Nat'l Women's Political Caucus, Inc. v. Metropolitan Louisville Women's Political Caucus, Inc.
Opinion
CHRISTOPHER R. COOPER, United States District Judge *17The National Women's Political Caucus ("NWPC") brings this trademark infringement and unfair competition suit against Metropolitan Louisville Women's Political Caucus ("MLWPC"). MLWPC has moved to dismiss the case for lack of personal jurisdiction and improper venue or, alternatively, to transfer the case to a more appropriate venue. For the reasons that follow, the Court will deny all of MLWPC's motions and retain jurisdiction over the case.
I. Background
The Court here provides a brief factual overview to orient the personal jurisdiction and venue analysis. Further details relevant to that analysis will be set forth later in the opinion.
Founded in 1971, NWPC is a multi-partisan, grassroots political organization that seeks to increase women's participation in politics. Compl. ¶ 6. A nonprofit corporation organized under District of Columbia law, NWPC's lone office and employee are located in the District. Id. ¶ 1. In July 1971, NWPC began using in commerce the trademarks "National Women's Political Caucus," "NWPC," and an interlocking five-circle logo, intended to represent women of different races working together toward a common purpose. Id. ¶¶ 8-11. In 2004, NWPC began using in commerce a modernized version of the logo. Id. ¶ 12. NWPC contends that one or the other of the two designs have been in continuous commercial use since 1971. It also contends that it has acquired proper registration for these marks. See id. ¶¶ 18-23.
MLWPC was established in 1972 as a local chapter of NWPC. Id. ¶ 24. It is a nonprofit corporation organized under Kentucky law and headquartered in Louisville, Kentucky. Id. ¶ 2. NWPC says that it permitted MLWPC to use its marks so long as MLWPC remained a "local chapter in good standing," which requires the payment of membership dues to NWPC, attendance at NWPC meetings, and compliance with NWPC's bylaws, among other things. Id. ¶¶ 27-29.
In October 2016, however, NWPC "became concerned that MLWPC was violating NWPC's bylaws, including by endorsing male candidates for office and by failing to collect and transmit membership dues to NWPC." Id. ¶ 30. In December 2017, an NWPC attorney sent MLWPC a demand letter that purported to revoke MLWPC's permission to use any NWPC mark. Id. ¶ 32. MLWPC refused to comply, even after NWPC repeated its demands. See id. ¶¶ 33-36.
NWPC filed suit in June 2018. It brought claims for trademark infringement under
*18II. Legal Standards
A. Motion to Dismiss for Lack of Personal Jurisdiction
When a defendant moves to dismiss a lawsuit for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2), the "plaintiff bears the burden of making a prima facie showing that the Court has personal jurisdiction over the defendant." Bigelow v. Garrett,
B. Motion to Dismiss or Transfer for Improper Venue
Under Federal Rule of Civil Procedure 12(b)(3), a defendant may move to dismiss a suit for improper venue. "In considering a Rule 12(b)(3) motion, the court accepts the plaintiff's well-pled factual allegations regarding venue as true, draws all reasonable inferences from those allegations in the plaintiff's favor, and resolves any factual conflicts in the plaintiff's favor." Hunter v. Johanns,
III. Analysis
MLWPC moves to dismiss the case for lack of personal jurisdiction and improper venue. The Court begins with the personal jurisdiction question.
A. Personal Jurisdiction
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CHRISTOPHER R. COOPER, United States District Judge *17The National Women's Political Caucus ("NWPC") brings this trademark infringement and unfair competition suit against Metropolitan Louisville Women's Political Caucus ("MLWPC"). MLWPC has moved to dismiss the case for lack of personal jurisdiction and improper venue or, alternatively, to transfer the case to a more appropriate venue. For the reasons that follow, the Court will deny all of MLWPC's motions and retain jurisdiction over the case.
I. Background
The Court here provides a brief factual overview to orient the personal jurisdiction and venue analysis. Further details relevant to that analysis will be set forth later in the opinion.
