AMENDED ORDER
This matter is before the Court on defendant D & M Sales, Inc.’s Motion to Dismiss Plaintiffs Second Amended Class
I. Background.
In her Second Amended Class Action Complaint (doc. 94), plaintiff Laura Matthews brings claims arising from her purchase of a “Pure-Ion” air purifier from a Brookstone retail store in Georgia in December 2004. Plaintiff maintains that she purchased her air purifier from defendants Brookstone, Inc. (“Brookstone, Inc.”), Brookstone Company, Inc. (“Brookstone Company”) and Brookstone Stores, Inc. (“Brookstone Stores”) (collectively, “Brookstone”), and that the unit was designed, manufactured, distributed and sold by Brookstone and defendant D & M Sales, Inc. (“D & M”). According to plaintiff, this device does not perform the functions that it was marketed and warranted to perform, inasmuch as it fails to remove dust, pollen and other impurities from the air, and instead exposes consumers to hazardous levels of ozone. On behalf of herself and purportedly on behalf of all consumers in the United States who have purchased air purifier units from Brook-stone within the last six years, Matthews advances claims against all three Brook-stone entities and D & M for fraud, negligent/reckless misrepresentation, breach of implied warranty, money had and received, unjust enrichment, conspiracy and permanent injunction, plus separate claims against the Brookstone entities for breach of contract and breach of express warranty. A hearing on plaintiffs Motion for Class Certification was conducted before Magistrate Judge Cassady on April 27, 2006, and that motion has been taken under submission.
This Court is now called upon to assess D & M’s jurisdictional status. Defendant D & M was not named in the Complaint, but was initially brought into the case by defendant Brookstone Stores as a third-party defendant on September 20, 2005. (See doc. 23.) Plaintiff followed by submitting a First Amended Complaint (doc. 52) in November 2005, naming D & M as an additional party defendant. Almost five months later, D & M moved to dismiss plaintiffs claims against it for lack of personal jurisdiction, as well as various claim-specific defects. On May 24, 2006, the undersigned entered an Order (doc. 175) determining that D & M’s personal jurisdiction defense was not waived or abandoned by virtue of the delay in asserting it, and authorizing a deposition of D & M to afford plaintiff a reasonable opportunity to investigate the jurisdictional allegations. Following that deposition, Matthews and D & M supplemented the record as to the Rule 12(b)(2) issue with some 43 pages of supplemental briefing and 26 additional exhibits.
II. Legal Standard for Personal Jurisdiction Defense.
Where a district court in its discretion decides a personal jurisdiction issue without an evidentiary hearing, it is the plaintiffs burden to establish a
prima facie
case of personal jurisdiction over a nonresident defendant.
Meier ex rel. Meier v. Sun Int’l Hotels, Ltd.,
“When a defendant challenges personal jurisdiction, the plaintiff has the twin burdens of establishing that personal jurisdiction over the defendant comports with (1) the forum state’s long-arm provision and (2) the requirements of the due-process clause of the Fourteenth Amendment to the United States Constitution.”
Lasalle Bank N.A. v. Mobile Hotel Properties, LLC,
Due process authorizes the exercise of personal jurisdiction when “(1) the nonresident defendant has purposefully established minimum contacts with the forum;” and “(2) the exercise of jurisdiction will not offend traditional notions of fair play and substantial justice.”
Carrillo,
The minimum contacts analysis varies depending on whether the type of jurisdiction asserted is general or specific. Indeed, facts supporting “[p]ersonal jurisdiction may be general, which arise from the party’s contacts with the forum state that are unrelated to the claim, or specific, which arise from the party’s contacts with the forum state that are related to the claim.”
Nippon Credit Bank, Ltd. v. Matthews,
III. Analysis of D & M Motion.
Defendant D & M seeks dismissal of this action for lack of personal jurisdiction, in addition to asserting various grounds for dismissal of particular claims for failure to state a claim upon which relief can be granted, pursuant to Rule 12(b)(6), Fed. R.Civ.P. 2 D & M maintains that specific jurisdiction is improper because there are no allegations tending to show a relationship among Matthews, D & M, the Complaint, and the State of Alabama. Furthermore, D & M asserts that general jurisdiction cannot properly be wielded against it because its connections with the forum state are too isolated and remote to satisfy the “continuous and systematic” threshold. 3 Based on information secured during jurisdictional discovery, Matthews disagrees.
