I. INTRODUCTION
Currently pending before the court are several motions in two related cases. Plaintiffs Howard Hess Dental Laboratories, Inc. (“Hess”) and Philip Guttierez d/b/a Dentures Plus (“Dentures Plus”) filed an antitrust class action against Dentsply International, Inc. (“Dentsply”) on April 21, 1999. Hess Dental Laboratories, et. al v. Dentsply International Inc. (“the Hess action”), Civ. No. 99-255 (D.I.1). Hess subsequently became Jersey Dental Laboratories (“Jersey Dental”) and, on April 24, 2001, the same plaintiffs filed an antitrust class action against Dentsply and twenty-six dental dealers. 1 Jersey Dental Laboratories jf/k/a Howard Hess Dental Laboratories, Inc. and Philip Guttierez d/b/a Denhvres Plus v. Dentsply et. al (“the Jersey Dental action”), Civ. No. 01-267 (D.I.1). An amended complaint was filed in the Jersey Dental action on October 10, 2006, wherein plaintiffs allege that defendants have conspired to maintain a purported monopoly on the manufacture of artificial teeth for sale in the United States, to restrain trade by the implementation of exclusive dealing arrangements, and to sell such teeth at anticompetitive prices. (Civ. No. 01-267, D.I. 259 at ¶ 45) Plaintiffs seek damages, equitable relief, and costs.
Currently before the court is plaintiffs’ motion for summary judgment in the
Hess
action. (Civ. No. 99-255, D.I.256) For the reasons that follow, the court denies plaintiffs’ motion. In the
Jersey Dental
action, several motions to dismiss have been filed: (1) motions to dismiss for lack of personal jurisdiction and improper venue pursuant to Federal Rules of Civil Procedure 12(b)(2) and (b)(3), brought by nine nonresident defendants (D.I.266)
2
and by defendant Nowak Dental Supplies, Inc. (“No-wak”) (D.I.274) (collectively, the “non-Delaware defendants”); (2) certain dental dealer defendants’ motion to dismiss counts II and IV of the amended complaint (D.I.264);
3
and (3) Dentsply’s motion to
II. BACKGROUND
A. The Parties
Plaintiffs Jersey Dental and Dentures Plus are dental laboratories that purchase Dentsply products, including Dentsply’s “Trubyte” brand of artificial teeth, indirectly through dental dealers. They bring this action on behalf of themselves and other similarly situated dental laboratories that have purchased and regularly purchase Dentsply’s Trubyte brand of artificial teeth. According to the amended complaint, the class includes “thousands of other similarly situated dental laboratories.” (Civ. No. 01-267, D.I. 259 at ¶¶ 2, 3)
Defendant Dentsply is a leading manufacturer and worldwide distributor of products and equipment for the dental market. Through its Trubyte Division, Dentsply manufactures and markets products used by dental laboratories to make dentures and other removable dental prosthetics. {Id. at ¶ 4)
The remaining defendants are dental dealers that distribute Dentsply’s products, including Trubyte brand teeth, through direct sales to dental laboratories. {Id. at ¶¶ 5-26) The dental dealers are the primary source of distribution of artificial teeth to dental laboratories. {Id. at ¶¶ 55, 59) Dental dealers stock a “full array” of products needed to make dentures, including artificial teeth, and generally employ skilled sales and service people to provide services to dental laboratory customers. {Id. at ¶ 60)
B. History of this Antitrust Litigation
For more than fifteen years, Dentsply operated under a policy that discouraged the dental dealers from carrying competitors’ artificial teeth.
U.S. v. Dentsply Int’l,
1. The government action
The first suit to be filed regarding Dealer Criterion 6 was an antitrust action filed by the United States(“the government action”) on January 5, 1999. (Civ. No. 99-005, D.I.l) In its suit, the government alleged that Dentsply: (1) acted unlawfully to maintain a monopoly in violation of § 2 of the Sherman Act, 15 U.S.C. § 2; (2) entered into unlawful restrictive dealing agreements that substantially lessened competition in violation of § 3 of the Clayton Act, 15 U.S.C. § 14; and (3) entered into unlawful agreements in unreasonable restraint of interstate trade and commerce in violation of § 1 of the Sherman Act, 15 U.S.C. § 1.
(Id.)
Following a bench trial, this court entered judgment in favor of Dentsply on August 12, 2003.
