may not proceed as we lack personal jurisdiction but we transfer to the Northern District of Illinois under 28 U.S.C. § 1631. Knoll bears the burden of presenting facts establishing personal jurisdiction over Senator UK.22 A motion to dismiss for lack of personal jurisdiction “is inherently a matter which requires resolution of factual issues outside the pleadings.”23 Once Senator UK raised its jurisdictional defense, Knoll had the burden to “prov[e] by affidavits or other competent evidence that jurisdiction is proper.”24 Knoll must present “actual proofs, not mere allegations.”25 Knoll declined our offer of jurisdictional discovery. It did not request a

jurisdictional evidentiary hearing. Because we base our determination on affidavits, Knoll “need only establish a prima facie case of personal jurisdiction.”26 We also must accept Knoll’s allegations as true and “construe disputed facts” in its favor.27 The United States Supreme Court recognizes two types of personal jurisdiction: general and specific.28 While Knoll pleaded general jurisdiction as a basis for our exercise of jurisdiction, Knoll withdrew this argument in its response to the motion to dismiss.29 Though Knoll does not defend its pleading of our specific jurisdiction based on Pennsylvania contacts in response to the motion to dismiss, instead solely arguing jurisdiction under Rule 4(k)(2), we briefly analyze specific jurisdiction based on Senator UK’s contacts with Pennsylvania before discussing our inability to apply Rule 4(k)(2).

In analyzing personal jurisdiction issues in patent cases, we apply the law of the Court of Appeals for the Federal Circuit.30 In the specific jurisdiction analysis based on the defendant’s contacts with the state where the district court sits, the Federal Circuit defers to the law of the relevant state and federal courts to interpret the state’s long-arm statute.31 But we rely on Federal Circuit law to assess whether jurisdiction comports with the limitations of the due process clause.32 For the analysis under Rule 4(k)(2), “the Federal Circuit applies its own law to the entirety of the analysis.”33 A. We cannot exercise specific jurisdiction based on Senator UK’s contacts with Pennsylvania.

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Knoll, Inc. v. Senator International Limited, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knoll-inc-v-senator-international-limited-ilnd-2020.