577 F. App'x 659
9th Cir.2014Background
- Dennis L. Turney sued HCE and its parent HHI, asserting an Arizona Civil Rights Act (ACRA) discrimination claim and a common-law negligent hiring/supervision claim against HHI after prior federal suits.
- Turney previously litigated Title VII and ADEA claims against the same parties that resulted in a final judgment on the merits.
- The ACRA claim arose from the same transactional nucleus of facts as the earlier federal claims.
- Turney alleged that John Lim (HHI executive and president of HCE) exacerbated discriminatory conditions at HCE; HHI is headquartered in Korea and has limited contacts with Arizona.
- The district court dismissed the ACRA claim as barred by res judicata and dismissed the negligence claim for lack of personal jurisdiction over HHI; the court also denied additional jurisdictional discovery.
- The Ninth Circuit affirmed both dismissals.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Turney's ACRA claim is barred by res judicata | The ACRA claim is distinct and not precluded by earlier Title VII/ADEA judgments | Prior Title VII/ADEA litigation between same parties produced final judgment on same transactional nucleus of facts | ACRA claim barred by res judicata; dismissal affirmed |
| Whether the district court had general personal jurisdiction over HHI | HHI’s relationship via Lim and corporate structure subjects it to jurisdiction in Arizona | HHI’s contacts with Arizona are too limited to approximate physical presence | No general jurisdiction over HHI; dismissal affirmed |
| Whether the district court had specific personal jurisdiction over HHI (and whether Lim’s hiring targeted Arizona) | Hiring Lim (who led HCE) created sufficient connection to Arizona to permit specific jurisdiction | HHI did not target Arizona by hiring Lim for a subsidiary based elsewhere; hiring did not create an intentional, substantial connection | No specific jurisdiction; dismissal affirmed |
| Whether denial of additional jurisdictional discovery was an abuse of discretion | More discovery would show facts supporting jurisdiction | District court reasonably denied further discovery; Turney failed to show substantial prejudice | Denial of discovery not an abuse of discretion |
Key Cases Cited
- Tritz v. U.S. Postal Serv., 721 F.3d 1133 (9th Cir. 2013) (standard of review for res judicata rulings)
- King v. Am. Family Mut. Ins. Co., 632 F.3d 570 (9th Cir. 2011) (standard of review for personal jurisdiction rulings)
- Mpoyo v. Litton Electro-Optical Sys., 430 F.3d 985 (9th Cir. 2005) (transactional nucleus of facts test for claim preclusion)
- Int'l Union of Operating Eng'rs v. Karr, 994 F.2d 1426 (9th Cir. 1993) (res judicata/transactional test authority)
- Cybersell, Inc. v. Cybersell, Inc., 130 F.3d 414 (9th Cir. 1997) (limits on personal jurisdiction under Arizona law)
- Bancroft & Masters, Inc. v. Augusta Nat'l Inc., 223 F.3d 1082 (9th Cir. 2000) (discussion of general jurisdiction and physical presence approximation)
- Daimler AG v. Bauman, 134 S. Ct. 746 (Supreme Court) (restrictive view of general jurisdiction)
- J. McIntyre Mach., Ltd. v. Nicastro, 131 S. Ct. 2780 (Supreme Court) (foreign corporation subjects itself to jurisdiction only when it targets the forum)
- Walden v. Fiore, 134 S. Ct. 1115 (Supreme Court) (requirement that defendant create a forum connection through its own activities for specific jurisdiction)
- Cornwell v. Electra Cent. Credit Union, 439 F.3d 1018 (9th Cir. 2006) (review standard for denial of jurisdictional discovery)
- Wells Fargo & Co. v. Wells Fargo Express Co., 556 F.2d 406 (9th Cir. 1977) (standard on when jurisdictional discovery should be allowed)
