Lead Opinion
Wе are called upon to decide whether a federal district court in California should exercise personal jurisdiction over four doctors in Sweden who allegedly defamed a California corporation in articles published in international medical journals.
I
Until very recently, Core-Vent was a California corporation with its headquarters in Encino.
Branemark, Albrektsson, and Lekholm are professors at the University of Gothenburg in Gothenburg, Sweden. Sennerby is a doctoral candidate at the University of Gothen-burg. (We will refer to the appellees collectively as “the Swedish doctors.”) All are Swedish citizens and none has visited the United States, or, in particular, California more thаn a few times on random occasions. Branemark visited California most extensively of the four and is alleged to have visited only five times in the last four years. Brane-mark is a director of Nobelpharma, and also directs a research institute at the University that is allegedly financed by Nobelpharma. Albrektsson, Lekholm, and Sennerby work at the institute, and are alleged to be paid
Core-Vent brought suit against Nobelp-harma, three individual American citizens, and five Swedish citizens, including the four Swedish doctors. In addition to various claims against the defendants that are not parties to this appeal, Core-Vent brought antitrust claims against Branemark and libel claims against Albrektsson, Lekholm, and Sennerby. The Swedish doctors moved to dismiss the claims against them for lack of personal jurisdiction. The district court granted the motion. Final judgment was entered pursuant to Federal Rule of Civil Procedure 54(b). Core-Vent appeals.
II
As a preliminary matter, we must consider the Swedish doctors’ argument that the district court abused its discretion in granting Core-Vent’s motion for the entry of final judgment.
Rule 54(b) of the Federal Rules of Civil Procedure provides in relеvant part:
When more than one claim is presented in an action ... or when multiple parties are involved, the court may direct the entry of a final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reason for delay and upon an express direction for the entry of judgment.
(Emphasis added.) Here, the district court expressly determined that there was no just reason for delay because the jurisdictional claims were easily severable from the merits of the lawsuit. The court also concluded that allowing for immediate appeal would serve the efficient administration of justice.
In Texaco, Inc. v. Ponsoldt,
We are satisfied that dealing with the jurisdictional issue now may obviate the need for a second trial, and thus aids expeditious decision of the case. The jurisdictional question at issue here is unrelated to the other issues in the case; thus, entry of final judgment will not lead to undesirable “piecemeal appeals.” In short, the district court did not abuse its discretion in granting Core-Vent’s motion under Rule 54(b).
Ill
The district court dismissed the claims against the Swedish doctors, concluding that it lacked personal jurisdiction over them.
Where, as here, there is no applicable federal statute governing personal jurisdiction, the law of the state in which the district court sits applies. See Hylwa, M.D., Inc. v. Palka,
“[D]ue process requires only that in order to subject a defendant to a judgment in personam, if he be not present within the territory of the forum, he have certain minimum contacts with it such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” International Shoe Co. v. Washington,
(1) The nonresident 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.
Lake v. Lake,
A
“The first step of the specific jurisdiction analysis involves a qualitative evaluation of the defendant’s contact with the forum state,” Lake,
Core-Vent claims that the Swedish doctors’ contacts with California are analogous to those of the individual defendants in Calder. The plaintiff in Calder was an entertainer who lived and worked in California. She brought suit there, claiming that she had been libeled by an article written in Florida and published in the National Enquirer, a newspaper published in Florida with a large circulation in California. Two of the defendants in the ease, the editor of the paper and the reporter who wrote the story, moved for dismissal for lack of personal jurisdiction on the ground that they lacked physical contacts with California. Calder,
The Court concluded that because “California [was] the focal point both of the story and of the harm suffered,” id. at 789,
Calder thus established that personal jurisdiction can be predicated on (1) intentional actions (2) expressly aimed at the forum state (3) causing harm, the brunt of which is suffered — and which the defendant knows is likely to be suffered — in the forum state.
Whether the conduct in this case meets the Calder effects test is a close question. Core-Vent suggests that Calder is precisely analogous to the situation here. We are unpersuaded. First, we cannot conclude by analogy to Calder alone that the acts in question here were “expressly directed” at California. While in Calder the events underlying the libelous story occurred in California and the story was researched through California sources, here the libel concerned a product that was distributed worldwide. It has not been alleged that the product reached the doctors other than through the stream of commerce. Unlike in Calder, therefore, the articles cannot be seen as a comment on a California event. Moreover, while any article written in the National Enquirer might well be directed at a California audience, here, by contrast, although the medical journals were circulated worldwide, it has not been alleged that California was a primary audience for the medical journals or that the defendants knew that the journals would be circulated in that state.
