MEMORANDUM AND ORDER
This matter is before the Court on Defendants’ Motion to Dismiss for Lack of
Background
This action arises out of an intellectual property dispute. Plaintiffs Clockwork IP, LLC (“Clockwork”), AirTime, LLC (“AirTime”), and Aquila Investment Group, LLC (“Aquila”) (collectively “Plaintiffs”) bring this action against two Canadian companies, Defendants Clearview Plumbing & Heating LTD (“Clearview”) and Giraffe Corporation (“Giraffe”), for trademark infringement under 15 U.S.C. § 1114 (Count I), unfair competition under 15 U.S.C. § 1125(a) (Count II), conversion (Count III), fraudulent inducement (Count IV), and tortious interference with a business expectancy (Count V).
Clockwork is a Delaware limited liability company with its principal place of business in Sarasota, Florida. (Complaint (“Compl.”), Doc. No. 1 at ¶ 3) Clockwork is the intellectual property holding subsidiary of Clockwork, Inc., d/b/a Clockwork Home Services, under three principle brаnd names: Benjamin Franklin the Punctual Plumber®, One Hour Heating & Air Conditioning® and Mr. Sparky®. (Id. at ¶¶ 1, 19) Clockwork Home provides plumbing, heating and air conditioning, and electrical services in North America. (Id. at ¶ 1) Aquila is an Illinois limited liability company d/b/a Success Group International (“SGI”), with its principal place of business in Sarasota, Florida. (Id. at ¶ 5) SGI offers business services to contractors who do not want to become franchisees. Instead, these contractors become SGI Affinity Group members and receive the same business process tools and technical training as franchisees without relinquishing their name and brand identity. (Doc. No. 22 at ¶ 6) AirTime is a Missouri limited liability company with its principal place of business in Sarasota, Florida. At all relevant times, AirTime operated the SGI Affinity Group.
According to Plaintiffs, this dispute arises from Defendants’ activities with SGI. (Doc. No. 26 at 2) Plaintiffs allege that Defendants’ first identified interaction with AirTime and SGI occurred around 2000 when Clearview’s principal, Kyle Lumsden, attended an event hosted by SGI in New Jersey where Clockwork Home announced its franchise branding for THE PUNCTUAL PLUMBER. (Compl. at ¶¶ 11, 33) Sometime thereafter, Clearview misappropriated and adopted THE PUNCTUAL PLUMBER marks for itself. (Id. at ¶ 34) Plaintiffs further allege that sometime in 2008, Clearview targeted their Tech Seal Program and misappropriated their TECH SEAL mark. (Id. at ¶¶ 38-40)
From March 2011 until May 2013, Clear-view was a member of SGI’s licensed Canadian affiliate, SGI Canada. As a member of SGI Canada, Clearview had the opportunity to license Clockwork trademarks for use in its business. (Id. at ¶¶ 12, 30)
In October 2011, Clearview was offered three licensing agreements for AirTime marks; the marks offered were WE FIX IT OR IT’S FREE; GREEN SCREENED; and the TECH SEAL mark. (Id. at ¶ 41) Clearview executed license agreements for the marks WE FIX IT OR IT’S FREE and GREEN
Defendants move to dismiss the complaint for lack of personal jurisdiction pursuant to Fed.R.Civ.P. 12(b)(2). Defendants argue they have not trаnsacted business in Missouri, made any contracts in Missouri, or committed any tortious acts in Missouri. Even if they had engaged in such activities, Defendants argue they lack sufficient minimum contacts with Missouri to satisfy due process. (Doc. No. 22 at 2) The principal of Clearview, Kyle Lumsden, and the principal of Giraffe, Melanie Lumsden, have filed declarations in support of these arguments. (Doc. Nos. 22-1, 21-2) In response, Plaintiffs argue that because Defendants directed their tortious conduct, in part, at a Missouri company, and otherwise have the requisite minimum contacts to support jurisdiction in Missouri and the United States, their motion should be denied. (Doc. No. 26 at 6-7)
Legal standard
To survive a motion to dismiss for lack of personal jurisdiction, a plaintiff must make a prima facie showing of personal jurisdiction by pleading facts sufficient to support a “reasonable inference that the defendant] can be subjected to jurisdiction within the state.” K-V Pharm. Co. v. J. Uriach & CIA, S.A.,
Discussion
A federal court may assume jurisdiction over a nonresident defendant only to the extent permitted by the forum state’s long-arm statute and the Due Process Clause of the Constitution. Dakota Industries, Inc. v. Ever Best Ltd.,
Due process requires a defendant have certain minimum contacts with the forum state suсh that the maintenance of the suit does not offend “traditional notions of fair play and substantial justice.” See Myers v. Casino Queen, Inc.,
