Prescott v. Bayer HealthCare Pharmaceuticals Inc.

CourtDistrict Court, N.D. California
DecidedJune 29, 2020
Docket5:20-cv-00102
StatusUnknown

This text of Prescott v. Bayer HealthCare Pharmaceuticals Inc. (Prescott v. Bayer HealthCare Pharmaceuticals Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prescott v. Bayer HealthCare Pharmaceuticals Inc., (N.D. Cal. 2020).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 STEVEN PRESCOTT et al., Case No. 5:20-cv-00102 NC 8 Plaintiffs, ORDER DENYING 9 v. DEFENDANT’S MOTION TO DISMISS FOR LACK OF 10 PERSONAL JURISDICTION BAYER HEALTHCARE LLC, et al., AND TO TRANSFER VENUE 11 Defendants. Re: Dkt. No. 25 12 13 14 Plaintiffs Steven Prescott and Mike Xavier bring this putative class action against 15 defendants Bayer HealthCare LLC and Beiersdorf, Inc. for (1) unfair and unlawful 16 business practices, (2) deceptive advertising practices, (3) violation of the Consumers 17 Legal Remedies Act, (4) breach of express warranty, and (5) unjust enrichment. See Dkt. 18 No. 1; Dkt. No. 28. Before the Court are Defendants’ motions to dismiss for lack of 19 personal jurisdiction and to transfer venue. See Dkt. No. 25. The Court concludes that 20 Defendants are subject to this Court’s personal jurisdiction and that transferring this case 21 to the District of New Jersey would not substantially increase convenience or fairness. 22 Accordingly, the Court DENIES Defendants’ motion. 23 I. Background 24 A. Factual Allegations 25 Plaintiffs Steven Prescott and Mike Xavier are residents of California. Dkt. No. 28 26 (“FAC”) ¶¶ 10–11. In 2017, both men bought various Coppertone sunscreen lotions 27 because the products’ label and advertising claimed the lotions were “mineral based.” Id. 1 active ingredients. See id. ¶¶ 4, 31–32. If Prescott and Xavier knew that the lotions 2 contained chemical active ingredients, they would not have purchased it. Id. 3 Bayer HealthCare LLC is a Delaware company that has its principal place of 4 business in Whippany, New Jersey. Id. ¶ 12. Bayer owned, manufactured, or distributed 5 Coppertone sunscreen products and had created or authorized the labeling for those 6 products. Id. ¶ 12. Beiersdorf, Inc. is also a Delaware corporation and has its principal 7 place of business in Wilton, Connecticut. Id. ¶ 13. Both Bayer and Beiersdorf conduct 8 business in California. Id. ¶ 12–13. 9 In September 2019, Bayer’s parent company sold the Coppertone brand, including 10 the Coppertone sunscreen lotions, to Beiersdorf’s parent company. Id. ¶ 14. Beiersdorf, in 11 turn, now owns, manufactures, and distributes the Coppertone products, and also created or 12 authorized the labeling for the products. Id. ¶ 13. 13 B. Procedural History 14 Plaintiffs filed their initial complaint on January 3, 2020. See Dkt. No. 1. After 15 Defendants filed the instant motion to dismiss for lack of personal jurisdiction and motion 16 to transfer venue (see Dkt. No. 25), Plaintiffs filed their first amended complaint alleging 17 (1) unfair and unlawful business practices, (2) deceptive advertising practices, (3) violation 18 of the Consumers Legal Remedies Act, (4) breach of express warranty, and (5) unjust 19 enrichment. See FAC. The amended complaint dropped Bayer HealthCare 20 Pharmaceuticals, Inc., Bayer AG, Beiersdorf North America, Inc., and Beiersdorf AG as 21 defendants. Id. All parties consented to the jurisdiction of a magistrate judge. See Dkt. 22 Nos. 8, 24. 