MEMORANDUM AND ORDER
I. Introduction
This case arises out of a May 31, 2014 airplane crash that occurred in Bedford, Massachusetts during the takeoff rotation of a Gulfstream G-IV aircraft, killing all passengers onboard. Plaintiffs Drew Katz and Melissa Silver (“Plaintiffs”), individually and as the co-personal representatives of the estate of Lewis A. Katz, a passenger on the flight, have filed this lawsuit against numerous defendants including Gulfstream Aerospace Corporation (Georgia) (“Gulf-stream Georgia”), Gulfstream Aerospace Corporation (Delaware) (“Gulfstream Delaware”), Gulfstream Aerospace Services Corporation (“Gulfstream Services”) and Rockwell Collins, Inc. (“Rockwell”), alleging claims of wrongful death and conscious suffering predicated on theories of negligence and breach of the implied warranty of merchantability. D. 1-3, 1-4. Plaintiffs have also brought claims under Mass. Gen. Laws c. 93A D. 1-3, 1-4. Rockwell, Gulf-stream Services, Gulfstream Georgia and Gulfstream Delaware have all moved to dismiss for lack of personal jurisdiction. D. 64, 67, 70, 82.
II. Standard of Review
In ruling on a motion to dismiss for lack of personal jurisdiction without holding an evidentiary hearing, a district court must apply the prima facie standard of review. United States v. Swiss Am. Bank, Ltd.,
III. Factual Allegations
These allegations are taken from the operative complaint and the affidavits filed by Gulfstream Services, Gulfstream Georgia, Gulfstream Delaware and Rockwell in support of their motions to 'dismiss. For the purposes of the instant motions, the Court presumes the allegations put forth by the Plaintiffs to be true and also considers the Defendants’ uncontradicted factual allegations. The Court has already extensively laid out the alleged facts in this case in its December 12,. 2016 Order regarding Plaintiffs’ motion to remand, D. 135, and incorporates the articulation of those facts into this Memorandum and Order. Thus, for present purposes, the Cоurt only recounts facts relevant to the motions to dismiss of Gulfstream Georgia, Gulfstream Delaware, Gulfstream Services and Rockwell.
On May 31, 2014, a Gulfstream G-IV aircraft, Serial Number N121JM, (the “GIV”) crashed duriñg its takeoff rotation as it' was departing from 'Laurence G. Hans-com Field in Bedford, Massachusetts. D. 1-2 ¶¶ 1, 59. The accident resulted in the deaths of seven people, including Lewis A, Katz, his three companions, the flight attendant and pilots. Id. ¶¶ 1, 8, 69.’
Gulfstream Georgia, a corporation organized and existing under the laws of the state of Georgia,' designed and manufactured the G-IV. D. 66 ¶¶ 3, 7. Gulfstream Georgia neither has any design or manufacturing facilities in Massachusetts nor is it registered or authorized to do business in the Commonwealth. Id. ¶¶ 4, 5. No agent for service of process exists for Gulf-stream Georgia" in ' Massachusetts and Gulfstream Georgia has not consented to jurisdiction in Massachusetts. Id. ¶ 4; In addition, Gulfstream Georgia does not utilize a network of distributors or retailers in the sale of its aircraft, instead opting to sell its aircraft'directly to consumers. Id. ¶ 6. The G-IV at issue here was sold by Gulfstream Georgia to Rim Air LLC, a Delaware corporation, in 2000. D. 66 ¶9; D. 66-1. Rim Air LLC subsequently sold the G-IV to SK Travel LLC (“SK Travel”), a North Carolina corporation that is a separate defendant in this case, , in 2007. D. 66 ¶ 10; D, 66-2. Prior to the initial sale of the G-IV, Gulfstream Georgia never tested, operated or serviced the aircraft in Massachusetts. D. 66 ¶8. At' present,
Gulfstream Delaware, the parent holding company of Gulfstream Georgia and Gulfstream Services, is not incorporated in Massachusetts and does not have its principal place of business .in Massachusetts. D. 69 ¶¶ 3-4. Additionally, Gulfstream Delaware is not registered or authorized to do business in Massachusetts, does not have an agent for service of process here and has never consented to jurisdiction in Massachusetts. Id. ¶8. Gulfstream Delaware did not design or manufacture the particular G-IV that crashed in Bedford, nor has it designed or manufactured any other G-IV or any other comрonent of a G-IV aircraft. Id. ¶ 7.
