MEMORANDUM OPINION AND ORDER
Trinette M. Jones (“Jones”) and Admiral Pointe, LP (“Admiral Pointe”), bring this product liability action seeking to recover monetary compensation for property damage that occurred as a result of a fire allegedly caused by an artificial Christmas tree that was manufactured by defendant Boto Company Limited (“Boto”) in either Hong Kong or the People’s Republic of China (“PRC”), imported into this country by Wal-Mart Stores, Inc. (“Wal-Mart”), and purchased by Jones at a retail store operated by Wal-Mart in the Commonwealth of Virginia. This matter comes before the cоurt on Boto’s motion to dismiss for lack of personal jurisdiction, filed pursuant to Rule 12(b)(2) of the Federal Rules of Civil Procedure. For the reasons set forth herein, Boto’s motion to dismiss is DENIED.
I. Factual and Procedural History 1
On November 19, 2005, Jones, a resident of Virginia, purchased a fiber op
Boto is a foreign corporation doing business in Hong Kong. The Carlyle Group, which is headquartered in Washington, D.C., owns approximately a seventy-five percent share of the company. Boto manufactures artificial Christmas trees and other festive products at facilities in Hong Kong and PRC. It does not have a distribution system for sales to the United States. Rather, Boto negotiates sales contracts in Hong Kong or PRC with its customers, which include Wal-Mart, the United States’ largest retailеr, and Target Corporation. Pursuant to the terms of these contracts, Boto arranges for products to be loaded on shipping carriers in Hong Kong or PRC ports. From this point on, the product is under the control of the customer, and Boto has no further control over any of its products beyond these ports.
Boto sells about $1.1 billion in artificial trees on an annual basis. 2 Most of these artificial trees are ultimately purchased by consumers in the United States. Boto operates an Internet website that is accessible throughout the United States. Although Boto does not sell products directly to consumers through this website, the website provides information about its products that is intended for use by both its customers and the consumers who ultimately purchase its products. Consumers can access product manuals, a list of frequently asked questions, warranty information, and information regarding maintenance and replacement of Boto’s products. Consumers can also complete warranty registration forms on the website. Boto’s warranty services are valid only in the United States and its territories.
Boto is not authоrized to do business in Virginia and, although its website is accessible in Virginia, it has no physical presence here. None of its employees, representatives, or agents are, or ever have been, in Virginia. In addition, none of Boto’s customers has its principal place of business in Virginia.
On or about March 12, 2007, the plaintiffs filed a complaint against Boto in the Circuit Court for the City of Newport News, Virginia, seeking monetary compensation for the property damage that occurred as a result of the fire on December 9, 2005. The plaintiffs served Boto оn May 3, 2007, and Boto removed this action to this court on May 29, 2007. In their complaint, the plaintiffs assert claims of negligence, breach of express warranties, and breach of implied warranties.
On June 7, 2007, Boto filed a motion to dismiss for lack of personal jurisdiction pursuant to Rule 12(b)(2) of the Federal Rules of Civil Procedure. The motion to dismiss was accompanied by a supporting memorandum. On June 12, 2007, the plaintiffs filed an amended complaint.
See
II. Standard of Review
When a defendant files a motion to dismiss for lack of personal jurisdiction under Rule 12(b)(2) of the Federal Rules of Civil Procedure, the jurisdictional question is for the judge to decide, and the plaintiff ultimаtely has the burden to prove by a preponderance of the evidence that the exercise of personal jurisdiction over the defendant is proper.
In re Celotex Corp.,
III. Analysis
To determine whether the exercise of personal jurisdiction over a defendant is proper, a district court must consider two issues. First, the court must consider whether the exercise of personal jurisdiction over the defendant is authorized by the forum state’s long-arm statute.
Chisholm v. UHP Projects, Inc.,
A.
The plaintiffs argue that the assertion of personal jurisdiction over Boto is authorized by sections 8.01 — 328.1(A)(3) and 8.01-328.1(A)(4) of the Code of Virginia. Section 8.01-328.1(A)(3) authorizes the exercise of personal jurisdiction over a defendant “as to a cause of action arising from the person’s ... [clausing tortious injury by an act or omission in this Commonwealth].” Section 8.01-328.1(A)(4), in turn, authorizes the exercise of personal jurisdiction over a defendant “as to a cause of action arising from the persоn’s ... [claus-ing tortious injury in this Commonwealth by an act or omission outside this Commonwealth if he regularly does or solicits business, or engages in any other persistent course of conduct, or derives substantial revenue from goods used or consumed or services rendered, in this Commonwealth.”
