Clarence BELL, Jr., et al., Plaintiffs,
v.
IMPERIAL PALACE HOTEL/CASINO, INC., Defendant.
United States District Court, E.D. Missouri, Eastern Division.
*1083 *1084 Donna M. Anderson, Anderson and Gehres, St. Louis, MO, for plaintiffs.
Daniel T. Rabbitt, Rabbitt and Pitzer, St. Louis, MO, for defendant.
ORDER
FLEISSIG, United States Magistrate Judge.
Plaintiffs Clarence and Debra Bell, husband and wife, filed a personal injury suit against the Imperial Palace Hotel and Casino ("Imperial Palace"), alleging one count of negligence and one count of loss of consortium related to a fall that plaintiff Clarence Bell suffered while the plaintiffs were guests at the defendant's hotel located in Las Vegas, Nevada. Defendant moves to dismiss under Rule 12(b)(2) of the Federal Rulеs of Civil Procedure, for lack of personal jurisdiction, claiming that there are not sufficient minimum contacts with the State of Missouri, and under Rule 12(b)(5) for insufficiency of process.[1] Plaintiffs oppose defendant's motions and request, in the alternative, that the Court transfer the case to a district in which it could have originally been brought.
Personal Jurisdiction
The facts relevant to the motion to dismiss for lack of personal jurisdiction are not in dispute. The plaintiffs, Clarence and Debra Bell, are residents of Missouri. The defendant is a Nevada corporation, with its principаl place of business in the State of Nevada. In June of 2000, both plaintiffs were guests at the Imperial Palace, a hotel and casino owned and operated by the defendant located in Las Vegas, Nevada. In the complaint, Plaintiff Clarence Bell alleges that he slipped and fell in a puddle of water on the hotel premises thereby sustaining injuries to his body, including his back and hip. Plaintiff Debra Bell asserts a claim for loss of consortium arising from the injuries allegedly sustained from the same incident.
The defendant has asserted, by way of an uncontroverted affidavit,[2] that it does not maintain any agents, offices, bank accounts, or telephone numbers in the State of Missouri. It does not own, use, or possess any real or tangible personal property in Missouri. Furthermore, it has not entered into any contracts to perform services or furnish materials and does not *1085 directly advertise or solicit business in this forum state.
Although the cause of action arose in Nevada, as grounds for personal jurisdiction in Missouri, plaintiffs allege that the defendant "solicited business in the State of Missouri," Complaint at ¶ 3. Plaintiffs base their allegations solely on the faсt that the defendant maintains an internet website containing information regarding the Imperial Palace. Plaintiffs assert, and the defendant does not dispute, that the website offers information about the hotel and casino and allows visitors of the site to make online hotel reservations with the submission of credit card information. The site also advertises a toll-free number that may be used to make room reservations. The plaintiffs do not claim they used the website to make their hotel reservations; plaintiffs used a travel agent, who was not affiliated with the defendant, to obtain a room reservation at the Imperial Palace. Nor do plaintiffs suggest that they visited or used the website prior to their visit to defendant's hotel. Plaintiffs assert that the maintenance of this website constitutes the "transaction of business" in the State of Missouri, citing to the first subsection of Missouri's long-arm statute, Mo.Rev.Stat. § 506.500.1(1).[3]
The question before the Court, therefore, is whether the maintenance of an internet website that allows visitors to the site to make hotel room reservations alone constitutes sufficient contact with Missouri to subjеct the defendant to personal jurisdiction in this Court for an alleged tort that occurred in Nevada. The Court finds that it does not.
Discussion
Rule 12(b)(2) of the Federal Rules of Civil Procedure permits dismissal or transfer of a claim that is lacking personal jurisdiction. In a diversity action where personal jurisdiction is challenged, the Court must first determine if the state's long-arm statute is satisfied and, if so, must then determine if the exercise of that statute comports with the Due Process Clause of the Fourteenth Amendment. Digi-Tel Holdings, Inc. v. Proteq Telecomms., Ltd.,
When personal jurisdiction is challenged, the burden rests with the plaintiff to show that the exercise of jurisdiction is appropriate. Burlington Indus., Inc. v. Maples Indus., Inc.,
To satisfy due process, a plaintiff must show thаt there are "minimum contacts" between the forum state and the defendant. International Shoe Co. v. Washington,
Here, both parties correctly rely upon the five-factor test recited in Burlington Indus., Inc. v. Maples Indus., Inc.,
The Supreme Court has recognized two categories of in personam jurisdiction. Specific jurisdiction exists when the nonresident defendant has sufficient contact with the forum state and the cause of action arises out of or relates to that contact. Helicopteros Nacionales de Colombia, S.A. v. Hall,
While both specific and general jurisdiction must satisfy the requirements of Due Process, general jurisdiction requires a higher level of contacts with the forum state. Helicopteros, 466 U.S. at *1087 417,
A. Specific Jurisdiction
The necessary showing for specific jurisdiction is less than what is required for general jurisdiction. Where specific jurisdiction is asserted, due process is normally satisfied where the defendant purposely directed its activities at the forum, and the controversy arises out of or relates to that activity. Burlington,
Looking at the first Burlington factor, plaintiffs here rely on the fact that Imperial Palace maintains a website that is accessible by Missouri residents and permits them to make reservations to stay at the hotel in Las Vegas. Specifically, plaintiffs assert that the exercise of personal jurisdiction is appropriate because Imperial Palace's site is an "interactive" website, as first defined in Zippo Manufacturing Co. v. Zippo Dot Com, Inc.,
The Zippo framеwork is a continuum, and applying this sliding scale, the Court finds that the website in question is neither entirely passive nor squarely interactive. The defendant is not simply posting information on its website, but due to the nature of the hotel business, it is not completing transactions over the internet either. This case falls somewhere in the middle, which requires an examination of "the level of interactivity and commercial nature" of the website. Zippo Mfg. Co.,