Founded in 1971, NWPC is a multi-partisan, grassroots political organization that seeks to increase women's participation in politics. Compl. ¶ 6. A nonprofit corporation organized under District of Columbia law, NWPC's lone office and employee are located in the District. Id. ¶ 1. In July 1971, NWPC began using in commerce the trademarks "National Women's Political Caucus," "NWPC," and an interlocking five-circle logo, intended to represent women of different races working together toward a common purpose. Id. ¶¶ 8-11. In 2004, NWPC began using in commerce a modernized version of the logo. Id. ¶ 12. NWPC contends that one or the other of the two designs have been in continuous commercial use since 1971. It also contends that it has acquired proper registration for these marks. See id. ¶¶ 18-23.
MLWPC was established in 1972 as a local chapter of NWPC. Id. ¶ 24. It is a nonprofit corporation organized under Kentucky law and headquartered in Louisville, Kentucky. Id. ¶ 2. NWPC says that it permitted MLWPC to use its marks so long as MLWPC remained a "local chapter in good standing," which requires the payment of membership dues to NWPC, attendance at NWPC meetings, and compliance with NWPC's bylaws, among other things. Id. ¶¶ 27-29.
In October 2016, however, NWPC "became concerned that MLWPC was violating NWPC's bylaws, including by endorsing male candidates for office and by failing to collect and transmit membership dues to NWPC." Id. ¶ 30. In December 2017, an NWPC attorney sent MLWPC a demand letter that purported to revoke MLWPC's permission to use any NWPC mark. Id. ¶ 32. MLWPC refused to comply, even after NWPC repeated its demands. See id. ¶¶ 33-36.
NWPC filed suit in June 2018. It brought claims for trademark infringement under
*18II. Legal Standards
A. Motion to Dismiss for Lack of Personal Jurisdiction
When a defendant moves to dismiss a lawsuit for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2), the "plaintiff bears the burden of making a prima facie showing that the Court has personal jurisdiction over the defendant." Bigelow v. Garrett,
B. Motion to Dismiss or Transfer for Improper Venue
Under Federal Rule of Civil Procedure 12(b)(3), a defendant may move to dismiss a suit for improper venue. "In considering a Rule 12(b)(3) motion, the court accepts the plaintiff's well-pled factual allegations regarding venue as true, draws all reasonable inferences from those allegations in the plaintiff's favor, and resolves any factual conflicts in the plaintiff's favor." Hunter v. Johanns,
III. Analysis
MLWPC moves to dismiss the case for lack of personal jurisdiction and improper venue. The Court begins with the personal jurisdiction question.
A. Personal Jurisdiction
"There are two types of personal jurisdiction: 'general or all-purpose jurisdiction, and specific or case-linked jurisdiction.' " Xie,
Determining whether the Court has personal jurisdiction over a nonresident defendant like MLWPC turns, at first glance, on two questions: first, whether the D.C. long-arm statute authorizes jurisdiction, see
*19Xie,
For the exercise of jurisdiction to be consistent with the due process clause, "it is essential in each case that there be some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws." Hanson v. Denckla,
In addition to finding that the defendant purposefully availed itself of the forum state's benefits and protections, the Court must also conclude that "the assertion of personal jurisdiction would comport with 'fair play and substantial justice.' "
The Court will first address what turns out to be the most difficult question: whether MLWPC's contacts with, and activities in, the District of Columbia are sufficient to find that it purposefully availed itself of the privilege of conducting business here. The Court will then consider the propriety of exercising jurisdiction-regardless of MLWPC's contacts-in light of the "fair play and substantial justice" factors. Finally, the Court will examine the case-specific jurisdiction question, i.e. whether the contacts MLWPC has with the District are sufficiently related to the subject of the suit for this Court to exercise jurisdiction over MLWPC.
Purposeful Availment. It is evident that MLWPC's activities within the District of Columbia are ample enough to constitute purposeful availment.
Chief among these activities is MLWPC's decades-long practice of collecting and sending membership dues to NWPC in D.C. See Pl's Opp., Exs. E-F to Lent Decl. (documenting several years' of payments from MLWPC to NWPC). Several features of this practice are key to the jurisdictional question. For one, MLWPC sought and received-from NWPC, while in D.C.-permission to collect membership renewal fees. Pl's Opp., Ex. L to Lent Decl. (1989 MLWPC meeting minutes reporting that its representative "did ask National while in Washington if locals have the right to send out local renewal notices, which was affirmed"). For another, it appears that both parties to the suit believed MLWPC was required to collect and remit national member dues to NWPC in D.C. Though MLWPC now disputes that it was obligated to collect NWPC dues from its *20members, exhibits submitted by NWPC tell a different story. NWPC's bylaws require local caucuses to "[c]ollect and forward to the national office on a regular and timely basis ... the national portion of any and all NWPC membership dues paid at the state or local level." Pl's Opp., Ex. A to Lent Decl., at 4.1 MLWPC, at least for a time, acted accordingly; in 1990, for instance, the bulk of an MLWPC member's annual dues-$ 20 of $ 35-was set aside for NWPC.
