Russ Herman v. Cataphora, Incorporated, et
730 F.3d 460
5th Cir.2013Background
- Herman and Levin (members of the MDL Steering Committee) sued Cataphora and its technology counsel, Roger Chadderdon, in the Eastern District of Louisiana for defamation and interference after statements by Chadderdon were published on the California website Above the Law.
- Chadderdon made the statements in California during an interview with a California journalist; the underlying contract dispute between Cataphora (a Delaware corp. with principal place in California) and the Steering Committee was litigated in the Northern District of California.
- Defendants moved to dismiss for lack of personal jurisdiction (Rule 12(b)(2)) and improper venue (Rule 12(b)(3)), alternatively seeking transfer to the Northern District of California.
- The district court found no personal jurisdiction in Louisiana, granted the motion to dismiss, and (contradictorily) ordered transfer to the Northern District of California. Plaintiffs appealed.
- The Fifth Circuit held the district court’s grant of dismissal produced an appealable final order (making the transfer ineffective) but concluded the dismissal should be vacated and the case remanded with instructions to transfer to California under 28 U.S.C. § 1406(a).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction in Louisiana over Chadderdon for alleged defamatory statements | Statements targeted Steering Committee members who do business in Louisiana; harm primarily felt in Louisiana | Statements were made in California about a California contract dispute and were not directed at Louisiana; no "focal point" in Louisiana | No personal jurisdiction: plaintiffs failed to show the statements’ focal point was Louisiana (Calder/Clemens analysis) |
| Whether the district court’s simultaneous dismissal and transfer was effective | (implicit) Transfer preserves the case in California despite dismissal | Dismissal is a final appealable order; transfer ordered after dismissal is invalid | Dismissal created a final appealable order; the transfer in the same order was invalid; Fifth Circuit has jurisdiction |
| Appropriate remedy when personal jurisdiction lacking | Plaintiffs sought to keep case in Louisiana or at least preserve merits | Defendants moved to dismiss; alternatively sought transfer to California | Court may transfer under §1406(a) when in interest of justice; Fifth Circuit vacated dismissal and remanded with instruction to transfer to N.D. Cal. |
| Application of Calder doctrine to online publication | Plaintiffs: injury in Louisiana and defendant’s awareness of MDL’s Louisiana base support jurisdiction | Defendants: statements concerned California litigation, made in California, not expressly directed at Louisiana or its residents | Calder requires forum to be focal point; here California was focal point, so Calder did not support Louisiana jurisdiction |
Key Cases Cited
- Picco v. Global Marine Drilling Co., 900 F.2d 846 (5th Cir.) (final-order appealability principles)
- Bullion v. Gillespie, 895 F.2d 213 (5th Cir.) (standard of review and minimum contacts framework)
- Guidry v. U.S. Tobacco Co., 188 F.3d 619 (5th Cir.) (prima facie burden on plaintiff without evidentiary hearing)
- Jackson v. Tanfoglio Giuseppe, S.R.L., 615 F.3d 579 (5th Cir.) (state long-arm coextensive with due process)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (U.S.) (requirement of nexus between contacts and cause of action)
- Clemens v. McNamee, 615 F.3d 374 (5th Cir.) (Calder focal-point analysis applied to extraterritorial statements)
- Calder v. Jones, 465 U.S. 783 (U.S.) (defamation-specific jurisdictional analysis; forum as "focal point")
- Revell v. Lidov, 317 F.3d 467 (5th Cir.) (need for statements to be directed at the forum)
- Fielding v. Hubert Burda Media, Inc., 415 F.3d 419 (5th Cir.) (limits on finding jurisdiction when statements focus outside forum)
- Dubin v. United States, 380 F.2d 813 (5th Cir.) (transfer under §1406(a) when original forum improper)
- Bentz v. Recile, 778 F.2d 1026 (5th Cir.) (district may be "wrong" for venue due to lack of personal jurisdiction)