Gulfstream Services is the wholly-owned subsidiary of Gulfstream Delaware and is organized under the laws of the state of Delaware. D. 72 ¶¶3-4. Gulfstream Services’ corporate headquarters are in Georgia. Id. ¶ 3. Like Gulfstream Delaware, Gulfstream Services did not design or manufacture the particular G-IV that crashed in Bedford, nor has it designed or manufactured any other G-IV or any other component of a G-IV aircraft. Id. ¶ 6. Gulf-stream Services has also never been the type certificate holder for the Gulfstream G-IV product line, which was instead held by Gulfstream Georgia. Id. ¶ 5. Rather, Gulfstream Services specializes in the repair and maintenance of Gulfstream aircraft and it has several service facilities located throughout the country, including one in Westfield, Massachusetts (the “Westfield Facility”). Id. ¶ 7. Gulfstream Services’ business records reveal that employees from the Westfield Facility provided maintenance to the G-IV on a single occasion in January 2013. Id. ¶ 8; D. 72-1. On that occasion, the G-IV’s auxiliary power unit (“APU”) was mаlfunctioning and, at the request of SK Travel, two technicians were sent from the Westfield Facility to repair the issue in Delaware. D. 72 ¶8.
Rockwell designed,' manufactured and sold the G-IV’s interlock mechanism and gust lock at issue in this case. D, 1-4 ¶¶354, 358. Rockwell does not have an office in Massachusetts; it has never had a principal place of business in Massachusetts; it does not maintain bank accounts in Massachusetts; nor has it ever manufactured any component of the gust lock system in Massachusetts or sold, marketed or distributed the gust lock system to a Massachusetts customer. D. 83-1 ¶¶ 5-11. Rockwell delivered the last pedestal assembly in 2004 and the last G-IV sector assembly in 2008 and neither was to Massachusetts. Id ¶ 11, In 2001, Rockwell registered as a foreign corporation to do business in Massachusetts and also identified a registered agent in the Commonwealth. Id. ¶ 12. From 2001 until 2005, Rockwell leased property in Massachusetts, but it has not leased any property since that time, and does not own property in Massachusetts. Id ¶ 13. Additionally, for one month—from January 1, 2013 until February 1, 2013—Rockwell had one employee, out of its 19,000 employees, who was located in Massachusetts, Id. ¶ 14.
IV. Procedural History
Plaintiffs filed an amended complaint in this action on May 27, 2016 in Suffolk Superior Court. D. 1-4. The case was removed to this Court on July 1, 20.16. D. 1. Gulfstream Services, Gulfstream Georgia and Gulfstream Delaware subsequently filed motions to dismiss for lack of personal jurisdiction. D, 64, 67, 70. Rockwell also filed a motion to dismiss for lack of personal jurisdiction. D. 82. On July 29, 2016, Plaintiffs filed a motion to. remand this case to state court, D. 86, and this Court otherwise stayed the case pending resolution of that matter. D. 112. After denying
V. Discussion
The Court’s personal jurisdiction over a defendant may derive from either general or specific jurisdiction. Plaintiffs do not maintain that this Court has general jurisdiction over Rockwell, Gulfstream Services, Gulfstream Georgia or Gulfstream Delaware and, as such, the Court must only determine whether Plaintiffs have asserted facts sufficient to exercise spеcific jurisdiction over these defendants. To establish specific personal jurisdiction, Plaintiffs “must demonstrate that the Massachusetts long-arm statute grants jurisdiction over [them] and that the exercise of that jurisdiction comports with the Due Process Clause of the Fifth Amendment.” Adelson v. Hananel,
Due process requires the Court to determine whether the defendant has maintained “certain minimum contacts” with the forum state “such that the maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” Int’l Shoe Co. v. Washington,
A. Rockwell
1. Relatedness
Plaintiffs allege no facts that would satisfy the relatedness prong as it pertains to Rockwell. The relatedness inquiry focuses on whether “the claim underlying the litigation ... directly arise[s] out of, or relate[s] to, the defendant’s forum-state activities.” Newman v. Eur. Aeronautic Def. & Space Co. EADS N.V., No. 09-cv-10138-DJC,
