Mendoza v. Electrolux Home Products, Inc.

District Court, E.D. California·Decided December 8, 2023·No. 1:20-cv-01133·Unknown

Opinion

1 2 3 4 5 6 7 10 11 ERIKA MENDOZA, et al., an individual, No. 1:20-cv-1133-TLN-CKD on behalf of herself and all others similarly 12 situated, 13 Plaintiffs, ORDER 14 v. ELECTRICAL APPLIANCES 16 MANUFACTURING CO. LTD, et al., 17 Defendants. 18 19 This matter1 is before the Court on Defendant Midea Microwave and Electrical 20 Appliances Manufacturing Co., Ltd.’s (“Midea China”) Motion to dismiss. (ECF No. 199.) 21 Plaintiffs Erika Mendoza and James Hunt (collectively, “Plaintiffs”) filed an opposition. (ECF 22 No. 212.) Midea China filed a reply. (ECF No. 222.) For the reasons set forth below, the Court 23 GRANTS Midea China’s motion. 24

25 1 The Court acknowledges the delay in the issuance of this Order. The overwhelming caseload in the Eastern District of California has been well publicized. On September 13, 2023, 26 Chief Judge Kimberly J. Mueller reassigned this action to the undersigned following the 27 appointment of Judge Ana de Alba to the Ninth Circuit Court of Appeals. The Court prioritized resolution of the pending motions to dismiss in this action. 28 1 Also before the Court is Defendant Midea America Corp.’s (“Midea America”)2 Motion 2 to Dismiss. (ECF No. 201.) Plaintiffs filed an opposition. (ECF No. 212.) Midea America filed 3 a reply. (ECF No. 220). For the reasons set forth below, the Court GRANTS Midea America’s 4 motion. 6 The Court need not recount all background facts as they are fully set forth in the Court’s 7 September 6, 2022, order. (ECF No. 240.) In short, Plaintiffs are California residents who 8 allegedly suffered economic injury as the result of defective “over-the-range” (“OTR”) 9 microwaves, whose handles reached unsafe temperatures while the cooking surface below was in 10 use (the “handle defect”). (ECF No. 194 at 2, 4, 6.) Plaintiffs allege Midea China, a 11 manufacturing company incorporated and with its principal place of business in China, 12 manufactured several of the microwaves at issue (the “Microwaves”). (Id. at 8.) According to 13 Plaintiffs, Midea China performed product testing on the Microwaves before shipping them to the 14 United States, which showed the Microwaves’ handles reached unsafe temperatures while the 15 cooking surface below was in use. (Id. at 9.) Plaintiffs also allege Midea America, a company 16 incorporated in Florida with its principal place of business in New Jersey, conducted product 17 testing on the Microwaves and knew of the handle defect. (Id. at 6, 12.) Both Midea China and 18 Midea America are a part of Midea Group Co. Ltd. (“Midea Group”). (ECF No. 212 at 18.) 19 Plaintiffs initiated this putative class action on May 19, 2017, in Stanislaus County 20 Superior Court against Electrolux Home Products Inc. (“Electrolux”), a distributor of the 21 Microwaves. (ECF No. 1.) Electrolux removed this action to federal court and moved to transfer 22 venue to the Middle District of Pennsylvania. (ECF No. 1 at 2; ECF No. 4 at 50.) Venue was 23 transferred to the Middle District of Pennsylvania, where the court consolidated this action with 24 related actions pending in that district, Rice v. Electrolux Home Products, Inc., No. 4:15-cv- 25 00371-MWB, and Mauro v. Electrolux Home Products, Inc., Case No. 4:18-cv-00539-MWB. 26 (ECF No. 153 at 2.) On October 3, 2018, Plaintiffs filed an amended consolidated class action 27 2 The action involves eight named Defendants and ten Doe Defendants. Only Midea China 28 and Midea America are parties to the instant motions. 1 complaint against Electrolux, Midea China, Midea America, Modesto Direct Appliance 2 (“Modesto”), Lowe’s Home Centers, LLC (“Lowe’s”), Sharp Appliances Thailand Limited 3 (“SATL”), and Sharp Manufacturing Company of America (“SMCA”) (collectively, 4 “Defendants”). Rice, No. 14:15-cv-00371-MWB, ECF No. 173. On August 13, 2020, the Middle 5 District of Pennsylvania transferred this action back to the Eastern District of California. (ECF 6 No. 155.) 