127 F. Supp. 3d 1020
E.D. Mo.2015Background
- Plaintiffs Clockwork IP, AirTime, and Aquila sue Canadian defendants Clearview Plumbing & Heating and Giraffe for trademark infringement, unfair competition, conversion, fraudulent inducement, and tortious interference arising from SGI-related activities.
- Clockwork is a Delaware LLC with HQ in Sarasota, Florida; AirTime is a Missouri LLC with HQ in Sarasota; Aquila (SGI) is an Illinois LLC with HQ in Sarasota; SGI operates as an affinity-group system for contractors.
- Clearview and Giraffe are Canadian entities; Clearview formerly part of SGI Canada (Mar. 2011–May 2013) and licensed Clockwork marks in Canada; licensing agreements in 2011 related to AirTime marks WE FIX IT OR IT’S FREE and GREEN SCREENED; the TECH SEAL license was not executed.
- Plaintiffs allege Clearview misappropriated CLOCKWORK marks and targeted their Tech Seal Program; alleged actions occurred through SGI channels and licensing arrangements.
- Defendants moved to dismiss for lack of personal jurisdiction under Fed. R. Civ. P. 12(b)(2); Plaintiffs contend effects and minimum contacts support jurisdiction.
- Court analyzes long-arm and due process, finding no sufficient minimum contacts or general jurisdiction; Rule 4(k)(2) relief not shown; alter-ego theory rejected; jurisdictional discovery denied; motion to dismiss granted without prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Missouri can exercise personal jurisdiction over Clearview. | Plaintiffs claim extraterritorial acts targeted Missouri. | Defendants lacked contacts in Missouri and did not purposefully avail themselves here. | No specific jurisdiction; minimum contacts not shown. |
| Whether Missouri has general jurisdiction over Clearview. | Extensive United States contacts render Clearview at home in Missouri. | Contacts are not continuous/systematic; insufficient for general jurisdiction. | No general jurisdiction. |
| Whether Rule 4(k)(2) federal long-arm applies. | Contacts with SGI/US entities suffice under 4(k)(2). | Insufficient US-wide contacts to justify jurisdiction. | Rule 4(k)(2) not satisfied. |
| Whether Giraffe can be hauled in as alter ego of Clearview. | Giraffe owned/licensed by Clearview; alter ego jurisdiction. | No jurisdiction over Clearview; alter-ego theory fails. | Alter-ego theory rejected since Clearview not subject to jurisdiction. |
| Whether jurisdictional discovery should be granted. | Discovery could reveal additional Missouri contacts and alter ego. | Prima facie case of jurisdiction lacking; discovery not warranted. | Denied; jurisdictional discovery not appropriate. |
Key Cases Cited
- K-V Pharm. Co. v. J. Uriach & CIA, S.A., 648 F.3d 588 (8th Cir. 2011) (requirements for a prima facie showing of personal jurisdiction; testing with affidavits)
- Dairy Farmers of Am., Inc. v. Bassett & Walker Intern., Inc., 702 F.3d 472 (8th Cir. 2012) (five-factor test for minimum contacts and jurisdictional analysis)
- International Shoe Co. v. Washington, 326 U.S. 310 (U.S. 1945) (established minimum contacts and due process standard)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (U.S. 1985) (purposeful availment and reasonableness in jurisdiction)
- Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408 (U.S. 1984) (illustrates limitations of jurisdiction without sufficient contacts)
- Viasystems, Inc. v. EBM-Papst St. Georgen GmbH & Co., KG, 646 F.3d 589 (8th Cir. 2011) (five-factor test for minimum contacts and scope of contacts)
- N.C.C. Motorsports, Inc. v. K-VA-T Food Stores, Inc., 975 F. Supp. 2d 993 (E.D. Mo. 2013) (extraterritorial acts producing in-forum consequences insufficient alone)
- Peabody Holding Co. Inc. v. Costain Group PLC, 808 F. Supp. 1425 (E.D. Mo. 1992) (Calder effects test requires targeted acts with in-forum consequences)
- Angelica Corp. v. Gallery Mfg. Corp., 904 F. Supp. 993 (E.D. Mo. 1995) (solicitation/contracting contacts can indicate targeting Missouri)
- Zippo Mfg. Co. v. Zippo Dot Com, Inc., 952 F. Supp. 1119 (W.D. Pa. 1997) (interactive websites; level of interactivity matters for jurisdiction)