(Id.,
D.I. 517) This court found that Dealer Criterion 6 did not preclude Dentsply’s main rivals from marketing their teeth directly
Following the Third Circuit’s mandate (Civ. No. 99-005, D.I.534), the court entered injunctive relief in favor of the government (Id., D.I. 559). The injunction was entered on April 26, 2006 and directed, inter alia, Dentsply to cease requiring its dealers to be exclusive Dentsply dealers and to remove Dealer Criterion 6 from its list of dealer requirements. (Id.) The injunction will be in effect for seven and one-half years, or until October 26, 2013. (Id.)
2. The private actions
Plaintiffs Hess and Dentures Plus filed the
Hess
action against Dentsply on April 21, 1999. (Civ. No. 99-255, D.I.l) Plaintiffs alleged the same antitrust violations as the government and, in addition, added causes of action for attempt to monopolize and conspiracy to monopolize, as well as damages claims, against Dentsply.
(Id.)
Dentsply moved for summary judgment against plaintiffs on April 3, 2000. On March 30, 2001, this court granted in part Dentsply’s motion. "Specifically, the court found that plaintiffs are indirect purchasers who lack standing to sue for damages under
Illinois Brick Co. v. Illinois,
Less than a month later, on April 24, 2001, plaintiffs filed the
Jersey Dental
action in this court, alléging Sherman Act violations against Dentsply and twenty-six dental dealers (the “dealer defendants”) arising from the same exclusive dealing arrangement alleged in the government and
Hess
actions. (Civ. No. 01-267, D.I.l
4
) This time, plaintiffs alleged that they were direct purchasers. The court subsequently granted Dentsply’s motion to dismiss the damages portion of the antitrust claims against it, finding that the indirect purchaser rule still applied to plaintiffs (i.e., that the “co-conspirator” exception to
Illinois Brick
did not apply).
(Id.,
D.I. 166; D.I. 167, found at
Plaintiffs thereafter moved to amend their complaint in an attempt to overcome some of these deficiencies. The proposed amended complaint alleged that defendants have engaged in a retail price-fixing conspiracy, that intermediary dental dealers act only as agents for Dentsply, that plaintiffs suffered lost profits from the unrealized sale of competitive teeth, and that the dental dealers will not sue Dentsply.
(Id.,
D.I. 170, exs. A & B) The court denied leave to amend, reasoning that plaintiffs amended claims would not withstand a motion to dismiss; the co-conspirator exception to
Illinois Brick
still did not apply because the dental dealers could still sue Dentsply; and
Illinois Brick
barred recovery of lost profits damages because plaintiffs were indirect purchasers.
(Id.,
D.I. 208, found at
Jersey Dental Laboratories v. Dentsply International, Inc.,
On September 21, 2005, having heard the appeal of the
Hess
action, the Third Circuit affirmed this court’s decision that plaintiffs, as indirect purchasers, lacked standing to sue for damages on its exclusive dealing claims.
See Howard Hess Dental Labs., Inc. v. Dentsply Int’l, Inc.,
C. The Amended Jersey Dental Complaint
Plaintiffs responded to the Third Circuit’s
Hess
decision by filing an amended complaint in the
Jersey Dental
action on October 10, 2006. (Civ. No. 01-267, D.I. 259) Plaintiffs continue to assert claims against all defendants for retail price-fixing;
6
these claims are not challenged in the present motions to dismiss.
(Id.
at ¶¶ 131-136) The amended complaint alleges that Dentsply and the dental dealers engaged in an exclusive dealing conspiracy in violation of sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1, 2. In counts II and III, plaintiffs allege that Dentsply and the dental dealers conspired to monopolize the artificial teeth market.
(Id.
at ¶¶ 137-165) In count II, plaintiffs seek both damages and injunctive relief against the dealer defendants for this alleged conspiracy.
(Id.
at ¶¶ 148-149) In count III, plaintiffs seek only an injunction, and not damages, against Dentsply for its role in
In counts IV and V, plaintiffs allege that Denstply and the dental dealers conspired to restrain trade which, they allege, constituted a group boycott of Dentsply’s competitors. (Id. at ¶¶ 166-187) Once again, plaintiffs seek both damages and injunctive relief against the dealer defendants (count IV) (id. at ¶¶ 175-176), but seek only an injunction against Dentsply (count V) (id. at ¶ 186). 7
III. STANDARDS OF REVIEW
A. Summary Judgment
A court shall grant summary judgment only if “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). The moving party bears the burden of proving that no genuine issue of material fact exists.
