Lead Opinion
Opinion by Judge BETTY B. FLETCHER; Concurrence by Judge RYMER.
This appeal presents a question that remains surprisingly unanswered by the circuit courts: Does the sale of an item via the eBay Internet auction site provide sufficient “minimum contacts” to support personal jurisdiction over a nonresident defendant in the buyer’s forum state? Plaintiff-Appellant Paul Boschetto (“Boschetto”) was the winning bidder for a 1964 Ford Galaxie sold on eBay by the DefendanL-Appellee, Jeffrey Hansing (“Hansing”) for $34,106. Boschetto arranged for the car to be shipped from Wisconsin to California, but upon arrival it failed to meet his expectations or the advertised description. Bos-chetto sued in federal court; his complaint was dismissed for lack of personal jurisdiction. We now affirm.
I. Factual Background and Procedural History
Boschetto lives in San Francisco, California.
The car was advertised for sale on the eBay Internet auction site; a copy of a portion of the eBay listing was attached to Boschetto’s complaint. Id. The eBay listing indicated that the item was located in Janesville, Wisconsin. Boschetto bid $34,106 for the Galaxie on August 8, 2005, and was notified through eBay that same day that he was the winning bidder. Id. Boschetto and Hansing communicated via email to arrange for delivery of the vehicle from Wisconsin to California. Boschetto ultimately hired a transport company to pick up the car in Wisconsin; it arrived in California on September 15, 2005. Id.
All Defendants moved to dismiss based on lack of personal jurisdiction. On July 13, 2006, the district court granted the motion. The district court reasoned that the lone jurisdictionally relevant contact with California, an eBay sale consummated with a California purchaser, was insufficient to establish jurisdiction over any of the Defendants. Although Hansing used eBay to market the automobile, the district court observed that “eBay acted not as a ‘distribution center’ but rather as a virtual forum for the exchange of goods,” and that in a standard eBay transaction — like the one at issue in this appeal — the item goes to whomever is the highest bidder, and so “the eBay seller does not purposefully avail himself of the privilege of doing business in a forum state absent some additional conduct directed at the forum state.” Id.
The district court also rejected Bosehet-to’s request to conduct additional discovery relevant to jurisdiction. Id. Noting its “broad discretion” to permit or deny such discovery, the court found that Boschetto’s request for further discovery was premised on “speculation] without any support” that the additional discovery would yield jurisdictionally relevant information. Id. Judgment was entered on July 17, 2006 and this timely appeal followed.
II. Personal Jurisdiction
We review a dismissal for lack of personal jurisdiction de novo. See Myers v. Bennett Law Offices,
When no federal statute governs personal jurisdiction, the district court applies the law of the forum state. See Panavision Int’l L.P. v. Toeppen,
A. The district court correctly dismissed Boschetto’s complaint for lack of personal jurisdiction.
We apply a three-part test to determine whether the exercise of specific jurisdiction over a nonresident defendant is appropriate:
(1) The non-resident defendant must purposefully direct his activities or consummate some transaction with the forum or resident thereof; or perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws;
(2) the claim must be one which arises out of or relates to the defendant’s forum-related activities; and
(3) the exercise of jurisdiction must comport with fair play and substantial justice, i.e. it must be reasonable.
