Piotrowicz v. Techtronic Industries North America, Inc.

District Court, S.D. New York·Decided July 21, 2022·No. 1:19-cv-11522-JLR·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ARKADIUSZ PIOTROWICZ, Plaintiff, -v.- 19 Civ. 11522 (KPF) TECHTRONIC INDUSTRIES NORTH AMERICA, INC.; ONE WORLD TECHNOLOGIES, INC.; OPINION AND ORDER RYOBI TECHNOLOGIES, INC.; HOME DEPOT U.S.A., INC.; and NINGBO DALTON MACHINERY INDUSTRIAL COMPANY, LTD., Defendants. KATHERINE POLK FAILLA, District Judge: Plaintiff Arkadiusz Piotrowicz is a former self-employed carpenter who was seriously injured while using a miter saw that he alleges was defectively designed, manufactured, distributed, and sold by Techtronic Industries North America, Inc. (“Techtronic”); One World Technologies, Inc. (“One World”); Ryobi Technologies, Inc. (“Ryobi,” and together with Techtronic and One World, the “Ryobi Defendants”); Home Depot U.S.A., Inc. (“Home Depot”); and Ningbo Dalton Machinery Industrial Company, Ltd. (“Dalton,” and together with the Ryobi Defendants and Home Depot, “Defendants”). Plaintiff brought this action under the Court’s diversity jurisdiction, asserting claims for strict products liability, negligence, and breach of warranty. In this second round of motion practice, Dalton has moved to dismiss the claims and crossclaims asserted against it for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2). For the reasons that follow, the Court grants Dalton’s motion and dismisses all claims against it. BACKGROUND1 Dalton’s present motion is the second jurisdictional challenge filed in this case. Previously, P&F Brother Industrial Corp. (“P&F”), who has since been dismissed from the case (see Dkt. #121), filed its own motion to dismiss for

lack of personal jurisdiction (Dkt. #82). By Opinion and Order dated April 30, 2021, the Court denied the motion without prejudice and granted limited jurisdictional discovery to determine whether P&F contributed to the ultimate sale of the saw at issue here. (Dkt. #107). See Piotrowicz v. Techtronic Indus. N. Am., Inc., No. 19 Civ. 11522 (KPF), 2021 WL 1721709, at *6 (S.D.N.Y. Apr. 30, 2021) (“Piotrowicz I”). The Court assumes familiarity with the relevant facts set forth in Piotrowicz I, and discusses here only the factual and procedural background relevant to resolving the narrow issue now before it.

A. Factual Background 1. Plaintiff Plaintiff is a resident of Brooklyn, New York, who suffered catastrophic injuries while using a miter saw in New Paltz, New York, on August 21, 2018. (FAC ¶¶ 1, 36).2 On that date, Plaintiff was using a Ryobi Compound Miter

1 The facts in this Opinion are drawn primarily from the Fourth Amended Complaint (“FAC” (Dkt. #98)), which is the operative pleading in this case. The Court also sources facts from the declaration of Jack Cheng submitted in support of Dalton’s motion (“Cheng Decl.” (Dkt. #143-1)) and the declaration of Jesse M. Minc submitted in opposition to Dalton’s motion (“Minc Decl.” (Dkt. #144)). For ease of reference, the Court refers to Dalton’s memorandum of law in support of its motion to dismiss as “Def. Br.” (Dkt. #143-2); Plaintiff’s memorandum of law in opposition to Dalton’s motion as “Pl. Opp.” (Dkt. #145); and Dalton’s reply memorandum of law as “Def. Reply” (Dkt. #153). 2 In Plaintiff’s words: Miter saws employ circular cutting blades which are attached to an electric rotary motor and are hand-operated; the saw/machine is Saw bearing model number TS1552/TS1552DXL (the “Saw”) that he had purchased from a Home Depot store located in New York. (Id. at ¶¶ 36-37, 73). Plaintiff alleges that, as he was operating the Saw, the Saw malfunctioned and

