OPINION AND ORDER
This mаtter comes before the Court on Chrysler Canada, Inc.’s Motion to Dismiss Plaintiffs Second Amended Complaint for Lack of Personal Jurisdiction and as Fall
I.
The Second Amended Complaint alleges that on or about January 2, 2009, Christopher Sheldon was driving a 1999 Chrysler 300 M in which plaintiff Carolina Hatton was a restrained rear seat passenger. The vehicle was involved in an accident on Interstate 75 in Lee County, Florida. At the time of the impact, several components of the 1999 Chrysler M failed, causing severe injury to Carolina Hatton. As a result, Carolina Hatton and her minor son, C.H., initiated this action against Chrysler Canada, Inc. asserting causes of action for negligence (Count I) and strict products liability (Count II). Chrysler Canada, Inc. is alleged to have manufactured the Chrysler 300 M vehicle.
This matter was removed from state court on the basis of diversity jurisdiction. In its motion to dismiss for lack of personal jurisdiction, defendant asserts that the Florida Long-Arm Statute does not apply to this case and that exercising personal jurisdiction does not comport with Constitutional Due Process. In the alternative, defendant asserts that the plaintiffs’ claims are barred by the applicable statute of limitations. Plaintiffs argue to the contrary.
II.
“Jurisdiction to rеsolve cases on the merits requires both authority over the category of claim in suit (subject-matter jurisdiction) and authority over the parties (personal jurisdiction), so that the court’s decision will bind them” Ruhrgas AG v. Marathon Oil Co.,
Personal jurisdiction is a restriction on judicial power as a matter of individual liberty, and “a party may insist that the limitation be observed, or he may forgo that right, effectively consenting to the court’s exercise of adjudicatory authority.” Ruhrgas AG,
The existence of personal jurisdiction is a question of law. Diamond Crystal Brands, Inc. v. Food Movers Int’l, Inc.,
Plaintiff “bears the initial burden of alleging in the complaint sufficient facts to make out a prima facie case of jurisdiction.” United Techs. Corp. v. Mazer,
“A federal court sitting in diversity undertakes a two-step inquiry in determining whether personal jurisdiction exists: the exercise of jurisdictiоn must (1) be appropriate under the state long-arm statute and (2) not violate the Due Process Clause of the Fourteenth Amendment to the United States Constitution. When a federal court uses a state long-arm statute, because the extent of the statute is governed by state law, the federal court is required to construe it as would the state’s supreme court.” Diamond Crystal Brands,
The reach of the Florida long arm statute is a question of Florida law. Mazer,
III.
A. Florida Long Arm Statute
(1) General Jurisdiction
Florida’s long-arm statute provides in part: “[a] defendant who is engaged in substantial and not isolated activity within this state, whether such activity is wholly interstate, intrastate, or otherwise, is subject to the jurisdiction of the courts of this state, whether or not the claim arises from that activity.” Fla. Stat. § 48.193(2). “The reach of this provision extends to the limits оn personal jurisdiction imposed by the Due Process Clause of the Fourteenth Amendment.” Fraser v. Smith,
The Second Amended Complaint alleges that Chrysler Canada is a Canadian corporation which has submitted itself to the jurisdiction of the court by “[e]ngaging in substantial and not isolated activity within ■the State of Florida.” (Doc. # 37, ¶ 23d.) Prior paragraphs assert that Chrysler Canada transacted business in Florida (id. ¶ 4), ships thousands of vehicles it manufactures to Florida every year (id. ¶ 5), manufactured .every 300 M sold and used in Florida (id. ¶ 7), manufactured and assembled the subject vehicle in Canada (id ¶ 9), derived billions of dollars in monetary benefit from the sale of its vehicles in Florida and continues to derive significant gain from the sale of its vehicles in Florida (id. ¶ 10), and maintained business contacts and activity with Florida Chrysler dealers, including warranty coverage in Florida (id. ¶ 13).
Chrysler Canada asserts that it is not engaged in substantial and not isolated activity within the State of Florida. In support, defendant provides the affidavit of Edward R. Masse (Doc. # 40-1) in which he states the following:
Defendant Chrysler Canada is an indirect wholly owned subsidiary of Chrysler Group LLC.