See Mat-sushita Elec. Indus. Co. v. Zenith Radio Corp.,
B. Motion to Dismiss for Lack of Personal Jurisdiction
When reviewing a motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(2), a court must accept as true all allegations of jurisdictional fact made by the plaintiff and resolve all factual disputes in the plaintiffs favor. Once a jurisdictional defense has been raised, the plaintiff bears the burden of establishing with reasonable particularity that sufficient minimum contacts have occurred between the defendant and the forum state to support jurisdiction.
See
C. Motion to Dismiss for Improper Venue
A court may dismiss a lawsuit for improper venue pursuant to Fed.R.Civ.P. 12(b)(3). However, the Federal Rules of Civil Procedure do not contain any specific venue provisions or requirements. A court, therefore, must determine whether venue is proper in accordance with the appropriate statutes when deciding a motion to dismiss for improper venue.
See Albright v. Gord,
Civ. A. No. 02-304,
D. Motion to Dismiss Pursuant to Rule 12(b)(6)
In reviewing a motion filed under Fed. R.Civ.P. 12(b)(6), the court must
accept
all factual allegations in a complaint as true and take them in the light most favorable to plaintiff.
See Erickson v. Pardus,
■— U.S.-,-,
IV. DISCUSSION
A. Plaintiffs’ motion for summary judgment in the Hess action
In the
Hess
action, the dental laboratory plaintiffs have moved for summary judgment on their claim against Dentsply for “exclusive dealing/monopoly maintenance” (count II). (Civ. No. 99-255, D.I. 256, D.I. 257 at 1, 5) Plaintiffs claim that, because the Third Circuit found that Dentsply violated section 2 in the government action, Dentsply is collaterally estopped from contesting its liability vis-a-vis the
Hess
complaint. Although Dentsply’s violations are claimed to be the same, plaintiffs also claim that they are presently entitled to
1. Collateral estoppel
The doctrine of collateral estoppel states that, “once an issue is actually and necessarily determined by a court of competent jurisdiction, that determination is conclusive in subsequent suits based on a different cause of action involving a party to the prior litigation.”
Montana v. U.S.,
2. Discussion
The complaint in the
Hess
action contains certain causes of action pled in the government action, and some new claims. Both cases involve monopoly maintenance, restrictive dealing, and restraint of trade claims against Dentsply.
8
U.S. v. Dentsply,
The relevant market for Dentsply’s teeth, as defined by the Third Circuit, consists of two consumers combined: the dental dealers and the dental laboratories. Id. at 188. The question posed by plaintiffs’ motion is, essentially, whether the Third Circuit’s finding that competition in this market was harmed necessarily means that plaintiffs have suffered antitrust injury. Put another way, do plaintiffs’ claims require proof of specific injuries to plaintiffs, such as higher prices paid?
Plaintiffs’ estoppel argument, however, impermissibly combines the concepts of causation and injury. Antitrust injury “is an injury of the type the antitrust laws were intended to prevent and that flows from that which makes the defendants’ acts unlawful.”
Angelico, M.D. v. Lehigh Valley Hospital,
The court declines to infer that a “finding of anticompetitive effects necessarily implies a finding that consumers [here, the dental laboratories] have been hurt” (D.I. 257 at 19-20),
9
in view of the lack of a determination that plaintiffs have suffered an injury in fact (which is demonstrably linked to the conduct which has been proscribed by the Third Circuit) and the nature of such injury. The court, therefore, declines to grant plaintiffs’ motion for summary judgment on the ground of collateral estoppel.
See In re Microsoft
Corp.
Antitrust Litig.,
3. Injunctive relief sought
The court notes that the fact that plaintiffs seek only injunctive relief rather than damages does not alter plaintiffs’ obligation to establish its antitrust injuries. It does, however, provide an additional basis for the court’s denial of plaintiffs’ motion in view of the fact that Dentsply has already been enjoined from the monopolist activities condemned by the Third Circuit. (Civ. No. 99-005, D.1.559) ■
Plaintiffs assert that granting another injunction “will not be redundant but, rather, will substantially enhance the effectiveness of the injunctive relief already granted.” (Civ. No. 99-255, D.I. 257 at 23) In addition to provisions that are “essentially the same” as the prohibitions set forth in the government’s injunction, plaintiffs additionally request that another injunction: (1) be of unlimited duration, as compared to seven and a half years; (2) require that Dentsply (a) post the injunction on its website and (b) hire an outside, independent monitor, in contrast to the employee it has designated as the antitrust compliance officer for the government’s injunction; and (3) prohibit Dentsply’s participation in meetings or phone calls between dental dealers and laboratories absent the laboratories’ request. (Id. at 25-28)
Aside from its theories on why additional relief would be beneficial to them, plaintiffs have not adequately explained why the government’s injunction is insufficient to prevent Dentsply from engaging in anti-competitive practices. In fact, despite seeking a permanent injunction, plaintiffs assert only that they are “threatened with loss or injury proximately resulting from the recurrence of Dentsply’s exclusive dealing/monopoly maintenance.” (D.I. 257 at 24) Even if plaintiffs could meet the stringent requirements of the permanent injunction standard (and the court believes they cannot),
10
plaintiffs nevertheless fail to demonstrate a need for further, non-duplicative measures to those already in place.
