Chamberlin v. Venture Resorts, Inc. (JRG1)
3:17-cv-00215
E.D. Tenn.May 17, 2017Background
- Plaintiffs rented a cabin at Gatlinburg Falls Resort (Tennessee) on Nov. 27–28, 2016 and experienced a nearby wildfire that destroyed the cabin and about $20,000 in personal property.
- Plaintiffs called the resort multiple times; they allege resort staff assured them evacuation was unnecessary, but later the plaintiffs fled when flames approached and observed the resort office evacuated without guest notice.
- Plaintiffs sued in the Middle District of Florida alleging innkeeper liability and gross negligence, invoking diversity jurisdiction.
- The Complaint’s sole jurisdictional allegation states Defendant is a Tennessee corporation with its principal place of business in Sevier County, Tennessee; it does not allege business operations or an office in Florida.
- Plaintiffs’ response (unsworn) claimed Defendant advertises to Florida residents and emailed plaintiffs, invoking Fla. Stat. § 48.193(1)(a)(1); those allegations were not in the complaint and were not supported by affidavits or a motion to conduct jurisdictional discovery.
- The Court found personal jurisdiction was not adequately pled and dismissed the complaint, transferring the case to the Eastern District of Tennessee pursuant to 28 U.S.C. § 1631.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Florida court has personal jurisdiction over a Tennessee resort | Plaintiffs: Defendant targets Florida residents (ads, emails) and thus conducts business in Florida under Fla. Stat. § 48.193(1)(a)(1) | Defendant: Complaint lacks any factual allegation that it operated or had an office in Florida; allegations are insufficient | Court: Dismissed for lack of personal jurisdiction; plaintiffs failed to plead a prima facie basis under Florida’s long-arm statute |
| Whether the Court should permit jurisdictional discovery or amendment | Plaintiffs: (implied) discovery or amendment could supply jurisdictional facts | Defendant: No jurisdictional facts pled; no basis to delay dismissal | Court: Rejected—plaintiffs never properly sought discovery or moved to amend; unsworn assertions in response disregarded |
| Whether to address subject-matter jurisdiction after personal jurisdiction challenge | N/A | N/A | Court: Declined to reach subject-matter jurisdiction, resolving case on personal jurisdiction first |
| Proper remedy when federal forum lacks personal jurisdiction but transfer is appropriate | Plaintiffs: Maintain suit in Middle District of Florida | Defendant: Move to dismiss for lack of personal jurisdiction | Court: Granted motion to dismiss and transferred the case to the Eastern District of Tennessee under 28 U.S.C. § 1631 |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (conclusory allegations not entitled to assumption of truth)
- La Grasta v. First Union Securities, Inc., 358 F.3d 840 (pleading and documents courts may consider on motion to dismiss)
- Day v. Taylor, 400 F.3d 1272 (same)
- Erickson v. Pardus, 551 U.S. 89 (factual allegations must be accepted as true at motion to dismiss stage)
- Davila v. Delta Air Lines, Inc., 326 F.3d 1183 (conclusory allegations insufficient to avoid dismissal)
- Madara v. Hall, 916 F.2d 1510 (prima facie standard for jurisdictional allegations)
- PVC Windoors, Inc. v. Babbitbay Beach Const., N.V., 598 F.3d 802 (jurisdictional pleading standards)
- United Techs. Corp. v. Mazer, 556 F.3d 1260 (two-step personal jurisdiction inquiry under state long-arm statute and due process)
- Posner v. Essex Ins. Co., 178 F.3d 1209 (plaintiff bears burden to plead prima facie case of jurisdiction)
- Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574 (court may decide personal jurisdiction first when straightforward)
