Syngenta Crop Protection, LLC v. Willowood, LLC

139 F. Supp. 3d 722, 2015 U.S. Dist. LEXIS 139627, 2015 WL 5970450
CourtDistrict Court, M.D. North Carolina
DecidedOctober 14, 2015
DocketNo. 1:15-CV-274
StatusPublished
Cited by2 cases

This text of 139 F. Supp. 3d 722 (Syngenta Crop Protection, LLC v. Willowood, LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Syngenta Crop Protection, LLC v. Willowood, LLC, 139 F. Supp. 3d 722, 2015 U.S. Dist. LEXIS 139627, 2015 WL 5970450 (M.D.N.C. 2015).

Opinion

MEMORANDUM OPINION AND ORDER

CATHERINE C. EAGLES, District Judge.

Syngenta Crop Protection, LLC, has sued four business entities alleging patent infringement, copyright infringement, and unfair and deceptive trade practices. Syn-genta’s claims relate to the defendants’ roles in the registration and sale of fungicide products that include the chemical azoxystrobin. Defendant Willowood Limited is a Chinese corporation whose only presence in the United States is through its sales of azoxystrobin to a United States affiliate. Willowood Limited asserts that the Court lacks personal jurisdiction and has brought a motion to dismiss. Because it established an affiliate specifically to market and sell products to customers in the United States and sold the allegedly infringing chemical to that affiliate for sale in the United States, Willowood Limited has sufficient connections to the United States for the exercise of jurisdiction to be fair and just. The Court will deny the motion.

STANDARD

When a defendant challenges personal jurisdiction by Rule 12(b)(2) motion, “the jurisdictional question is to be resolved by the judge, with the burden on the plaintiff ultimately to prove grounds for jurisdiction by a preponderance of the evidence.” Carefirst of Md., Inc. v. Carefirst Pregnancy Ctrs., Inc., 334 F.3d 390, 396 (4th Cir.2003) (citation omitted). All jurisdictional allegations are taken in the light most favorable to the plaintiff, and all inferences must be in favor of jurisdiction. New Wellington Fin. Corp. v. Flagship Resort Dev. Corp., 416 F.3d 290, 294 (4th Cir.2005) (citation omitted). If there is no [727]*727evidentiary hearing, “the plaintiff need only make a prima facie showing of personal jurisdiction.” Carefirst, 334 F.3d at 396 (citation omitted).

Although the standard may be lenient, a court “need not credit conclusory allegations or draw farfetched inferences.” Masselli & Lane, PC v. Miller & Schuh, PA, No. 99-2440, 2000 WL 691100, at *1 (4th Cir. May 30, 2000) (per curiam) (internal quotation omitted). Blanket conclusory allegations as to multiple defendants are insufficient. Cf. Sterne v. Thompson, No. 1:05 CV 477 JCC, 2005 WL 2563179, at *2 (E.D.Va. Oct. 7, 2005) (addressing Rule 12(b)(6) motion). The plaintiff must base its claim for personal jurisdiction “on specific facts set forth in the record.” Magic Toyota, Inc. v. Se. Toyota Distribs., Inc., 784 F.Supp. 306, 310 (D.S.C.1992). Further, a parent-subsidiary relationship does not by itself support jurisdiction. Saudi v. Northrop Grumman Corp., 427 F.3d 271, 276 (4th Cir.2005).

The allegations of the complaint are taken as true only if evidence from the defendant does not contradict them. See Wolf v. Richmond Cnty. Hosp. Auth., 745 F.2d 904, 908 (4th Cir.1984). Once the defendant presents evidence indicating that the requisite minimum contacts do not exist, the plaintiff must come forward with affidavits or other evidence in support of its position. Clark v. Remark, No. 92-1682, 1993 WL 134616, at *2 (4th Cir. Apr. 29, 1993) (per curiam). Where both sides present evidence, a" court resolves factual conflicts in favor of the party asserting jurisdiction. Id:

FACTS1

The movant, Willowood Limited (“W-Limited”), is a Chinese entity with -its principal office in Hong Kong. (Doc. 15 at ¶ 3.) It buys and sells pesticides, including azox-ystrobin, outside the United States. (Id. at ¶¶3, 5.) W-Limited maintains its records in China and does not have any assets, bank accounts, offices* agents,' or employees in the United States. (Id. at ¶ 3.) Its website is available worldwide, but “it does not target any specific customer or location in North Carolina or anywhere else in the United States.” (Id.) It is not registered to do business anywhere in the United States. (Id.)

