Morton Grove Pharmaceuticals, Inc. v. National Pediculosis Ass'n

525 F. Supp. 2d 1039, 2007 U.S. Dist. LEXIS 88040, 2007 WL 4259422
District Court, N.D. Illinois·Decided November 30, 2007·No. 06 C 3815·Published·Cited by 11 cases

Opinion

MEMORANDUM OPINION AND ORDER

ELAINE E. BUCKLO, District Judge.

Defendants Ecology Center, Inc. (“the Center”) and William B. Weil, MD (“Weil”) have brought a motion to dismiss counts II, III and IV of the second amended complaint filed by plaintiff Morton Grove Pharmaceuticals, Inc., (“MGP”) for lack of personal jurisdiction under Fed.R.CivP. 12(b)(2), improper venue under Fed. R.Crv.P. 12(b)(3), or, in the alternative, to transfer the case to the Eastern District of Michigan, and for failure to state a claim under Fed.R.Civ.P. 12(b)(6). For the following reasons, the motion is granted in part and denied in part.

I.

The following is a brief review of facts already set forth in Morton Grove Pharm., Inc. v. Nat'l Pediculosis Ass’n, Inc., 485 F.Supp.2d 944 (N.D.Ill.2007) (“Morton Grove I ”) and Morton Grove Pharm., Inc. v. Nat'l Pediculosis Ass’n, Inc., 494 F.Supp.2d 934 (N.D.Ill.2007) (“Morton Grove II”). MGP, a Delaware corporation, is a pharmaceutical company with its principal place of business in Morton Grove, Illinois. MGP manufactures Lin-dane Lotion and Lindane Shampoo (“collectively Lindane”), which are FDA-approved medications for the treatment of *1041 lice and scabies. These products are named after their active ingredient — lin-dane. 1 Presently, MGP is the only United States manufacturer and distributor of Lindane.

The Center is a non-profit corporation in Michigan. The Center’s sole place of business is Ann Arbor, Michigan and has never maintained offices, registered agents or employees in Illinois. Weil is a physician licensed to practice in the field of pediatric medicine in Michigan. Weil is not licensed or alleged to have practiced medicine in Illinois and resides in Michigan.

MGP has filed claims for defamation (Count II), trade disparagement (Count III), and violations of the Illinois Deceptive Trade Practices Act, 815 ILCS 510/2 (Count TV) against defendants. The second amended complaint specifically alleges that the Center and Weil engaged in a false, misleading and defamatory attack campaign on MGP and its product, Lin-dane. (Sec. Am. Compl. at ¶¶ 8, 32.) As a result, MGP is alleged to have suffered a decline in the sale of Lindane and reputa-tional injury. (Id. at ¶ 36.) With regard to jurisdiction, the complaint alleges the Center “actively solicits donors by mail and distributes ‘fact sheets’ and ‘newsletters’ ... in Illinois;” “has raised money from eleven Illinois residents since December 2003;” “and has spent $2,900 in business and travel expenses in Illinois since February 2004.” (Id. at ¶ 11.)

II.

On a motion to dismiss for lack of personal jurisdiction, I read the complaint liberally and draw all reasonable inferences in favor of the plaintiff. Sapperstein v. Hager, 188 F.3d 852, 855 (7th Cir.1999). Where conflicting evidence is presented, I resolve factual disputes in the plaintiffs favor. RAR, Inc. v. Turner Diesel, Ltd., 107 F.3d 1272, 1275 (7th Cir.1997); Rotec Indus., Inc. v. Aecon Group, Inc., 436 F.Supp.2d 931, 933 (N.D.Ill.2006). The plaintiff has the burden of demonstrating that this court has personal jurisdiction over the defendant. RAR, 107 F.3d at 1276; Rotee Indus., 436 F.Supp.2d at 933. When ruling on a motion to dismiss based on the submission of written materials, the plaintiff “need only make out a prima facie case of personal jurisdiction.” Hyatt Int’l Corp. v. Coco, 302 F.3d 707, 713 (7th Cir.2002).

I have previously held I do not have general jurisdiction over defendants and, therefore, must only determine whether I have specific jurisdiction in light of the allegations in the second amended complaint. Specific jurisdiction is jurisdiction that arises out of or relates to the defendant’s contacts with the forum. RAR, 107 F.3d at 1277 (citing Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414 n. 8, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984)). Minimum contacts are established for purposes of specific jurisdiction when the defendant’s contacts with the forum state demonstrate that the defendant has purposefully availed itself of the privilege of conducting activities within the forum state, such that the defendant could reasonably anticipate being haled into court there. World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980); Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958); RAR, 107 F.3d at 1277 (citing Burger King Corp. v. Rudzewicz, 471 U.S. 462, 476-77, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985)). Under the Due Process Clause of the Fourteenth Amendment, a defendant must have “cer *1042 tain minimum contacts with [the state] such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945) (quoting Milliken v. Meyer, 311 U.S. 457, 463, 61 S.Ct. 339, 85 L.Ed. 278 (1940)) (further citations omitted); Hyatt Int’l, 302 F.3d at 716.

In support of the motion to dismiss, Weil has submitted an affidavit in which he states (1) he did not participate in the preparation or mailing of the April 2006 newsletter (which is the only allegedly defamatory mailing which contains his name) and (2) he was unaware it was going to be sent to any Illinois residents. Although Weil’s first assertion arguably is contradicted by the April 2006 newsletter itself, MGP has not set forth any evidence to contradict the second. See Purdue Research Found. v. Sanofi-Synthelabo, S.A., 338 F.3d 773, 782-83 (7th Cir.2003) (“[0]nce the defendant has submitted affidavits or other evidence in opposition to the exercise of jurisdiction, the plaintiff must go beyond the pleadings and submit affirmative evidence supporting the exercise of jurisdiction.”).

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Morton Grove Pharmaceuticals, Inc. v. National Pediculosis Ass'n, 525 F. Supp. 2d 1039, 2007 U.S. Dist. LEXIS 88040, 2007 WL 4259422 (N.D. Ill. 2007).

525 F. Supp. 2d 1039 (Morton Grove Pharmaceuticals, Inc. v. National Pediculosis Ass'n) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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