Salgado-Santiago v. American Baler Co.

394 F. Supp. 2d 394, 2005 U.S. Dist. LEXIS 36148, 2005 WL 1308317
CourtDistrict Court, D. Puerto Rico
DecidedMay 26, 2005
DocketCiv. 01-1264(SEC)
StatusPublished
Cited by1 cases

This text of 394 F. Supp. 2d 394 (Salgado-Santiago v. American Baler Co.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salgado-Santiago v. American Baler Co., 394 F. Supp. 2d 394, 2005 U.S. Dist. LEXIS 36148, 2005 WL 1308317 (prd 2005).

Opinion

OPINION AND ORDER

CASELLAS, District Judge.

Pending before the Court is Third Party Defendant’s (herein “American Baler”) motion for summary judgment for lack of personal jurisdiction and/or to dismiss for failure to state a claim upon which relief can be granted (Docket # 40). 1 Third Party Plaintiff (herein “Goettsch”) has filed an opposition (Docket # 56). American Baler replied (Docket # 76) and Goettsch surreplied (Docket # 79). After examining the parties’ filings, the case record and the applicable law, we find that American Bail-er’s motions should be DENIED.

Procedural Background

Aurelio Salgado-Santiago, his wife Carmen I. Pagán and the conjugal partnership constituted between them filed a products liability action claiming that American Baler, a corporation organized in the state of Ohio, designed, manufactured, distributed and/or sold a defective extrusion, baler which caused them damages (Docket # 1 at ¶ 8). 2 Allegedly, as a result of said defective extrusion baler, Co-plaintiff Salgado-Santiago was involved in an accident *398 which caused him to lose four fingers of his left hand, fracture his left wrist and injure other areas of his body (Docket # 1 at ¶ 9). Plaintiffs further contend that, as a result of this event, Co-plaintiff SalgadoSantiago sustained serious and disabling injuries to his left upper extremity, and has suffered physical as well as psychological injuries.

On May 17, 2001 American Baler filed a motion for summary judgment for lack of personal jurisdiction and/or to dismiss for failure to state a claim upon which relief can be granted (Docket # 7). There followed Plaintiffs’ motion for voluntary dismissal without prejudice of their claims against American Baler (Docket # 16). Plaintiffs then filed an amended complaint, this time naming Goettsch as defendant and alleging that Goettsch is hable to Plaintiffs for Co-plaintiff Salgado-Santiago’s accident since they “distributed and/or sold” the extrusion baler manufactured by American Baler to Co-plaintiff SalgadoSantiago’s employer, Packaging Unlimited, Inc. (herein “Packaging”), a company located in Guaynabo, Puerto Rico (Docket #19 at ¶ 8). Plaintiffs allege that Goettsch, a corporation organized under the laws of Puerto Rico, is liable for: (a) negligence; (b) strict liability in tort including manufacturing and/design defect, inadequate and insufficient warnings and/or instructions; and © negligent misrepresentation (Docket # 19 at ¶ 18).

Goettsch proceeded to answer the amended complaint (Docket # 24) and file the instant third party complaint against American Baler and Packaging (Docket # 27). In the third party complaint Goettsch alleges that since American Baler was the manufacturer and/or designer of the defective extrusion baler, it is liable to Goettsch for any amount that Goettsch becomes obliged to pay to Plaintiffs for their claims in the amended complaint (Docket # 27 at ¶ 7). 3 American Baler has once again filed a motion for summary judgment alleging that this Court does not have personal jurisdiction over it and, alternatively, that the third party complaint fails to state a claim upon which relief can be granted (Docket # 40).

In support of its motion requesting dismissal of Goettsch’s claims based on lack of personal jurisdiction, American Baler argues that: (I) the alleged defective extrusion baler was sold by it to a third party unrelated to the instant matter and in the state of Tennessee more than two (2) decades before the accident took place in Puerto Rico (Docket # 40 at ¶ 13); (ii) the fact that said product reached the Puerto Rico market cannot by itself provide a Puerto Rico court with personal jurisdiction over it (Docket # 40 at ¶¶ 14-15); (iii) American Baler has not engaged in continuous and systematic activities in Puerto Rico that would warrant general jurisdiction (Docket # 40 at ¶¶ 18-19); and (iv) American Baler does not have minimum contacts with the Puerto Rico forum to meet the specific jurisdiction standard (Docket # 40 at ¶¶ 20-25). Goettsch counters that American Baler has minimum contacts with the Puerto Rico forum to warrant this Court’s specific jurisdiction over it (Docket # 56).

In support of the motion requesting dismissal for failure to state a claim, American Baler argues that, under the products liability doctrine in Puerto Rico, Goettsch *399 failed to state a cognizable claim because it failed to identify the defect on the extrusion baler which caused the alleged damages (Docket # 40 at ¶ 36). In response, Goettsch states that the notice pleading standard is applicable to products liability claims. Accordingly, Goettsch avers that only a “short and plain statement” is required to state a claim for products liability and that they have met said requirement in their third party complaint (Docket # 56).

Standard of Review

I. Lack of Personal Jurisdiction

“The Due Process Clause protects an individual’s liberty interest in not being subject to the binding judgments of a forum with which he has established no meaningful ‘contacts, ties, or relations.’ ” Burger King Corp. v. Rudzewicz, 471 U.S. 462, 471-72, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985) (quoting Internat’l Shoe Co. v. Washington, 326 U.S. 310, 319, 66 S.Ct. 154, 90 L.Ed. 95 (1945)). Therefore, in order for a court to be able to make a binding decision, the court must have personal jurisdiction over each party to the case. Rodriguez v. Dixie S. Indus., Inc., 113 F.Supp.2d 242, 249 (D.Puerto Rico 2000) (citing United States v. Swiss Am. Bank, Ltd., 191 F.3d 30, 35 (1st Cir.1999)). The plaintiff has the burden of proof in establishing that the court has personal jurisdiction over the defendant. Id. (citing Mass. Sch. of Law at Andover v. Am. Bar Ass’n, 142 F.3d 26, 34 (1st Cir.1998); Rodriguez v. Fullerton Tires Corp., 115 F.3d 81, 83 (1st Cir.1997)). The court then “draws the facts from the pleadings and the parties’ supplementary filings, including affidavits, taking facts affirmatively alleged by plaintiff as true and construing disputed facts in the light most hospitable to plaintiff.” Ticketmaster-N.Y., Inc. v. Alioto, 26 F.3d 201, 203 (1st Cir.1994). However, the court does not credit conclusory allegations or draw farfetched inferences. Id.

Having held no previous evidentiary hearing, the court typically applies a prima facie standard. Rodriguez, 115 F.3d at 83-84. Moreover, the First Circuit has ruled that unless the district court otherwise informs the parties, it is to be understood that the prima facie standard will be used. Id.

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Bluebook (online)
394 F. Supp. 2d 394, 2005 U.S. Dist. LEXIS 36148, 2005 WL 1308317, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salgado-santiago-v-american-baler-co-prd-2005.