11
The court, therefore, denies plaintiffs’ motion on the alternative basis that plaintiffs have not demonstrated that they are entitled to additional injunctive relief.
12
B. The Non-Delaware Defendants’ Motions to Dismiss for Lack of Personal Jurisdiction and Improper Venue
Nine non-Delaware defendants move to dismiss in the Jersey Dental action for lack of jurisdiction and improper venue pursuant to Federal Rules of Civil Procedure 12(b)(2) and (b)(3). (Civ. No. 01-267, D.I.266) 13 Defendant Nowak has filed its own motion on these grounds. (D.I.274)
1. The Clayton Act
Section 12 of the Clayton Act provides: Any suit, action, or proceeding under the antitrust laws against a corporation may be brought not only in the judicial district whereof it is an inhabitant, but also in any district wherein it may be found or transacts business; and all process in such cases may be served in the district of which it is an inhabitant, or wherever it may be found.
15 U.S.C. § 22 (emphasis added). The first clause relates to venue, while the second clause concerns service of process and, therefore, personal jurisdiction.
In re: Automotive Refinishing Paint Antitrust Litigation
(hereinafter,
“Automotive Refinishing
”),
2. Jurisdiction
In response to defendants’ challenge to personal jurisdiction by this court, plaintiffs bear the burden of showing that personal jurisdiction exists.
Marten v. Godwin,
Plaintiffs assert that the jurisdictional clause of the Clayton Act requires only that personal jurisdiction be demonstrated by “national contacts,” rather than specific contacts with the jurisdiction in which defendants have been sued. (D.I. 289 at 6-13) Since each of the moving defendants are incorporated in one of the states of the United States, plaintiffs assert that sufficient national contacts exist.
(Id.
at 12) In support for their argument, plaintiffs rely on the Third Circuit’s decision in
Automotive Refinishing,
Though this holding is not, in literal terms, limited to jurisdiction over foreign corporations, there are several compelling reasons for limiting
Automotive Refinishing
to its facts. First, the authority relied upon by the
Automotive Refinishing
Court does not concern domestic defendants. The
Automotive Refinishing
Court relied upon prior Third Circuit precedent set forth in
Pinker v. Roche Holdings Ltd.,
Secondly, and perhaps most importantly, the
Automotive Refinishing
Court had no occasion to consider jurisdiction vis-a-vis domestic defendants; it acknowledged, however, a “crucial” distinction between alien and domestic corporations in its discussion of venue.
Automotive Refinishing,
Insofar as the Third Circuit has never applied a “national contacts” test for establishing personal jurisdiction over a domestic antitrust defendant, the court declines to extend the holding of
Automotive Refinishing
in a manner that would eounterindi-cate traditional long-arm jurisprudence
Specific jurisdiction arises when a defendant has both purposefully directed its activities at residents of the forum state and the action arises from, or is directly related to, the defendant’s actions within the forum state.
See Burger King Corp. v. Rudzewicz,
In the case at bar, the moving defendants have submitted affidavits which demonstrate that they are not incorporated in Delaware, and have conducted no business within the State. (D.I. 267, exs. A-H; D.I. 276; D.I. 295, ex. A
17
) In response, plaintiffs have put forward no evidence that defendants “purposefully availed” themselves of doing business with Delaware citizens.
18
Likewise, the court is not satisfied that defendant Nowak or the non-Delaware defendants “[had] certain minimum contacts with [the State] such that the maintenance of [plaintiffs’] suit does not offend ‘traditional notions of fair play and substantial justice.’ ”
Int'l Shoe,
3. Venue
Although the court need not address the moving defendants’ arguments regarding venue in view of this holding, the court notes that there is no indication that venue in this district is appropriate and, therefore, improper venue provides an alternative basis for the court’s disposition of the motions.