The Eighth Circuit has established a five factor test to determine whether a defendant’s contacts with the forum state are sufficient to establish personal jurisdiction over the defendant: “(1) the nature and quality of the contacts with the forum state; (2) the quantity of the contacts; (3) the relationship of the cause of action to the contacts; (4) the interest of the forum state in providing a forum for its residents; and (5) the conveniencе or inconvenience to the parties.” Dairy Farmers,
The Supreme Court recognizes two categories of personal 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,
Once the court has found the requisite minimum contacts, it must still determine whether the exercise of jurisdiction comports with “fair play and substantial justice.” Int’l Shoe,
Plaintiffs do not allege Defendants had any actual contacts with Missouri. Rather, Plaintiffs’ assertion of personal jurisdiction is based on the effects of Defendants’ extraterritorial actionsin Missouri. Missouri’s long-arm statute covers extraterritorial tortious acts producing actionable consequences in Missouri. N.C.C. Motorsports, Inc. v. K-VA-T Food Stores, Inc., 975 F.Supp.2d 993, 998 (E.D.Mo.2013) (quoting TLC Vision (USA) Corp. v. Freeman,
The Eighth Circuit “construe[s] the Calder effects test narrowly, and hold[s] that, absent additional contacts, mere effects in the forum state are insufficient to confer personal jurisdiction.” Furminator, Inc. v. Wahba,
Defendants have no other contacts with Missouri to support the exercise of specific jurisdiction. Clearview asserts, and Plaintiffs do not dispute, that Clearview has never performed services, employed any persons, maintained any offices or contracted with any party in the state. Clear-view is not registered as a foreign entity, nor is it licensed to do business in the state of Missouri. It has no agents or shareholders in Missouri. It does not have a registered agent for service in Missouri. Clearview does not maintain any physical presence in Missouri, does not operate or own facilities in Missouri, does not own or lease real estate in Missouri, and does not have a Missouri mailing address, telephone number or bank account.
Further, there is no evidence that Defendants directly targeted any action at Missouri, knowing it would be felt here. Unlike in K-V Pharm.,
Accordingly, the Court finds Clearview’s contacts with Missouri are insufficient for this Court to exercise specific jurisdiction. The limited contact Clearview has with Missouri, based solely on the impact of its alleged tortious activity, is so attenuated that the mаintenance of a suit would offend traditional notions of fair play and substantial justice. Peabody Holding Co.,
General jurisdiction
A court may assert general jurisdiction over foreign corporations only if they have developed “continuous and systematic” general business contacts with the forum state, rendering them essentially at home in the forum state. Viasystems, Inc.,
Defendants dispute these alleged contacts; however, even after resolving all factual conflicts in Plaintiffs’ favor, the Court finds these are not the type of systemic and continuous general business contacts that would make a company “at home” here. With regard to Clearview’s attendance at two SGI events, Defendants cite to Holland America Line Inc. v. Wartsila North America, Inc.,
With regard to the two license agreements entered into between Clearview and AirTime in 2011 and terminated in 2013, evidence of a single and/or short-term contractual relationship does not rise to the level of “continuous and systematic” contact necessary to establish general personal jurisdiction. Saudi v. Northrop Grumman Corp.,
Further, the mere operation of a web site, without “something more,” is clearly insufficient as a basis for exercising personal jurisdiction. Uncle Sam’s Safari Outfitters, Inc. v. Uncle Sam’s Army Navy Outfitters-Manhattan, Inc.,
In cases of interactive websites, the exercise of jurisdiction is determined by examining the level of interactivity and commercial nature of the exchange of information that occurs on the site. Id. Although available to internet users in Missouri, Clearview’s website is not clearly directed at Missouri residents. Plaintiffs have no evidence of anyone from Missouri accessing the site or of any business being done over the Internet. See Enterprise Rent-A-Car Co. v. Stowell,
Beyond the passive operation of a website, Plаintiffs fail to allege Defendants are present and conducting business in Missouri, or otherwise possess sufficient contacts to establish general jurisdiction. Defendants have no agents, representatives, employees, or offices in Missouri. They have not sold any products or services to anyone located in Missouri. They have never advertised or marketed here directly. Defendants maintain no bank accounts or credit lines here and own no real property in Missouri. As in the above-cited cases, Clearview cannot be said to have purposely availed itself of the privilege of conducting business in Missouri and thus cannot reasonably be expected to be subject to the general jurisdiction of Missouri courts.
