McCarthy v. Yamaha Motor Manufacturing Corp.

994 F. Supp. 2d 1318, 2014 WL 457698, 2014 U.S. Dist. LEXIS 14051
CourtDistrict Court, N.D. Georgia
DecidedJanuary 24, 2014
DocketCivil Action No. 3:12-cv-117-TCB
StatusPublished
Cited by6 cases

This text of 994 F. Supp. 2d 1318 (McCarthy v. Yamaha Motor Manufacturing Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCarthy v. Yamaha Motor Manufacturing Corp., 994 F. Supp. 2d 1318, 2014 WL 457698, 2014 U.S. Dist. LEXIS 14051 (N.D. Ga. 2014).

Opinion

ORDER

TIMOTHY C. BATTEN, SR., District Judge.

This case comes before the Court on Defendant Yamaha Motor Co., Ltd.’s (“YMC”) motion to dismiss pursuant to [1321]*1321Federal Rule of Civil Procedure 12(b)(2) [54],

I. Background

This is a products-liability action. Plaintiffs Peter and Maureen McCarthy are Australian citizens, and on April 5, 2010, Peter was injured while operating a Yamaha WaveRunner personal watercraft in Queensland, Australia. Peter suffered, among other things, severe injuries to his spinal cord.

YMC is a Japanese corporation with its principal place of business in Japan. The WaveRunner was manufactured and assembled in Georgia by Defendant Yamaha Motor Manufacturing Corporation of America (“YMMC”). YMMC is a wholly owned subsidiary of Yamaha Motor Corporation, U.S.A. (“YMUS”), which is a wholly owned subsidiary of YMC. YMMC sold the WaveRunner to YMC, who then sold it to an Australian importer. The WaveRunner was shipped from Georgia to Australia, and the importer resold the WaveRunner to a retail dealer in Australia. The retailer subsequently sold the WaveRunner to one Mr. Noye, who owned the WaveRunner at the time of Peter’s accident.

On March 16, 2012, the McCarthys filed this action in a California state court; YMC was not named as a Defendant. The McCarthys did name YMMC, YMUS, and another Yamaha entity, Yamaha Corporation of America (“YMCA”), as Defendants. On June 8, with the McCarthys’ consent the Defendants removed the action the U.S. District Court for the Central District of California. And on June 13, the parties dismissed [7] YMUS and YMCA without prejudice because neither entity was involved in the design or manufacture of the WaveRunner.

On July 31, 2012, the district court granted the McCarthys’ unopposed 28 U.S.C. § 1404 motion to transfer the action to this Court, and the case was transferred the next day. The McCarthys asked that the case be transferred on the basis that this Court was the more appropriate venue, as YMMC — -the only Defendant at that time — has its principal place of business in this district.

On January 14, 2013, the McCarthys filed an unopposed motion to amend their complaint to add YMC as a Defendant. The McCarthys contended that they had recently learned that YMC was involved in the design of the subject WaveRunner, making YMC a necessary party. The Court granted their motion that same day, and on May 28, YMC filed an answer to the amended complaint. In its answer, YMC raised the defense of lack of personal jurisdiction.

On June 20, 2013 — fifteen months after the action was filed — -the parties filed a joint motion to extend the discovery period an additional nine months. They contended that additional time was necessary as a result of YMC’s recent appearance in the case and because of various issues caused by the accident having occurred and the witnesses being located in Australia. That same day, the Court issued an order that granted the motion and explicitly warned the parties that the Court was not inclined to grant additional extensions.

On November 13, 2013, the Court held an in-chambers conference to discuss the complexities presented by key witnesses and evidence being located in Australia. The parties also brought to the Court’s attention issues arising from their disagreement as to the governing law, and the Court instructed defense counsel to file a motion to determine the governing law. Defense counsel, who represents both YMC and YMMC, did not mention any issues involving personal jurisdiction.

[1322]*1322On December 5, YMC filed its motion to dismiss for lack of personal jurisdiction, and the next day YMC filed a motion to apply the substantive law of Australia. This Order is limited to YMC’s motion to dismiss.

II. Personal Jurisdiction

YMC contends that it does not have sufficient contacts in Georgia to permit this Court to exercise personal jurisdiction over it. The McCarthys respond that YMC’s motion should be denied because it is untimely and YMC waived any objection to personal jurisdiction. In the alternative, the McCarthys contend that they should be allowed jurisdictional discovery. The Court first addresses the McCarthys’ procedural arguments and then the merits of YMC’s motion.

A. Timeliness of YMC’s Motion

The McCarthys argue that YMC’s motion is untimely under Local Rule 7.1(A)(2), which requires motions to be filed within thirty days of the beginning of the discovery period unless the party has obtained prior permission of the Court to file the motion later. The McCarthys contend that YMC’s motion was filed well after this deadline and that it did not seek prior permission from the Court to file its motion out-of-time.

YMC responds that it was not added to this action until after this deadline had passed, so it could not have met the deadline. The Court agrees and rejects the McCarthys’ argument on this point. See, e.g., Atlantis Hydroponics, Inc. v. Int’l Growers Supply, Inc., 915 F.Supp.2d 1365, 1371 (N.D.Ga.2013) (personal jurisdiction defense not waived when motion to dismiss was filed after deadline set by Federal Rules of Civil Procedure because defense was raised in first filing, i.e., its motion, as required).

B. Waiver

The McCarthys also argue that YMC has waived its personal-jurisdiction defense even though YMC raised the defense in its answer. The McCarthys argue that YMC waived this defense when (1) seven months elapsed between YMC’s filing its answer and motion; (2) YMC made affirmative representations to the Court during the November 21 conference about its future involvement in this case; and (3) YMC chose to litigate the merits of and participate in this case, e.g., filing the motion to determine the governing law.

YMC responds that it did not unreasonably delay in filing its motion and that it did not waive its validly raised defense through the conduct of its counsel. YMC contends that counsel’s appearing on its behalf at the McCarthys’ depositions and allegedly making representations about YMC’s future involvement in the case to the Court are not sufficient to result in a waiver.1 YMC also states that the McCarthys have not noticed or taken a single deposition since YMC joined the case,2 and that they just recently propounded their first set of interrogatories. And YMC asserts that it has not served any discovery upon the McCarthys. Thus, YMC argues that it has not engaged in the extensive discovery and motions practice that has persuaded other courts to find waiver where a defendant delayed filing its personal-jurisdiction motion to dismiss. The [1323]*1323Court agrees. See Brokerwood Int’l (U.S.), Inc. v. Cuisine Crotone, Inc., 104 Fed.Appx. 376, 380-81 (5th Cir.2004) (defendant did not waive personal-jurisdiction defense where it included defense in answer and filed motion to dismiss just seven months later, and case was fairly dormant in that time period).

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Cite This Page — Counsel Stack

Bluebook (online)
994 F. Supp. 2d 1318, 2014 WL 457698, 2014 U.S. Dist. LEXIS 14051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccarthy-v-yamaha-motor-manufacturing-corp-gand-2014.