Here, Plaintiffs’ claims against Rockwell are premised on the allegation that the GIV’s gust lock system, which the pilots had failed to disengage prior to takeoff and which allegedly contributed to the crash, contained “design defects, manufacturing defects, and inadequate and unreasonably dangerous instructions and warnings.” D. 1-4 ¶¶ 354, 358. Rockwell, however, has never manufactured any part of the gust lock system in Massachusetts, nor has it marketed, sold or distributed this component in the Commonwealth. D. 83-1 ¶¶ 9-10. Plaintiffs have not contested these facts. Although Rockwell registered as a foreign corporation to do business in Massachusetts and briefly rented space аnd had a single employee here, id. ¶¶ 12-14, these limited contacts do not relate to Plaintiffs’ allegations regarding the gust lock system. Harrell v. Repp,
2. Purposeful Availment and Stream of Commerce
While the Court does not need to reach the purposeful availment prong given its findings as to the relatedness prong, the Court .nevertheless addresses this issue. “The purposeful availment requirement ensures that jurisdiction is not premised on ‘random, isolated, or fortuitous’ contacts with the forum state.” Weinberg v. Grand Circle Travel, LCC,
[t]he placemént of a product into the stream of commerce, without more, is not an act of the defendant purposefully-directed toward the forum State. Additional conduct of the defendant may indicate an intent or purpose to serve the market in the forum State, for example, designing the product for the market in the forum State, advertising in the forum State, establishing channels for providing regular advice to customers in the forum State, or marketing the product through a distributor who has agreed to serve as the sales agent in the forum State. But a defendant’s awareness that the stream of commerce may or will sweep the product into the forum State does not convert the mere act of placing the product into the stream into an act purposefully directed toward the forum State.
Id. at 112,
Plaintiffs rely on Heins v. Wilhelm Loh Wetzlar Optical Mach. GmbH & Co. KG.,
if the sale of a product of a manufacturer or distributor ... is not simply an isolated occurrence, but arises from the efforts of the manufacturer or distributor to serve, directly or indirectly, the market for its product in other States, it is not unreasonable to subject it to suit in one of those States if its allegedly defective merchandise has there been the source of injury to its owner or to others. The forum State does not exceedits powers under the Due Process Clause if it 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.
Id. at 22,
Here, the Court must similarly examine any relevant “plus” factors. Plaintiffs, however, have not alleged any contacts between Rockwell and Massachusetts which relate to the gust lock system..Rather, the complaint speaks in broad terms, stating that Rockwell “operates various business entities throughout the Commonwealth of Massachusetts and does substantial, systematic, and continuous business in Massachusetts by availing itself of business opportunities, advertising the availability of its parts and services, selling and shipping its parts to Massachusetts residents and entities, and then communication with its Massachusetts customers about airworthiness, repairs, maintenance, and pricing-information.” D. 1-2 ¶ 48. Unlike Heins, Rockwell did not act directly to cultivate a market for its product in Massachusetts. D. 83-1 ¶ 10. It did not send its employees to advertise its product in the Commonwealth, Id. Nor did it sell a completed product to consumers in Massachusetts, as the defendant in Heins did, but instead manufactured a constituent component of the G-IV. Id.; see Skyworks Sols., Inc. v. Kinetic Techs. HK Ltd., No. 13-cv-10655-GAO,
Plaintiffs’ argument seems to suggest that personal jurisdiction can be sufficiently established under a stream of commerce 'theory simply because the gust lock system—at some point after -it was manufactured outside of Massachusetts, sold outside of Massachusetts and installed in an aircraft outside of Massachusetts—found itself within this Commonwealth by chance. But mere presence in the forum state is not sufficient to establish minimum contacts or the stream of commerce plus standard. See D’Jamoos ex rel. Estate of Weingeroff v. Pilatus Aircraft Ltd., 566
Here, where Rockwell took no actions that caused the gust lock device to end up in Massachusetts and the gust lock did not enter the Commonwealth through the commonly conceptualized notion of “stream of commerce,” this Court cannot assert personal jurisdiction under a stream of commerce theory. See Newman,
8. Reasonableness
