Tom's of Maine v. Acme-Hardesty Co.

565 F. Supp. 2d 171, 2008 U.S. Dist. LEXIS 54373, 2008 WL 2761646
District Court, D. Maine·Decided July 16, 2008·No. 2:07-cr-00073·Published·Cited by 6 cases

Opinion

ORDER ON MOTIONS TO DISMISS FOR LACK OF PERSONAL JURISDICTION

GEORGE Z. SINGAL, Chief Judge.

Before the Court are the following motions to dismiss: (1) Akzo Nobel Industries SDN BHD, Akzo Nobel Oleochemicals SDN BHD, and Pacific Oleo Industries SDN BHD’s Motion to Dismiss for Lack of Personal Jurisdiction (Docket #35), (2) Motion to Dismiss Amended Third-Party Complaint Against Defendants Akzo Nobel, Inc., Akzo Nobel Chemicals, Inc. and Akzo Nobel Surface Chemistry, LLC for Lack of Personal Jurisdiction (Docket # 37), (3) Motion of Akzo Nobel N.V. & Akzo Nobel Chemicals International BV to Dismiss for Lack of Personal Jurisdiction (Docket #48) and (4) Motion to Dismiss Amended Third-Party Complaint Against Van Leer Malaysia SDN BHD, Van Leer Packaging SDN BHD, Van Leer Packaging SDN BHD. (East Coast) and Grief, Inc. for Lack of Personal Jurisdiction (Docket # 63).

In short, these four motions require the Court to examine its ability to exercise personal jurisdiction as to eleven third party defendants and thereby decide whether the Amended Third Party Complaint pressed by Acme-Hardesty may proceed in this Court. For the reasons explained below, the Court ultimately determines that it may exercise personal jurisdiction over just three of the third party defendants and dismisses the claims against eight third party defendants for lack of jurisdiction.

I. STANDARD OF REVIEW

It is the plaintiffs burden to prove that personal jurisdiction exists in a given forum. Sawtelle v. Farrell, 70 F.3d 1381, 1387 (1st Cir.1995). However, a court’s determination of personal jurisdiction often involves “more art than science.” Donatelli v. National Hockey League, 893 F.2d 459, 468 n. 7 (1st Cir.1990) (quoted in United States v. Swiss American Bank, Ltd., 274 F.3d 610, 617 (1st Cir.2001)). There are essentially two bases for exercising personal jurisdiction: general jurisdiction or specific jurisdiction. The “more stringent” test for general jurisdiction requires the Court to find that “the defendant has ... engaged in continuous and systematic activity in the forum” and *175 therefore may be haled into court within the forum even if “the litigation is not directly founded on the defendant’s forum-based contacts.” Harlow v. Children’s Hosp., 432 F.3d 50, 64 (1st Cir.2005) (quoting United Elec. Radio & Mach. Workers v. 163 Pleasant Street Corp., 960 F.2d 1080, 1088 (1st Cir.1992)).

Unlike general jurisdiction, which is “dispute blind,” specific jurisdiction may be invoked when the cause of action arises out of the defendant’s contacts with a particular forum. Wright & Miller, 4 Federal Practice & Procedure § 1067.5 (quoting Dickson Marine, Inc. v. Panalpina, Inc., 179 F.3d 331, 339 (5th Cir.1999)). The First Circuit has delineated three general requirements to be considered when determining whether the exercise of specific personal jurisdiction is appropriate:

First, the claim underlying the litigation must directly arise out of, or relate to, the defendant’s forum-state activities. Second, the defendant’s in-state contacts must represent a purposeful availment of the privilege of conducting activities in the forum state, thereby invoking the benefits and protections of that state’s laws and making the defendant’s involuntary presence before the state’s courts foreseeable. Third, the exercise of jurisdiction must, in light of the Gestalt factors, be reasonable.
Sawtelle, 70 F.3d at 1389 (citations omitted). The Gestalt factors include:
(1) the defendant’s burden of appearing; (2) the forum state’s interest in adjudicating the dispute; (3) the plaintiffs interest in obtaining convenient and effective relief; (4) the judicial system’s interest in obtaining the most effective resolution of the controversy; and (5) the common interests of all sovereigns in promoting substantive social policies.

Id. at 1394. Even if the first two requirements of relatedness and purposeful availment are met, the Court’s additional consideration of the Gestalt factors gives the Court an opportunity to consider whether exercise of personal jurisdiction is truly reasonable and would achieve substantial justice.

Applying this three-factor approach, this Court has previously held that placement of a product in the stream of commerce with awareness that it would likely reach Maine does not establish specific personal jurisdiction since it cannot satisfy the second factor of purposeful availment. See Amburgey v. Atomic Ski USA, Inc., 2:06-cv-149-GZS, 2007 WL 1464380 at *3 (D.Me. May 17, 2007).

In this case, the Court applies the “least taxing” prima facie method for examining whether the Third Party Plaintiff has met its burden. See Phillips v. Prairie Eye Ctr., 530 F.3d 22, 25-26 (1st Cir.2008) (quoting Rodriguez v. Fullerton Tires Corp., 115 F.3d 81, 83-84 (1st Cir.1997)). Under this method,

the inquiry is whether the plaintiff has proffered evidence which, if credited, is sufficient to support findings of all facts essential to personal jurisdiction. In order to make a prima facie showing of jurisdiction, the plaintiff ordinarily cannot rest upon the pleadings but is obliged to adduce evidence of specific facts. The court must accept the plaintiffs (properly documented) evidentiary proffers as true for the purpose of determining the adequacy of the prima facie jurisdictional showing, and construe them in the light most congenial to the plaintiffs jurisdictional claim.
Id. (internal quotation marks and citations omitted).

II. BACKGROUND

The pending action began as a products liability case by Plaintiff Tom’s of Maine *176 (“Tom’s”) arising out of a fire at a Tom’s warehouse in 2004. Tom’s alleges the fire erupted after an employee attempted to warm a drum of capric acid in a drum heater. As the capric acid was warmed and liquefied, it allegedly leaked onto the drum heater via small puncture holes in the steel drum. It is further alleged that these holes in the drum were drilled from the inside out. If true, this allegation would mean that the holes were drilled in the drum prior to it ever being filled with capric acid. Tom’s sued Ohmtemp International, Inc., the manufacturer of the drum heater, and Acme-Hardesty Company (“Acme”), the distributor that sold Tom’s the drum of capric acid.

Acme is the largest independent oleo-chemical distributor in the United States.

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Tom's of Maine v. Acme-Hardesty Co., 565 F. Supp. 2d 171, 2008 U.S. Dist. LEXIS 54373, 2008 WL 2761646 (D. Me. 2008).

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