In order to establish that venue is improper in this case, defendants must demonstrate that they are not inhabitants
Being “found” in a district is generally equated with “doing business” there, and requires greater contacts than does “transacting business.” A corporation is “found” where it has “presence” and “continuous local activities” in the district.
Id. (citations omitted). Defendants’ affidavits demonstrate no such activities within this district.
In response, and despite pleading that venue in this district is proper pursuant to section 12 of the Clayton Act, 15 U.S.C. § 22, plaintiffs argue that venue in the District of Delaware is proper pursuant to the general venue statute, 28 U.S.C. § 1391(c), which provides that a corporation is a resident of “any judicial district in which [defendant corporation] is subject to personal jurisdiction at the time the action is commenced.” (D.I. 259 at ¶ 27; D.I. 289 at 14) Plaintiffs argue, based on their interpretation of Automotive Refinishing and the “national contacts” theory rejected above, that all defendants “reside” in Delaware because “there is personal jurisdiction in this district over each and every [defendant.” (D.I. 289 at 14)
The court finds that domestic defendants’ national contacts do not suffice to render venue appropriate in the District of Delaware. Put another way, section 12 of the Clayton Act may not be supplemented with the general venue provisions of 28 U.S.C. 1391(b) and/or (c) for purposes of establishing venue for domestic defendants, and must be considered independently of those provisions.
See Cumberland Truck Equipment Co.,
Plaintiffs do not contest the facts as alleged in defendants’ affidavits (D.I. 289 at 21), and have provided only legal argu-
C. Motions to Dismiss Counts II-V in the Jersey Dental Action Pursuant to Rule 12(b)(6)
Counts II and III of the amended complaint contain plaintiffs’ conspiracy to monopolize claims against the dealer defendants (count II) and Dentsply (count III). (D.I. 259 at ¶¶ 137-165) Counts IV and V of the amended complaint contain plaintiffs’ exclusive dealing claims, in which plaintiffs allege that the dealers (count IV) and Dentsply (count V) conspired to restrain trade, which constituted a group boycott of Dentsply’s competitors. (Id. at ¶¶ 166-187) Several defendants 20 and Dentsply have separately moved to dismiss these claims. (D.I.264, 279 21 ) The court will address defendants’ arguments in turn.
1. Injunctive relief sought against Dentsply for violations asserted in counts III and V
Dentsply asserts that, even assuming plaintiffs have stated viable claims against it, plaintiffs would still lack standing to seek injunctive relief in view of the injunction that has already been secured by the government. (D.I.279) As discussed above, plaintiffs have not alleged any facts that could demonstrate a threat of future injury and/or irreparable harm. Absent such a proffer, plaintiffs cannot establish that they are entitled to a second injunction against Dentsply for the same conduct currently enjoined by the government’s injunction. 22 Count V, for which only injunc-tive relief is sought, therefore, is dismissed for failure to state a claim upon which can be granted. 23 With respect to Dentsply’s conduct asserted in count III, plaintiffs also seek “a declaratory judgment that Dentsply’s actions complained of herein are violations of the prohibition against combining or conspiring to monopolize, under [s]ection 2 of the Sherman Act, 15 U.S.C. § 2,” and for this court to order the “divestiture of the Trubyte division from Dentsply.” (D.I. 259 at ¶ 165) The parties do not address this proposed relief in their submissions; the court, therefore, proceeds to evaluate defendants’ additional arguments with respect to claim III.
2. Damages sought from the dealers for violations asserted in counts II and IV
The dealer defendants assert that plaintiffs are barred from suing for damages by reason of the Third Circuit’s prior decision in the
Hess
case, in which the
This court previously determined, and the Third Circuit agreed, that “[t]he intermediate dental dealers suffer the direct harm from any lost opportunity to sell a greater volume of Dentsply products or to sell competitive product lines and profit therefrom. Any harm suffered by plaintiffs remains indirect.”
See Howard Hess Dental Labs.,
Plaintiffs are correct that the Third Circuit had no occasion in
Hess
to evaluate plaintiffs’ standing to sue the dealers for damages, as the dealers were not parties to that action. Nevertheless, counts II and IV in the case at bar allege non-vertical price-fixing conspiracies that are subject to the Third Circuit’s ruling.