Although reservations can be made over the internet, this case is clearly distinguishable from those where goods may be ordered over the internet. See, e.g., American Eyewear, Inc. v. Peeper's Sunglasses and Accessories, Inc.,
In addition to the website, there has been no evidence offered to suggest that Imperial Palace has directly advertised or solicited business in Missouri. See, e.g., CoolSavings.com, Inc. v. IQ. Commerce Corp.,
Looking to the second Burlington factor, the plaintiffs have offered no evidence whatsoever of any use of the website by Missouri residents. Other than stating that the website "allows" residents of the forum state to enter into agreements to acquire hotel accommodations, the plaintiffs hаve not alleged or provided any evidence that residents of Missouri have indeed made such arrangements via the internet. More importantly, the plaintiffs themselves do not maintain that they have used the website.
The central reason why plaintiffs fail to establish the necessary minimum contacts for specific jurisdiction, however, is because they have failed to demonstrate that their cause of action has any relation to Imperial Palace's "contacts" with Missouri. From the record before the Court, the defendant's only contact with Missouri is a website that is accessible to residents in Missouri. The subject matter of plaintiff's suit is a slip and fall accident that occurred on the hotel premises in Las Vegas. That event is entirely unrelated to the defendant's website. While the Court is not suggesting that these facts would necessarily change the analysis, the plaintiffs do not maintain that they used the website to make reservations with the Imperial Palace, that their travel agent used the website to secure their reservations, or that they were enticed by the website to visit the Imperial Palaсe. In fact, they do not claim to have ever viewed the website prior to their visit to the defendant's hotel. The Court can see no causal link or relationship between Mr. Bell's accident and the sole forum contact by Imperial Palace, its website. Without such a connection, specific personal jurisdiction does not exist. Burger King Corp. v. Rudzewicz,
In "minimum contacts" analysis, the remaining two factors, the interest of the forum state and the convenience of the parties, are generally accorded less weight. Burlington,
Nor does convenience of the parties weigh toward jurisdiction in this forum. The accident occurred only as a result of the plaintiffs' election to visit Nevada. Defendant resides in Nevada, and presumably most non-party witnesses reside there as well. At best, both parties are equally inconvenienced whether the forum is in Nevada or Missouri.
Weighing all five factors, the Court finds the requisite minimum contacts necessary to satisfy due process for specific personal jurisdiction аre not present. This result is consistent with recent cases from this District have considered the imposition of specific personal jurisdiction based solely on the existence of an internet website. See Enterprise Rent-A-Car,
The internet cases plaintiffs cite in their opposition memorandum are distinguishable from the case at hand, because in each instance the cause of action arose out of or was relatеd to the defendant's internet website. See CompuServe, Inc. v. Patterson,
To support specific personal jurisdiction, it is not enough for plaintiffs simply to allege the existence of an "interactive" website. The nature of the website, its use in the forum, and the relation of that use to the litigation are critical in assessing personal jurisdiction. The plaintiffs have not satisfied any of the Burlington factors and, therefore, have not shown the minimum contacts necessary for specific personal jurisdiction in this forum.
B. General Jurisdiction
Even though the present cause of action does not arise from the defendant's website, the Court may still exercise general personal jurisdiction over the defendant if the defendant has maintained "continuous and systematic contacts" with the forum state. Helicopteros Nacionales de Colombia, S.A. v. Hall,
Considering that the consequences of general jurisdiction are so significantthe party may be hauled into the forum state to defend any cause of actionthe bar to show minimum contacts is set even higher than that required for specific jurisdiction. The courts are reluctant to assert general jurisdiction, and the Supreme Court has upheld a finding of general jurisdiction only once. Perkins,
In Perkins, the nonresident defendant was a Philippine corporation that maintained an office in the forum state in which the president and general manager conducted their wartime business. Id. at 438,
In the present action, the plaintiffs have failed to meet their burden. As set forth above, Imperial Palace does not maintain any agents, offices, bank accounts, or telephone numbers in the State of Missouri; does not own, use, or possess any real or tangible personal property in Missouri; has not entered into any contracts to perform services or furnish materials here; and does not directly advertise or solicit business in this forum state. Defendant's maintenance of an "interactive" website for reservations, the sole factor upon which plaintiffs rely, is not enough to subject defendant to suit in every forum on every ground. Such a conclusion would turn the notion of federal personal jurisdiction on its head, eliminating the protections that jurisdictional requirements were designed to safeguard. International Shoe Co. v. Washington,
This theory simply cannot hold water. Indeed, under this view, personal jurisdiction in [i]nternet-related cases would almost always be found in any forum in the country. We do not believe that the advent of advanced technology, say, as with the [i]nternet, should vitiate long-held and inviolate principles of federal court jurisdiction. The Due Process Clause exists, in рart, to give "a degree of predictability to the legal system that allows potential defendants to structure their primary conduct with some minimum assurance as to where that conduct will and will not render them liable to suit." World-Wide Volkswagen Corp.,444 U.S. at 297 ,100 S.Ct. 559 . In the context of the [i]nternet, [the plaintiff]'s expansive theory of personal jurisdiction would shred these constitutional assurances out of practical existence. Our sister circuits have not accepted such an approach, and neither shall we.
