La Potencia, LLC v. Chandler

CourtDistrict Court, S.D. Florida
DecidedFebruary 1, 2023
Docket9:22-cv-80417
StatusUnknown

This text of La Potencia, LLC v. Chandler (La Potencia, LLC v. Chandler) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
La Potencia, LLC v. Chandler, (S.D. Fla. 2023).

Opinion

SUONUITTEHDE RSTNA DTIESTS RDIICSTTR OIFC TF LCOORUIRDTA

CASE NO. 22-CV-80417-RAR

LA POTENCIA, LLC and YC52, LLC d/b/a CHANDLER BATS,

Plaintiffs,

v.

DAVID CHANDLER, et al.,

Defendants. ________________________________/

ORDER ADOPTING IN PART AND REJECTING IN PART REPORT AND RECOMMENDATION AND DENYING MAXBAT’S MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION

This Order addresses a narrow jurisdictional question: how many shipments must an out- of-state company send into Florida for the exercise of personal jurisdiction over the company to comport with due process? On the facts presented, the Court concludes that Defendant MaxBat Incorporated’s (“Maxbat”) shipment of thirty high performance baseball bats into Florida over the course of nineteen shipments is sufficient, such that the exercise of personal jurisdiction over MaxBat comports with due process. This cause comes before the Court upon United States Magistrate Judge Maynard’s Report and Recommendation (“Report”), [ECF No. 54], filed on November 4, 2022. The Report recommends that the Court grant Defendant MaxBat’s Motion to Dismiss for Lack of Personal Jurisdiction (“Motion”), [ECF No. 23]. See Report at 1. The Report concludes that Florida’s long- arm statute, Fla. Stat. § 48.193, reaches Defendant MaxBat because Plaintiffs are located in Florida and allege that they suffered a trademark injury there. Id. at 7–8. However, the Report recommends this Court grant MaxBat’s Motion because exercising personal jurisdiction over MaxBat in Florida fails to comport with due process. Id. at 8. The Report properly notified Plaintiffs of their right to object to Magistrate Judge Maynard’s findings. Id. at 13. Plaintiffs La Potencia, LLC and YC52, LLC d/b/a Chandler Bats (together, “Plaintiffs”) objected to the Report (“Objections”), [ECF No. 60], on November 17, 2022. Defendant MaxBat filed a Response to Plaintiffs’ Objections (“Response”), [ECF No. 61], on December 1, 2022. The parties do not object to the Report’s conclusion that Florida’s long- arm statute reaches MaxBat, but Plaintiffs object to the Report’s due process analysis. The Court having carefully reviewed the Report, the Objections, the Response, and record, and being otherwise fully advised, it is hereby ORDERED AND ADJUDGED that (1) the Report, [ECF No. 54], is ADOPTED IN PART AND REJECTED IN PART as explained herein; and (2) Defendant MaxBat’s Motion to

Dismiss is DENIED as set forth herein. BACKGROUND This case involves high performance wood baseball bats used primarily by Major League Baseball (“MLB”) players. The intellectual property rights to these particular baseball bats initially belonged to Defendant David Chandler’s former company, RxSport. RxSport surrendered the intellectual property rights to Plaintiff La Potencia after defaulting on a loan it owed to La Potencia. The loan agreement contained a non-compete provision providing that Chandler would not compete with RxSport and La Potencia in any manner or solicit for employment any employee or consultant of RxSport. Compl. ¶ 27, [ECF No. 1], (citing § 4.10(b) of the Loan Agreement).

The loan agreement also contained a non-disclosure provision prohibiting Chandler from disclosing any of RxSport’s confidential information to third parties. Id. After La Potencia obtained the intellectual property rights, La Potencia licensed the rights to Plaintiff YC52. YC52 manufactures and sells baseball bats throughout the United States and the world to MLB players, Minor League Baseball players, and other athletes. Id. ¶ 17. After acquiring the intellectual property rights, YC52 hired Defendant Chandler to work in a similar capacity as he had for RxSport. Id. ¶ 34. In that role, Chandler assisted YC52 with accessing and using RxSport’s prior assets, including “trade secrets and formulas.” Id. Chandler worked for YC52 from July 2019 through October 2019. Id. Plaintiffs allege that while employed at YC52, Chandler worked on forming a new business to compete with Plaintiffs in violation of the loan agreement’s non-compete provision. Id. ¶ 35. Plaintiffs further allege that Chandler solicited employees of La Potencia and YC52 to work for his new business and solicited investors and wholesalers to market, sell, and distribute his competing baseball bats. Id. ¶ 36. Plaintiffs allege that Chandler—through his new company, Defendant Group Authentic—now contracts with Defendant MaxBat to manufacture allegedly