The other defendants are limited liability companies registered and based in Oregon. (Doc. 16 at ¶3.) The defendant Willowood USA, LLC (“W-USA”) is the parent company, while the defendants Willowood, LLC, and Willowood Azoxys-trobin, LLC are W-USA’s wholly owned subsidiaries. (Id.)

W-Limited formed W-USA to expand into the United States market and knew that the azoxystrobin it sold W-USA would end up in products sold in the United States.2 W-Limited announced the formation of W-USA in a 2010 press release [728]*728on W-rUSA’s website. (Doc. 22-3 at 5.) It stated that the new company “will operate as a wholly owned subsidiary of Willow-wood [sic] Limited of Hong Kong, China” and that it is “very excited about this new opportunity to expand and grow our company in the , United States.” (Id.) This press release was available on W-USA’s website until Syngenta cited it in an opposition brief, to this motion, after which W-USA removed the “wholly owned subsidiary” language.3 (Doc. 26 at ¶2 & p. 5.) W-Limited is the sole supplier of azoxys-trobin to W-USA. (Doc. 16 at ¶ 8.)

The websites of W-USA and W-Limited frequently refer to W-USA as an affiliate of W-Limited. W-Limited’s website describes W-USA as an “affiliate” or an “affiliate office,” provides the address and phone number to W-USA’s office, and includes a link to W-USA’s website. (Docs. 22-2, 22-8, 22-9.) A news update on the W-Limited website announcing the launch of W-USA states that “Willowood Limited, launches its U.S. business (Willowood USA LLC.) based out of Oregon, USA, please contact us ... for more information and business' opportunities in the US.” (Doc. 22-1.) W-USA’s website shows similar connections. It describes W-Limited’s business and contains a link to W-Limited’s website. (Doc. 22-10.) W-USA’s website also has a page called “Meet the Team” that prominently displays a picture and biography of Vijay Mundhra, founder, majority owner, and manager of W-Limited. ■■ (Doc. 22-11 at 2.) j

W-USA buys azoxystrobin from W-Limited in China and then imports it into the United States, where it is processed in St. Louis, Missouri, .for sale in the form of fungicide products.4 (Doc. 16 at ¶ 8.) W-USA has sold products containing azoxys-trobin throughout the United States, including in North Carolina. (Doc. 26 at ¶ 4; see Docs. 22-4 to 22-7.) W-Limited was not involved in either the processing or the sales of these fungicide products by W-USA.5

W-Limited does not hold any registrations from the EPA for sale of azoxystro-bin in the United States and is not involved in registering any of W-USA’s products in the United States. (Doc. 15 at ¶ 5.) The documents attached to the complaint show that Willowood, LLC, a subsidiary of W-USA, filed applications for registration with the EPA, (see Docs. 1-16 to 1-18; Doc. 1-1), and registered the azoxystrobin products with the North Carolina Department of Agriculture. (See Doc. 1-2 at 2-3.)

DISCUSSION

Federal Circuit law applies. The parties agree that the law of the Federal Circuit applies to personal jurisdiction in connection with the patent claims.6 (See [729]*729Doc. 25 at 8; Doc. 22 at 10.).

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Bluebook (online)
139 F. Supp. 3d 722, 2015 U.S. Dist. LEXIS 139627, 2015 WL 5970450, Counsel Stack Legal Research, https://law.counselstack.com/opinion/syngenta-crop-protection-llc-v-willowood-llc-ncmd-2015.