Second, unlike in Calder, it is unclear whether the brunt of the harm was suffered in California. Calder involved a libel against an individual; this case involves a libel against a corporation. A corporation does not suffer harm in a particular geographic location in the same sense that an individual does. We concluded in Dillon that the harm from an allegedly libelous statement is not necessarily suffered in the place оf incorporation. Dillon,
Nor does Calder preclude us from deciding that the harm was suffered in California. The Swedish doctors argue that acts intended to harm a corporation cannot be said to be directed at any particular geographic lоcation, and thus Calder does not apply to any case in which the plaintiff is a corporation. We must reject this contention. Such a categorical approach is antithetical to Calder’s admonishment that the personal jurisdiction inquiry cannot be answered through the application of a mechanical test but instead must focus on the relationship among the defendant, the forum, and the litigation within the particular factual context of each ease. Calder,
Here, there are powerful arguments on both sides. Unlike the corporation in Dillon, Core-Vent’s principal place of business was in the forum state and thus any economic effects were arguably ultimately felt there. On the other hand, the brunt of the harm was perhaps felt most strongly where the libelous statements affected business most significantly. Core-Vent does not allege that this effect was felt most significantly in California. “Though neither side decisively triumphs under this analysis,” Roth v. Garcia Marquez,
B
“Once it has been deсided that a defendant purposefully established minimum contacts within the forum State, these contacts may be considered in light of other factors to determine whether the assertion of personal jurisdiction would comport with ‘fair play and substantial justice.’ ” Burger King Corp. v. Rudzewicz,
In determining whether the exercise of jurisdiction over a nonresident defendant comports with “fair play and substantial justice,” we must consider seven factors: (1) the extent of the defendants’ purposeful interjection into the forum state’s affairs; (2) the burden on the defendant of defending in the forum; (3) the extent of conflict with the sovereignty of the defendants’ state; (4) the forum state’s interest in adjudicating the dispute; (5) the most efficient judicial resolution of the controversy; (6) the importance of the forum to the plaintiffs interest in convenient
1
We first consider the extent of the Swedish doctors’ purposeful interjection into the forum state. Although perhaps sufficient to meet the purposeful availment test, the Swedish doctors’ contacts with the forum state are nevertheless attenuated. Some of our cases have suggested that once the minimum contacts threshold is met the degree of intrusion into the forum becomes irrelevant. See Corporate Invest. Business Brokers v. Melcher,
Even if there is sufficient ‘interjection’ into the state to satisfy the [purposeful availment prong], the degree of interjection is a factor to be weighed in assessing the overall reasonableness of jurisdiction under the [reasonableness prong].
Insurance Company of North America v. Marina Salina Cruz,
2
We next consider the burden on the Swedish doctors of defending a lawsuit in California. The Supreme Court has recognized that defending a lawsuit in a foreign country can impose a substantial burden on a nonresident alien. “The unique burdens placed upon one who must defend oneself in a foreign legal system should have significant weight in assessing the reasonableness of stretching the long arm of personal jurisdiction over national borders.” Asahi,
Our cases have also been inconsistent in determining whether the corresponding burden on plaintiff in bringing the claims against the defendant in an alternate forum should lessen the impact of this factor on the overall reasonableness determination. Compare,
Despite its strong weight, this factor alone is not dispositive. “Modern advances in communications and transportation have significantly reduced the burden of litigating in another country.” Sinatra,
3
The next factor concerns the extent to which the exercise of jurisdiction would conflict with the sovereignty of the defendants’ state. “[T]he foreign-acts-with-forum-effects jurisdictional principle must be applied with caution, particularly in an international context.” Pacific Atlantic Trading Co.,
In determining how much weight to give this factor, we have focused on the presence or absence of connections to the United States in general, not just to the forum state. Sovereignty concerns weigh more heavily when the defendants have no United States-based relationships. Id. at 1191. For example; in Sinatra, we found it significant that the defendant — a Swiss clinic — had an agent in the United States who actively solicited business in California and considered California one of the clinic’s best sources of American clients. Id. at 1191; see also Asahi,
4
We next' consider California’s interest in adjudicating the suit. “California maintains a strong interest in providing an effective means of redress for its residents [who are] tortiously injured.” Sinatra,
5
The next factor concerns the efficiency of the forum. In evaluating this factor, we have looked primarily at where the witnesses and the evidence are likely to be located. Id. We decline to speculate where the evidence and witnesses are likely to be located in this ease, however, because neither party has addressed this issue. The fact that the lawsuit will continue in California with other parties tips the efficiency factor in Core-Vent’s favor.