The record contains additional evidence of MLWPC and NWPC's close and continuing relationship. MLWPC's own bylaws, for example, state that membership in the local caucus is "open to all persons, 18 years or older, who subscribe to the principles of the National Women's Political Caucus," and that the "goals of [MLWPC] shall be ... [t]o encourage and support the efforts of women who run for or are appointed to office, who support the goals of the National Women's Political Caucus."
That is not all. NWPC has also provided evidence of significant interaction between MLWPC members and NWPC. See Pl's Opp. at 8-10. The exhibits attached to NWPC's opposition show that MLWPC routinely encouraged its members to attend NWPC conventions and seek leadership roles in NWPC.
So this is what we know: MLWPC regularly collected and sent dues to NWPC in D.C.; it agreed to conduct itself according to NWPC's rules and envisioned itself as furthering the goals of NWPC, as reflected in its bylaws and through its use of NWPC's marks; it encouraged its members to participate in NWPC activities; and it maintained regular communication with NWPC since its inception. Taken together, these are strong indicia that MLWPC maintained an ongoing relationship with a D.C.-based entity, such that it purposefully availed itself of the benefits and protections *21of D.C. law. It strikes the Court that these systematic and continuous contacts with the District ought to make MLWPC amenable to a lawsuit here.
MLWPC's efforts to challenge that intuition all come up short. As for the dues issue, MLWPC makes three points: first, that it was not required to collect dues on behalf of NWPC; second, that it merely gave local members the option to join the national organization; and third, that it never paid NWPC out of its own coffers and only served as a "pass through" for its members' dues. See Def's Reply at 6; Woodward Aff. ¶ 11-12. The trouble with the first two arguments, however, is that they run counter to NWPC's allegations and supporting exhibits-which plausibly show that both NWPC and MLWPC, for at least some period of their relationship, believed the local caucus was required to collect dues on behalf of the national organization and that local members may have automatically paid national dues by joining the local organization. See supra 4. And, on a motion to dismiss, a plaintiff's factual allegations must be accepted as true unless they are "directly contradicted by an affidavit," which here they are not. Azamar v. Stern,
As for MLWPC's attempts to paint itself an independent actor, see Def's Reply at 3, it is true that the local organization has its own bylaws, but it is equally true that those bylaws reflect the group's close affiliation with NWPC. See supra 7; Pl's Opp., Ex. D to Lent Decl. Evidence of this relationship abounds throughout NWPC's supporting exhibits: MLWPC understood it had to abide by NWPC rules, the MLWPC mission statement tracks verbatim NWPC's mission statement, and the two organizations used the same five-circled design mark that is the subject of this suit, compare id., Ex. A to Lent Decl. with Ex. D to Lent Decl. In light of all this, MLWPC's attempts to minimize its relationship with NWPC, at least at the motion to dismiss stage, are unavailing.
The cases MLWPC cites do not alter the analysis. Hoping to lessen the import of MLWPC's affiliation with NWPC, it cites both Lapointe v. Van Note, No. CIV. 03-2128,
*22In support of its argument that the collection and transmission of dues to NWPC does not create a basis for personal jurisdiction in D.C., MLWPC urges the Court to consider COMSAT Corp. v. Finshipyards S.A.M.,
Perhaps recognizing the absence of helpful case law, MLWPC makes much of the fact that "NWPC cites no case under which any court-much less a court in this jurisdiction-found specific personal jurisdiction over an organization based solely on its 'affiliation' with or membership in an in-state entity." Def's Reply at 4. But NWPC need not cite a case standing for that proposition, because a holding in favor of NWPC does not depend on that proposition. Far from finding personal jurisdiction based on the status of the relationship between MLWPC and NWPC, it is the specific contours of that relationship-including MLWPC's active efforts to affiliate with NWPC, its collection and transmission of dues to NWPC in D.C., and the fact that MLWPC had to conform to NWPC rules to retain its status as a local caucus-that expose MLWPC to suit in the District.
