Vision Motor Cars, Inc. v. Valor Motor Co.

981 F. Supp. 2d 464, 2013 WL 5954726, 2013 U.S. Dist. LEXIS 158665
CourtDistrict Court, M.D. North Carolina
DecidedNovember 6, 2013
DocketNo. 1:13-CV-317
StatusPublished
Cited by25 cases

This text of 981 F. Supp. 2d 464 (Vision Motor Cars, Inc. v. Valor Motor Co.) 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
Vision Motor Cars, Inc. v. Valor Motor Co., 981 F. Supp. 2d 464, 2013 WL 5954726, 2013 U.S. Dist. LEXIS 158665 (M.D.N.C. 2013).

Opinion

MEMORANDUM OPINION AND ORDER

CATHERINE C. EAGLES, District Judge.

This matter is before the Court on motions to dismiss filed by defendant Gene Gabus, (Doc. 10), and defendants Valor Motor Company, Noble Automotive Group, and Robert Smith. (Doc. 14.) The plaintiff asserts several claims arising under the trademark laws of the United States based on allegations that the defendants used or are responsible for the use by others of the plaintiffs trademark “Vision [468]*468Motor Cars.”1 The plaintiff also asserts state law claims arising out of the same factual allegations. The defendants contend the Court lacks personal jurisdiction. For reasons stated below, the Court finds it does not have personal jurisdiction over any of the defendants, and the action will be dismissed.

BACKGROUND

When a court’s exercise of personal jurisdiction is challenged pursuant to a Rule 12(b)(2) motion, the plaintiff must prove the existence of a ground for jurisdiction by a preponderance of the evidence. See Combs v. Bakker, 886 F.2d 673, 676 (4th Cir.1989); Mylan Labs., Inc. v. Akzo, N.V., 2 F.3d 56, 60 (4th Cir.1993). When a court examines personal jurisdiction “on the basis only of motion papers, supporting legal memoranda and the relevant allegations of a complaint, the burden on the plaintiff is simply to make a prima facie showing” of personal jurisdiction. Combs, 886 F.2d at 676. The Court must “construe all relevant pleading allegations in the light most favorable to the plaintiff, assume credibility, and draw the most favorable inferences for the existence of jurisdiction.” Id.

Although the standard may be lenient, the Court need not “credit conclusory allegations or draw farfetched inferences.” Masselli & Lane, PC v. Miller & Schuh, PA, 215 F.3d 1320 (table), 2000 WL 691100, at *1 (4th Cir.2000) (quoting Ticketmaster-N.Y., Inc. v. Alioto, 26 F.3d 201, 203 (1st Cir.1994)). Blanket conclusory allegations as to multiple defendants are insufficient. Cf. Sterne v. Thompson, No. L05-CV-477JCC, 2005 WL 2563179, at *2 (E.D.Va. Oct. 7, 2005) (addressing Rule 12(b)(6) motion). A parent-subsidiary relationship does not by itself support jurisdiction. Saudi v. Northrop Grumman Corp., 427 F.3d 271, 276 (4th Cir.2005). More must be shown, such as an agency relationship or another reason to pierce the corporate veil. See Mylan Labs., 2 F.3d at 61. Plaintiffs must base their 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).

The allegations of the complaint are taken as true only if they are not controverted by evidence from the defendant. See Wolf v. Richmond Cnty. Hosp. Auth., 745 F.2d 904, 908 (4th Cir.1984). Once a 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. See Clark v. Remark, 993 F.2d 228 (table), 1993 WL 134616, at *2 (4th Cir.1993); Vogel v. Walters Kluwer Health, Inc., 630 F.Supp.2d 585, 594 (M.D.N.C.2008); see also IMO Indus., Inc. v. SEIM s.r.l, No. 3:05-CV-420-MU, 2006 WL 3780422, at *1 (W.D.N.C. Dec. 20, 2006) (holding that a plaintiff “may not rest on mere allegations where the defendant has countered those allegations with evidence that the requisite minimum contacts do not exist”). Where both sides present evidence about personal jurisdiction, factual conflicts must be resolved in favor of the party asserting jurisdiction for the limited purpose of determining whether a prima facie showing has been made. See Mylan Labs., 2 F.3d at 62; Barclays Leasing v. Nat’l Bus. Sys., Inc., 750 F.Supp. 184, 186 (W.D.N.C.1990); see also Combs, 886 F.2d at 676.

[469]*469FACTS

The complaint, with few exceptions, groups the defendants together and is not specific about the activities or actions of any particular defendant. The only allegation in the complaint concerning the activities of any defendant or of the defendants as a group in or directed towards North Carolina reads, in its entirety: “Defendants caused tortuous [sic] injury in the [Middle District of North Carolina] by acts or omissions outside the district, while regularly doing or soliciting business in the State of North Carolina, pursuant to N.C. GEN. STAT. § 1-75.4.” (Doc. 1 at ¶3.)

The defendants have come forward with specific and detailed evidence concerning the nature and extent of their contacts with North Carolina. (See generally Doc. 11-1; Doc. 15-1; Doc. 20-1; Docs. 26-1 to 26-3.) The plaintiff has responded with affidavits concerning website content and with copies of news articles and website pages, which the Court will consider. (Docs. 18-1 to 18-7, 24-1 to 24-7.) The Court views the evidence in the light most favorable to the plaintiff, but notes that these materials do not contradict the defendants’ evidence in any substantial or material way. See Combs, 886 F.2d at 676.

1. The Vision Company

The Vision Company was incorporated in Delaware in 2012. (Doc. 15-1 at ¶ 2.) It was a business originally organized to market compressed natural gas (“CNG”) vehicles. (Doc. 15-1 at ¶ 18.) In January 2012, it “reserved its name in South Carolina,” established a domain registration for www.visionmotorcompany.com, and designed a webpage at that site. (Doc. 15-1 at ¶¶ 19-20.) The website contained contact information for defendant Smith and defendant Gabus. (Doc. 24-1 at 3.) It stated that the Vision Company “will soon offer” CNG vehicles for sale, (Doc. 24-1 at 2), and included “links to view videos of cars and safety videos, a dealership inquiry form, and links to allow the viewer to view current natural gas. prices.” (Doc. 24 at ¶ 3.) On its website, the Vision Company was identified as a “division” and “Wholly. Owned Subsidiary” of defendant Noble. (Doc. 18-1 at 3-4.) The website listed Gabus Automotive Distributors, Inc., as the “Central, East & West Coast Distributor.” (Id. at 3.) This statement was followed by a list of 39 states that included North Carolina. (Id. at 3.) Another entity was listed as the distributor for the northeast. (Id.)

The Vision Company ceased operations in August 2012 and never sold any vehicles. (Doc. 15-1 at ¶¶ 21-22.) It is not a defendant in this case. It has no offices, real property, bank accounts, telephone numbers, or employees in North Carolina, nor does it have an agent for service of process in North Carolina. (Id. at ¶¶ 6-12.) It did not and does not advertise in any print, television, or radio outlets in or directed to North Carolina and it has not exhibited any products at any trade shows in North Carolina. (Id. at ¶¶ 13-14.)

2. Valor

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981 F. Supp. 2d 464, 2013 WL 5954726, 2013 U.S. Dist. LEXIS 158665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vision-motor-cars-inc-v-valor-motor-co-ncmd-2013.