amputated his left hand above the wrist. (Id. at ¶ 36). Plaintiff had his hand surgically reattached, but continues to experience adverse sequelae from the accident. (Id.). Among other things, Plaintiff has undergone additional surgeries and is recommended to undergo still more; has suffered from infections, scar tissue buildup, immobility, and pain; has been unable to return to work as self-employed carpenter; and is engaged in an intense and ongoing regimen of physical therapy and other treatment. (Id.). 2. Dalton Dalton is a foreign business corporation incorporated in China and

headquartered in Yuyao City, Zhejiang, China. (FAC ¶ 18). Dalton designs, manufactures, distributes, and sells tools, power tools, and other electrical equipment. (Id. at ¶ 19). According to Dalton, it has never been authorized to conduct business in any country other than China; does not maintain an office or bank account in New York; does not solicit business in New York; has never

attached to an articulating arm, which connects to the base of the saw at an angle and which can be moved up/down and turned at various angles to cut wood and other products. Materials are placed on the base of the saw, and the articulating arm is brought down upon the materials when a user wants to make a cut. These types of saws bear the nickname “chop saws” because the articulating arm moves in and up-and-down “chopping” motion during use/cutting. (FAC ¶ 37; see also Minc Decl., Ex. 2A (design drawings of the saw at issue in this case)). negotiated a contract in New York; and has no employees in New York. (See Cheng Decl. ¶¶ 7, 29-34). As alleged, however, Dalton transacts business within New York by manufacturing tools and other equipment for use within

the state and by supplying and distributing such tools and equipment to third parties, such as the Ryobi Defendants and Home Depot, knowing that the items will be sold, purchased, and used in New York. (FAC ¶ 20). Of particular relevance here, Dalton manufactured the Saw and other model TS1552/TS1552DXL miter saws (the “Model Saws”) in Yuyao City, Zhejiang Province, China, pursuant to a Supply Agreement (the “Agreement”) between nonparties Precision Technology Industries Ltd. (“PTIL”) and Techtronic Industries Company, Ltd. (“TTI”). (See Cheng Decl. ¶ 14; see also

Dkt. #147 (sealed Agreement)).3 PTIL is a Bermuda corporation that wholly owns Dalton, and TTI is an affiliate of Techtronic. (Pl. Opp. 6-7; see also Minc Decl., Ex. 2 at ¶ 3; Cheng Decl. ¶¶ 12, 16-17). Although Dalton was not a signatory to the Agreement, the Agreement provided that PTIL would “cause and procure that Dalton complies in all respects with the obligations imposed upon [PTIL] under this Agreement as if [Dalton] were named a party to this

3 The parties filed the Agreement under seal “to avoid an inadvertent violation of the Confidentiality Order, and out of respect for confidentiality between the parties generally[.]” (Dkt. #146). While the Agreement itself is viewable only to the parties and Court, both parties’ submissions in connection with Dalton’s motion to dismiss reference and discuss specific provisions of the Agreement. (See, e.g., Pl. Opp. 13 (citing Agreement §§ 2.2-2.3)); Def. Reply 5 (discussing Agreement §§ 5.1-5.5)). Given that the Court’s references and citations to the Agreement substantially mirror those of the parties, the Court finds it unnecessary to redact references to the Agreement in this Opinion. Agreement in place of [PTIL.]” (Agreement § 4.7.3). The Agreement, which was executed on July 25, 2002, had an initial term of five years. (Id., § 9.1). Several provisions of the Agreement are pertinent here. Under the

Agreement, Dalton and PTIL agreed to manufacture the Model Saws and several other products exclusively for TTI. (Agreement §§ 2.3, 4.7; see also id. at Schedule 1 (listing three additional products)). In exchange, TTI agreed to use “reasonable endeavors” to order enough of the products identified in the Agreement “as to enable Dalton to operate at close to full capacity” and ensure Dalton and PTIL earned certain minimum revenues. (Id., § 2.2).

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Piotrowicz v. Techtronic Industries North America, Inc., (S.D.N.Y. 2022).

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