Tieszen v. EBay, Inc.

CourtDistrict Court, D. South Dakota
DecidedSeptember 10, 2021
Docket4:21-cv-04002
StatusUnknown

This text of Tieszen v. EBay, Inc. (Tieszen v. EBay, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. South Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tieszen v. EBay, Inc., (D.S.D. 2021).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF SOUTH DAKOTA SOUTHERN DIVISION

RYAN TIESZEN, 4:21-CV-04002-KES Plaintiff, vs. ORDER GRANTING DEFENDANT LG CHEM AMERICA INC.’S MOTION TO EBAY, INC., LG CHEM LTD., LG CHEM DISMISS AND DENYING DEFENDANT AMERICA, INC., VAPAH, INC., and the LG CHEM, LTD.’S MOTION TO FIRST DOE through THIRTIETH DOE, DISMISS inclusive,

Defendants.

Plaintiff, Ryan Tieszen, filed this suit in the State of South Dakota Second Circuit Court for Minnehaha County. Docket 1-1. Defendants include eBay, Inc., LG Chem, Ltd. (LG Chem), LG Chem America, Inc. (LGCAI), Vapah, Inc., and DOES 1 through 30. Id. LGCAI removed the matter to federal court under 28 U.S.C. §§ 1332, 1441(b), and 1446. Docket 1. LGCAI and LG Chem each move to dismiss this action for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2). Dockets 14, 29. Tieszen opposes both motions. Dockets 20, 38. FACTUAL BACKGROUND Tieszen is a resident of the state of South Dakota. Docket 1-1 ¶ 1. Tieszen alleges that he was injured by two LG 18650 lithium-ion batteries that were purchased from Vapah, a third-party Seller on eBay’s online commerce platform, for use in his e-cigarette device. Id. ¶¶ 2, 11, 15. The batteries “burst into flames” in his pocket on December 14, 2017, causing first and second- degree burns to his right thigh. Id. ¶¶ 12, 15.

LG Chem is a business entity headquartered in Seoul, South Korea. Docket 1 ¶ 9; Docket 1-1 ¶ 5. LG Chem manufactures 18650 lithium-ion battery cells. Docket 30. LGCAI is incorporated in Delaware with its principal place of business in Atlanta, Georgia. Docket 1 ¶ 10; Docket 1-1 ¶ 6. LGCAI sells and distributes petrochemical materials and products. Docket 15 at 2. Tieszen alleges both LG Chem and LGCAI were in the business of designing, manufacturing, marketing, and distributing the 18650 lithium-ion batteries that caused his injuries. Docket 1-1 ¶ 34.

LG Chem and LGCAI state they have never conducted business with eBay or Vapah. Dockets 15, 30. LG Chem contends that the type of battery at issue is manufactured by LG Chem for “specific applications by sophisticated companies.” Docket 31 ¶ 19. LG Chem denies having sold or authorized any distributor, retailer, or re-seller to sell any lithium-ion cells as “standalone, removable batteries in e-cigarette devices or for any other purpose.” Id ¶¶ 24- 25. LGCAI declares it has never designed, manufactured, advertised, or sold

any lithium-ion battery for use by “individual consumers as standalone, removable batteries.” Docket 15 at 2. LGCAI has no manufacturing plants in South Dakota and focuses on sales and distribution of petrochemical materials and products. Id. LG Chem and Tieszen submitted supplemental briefs regarding the United States Supreme Court decision in Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., 141 S. Ct. 1017 (2021) and its implication on questions of personal jurisdiction. Dockets 41, 42.

