Noco Company v. Jasper Industrial Supply, Inc.

CourtDistrict Court, N.D. Ohio
DecidedDecember 12, 2023
Docket1:22-cv-00851
StatusUnknown

This text of Noco Company v. Jasper Industrial Supply, Inc. (Noco Company v. Jasper Industrial Supply, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Noco Company v. Jasper Industrial Supply, Inc., (N.D. Ohio 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF OHIO EASTERN DIVISION

NOCO COMPANY, ) CASE NO. 1:22-cv-00851 ) Plaintiff, ) ) JUDGE BRIDGET MEEHAN BRENNAN v. ) ) JASPER INDUSTRIAL SUPPLY, INC., ) MEMORANDUM OPINION AND ) ORDER Defendant. ) )

Before this Court is Defendant Jasper Industrial Supply, Inc.’s (“Jasper”) motion to dismiss for lack of personal jurisdiction, improper venue, and failure to state a claim. (Doc. No. 21.) Plaintiff Noco Company (“Noco”) moved unopposed for jurisdictional discovery, and the Court granted leave to conduct such discovery. (Doc. Nos. 23, 25.) After the close of jurisdictional discovery, the parties completed briefing Jasper’s motion to dismiss. (Doc. Nos. 35, 36.) For the reasons that follow, the Court concludes that it lacks personal jurisdiction over Jasper. Accordingly, the Court GRANTS Jasper’s motion to dismiss without reaching Jasper’s arguments regarding venue and failure to state a claim. I. Background A. Factual Background Noco makes and sells battery chargers, portable power devices, and related products and accessories. (Doc. No. 1 at ¶ 5.) As part of its marketing efforts for those products, Noco has registered several trademarks, such as marks for “NOCO GENIUS” and “ULTRASAFE.” (Id. at ¶ 19.) Noco sells some of its products directly to consumers, but Noco also sells to wholesalers and authorized resellers. (Id. at ¶¶ 26–28, 31.) When Noco works with authorized resellers, it enters into contracts with those resellers that limit the resellers’ ability to make bulk sales or resell Noco products to wholesalers. (Id.) Jasper is an Indiana corporation based in Indiana. (Id. at ¶ 6; Doc. No. 14-2 at ¶ 3.) Noco alleges that Jasper sold Noco products without authorization. (Doc. No. 1 at ¶ 33.) On information and belief, Noco claims that Jasper purchases Noco products from resellers in Ohio

and that Jasper makes sales to retail consumers in Ohio using a Walmart storefront. (Id. at ¶¶ 35, 39–42.) Based on Jasper’s alleged sales of Noco products, Noco raises claims for trademark infringement and dilution, trademark-related unfair competition and deceptive business practices, and tortious interference with reseller contracts. (Id. at ¶¶ 54–113.) B. Procedural Background On May 23, 2022, Noco filed the complaint in this case. (Id.) Jasper failed to timely respond, so the Clerk entered default on August 25, 2022. (Doc. No. 11.) Subsequently, Jasper moved to set aside the default. (Doc. No. 14.) The Court granted Jasper’s motion and vacated the default. (Doc. No. 19.) On February 16, 2023, Jasper filed its motion to dismiss. (Doc. No. 21.) Noco then

sought jurisdictional discovery, which Jasper did not oppose. (Doc. No. 23.) The Court granted the requested discovery. (Doc. No. 25.) During the course of discovery, Noco twice moved for extensions of the discovery deadline. (Doc. Nos. 28, 30.) The Court granted the first extension. (Doc. No. 29.) But it denied the second. (Doc. No. 34.) In seeking a second discovery extension, Noco argued that an extension would allow the parties to discuss settlement and that Jasper’s discovery responses were not due until two days after the discovery deadline. (Doc. Nos. 30, 32.) But as the Court explained when denying the second extension, settlement discussions are no excuse for skirting discovery obligations, and Jasper’s late response was an issue of Noco’s own making. (Doc. 34 at 310–11.)1 Shortly after the close of discovery, the parties completed briefing the motion to dismiss. (Doc. Nos. 35, 36.) II. Discussion A. Legal Standard District courts have discretion in deciding how to resolve motions to dismiss for lack of personal jurisdiction. A district court “may rely ‘upon the affidavits alone; it may permit

discovery in aid of deciding the motion; or it may conduct an evidentiary hearing to resolve any apparent factual questions.’” MAG IAS Holdings, Inc. v. Schmückle, 854 F.3d 894, 899 (6th Cir. 2017) (quoting Theunissen v. Matthews, 935 F.2d 1454, 1458 (6th Cir. 1991)). Regardless of the court’s choice, “[t]he party seeking to assert personal jurisdiction bears the burden of demonstrating that such jurisdiction exists.” Bird v. Parsons, 289 F.3d 865, 871 (6th Cir. 2002). However, the court’s choice of procedure affects the weight of the burden. When the court “‘rules on written submissions alone[,]’ the burden consists of ‘a prima facie showing that personal jurisdiction exists.’” Schneider v. Hardesty, 669 F.3d 693, 697 (6th Cir. 2012) (quoting Serras v. First Tenn. Bank Nat’l Ass’n, 875 F.2d 1212, 1214 (6th Cir. 1989)). But when the court conducts an evidentiary hearing, the burden is a preponderance of the

evidence. Id. The applicable burden is not fully settled for situations where, like here, courts have allowed some discovery but have not held an evidentiary hearing. Stolle Mach. Co., LLC v. RAM Precision Indus., 605 F. App'x 473, 480 n.5 (6th Cir. 2015). In Schneider v. Hardesty, the Sixth Circuit held that the prima facie standard generally applies in such situations. 669 F.3d at 698–99. The Schneider court left open the possibility, though, that preponderance of the

1 For ease and consistency, record citations are to the electronically stamped CM/ECF document and PageID# rather than any internal pagination. evidence might apply when there is “no real dispute as to the facts or to the extent of discovery.” Id. at 698 (internal quotations omitted) (quoting Dean v. Motel 6 Operating L.P., 134 F.3d 1269, 1272 (6th Cir. 1998)). That is, there might be an exception to the prima facie standard in those “rare instances” where the party asserting personal jurisdiction “has been granted all discovery requested and that discovery resulted in an undisputed set of facts such that an evidentiary

hearing would be pointless.” Id. at 699 (emphasis added). In this case, Noco has not received all discovery requested. The Court denied Noco’s second request for a discovery extension. (Doc. No. 34.) Moreover, Noco contends that Jasper’s productions were deficient. (Doc. No. 35 at 331–32; Doc. No. 35-2.) Noco is responsible for its failure to timely ensure compliance with its requested discovery.2 And the existence of these unresolved discovery issues means that the Schneider exception cannot apply. Therefore, the Court evaluates personal jurisdiction under the prima facie standard. To make a prima facie showing of personal jurisdiction, Noco need only “establish[] with reasonable particularity sufficient contacts between [Jasper] and the forum state to support

jurisdiction.” Neogen Corp. v. Neo Gen Screening, Inc., 282 F.3d 883, 887 (6th Cir. 2002) (quoting Provident Nat’l Bank v. Cal. Fed. Savings Loan Ass’n, 819 F.2d 434, 437 (3d Cir. 1987)). In assessing Noco’s prima facie case, the Court considers the evidence “in a light most favorable to [Noco]” and does not weigh “the controverting assertions of the party seeking dismissal.” Anwar v. Dow Chem. Co., 876 F.3d 841, 847 (6th Cir. 2017) (quoting Theunissen, 935 F.2d at 1459).

2 It is not clear whether and how the dispute over Jasper’s allegedly deficient discovery responses was resolved.

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