Switchback Group, Inc. v. Zweigle
5:14-cv-01022
N.D. OhioJul 9, 2015Background
- Switchback Group, Inc. contracted with John Zweigle (dba Design Services) as a mechanical designer from 2007, with design work and records to remain Switchback property and Switchback reimbursing travel to Ohio.
- Zweigle traveled to Ohio several times per year over the seven-year relationship and both parties later reaffirmed/modified the contract (including an obligation to report business opportunities to Switchback).
- Switchback sued for breach of contract and related claims, alleging Zweigle took credit for Switchback’s work and used it in his advertising after the contract ended.
- Zweigle moved to dismiss for lack of personal jurisdiction, arguing the claims arose after the contract ended and he no longer had contacts with Ohio (he resides in California).
- The district court treated the plaintiff’s burden as a prima facie showing, reviewed Ohio’s long-arm statute and constitutional due process requirements, and considered Zweigle’s repeated visits and contractual dealings with an Ohio corporation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction under Ohio's long-arm statute | Zweigle contracted to supply services in Ohio and his alleged post-contract misuse of Switchback work caused injury to an Ohio corporation, so jurisdiction arises under O.R.C. §2307.382 | Claims arose after contract termination and thus do not arise from transacting business in Ohio; no continuing contacts | Court: Long-arm applies — contract formation/performance in Ohio and alleged injury to an Ohio corporation support jurisdiction |
| Constitutional due process (specific jurisdiction) | Zweigle purposefully availed himself of Ohio by contracting and repeatedly working for an Ohio company; the claims arise from those contacts and litigation in Ohio is reasonable | Litigation in Ohio is unduly burdensome because Zweigle lives in California and did not personally pay travel costs previously | Court: Due process satisfied — purposeful availment, claims arise from in-state contacts, and defending in Ohio is not unreasonable under the circumstances |
Key Cases Cited
- Air Prods. & Controls, Inc. v. Safetech Int’l, Inc., 503 F.3d 544 (6th Cir. 2007) (two-step test: state long-arm and due process inquiry for personal jurisdiction)
- CompuServe, Inc. v. Patterson, 89 F.3d 1257 (6th Cir. 1996) (plaintiff need only make a prima facie showing of jurisdiction)
- Welsh v. Gibbs, 631 F.2d 436 (6th Cir. 1980) (court must view pleadings and affidavits in plaintiff’s favor at jurisdictional stage)
- Schneider v. Hardesty, 669 F.3d 693 (6th Cir. 2012) (defendant must reasonably expect that actions would cause injury in forum state for long-arm §(A)(6))
- Clark v. Connor, 82 Ohio St.3d 309 (Ohio 1998) (breach of in-state non-disclosure expectations supports suit in Ohio even if defendant moved out of state)
- Bridgeport Music, Inc. v. Still N The Water Publ’g, 327 F.3d 472 (6th Cir. 2003) (purposeful availment requires more than passive activity)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (1985) (benefit/protection of forum’s laws supports requiring defendant to defend there)
- Southern Machine Co. v. Mahasco Indus., Inc., 401 F.2d 374 (6th Cir. 1968) (three-part test for specific jurisdiction)
