Smith v. Poly Expert, Inc.

186 F. Supp. 3d 1297, 2016 U.S. Dist. LEXIS 64104, 2016 WL 2858844
CourtDistrict Court, N.D. Florida
DecidedMay 16, 2016
DocketCASE NO. 1:15CV118-MW/GRJ
StatusPublished
Cited by1 cases

This text of 186 F. Supp. 3d 1297 (Smith v. Poly Expert, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Poly Expert, Inc., 186 F. Supp. 3d 1297, 2016 U.S. Dist. LEXIS 64104, 2016 WL 2858844 (N.D. Fla. 2016).

Opinion

ORDER GRANTING MOTIONS TO DISMISS

Mark E. Walker, United States District Judge

Plaintiffs, a number of North Florida farmers, claim that their watermelon crops [1298]*1298were damaged when plastic mulch manufactured by Defendant Poly Expert, Inc. degraded prematurely. ECF No. 61, at 6 ¶¶ 18-21. It turns out that the premature degradation may have been caused in part by an additive made by Defendant Willow Ridge Plastics, Inc. Id. at 11-13 ¶¶ 46-46.

Plaintiffs (“Farmers”) seek damages from Poly Expert and Willow Ridge under a number of different legal theories— breach of warranty, strict liability, etc. See id. Poly Expert has filed a third-party complaint / cross-claim against Willow Ridge claiming that Willow Ridge is liable to it for any injuries caused by the allegedly defective additive. ECF No. 75, at 20. Willow Ridge moved to dismiss both the Farmers’ claims against it and Poly Expert’s cross-claims against it for lack of personal jurisdiction. ECF Nos. 32, 40, & 68. This Order grants Willow Ridge’s motions.

I

Under Federal Rule of Civil Procedure 12(b)(2), defendants may move to dismiss an action for lack of personal jurisdiction. The plaintiff bears the initial burden of alleging sufficient facts in the complaint to make a prime facie case for personal jurisdiction over a nonresident defendant. See Meier ex rel. Meier v. Sun Intern. Hotels, Inc., 288 F.3d 1264, 1268-69 (11th Cir.2002). If the defendant submits affidavits or other evidence to contest jurisdiction, the burden shifts back to the plaintiff to produce evidence supporting jurisdiction. Id. at 1269. When the supporting evidence provided by the plaintiff and defendant conflict, all reasonable inferences must be construed in favor of the plaintiff. Id.

Accompanying its first motion to dismiss, Willow Ridge submitted the affidavit of Nadina Dennie, the Vice President and General Manager of Willow Ridge, ECF No. 32, at 19. The parties were subsequently permitted to conduct jurisdictional discovery. See ECF, No. 37. The record is now complete enough to allow this Court to rule on the jurisdictional question.

II

A

Plaintiffs are residents of Florida. ECF No. 61, at 2. Poly Expert is a Canadian corporation.1 Poly Expert manufactured the plastic mulch that allegedly degraded and sold it to a Delaware distributor, which then sold it to a Florida retailer.2 Id. at 4-6.

Poly Expert claims that Willow Ridge is hable for any damage to the watermelon crops because any premature degradation of the mulch was caused by a new additive Poly Expert purchased from Willow Ridge and incorporated into the mulch. ECF No. 10, at 12. Poly Expert purchased this new additive from Widow Ridge based on assurances that the effects of the new additive on the plastic mulch would be the same as the effects of the old additive. See id. at 11-13, 15; see also ECF No. 29, Ex. 2.

B

Willow Ridge is a Kentucky corporation with its principal place of business in Kentucky. ECF No. 32, at 2. Willow Ridge is not registered with the Florida Department of State and does not have employees or salespeople here. Id. at 19. When asked how most customers find out about Willow Ridge, Dennie answered “searching the web.” ECF. No 45-2, at 25.

[1299]*1299Examples of where Willow Ridge has sold its additives in the .United States include the states of Missouri, North Carolina, California, North Dakota, and Tennessee. ECF No. 45-1, at 27. While Willow Ridge does not have any distributors in Florida, one of its distributors, “Colors for Plastics,” located in Illinois, is described on Willow Ridge’s website as covering the “southeast” of the United States. ECF No. 45, Ex. 1. at 8. However, when asked if Florida customers would use Colors for Plastics as their distributor, Dennie answered that Florida customers would purchase directly from Willow Ridge. ECF No. 45-2, at 22.3

Willow Ridge states on its website that the company’s goal is “to make Willow Ridge Plastics’. ecologically friendly degradable plastic products the global standard.” ECF No. 45, Ex. 1 at 8. In her deposition, Dennie explained that Willow Ridge’s “products are made to be added to plastic to make them degrade.” ECF No. 45-2, at 6, 9. When asked, “do you have any reason to dispute that a customer buying the Poly Expert mulch expecting [it] to degrade is making use of whatever component is in that product that causes it to degrade,” Dennie responded “correct if it’s made right.” ECF No. 45-4, at 29. Dennie also conceded that the additive used by the Farmers was having an effect on their fields. Id. at 30.

While Willow Ridge lacks a physical presence in Florida, there is evidence that Willow Ridge has had some business contacts with Florida. For example, Willow Ridge has at least one customer who has a residence address in-Florida. See ECF No. 45-5, at 5; see also ECF 45, Ex. 5-B. While the individual that contacts Willow Ridge on behalf of the company is located in North Carolina and the product itself- is shipped to North Carolina, invoices for sales, are sent to Florida. See ECF No. 45-5, at 5. ,

In addition, Dennie testified that Willow Ridge’s Venezuelan distributor uses a broker in Florida to come and pick up shipments from Willow Ridge. See Id. at 8-9. Invoices are then sent directly to the broker located in Miami, Florida. See ECF. No 45, Ex. 5-B. Once the Florida broker picks up the product, it is then sent overseas from Florida. See ECF No. 45-5, at 9.4

C

Poly Expert and Willow Ridge’s business relationship began in 1997. See ECF No. 45-1, at 10-11. Faxes and emails between the two entities show that in addition to selling additives to Poly Expert, Willow Ridge provided recommendations on how best to use their additives. For example, in January of 1998, William C. Hogan (on behalf of Willow Ridge) faxed Poly Expert the recommended usage of Willow Ridge’s UV-H additive to mulch film to be used in the state of Georgia. ECF No. 45, Ex. 8.

Willow Ridge first tested Poly Expert’s plastic mulch in either 1997 or 1998. ECF No. 45-1, at 18. The most recent testing of Poly Expert’s product took place when Poly Expert sent Willow Ridge samples of its plastic mulch used in Florida following the Farmers’ complaints. See ECF No, 45-4, at 26-27, Upon receiving these samples, [1300]*1300Willow Ridge was aware the samples came from Florida. Id. Willow Ridge also does not dispute that the mulch used by the Farmers contained the PDQ-M additive manufactured by Willow Ridge. Id. at 27.

Dennie stated in her deposition that Willow Ridge “do[es]n’t normally go by region or specific area” when testing products for customers. ECF No. 45-4, at 22. However, in emails to Poly Expert, Willow Ridge discussed testing specifically related to Canada and Georgia. Id. at 22-23; see also ECF No. 45, Ex. 8. In addition, Willow Ridge described the conditions under which its additive was tested by referencing South Florida. ECF. No. 45-6, at 7-8; ECF No.

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186 F. Supp. 3d 1297, 2016 U.S. Dist. LEXIS 64104, 2016 WL 2858844, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-poly-expert-inc-flnd-2016.