United Phosphorus, Ltd. v. Angus Chemical Co.

43 F. Supp. 2d 904, 1999 U.S. Dist. LEXIS 4594, 1999 WL 181414
CourtDistrict Court, N.D. Illinois
DecidedMarch 24, 1999
Docket94 C 2078
StatusPublished
Cited by28 cases

This text of 43 F. Supp. 2d 904 (United Phosphorus, Ltd. v. Angus Chemical Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Phosphorus, Ltd. v. Angus Chemical Co., 43 F. Supp. 2d 904, 1999 U.S. Dist. LEXIS 4594, 1999 WL 181414 (N.D. Ill. 1999).

Opinion

MEMORANDUM AND ORDER

MANNING, District Judge.

Defendant Lupin Laboratories, Ltd. and D.B. Gupta’s renewed motion to dismiss for lack of personal jurisdiction pursuant to Fed.R.Civ.P. 12(b)(2) is before the court. For the following reasons, the motion is denied.

I. Background

The plaintiffs in this antitrust action claim that the defendants—Angus Chemical Company and its corporate officers, Freeman Hughes, Ollie Chandler, Lowell Pals, and Gary Granzow (collectively, “Angus”), Angus Chemie GmbH (“Chemie”), and Lupin Laboratories, Ltd. and its officer and owner D.B. Gupta (collectively, the “Lupin defendants”)—engaged in various anti-competitive acts to prevent them from entering the United States and world markets for two chemicals, 1-Nitropropane (“1-NP”) and 2-Amino-l~Butanol (“AB”). AB is the key ingredient in Ethambutol, a drug used to treat tuberculosis, while 1-NP is the raw material used to make AB.

For the purposes of this order, the court will assume familiarity with its prior decisions: (1) granting the Lupin defendants’ first motion to dismiss for lack of personal jurisdiction and permitting the plaintiffs to amend their complaint; and (2) denying the plaintiffs’ motion to reconsider. See United Phosphorus, Ltd. v. Angus Chemical Co., No. 94 C 2078, 1996 WL 164394 (N.D.Ill. Apr.2, 1996); United Phosphorus, Ltd. v. Angus Chemical Co., No. 94 C 2078 (N.D.Ill. Mar. 20, 1997) (unpublished order); see also United Phosphorus, Ltd. v. Angus Chemical Co., No. 94 C 2078, 1994 WL 577246 (N.D.Ill. Oct.18, 1994). At this time, the plaintiffs have amended the jurisdictional allegations in their complaint directed at the Lupin defendants and the parties have completed the discovery necessary to determine if personal jurisdiction over the Lupin defendants is proper.

II. Discussion

A. Standard for a Motion to Dismiss Under Fed.R.Civ.P. 12(b)(2)

In ruling on a motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(2) based on lack of personal jurisdiction, the court may *908 consider matters outside the pleadings, such as affidavits and other materials submitted by the parties. See Fed.R.Civ.P. 12(b). The plaintiffs bear the burden of establishing personal jurisdiction by a preponderance of the evidence. Turnoek v. Cope, 816 F.2d 332, 333 (7th Cir.1987). In making its determination regarding personal jurisdiction, the court must resolve any factual disputes in the plaintiffs’ favor, but must accept the allegations in the plaintiffs’ complaint as true only to the extent that they are not controverted by other, evidence in the record. The court must also accept uncontested jurisdictional facts presented by the defendants as true. Connolly v. Samuelson, 613 F.Supp. 109, 111 (N.D.Ill.1985). With these standards in mind, the court turns to the parties’ contentions regarding jurisdiction.

B. Can the Court Consider Contacts by the Lupin Defendants Which Occurred After the Complaint was Filed?

As a threshold matter, the court must first address whether the Lupin defendants’ contacts with Illinois after the filing of the complaint on April 4, 1994 are relevant. The Lupin defendants assert that the clock stopped on the day the complaint was filed, while the plaintiffs claim that all contacts with Illinois, regardless of when they occurred, are relevant. For the purposes of this inquiry, it is important to note that this is a specific jurisdiction case, as the Lupin defendants’ contacts with Illinois arise from their alleged involvement in a conspiracy and the Angus defendants. Thus, a brief recap of principles relating to specific jurisdiction is in order.

The central inquiries with respect to specific jurisdiction are whether the defendant purposefully established minimum contacts with the forum state and whether those contacts would make personal jurisdiction reasonable and fan-under the circumstances. RAR, Inc. v. Turner Diesel, Ltd., 107 F.3d 1272, 1277 (7th Cir.1997), citing Burger King v. Rudzewicz, 471 U.S. 462, 476-77, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985). “Crucial to the minimum contacts analysis is showing that the defendant ‘should reasonably anticipate being haled into court’ [in the forum state] because the defendant has ‘purposefully avail[ed] itself of the privilege of conducting activities there.’ ” Id. (citations omitted). Factors such as the parties’ negotiations, the future consequences contemplated by the parties, the terms of any contract at issue, and the parties’ actual course of dealings are relevant and must indicate the kind of purposeful availment that makes litigation in the forum state foreseeable to the defendant. Id.

The focus on whether a defendant has purposefully availed itself of the privilege of conducting activities in the forum state necessarily implies that only conduct prior to the accrual of the cause of action or, at 'the very latest, the filing of the lawsuit is relevant. In other words, “purposeful availment” implies that the defendant, as shown by its activities, intended to be amenable to suit in the forum state. Conduct post-dating the filing of a complaint by definition cannot show that, when the defendant engaged in the post-complaint acts purportedly supporting jurisdiction, it intentionally exposed itself to the possibility of an event which had already occurred (the filing of a complaint in the forum state).

This conclusion is supported by Sportmart, Inc. v. Frisch, 537 F.Supp. 1254 (N.D.Ill.1982). In that case, Sportmart filed suit against ski and ski boot manufacturers and distributors alleging that they conspired to refuse to accept orders for Rossignol skis and Nórdica boots for delivery to Sportmart. One of the defendants—Nórdica US—did not commence operations until five months after the alleged conspiracy began. Sportmart nevertheless sued Nórdica US, alleging that, after the complaint was filed, it refused to accept Sportmart’s orders for boots. The court found that “the relevant time period *909 for jurisdiction and venue purposes is the time that the cause of action accrued.” 537 F.Supp. at 1259. Thus, the court concluded that the post-complaint allegations were “jurisdietionally irrelevant” because they went beyond the conspiracy alleged in the complaint. Id.

While Sportmart understandably occupies a starring role in the Lupin defendants’ briefs, the plaintiffs assert that the Seventh Circuit has subsequently held that all contacts — both pre and post-filing — are relevant, citing to Logan Productions, Inc. v. Optibase, Inc.,

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Bluebook (online)
43 F. Supp. 2d 904, 1999 U.S. Dist. LEXIS 4594, 1999 WL 181414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-phosphorus-ltd-v-angus-chemical-co-ilnd-1999.