We finally consider whether an alternate fortim exists, as well as the convenience and effectiveness of relief for the plaintiff. Here, the claims against the Swedish doctors could possibly be brought in Sweden. The plaintiff bears the burden of proving the unavailability of an alternative forum. Pacific Atlantic,
The maintenance of a suit in Sweden may be costly and inconvenient for Core-Vent, but Core-Vent has not shown that its libel claims cannot be effectively remedied thеre. See Sinatra,
In any event, neither the Supreme Court nor our court has given much weight to inconvenience to the plaintiff. As we noted in Garcia Marquez, “no doctorate in astrophysics is required to deduce that trying a case where one lives is almost always a plaintiffs preference.”
7
We conclude, based on these factors, that the Swedish doctors have presented a compelling case that the exercise of jurisdiction would not comport with fair play and substantial justice and would thus be unreasonable. We are not unmindful that California has a strong interest in providing a forum to those who are injured in its state. However, where the plaintiff is an international corporation and where the defendants are individual citizens of a foreign country who lack connections to the United States and whose purposeful interjection into the forum state has been very limited, that interest must give way. Requiring the doctors to submit to the jurisdiction of the court would impose substantial burdens on them and would interfere with the sovereignty of a foreign nation. The Supreme Court in Asahi indicated that a plaintiff seeking to hale a foreign citizen before a court in the United States must meet a higher jurisdictional threshold than is required when the defendant is a United States citizen. Indeed, commentators have suggested that the international factors were determinative in Asahi. See, e.g., Maltz, supra Part III.B.A., at 689-91. We conclude that Core-Vent has not met this higher threshold here.
IV
Core-Vent makes several additional arguments regarding the district court’s refusal to exercise jurisdiction over Branemark. None has merit.
We reject the contention that the district court can exercise general jurisdiction over Branemark. In support of its claim that Branemark has had systematic and continuous contacts with California, Core-Vent alleges only that Branemark attended five medical conferences in California over the last four years. Branemark cannot be “haled into a jurisdiction as a result of random, fortuitous, or attenuated contacts.” Lake,
We likewise reject the argument that Branemark agreed to submit to jurisdiction in California. In an unrelated patent infringement case, Core-Vent, Nobelpharma, and Branemark entered into a settlement agreement that provided, in part, that the enforcement of the agreement was to occur in California courts. That agreement has no bearing on this suit.
Core-Vent finally contends that because Nobelpharma, at Branemark’s direction, filed suit against Core-Vent in California in an unrelated action, Branemark should be subject to personal jurisdiction in all cases involving Core-Vent. Core-Vent offers no support for the proposition that in such circumstances the exercise of jurisdiction is proper. We reject the argument.
In sum, we conclude that the district court properly declined to exercise jurisdiction over the Swedish doctors.
AFFIRMED.
Notes
. According to the appellees, Core-Vent moved its headquarters to Nevada sometime after the district court's ruling.
. The libel claims were brought against Albrekts-son, Lekholm, and Sennerby but not Branemark. Antitrust claims were brought against Brane-mark. However, Core-Vent claims that the antitrust conspiracy was furthered through the articles. For purposes of this appeal, we will assume arguendo that the claims against Brane-mark arose out of the libelous articles that were allegedly written at Branemark's direction.
. The dissent's reliance on Keeton v. Hustler Magazine, Inc.,
Dissenting Opinion
dissenting:
The facts we must assess in this appeal, as alleged in Core-Vent’s complaint, demonstrate that Drs. Albrektsson, Lekholm, Sen-nerby, and Branemark (collectively, the Swedish doctors) engaged in tortious conduсt purposefully directed at Core-Vent, a resident of the forum state, and intended to cause harm in the forum state. After weighing the relevant factors, I conclude that the Swedish doctors have not presented a compelling argument that the district court’s exercise of personal jurisdiction over them would be unreasonable. Therefore, I dissent.
In its first amended complaint, Core-Vent alleges that Drs. Albrektsson and Lekholm are paid consultants of Nobelpharma. Together they, co-authored an article published in the October 1989 edition of Dental Clinics of North America “that contained false and misleading comparisons of Core-Vent and Nobelpharma implants.” Dr. Sennerby is a Nobelpharma-financed dentist, who in 1990, with Dr. Malmquist, a United States citizen, co-authored an article in the International Journal of Oral and Maxillofacial Implants, which falsely represented the success rate of Core-Vent’s implants to be only 9.3%. In 1990, Drs. Albrektsson and Sennerby co-authored an article in the International Journal of Prothodontics, which misrepresented the relative success rates of Nobelpharma and Core-Vent implants, falsely stated that Core-Vent’s implants did not-meet the criteria for success, and falsely stated that Core-Vent’s claims to the contrary were “unprofessional.” Nobelpharma had the right to review these articles before they were submitted for publication.