Lastly, Plaintiffs have not succeeded in demonstrating the reasonableness of subjecting Rockwell to this Court’s jurisdiction. The reasonableness inquiry is based on a balancing of the following “Gestalt factors”: “(1) the defendant’s burden of appearing, (2) the forum state’s interest in adjudicating the dispute, (3) the plaintiffs interest in obtaining convenient and effective relief, (4) the judicial system’s interest in obtаining the most effective resolution of the controversy, and (5) the common interests of all sovereigns in promoting substantive social policies.” Cossaboon v. Me. Med. Ctr.,
The Court sees no burden Rockwell would face in being forced to appear in a Massachusetts court. Indeed, the First Circuit has made clear that when analyzing the first Gestalt factor, the Court must bear in mind that “it “is almost always inconvenient and/or costly” for a foreign defendant to have to appear in a foreign jurisdiction. Pritzker v. Yari,
The second factor, however, weighs heavily against keeping Plaintiffs’ lawsuit against Rockwell in this forum. Neither the Plaintiffs nor Rockwell are citizens of Massachusetts. The alleged wrongful conduct committed by Rockwell—manufacturing and designing a gust lock system with defects that contributed to the crash of the G-IV—did not take place in Massachusetts and did not cause any injury to citizens of the Commonwealth. While Massachusetts may have an interest in regulating the safety of its airspace and preventing deadly accidents at its airports, D. 164 at 11-12, “[t]he evidence shows that the only nexus between this litigation and Massachusetts is the location of the accident which ‘is not ... enough to establish its substantial interest in [the] suit.’ ” Newman,
As to the third factor, ‘while “a plaintiffs choice of forum must be accorded a degree of deference with respect to the issue of its own convenience,” Sawtelle,
The fourth Gestalt factor, which examines the judicial system’s interest in obtaining the most effective resolution of the case is “generally considered a ‘wash.’ ” Id at *11 (quoting Hasbro, Inc. v. Clue Computing, Inc.,
Finally, under the fifth factor, the Court evaluates the common interests of all sovereigns in promoting substantive social policies. But, in light of the other Gestalt factors, even if Massachusetts arguably has an interest in resolving the liability issues pertaining to an airplane crash occurring within its borders, that interest is not enough to tip the scale in favor of establishing personal jurisdiction over Rockwell in the Commonwealth. This is particularly true where the Massachusetts-based interests (e.g., interest in the operation of a Massachusetts airport) are addressed by Plaintiffs’ claims against other Defendants (e.g., Massport) and not this particular defendant.
Accordingly, the Court GRANTS Rockwell’s motion to dismiss for lack of personal jurisdiction.
B. Gulfstream Services
1. Relatedness
Again, to satisfy the relatedness prong, Plaintiffs would need to show that “the cause of action either arises directly out of, or is related to, [Gulfstream Services’] forum-based contacts.” Harlow,
Plaintiffs allege—and Gulfstream Services confirms—that in January 2013 two Gulfstream Services’ employees traveled from the company’s facility in Massachusetts to Delaware to perform maintenance on the G-IV. D. 161 at 6-7; D. 72 ¶8. After servicing the G-IV, as Plaintiffs claim, the Gulfstream Services’ technicians signed a “return to service” form which certified that the G-IV was airworthy. D. 1-2 ¶¶ 120-21; D. 1-4 ¶¶ 345-46. Plaintiffs argue that because the G-IVs gust lock system was faulty, the G-IV was not airworthy and, therefore, Gulf-stream Services breached its duty of care in connection with any inspeсtion, maintenance, service, repair and certification of the G-IV. D. 1-2 ¶¶ 120-21; D. 1-4 ¶¶ 345-46. Gulfstream Services counters, however, that the January 2013 service of the G-IV had nothing to do with the gust lock system which Plaintiffs allege to be a
In considering issues of personal jurisdiction, the Court may сonsider, as previously noted, “facts put forward by the defendant ], to- the extent they are unconT tradicted.” Stars for Art Prod. FZ, LLC v. Dandana, LLC,
2. Purposeful Availment
“In determining whether the purposeful availment condition .is satisfied, [the] ‘kеy focal points’ are the voluntariness -of the defendants’ relevant Massachusetts contacts and the foreseeability of the defendants falling subject to Massachusetts’s jurisdiction.” Copia Commc’ns,
3. Reasonableness
The Court also agrees with Plaintiffs that the balance of the Gestalt factors weigh in favor of exercising jurisdiction over Gulfstream Services.
