Powell v. PROFILE DESIGN LLC

825 F. Supp. 2d 842, 2011 U.S. Dist. LEXIS 121189, 2011 WL 5006825
CourtDistrict Court, S.D. Texas
DecidedOctober 17, 2011
Docket5:10-po-02644
StatusPublished
Cited by1 cases

This text of 825 F. Supp. 2d 842 (Powell v. PROFILE DESIGN LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powell v. PROFILE DESIGN LLC, 825 F. Supp. 2d 842, 2011 U.S. Dist. LEXIS 121189, 2011 WL 5006825 (S.D. Tex. 2011).

Opinion

MEMORANDUM AND ORDER

KEITH P. ELLISON, District Judge.

Pending before the Court is Plaintiff Joann Powell’s (“Plaintiff’ or “Powell”) Motion to Dismiss Defendant Profile Design’s (“Profile”) First Amended Third Party Complaint Under 12(b)(2) for Lack of Personal Jurisdiction. (Doc. No. 44.) Also pending is Third-Party Defendant HL (USA) Corporation’s (“HL (USA)”) Motion to Dismiss Under Rule 12(b)(2). (Doc. No. 68.) After considering the parties’ filings, all responses and replies thereto, and the applicable law, the Court *844 finds that Powell’s Motion to Dismiss should be denied for lack of standing and HL (USA)’s Motion to Dismiss should be granted.

I. BACKGROUND

This is a products liability case arising from a bicycle accident. Powell claims that, while she was riding her bicycle during a training ride, the weld of the aerobar stem failed, causing her to be thrown forward over the front of the bicycle onto the pavement. She alleges that she sustained significant injuries as a result of the accident. Powell subsequently filed this lawsuit against Profile for negligence, gross negligence, negligent failure to warn, strict liability for failure to warn, breach of express warranty, breach of implied warranty, and strict liability for manufacturing and design defects of the subject aerobar and stem. She contends that Profile was engaged in the business of designing, developing, manufacturing, testing, packaging, promoting, marketing, distributing, labeling, and/or selling the subject aerobar stem.

Profile appeared in this lawsuit, filed an answer, and filed a Third-Party Complaint against Hsin Lung Accessories Co. Ltd., HL Corp., HL China Corp., Kalin Development Limited, HL Corp., HL Corp. Ltd., Hsin-Tech Co. Ltd., and HL (USA) (hereinafter collectively referred to as “Third-Party Defendants”). Profile’s First Amended Third-Party Complaint alleges that the relevant bicycle stem was designed and manufactured by the Third-Party Defendants. (Doc. No. 42.) Thus, Profile argues, it is entitled to contribution and indemnity from the Third-Party Defendants under Chapter 33 of the Texas Civil Practice and Remedies Code.

Powell subsequently moved to dismiss Profile’s First Amended Third-Party Complaint on the grounds that the Court lacks personal jurisdiction over the Third-Party Defendants. Profile responded and argued that Powell lacked standing to raise lack of personal jurisdiction on behalf of the Third-Party Defendants under Rule 12(b)(2). Subsequently, Third-Party Defendant HL (USA) filed its own Motion to Dismiss, in which it contends that HL (USA), a California corporation, lacks sufficient contacts with Texas to justify this Court’s exercise of personal jurisdiction and that such an exercise would not comport with traditional notions of fair play and substantial justice. Profile has responded to HL (USA)’s Motion to Dismiss, arguing that HL (USA) has, indeed, directed purposeful conduct toward Texas sufficient to confer personal jurisdiction.

HL (USA) is the only Third-Party Defendant that has challenged the Court’s jurisdiction. The Court will first determine whether Powell has properly raised the behalf of all Third-Party Defendants. As explained below, the Court concludes that Powell lacks standing to raise the personal jurisdiction issue on behalf of the Third-Party Defendants and, therefore, the Court will not reach the merits of Powell’s Motion. The Court will then analyze whether the Court possesses personal jurisdiction over HL (USA), which has properly raised the issue in its Motion to Dismiss.

II. LEGAL STANDARD

“Absent a rule or statute to the contrary, ... a federal court [may] exercise jurisdiction over only those defendants who are subject to the jurisdiction of courts of the state in which the court sits.” Point Landing, Inc. v. Omni Capital International, Ltd., 795 F.2d 415, 419 (5th Cir.1986), aff'd sub nom. Omni Capital International, Ltd. v. Rudolf Wolff & Co., 484 U.S. 97, 108 S.Ct. 404, 98 L.Ed.2d 415 (1987). Because the Texas long-arm stat *845 ute, Tex. Civ. Prac. & Rem.Code Ann. §§ 17.041-17.045, is coterminous with the Due Process Clause of the Fourteenth Amendment to the United States Constitution, the Court’s constitutional due process inquiry into personal jurisdiction also serves as an inquiry into personal jurisdiction under the Texas long-arm statute. Command-Aire Corp. v. Ontario Mechanical Sales and Service Inc., 963 F.2d 90, 93-4 (5th Cir.1992).

To comport with constitutional due process, a plaintiff must show that: (1) defendants purposefully availed themselves of the benefits and protections of Texas law, thereby establishing “minimum contacts” with Texas such that defendants could reasonably have anticipated being haled into court there; and (2) under the circumstances, the exercise of personal jurisdiction “does not offend traditional notions of fair play and substantial justice.” Id. at 94 (citing Asahi Metal Industry Co. v. Superior Court of California, 480 U.S. 102, 107 S.Ct. 1026, 94 L.Ed.2d 92 (1987); Burger King Corp. v. Rudzewicz, 471 U.S. 462, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985); and Asarco, Inc. v. Glenara, Ltd., 912 F.2d 784 (5th Cir.1990)). See also Stuart v. Spademan, 772 F.2d 1185, 1192 (5th Cir.1985) (“When a nonresident defendant presents a motion to dismiss for lack of personal jurisdiction, the plaintiff bears the burden of establishing the district court’s jurisdiction over the nonresident.”). The minimum contacts requirement can be met through contacts sufficient to confer either specific or general jurisdiction. Cent. Freight Lines, Inc. v. APA Transp. Corp., 322 F.3d 376, 381 (5th Cir.2003) (citation omitted).

Specific jurisdiction exists “[w]hen a nonresident defendant has purposefully directed its activities at the forum state and the litigation results from alleged injuries that arise out of or relate to those activities.” Id. (citation omitted). “The non-resident’s purposefully directed activities in the forum must be such that he could reasonably anticipate being haled into court in the forum state.” Clemens v. McNamee, 615 F.3d 374, 378 (5th Cir.2010) (citing Burger King, 471 U.S. at 474, 105 S.Ct. 2174). See also Choice Healthcare, Inc. v. Kaiser Foundation Health Plan of Colo., 615 F.3d 364

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838 F. Supp. 2d 535 (S.D. Texas, 2012)

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Bluebook (online)
825 F. Supp. 2d 842, 2011 U.S. Dist. LEXIS 121189, 2011 WL 5006825, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powell-v-profile-design-llc-txsd-2011.