Swartwood v. Fun-Tastic Shows Inc

District Court, W.D. Washington·Decided May 28, 2020·No. 3:17-cv-05971·Unknown

Opinion

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5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT TACOMA 7 SUSAN SWARTWOOD, et al., CASE NO. C17-5971 BHS 8 Plaintiffs, ORDER GRANTING 9 v. DEFENDANT’S SECOND MOTION TO DISMISS FOR LACK 10 FRAZIER EQUIPMENT, LLC, an OF PERSONAL JURISDICTION Arizona corporation, LAWRENCE K. 11 SLOAN and JANE DOE SLOAN, individually and as a marital community, 12 HIGH-LITE RIDES, INC., a South Carolina corporation, 13 Defendants. 14

15 This matter comes before the Court on Defendants Frazier Equipment, LLC 16 (“Frazier”), Lawrence K. Sloan (“Sloan”), and Jane Doe Sloan’s (collectively 17 “Defendants”) second motion to dismiss for lack of personal jurisdiction. Dkt. 104. The 18 Court has considered the pleadings filed in support of and in opposition to the motion and 19 the remainder of the file and hereby grants the motion for the reasons stated herein. 20 21 22 1 I. PROCEDURAL HISTORY AND FACTUAL BACKGROUND 2 On May 18, 2017, Plaintiffs Susan Swartwood, Crystal Groth, and minor M.G.S.

3 (“Plaintiffs”), attended Defendant Fun-Tastic Shows, Inc.’s (“Fun-Tastic”) 4 Rhododendron Festival in Port Townsend, Washington. Dkt. 98, ⁋⁋ 3.23–3.24. Plaintiffs 5 were riding together in one of the gondolas on the festival’s Ferris wheel when one of the 6 metallic locks attached to the gondola “ca[ught] on the [ride’s] super-structure and 7 eject[ed] the Plainitffs.” Id. ⁋ 3.27. Plaintiffs all fell from the gondola and were injured. 8 Id. ⁋ 3.30.

9 Plaintiffs allege that in 2010, Sloan as an agent of Frazier modified the Ferris 10 wheel by adding the metallic locks to the doors of each passenger gondola. Id. ⁋ 3.21. 11 Frazier owned the Ferris wheel and sold it to Fun-Tastic in a transaction between Steven 12 Broetsky of Frazier and Ronald Burback (“Burback”) of Fun-Tastic, who is a 13 Washington resident. Id.1 Plaintiffs also allege that “when sold to Fun-Tastic, [the Ferris

14 wheel] was intended to be used in Washington State.” Id. ⁋ 3.16 15 On November 6, 2017, Plaintiffs filed a complaint against Fun-Tastic in the 16 Jefferson County Superior Court for the State of Washington. Dkt. 1-1. On November 21, 17 2017, Fun-Tastic removed the matter to this Court. Dkt. 1. On April 23, 2018, Plaintiffs 18 amended their complaint to add Defendant High-Lite Rides, Inc. Dkt. 15. On October 16,

19 2019, Plaintiffs settled their claims against Fun-Tastic. Dkt. 76. On November 4, 2019, 20 21 1 Defendants explain (and Plaintiffs do not dispute) that Steven Broetsky is the managing 22 member of Frazier and Burback is the president of Fun-Tastic. Dkt. 104 at 3. 1 Plaintiffs amended their complaint to add Defendants and allege claims for negligence 2 and product liability against Frazier. Dkt. 81, ⁋⁋ 5.1–5.2.

3 On December 3, 2019, Defendants moved to dismiss Plaintiffs’ claims for lack of 4 personal jurisdiction. Dkt. 90. On February 10, 2020, the Court granted the motion to 5 dismiss but granted Plaintiffs leave to amend. Dkt. 97. On February 19, 2020, Plaintiffs 6 filed a third amended complaint (“TAC”). Dkt. 98. 7 On March 3, 2020, Defendants filed a second motion to dismiss for lack of 8 personal jurisdiction. Dkt. 104. On March 17, 2020, Plaintiffs responded. Dkt. 105. On