First, considering Gulfstream Services’ contacts with Massachusetts, the burden on the company of appearing before the Court is relatively low. Moreover, because it “almost always inconvenient and costly for a party to litigate in a foreign jurisdiction ... the defendant must demonstrate that exercise of jurisdiction in the present circumstance is onerous in a special, unusual, or other constitutionally significant way.” Hilsinger Co. v. FBW Invs.,
While it is a close question whether Gulfstream Services’ in-forum conduct is sufficiently related to Plaintiffs’ cause of action, the other jurisdictional inquiries— рurposeful availment and reasonábleness—provide stronger support for an exercise of specific jurisdiction. For these reasons, the Court finds that it has personal jurisdiction over Plaintiffs’ claims against Gulfstream Services and the Court DENIES Gulfstream Services’ motion to dismiss.
C. Gulfstream Delaware and Gulf-stream Georgia
In their briefing, Plaintiffs essentially concede that Gulfstream Delaware and Gulfstream Georgia do not have sufficient contacts with Massachusetts on their own to satisfy the relatedness and purposeful availment prongs of the First Circuit’s specific jurisdiction test. Astro-Med,
1. Gulfstream Delaware
As an initial matter, both Plaintiffs and Gulfstream Delawarе are uncertain about which law controls the question of whether to impute Gulfstream Services’ Massachusetts contacts to Gulfstream Delaware. Gulfstream Delaware argues that the correct law to apply is Georgia law on piercing the corporate veil—although the company also fortifies its argument with support from Massachusetts and Delaware law bn piercing the corporate veil. D. 68 at 12-16. Plaintiffs counter that their theory for imputing Gulfstream Services’ contacts to Gulfstream Delaware is rooted in agency law, not piercing the corporate veil or an alter ego test. D. 162 at 11 n.7. Plaintiffs, however, do not address the choice of law problem raised by Gulfstream Delaware and instead rely on “basic principles” of agency law as applied in federal court opinions. Id. at 11-14. The Court first considers, then, which law should inform its analysis.
Where, as here, the underlying legal claims are state law claims, the Court must found its decision on state law principles. See In re Lernout & Hauspie Securities Litig.,
Massachusetts courts have taken a similar approach, treating the question of whether an agency relationship exists between a parent and subsidiary as a component of the veil piercing analysis. My Bread Baking Co. v. Cumberland Farms, Inc.,
“Massachusetts law is not entirely settled regarding whether determinations about piercing a corporation’s veil should automatically be made under the law of the state of incorporation, or whether the place of incorporation is one of a number of factors considered.” Lothrop v. N. Am. Air Charter, Inc.,
[22—25] Under Georgia law, a court may “exercise of personal jurisdiction over a parent corporation if the parent’s control over the subsidiary’s activities is so complete that, the subsidiary is, in fact, merely a, division or department of the parent.” Drumm Corp. v. Wright,
Plaintiffs have not álleged sufficient facts to establish that Gulfstream Services is a “division or department” of Gulfstream Delaware, that Gulfstream Delaware “dominates” Gulfstream Services or that Gulf-stream Delaware is “actively] and directly] participating]” in the corporate affairs of Gulfstream Services. Drumm Corp.,
For these reasons, the Court declines to impute Gulfstream Services’ Massachusetts contacts to Gulfstream Delaware and finds that it lacks personal jurisdiction over Plaintiffs’ claims against Gulfstream Delaware. Accordingly, Gulfstream Delaware’s motion to dismiss for lack of personal jurisdiction is GRANTED.
