Maria Frank v. P N K (Lake Charles) L.L.C.

947 F.3d 331
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 21, 2020
Docket18-31060
StatusPublished
Cited by91 cases

This text of 947 F.3d 331 (Maria Frank v. P N K (Lake Charles) L.L.C.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maria Frank v. P N K (Lake Charles) L.L.C., 947 F.3d 331 (5th Cir. 2020).

Opinion

Case: 18-31060 Document: 00515278726 Page: 1 Date Filed: 01/21/2020

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT United States Court of Appeals Fifth Circuit

FILED January 21, 2020 No. 18-31060 Lyle W. Cayce Clerk MARIA STEFFAN FRANK, Individually and as Administrator of the Estate of Betty Steffan; DAVID BRUCE STEFFAN; THOMAS J. STEFFAN; CYNTHIA D. GUM; ROBERT M. STEFFAN; DAVID B. STEFFAN, JR.; RICHARD L. STEFFAN; SUZANNE L. KELLEY,

Plaintiffs - Appellants

v.

P N K (LAKE CHARLES) L.L.C., erroneously named as Pinnacle Entertainment Incorporated, doing business as L'Auberge du Lac Hotel; Casino,

Defendant - Appellee

Appeal from the United States District Court Western District of Louisiana

Before BARKSDALE, STEWART, and COSTA, Circuit Judges. CARL E. STEWART, Circuit Judge: Plaintiffs-Appellants, Maria Steffan Frank, individually and as Administrator of the Estate of Betty Steffan, David Bruce Steffan, Thomas J. Steffan, Cynthia D. Gum, Robert M. Steffan, David B. Steffan, Jr., Richard L. Steffan, and Suzanne L. Kelley (collectively referred to as “Appellants”) initiated this wrongful death action against Defendant-Appellee PNK (Lake Charles) LLC (“PNK”) alleging, inter alia, claims for negligence, premises liability, and breach of warranty. Appellants originally filed a state action in Case: 18-31060 Document: 00515278726 Page: 2 Date Filed: 01/21/2020

No. 18-31060 Harris County, Texas. The case was subsequently removed and transferred to the presiding court for lack of personal jurisdiction. Shortly after the case’s transfer, the district court dismissed Appellants’ claims for being time-barred. Appellants appeal the judgment and the related order transferring this action to the Western District of Louisiana. In view of Supreme Court precedent illuminating the personal jurisdiction standard, we AFFIRM. I. In 2015, Betty Steffan fell off a swivel chair in the L’Auberge du Lac Hotel & Casino in Lake Charles, Louisiana (“L’Auberge”). When the 86-year- old Texas native fell from the stool, her head struck the casino’s floor causing a subdural hematoma which led to her death the following day. The PNK’s Texas contacts below are outlined in Appellants’ complaint and exhibits attached to Appellants’ response to PNK’s motion to dismiss or transfer. 1

1 According to the complaint, Appellants allege that personal jurisdiction exists because PNK “employed Texas residents, solicited business within the State of Texas, and has otherwise availed itself of the benefits and protections offered by the laws of” Texas.

For jurisdictional support in response to PNK’s motion to dismiss or transfer, the record reflects that Appellants relied on the following: (1) an affidavit from Maria Steffan Frank; (2) a 2005 Houston Chronicle Article discussing the marketing strategies in opening L’Auberge; (3) an affidavit from Appellants’ counsel; (4) economic data related to Louisiana’s gaming board and the economic impact of riverboat casinos; (5) a bus schedule published by Pinnacle Entertainment, Inc. (“Pinnacle”), PNK’s sole owner; (6) a Pinnacle organizational chart; and (7) a Pinnacle press release.

