Nationwide Life Insurance v. Hampton Supply, Inc.

829 F. Supp. 915, 1993 U.S. Dist. LEXIS 15671, 1993 WL 328357
CourtDistrict Court, S.D. Ohio
DecidedJune 28, 1993
Docket1:93-cv-00169
StatusPublished
Cited by5 cases

This text of 829 F. Supp. 915 (Nationwide Life Insurance v. Hampton Supply, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nationwide Life Insurance v. Hampton Supply, Inc., 829 F. Supp. 915, 1993 U.S. Dist. LEXIS 15671, 1993 WL 328357 (S.D. Ohio 1993).

Opinion

OPINION AND ORDER

HOLSCHUH, Chief Judge.

Plaintiff originally brought this action in the Court of Common Pleas for Franklin County, Ohio, alleging state law claims of breach of contract. Defendant subsequently removed the action to this Court pursuant to 28 U.S.C. § 1441 under the Court’s diversity jurisdiction, 28 U.S.C. § 1332. This matter is now before the Court on the defendant’s motion to dismiss for lack of personal jurisdiction, or, in the alternative, to transfer.

BACKGROUND

Plaintiff is an Ohio corporation. Defendant is a Maryland corporation and is not licensed to do business in the State of Ohio. Plaintiff, the former administrator of a health benefits program offered by defendant Hampton Supply, Inc. to its employees in Maryland, seeks reimbursement for claims paid by it.

The burden of establishing personal jurisdiction is on the plaintiff. Where the Court determines the issues solely on the basis of written materials, and without a hearing, the plaintiff need establish only a prima facie case of jurisdiction with facts that would support jurisdiction. Welsh v. Gibbs, 631 F.2d 436, 438-439 (6th Cir.1980), cert. denied, 450 U.S. 981, 101 S.Ct. 1517, 67 L.Ed.2d 816 (1981); Data Disc, Inc. v. Systems Technology Associates, Inc., 557 F.2d 1280, 1285 (9th Cir.1977). Where no hearing is held, the burden on the plaintiff is slight and all pleadings and affidavits are to be construed in the light most favorable to the plaintiff. Data Disc, Inc., 557 F.2d at 1285.

A District Court in a diversity case must apply the long arm statute of the forum state. Ohio’s long arm statute, O.R.C. § 2307.382, provides in pertinent part:

(A) A court may exercise personal jurisdiction over a person who acts directly or by an agent, as to a cause of action arising from the person’s:
(1) transacting any business in this state; ____ 1

The Ohio statute has been construed to extend personal jurisdiction to the constitutional limits set by the Due Process Clause. See R.L. Lipton Distributing Co. v. Dribeck Importers, Inc., 811 F.2d 967, 969 (6th Cir. 1987); In-Flight Devices Corp. v. Van Dusen Air, Inc., 466 F.2d 220, 224 (6th Cir.1972). Thus, an analysis of personal jurisdiction under Ohio law becomes an “examination of constitutional limitations.” Lipton, 811 F.2d at 969.

The United States Supreme Court has determined that:

[D]ue process requires only that in order to subject a defendant to a judgment in personam, if he be not present within the territory of the forum, he have certain minimum contacts with it such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.

International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 *917 (1945) (quoting Milligan v. Meyer, 311 U.S. 457, 61 S.Ct. 339, 85 L.Ed. 278 (1940)).

The United States Court of Appeals for the Sixth Circuit has set forth three criteria to be satisfied in order to meet the “minimum contacts” test of International Shoe:

First, the defendant must purposely avail himself of the privilege of acting in the forum state or causing a consequence in the forum state. Second, the cause of action must arise from the defendant’s activities there. Finally, the acts of the defendant or consequences caused by the defendant must have a substantial enough connection with the forum state to make the exercise of jurisdiction over the defendant reasonable.

Southern Machine Co. v. Mohasco Industries, Inc., 401 F.2d 374, 381 (6th Cir.1968). If these three tests are met, then personal jurisdiction will be upheld unless traditional notions of fair play and substantial justice are offended. Id.

The above formula is not to be applied mechanically; rather, it is to be applied in light of all the particular facts in each case. Gibbs, 631 F.2d at 440. However, “the Constitutional touchstone remains whether the defendant purposefully established ‘minimum contacts’ with the forum state.” Burger King Corp. v. Rudzewicz, 471 U.S. 462, 474, 105 S.Ct. 2174, 2183, 85 L.Ed.2d 528 (1985).

The plaintiff relies on several cases in which personal jurisdiction was upheld, but, as noted by the court in one of plaintiffs cases, Reliance Electric Co. v. Luecke, 695 F.Supp. 917, 921 (S.D.Ohio 1988), “[a] determination as to whether the exercise of in personam jurisdiction is appropriate cannot be made by comparing the facts of one case with those of another or by rigidly applying a set of dogmatic rules.”

The first prong of the Southern Machine test is whether the defendant has “acted” within Ohio.

In this Circuit one has “acted” so as to transact business in a state “when obligations created by the defendant or business operations set in motion by the defendant have a realistic impact on the commerce of that state.” Such “acts” become purposeful if the defendant “should have reasonably foreseen that the transaction would have consequences in that state.”

In-Flight Devices, 466 F.2d at 226 (quoting Southern Machine Co. v. Mohasco Industries, Inc., 401 F.2d at 381).

The “purposeful action test” is “designed to ensure that the defendant has become involved with Ohio through actions freely and intentionally done.” In-Flight Devices, 466 F.2d at 228. It appears that agents of plaintiff in Maryland solicited the contract with the defendant, and all contract negotiations took place in Maryland. See Allen Declaration attached to Defendant’s Motion to Dismiss for Lack of Personal Jurisdiction or, in the Alternative, to Transfer Venue, ¶ 5.

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Cite This Page — Counsel Stack

Bluebook (online)
829 F. Supp. 915, 1993 U.S. Dist. LEXIS 15671, 1993 WL 328357, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nationwide-life-insurance-v-hampton-supply-inc-ohsd-1993.