Vapotherm, Inc. v. Vero Biotech, LLC

CourtDistrict Court, D. New Hampshire
DecidedJune 24, 2021
Docket1:21-cv-00058
StatusUnknown

This text of Vapotherm, Inc. v. Vero Biotech, LLC (Vapotherm, Inc. v. Vero Biotech, LLC) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vapotherm, Inc. v. Vero Biotech, LLC, (D.N.H. 2021).

Opinion

UNITED STATES DISTRICT COURT

DISTRICT OF NEW HAMPSHIRE

Vapotherm, Inc., Plaintiff

v. Case No. 21-cv-0058-SM Opinion No. 2021 DNH 099

Clayton Santiago, Defendant

O R D E R

Vapotherm, Inc. brings this action against its former employee, Clayton Santiago, advancing several state law claims arising out of Santiago’s alleged breach of contract. According to Vapotherm, Santiago violated a non-solicitation agreement by encouraging former co-workers to terminate their employment with Vapotherm and urging them to join Santiago at his new employer: Vero Biotech, LLC. Santiago says he did nothing of the sort and, despite having engaged in limited discovery and having deposed the relevant witnesses, Vapotherm has identified scant evidence to support its claims. Beyond the apparent weakness in Vapotherm’s claims on the merits, Santiago asserts that this court lacks personal jurisdiction over him and, on that basis, he moves to dismiss all of Vapotherm’s claims. For the reasons discussed, Santiago’s motion to dismiss for lack of personal jurisdiction is granted.

Standard of Review When personal jurisdiction is contested, the plaintiff

bears the burden of establishing that the court has such jurisdiction. See Sawtelle v. Farrell, 70 F.3d 1381, 1387 (1st Cir. 1995); Kowalski v. Doherty, Wallace, Pillsbury & Murphy, 787 F.2d 7, 8 (1st Cir. 1986). Allegations of jurisdictional facts are construed in the plaintiff’s favor, see Buckley v. Bourdon, 682 F. Supp. 95, 98 (D.N.H. 1988), and if, as here, the court proceeds based upon the written submissions of the parties without an evidentiary hearing, the plaintiff need only make a prima facie showing that jurisdiction exists. See Kowalski, 787 F.2d at 8; Boit v. Gar-Tec Products, Inc., 967 F.2d 671, 674-75 (1st Cir. 1992).

Nevertheless, the plaintiff’s demonstration of personal jurisdiction must be based on specific facts set forth in the record in order to defeat a defendant’s motion to dismiss. See Ticketmaster-New York, Inc. v. Alioto, 26 F.3d 201, 203 (1st Cir. 1994). See also Jet Wine & Spirits, Inc. v. Bacardi & Co., 298 F.3d 1, 8 (1st Cir. 2002) (“Although the burden of proof is light, [the plaintiff] may not rely on the mere allegations of its complaint, but must point to specific facts in the record that support those allegations.”). And, “in reviewing the record before it, a court ‘may consider pleadings, affidavits, and other evidentiary materials without converting the motion to dismiss to a motion for summary judgment.’” VDI Technologies v.

Price, 781 F. Supp. 85, 87 (D.N.H. 1991) (quoting Lex Computer & Management Corp. v. Eslinger & Pelton, P.C., 676 F. Supp. 399, 402 (D.N.H. 1987)).

This court has discussed the constitutional requirements for exercising personal jurisdiction over a foreign defendant many times and that discussion need not be repeated. See, e.g., Douglas Co., Inc. v. My Brittany's LLC, No. 19-CV-1234-SM, 2020 WL 2768973 (D.N.H. May 28, 2020); D’Jamoos v. Atlas Aircraft Ctr., Inc., 669 F. Supp. 2d 167 (D.N.H. 2009). Here, it is sufficient to note that Vapotherm asserts that the court may exercise “specific” (as opposed to “general”) personal

jurisdiction over Santiago. See generally Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 919 (U.S. 2011) (noting that “specific jurisdiction is confined to adjudication of issues deriving from, or connected with, the very controversy that establishes jurisdiction.”) (citation and internal punctuation omitted). For this court to exercise specific personal jurisdiction over Santiago, Vapotherm must show that: (1) [the] claim directly arises out of or relates to the defendant’s forum-state activities; (2) the defendant’s contacts with the forum state represent a purposeful availment of the privilege of conducting activities in that state, thus invoking the benefits and protections of that state’s laws and rendering the defendant’s involuntary presence in that state’s courts foreseeable; and (3) the exercise of jurisdiction is ultimately reasonable. Failure to make any one of these showings dooms any effort to establish specific personal jurisdiction.