Core-Vent does not allege that Dr. Brane-mark wrote any defamatory articles. Rather, it alleges he is a Nobelpharma director and that he, “by distributing funds otherwise not available from other sources, controlled the studies to exaggerate the success of [No-belpharma’s] implants and the alleged danger in purchasing from anyone else.” It is further alleged that Dr. Branemark used the Nobelpharma funds at his disposal to '“flood[ ] the profession with biased and misleading marketing publications which, while giving the appearance of scientific objectivity, are, in fact, biased articles written to promote the products of ... Nobelpharma, and denigrate, through false comparative advertising, the products of competitors.” Core-Vent further alleges that these publications “were circulated in this district to the damage of [Core-Vent].”
Dr. Nizick, the President and Chief Executive Officer of Core-Vent, has confirmed that the above allegations are “true and correct” to the best of his “knowledge and belief.” The Swedish doctors assert in their declarations and in their brief that they are independent scholars, but they do not directly controvert any of Core-Vent’s factual allegations, including the allegation that they hired
For purposes of this appeal, Core-Vent’s allegations must be accepted as true. Fields v. Sedgwick Associated Risks,
Judge O’Scannlain’s analysis leads him to conclude that jurisdiction is absent and would affirm the district court. Judge Fernandez writes separately, agreeing with me that there was purposeful availment, but voting that there is a lack of jurisdiction and, in effect, joining in the result of Judge O’Scann-lain’s opinion on reasonableness, stating his own reasons for his position. I take a third position, and write to demonstrate the failure of the Swedish doctors to meet their burden of proof to overcome Core-Vent’s prima facie showing of jurisdiction.
As Judge O’Scannlain states, we use' the following test to determine whether specific jurisdiction over a nonresident defendant is proper:
(1) the nonresident defendant must purposefully direct his activities or consummate some transaction with the forum or residents 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.
Lake v. Lake,
I
The leading case dealing with purposeful direction is Colder v. Jones,
In addition, Judge O’Scannlain’s argument ignores one very important fact: the Supreme Court has already rejected the proposition that the brunt of the harm must be suffered in the forum. Keeton v. Hustler Magazine,
In an attempt to justify his interpretation of Calder, Judge O’Scannlain suggests that we have always read Calder narrowly. Op. at 1486. The opinion asserts that Calder does not mean that the “effects of libel are felt and jurisdiction exists wherever a corporate plaintiff resides.” Id., citing Casualty Assurance Risk Ins. Brokerage Co. v. Dillon,
Judge O’Scannlain also finds a relevant distinction in the fact that Core-Vent is a corporation and the petitioner in Calder was an individual. Op. at 1486. This exposes a ■fundamental misperception of Judge O’Scannlain’s analysis. His opinion focuses on the nature of Core-Vent, its contacts with the forum, and how it is affected by the harm. But the jurisdictional inquiry should focus on the Swedish doctors, their contacts with the forum, and their intent to cause harm. See Keeton,
Judge O’Scannlain next asserts that “we [have] refused to apply the Calder effects test when the underlying action involved a contract dispute, not a tort.” Op. at 1486, citing McGlinchy v. Shell Chem. Co.,
Finally, Judge O’Scannlain suggests that analogy to Calder does not support a finding that the articles were expressly directed at California because the events underlying the articles did not occur in California and the articles were not researched through California sources. Op. at 1486. This ignores the fact that in Calder, the Court did not rely on the research methods employed in writing the story. Calder,
Ironically, Judge O’Scannlain then disavows his analysis of Calder and ultimately “assumes that the purposeful availment prong has been satisfied.” Op. at 1487. I would go one step further based on Keeton and Calder and hold expressly that Core-Vent’s uncontroverted allegations are sufficient to establish a prima facie case that the Swedish doctors have purposefully directed their tortious conduct at the forum. On this issue, Judge Fernandez has joined my analysis. Thus, for purposes of this case, a majority of the panel agree that purposeful availment has been established.
II
The second part of the Lake test for jurisdiction requires that the claim arise out of or relate to the Swedish doctors’ forum-related activities. As to this issue, the Swedish doctors raise no defense and I conclude that this part of the test was met.
I now turn my attention to the third part of the Lake test: reasonableness. Because Judge Fernandez and I agree that Core-Vent has met its burden of showing that the Swedish doctors purposefully directed their conduct at the forum, jurisdiction is presumed to be reasonable. Brainerd, v. Governors of the Univ. of Alberta,
We have in the past, as Judge O’Scannlain does now, referred to seven questions that may be raised in determining whether jurisdiction is reasonable. However, Judge O’Scannlain’s analysis of several of these is erroneous.