In response, plaintiffs assert that “[t]he factual evidence elicited from Chrysler Canada in the' previous Florida case, Hunter v. Chrysler Canada, Inc., 6:09-cv-01050-MSS-GJK (M.D.Fla.2009) overwhelmingly demonstrates Chrysler Canada was and is involved in ‘substantial and not isolated activity’ within Florida”.
In Hunter, the Court determined that personal jurisdiction was proper under the Florida Long-Arm statute under Fla. Stat. § 48.193(l)(b), a specific jurisdie tion provision, rather than Fla. Stat. § 48.193(2), the general jurisdiction provision. The Court finds that the facts elicited in Hunter are insufficient evidence of substantiаl and not isolated activity in the State of Florida by defendant. The fact that a vehicle manufactured by defendant in Canada found its way in the stream of commerce to Florida is not sufficient to give Florida general jurisdiction over defendant. Goodyear Dunlop Tires Operations, S.A. v. Brown, — U.S. -,
(2) Specific Jurisdiction
The Second Amended Complaint asserts personal jurisdiction based upon defendant (a) operating, conducting, engaging in, and carrying on a business or business venture in Florida, (b) committing a tortious act in Florida, and (c) causing injury to persons or property within Florida arising out of an act or omission outside Florida. Plaintiffs thus assert that the Court has specific personal jurisdiction pursuant to Fla. Stat. §§ 48.193(l)(a), (b), and (f)(2). Specific jurisdiction refers to “jurisdiction over causes of action that arise from or are related to the party’s actions within the forum.” PVC Windoors,
(a) Sufficiency of the Allegations
The parties dispute whether the Florida choice-of-law principles direct that Florida, Ohio, or Canada law applies as to the statute of limitations' in this matter. No party asserts, however, that Florida law does not provide the substantive law for Counts I and II or thаt the allegations are insufficient to state a claim.
Count I of the Second Amended Complaint sets forth a claim of negligence. Count I alleges that Chrysler Canada owed a duty of reasonable care to plaintiffs (Doc. # 37, ¶ 35), breached its duties to plaintiffs in four specific ways (Id. at ¶ 36), and as a direct and proximate result plaintiffs suffered injuries and damages (Id. at ¶¶ 37-40). Count I thus plausibly states all the elements of a negligence claim under Florida law. Clay Elec. Co-op, Inc. v. Johnson,
Count II of the Second Amended Complaint sets forth a claim of strict liability. Count II alleges that Chrysler Canada designed and/or manufactured and assembled the 1999 Chrysler 300 M and distributed and sold similar vehicles in Florida, (id. at ¶42), that it knew the vehicles would be operated by persons without inspection for defects in the rear seat back, rear seat cushion, and luggage compartment (id. at ¶ 43), that defendant knew or should have known that the vehicles would be sold and rented without substantial change in the condition from the time of manufacture and assembly to the time of sale (id. at ¶ 44), that the vehicle
Because plaintiffs have set forth plausible causes of action, it is appropriate to determine whether the Florida Long-Arm Statute affords personal jurisdiction over defendant. • .
(b) Application of the Long-Arm Statute
Plaintiffs allege that personal jurisdiction over Chrysler Canada is appropriate under three (3) provisiоns of the Florida Long-Arm Statute. Specifically, plaintiffs assert that Fla. Stat. 48.193 sections (l)(a), (l)(b), and (f)(2), all confer personal jurisdiction over defendant.
The Court finds that plaintiffs have sufficiently pled personal jurisdiction under section (l)(f)(2) of the Florida Long Arm Statute which provides personal jurisdiction over any person “[e]ausing injury to persons or property within this state arising out of an act or omission by the defendant outside this state, if, at or about the time of the injury ... • [products, materials, or things processed, serviced, оr manufactured by the defendant anywhere were used or consumed within this state in the ordinary course of commerce, trade, or use.” Fla. Stat. § 48.193(f)(2) (emphasis added). The parties dispute whether Chrysler Canada is a “manufacturer.” Neither party disputes, however, that Chrysler Canada “assembled” the vehicle.
