Nespresso USA, Inc. v. Ethical Coffee Co. SA

263 F. Supp. 3d 498
CourtDistrict Court, D. Delaware
DecidedJuly 13, 2017
DocketCivil Action No. 16-194-GMS
StatusPublished
Cited by27 cases

This text of 263 F. Supp. 3d 498 (Nespresso USA, Inc. v. Ethical Coffee Co. SA) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nespresso USA, Inc. v. Ethical Coffee Co. SA, 263 F. Supp. 3d 498 (D. Del. 2017).

Opinion

MEMORANDUM OPINION

Gregory M. Sleet, UNITED STATES DISTRICT JUDGE

I. INTRODUCTION

On December 21, 2015, Nespresso USA filed a complaint against Ethical Coffee Company SA (“ECC”) requesting declaratory judgment that Nespresso USA does not infringe ECC’s U.S. Patent No. 9,113,-746 (the “’746 Patent”). (D.I. 1 ¶ 30-31). On April 18, 2016, ECC answered the complaint, and counterclaimed that Nespresso USA, Nestlé Nespresso SA, Nestlé SA (“Nestlé”), and Nestec SA (“Nestec”) infringe the ’746 Patent, violate the Sherman Act, conduct unfair competition, and commit unjust enrichment. (D.I. 24 ¶ 1-3).1 On August 10, 2016, Nestlé and Nestec filed a motion to dismiss for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2). (D.I. 51-52). For the reasons that follow, court will grant the motion to dismiss.

II. BACKGROUND

Nestlé is a corporation organized under the laws of Switzerland, and with its principal place of business in Switzerland. (D.I. 54 ¶ 2-3). Nestec is also a corporation organized under the laws of Switzerland, and with its principal place of business in Switzerland. (D.I. 55 ¶ 2-3). Each of the named defendants are related to each other through a shared corporate hierarchy. (D.I. 41 ¶ 7-8). Nespresso USA is a subsidiary of Nestlé Nespresso SA, which is a direct subsidiary of Nestlé. (D.I. 54 H13). Nestec is an affiliate of Nestlé Nespresso SA, and Nespresso USA, and a wholly owned subsidiary of Nestlé. Id.

The degree to which Nestlé and Nestec are involved with the actions giving rise to the present suit is contested. (DJ. 52 at 3-5); (D.I. 58 at 2-8). ECC contends that Nestlé and Nestec “coordinate and execute the manufacture, import, marketing, distribution, and sale of the accused Nespresso [502]*502machines in the U.S.” (D.I. 58 at 2). ECC uses the declaration of Jean-Paul Gaillard (“Gaillard”), the chairman.and founder of ECC, to allege that “Nestlé SA was and remains responsible for ultimate decision making with respect to the development and manufacturing of Nespresso products, production, research, and development and technical specifications.” (D.I. 60 ¶¶ 1, 7). And that “Nestec SA was and is mainly a ‘service company’ with the task to ensure and supervise implementation -of Nestlé SA central policies.” M ¶ 9.' . -

Nestlé and Nestec deny the aforementioned allegations, and offer two declarations to allege Nestlé and Nestec do not have contacts with the United States or Delaware. (D.I. 54, 55), Ricardo Cortes-Monroy, the Senior Vice President and General Counsel of Nestlé, asserts that Nestlé is not registered to do business in the U.S., does not maintain a registered agent for service, own any real property, offices, manufacturing plants, research facilities, have a mailing address or telephone listing in the U.S., or engage in the espresso market in the U.S. through sales or product development. (D.I. 54 ¶¶ 4-11), Odette Dupont, the Vice President of Nes-tec, . asserts similar claims as Ricardo Cortes-Monroy, while also asserting Nes-tec has its own board of directors, Nestec’s officers make the day-to-day operating decisions of Nestec, and that “Nestec did not design or manufacture Nespresso’s Original Line machines.” (D.I. 55 ¶¶ 5-14).

III. STANDARD OF REVIEW

The court must dismiss a case when it lacks personal jurisdiction over the defendant; Fed. R. Civ. P. 12(b)(2); Freres v. SPI Pharma, Inc., 629 F.Supp.2d 374, 382 (D. Del. 2009), The plaintiff bears the burden of establishing that the defendants are properly subject to the court’s jurisdiction. See ICT Pharm., Inc. v. Boehringer Ingelheim Pharm., Inc., 147 F.Supp.2d 268, 270-71 (D. Del. 2001). Because no evidentiary hearing occurred, the plaintiff bears the burden of alleging facts sufficient to make a prima facie case of personal jurisdiction over the defendant. Telcordia Techs., Inc. v. Alcatel S.A., No. 04-874 GMS, 2005 WL 1268061, at *2, 2005 U.S. Dist. LEXIS 10194, at *5 (D. Del. May 27, 2005). To satisfy this burden, the plaintiff must adduce facts which “establish with reasonable particularity” that jurisdiction pver Nestlé or Nestec exists. See Joint Stock Soc’y v. Heublein, Inc., 936 F.Supp. 177, 193 (D. Del. 1996).

Personal jurisdiction is derived from two separate sources: state statutory law and U.S. constitutional due process. Inamed Corp. v. Kuzmak, 249 F.3d 1356, 1359-60 (Fed. Cir. 2001). The Delaware long-arm statute, however, has been construed “broadly to confer jurisdiction to the maximum extent possible under the Due Process Clause,” so the focus of the inquiry traditionally rests on the constitutional component. Del. Code. Ann. Tit. 10 § 3104 (West 2017); see Merck & Co., Inc. v. Barr Labs., Inc., 179 F.Supp.2d 368, 372 (D. Del. 2002) (citing Hercules Inc. v. Leu Trust & Banking Ltd., 611 A.2d 476, 480-81 (Del. 1992)).2

[503]*503“[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.” Int’l Shoe Co. v. State of Wash., Office of Unemployment Compensation & Placement, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945) (internal quotation marks omitted). Since the Supreme Court initially announced this rule in International Shoe, the doctrine has split into two categories: specific and general jurisdiction. Specific jurisdiction exists where “the defendant has ‘purposefully directed’ his activities at residents of the forum, and the litigation results from alleged injuries that ‘arise out of or relate to’ those activities.” Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472-73, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985) (internal citations omitted) (quoting Keeton v. Hustler Magazine, Inc., 465 U.S. 770, 774, 104 S.Ct. 1473, 79 L.Ed.2d 790 (1984); Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984)). In contrast, general jurisdiction does not require that the cause of action arise out of contacts with - the forum state. Helicopteros, 466 U.S. 408 at 421, 104 S.Ct. 1868, 80 L.Ed.2d 404. Rather, general jurisdiction exists where the defendant’s contacts with the forum “are so continuous and systematic as to render -it essentially at home in the forum State.” Daimler AG v. Bauman, — U.S.-, 134 S.Ct. 746, 761, 187 L.Ed.2d 624 (2014) (quoting Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 131 S.CL 2846, 2851, 180 L.Ed.2d 796 (2011)).

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Bluebook (online)
263 F. Supp. 3d 498, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nespresso-usa-inc-v-ethical-coffee-co-sa-ded-2017.