Scottsdale Cap. Advisors Corp. v. The Deal, LLC, 887 F.3d 17, 20 (1st Cir. 2018) (citations omitted; emphasis supplied). See also Cambridge Literary Props. v. W. Goebel Porzellanfabrik, 295 F.3d 59, 63 (1st Cir. 2002); Sawtelle, 70 F.3d at 1389-95 (describing the three essential jurisdictional elements as “relatedness,” “purposeful availment,” and the so-called “Gestalt factors”).

The first of those elements – “relatedness” – requires the plaintiff “to show a demonstrable nexus between its claims and the defendant’s forum-based activities, such that the litigation itself is founded directly on those activities.” C.W. Downer & Co. v. Bioriginal Food & Sci. Corp., 771 F.3d 59, 66 (1st Cir. 2014) (citation and internal punctuation omitted). With regard to that prong of the jurisdictional inquiry, the court employs a slightly different analysis depending on the nature of the claim advanced – that is, whether it sounds in tort or contract. “[W]here the cause of action is for an alleged breach of contract, we ask whether the defendant’s activity in the forum state was instrumental either in the formation of the contract or its breach.” Adelson v. Hananel, 510 F.3d 43, 49 (1st Cir. 2007) (citation and internal punctuation omitted). If the claim

sounds in tort, “we customarily look to whether the plaintiff has established ‘cause in fact (i.e., the injury would not have occurred “but for” the defendant's forum-state activity) and legal cause (i.e., the defendant’s in-state conduct gave birth to the cause of action).’” Massachusetts Sch. of L. at Andover, Inc. v. Am. Bar Ass’n, 142 F.3d 26, 35 (1st Cir. 1998) (quoting United Elec., Radio & Mach. Workers of Am. v. 163 Pleasant St. Corp., 960 F.2d 1080, 1089 (1st Cir. 1992)).

The “purposeful availment” element of the analysis has been described as a “rough quid pro quo” – that is, “when a defendant deliberately targets its behavior toward the society or economy

of a particular forum, the forum should have the power to subject the defendant to judgment regarding that behavior.” Carreras v. PMG Collins, LLC, 660 F.3d 549, 555 (1st Cir. 2011). A federal court’s exercise of personal jurisdiction over a foreign defendant “must be based on intentional conduct by the defendant that creates the necessary contacts with the forum.” Walden v. Fiore, 571 U.S. 277, 286 (2014). “Regardless of where a plaintiff lives or works, an injury is jurisdictionally relevant only insofar as it shows that the defendant has formed a contact with the forum State.” Id. at 290.

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298 F.3d 1 (First Circuit, 2002)
Adelson v. Hananel
510 F.3d 43 (First Circuit, 2007)
Goodyear Dunlop Tires Operations, S. A. v. Brown
131 S. Ct. 2846 (Supreme Court, 2011)
Robert S. Boit v. Gar-Tec Products, Inc.
967 F.2d 671 (First Circuit, 1992)
Carreras v. PMG COLLINS, LLC
660 F.3d 549 (First Circuit, 2011)
Ticketmaster-New York, Inc. v. Joseph M. Alioto
26 F.3d 201 (First Circuit, 1994)
Arthur F. Sawtelle, Etc. v. George E. Farrell
70 F.3d 1381 (First Circuit, 1995)
VDI TECHNOLOGIES v. Price
781 F. Supp. 85 (D. New Hampshire, 1991)
Buckley v. Bourdon
682 F. Supp. 95 (D. New Hampshire, 1988)
Lex Computer & Management Corp. v. Eslinger & Pelton, P.C.
676 F. Supp. 399 (D. New Hampshire, 1987)
D'JAMOOS v. Atlas Aircraft Center, Inc.
669 F. Supp. 2d 167 (D. New Hampshire, 2009)
Walden v. Fiore
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Cason v. Puerto Rico Electric Power Authority
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Vapotherm, Inc. v. Vero Biotech, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vapotherm-inc-v-vero-biotech-llc-nhd-2021.