Id. at 802 (citing Lake v. Lake,
For part one of this three-part test, we have typically analyzed cases that sound primarily in contract — as Boschet-to’s case does — under a “purposeful availment” standard. Schwarzenegger,
Here, Boschetto fails at step one of the test for specific jurisdiction, as the lone transaction for the sale of one item does not establish that the Defendants purposefully availed themselves of the privilege of doing business in California. The arrangement between Boschetto and Hansing which is, at bottom, a contract for the sale of a good, is insufficient to have created a substantial connection with California. Hansing (and assuming arguendo that they had any involvement in the transaction, the Boucher Defendants) did not create any ongoing obligations with Boschetto in California; once the car was sold the parties were to go their separate ways. Neither Boschetto’s complaint nor his affidavit in opposition to dismissal point to any continuing commitments assumed by the Defendants under the contract. Id. Nor did performance of the contract require the Defendants to engage in any substantial business in California. On Boschetto’s version of the facts, funds were sent to Wisconsin and arrangements were made to pick up the car there and have it delivered to California. This was, as the district court observed, a “one-shot affair.” See CompuServe, Inc. v. Patterson,
Ignoring the limited nature of the transaction at issue, Boschetto attaches special significance to the fact that the transaction
In Cybersell, Inc. v. Cybersell, Inc.,
The Cybersell analysis, while persuasive where the contact under consideration is the website itself, is largely inapplicable in this case. Here, eBay was used to create a listing for the sale of a good. Based on a superficial application of Cybersell, the eBay listing process and the sale it engenders is “interactive.” Id. (noting the lack of evidence suggesting that defendant’s website resulted in any business generation). But, as the district court noted, “the issue is not whether the court has personal jurisdiction over the intermediary eBay but whether it has personal jurisdiction over an individual who conducted business over eBay.” In Cybersell and related cases where the Internet site actually belongs to and is operated by the defendant, the nature of the website has jurisdictional significance because the website allows the defendant to maintain some ongoing contact with the forum state (as well as every other state that can access the site). See Zippo,
Moreover, Boschetto does not allege that any of the Defendants are using eBay to conduct business generally. He does not allege that Defendants conduct regular sales in California (or anywhere else) via eBay. Based on his own affidavit he named the Boucher Defendants based on a “good faith belief’ that Hansing may have been acting as their agent during the sale. But he does not go on to allege — on information and belief or otherwise — that either Hansing or the Boucher Defendants are
This is a distinction with a difference, as the cases that have found that jurisdiction was proper based on eBay sales relied heavily on the fact that the defendant was using the platform as a broader vehicle for commercial activity. See, e.g., Crummey v. Morgan,
At bottom, the consummation of the sale via eBay here is a distraction from the core issue: This was a one-time contract for the sale of a good that involved the forum state only because that is where the purchaser happened to reside, but otherwise created no “substantial connection” or ongoing obligations there. See McGee,
A district court’s decision to permit or deny jurisdictional discovery is reviewed for abuse of discretion. See Data Disc, Inc. v. Systems Tech. Assoc., Inc., 557 F.2d 1280, 1285 n. 1 (9th Cir. 1977). The district court’s refusal to provide such discovery, “will not be reversed except upon the clearest showing that denial of discovery results in actual and substantial prejudice to the complaining litigant. Discovery may be appropriately granted where pertinent facts bearing on the question of jurisdiction are controverted or where a more satisfactory showing of the facts is necessary.” Id. (citing Wells Fargo & Co. v. Wells Fargo Express Co.,
The district court did not abuse its discretion by denying Boschetto’s request for jurisdictional discovery. Boschetto does not allege that the Boucher Defendants’ dealership website is used to conduct sales, merely that it can be viewed by potential customers. Moreover, Boschetto does not allege that any of the Defendants made any other eBay sales or posted listings either before or after the initiation of the lawsuit. While it might be jurisdictionally relevant if Hansing or the Boucher Defendants had used eBay to conduct a significant quantity of automobile sales to California residents or in other states, neither Boschetto’s complaint nor his affidavit allege that any of the Defendants are engaged in such sales. The denial of Bos-chetto’s request for discovery, which was based on little more than a hunch that it might yield jurisdictionally relevant facts, was not an abuse of discretion. See Butcher’s Union Local No. 198 v. SDC Inn, Inc.,
III. Conclusion
The sale of one automobile via the eBay website, without more, does not provide sufficient “minimum contacts” to establish jurisdiction over a nonresident defendant in the forum state. Likewise, given the total absence of any evidence or allegations that the conduct here involved more than just this one sale, the district court did not abuse its discretion by refusing to allow jurisdictional discovery.
AFFIRMED.
Notes
. The summary of facts is taken from Bos-chetto’s complaint and his affidavit filed in opposition to the motion to dismiss. For purposes of determining whether the court has personal jurisdiction over Defendants, the court assumes Boschetto’s allegations are true. See AT & T v. Compagnie Bruxelles Lambert,
. The district court summarily, and correctly, rejected Boschetto’s contention that the Defendants could be subject to general jurisdiction in California. Boschetto does not challenge that aspect of the district court’s dismissal order on appeal.
. In Burger King the Court noted that even a "single act” by the defendant can support jurisdiction, but only if that act creates a "substantial connection” with the forum.