9 March 26, 2020, Defendants replied. Dkt. 106. 10 II. DISCUSSION 11 A. Standard 12 To determine whether it has jurisdiction over a defendant, a federal court applies 13 the law of the state in which it sits, as long as that law is consistent with federal due

14 process. Daimler AG v. Bauman, 571 U.S. 117, 126 (2014). Washington grants courts the 15 maximum jurisdictional reach permitted by due process. Easter v. Am. W. Fin., 381 F.3d 16 948, 960 (9th Cir. 2004). Due process is satisfied when subjecting the entity to the court’s 17 power does not “offend ‘traditional notions of fair play and substantial justice.’” 18 Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414 (1984) (quoting

19 Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945)). “[T]raditional notions of fair 20 play and substantial justice” require that a defendant have minimum contacts with the 21 forum state before it may be haled into a court in that forum. Int’l Shoe, 326 U.S. at 316 22 (1945). The extent of those contacts can result in either general or specific personal 1 jurisdiction over the defendant. Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 2 U.S. 915, 919 (2011).

3 B. Analysis 4 1. General Jurisdiction 5 The Court previously found no basis to conclude it has general jurisdiction over 6 the Defendants, Dkt. 97 at 4, and similarly finds that the allegations in the TAC do not 7 allege a basis for general jurisdiction. 8 2. Specific Jurisdiction Specific jurisdiction permits a district court to exercise jurisdiction over a 9 nonresident defendant for conduct that “create[s] a substantial connection with the forum 10 State.” Walden v. Fiore, 134 S. Ct. 1115, 1121 (2014). To prove that specific jurisdiction 11 exists in a tort-based action, a plaintiff must demonstrate that: (1) a defendant 12 purposefully directed its activities at the forum state, (2) the lawsuit arises out of or 13 relates to the defendant’s forum-related activities, and (3) the exercise of jurisdiction is 14 reasonable. Picot v. Weston, 780 F.3d 1206, 1211 (9th Cir. 2015). The plaintiff bears the 15 burden to satisfy the first two prongs of the test, and jurisdiction fails if they are not 16 established. Morrill v. Scott Financial Co., 873 F.3d 1136, 1142 (9th Cir. 2017) (citing 17 Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 802 (9th Cir. 2004)). A 18 defendant purposefully directs its conduct toward a forum state when its actions are 19 intended to have an effect within the state. Schwarzenegger, 374 F.3d at 803. This occurs 20 in a tort-based action if the defendant: “(1) commit[s] an intentional act, (2) expressly 21 aimed at the forum state, (3) causing harm that the defendant knows is likely to be 22 1 suffered in the forum state.” Morrill, 873 F.3d at 1142. In deciding specific jurisdiction, 2 the Court must “look[] to the defendant’s contacts with the forum State itself, not the

3 defendant’s contacts with persons who reside there.” Walden, 571 U.S. at 285. 4 The Court previously found Plaintiffs failed to establish the first necessary 5 element, purposeful direction, when they alleged that it was foreseeable to Frazier that its 6 product would end up in Washington based on Fun-Tastic’s relationship with 7 Washington. Dkt. 97 at 6. The Court found Plaintiffs had failed to establish that either the 8 sale or the gate modification was expressly aimed at Washington. Id. at 7 (citing Morill,

9 873 F.3d at 1142). 10 In their TAC, Plaintiffs provide additional allegations about Fun-Tastic’s business 11 relationship with Washington State. Plaintiffs describe Fun-Tastic’s business licensing 12 and reporting obligations to Washington as well as its history of substantial operations 13 and substantial employment of Washington residents, information it alleges was “readily

14 available to the public including Defendant Frazier.” Dkt. 98, ⁋⁋ 3.1–3.1.13, 3.12. 15 Plaintiffs also detail the extent of Fun-Tastic’s carnival operations in Washington 16 including at the Washington State Fair. See, e.g., id. ⁋⁋ 3.2–3.36.

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Related

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134 S. Ct. 746 (Supreme Court, 2014)
Walden v. Fiore
134 S. Ct. 1115 (Supreme Court, 2014)
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780 F.3d 1206 (Ninth Circuit, 2015)
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