The first pertains to the extent of the Swedish doctors’ contacts with the forum. Judge O’Scannlain concludes that the contacts are “attenuated.” But how does this help? By definitiоn, foreign acts with forum effects will be “attenuated” to some extent because the acts which give rise to the effects occur outside the forum. The Swedish doctors argue only that Core-Vent has not proven that their acts were expressly aimed at California or that the brunt of the harm was suffered in California. These arguments are the same as those analyzed in part I and must fail for the same reasons.
On the other hand, Core-Vent has alleged that the Swedish doctors wrote the articles at the behest of and with the financial backing of Nobelpharma, with the purpose of causing Core-Vent harm. Core-Vent also alleges that the articles were circulated in California, causing it to lose business in California. In other words, Core-Vent has alleged that the doctors were “primary participants in an alleged wrongdoing intentionally directed at a Cаlifornia resident.” Calder,
The second inquiry relates to the burden on the Swedish doctors of defending a lawsuit in California. Although I agree with Judge O’Seannlain that this factor weighs in the doctors’ favor, it does so lightly. The Swedish doctors argue that “the requisite travel, involving a distance of 5454 miles across nine time zones, is an onerous burden.” The convenience of modern transportation and telecommunications facilities, however, has eased this burden to the point that well-educated, well-financed professionals would not be unduly burdened by the travel requirements. See Sinatra,
Judge Fernandez appears to put his primary reason for concurring in the result of Judge O’Scannlain’s reasonableness analysis on this single factоr. But we are required to balance all factors. Decker Coal Co. v. Commonwealth Edison Co.,
The Swedish doctors’ next argument is that defending in a foreign legal system would be extremely burdensome. Asahi Metal Indus. Co. v. Superior Court,
The third question relates to conflict with the sovereignty of Sweden. Ordinarily, as Judge O’Scannlain suggests, this factor would weigh heavily in the Swedish doctors’ favor. But the Swedish doctors have not presented arguments that implicate a significant interference with Sweden’s sovereignty in this case. They argue that this case would interfere with the “right of Swedish courts to resolve disputes involving Swedish citizens.” But this case also involves an American corporation, and the application of California law. The Swedish doctors argue that they have direct professional ties with governmental institutions. But these ties are not alleged to be implicated in this case. Finally, the doсtors argue that Core-Vent has not demonstrated that jurisdiction would not impinge upon Sweden’s sovereignty. This is true, but it misperceives the location of the burden of proof. The burden is on the Swedish doctors to make a compelling case that jurisdiction would be unreasonable, Burger King,
The fourth inquiry relates to the forum state’s interest in adjudicating the suit. “False statements of fact harm both the subject of the falsehood and the readers of the statement.” Keeton,
I agree with Judge O’Scannlain’s weighing of the final three factors, but I also conclude that they are not important or determinative.
IV
In this case, the Swedish doctors’ purposeful direction of tortious activity into California and the state’s strong concomitant interest in providing a forum in which its residents may seek redress of their grievances must be weighed against the burden on the Swedish doctors in having to litigate in a foreign legal system and any possible interference with Sweden’s sovereignty. I conclude that the Swedish doctors have failed to meet their burden requiring them to present a compelling case that jurisdiction would be unreasonable. The Swedish doctors purposefully directed their tortious conduct into the forum for the purpose of harming Core-Vent. They should not now be heard to complain that it would be unfair to require them to defend themselves in a forum in which they intended their tortious conduct to have its effect. See Brainerd,
I respectfully dissent.
Concurrence Opinion
concurring:
I agree with Chief Judge Wallace that purpоseful avaihnent can be found in this ease.
However, based upon the authorities cited by Judge O’Seannlain and by Judge Wallace, I am convinced that it would be unreasonable to require the Swedish doctors to come to this country to litigate with Core-Vent. Surely we would impose unreasonable burdens upon these scientists, whose sole act was to write a couple of articles in Sweden with knowledge (or even intent) that some copies would reach our shores. If Core-Vent truly believes that it is important to sue these individuals for their actions and that it cannot obtain sufficient satisfaction by pursuing their alleged principal, Core-Vent can go to Sweden.
In fine, we need not decide whether our-law is murky, ambiguous, or even inconsistent in places. I do not do so. Whether the atmosphere is fuliginous or crystalline, we can sure-footedly walk the path to the answer in this case.
Thus, I concur.