Florida courts have held that the term ■“processed” as contained in section 48.193(l)(f)(2) contemplates “ ‘[t]he conduct of a wholesaler in bringing together large quantities of goods for shipment ....’” Pratte v. Wuebbels,
B. Constitutional Considerations
The second part of the jurisdictional analysis is whether thé exercise of personal jurisdiction would violate Due Process. In order for jurisdiction to comport with the Due Process clause, there must be a “purposeful availment of thé privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.” Stubbs v. Wyndham Nassau Resort & Crystal Palace Casino,
(a) Minimum Contacts
Minimum contacts requires the following: (1) the contacts must be related to the plaintiffs cause of action or have given rise to it; (2) the contacts must involve some purposeful availment of'the privilege of conducting activities within the forum, thereby invoking the benefits and protections of its laws; and (3) the defendant’s contacts with the forum state must be such that it should reasonably anticipate being hailed into court there. Sculptchair, Inc. v. Century Arts, Ltd.,
The parties contest whether or not defendant has had sufficient “minimum contacts” with Florida such that it should be subjected to personal jurisdiction by this Court. Plaintiffs rely on the “stream of commerce” theory of personal jurisdiction, which provides simply that Due Process is satisfied if the forum state “asserts personal jurisdiction over a corporation that delivers its products into the stream of commerce with the expectation that they will be purchased by consumers in the forum State.” Vermeulen v. Renault, U.S.A., Inc.,
Defendant, on the other hand, asserts that the recent Supreme Court case of J. McIntyre Machinery, Ltd. v. Nicastro, — U.S.-,
Relevant Eleventh Circuit case law is unclear which test it would adopt under this set of facts, and the Eleventh Circuit has not yet had the opportunity to review J. McIntyre. See Vermeulen,
Defendant asserts that J. McIntyre'dictates that the “stream of commerce plus”
Accordingly, the “stream of commerce” test remains good law in the Eleventh Circuit, and J. McIntyre does not, as defendant suggests, alter this. Applying the facts of this case to that theory, the Court finds that Chrysler Canada purposely availed itself of the, protections of the State of Florida. Chrysler Canada assembled the subject Chrysler 300 M for Chrysler United States, which distributes nationally in the United States, and therefore Chrysler Canada invoked the benefits and protections of those states, including Florida. Worldr-Wide Volkswagen Corp.,
(b) Traditional Notions of Fair Play and Substantial Justice
Defendant asserts that exercising personal jurisdiction over it would offend traditional notiоns of fair play and substantial justice because it will be heavily burdened if it must defend the suit in Florida. In particular, “almost all non-accident related witnesses and discovery that may be relevant to the Plaintiffs [sic] claims against Chrysler Canada are located in states and countries other than Florida and in the United States.” (Doc. # 40, pp.‘ 20-21.) Defendant also asserts that Florida has little interest in adjudicating the case within the State.
In response, plaintiffs assert that the United States and Florida have a compelling interest in protecting individuals within their boundaries from unsafe products. Plaintiffs further assert that many crucial witnesses, including investigating police officers, EMS personnel, health care providers, and records custodians are within the State of Florida. Further, the vehicle is preserved in its post-crash condition in Fort Myers, Florida. Finally plaintiffs assert that “[t]his accident occurred in Florida on Florida highways, and exercising jurisdiction will serve to impose the safety of Chrysler Canada’s products used by Floridians and deter the influx of defective and dangerous products entering its forum.” (Doc. # 45, p. 16.)
There are five factors a Court must consider to determine if exercising personal jurisdiction would comport with traditional notions of fair play and substantial justice. The factors include:
(1) The burden on the defendant; (2) the forum’s interest in adjudicating the dispute; (3) the plaintiffs interest in obtaining convenient and effective relief; (4) the interstate judicial system’s interest in obtaining the most efficient resolution of controversies; and (5) theshared interest of the states in furthering fundаmental substantive social policies.
