Sunderland v. PharmaCare U.S., Inc.

District Court, S.D. California·Decided May 10, 2024·No. 3:23-cv-01318·Unknown

Opinion

1 2 3 4 5 6 7 10 11 LINDA SUNDERLAND and BENJAMIN Case No.: 23cv1318-JES (AHG) BINDER, individually and on behalf of all 12 those similarly situated, ORDER GRANTING DEFENDANT 13 PHARMACARE LABORATORIES Plaintiffs, PTY LTD.’S MOTION TO DISMISS 14 v. 15 [ECF No. 12] PHARMACARE U.S., INC.; and LTD., 17 Defendants. 18 19 Before the Court is Defendant PharmaCare Laboratories Pty Ltd.’s (“PharmaCare 20 Laboratories”) motion to dismiss for lack of personal jurisdiction. ECF No. 12. Plaintiffs 21 filed an opposition, and PharmaCare Laboratories filed a reply. ECF Nos. 15, 16. On 22 November 15, 2023, the Court heard oral argument on the matter and took it under 23 submission. ECF No. 23. After due consideration and for the reasons discussed below, 24 the motion is GRANTED. 26 On July 18, 2023, Plaintiffs initiated this class action lawsuit against Defendants 27 PharmaCare U.S., Inc. (“PharmaCare U.S.”) and PharmaCare Laboratories (collectively, 28 1 “Defendants”). ECF No. 1. Plaintiffs represent themselves and classes of individuals that 2 have purchased Defendants’ products that contain the ingredient black elderberry. 3 Black elderberry is derived from the Sambucus plant and has become a popular 4 ingredient for use in supplements in recent years. Id. at ¶¶ 2-3. Plaintiffs allege that 5 Defendants’ products include various statements on its labels, including statements that 6 their products are developed by a “world renowned virologist” and that their products 7 include a “unique black elderberry extract” that is made from a “proprietary method.” Id. 8 at ¶¶ 5-6. However, Plaintiffs allege that these representations are false because 9 Defendants’ products actually contain “run-of-the-mill Elderberry Juice.” Id. at ¶¶ 7-8. 10 Based on these allegations, Plaintiffs bring a class action lawsuit against 11 Defendants with a class of similarly situated consumers who have purchased the accused 12 products. Id. ¶ 50. Plaintiff Sunderland is a resident and citizen of New York who has 13 purchased Defendants’ Sambucol® Black Elderberry Chewable Tablets over the last two 14 years. Id. at ¶¶ 10-11. Plaintiff Binder is a resident and citizen of California who has 15 purchased Defendants’ Sambucol® Black Elderberry Original Syrup over the last four 16 years. Id. at ¶¶ 15-16. Specifically, Plaintiffs seek to bring class claims for a nationwide 17 class, a New York subclass, and a California subclass. Id. at ¶ 50. Individually and on 18 behalf of the class, Plaintiffs allege violations of: (1) the California Business and 19 Professions Code Section 17200 et seq. (“UCL”); (2) the California Business and 20 Professions Code Section 17500 et seq. (“FAL”) for false advertising; (3) the Consumer 21 Legal Remedies Act, Cal. Civ. Code § 1750 et seq. (“CLRA”); (4) the New York 22 Deceptive Acts and Practices Law; and (5) breach of express warranty. Id. at ¶¶ 60-113. 23 Pending now before the Court is Defendant PharmaCare Laboratories’ motion to 24 dismiss for lack of personal jurisdiction. 26 Defendant PharmaCare Laboratories brings this motion to dismiss under Federal 27 Rule of Civil Procedure 12(b)(2). Once the defendant moves to dismiss for lack of 28 personal jurisdiction, the plaintiff then bears the burden to establish that the Court has 1 personal jurisdiction over the defendant. Mavrix Photo, Inc. v. Brand Techs., Inc., 647 2 F.3d 1218, 1223 (9th Cir. 2011). 3 Where the defendant’s motion is based on written materials such as affidavits 4 rather than an evidentiary hearing, the plaintiff need only make a prima facie showing of 5 jurisdictional facts to withstand the motion to dismiss. Marvix Photo, 647 F.3d at 1223. 6 The plaintiff cannot “simply rest on the bare allegations of its complaint,” but 7 uncontroverted allegations in the complaint must be taken as true. Schwarzenegger v. 8 Fred Martin Motor Co., 374 F.3d 797, 800 (9th Cir. 2004) (quoting Amba Mktg. Sys., 9 Inc. v. Jobar Int'l, Inc., 551 F.2d 784, 787 (9th Cir. 1977)). Allegations in the complaint 10 may be contradicted by affidavit, but factual disputes must be resolved in the plaintiff’s 11 favor. Marvix Photo, 647 F.3d at 1223. 12 Where, as here, federal court jurisdiction is based on 28 U.S.C. § 1332(d) and only 13 state law causes of action are asserted, the district court applies the law of the state in 14 which it sits—here, California—to establish personal jurisdiction. Core-Vent Corp. v. 15 Nobel Industries AB, 11 F.3d 1482, 1484 (9th Cir. 1993). California’s long-arm statute 16 permits a court to exercise personal jurisdiction over a defendant to the extent permitted 17 by the Due Process Clause of the Constitution. Cal. Code Civ. P. § 410.10; Gordy v. 18 Daily News, L.P., 95 F.3d 829, 831 (9th Cir. 1996). Therefore, to establish personal 19 jurisdiction, Plaintiffs must satisfy the due process Constitutional requirements. 20 For a court to exercise personal jurisdiction over a nonresident defendant 21 consistent with due process, that defendant must have “certain minimum contacts” with 22 the relevant forum “such that the maintenance of the suit does not offend ‘traditional 23 notions of fair play and substantial justice.’” International Shoe Co. v. Washington, 326 24 U.S. 310, 316 (1945) (quoting Milliken v. Meyer, 311 U.S. 457, 463 (1940)). Minimum 25 contacts can either be established through general or specific jurisdiction. General 26 jurisdiction, which is found where the defendant has continuous and systematic contacts 27 with a state to render then essentially “at home” in the state, is not in dispute here—both 28 Defendants and Plaintiffs agree that PharmaCare Laboratories is not subject to general 1 jurisdiction in California. Minimum contacts may also be established through specific 2 jurisdiction. Specific jurisdiction is established where the defendant (1) purposefully 3 directs his activities or consummate some transaction with the forum or performs some 4 act by which he purposefully avails himself of the privilege of conducting activities in the 5 forum, thereby invoking the benefits and protections of its laws and (2) the claim is one 6 which arises out of or relates to the defendant’s forum-related activities. Schwarzenegger 7 v. Fred Martin Motor Co., 374 F.3d 797, 802 (9th Cir. 2004). 9 There is no dispute that PharmaCare Laboratories is an Australian company with 10 its principal place of business in Austria. ECF No. 1 at ¶ 21. PharmaCare Laboratories 11 owns the Sambucol® trademark, and Plaintiffs further allege that it is the entity 12 “responsible for the formulation and manufacturing of the Elderberry products (both in 13 the U.S. and internationally), and is responsible for the original labels on the Elderberry 14 products.” Id. While the complaint includes a statement regarding this Court’s personal 15 jurisdiction over PharmaCare U.S. (see id. at ¶ 23),1 there is no similar allegation as to 16 personal jurisdiction over PharmaCare Laboratories. 17 PharmaCare Laboratories argues that it is not subject to specific jurisdiction in 18 California for several reasons.

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