Lizard Skins, LLC v. LZRD Tech, Inc.

CourtDistrict Court, D. Utah
DecidedSeptember 18, 2024
Docket2:23-cv-00801
StatusUnknown

This text of Lizard Skins, LLC v. LZRD Tech, Inc. (Lizard Skins, LLC v. LZRD Tech, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lizard Skins, LLC v. LZRD Tech, Inc., (D. Utah 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH

LIZARD SKINS, LLC, MEMORANDUM DECISION AND Plaintiff, ORDER DENYING MOTION TO DISMISS OR TRANSFER VENUE v.

LZRD TECH, INC., Case No. 2:23-cv-00801-JNP-DAO

Defendant. District Judge Jill N. Parrish

Before the court is Defendant’s motion to dismiss for lack of personal jurisdiction under Rule 12(b)(2) of the Federal Rules of Civil Procedure or, in the alternative, transfer venue to the Northern District of Georgia under 28 U.S.C. § 1404(a). In the court’s view, Plaintiff has made a prima facie showing that Defendant is subject to personal jurisdiction in Utah. Further, Defendant has not shown that the interests of efficiency and justice would be served by a transfer. Therefore, the court DENIES Defendant’s motion. BACKGROUND In recounting the background of the case at this stage, the court takes the plaintiff’s well- pleaded facts as true and may, in its discretion, consider any affidavits that the parties have adduced, resolving all factual disputes in the plaintiff’s favor. XMission, L.C. v. PureHealth Rsch., 105 F.4th 1300, 1307 (10th Cir. 2024); Dudnikov v. Chalk & Vermilion Fine Arts, Inc., 514 F.3d 1063, 1069 (10th Cir. 2008). Plaintiff Lizard Skins, LLC, manufactures sporting-goods accessories, including grips, gloves, and protective apparel. Over the past 15 years, Plaintiff has crafted products for numerous sports, including cycling, lacrosse, hockey, and baseball, becoming the official grip-bat supplier of Major League Baseball in 2016. And for at least six years now, Plaintiff has sold compression arm sleeves under its Lizard Skins trademark throughout the country. Plaintiff is incorporated in Delaware and has its principal place of business in American Fork, Utah. See ECF 1

(“Complaint”), at 1–3. Defendant LZRD Tech (pronounced Lizard Tech) also manufactures sporting-goods accessories, including compression arm sleeves like Plaintiff’s, although its products are targeted toward football players. Using its LZRD logo, Defendant supplies products across the country to about 83 teams ranging from high-school to NFL level (none of the teams are located in Utah). Defendant’s products reach customers either through third parties like Amazon and Dick’s Sporting goods, which purchase stock through wholesalers, or through online orders placed directly through Defendant’s website. To date, Defendant has fulfilled at least 126 online orders placed by customers in Utah. Other than these orders, Defendant has no direct connection to Utah: it is incorporated in either Georgia or Delaware and has its principal place of business in Atlanta,

Georgia. See ECF 20-1 (“Pullen Decl.”), at 2–6. In November 2023, Plaintiff sued Defendant for trademark violations under the Lanham Act, 15 U.S.C. § 1051 et seq., common-law trademark infringement, common-law unfair competition, and violations of the Utah Truth in Advertising Act, UTAH CODE ANN. § 13-11a-1 et seq. According to Plaintiff, Defendant’s logo is creating confusion in the marketplace by leading consumers to believe that LZRD sleeves are manufactured by Plaintiff. Plaintiff also claims that it is suffering in its sales and reputation because of Defendant’s using the LZRD logo. Complaint at 7–8. Defendant counters that it is not subject to personal jurisdiction in Utah or, in the alternative, that this case should be transferred to the Northern District of Georgia. ECF 20 (“Motion”), at 1. 2 DISCUSSION “The question of personal jurisdiction, which goes to the court’s power to exercise control over the parties, is typically decided in advance of [the question of] venue, which is primarily a matter of choosing a convenient forum.” Leroy v. Great W. United Corp., 443 U.S. 173, 180

(1979). The court therefore begins with Defendant’s argument that it is not subject to personal jurisdiction in Utah. I. Personal Jurisdiction To determine whether the court has personal jurisdiction over Defendant, the court first “ask[s] whether any applicable statute authorizes the service of process on [D]efendant[].” Dudnikov, 514 F.3d at 1070. Then, the court “examines whether the exercise of such statutory jurisdiction comports with constitutional due process demands.” Id. Neither the Lanham Act nor the Utah Truth in Advertising Act provides for nationwide service of process. be2 LLC v. Ivanov, 642 F.3d 555, 558 (7th Cir. 2011) (Lanham Act); see UTAH CODE ANN. § 13-11(a)-1 et seq. (Utah Truth in Advertising Act). So, Rule 4(k)(1)(A) of the Federal Rules of Civil Procedure “commands

the district court . . . to apply the law of the state in which the district court sits.” Dudnikov, 514 F.3d at 1070. Utah’s long-arm statute, in turn, extends jurisdiction “to the fullest extent permitted by the [D]ue [P]rocess [C]lause of the Fourteenth Amendment.” UTAH CODE ANN. § 78B-3-201. As such, the statutory inquiry “effectively collapses into the . . . constitutional[] analysis.” Dudnikov, 514 F.3d at 1070. The Fourteenth Amendment’s Due Process Clause limits a court’s ability to exercise jurisdiction over a defendant. Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., 592 U.S. 351, 358 (2021). Whether a court may exercise personal jurisdiction over a defendant depends on the defendant’s relationship with the forum state. See Bristol-Meyers Squibb Co. v. Superior Ct. of 3 Calif., 582 U.S. 255, 261–262 (2017). Depending on the defendant’s relationship to the forum state, the court may have either general jurisdiction or specific jurisdiction over the defendant (or none at all). When the defendant is “at home” in a state—such as when a corporation is incorporated in that state or has its principal place of business in that state—the courts of that state

may exercise general jurisdiction over the defendant, meaning that they “may hear any claim against that defendant.” Id. at 262. When a defendant is not “at home” in a state but has had “minimum contacts” with the state, the courts of that state may exercise specific jurisdiction for claims arising out of those contacts. Id. Finally, when the defendant has not had sufficient contacts with that state—that is, when the defendant has not “purposefully avail[ed] itself of the privilege of conducting activities within th[at s]tate”—the courts of that state may not hear any claims against that defendant. Ford Motor, 592 U.S. at 359 (quoting Hanson v. Denckla, 357 U.S. 235, 253 (1958)). Plaintiff “does not contend that [Defendant’s] contacts [with Utah] satisfy the general jurisdiction standard, so only specific jurisdiction is at issue” here. Old Republic Ins. Co. v.

Continental Motors, Inc., 877 F.3d 895, 904 (10th Cir. 2017). The “constitutional touchstone” for specific jurisdiction is “whether the defendant purposefully established ‘minimum contacts’ in the forum state.” Burger King Corp. v.

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Lizard Skins, LLC v. LZRD Tech, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/lizard-skins-llc-v-lzrd-tech-inc-utd-2024.