Croft v. Lewis,
Here, it would likely burden defendant, at least to some' extent, to litigate in Florida. The Court is not persuaded, however, that Florida does not have a strong interest in the adjudication of the dispute. Accepting the allegations of the Complaint as true, defendant’s product was unreasonably dangerous and several of these vehicles were involved in thousands of accidents every year in Florida. (Doc. # 37, ¶¶21, 22.) Certainly Florida has a substantial interest in protecting drivers within the State, regardless of citizenship, from unreasonably dangerous vehicles. The Plaintiffs have an interest in convenient relief in Florida because several of their key witnesses are within the State. See Foreign Imported Prods. v. Grupo Industrial Hotelero, S.A.,
To be sure, the results of this balancing test are not overwhelming. On balance of the factors, however, the Court finds they indicate that subjecting Chrysler Canada to suit in Florida comports with traditional notions of fair play and substantial justice. See Sculptchair,
C. Statute of Limitations
The parties agree that Ohio and Canada both have a two-year applicable statute of limitations and Florida has a four-year statute of limitations. Defendant asserts that each statute of limitations began to run on the date of the accident, January 2, 2009. Defendant asserts that either Canada or Ohio law applies under Florida conflict of laws princiрals and therefore, plaintiffs’ action is time-barred. Accordingly, the Amended ■Complaint should be dismissed.
In response, plaintiffs assert that there is a “false” conflict among the jurisdictions because under all three, this matter is entitled to equitable tolling. In particular, plaintiffs assert that defendant fraudulently identified Chrysler United States, rather than Chrysler Canada, as the manufacturer of the Chrysler 300 M. Plaintiffs ássert that it was not until December 2011, that they discovered that' defendant was the “true” manufacturer of the vehicles. Therefore, рlaintiffs’ claims are entitled to equitable tolling.
In reply, defendant does, not dispute that Chrysler United States was identified as the manufacturer. Defendant asserts that Chrysler Canada is not the “manufacturer” and instead is the “assembler” of the vehicles and that Chrysler United States was correctly identified as the manufacturer. Therefore, plaintiffs are not entitled to equitable tolling.
A comprehensive conflict-of-law analysis is required only if the case involves a “true” conflict between the jurisdictions with an interest in the case. “A true conflict exists when ‘two or more
The statute of limitations is an affirmative defense, and the burden of proving an affirmative defense is on the defendant. Tello v. Dean Witter Reynolds, Inc.,
The Amended Complaint alleges that “[t]he subject vehicle as manufactured by Chrysler Canada, and assembled by employees of Chrysler Canada ...” (Doc. # 37, ¶ 9) (emphasis added). For purposes of a motion to dismiss, the Court must accept the allegation that Chrysler Canada, rather than Chrysler United States, was the manufacturer. As defendant has conceded, Chrysler United States was initially identified as the manufacturer. As a result, plaintiffs have at least established a plausible basis for invoking equitable tolling. Whether or not plaintiffs are entitled to equitable tolling requires resolution of facts not yet in evidence. Omar,
Accordingly, it is now
ORDERED:
Chrysler Canada, Inc.’s Motion to Dismiss Plaintiffs Second Amended Complaint for Lack of Personal Jurisdiction and as Falling Outside the Statute of Limitations and Incorporated Memorandum of Law (Doc. # 40) is DENIED.
Notes
. Insurance Corp. of Ireland, Ltd. v. Compagnie des Bauxites de Guinee,
. In particular, he attests that Chrysler Canada is currently an indirect wholly owned subsidiary of Chrysler Group LLC, and was previously an indirect wholly owned subsidiary of Chrysler LLC, formerly DaimlerChrysler Company LLC, formerly DaimlerChrysler Corporation, formerly Chrysler Corporation. (Doc. # 40-1, V 4.) For ease of reference, the Court will refer to this group collectively as "Chrysler United States”.
. A copy of the Order is attached to the response. (See Doc. # 45-1.)
. Because the Court finds personal jurisdiction is proper under subsection (l)(f)(2), the Court need not address the parties arguments with respect to subsections (l)(a) and (b).
. The effects test applies in order to determine whether sufficient minimum contact exist in torts cases. Oldfield,