2, Gulfstream Georgia
Plaintiffs begins by arguing that the Court has jurisdiction over Gulfstream Georgia under the traditional First Circuit test of relatedness, purposeful availment and reasonableness. D. 163 at 7-10. Plaintiffs, however, do not allege any facts to support a causal connection between their claims against Gulfstream Georgia and the company’s Massachusetts contacts. Rather, Plaintiffs allege generally that “there is reason to believe that the negligent repairs conducted on the [G-IV] in January, of 2013 were carried out by employees of Gulfstream Georgia who were—under what circumstances, .the Plaintiffs cannot now say—stationed at the Gulfstream Services facility in Westfíeld.” D, 163 at 7-8. Plaintiffs’ argument, therefore, relies on the theory that Gulfstream Georgia and Gulfstream services are in fact opеrating as a single entity. Id. at 8. After all, Plaintiffs have separately argued that the January 2013 repairs of the G-IV were carried out by Gulfstream Services employees. Id. at 8; D. 161. The Court has already rejected such a theory in connection with Gulf-stream Delaware and Gulfstream Services and Plaintiffs have not, alleged any additional facts specific to Gulfstream Georgia that would lead to a different outcome here. See D. 163 at 8. As to purposeful availment, Plaintiffs ask the Court to consider Gulfstream Georgia’s marketing efforts directed at Massachusetts as well as the fact that the company has historically sold aircraft to Massachusetts residents. D. 163 at 9.
The Court briefly addresses the stream of commerce argument as to Gulfstream Georgia to distinguish its earlier stream of commerce analysis related to Rockwell. Unlike Rockwell, Gulfstream Georgia is not simply the manufacturer of a single aircraft cоmponent, but rather is the manufacturer of the G-IV. Also, while Plaintiffs make a series of broad claims about Gulfstream Georgia’s ' Massachusetts-directed commercial activity, Plaintiffs do cite the fact “that at least 10 Gulfstream Georgia aircraft are currently owned or
Finally, Plaintiffs argue that it would be reasonable for the Court to exercise jurisdiction over Gulfstream Georgia under the Gestalt factors. D. 163 at 9-10. The Court, however, views the reasonableness analysis as to Gulfstream Georgia as indistinguishable from that which it has already conducted as to Rockwell. Accordingly, the Court does not believe it would be reasonable to exercise jurisdiction over Gulf-stream Georgia.
For these reasons, the Court GRANTS Gulfstream Georgia’ motion to dismiss for lack of personal jurisdiction.
VI. Conclusion
For the foregoing reasons, the Court ALLOWS the motions to dismiss of Gulf-stream Georgia, Gulfstream Delaware and Rockwell, D. 64, 67, 82, DENIES Gulf-stream Services’ motion to dismiss, D. 70, and DENIES the motion to dismiss of the United States as moot, D. 140.
So Ordered.
Notes
. There is also a motion to dismiss for failure to state a claim or, alternatively, a motion for a more definite statement filed by the United States that is pending on the docket. D. 140, The United States concedes that the motion is now moot in light of cross-claimants Spiniello Companies and Arzin Ventures, LLC having amended their third-party complaints against the United States. D. 144, 145. Given that the United States has now filed answers to- the amended complaint, D. 150, 151, the Court DENIES the United States motion to dismiss as moot. D. 140.
, The First Circuit has not clarified whether the stream of commerce plus theory applies only to the purposeful availment prong or whether it is equally applicable to the relatedness prong. D. 164 at 8 n. 2. The Supreme Court has intimated that the stream of commerce theory is tied to the purposeful availment requirement, J. McIntyre Mach., Ltd. v. Nicastro,
. The In re Lernout court also cited SGI Air Holdings II LLC v. Novartis International AG, which treats agency and alter ego as distinct theories but admits that both theories “often depend on the same facts when parent and subsidiary corporations are involved.”
. Plaintiffs suggest that the Massachusetts contacts of Gulfstream Services can be imputed to Gulfstream Georgia for the purposes of assessing purposeful availment too and, again, the Court declines to do so for the reasons explained above.