. Under a traditional jurisdictional analysis, advertising in a forum state does not typically suffice to establish personal jurisdiction. See Wood v. Santa Barbara Chamber of Commerce,
. It is for this reason that Boschetto's reliance on Stomp, Inc. v. NeatO LLC,
. We note that our affirmance of the district court’s dismissal is in-line with a number of state court decisions that have addressed whether personal jurisdiction can be established by way of a single eBay transaction with a forum plaintiff. See e.g., Sayeedi v. Walser,
Concurrence Opinion
concurring:
I agree that jurisdiction is lacking. I write separately to underscore my disagreement with Boschetto’s argument that Hansing, as a seller on eBay, necessarily availed himself of the privilege of doing business in each state across the nation. I believe that a defendant does not establish minimum contacts nationwide by fisting an item for sale on eBay; rather, he must do “something more,” such as individually targeting residents of a particular state, to be haled into another jurisdiction.
The basic principles are well settled. Personal jurisdiction is proper if it is consistent with the forum state’s long-arm
This circuit applies a three-part test to determine whether a plaintiff has demonstrated sufficient minimum contacts to establish specific jurisdiction over a defendant. Minimum contacts are found where:
(1) the defendant has performed some act or consummated some transaction within the forum or otherwise purposefully availed himself of the privileges of conducting activities in the forum, (2) the claim arises out of or results from the defendant’s forum related activities, and (3) the exercise of jurisdiction is reasonable.
Id. at 1155 (citing Bancroft & Masters, Inc. v. Augusta Nat’l Inc.,
The “purposeful availment” requirement ensures that a defendant will not be haled into a jurisdiction solely as a result of “random,” “fortuitous,” or “attenuated” contacts. Burger King Corp. v. Rudzewicz,
A defendant “purposefully avails” himself of a forum when he acts in a way that creates a “substantial connection” with the state, Burger King,
A defendant “purposefully directs” activity at a forum state when he: (1) commits an intentional act, that is (2) expressly aimed at the forum state, and that (3) causes harm that he knows is likely to be suffered in that jurisdiction. See Schwarzenegger,
In my view, Hansing did not purposefully avail himself of California. Hansing
I also do not think that Hansing purposefully directed any activity at California. Boschetto argues that Hansing directed his eBay auction at the state by failing to bar Californians from bidding. By accepting bids from all states, he contends, Hansing offered to sell the subject vehicle to residents of each state of the union, including California. I disagree that allowing eBay users throughout the United States and Canada to bid on an auction subjects the seller to nationwide jurisdiction. As we have previously held, merely advertising over the Internet is not sufficient to confer jurisdiction throughout the United States, even though the advertisement or website at issue may be viewed nationwide. Pebble Beach Co.,
Accordingly, although Hansing listed his car for sale in an unrestricted eBay auction, allowing residents of all states to view the auction and bid, and though he ultimately sold the car to a California resident, he neither availed himself of the privilege of doing business in California nor purposefully directed any activity at the state.
I agree that the district court did not abuse its discretion by denying Boschetto jurisdictional discovery. Where, as here, a plaintiffs claim of personal jurisdiction is both attenuated and based on bare allegations rebutted by specific denials made by the defendants, the district court need not permit even limited discovery. Pebble Beach Co.,
. There is no basis for concluding that Hans-ing is engaged in extensive business activity on the Internet, with California or any other forum. See Cybersell, Inc. v. Cybersell, Inc.,
. Boschetto argues that Hansing should not be allowed to take advantage of modern technology while simultaneously escaping traditional notions of jurisdiction. However, we rejected this precise argument in Cybersell,
.See also Rio Properties, Inc. v. Rio Int’l Interlink,
. Even if Hansing knew Boschetto was in California when he sent the post-auction email, the email was not sufficient to subject him to personal jurisdiction there. It established only a limited contact, and Hansing sent it because Boschetto won the auction, not because he was in California. See Burger King Corp.,
. Nor did Hansing purposefully avail himself of the benefits and protections of California by allowing Californians to bid. His auction did not create a substantial connection with the forum, and nothing in the record indicates that it made any difference to Hansing where the winning bidder resided (within the United States or Canada) or where he took the car when it left Wisconsin. World-Wide Volkswagen,
.This is consistent with the approach of the majority of courts to address whether listing an item for nationwide sale on eBay requires a seller to submit to suit nationwide. See e.g. Winfield Collection, Ltd. v. McCauley,