At a threshold level, the court notes that the plaintiffs have not alleged that the injury forming the basis for this civil action occurred as a result of any act or omission of Boto in Virginia. Thus, it is clear that Boto did not cause a tortious injury “by an act or omission in this Commonwealth.” Va.Code Ann. § 8.01-328.1(A)(3);
see DeSantis v. Hafner Creations, Inc.,
Section 8.01-328.1(A)(4), on the other hand, authorizes the exercise of per
B.
Having determined that Virginia’s long-arm statute authorizes the exercise of personal jurisdiction over Boto, the court must next turn to the issue of whether the exercise of jurisdiction comports with the requirements of the Due Process Clause of the Fourteenth Amendmеnt. To resolve this issue, the court must engage in a two-step inquiry. The court must first ask whether Boto has the minimum contacts with Virginia necessary to confer jurisdiction.
Lesnick v. Hollingsworth & Vose Co.,
1.
Because this case arises from a foreign entity’s placement of products into “the stream of commerce,” this court’s minimum contacts analysis must start with an examination of
Asahi Metal Industry Co. v. Superior Court of California,
The Court’s efforts to resolve the issue of whether Asahi had the minimum contacts with California necessary to confer jurisdiction resulted in three opinions, none of which garnered support from a majority of the Court. In an opinion joined by three other justices, Justice O’Connor explained that the minimum contacts necessary to confer jurisdiction must come from actions purposefully directed toward the forum state.
Id.
at 112,
By contrast, in an opinion joined by three other justices, Justice Brennan concluded that “jurisdiction prеmised on the placement of a product into the stream of commerce is consistent with the Due Process Clause” and that no showing of additional conduct is required.
Id.
at 117,
Circuits have split on the issue of which
Asahi
opinion sets forth the correct test for determining whether a defendant has the minimum contacts necessary to confer jurisdiction.
See Lesnick,
In this case, at a threshold level, the court notes that it was foreseeable to Boto that a substantial number of its artificial trees would ultimately be purchased by consumers in Virginia. Boto allegedly sells over $1.1 billion in artificial trees on an annual basis, and most of these treеs are ultimately purchased by consumers in the United States. Further, Boto chooses to deal with two of this country’s largest retailers, Wal-Mart and Target Corporation, each of which has a ubiquitous presence throughout the United States. 8 Boto has asserted that it “had no knowledge of the products being distributed by the Wal-Mart Stores throughout the Commonwealth of Virginia,” see Def.’s Mem. in Supp. of Def.’s Mot. to Dismiss, Ex. 1 ¶ 6, but this court cannot seriously entertain the suggestion that a manufacturer can supply products to Wal-Mart and Target Corporation without recognizing that its products will likely be purchased by consumers in, among other places, Virginia. See Barone v. Rich Bros. Interstate Display Fireworks Co., 25 F.3d 610, 613 (8th Cir.1994) (reasoning that “although [the defendant] claims to have had no actual knowledge that [a distributor] distributed fireworks into Nebraska, such ignorance defies reason and could aptly be labeled ‘willful’ ”).
Of course, without more, the mere fact that its was foreseeable to Boto that its product would ultimately be purchased by consumers in Virginia is not sufficient to establish that it has the minimum contacts with Virginia necessary to confer jurisdiction.
See Lesnick,
2.
Having determined that the requirements of the minimum contacts test are satisfied, the court must next consider whether the exercise of personal jurisdiction “would offend traditional notions of fair play and substantial justice.”
Lesnick,
In this case, as in
Asahi,
it is clear that the burden on the defendant will be substantial. The plaintiffs and Virginia, however, have very strong interests in the exercise of jurisdiction over Boto. The plaintiffs named Boto as a defendant in this action and asserted numerous claims against it seeking redress for property damage that allegedly occurred because a product manufactured by Boto malfunctioned. The plaintiffs have a strong interest in being able to seek compensation from Boto for the alleged property damage. Also, Virginia has a strong interest in providing a forum in which Jones, one of its residents, and Admiral Pointe, an entity organized under its laws, can seek reliеf.