Howard Hess Dental Labs., Inc.,
3. Counts II and III — specific intent
The court also finds that dismissal of counts II and III is appropriate for failing to allege any factual allegations that support plaintiffs’ claim that the dental dealers shared Dentsply’s specific intent for Dentsply to monopolize the artificial tooth market. (D.I. 265 at 17-22; D.I. 279)
To state a conspiracy to monopolize claim, plaintiffs must allege: (1) an agreement or understanding between the dealers and Dentsply; (2) a specific intent to monopolize; and (3) overt acts in furtherance of the alleged conspiracy.
See Untracht v. Fikri,
To this end, plaintiffs have pled that the dealer defendants “have conspired with Dentsply and with each other to, among other things, restrict Dentsply’s dealers from carrying the artificial teeth of any
On its face, the asserted complaint contains the general allegation that the dealers intended for Dentsply to maintain a monopoly.
(Id.
at ¶¶ 73, 156)
24
The court finds that plaintiffs have not, however, pled “facts from which it can reasonably be inferred that the [dealers] formulated [the] intent” that “maintaining [Dentsply’s] monopolies was a goal that they themselves wanted to accomplish.”
In re Microsoft Corp. Antitrust Litig.,
The amended complaint does not appear to contain and, indeed, plaintiffs do not point out any facts that could supplement their general assertion of intent. In contrast, and as discussed previously, plaintiffs have maintained throughout this litigation that the dealers were coerced into accepting Dentsply’s terms. Plaintiffs have pled that Dentsply demanded the dealers’ participation in the exclusive dealing arrangement
(id.
at ¶¶ 81, 84); in fact, several dealer relationships were terminated by Dentsply when dealers did not accept its terms
(id.
at ¶¶ 91-99). Based on plaintiffs’ own allegations, “it is at least as likely that the [dealer] defendants simply chose to make the best of a bad situation” in order to have access to the Dentsply tooth line.
In re Microsoft Corp. Antitrust Litig.,
In response to Dentsply’s motion, plaintiffs assert that a specific intent is “infera-ble, without more, from [the dealers’] participation in a conspiracy whose purpose and means is the unlawful ... creation or maintenance of a monopoly.” (D.I. 288 at 34) This logic, however, is circular; an element required to prove the existence of conspiracy cannot be inferred from the existence of a conspiracy. Plaintiffs also assert that “the fact that a conspirator has been threatened does not necessarily mean that when it finally decides to agree to conspire, its only motive is fear.” (D.I. 288 at 35) (emphasis added). This argument, again, presumes the presence of a conspiracy in the first instance. Even if the dealer defendants were compensated for their acceptance of Dealer Criterion 6, it does not follow that they shared the specific intent for Dentsply to achieve a monopoly.
Finally, plaintiffs’ allegation that the defendants have conspired, “each with all of the others,” to achieve a Dentsply monopoly does not substantiate plaintiffs’ claim that defendants were part of a single conspiracy. No facts have been pled from which it could be inferred that the dealer defendants acted in unison, “sharing a unity of purpose” or a “meeting of the minds,” rather than in parallel.
25
For all of these
V. CONCLUSION
For the aforementioned reasons, plaintiffs’ motion for summary judgment in the Hess action (Civ. No. 99-255, D.I.256) is denied, and each of the motions to dismiss in the Jersey Dental action (Civ. No. 01-267, D.I.264, 266, 274, 279) are granted. An order shall follow.
ORDER
At Wilmington this 26th day of September 2007, consistent with the memorandum opinion issued this same date;
IT IS ORDERED that:
1. Plaintiffs’ motion for summary judgment (Civ. No. 99-255, D.I.256) is denied.
2. Defendants’ motion to dismiss counts II and IV of the amended complaint (Civ. No. 01-267, D.I.264) is granted.
3. Defendants’ motion to dismiss for lack of personal jurisdiction and improper venue (Civ. No. 01-267, D.I.266) is granted.
4. Dentsply’s motion to dismiss counts III and V. of the amended complaint (Civ. No. 01-267, D.I.272) is denied as moot.
5. Defendant Nowak’s motion to dismiss for lack of personal jurisdiction and improper venue (Civ. No. 01-267, D.I.274) is granted.