Federal long arm statute
Alternatively, Plaintiffs argue jurisdiction is proper under the federal long arm statute, Fed.R.Civ.P. 4(k)(2). (Doc. No. 26 at 8-11) Rule 4(k)(2) of the Federal Rules of Civil Procedure permits a federal court to exercise personal jurisdiction over a foreign defendant for (1) a claim arising under federal law, (2) where a summons has been served, (3) if the defendant is not subject to the jurisdiction of any single state court, and (4) provided the exercise of federal jurisdiction is consistent with the Constitution and laws of the United States. Fed.R.Civ.P. 4(k)(2); Mwani v. bin Laden,
Plaintiffs rely on their previous arguments to support jurisdiction under Rule 4(k)(2), namely that Defendants established continuous and systematic contacts •with SGI, attending conferences, availing itself of resources and training, and licensing trademarks. (Doc. No. 26 at 10) Plaintiffs do not raise any new arguments, or assert that Defendants had other contacts with the United States as a whole. For
Alter ego/ageney
Plaintiffs do not allege Giraffe had any direct contacts with Missouri, or anywhere else within the United States. Instead, they argue jurisdiction is proper over Giraffe as the alter ego of Clearview or through agency. (Doc. No. 26 at 11-13) Jurisdiction over a parent corporation may be prоper if the record shows “the parent dictates every facet of the subsidiary’s business — from broad policy decisions to routine matters of day-to-day operation.” In re Genetically Modified Rice Litigation,
Plaintiffs allege Giraffe is, “ostensibly the owner of the trademarks that are subject to this dispute and licenses them to Clearview for the uses that are the subject of this dispute.” Plaintiffs further allege Giraffe is, upon information and belief, entirely owned and controlled by Clearview and/or Clearview’s principals.” (Compl. at ¶ 16) Giraffe disputes this statement, stating “[njeither Clearview Plumbing & Hearing, [sic] Ltd. (‘Clearview5) nor its principals have any ownership or controlling interest in Giraffe.” (M. Lumsden Aff. at ¶ 7) Instead, Defendants state that Melanie Lumsden owns Giraffe and is “responsible for overseeing the day-to-day operations of the company and for maintaining its business records.” (Id. at ¶2) Whether or not this is true, Giraffe would only be subject to the Court’s jurisdiction as an alter ego of Clearview if Clearview were first found to be subject to this Court’s-jurisdiction. (Doc. No. 29 at 11) As discussed above, the Court has found it is not. For this reason, the Court finds Defendants’ argument unpersuasive.
Jurisdictional discovery
Plaintiffs request an opportunity to conduct jurisdictional discovery to examine the contacts between Defendants and Clockwork Home’s U.S.-based franchisees and potential franchisees under the PUNCTUAL PLUMBER Marks as well as the participation of Defendants’ principals and employees in SGI events and activities across the country. Plaintiffs assert that jurisdictional discovery would also be appropriate on the issue of alter ego and the relationship between Clear-view and Giraffe. (Doc. No. 26 at 13-14) “The decision whether to grant jurisdictional discovery in a case is left to the trial court’s sound discretion.” Osborn & Barr Commc’ns, Inc. v. EMC Corp.,
Conclusion
For these reasons, the Court finds Plaintiffs have failed to allege minimum contacts sufficient to permit this Court to exercise personal jurisdiction over Defendants in accordance with due process. The Court concludes it lacks personal jurisdiction over Defendants and that jurisdictional discovery is not appropriate in this case. Therefore, Defendants’ motion to dismiss will be granted and Plaintiffs’ claims dismissed without prejudice.
IT IS HEREBY ORDERED that Defendants’ Motion to Dismiss for Lack of Personal Jurisdiction [21] is GRANTED.
A separate Order of Dismissal will accompany this Memorandum and Order.
Notes
. Aquila purchased SGI’s assets and business on March 11, 2014. (Compl. at ¶ 6)
. Plaintiffs are not asserting jurisdiction over Defendants based on the forum selection clause in the license agreements. (Doc. No. 26 at 6-7)
. As an alternative to their jurisdictional arguments, Plaintiffs request the Court transfer this matter to the Middle District of Florida, where all of them have their principal place