See First Am. First, Inc. v. Nat’l Ass’n of Bank Women,
Given the international context in which this dispute arises, this court must also make a careful inquiry into the reasonableness of the assertion of jurisdiction over Boto.
See Asahi,
IV. Conclusion
Because the plaintiffs have made a pri-ma facie showing that Virginia’s long-arm statute authorizes the exercise of personal jurisdiction over Boto and that the exercise of such jurisdiction comports with the requirements of the Due Process Clause of the Fourteenth Amendment, Boto’s motion to dismiss for lack of personal jurisdiction is DENIED. 12 The Clerk is DIRECTED to send a copy of this Memorandum Opinion and Order to counsel for the plaintiffs and the defendants.
IT IS SO ORDERED
Notes
. Where, as here, a district court rules on a mоtion under Rule 12(b)(2) on the basis of the complaint, the motion papers, and the supporting memoranda, without conducting an evidentiary hearing or deferring its ruling until the receipt of evidence at trial, “the court must construe all relevant pleading allegations in the light most favorable to the plaintiff, assume credibility, and draw the most favorable inferences for the existence of jurisdiction.”
Combs v. Bakker,
. This dollar amount is taken from a magazine article that was submitted to the court by the plaintiffs. See Pis.’ Mem. in Opp'n to Def.'s Mot. to Dismiss, Ex. E. At this early stage of the litigation, the plaintiffs have not had an opportunity to obtain accurate and detailed revenue data from Boto through discovery, and the court must draw all inferences in favor of the plaintiffs at this juncture. See supra note 1.
. Wal-Mart had not been served with the amended complaint as of the date of this Memorandum Opinion and Order.
. As to Boto, the amended complaint filed by the plaintiffs is essentially identical to the original complaint. Boto was not "required to file a new motion to dismiss simply because аn amended pleading was introduced while their motion was pending. If some of the defects raised in the original motion remain in the new pleading, the court simply may consider the motion as being addressed to the amended pleading.” 6 Charles A. Wright et al„ Federal Practice and Procedure § 1476 (1990). Thus, the court will treat both Boto’s first motion to dismiss, filed June 7, 2007, and its second motion to dismiss, filed June 27, 2007, as being directed to the plaintiffs’ amended complaint. The ruling herein applies to both of Boto's motions to dismiss.
.If a plaintiff makes a prima facie showing, this does not settle the issue, as the plaintiff must eventually prove by a preponderance of the evidence that the assertion of personal jurisdiction over the defendant is proper either at the trial or at an evidentiary hearing.
New Wellington Fin. Corp. v. Flagship Resort Dev. Corp.,
. The reach of Virginia’s long-arm statute extends to the outermost boundaries of tire Due Process Clause.
Young v. New Haven Advocate,
. The fact that Boto maintains an Internet website that is accessible in Virginia is not relevant to the issue of whether thе requirements of the long-arm statute are satisfied, as there has been no allegation that this lawsuit has any connection with the website. See Va.Code Ann. § 8. 01-328.1(A)(3) ("A court may exercise personal jurisdiction over a person ... as to a cause of action arising from the person's ... [clausing tortious injury by an act or omission in this Commonwealth.” (emphasis added)).
. Wal-Mart, for example, operated one hundred retail stores in Virginia at the end of fiscal year 2007. Wal-Mart Stores, Inc., 2007 Annual Report 63 (2007).
. Without having had an opportunity to conduct full discovery, the plaintiffs have no way of knowing or projecting the numbеr of Virginia residents who purchased Boto’s products as a result of viewing Boto’s website.
. The court notes that if the creation and operation of a website that makes information and services available to consumers in Virginia, when considered in conjunction with the fact that it was foreseeable to Boto that its products would be purchased by consumers here, were not sufficient to satisfy the minimum contacts test, the court would nevertheless find the minimum contacts test satisfied based on the plaintiffs’ prima facie showing that Boto engaged in a rеgular course of dealing that resulted in deliveries of substantial quantities and dollar amounts of products into Virginia on an annual basis over a period of at least several years.
See Asahi,
. The court recognizes that the plaintiffs may also have a remedy against Wal-Mart. However, at this early stage of the litigation, the court cannot rule out that some substantial benefit may accrue to the plaintiffs as a result of Boto, the manufacturer of the purportedly defective Christmas tree, also being a defendant in this action.
. See supra note 4.