7 On November 13, 2020, Plaintiffs filed the operative First Amended Complaint (“FAC”), 8 alleging Defendants violated California’s Consumer Legal Remedies Act (“CLRA”), California’s 9 Unfair Competition Law (“UCL”), and the Song-Beverly Consumer Warranty Act (“Song- 10 Beverly Act”). (ECF No. 194.) On November 30, 2020, Midea China, SAMC, SATL, and 11 Midea America each filed separate motions to dismiss, and Electrolux, Lowe’s, and Modesto 12 filed a joint motion to dismiss. (ECF Nos. 196, 198, 199, 201, 202.) On September 6, 2022, the 13 Court granted SMCA’s and SATL’s motions to dismiss (ECF Nos. 196, 198) Plaintiffs’ claims 14 for lack of standing as to Plaintiffs’ claims for injunctive relief only. (ECF No. 240.) The Court 15 also granted SMCA’s and SATL’s motion to dismiss (ECF Nos. 196, 198) under Rule 12(b)(2) 16 for lack of personal jurisdiction with leave to amend. (ECF No. 240.) 17 In Midea China and Midea America’s instant motions to dismiss, both move to dismiss 18 Plaintiffs’ FAC under Federal Rule of Civil Procedure (“Rule”) 12(b)(2) for lack of personal 19 jurisdiction and Rule 12(b)(6) for failure to state a cognizable claim. (ECF No. 199-1 at 7.) 20 Because the Court GRANTS both motions under Rule 12(b)(2) for lack of personal jurisdiction, 21 the Court need not and does not address Midea China and Midea America’s remaining arguments 22 regarding Rule 12(b)(6). 24 As an initial matter, the Court will briefly address the procedural history in this action 25 relevant to the personal jurisdiction issue. In September 2020, SMCA, SATL, Midea China, and 26 Midea America filed petitions for a writ of mandamus in the U.S. Court of Appeals for the Third 27 Circuit, challenging the order of the Middle District of Pennsylvania transferring this action to 28 this Court. See In re Sharp Mfg. Co. Am., No. 20-3039, Doc. Nos. 1, 18; In re Sharp Appliances 1 Thailand Ltd., No. 20-2807 (3d. Cir.), Doc. Nos. 1, 30; In re Midea Microwave & Electrical 2 Appliances Mfg. Co. Ltd., No. 20-2806 (3d. Cir.), Doc. Nos. 1, 36; In re Midea America Corp., 3 No. 20-2914 (3d. Cir.), Doc. Nos. 1, 25. The Third Circuit denied the petitions, holding “any 4 error committed by the District Court was not so clear as to warrant the extraordinary remedy of 5 mandamus.” In re Sharp Mfg. Co. Am., No. 20-3039 (3d. Cir.), Doc. No. 18 at 2. On the issue of 6 personal jurisdiction, the Third Circuit stated: 7 We note that, in transferring the case, the District Court [for the Middle District of Pennsylvania] concluded that the plaintiffs made 8 a “prima facie showing” that the transferee court [in the Eastern District of California] has personal jurisdiction over the petitioning 9 defendants. In its transfer order, however, the District Court emphasized that it held plaintiffs only to a “light” burden on that 10 issue and expressly provided that defendants could “further challenge the jurisdictional issue in the Eastern District of 11 California.” Thus, we do not read the District Court’s order as deciding the issue of personal jurisdiction in a way that constitutes 12 law of the case in the transferee court under Christianson v. Colt Industries Operating Co., 486 U.S. 800, 816–17 (1988). 13 14 Id. 15 Accordingly, the Court finds it is appropriate to address whether the Court 16 has personal jurisdiction over Midea China and Midea America. 18 Rule 12(b)(2) allows a party to file a motion to dismiss for lack of personal jurisdiction. 19 When there is no federal statute authorizing personal jurisdiction, the district court applies the law 20 of the state in which the district court sits. Mavrix Photo, Inc. v. Brand Techs., Inc., 647 F.3d 21 1218, 1223 (9th Cir. 2011). This Court sits in California, and California’s long-arm statute is 22 coextensive with federal due process requirements. Cal. Civ. Proc.

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Mendoza v. Electrolux Home Products, Inc., (E.D. Cal. 2023).

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