Outside of the fact that the majority of this evidence provides little to no jurisdictional support, we still consider “the contents of the record at the time of the motion.” Paz v. Brush Engineered Materials, Inc., 445 F.3d 809, 812 (5th Cir. 2006) (quoting Quick Techs., Inc. v. Sage Grp. PLC, 313 F.3d 338, 343 (5th Cir. 2002); Washington v. Norton Mfg. Inc., 588 F.2d 441, 443 (5th Cir. 1979) (stating that the court has “broad discretion to allow discovery on jurisdictional issues”) (citation omitted). 2 Case: 18-31060 Document: 00515278726 Page: 3 Date Filed: 01/21/2020

No. 18-31060 While PNK’s and L’Auberge’s business operations are domiciled in Louisiana 2, L’Auberge draws a large portion of its revenue from Texas patrons. Located 135 miles from Texas’s largest city, Houston, L’Auberge has long been an attractive venue to Texans since the multimillion-dollar complex was built in 2005. PNK’s marketing plan also evinces its intention to promote L’Auberge to Texas residents. PNK sent marketing teams to Texas and conducted focus groups to learn what would attract Texan customers. It advertises in the Houston area, via mailers, the internet, billboards, television commercials, and radio ads. It also subsidizes charter bus services to shuttle Texas patrons across state lines. The bus schedule is advertised on the L’Auberge website. In her affidavit, Maria Steffan Frank stated that she (along with other members of the estate) had received mail advertisements and seen billboards while living in Texas. Despite its various Texas solicitations vis-à-vis L’Auberge, PNK’s Texas contacts solely stem from these marketing activities, with the exception of the charter services. PNK is not registered to do business in Texas. It does not own or have any offices, personal property, real property (including rental property), bank accounts, employees 3, or agents for service of process in Texas. II. Claiming that L’Auberge provided unsafe facilities and failed to provide Betty Steffan with proper aid following her fall, Appellants initially filed the wrongful death complaint in a Texas state court in Harris County. 4 PNK

2 PNK is a limited liability company that owns the gaming license for L’Auberge. It is domiciled in Baton Rouge, Louisiana. 3 Of note, while PNK does not have employees in Texas, it does retain Texas charter

bus services for shuttling Texans to L’Auberge. 4 At the outset, Pinnacle was the named defendant in this wrongful death action. PNK

later intervened as the appropriate party. 3 Case: 18-31060 Document: 00515278726 Page: 4 Date Filed: 01/21/2020

No. 18-31060 removed the matter to the Southern District of Texas (Houston Division) and filed a concurrent motion to transfer or dismiss for lack of personal jurisdiction. In a one-page order, the district court granted PNK’s motion to transfer because PNK’s advertising (1) was promoted nationally and did not “establish systematic and continuous contacts with Texas that confer general jurisdiction”; and (2) did not relate to Appellants’ injuries to confer specific jurisdiction. The court transferred the case to the Western District of Louisiana. Before the presiding district court, PNK moved for summary judgment due to Appellants’ claims being time-barred by Louisiana’s 1-year prescription under Civil Code article 3492. Appellants did not dispute this assertion. Consequently, PNK’s motion was granted because this action was filed outside of the prescription period. 5 Appellants appeal, seeking to undo the Louisiana final judgment by reversing the Southern District of Texas transfer order. The parties assume the venue affects the case’s outcome as Texas provides for a 2-year limitations period for personal injury actions. 6 See TEX. STAT. § 16.003. Appellants’ position is that the Texas court erred in not exercising personal jurisdiction over PNK because a non-resident company, like PNK, may be subjected to general jurisdiction for its targeted advertising in the forum state. III. “We review de novo a dismissal for lack of personal jurisdiction.” Stripling v. Jordan Prod. Co., 234 F.3d 863, 869 (5th Cir. 2000) (citation omitted).

5 Betty Steffan was fatally injured in 2015, and this action commenced in 2017. 6 “[F]ollowing a section 1406(a) transfer, regardless of which party requested the transfer or the purpose behind the transfer, the transferee court must apply the choice of law rules of the state in which it sits.” Ellis v. Great Sw.

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947 F.3d 331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maria-frank-v-p-n-k-lake-charles-llc-ca5-2020.