23 II. Legal Standard 24 A. Personal Jurisdiction 25 When a defendant moves to dismiss a complaint for lack of personal jurisdiction, 26 the plaintiff bears the burden to show that jurisdiction is appropriate. Sher v. Johnson, 911 27 F.2d 1357, 1361 (9th Cir.1990). When no evidentiary hearing is held regarding personal 1 withstand the motion to dismiss.’” Brayton Purcell LLP v. Recordon & Recordon, 606 2 F.3d 1124, 1127 (9th Cir. 2010) (quoting Pebble Beach Co. v. Caddy, 453 F.3d 1151, 1154 3 (9th Cir. 2006)). “[W]e may not assume the truth of allegations in a pleading which are 4 contradicted by affidavit, but we resolve factual disputes in the plaintiff’s favor.” Mavrix 5 Photo, Inc. v. Brand Technologies, Inc., 647 F.3d 1218, 1223 (9th Cir. 2011) (citing Data 6 Disc, Inc. v. Sys. Tech. Assocs., Inc., 557 F.2d 1280, 1284 (9th Cir. 1977)). The plaintiff 7 cannot “simply rest on the bare allegations of its complaint,” but uncontroverted 8 allegations in the complaint must be taken as true. Schwarzenegger v. Fred Martin Motor 9 Co., 374 F.3d 797, 800 (9th Cir. 2004) (quoting Amba Mktg. Sys., Inc. v. Jobar Int’l, Inc., 10 551 F.2d 784, 787 (9th Cir. 1977)). 11 Due process requires that a defendant “have certain minimum contacts” with the 12 forum state “such that the maintenance of the suit does not offend ‘traditional notions of 13 fair play and substantial justice.’” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945). 14 There are two forms of personal jurisdiction: specific jurisdiction or general jurisdiction. 15 Daimler AG v Bauman, 571 U.S. 117, 127. General jurisdiction exists when a defendant is 16 domiciled in the forum state or his activities in the forum are “substantial” or “continuous 17 and systematic.” Panavision Intern., L.P. v. Toeppen, 141 F.3d 1316, 1320 (9th Cir. 1998) 18 (internal quotation marks omitted). Typically, a forum has general jurisdiction over a 19 business only if it is incorporated in the forum state or has its principal place of business in 20 the forum state. See Daimler AG, 571 U.S. at 139. When the nonresident defendant’s 21 contacts with the forum are insufficiently pervasive to subject it to general jurisdiction, the 22 court must ask whether the “nature and quality” of his contacts are sufficient to exercise 23 specific jurisdiction. Data Disc, 557 F.2d at 1287. Specific jurisdiction exists when the 24 case arises out of the defendant’s conduct in the forum state. Ranza v. Nike, Inc., 793 F.3d 25 1059, 1068 (9th Cir. 2015). 26 B. Transfer Venue 27 28 U.S.C. § 1404(a) provides: “For the convenience of the parties and witnesses, in 1 division where it might have been brought.” The purpose of the statute is “to prevent the 2 waste of time, energy and money and to protect litigants, witnesses and the public against 3 unnecessary inconvenience and expense.” Van Dusen v. Barrack, 376 U.S. 612, 616 4 (1964). In order to transfer venue pursuant to § 1404(a), the court “requires two 5 findings—that the [transferee] district court is one where the action ‘might have been 6 brought’ and that the convenience of parties and witnesses in the interest of justice favor 7 transfer.” Hatch v. Reliance Ins. Co., 758 F.2d 409, 414 (9th Cir. 1985) 8 To determine whether an action “might have been brought” in a district, the court 9 looks to whether the action initially could have been commenced in that district. See Van 10 Dusen, 376 U.S. at 620. If the transferee district is appropriate, the court then considers 11 whether the transfer would be convenient and fair. Jones v. GNC Franchising, Inc., 211 12 F.3d 495, 498–99 (9th Cir. 2000).

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Prescott v. Bayer HealthCare Pharmaceuticals Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/prescott-v-bayer-healthcare-pharmaceuticals-inc-cand-2020.