LEGAL STANDARD Under Federal Rule of Civil Procedure 12(b)(2), defendants may move to dismiss a claim for lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2). “To survive a motion to dismiss, a plaintiff need make only a prima facie case that personal jurisdiction exists.” Downing v. Goldman Phipps, PLLC, 764 F.3d 906, 911 (8th Cir. 2014) (citing Wessels, Arnold & Henderson v. Nat’l Med. Waste, Inc., 65 F.3d 1427, 1431 (8th Cir. 1995)). But when personal jurisdiction is challenged by a defendant’s affidavits and motions, the plaintiff bears the

burden of proving jurisdiction by the same means, not mere allegations of the complaint. Dever v. Hentzen Coatings, Inc., 380 F.3d 1070, 1072-73 (8th Cir. 2004). The jurisdiction of federal courts is ordinarily determined by laws of the state in which the court is located. Daimler AG v. Bauman, 571 U.S. 117, 125 (2014). South Dakota law specifies that a person is subject to jurisdiction of state courts through “any act, the basis of which is not inconsistent with the Constitution . . . .” SDCL § 15-7-2(14). Thus, the relevant inquiry is whether

the exercise of South Dakota’s long-arm statute to impose this court’s jurisdiction comports with federal due process. See id. Due process requires a defendant have “certain minimum contacts with [the State] 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 (1945) (quoting

Milliken v. Mayer, 311 U.S. 457, 463 (1940)). The Supreme Court has recognized two types of personal jurisdiction: “general (sometimes called all-purpose) jurisdiction and specific (sometimes called case-linked) jurisdiction.” Ford, 141 S. Ct. at 1024. General jurisdiction is established when a defendant is “essentially at home” in the state. Id. A corporation’s place of incorporation and principal place of business are “paradigm” forums in all but “exceptional case[s].” Id. In the case of large national or global corporations, the standard is not merely “doing business”

within a forum state, which would render those defendants “at home” everywhere they operate, but is based on claims having a connection to the forum State. See Daimler, 571 U.S. at 139 n.20 (2014). Specific jurisdiction covers a narrower class of claims and requires the defendant to take “some act by which [it] purposefully avails itself of the privilege of conducting activities within the forum State.” Ford, 141 S. Ct. at 1024 (alteration in original) (quoting Hanson v. Denckla, 357 U.S. 235, 253 (1958)). “The contacts must be the defendant’s own choice and not ‘random,

isolated, or fortuitous.’ ” Id. at 1025 (quoting Keeton v. Hustler Mag., Inc., 465 U.S. 770, 774 (1984)). The contacts must show the defendant engaged in deliberate activity to exploit the forum state’s market or enter a contractual relationship centered in the forum state. Id. (citing Walden v. Fiore, 571 U.S. 277, 285 (2014)). Because the defendant is not “at home” in the forum state though, there needs to be a showing that the plaintiff’s claims “ ‘arise out of or relate to the defendant’s contacts’ with the forum.” Id. (quoting Bristol-Myers

Squibb Co. v. Superior Ct., 137 S. Ct. 1773, 1780 (2017)). The Eighth Circuit employs a five-factor, totality of the circumstances test to determine whether specific jurisdiction exists. Kaliannan v. Liang, 2 F.4th 727, 733 (8th Cir. 2021).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Milliken v. Meyer
311 U.S. 457 (Supreme Court, 1941)
International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
Hanson v. Denckla
357 U.S. 235 (Supreme Court, 1958)
Keeton v. Hustler Magazine, Inc.
465 U.S. 770 (Supreme Court, 1984)
Helicopteros Nacionales De Colombia, S. A. v. Hall
466 U.S. 408 (Supreme Court, 1984)
Pangaea, Inc. v. Flying Burrito LLC
647 F.3d 741 (Eighth Circuit, 2011)
Dever v. Hentzen Coatings
380 F.3d 1070 (Eighth Circuit, 2004)
Daimler AG v. Bauman
134 S. Ct. 746 (Supreme Court, 2014)
Walden v. Fiore
134 S. Ct. 1115 (Supreme Court, 2014)
Downing v. Goldman Phipps, PLLC
764 F.3d 906 (Eighth Circuit, 2014)
Justin Whaley v. Jimmy Esebag
946 F.3d 447 (Eighth Circuit, 2020)
Ford Motor Co. v. Montana Eighth Judicial Dist.
592 U.S. 351 (Supreme Court, 2021)
Panircelvan Kaliannan v. Ee Liang
2 F.4th 727 (Eighth Circuit, 2021)
BNSF Ry. Co. v. Tyrrell
581 U.S. 402 (Supreme Court, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
Tieszen v. EBay, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/tieszen-v-ebay-inc-sdd-2021.