6. Dentsply’s motion to dismiss counts III and V. of the amended complaint (Civ. No. 01-267, D.I.279) is granted.
Notes
.The defendants are Dentsply; A. Leventhal & Sons, Inc.; Accubite Dental Lab, Inc.; Ad-dium Dental Products; Arnold Dental Supply Company; Atlanta Dental Supply Company; Benco Dental Company; Burkhart Dental Supply Company; Darby Dental Laboratory Supply Co., Inc.; Dental Supplies and Equipment, Inc.; Edentaldirect.com, Inc., as successor to Crutcher Dental, Inc.; Hendon Dental Supply, Inc.; Henry Schein, Inc. and its affiliates, including, without limitation, Zahn Dental Co., Inc.; Iowa Dental Supply Co.; Jahn Dental Supply Company; JB Dental Supply Co., Inc.; Johnson & Lund Co., Inc.; Kentucky Dental Supply Company, Inc., a/k/a KDSC Liquidation Corp.; Marcus Dental Supply Co.; Midway Dental Supply Inc.; Mohawk Dental Co. Inc.; Nashville Dental, Inc.; Nowak Dental Supplies, Inc.; Patterson Dental Company, its subsidiaries, predecessors, successors, assigns, affiliates, and related companies; Pearson Dental Supplies, Inc.; Ryker Dental Supplies, Inc.; and Thompson Dental Company.
. The moving defendants are Arnold Dental Supply Company; Atlanta Dental Supply Company; Dental Supplies and Equipment, Inc.; Iowa Dental Supply Company, LLC; Johnson & Lund Co., Inc.; Kentucky Dental Supply Company, Inc. n/k/a/ KDSA Liquidation Corporation; Marcus Dental Supply Company, Inc.; Mohawk Dental Co.; and Ryker Dental of Kentucky, Inc.
. The moving defendants are Accubite Dental Lab, Inc.; Arnold Dental Supply Company; Atlanta Dental Supply Company; Benco Dental Company; Burkhart Dental Supply Company; Darby Dental Laboratory Supply Co., Inc.; Dental Supplies and Equipment, Inc.; Hendon Dental Supply, Inc.; Henry Schein, Inc.; Iowa Dental Supply Co.; Jahn Dental Supply Company; Johnson & Lund Co., Inc.; Kentucky Dental Supply Company, Inc., a/k/a KDSC Liquidation Corp.; Marcus Dental Supply Co.; Mohawk Dental Co. Inc.; Nowak Dental Supplies, Inc.; Patterson Dental Company; Pearson Dental Supplies, Inc.; and Ryker Dental Supplies, Inc. (D.I.264)
. In their original complaint, the Jersey Dental plaintiffs alleged that the named defendants conspired to restrain trade in violation of Section 1 of the Sherman Act, 15 U.S.C. § 1; conspired to monopolize in the relevant market in violation of Section 2 of the Sherman Act, 15 U.S.C. § 2; and conspired to restrain trade in violation of Section 3 of the Clayton Act, 15 U.S.C. § 14.
. (Civ. No. 01-267, D.I. 273 at 9 (citing Appellants' Reply Br. at 23 n. 16)) Plaintiffs do not contest defendants' recount of these statements in their responsive brief. (D.I. 290 at 26)
. Omitted from the amended complaint are originally-named defendants A. Leventhal & Sons, Inc.; Midway Dental Supply Inc.; Nashville Dental, Inc.; and Thompson Dental Company. (D.1.259) Zila, Inc. is presently named "as successor to Ryker Dental of Kentucky, Inc.” (Id.)
. Plaintiffs state in the heading for count V that this claim is "[ajgainst Dentsply, for [¡In-junctive [rjelief,” but, aside from alleging that plaintiffs have no adequate remedy at law (id. at 175), fail to particularly request injunctive relief vis-a-vis Dentsply in the body of the amended complaint. (Compare id. at ¶ 176 (seeking "damages from the [d]ealer [djefen-dants, ... and a permanent injunction enjoining the continuing violation of [sjection 1 of the Sherman Act, 15 U.S.C. § 1”))
For each count discussed above, plaintiffs also seek a declaratory judgment that the complained-of actions constitute Sherman Act violations. (Id. atffll 149, 165, 176, 187)
. Plaintiffs acknowledge that the Hess complaint contains two claims against Dentsply not pled in the government action: attempt to monopolize; and conspiracy to monopolize in violation of section 2 of the Sherman Act. (Civ. No. 99-255, D.I. 257 at 2; D.I. 1 (counts III and IV)) Plaintiffs limit their motion to count II, or their "exclusive dealing/monopoly maintenance” claim. (Id. at 1, 5)
. The authority cited by plaintiffs on this point is not persuasive. (D.I. 257 at 19-20) In
Serpa Corp. v. McWane, Inc.,
. In deciding whether to grant a permanent injunction, courts must consider whether: "(1) the moving party has shown actual success on the merits; (2) the moving party will be irreparably injured by the denial of injunctive relief; (3) the granting of the permanent injunction will result in even greater harm to the defendant; and (4) the injunction would be in the public interest.”
