Seitz v. Envirotech Systems Worldwide Inc.

513 F. Supp. 2d 855, 2007 U.S. Dist. LEXIS 44277, 2007 WL 1795676
District Court, S.D. Texas·Decided June 19, 2007·No. Civil Action H-02-4782·Published·Cited by 4 cases

Opinion

MEMORANDUM AND ORDER ON THE MOTIONS TO DISMISS FILED BY SKYE AND VALEO

LEE H. ROSENTHAL, District Judge.

On December 13, 2002, David Seitz and Microtherm, Inc. (together, “Seitz”) sued Envirotech Systems Worldwide, Inc. and Envirotech of Texas (together, “Enviro-tech”) for infringing Seitz’s patents and for unfair competition. (Docket Entry No. 1). Seitz claims that Envirotech’s E SI-2000 water heater and another heater in development, Fortis, infringe the patents. On March 1, 2007, Seitz filed an amended complaint. (Docket Entry No. 136). In that complaint, Seitz added two new defendants, Valeo, Inc. and Skye International, Inc. Envirotech and Valeo are wholly owned subsidiaries of Skye. Valeo and Skye are alleged to be Nevada corporations. (Id. at ¶¶ 4, 5). Because Valeo and Skye have no designated agents in Texas, they were served through the Texas Secretary of State. (Id.). The amended complaint alleges that this Texas court has jurisdiction over Valeo and Skye because “[e]ach party has sold infringing products and committed acts of unfair competition in this district, and /or has induced or contributed to the infringement and unfair competition of other parties in this district.” (Id. at ¶ 6).

Valeo and Skye have filed motions to dismiss under Rule 12(b)(2) for lack of personal jurisdiction and Rule 12(b)(6) for failure to state a claim. (Docket Entry Nos. 138, 141). Seitz has responded, (Docket Entry No. 144), and Skye and *859 Valeo have replied, (Docket Entry Nos. 145, 146). Based on careful consideration of the pleadings, the motions and responses, the parties’ submissions, and the applicable law, this court grants the motions to dismiss for lack of personal jurisdiction. (Docket Entry Nos. 138, 141). The reasons for these rulings are explained below.

I. The Applicable Legal Standard

In patent infringement actions, personal jurisdiction is governed by Federal Circuit law. Silent Drive, Inc. v. Strong Indus., 326 F.3d 1194 (Fed.Cir.2003); see also Orica Explosives Tech., Pty., Ltd. v. Austin Powder Co., 2007 WL 1115238, at *1 (E.D.Tex.2007). Under Federal Circuit precedent, personal jurisdiction over an out-of-state defendant involves two inquiries: (1) whether a forum state’s long-arm statute permits service of process; and (2) whether the assertion of personal jurisdiction would violate due process. Genetic Implant Sys., Inc. v. Core-Vent Corp., 123 F.3d 1455, 1458 (Fed.Cir.1997). Because the Texas long-arm statute has been interpreted to extend as far as due process permits, the issue is whether the exercise of personal jurisdiction over a nonresident defendant comports with federal constitutional due process requirements. Religious Tech. Ctr. v. Liebreich, 339 F.3d 369, 373 (5th Cir.2003); Tex. Civ. Prac. & Rem. Code Ann. § 17.041-.045.

The due process requirements for exercising personal jurisdiction over a nonresident focus on whether the nonresident defendant has “certain minimum contacts with [the forum] such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945). “A defendant establishes minimum contacts with a state if ‘the defendant’s conduct and connection with the forum state are such that [the defendant] should reasonably anticipate being haled into court there.’ ” Nuovo Pignone, SpA v. Storman Asia M/V, 310 F.3d 374, 379 (5th Cir.2002) (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985)). “There must be some act whereby the [nonresident] defendant ‘purposefully avails itself of the privilege of conducting activities within the forum state, thus invoking the benefits and protections of its laws.’ ” Id.

The plaintiff bears the burden of demonstrating facts sufficient to support personal jurisdiction over a nonresident defendant. That burden is met by a prima facie showing; proof by a preponderance of the evidence is not necessary. Re-vell v. Lidov, 317 F.3d 467, 469 (5th Cir.2002); Alpine View Co. Ltd. v. Atlas Copco AB, 205 F.3d 208, 215 (5th Cir.2000). “The court may determine the jurisdictional issue by receiving affidavits, interrogatories, depositions, oral testimony, or any combination of the recognized methods of discovery.” Id. “[O]n a motion to dismiss for lack of jurisdiction, uncontroverted allegations in the plaintiffs complaint must be taken as true, and conflicts between the facts contained in the parties’ affidavits must be resolved in the plaintiffs favor.” D.J. Invs. v. Metzeler Motorcycle Tire Agent Gregg, Inc., 754 F.2d 542, 546 (5th Cir.1985) (quoted in Bullion v. Gillespie, 895 F.2d 213, 217 (5th Cir.1990)). However, the court is not obligated to credit conclusory allegations, even if uncontro-verted. Panda Brandywine Corp. v. Potomac Elec. Power, 253 F.3d 865, 868 (5th Cir.2001); see also Samish Indian Nation v. United States, 419 F.3d 1355, 1364 (Fed. Cir.2005) (“[The court must] aceeptf ] as true all non-conclusory allegations of fact, construed in the light most favorable.”). The “plaintiffs prima facie showing, necessary to defeat a jurisdiction testing mo *860 tion, must include an averment of facts that, if credited by [the ultimate trier of fact], would suffice to establish jurisdiction over the defendant.” Metro. Life Ins. Co. v. Robertson-Ceco Corp., 84 F.3d 560, 567 (2d Cir.1996); Hartford Fire Ins. Co. v. Hutchinson, 2006 WL 903715, at *2 (S.D.Tex. Apr.6, 2006) (“A plaintiff may present a prima facie case by producing admissible evidence which, if believed, would suffice to establish the existence of personal jurisdiction.”).

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Seitz v. Envirotech Systems Worldwide Inc., 513 F. Supp. 2d 855, 2007 U.S. Dist. LEXIS 44277, 2007 WL 1795676 (S.D. Tex. 2007).

513 F. Supp. 2d 855 (Seitz v. Envirotech Systems Worldwide Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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