Wang v. Korean Airlines Co., Ltd.

District Court, D. Nevada·Decided January 8, 2021·No. 2:20-cv-00409·Unknown

Opinion

Chunyun Wang, Case No.: 2:20-cv-00409-JAD-VCF

Plaintiff Order Granting in Part Defendant’s v. Motion to Dismiss and Granting in Part Plaintiff’s Countermotion to Amend Korean Airlines Co., Ltd., et al. [ECF Nos. 12, 21] Defendants

International airline company Korean Airlines Co., Ltd., which is headquartered in and operated from Seoul, South Korea, flies to 126 destinations and employs 19,000 individuals to service approximately 460 daily flights.1 One of those global destinations is Las Vegas, Nevada, where it operates as a registered, foreign close corporation and employs seven people to manage five flights per week, each of which is a round-trip flight to and from Incheon, South Korea.2 Nevada-resident Chunyun Wang was a passenger on one of these flights when, roughly one hour and thirty minutes into her trip from Las Vegas, a flight attendant spilled hot water in her lap.3 Wang alleges that she sustained second- and third-degree burns, causing “excruciating pain” and permanent scarring and disfiguration.4 Wang sues Korean Air, as well as unnamed flight attendants and heating-device manufacturers, for violations of the Convention for the Unification of Certain Rules for

1 ECF Nos. 11 at ¶ 2; 13 at ¶¶ 5–11; 13-1. The facts stated in this order are merely summarized from the facts alleged in the complaint and are not findings of fact. 2 ECF Nos. 13 at ¶¶ 11, 8; 13-2. 3 ECF No. 11 at ¶¶ 14–16. 4 Id. at ¶¶ 16, 18. International Carriage by Air,5 better known as the Montreal Convention; negligence; negligent training, hiring, and supervision; and strict products liability.6 Korean Air moves to dismiss Wang’s suit, arguing that the Montreal Convention precludes Wang’s state-law causes of action and that this court lacks personal jurisdiction over it.7 In her countermotion seeking leave to file a second amended complaint, Wang appears to agree with Korean Air about the Montreal

Convention but asks to “preserve” her negligence and products-liability theories of injury against the flight attendants and manufacturers.8 I hold that Korean Air is subject to specific jurisdiction in this court because it has purposefully availed itself of the benefits of conducting business in the state, Wang’s injuries arise from those contacts, and the exercise of jurisdiction is reasonable. I then dismiss Wang’s state-law claims against Korean Air and its employees, grant Wang’s countermotion in part, and give her until January 22, 2021, to file a revised second amended complaint remedying the deficiencies identified in this order. Discussion I. This court has personal jurisdiction over Korean Air.

A district court may dismiss an action under Federal Rule 12(b)(2) for lack of personal jurisdiction. When the only basis for subject-matter jurisdiction over a defendant is diversity of citizenship, the court applies the forum state’s laws to determine personal jurisdiction, bearing in mind that the exercise of jurisdiction must comport with the requirements of due process under

5 Convention for the Unification of Certain Rules for International Carriage by Air, May 28, 1999, S. Treaty Doc. No. 106-45. 6 ECF No. 11. 7 ECF No. 12; see also ECF No. 22 (corrected version). 8 ECF No. 21 at 4. the United States Constitution.9 Where, as here, the defendant is not a resident of the forum state, the court must determine whether that defendant has “certain minimum contacts such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.”10 “There are two forms of personal jurisdiction that a forum state may exercise over a nonresident defendant—general jurisdiction and specific jurisdiction.”11 While Korean Air is

not subject to this court’s general jurisdiction, it is subject to its specific jurisdiction. A. This court lacks general jurisdiction over Korean Air. “For general jurisdiction to exist, a [nonresident] defendant must engage in ‘continuous and systematic general business contacts,’” “approximat[ing] physical presence in the forum state,” that are “so substantial and of such a nature as to justify suit against [the defendant] on causes of action arising from dealings entirely distinct from those activities.”12 “This is an exacting standard . . . because a finding of general jurisdiction permits a defendant to be haled into court in the forum state to answer for any of its activities anywhere in the world.”13 “Only in an ‘exceptional case’ will general jurisdiction be available anywhere” other than a party’s state

of incorporation, state of residence, or corporate headquarters.14 So, courts should consider the

9 Walden v. Fiore, 571 U.S. 277, 283 (2014). Because Nevada’s long-arm statute grants courts jurisdiction over persons “on any basis not inconsistent with” the U.S. Constitution, the jurisdictional analyses under state law and federal due process are identical. See id.; Nev. Rev. Stat. § 14.065. 10 Walden, 571 U.S. at 283 (quoting Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945)) (internal quotation marks and ellipsis omitted). 11 Boschetto v. Hansing, 539 F.3d 1011, 1016 (9th Cir. 2008). 12 Mavrix Photo, Inc. v. Brand Techs., Inc., 647 F.3d 1218, 1224 (9th Cir. 2011) (internal quotation marks and citations omitted). 13 Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 801 (9th Cir. 2004). 14 Ranza v. Nike, Inc., 793 F.3d 1059, 1069 (9th Cir. 2015) (quoting Martinez v. Aero Caribbean, 764 F.3d 1062, 1070 (9th Cir. 2014)). “[l]ongevity, continuity, volume, economic impact, physical presence, and integration into the state’s regulatory or economic markets” to find general jurisdiction appropriate.15 Wang has failed to make the exceptional case that this South Korean airline company is subject to this court’s general jurisdiction. As the United States Supreme Court noted in Daimler AG v. Bauman, “the general jurisdiction inquiry does not ‘focu[s] solely on the magnitude of the

defendant’s in-state contacts.’ General jurisdiction instead calls for an appraisal of a corporation’s activities in their entirety, nationwide and worldwide.”16 Reiterating this point in BNSF Railway Co. v. Tyrell, the Court reversed Montana’s exercise of general jurisdiction over a nonresident railroad company—despite that company having “over 2,000 miles of railroad track and more than 2,000 employees in Montana”—because its “in-state business” was insufficient to render it “essentially at home” in the state.17 Korean Air, like the BNSF defendant, transports passengers to the forum and, unlike the BNSF defendant, has fewer than 10 forum-based employees. And its Nevada-based business is “minor compared to its worldwide contacts,”18 which depend on roughly 19,000 employees to operate 460 daily flights to 126 global

destinations.19 Just because Korean Air “operates in many places,” does not mean it can “be deemed at home in all of them.”20

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Wang v. Korean Airlines Co., Ltd., (D. Nev. 2021).

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