Ranahan v. Pheasant Wilsons

CourtDistrict Court, D. New Hampshire
DecidedMay 2, 1995
DocketCV-95-9-SD
StatusPublished

This text of Ranahan v. Pheasant Wilsons (Ranahan v. Pheasant Wilsons) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ranahan v. Pheasant Wilsons, (D.N.H. 1995).

Opinion

Ranahan v . Pheasant Wilsons CV-95-9-SD 05/02/95 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

James J. Ranahan, Jr.; Deborah Ranahan

v. Civil N o . 95-9-SD

Pheasant Wilsons, Inc., d/b/a Wilsons Suede and Leather; Vanguard Chemical Corporation; 3M Company

O R D E R

In this diversity action, plaintiffs James and Deborah Ranahan seek to recover damages for personal injuries James Ranahan allegedly suffered after using a leather protectant spray manufactured by defendant Vanguard Chemical Corporation (Vanguard). Presently before the court is defendant Vanguard's motion to dismiss pursuant to Fed. R. Civ. P. 12(b)(2), to which plaintiff objects.

Background

Plaintiff James Ranahan alleges that on December 2 3 , 1992,

he purchased a leather coat and an aerosol can of "Wilsons

Leather Protector" (leather protectant) from a retail outlet

located in Manchester, New Hampshire, and owned by defendant Pheasant Wilsons, Inc., d/b/a Wilsons Suede and Leather

(Wilsons). Plaintiff allegedly sustained injuries after using

the leather protectant, which was manufactured for Wilsons by

defendant Vanguard.

Vanguard is a corporation organized under the laws of the

State of Missouri, with its principal and sole place of business in S t . Louis, Missouri. Affidavit of Barry Feldman ¶ 2 (attached

to Defendant's Motion as Exhibit A ) . Vanguard is licensed to do

business only in the State of Missouri; it has never been

licensed to do business in the State of New Hampshire. Id. ¶¶ 3-

4.

Vanguard is in the business of formulating and manufacturing

leather care products, which are then marketed under private

labels or under Vanguard's own labels. Consumer Product Safety

Commission (CPSC) Investigation Report of Dec. 3 0 , 1992

(Plaintiff's Appendix at 2 1 ) . Between 1989 and November of 1992,

Vanguard manufactured approximately two to three million cans of

leather protectant for Wilsons. In November 1992, as a result of

Environmental Protection Agency (EPA) regulations aimed at

phasing out the use of one of the leather protectant's

ingredients, Wilsons and Vanguard reformulated the leather

protectant using different component chemicals. Id. at 1 3 , 2 5 .

Wilsons placed an initial order for 625,000 cans of

2 reformulated leather protectant. CPSC Report of Dec. 2 8 , 1992

(Plaintiff's Appendix at 1 0 ) . By December 1 1 , 1992,

approximately 440,000 cans of the reformulated leather protectant

had been manufactured by Vanguard and sold to Wilsons. CPSC

Report (Appendix at 20-21). The products were shipped by

Vanguard to Wilsons' distribution centers in California and Minnesota, Feldman Affidavit ¶ 1 1 , and were then distributed by

Wilsons to its national chain of 550 retail stores. Wilsons sold

approximately 350,000 units of the reformulated product to

consumers. CPSC Report (Appendix at 1 3 ) . Wilsons' sales records

further indicate that more than 10,000 units were sold by Wilsons

in New Hampshire during November and December of 1992. 1 Wilsons

"Receipt-Sales-Returns" Records (Appendix at 3 - 4 ) .

Wilsons recalled the reformulated leather protectant on

December 2 8 , 1992, due to numerous consumer complaints of

respiratory problems associated with use of the product. See

Recall Announcement (Appendix at 7 - 8 ) .

1 The court notes that the record does not reveal whether all of the units sold in New Hampshire during this period were the reformulated product in the 5-ounce containers.

3 Discussion

1. Standard of Proof

When the court considers a motion to dismiss for lack of

personal jurisdiction without holding an evidentiary hearing, the

prime facie standard must be applied. United Elec. Workers v .

163 Pleasant Street Corp. [Pleasant Street I I ] , 987 F.2d 3 9 , 43 (1st Cir. 1993). Under this standard, the plaintiff has the

burden of making a prima facie showing that jurisdiction exists

"'based on evidence of specific facts set forth in the record.'"

Kopf v . Chloride Power Elecs., Inc., N o . 94-391-SD, ___ F. Supp.

___, ___, 1995 U.S. Dist. LEXIS 3 8 4 , at *23 (D.N.H. Jan. 1 2 ,

1995) (quoting Boit v . Gar-Tec Prods., Inc., 967 F.2d 6 7 1 , 675

(1st Cir. 1992)); see also Foster-Miller, Inc. v . Babcock &

Wilcox Canada, 46 F.3d 1 3 8 , 145 (1st Cir. 1995) ("To make a prima

facie showing . . . , the plaintiff ordinarily cannot rest upon

the pleadings, but is obliged to adduce evidence of specific

facts.").

In determining whether a plaintiff has made a prima facie

jurisdictional showing, the court accepts all properly supported

facts as true, and construes all reasonable inferences in favor

of the plaintiff. Foster-Miller, supra, 46 F.3d at 145;

Ticketmaster-New York, Inc. v . Alioto, 26 F.3d 2 0 1 , 203 (1st Cir.

1994). The court is not, however, required to "credit conclusory

4 allegations or draw farfetched inferences." Ticketmaster, supra,

26 F.3d at 203.

2. General Personal Jurisdiction

Plaintiffs assert that there are "continuous or systematic"

or "substantial" activities by Vanguard within New Hampshire to

warrant the exercise of general jurisdiction over the defendant.

"'General jurisdiction exists when the litigation is not

directly founded on the defendant's forum-based contacts, but the

defendant has nevertheless engaged in continuous and systematic

activity, unrelated to the suit, in the forum state.'" Pritzker

v . Yari, 42 F.3d 5 3 , 60 (1st Cir. 1994) (quoting United Elec.

Workers v . 163 Pleasant S t . Corp. [Pleasant Street I ] , 960 F.2d

1080, 1088 (1st Cir. 1992)) (emphasis added), petition for cert.

filed, 63 U.S.L.W. 3692 (U.S. Mar. 1 3 , 1995) (No. 94-1517). A

court with general jurisdiction over a nonresident defendant may

hear any suit against that defendant. See id. at 5 9 .

There is no evidence in the record showing, or even

suggesting, that Vanguard engaged in continuous and systematic

activity within New Hampshire unrelated to the instant

litigation. The court therefore finds that plaintiffs have

failed to establish sufficient facts to support a finding that

this court has general personal jurisdiction over Vanguard.

5 3. Specific Personal Jurisdiction

The proper exercise of specific in personam jurisdiction hinges on satisfaction of two requirements: first that the forum in which the federal district court sits has a long- arm statute that purports to grant jurisdiction over the defendant; and second, that the exercise of jurisdiction pursuant to that statute comports with the strictures of the Constitution.

Pritzker, supra, 42 F.3d at 6 0 . See also Ticketmaster, supra, 26

F.3d at 204; Pleasant Street I I , supra, 987 F.2d at 4 3 .

a. New Hampshire's Long-Arm Statute The long-arm statute governing the jurisdiction of New Hampshire courts over unregistered foreign corporations is New Hampshire Revised Statutes Annotated (RSA) 293-A:15.10.2 McClary

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