infringing baseball bats. Id. ¶¶ 44, 47. Plaintiffs contend that Defendants Chandler and Group Authentic disclosed trade secrets acquired from RxSport to Defendant MaxBat, as well as to third parties. Id. ¶¶ 38, 51. Plaintiffs bring suit against all Defendants for trademark infringement under 15 U.S.C. § 1114 (Count I), trademark infringement under 15 U.S.C. § 1125(a) (Count II), false association under 15 U.S.C. § 1125(a) (Count III), false designation of origin under 15 U.S.C. § 1125(a) (Count IV), and unfair competition under Florida common law (Count V). Plaintiffs also sue David Chandler for breach of contract (Count VI) and Conversion (Count VII), and sue Chandler, Group Authentic, and MaxBat for Misappropriation of Trade Secrets under 18 U.S.C. § 1836 et

seq. (Count VIII). Defendant MaxBat, a Minnesota corporation, now moves to dismiss the claims against it for lack of personal jurisdiction under Rule 12(b)(2) of the Federal Rules of Civil Procedure. LEGAL STANDARD This Court reviews de novo the determination of any disputed portions of the Magistrate Judge’s Report. United States v. Powell, 628 F.3d 1254, 1256 (11th Cir. 2010). Any portions of the Report to which no specific objection is made are reviewed only for clear error. Macort v. Prem, Inc., 208 F. App’x 781, 784 (11th Cir. 2006). A proper objection “identifie[s] specific findings set forth in the [Report] and articulate[s] a legal ground for objection.” Leatherwood v. Anna’s Linens Co., 384 F. App’x 853, 857 (11th Cir. 2010) (alterations and emphasis added; citations omitted). ANALYSIS To begin, the Court affirms and adopts the Report’s finding that Florida’s long-arm statute

reaches Defendant MaxBat. No party objects to this portion of the Report. Reviewed for clear error, the Court finds that the Report correctly concludes that because Plaintiffs reside in Florida and allege to have suffered a trademark injury in Florida, the requirements of Florida’s long-arm statute are met. Report at 8. Additionally, the parties do not challenge the Report’s summary of the relevant law regarding due process. Finding no error in the Report’s recitation of the law, the Court adopts the statements of law on due process. Plaintiffs only object to the application of law to the facts in the due process section of the Report. Accordingly, the Court reviews this portion of the Report de novo. The Court must consider whether Defendant MaxBat’s nineteen shipments of baseball bats into Florida constitutes

sufficient contact with the state such that MaxBat had “fair warning” or could have “reasonably anticipated” that it may be subject to suit in Florida. See Louis Vuitton Malletier, S.A. v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Colleen Macort v. Prem, Inc.
208 F. App'x 781 (Eleventh Circuit, 2006)
Licciardello v. Lovelady
544 F.3d 1280 (Eleventh Circuit, 2008)
Milliken v. Meyer
311 U.S. 457 (Supreme Court, 1941)
International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
Keeton v. Hustler Magazine, Inc.
465 U.S. 770 (Supreme Court, 1984)
Calder v. Jones
465 U.S. 783 (Supreme Court, 1984)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Lurene Leatherwood v. Anna's Linens Company
384 F. App'x 853 (Eleventh Circuit, 2010)
United States v. Powell
628 F.3d 1254 (Eleventh Circuit, 2010)
D.W. Mercer, Inc. v. Valley Fresh Produce, Inc.
146 F. Supp. 2d 1274 (M.D. Florida, 2001)
United States v. Howe
736 F.3d 1 (First Circuit, 2013)
Louis Vuitton Malletier, S.A. v. Joseph Mosseri
736 F.3d 1339 (Eleventh Circuit, 2013)
Walden v. Fiore
134 S. Ct. 1115 (Supreme Court, 2014)
Sandra Waite v. AII Acquisition Corp.
901 F.3d 1307 (Eleventh Circuit, 2018)
Ford Motor Co. v. Montana Eighth Judicial Dist.
592 U.S. 351 (Supreme Court, 2021)
Fru Veg Marketing, Inc. v. Vegfruitworld Corp.
896 F. Supp. 2d 1175 (S.D. Florida, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
La Potencia, LLC v. Chandler, Counsel Stack Legal Research, https://law.counselstack.com/opinion/la-potencia-llc-v-chandler-flsd-2023.