Ranahan v. Pheasant Wilsons

District Court, D. New Hampshire·Decided May 2, 1995·No. CV-95-9-SD·Published

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

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.

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

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.

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

2 RSA 293-A:15.10 provides, in relevant part, (b) A foreign corporation may be served by registered or certified mail, return receipt requested, addressed to the secretary of the foreign corporation at its principal office shown in its application for a certificate of authority or in its most recent annual report if the foreign corporation:

(1) has no registered agent or its registered agent cannot with reasonable diligence be served;

(2) has withdrawn from transacting business in this state under RSA 293-

A:15.20; or

(3) has had its certificate of authority revoked under RSA 293-A:15.31.

v . Erie Engine & Mfg. Co., 856 F. Supp. 5 2 , 55 (D.N.H. 1994). When the New Hampshire Legislature enacted RSA 293-A:15.10, it eliminated all of the restrictive long-arm language that had appeared in the statute's predecessors. In so doing, this court has held that the legislature "intended RSA 293-A:15.10 to

authorize jurisdiction over foreign corporations to the full extent allowed by federal law." Id. Accordingly, this court's

exercise of jurisdiction over Vanguard is authorized by RSA 293- A:15.10 if it comports with the requirements of due process.

Free access — add to your briefcase to read the full text and ask questions with AI

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

Ranahan v. Pheasant Wilsons (Ranahan v. Pheasant Wilsons) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Arkansas v. Tennessee
311 U.S. 1 (Supreme Court, 1940)
Hanson v. Denckla
357 U.S. 235 (Supreme Court, 1958)
Rodgers v. American Honda Motor Co.
46 F.3d 1 (First Circuit, 1995)
Juan Dalmau Rodriguez v. Hughes Aircraft Company
781 F.2d 9 (First Circuit, 1986)
United States v. Thomas J. Curran
967 F.2d 5 (First Circuit, 1992)
Robert S. Boit v. Gar-Tec Products, Inc.
967 F.2d 671 (First Circuit, 1992)
Associated Press v. United States
326 U.S. 1 (Supreme Court, 1945)
Benitez-Allende v. Alcan Aluminio do Brasil, S.A.
857 F.2d 26 (First Circuit, 1988)