GTE New Media Servs. Inc. v. BellSouth Corp.,
The advent of e-commerce presents unique challenges to the traditional analysis of jurisdictional contacts for general jurisdiction. Unlike most media, an internet website requires little expenditure of resources, it is directly targeted to any particular group of individuals or geographic area, persons through their own impetus must seek out the site, and yet a website has the potential to reach millions throughout the country and even the world. With seemingly inconsequential effort, and without any contacts directed toward any particular forum, the medium could subject persons or companies who maintain websites to personal jurisdiction in every forum. With this background in mind, the Court proceeds cautiously in its analysis of general jurisdiction in the internet setting.
The analysis cannot begin and end with the "active" and "passive" labels. While the sliding scale suggested by the court in Zippo may be a relevant factor in assessing general jurisdiction,[6] it is not alone determinative. The fact that a site is classified as "interactive" is irrelevant to the analysis of general jurisdiction if no one from the forum state has ever used the *1092 site. See Coastal Video Communications, Corp. v. Staywell Corp.,
Neither party in this case has even alluded to use of the Imperial Palace wеbsite by residents of Missouri. Nor have the plaintiffs endeavored to show by inference that residents of Missouri are using the site by, for example, showing that the site is targeted to users from Missouri. See Sports Authority Mich., Inc.,
Service of Process
Defendant also moves to dismiss under Rule 12(b)(5), F.R.Civ.P., for insufficiency of service of process. Defendant argues that service of process was improper in that it did not receive a Notice and Request for Waiver. Under Rule 4(d), F.R.Civ.P., a Notice and Request for Waiver is only necessary when service is effected by mail; it is not necessary when personal service is made to the defendant's place оf business. In its opposition brief, the plaintiffs provided convincing evidence that service was made in person to Imperial Palace's place of business. See Plaintiffs' Exh. 2, (Return of Service, signed by the process server). The defendant made no response in its reply. The Court therefore finds no deficiency of service, and defendant's motion to dismiss for insufficiency of service is denied.
Conclusion
Plaintiffs have requested, in the alternative, that the Court transfer the case to a district in which it could have been originally brought. Section 1631 of 28 U.S.C. provides that "[w]henever ... [a] court finds that there is a want of jurisdiction, the court shall, if it is in the interest of justice, transfer such action or appeal to any other such court in which the action or appeal could have been brought at the time it was filed...." The Court finds that in the interest of justice and efficiency, it is appropriate to transfer this case to the District of Nevada, where the defendant resides and the alleged tort transpired.
Accordingly,
IT IS HEREBY ORDERED that Defendant's Motion to Dismiss for insufficiency of service (Docket #6) is DENIED.
IT IS FURTHER ORDERED that Defendant's Motion to Dismiss for lack of personal jurisdictiоn (Docket #6) is GRANTED.
IT IS FURTHER ORDERED that pursuant to 28 U.S.C. § 1631, the Clerk of Court is directed to transfer this action to the United States District Court for the District of Nevada.
NOTES
Notes
[1] The parties have consented to the exercise of authority by the undersigned United States Magistrate Judge under 28 U.S.C. § 636(c).
[2] "[W]hen a question of the District Court's jurisdiction is raised, either by a party or by the court on its own motion, the court may inquire, by affidavit or otherwise, into the facts as they exist." Stevens v. Redwing,
[3] Missouri's long-arm statute, Mo.Rev.Stat. § 506.500, in material part provides as follows:
Any person or firm whether or not a citizen or resident of this state, or any corporation, who in person or through an agent does any of the acts enumerated in this section, thereby submits such person, firm, or corporation, and, if an individual, his personal representative, to the jurisdiction of the courts of this state as to any cause of action arising from the doing of any of such acts: (1) The transaction of any business within this state;....
[4] The five factor test cited in Burlington was expressed in earlier cases, as well. See, e.g., Bell v. U.S. Kids,
[5] The present case is distinguishable from Maritz v. Cybergold, Inc.,
[6] Most internet cases addressing personal jurisdiction, including Zippo itself, are trademark or copyright infringement disputes involving the content of a website. See, e.g., Uncle Sam's Safari Outfitters, Inc.,
