Motion to Dismiss Granted in Products Case Based on Jurisdictional Issues

In the case of Winters v. Akzo Nobel Surface Chemistry, LLC, No. 19-5398 (E.D. Pa. April 27, 2020 Schmehl, J.), the court granted a Motion to Dismiss filed by a product manufacturer on the basis that the manufacturer was not subject to personal jurisdiction in Pennsylvania. 

In its decision, the court ruled that the Plaintiff could not rely upon a stream of commerce argument as a basis for specific jurisdiction.

The court also noted that the Plaintiff’s efforts to establish jurisdiction under Pennsylvania long-arm statute did not prevail. 

The court also held that jurisdiction may not be based upon a Defendant entering into contracts with Pennsylvania companies, since third party contacts are not relevant to the issue of personal jurisdiction. 

The court additionally held that an unrelated office of the Defendant located in Pennsylvania did not suffice to serve as a relevant contact. 

The court granted the Motion to Dismiss and severed the action against the product manufacturer and transferred that part of the case to Delaware, where that manufacturer was incorporated. 

Anyone wishing to review a copy of this decision may click this LINK.

I send thanks to Attorney James M. Beck of the Philadelphia office of the Reed Smith law firm for bringing this case to my attention.

Judge Mariani of Federal Middle District Court Reviews Law of Personal Jurisdiction in Federal Court

In the case of Burnside v. Peterbilt Motors Co., 3:17-CV-2121 (M.D. Pa. June 28, 2018 Mariani, J.), the court granted a Defendant’s Motion to Dismiss based upon jurisdictional objections.  

This products liability claim arose out of an incident during which the Plaintiff was injured when a bobtail truck he was using began leaking propane and then caught fire.

Judge Mariani provided a detailed review of the current standards for properly finding jurisdiction over a foreign defendant in a Pennsylvania federal court matter.

In this matter, the court stated that the Plaintiffs did not allege that the Defendant directed any activities to Pennsylvania or sent the product at issue to Pennsylvania.  The court also noted that the Plaintiff did not even allege how the product came to be in Pennsylvania.  

The court ruled that a Plaintiff cannot establish personal jurisdiction over a Defendant through the stream of commerce theory under the facts of this case.  

As such, the court granted the Defendant’s Motion to Dismiss but allowed the Plaintiff to conduct limited jurisdictional discovery before the case was completely dismissed.

Anyone wishing to review a copy of this decision may click this LINK.  The Court's companion Order can be viewed HERE.

I send thanks to Attorney James M. Beck of the Reeds Smith law firm in Philadelphia for bringing this case to my attention.  

Federal Court Addresses Standards for Jurisdiction Over Out-of-State Defendant

In the case of Wylam v. Trader Joe’s Co., No. 3:16 - CV - 2112 (M.D. Pa. Jan. 18, 2018 Mariani, J.), a Pennsylvania Federal Court denied a Motion to Dismiss without prejudice in this matter involving a question of proper general personal jurisdiction over an out-of-state Defendant.  

The Court ruled that there is no general jurisdiction over the moving third party Defendant in this matter.   Rather, that Defendant was noted to be a foreign  company with a principle place of business abroad.   No minimal contacts within Pennsylvania were seen in the record.   More specifically, the Opinion noted that the Defendant did not have any physical presence in the Commonwealth of Pennsylvania. 

Judge Robert D. Mariani
M.D. Pa.

Judge Robert D. Mariani noted that the Plaintiff was attempting to rely upon a stream of commerce personal jurisdiction argument.  The Court noted that this argument has never been approved by the Pennsylvania Supreme Court, while not being decisively rejected either.  

However, the court in Wylam ruled that a single in-state sale, without some additional conduct directed towards the forum state, did not support the Plaintiff's stream of commerce jurisdiction argument.  

The Court also noted that the fact that a Defendant’s products are carried by national retailers is also insufficient to establish jurisdiction in any state.  

The court also generally noted that it is the burden of the Plaintiff to establish jurisdiction and that speculation in this regard is not sufficient.  

As stated, the court denied the Motion to Dismiss without prejudice.   However, the Plaintiff was allowed to complete jurisdictional discovery, limited to the stream of commerce issue in an effort to gather further support for the jurisdictional arguments.  

Anyone wishing to review a copy of this decision may click this LINK.  The companion Order can be viewed HERE.

I send thanks to Attorney James M. Beck of the Philadelphia office of the law firm of Reed Smith for bringing this case to my attention.