Reyes v. Freedom Smokes, Inc.

CourtDistrict Court, N.D. Ohio
DecidedApril 6, 2020
Docket5:19-cv-02695
StatusUnknown

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

Bluebook
Reyes v. Freedom Smokes, Inc., (N.D. Ohio 2020).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF OHIO EASTERN DIVISION

DANIEL FONTANEZ REYES, ) CASE NO. 5:19-cv-2695 ) ) PLAINTIFF, ) JUDGE SARA LIOI ) vs. ) ) MEMORANDUM OPINION AND ) ORDER FREEDOM SMOKES, INC., et al., ) ) ) DEFENDANTS. )

Before the Court is the motion of defendant LG Chem, Ltd. (“LG Chem”) to dismiss for lack of personal jurisdiction pursuant to Fed. R. Civ. P. 12(b)(2). (Doc. No. 11, Motion [“Mot.”].) Plaintiff Daniel Fontanez Reyes (“plaintiff” or “Reyes”) filed a response in opposition (Doc. No. 12, Opposition [“Opp’n”]) and LG Chem filed a reply (Doc. No. 13, Reply [“Reply”]). For the reasons set forth herein, the motion is granted. I. FACTUAL BACKGROUND This product liability action arises out of the explosion of a Lost Vape Therion DNA17C electronic cigarette (the “e-cigarette”) that caused serious injuries to Reyes. According to the amended complaint, Reyes purchased the e-cigarette from Freedom Smokes, Inc. (d/b/a MyFreedomSmokes.com) (“Freedom Smokes”), an online retailer of e-cigarette products and accessories. (Doc. No. 3-1, First Amended Complaint [“FAC”] ¶¶ 2, 6.) He also purchased a replacement battery for his e-cigarette—a model 18650 lithium-ion battery manufactured by LG Chem (the “Battery”)—from defendant Expo International, Inc. (“Expo”) through its website www.imrbatteries.com. (Id. ¶¶ 3, 4, 11.) On or about October 19, 2017, Reyes was driving his work semi-truck on I-75 South in Portage Township, Ohio when suddenly, and without warning, the e-cigarette in his front shirt pocket exploded. (Id. ¶ 18.) The explosion caught Reyes’ shirt and body on fire, causing severe first, second, and third-degree burns. (Id. ¶ 18, 20.) He was transported by ambulance to a nearby

hospital and was later flown to a hospital with a specialized burn unit. (Id. ¶ 19.) Reyes originally filed his product liability action in the Summit County Court of Common Pleas. (See Doc. No. 1.) The first amended complaint alleges that the explosion, and Reyes’ resulting injuries, were caused by various design and manufacturing defects in the Battery and e- cigarette. (FAC ¶¶ 17, 30.) On November 15, 2019, LG Chem removed the action to this Court based on diversity jurisdiction. (See Doc. No. 1.) One week later, on November 22, 2019, LG Chem filed the instant motion to dismiss pursuant to Rule 12(b)(2) claiming that “LG Chem is not subject to jurisdiction in Ohio.” (Doc. No. 11-1, Memorandum in Support (“Memo.”) at 92.1) Specifically, LG Chem contends it lacks sufficient contacts with Ohio for this Court to exercise personal jurisdiction over

it. In support of its motion, LG Chem states, inter alia, that it has never been registered to conduct business in Ohio, has never had an office in Ohio, has never owned or leased property in Ohio, has never had a registered agent for service of process in Ohio, has no employees in Ohio, has never paid Ohio income or property taxes, and has never had a mailing address, bank account, telephone number or post office box in Ohio. (Id.). Reyes argues that the motion should be denied or, in the alternative, requests the Court to permit the parties to conduct limited discovery on the issue of personal jurisdiction.

1 All page numbers refer to the page identification number generated by the Court’s electronic docketing system. II. LAW AND ANALYSIS A. Personal Jurisdiction Standard “The plaintiff bears the burden of establishing that jurisdiction exists.” Theunissen v. Matthews, 935 F.2d 1454, 1458 (6th Cir. 1991). When faced with a properly supported 12(b)(2)

motion, “the plaintiff may not stand on his pleadings but must, by affidavit or otherwise, set forth specific facts showing that the court has jurisdiction.” Id. (emphasis added). When presented with a well-supported 12(b)(2) motion and opposition, the Court has three procedural alternatives; it may (1) decide the motion on affidavits alone, (2) permit discovery in aid of deciding the motion, or (3) conduct an evidentiary hearing to resolve any apparent factual questions. Id. (citation omitted). A district court has discretion to select which procedural method that it will follow. Id. “However the court handles the motion, the plaintiff always bears the burden of establishing that jurisdiction exists.” Serras v. First Tenn. Bank Nat’l Ass’n, 875 F.2d 1212, 1214 (6th Cir. 1989) (citating cases). The method selected does, however, “affect the burden of proof the plaintiff must bear to avoid dismissal.” Theunissen, 935 F.2d at 1458; see also Serras, 875 F.2d at 1214 (“The

weight of the plaintiff’s burden … depends on whether the trial court chooses to rule on written submissions or to hear evidence on the personal-jurisdiction issue….”). Where, as here, the Court elects to decide the motion upon the written submissions, “the plaintiff must make only a prima facie showing that personal jurisdiction exists….” Theunissen, 935 F.2d at 1458 (citations omitted). That is, plaintiff need only demonstrate facts that would support a finding of personal jurisdiction. Welsh v. Gibbs, 631 F.2d 436, 438 (6th Cir. 1980) (citations omitted); see also Death v. Mabry, No. C18-5444 RBL, 2018 WL 6571148, at *2 (W.D. Wash. Dec. 13, 2018) (“A prima facie showing means that the plaintiff has produced admissible evidence, which if believed, is sufficient to establish the existence of personal jurisdiction.”). In

the absence of an evidentiary hearing, the Court must view the facts presented in the light most favorable to the nonmoving party. Bird v. Parsons, 289 F.3d 865, 871 (6th Cir. 2002). But the Court is not precluded from considering the undisputed factual representations of the defendant that are consistent with plaintiff’s representations. Kerry Steel, Inc. v. Paragon Indus., Inc., 106 F.3d 147, 153 (6th Cir. 1997).

“A valid assertion of personal jurisdiction must satisfy both the state long-arm statute, and constitutional due process.” Nationwide Mut. Ins. Co. v. Tryg Intern. Ins. Co., Ltd., 91 F.3d 790, 793 (6th Cir. 1996). “Of course, if jurisdiction is not proper under the Due Process Clause it is unnecessary to analyze jurisdiction under the state long-arm statute, and vice-versa.” Conn v. Zakharov, 667 F.3d 705, 711–12 (6th Cir. 2012) (citing Brunner v. Hampson, 441 F.3d 457, 467 (6th Cir. 2006)) (holding that where the plaintiff cannot show jurisdiction under the Ohio long- arm statute a due process analysis is unnecessary); Calphalon Corp. v. Rowlette, 228 F.3d 718, 721, 724 (6th Cir. 2000) (dismissing for lack of personal jurisdiction solely on due process grounds)). “Unlike other jurisdictions, Ohio does not have a long-arm statute that reaches to the limits

of the Due Process Clause, and the analysis of Ohio’s long-arm statute is a particularized inquiry wholly separate from the analysis of Federal Due Process law.” Conn, 667 F.3d at 712 (citing cases). Under Ohio Rev.

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Reyes v. Freedom Smokes, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/reyes-v-freedom-smokes-inc-ohnd-2020.