*23And though no precise analog appears to exist, courts have suggested these sorts of contacts create a basis for personal jurisdiction. In Burger King, for example, a Florida-based franchisor sued a Michigan-based franchisee for breach of the franchise agreement and trademark infringement.
Granted, the Burger King analogy is not a perfect one. Here, there was no written contract between the two entities, nor was MLWPC subject to "the national organization's exacting regulation of virtually every conceivable aspect of ... operations."
All the same, these distinctions are not enough to compel a different conclusion on the personal jurisdiction question. Burger King made clear that the existence of a contract is not dispositive in either direction.
Just so here. MLWPC voluntarily chose to affiliate with NWPC, thereby creating an ongoing relationship between the two entities. The fact MLWPC was obligated-according to NWPC's allegations, which the Court must take as true for the purposes of this motion-to remit membership dues to the national organization in D.C., all while abiding by NWPC's rules, using NWPC's marks, and encouraging its members to attend and participate in NWPC events, suggests MLWPC "reach[ed] out beyond one state and create[d] continuing relationships and obligations with citizens of another state," namely D.C. Travelers Health Ass'n v. Com. of Va. ex rel. State Corp. Comm'n,
Fair Play and Substantial Justice Factors. MLWPC devotes little space in its submissions to the argument that, even if the Court were to find that MLWPC purposefully availed itself of the privilege of conducting business in D.C., it would nevertheless be gravely unfair to subject it to suit there. It appears MLWPC believed that the battle has likely been lost if the fight reached this front-and they are correct. None of the factors courts typically consider suggest exercising jurisdiction over MLWPC would offend "our traditional conception of fair play and substantial justice." International Shoe,
Relationship Between Contacts and Subject of Suit. That leaves only the question whether NWPC's causes of action "arise out of or relate to" MLWPC's contacts with the forum. Helicopteros Nacionales de Colombia, S.A. v. Hall,
B. Venue
MLWPC next moves either to dismiss the case for improper venue or to transfer it to a more convenient forum. The Court will reject both requests.
Venue law ensures that only courts with some interest in the dispute or the parties adjudicate the claims at issue. Under the general venue provisions for federal question cases set forth in
Even where venue is technically proper, however, a case may be transferred to a more convenient forum. Under
" Section 1404(a) is intended to place discretion in the district court to adjudicate motions for transfer according to an 'individualized, case-by-case consideration of convenience and fairness.' " Stewart Org., Inc. v. Ricoh Corp.,
*26Aishat v. U.S. Dep't of Homeland Sec.,
Among the private-interest factors, the plaintiff's choice of forum generally warrants "paramount consideration,"
To be sure, there are certain other situations where the plaintiff's choice of forum warrants substantially less deference, including where the venue chosen is "not plaintiff's home forum" and "there is an insubstantial factual nexus between the case and the plaintiff's chosen forum," New Hope Power Co. v. U.S. Army Corps of Engineers,
Not much need be said on the public-interest factors. MLWPC spends most of its single paragraph on this issue explaining why D.C. is not the superior forum rather than explaining why Kentucky is. But that argument supports the status quo, not transfer. MLWPC does claim that Kentucky has a stronger "local interest" in the case since MLWPC is a "Kentucky organization, with Kentucky-based board members, and with an entirely local focus." Def's Reply at 17. All that is true, but much the same could be said for the other side: NWPC is a D.C.-based organization, with its only office and employee in the city. The Court therefore cannot see how Kentucky's interest in the parties' trademark infringement and unfair competition dispute is any stronger than D.C.'s.
For all these reasons, the Court will deny MLWPC's motion to transfer the case.
IV. Conclusion
For the foregoing reasons, it is hereby *27ORDERED that [8] Defendant's Motion to Dismiss for Lack of Jurisdiction and Improper Venue or, Alternatively, to Transfer is DENIED. It is further
ORDERED that the Defendant shall file an answer to the complaint on or before February 11, 2019.
SO ORDERED .
Footnotes
359 F. Supp. 3d 13 (Nat'l Women's Political Caucus, Inc. v. Metropolitan Louisville Women's Political Caucus, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.