Shields v. Zuccarini,
The Third Circuit has recently recognized a conflict in its precedent regarding whether irreparable harm is a prerequisite to the grant of a permanent injunction relief.
See Stolt-Nielsen, S.A. v. U.S.,
. This case presents a scenario opposite to that presented in
U.S. v. Borden Co.,
While plaintiffs argue in this case that it would be advantageous to have over 7,000 dental laboratories police Dentsply's conduct (Civ. No. 99-255, D.I. 257 at 23), clearly any dental laboratory can notify the government of any further antitrust violations by Dentsply, regardless of the status of the instant private litigation.
.It appears as though the record in this case is closed; it is unclear to the court whether plaintiffs have, but did not put forward, evidence sufficient to demonstrate an
. Hereinafter, all docket items referenced by the court refer to the Jersey Dental action, Civ. No. 01-267.
.
Cf. Action Embroidery Corp. v. Atlantic Embroidery, Inc.,
. lODel. C. § 3104(c).
. Defendants have not challenged the sufficiency of service under Delaware’s long-arm statute.
. Plaintiffs assert that Ryker Dental has been succeeded by Zila, Inc., a Delaware corporation. (D.I. 289 at 20) Ryker Dental asserts that Zila, Inc. is not its successor, but its parent corporation, and has submitted a Certificate of Existence issued by the Commonwealth of Kentucky which demonstrates that Ryker Dental is a distinct corporate entity in good standing in that state. (D.I.295, ex. A) As Zila, Inc. is not a party to this litigation, and the record demonstrates that Ryker Dental and Zila, Inc. maintain distinct corporate identities, plaintiffs’ assertions that Ryker Dental is an inhabitant of Delaware (and has "waived any objection to venue”) are unpersuasive.
.Because jurisdiction based on specific contacts is lacking, there is clearly no general jurisdiction based upon "systematic” or regular contacts with this forum. 10 Del. C. § 3104(c)(4).
. The court in
Cumberland Truck Equipment Co. v. Detroit Diesel Corporation,
The district court in Automotive Refinishing, affirmed by the Third Circuit, noted that
[t]he broad grant of venue under [Section 1391(d)] is inapplicable to domestic corporations ... [N]othing in Go-Video[, Inc. v. Akai Electric Co.,885 F.2d 1406 (9th Cir. 1989)] permits a domestic corporation to be sued in any district. Rather, a domestic corporation could only be sued [] according to [s]ection 12....
In re Automotive Refinishing Paint Antitrust Litigation,
No. Civ. A. 1426,
. Supra n. 3
. The current motion is a corrected version of D.I. 272, which is denied as moot.
. There is no indication, and the court does not assume, that the injunction sought by plaintiffs in the Jersey Dental suit would contain stricter measures than those imposed by the government's injunction, such as has been asserted by plaintiffs in the Hess action.
. As discussed supra (fn. 7), plaintiffs characterize count V as ''[ajgainst Dentsply, for [i]njunctive [rjelief,” but, aside from alleging that plaintiffs have no adequate remedy at law (id. at 175), plaintiffs fail to particularly request injunctive relief with respect to Dents-ply in the body of that count. (See D.I. 249 at ¶ 187 (seeking damages from the dealer defendants, a declaratory judgment that the dealers' actions violate section 1 of the Sherman Act, and generally, "a permanent injunction enjoining the continuing violation of [s]eclion 1")) The parties have not addressed this discrepancy. For purposes of the present motion, and consistently with the parties' arguments, the court has treated count V as seeking injunctive relief from Dentsply.
. Plaintiffs point only to paragraphs 71-74 of the amended complaint in support for their argument that specific intent was pled. (D.I. 288 at 34; D.I. 290 at 27-28)
. Similarly, plaintiffs have not proffered facts that could demonstrate a “concerted action” between the defendants as required for plaintiffs’ section 1 claims (counts IV & V).
See Cosmetic Gallery, Inc. v. Schoeneman Corp.,
This deficiency is especially troubling considering that the dealers had no rational motive to join a conspiracy with Dentsply which would limit the dealers’ ability to sell a variety of products to its customers.
See U.S. v. Dentsply,