A. Relevant Facts. 4
During the course of jurisdictional discovery, plaintiff has uncovered and sub
According to its articles of incorporation, D & M’s purpose was to act as a sales representative for companies in the United States and abroad.
(Id.
at 10-11.) In that regard, D & M representatives traveled across the country to meet with various national big-box retailers (in states other than Alabama) in marketing LumiPure ionizing air purifiers produced by a Chinese company called VisionTac.
(Id.
at 101-03.)
6
D & M’s arrangement with Vi-sionTac was that D & M would sell products designed, manufactured and shipped by VisionTac in China to retailers in the United States.
(Id.
at 35, 54, 56.) D & M succeeded in selling VisionTac-manufac-tured air purifiers to Sam’s Club (“Sam’s”); Bed, Bath & Beyond (“BB & B”); and Brookstone.
(Id.
at 35, 57, 114.) D & M never sold air purifiers to any other entity or person.
(Id.
at 72.) D & M never sold or marketed any products directly to consumers or end users, instead serving exclusively as a middleman between the manufacturer (VisionTac) and the retailer.
(Id.
at 56, 59, 94.) D & M did not maintain an inventory of these products for any substantial length of time.
(Id.
at 58-59, 152.) D & M outsourced a toll-free customer service telephone number to vendors in New England, so that consumers who purchased LumiPure air purifiers (but not the Brookstone variety) could obtain customer service and product support.
(Id.
at 19.) D
&
M prepared the packaging and instruction manuals, and shipped the LumiPure air purifiers to Sam’s and BB & B.
(Id.
at 57-58, 60, 94.)
7
As for D & M’s dealings with Brook-stone, the parties’ manner and course of dealing was as follows: (a) Brookstone would place an order with D & M for the VisionTac-designed air purifiers; (b) D & M would relay the order to VisionTac in China; (c) VisionTac would manufacture the product in China, and Brookstone would inspect and take possession of it at the factory in China; 9 and (d) Brookstone would send payment for the air purifiers to D & M, who in turn would settle up with VisionTac. (Id. at 36, 42-43, 91.) 10 At no time did D & M ever transfer possession of air purifiers to Brookstone at a location in Alabama. (Lozzio Aff., ¶ 8.) Upon receipt of the products, Brookstone sold them through their distribution channels as they saw fit, including catalog, Internet and retail stores. (Lozzio Dep., at 51-52.) A reasonable inference is that Brookstone Stores sold some quantity of these air purifiers in Alabama. Written agreements between D & M and Brookstone characterized the former’s role as “designer, manufacturer and distributor” of the products. (Id. at 34-35; Plaintiffs Exh. L, at 1; Plaintiffs Exh. P.) Lozzio’s testimony unequivocally refutes that description of what D & M did, and jurisdictional discovery apparently did not disclose any other evidence (at least, none set forth in plaintiffs 18 supplemental exhibits) that D & M’s function was anything other than acting as an intermediary between VisionTac and Brookstone. Although the evidence is taken in the light most favorable to Matthews at this stage of the proceedings, this discrepancy is not material to the legal issues presented in D & M’s Rule 12(b) motion.
Other than humidifiers and air purifiers, D & M did not sell any products. (Lozzio Dep., at 100.) D & M no longer sells LumiPure air purifiers, and no longer has any business relationship with Brookstone. (Id. at 72; D & M Exh. 6, at # 2.)
B. Plaintiff’s Jurisdictional Arguments.
Matthews contends that the exercise of personal jurisdiction over D & M is constitutionally permissible under both general and specific jurisdiction theories. Each will be considered in turn.
Although Matthews points to no evidence that D
&
M representatives ever set foot in Alabama, attempted to make business contacts in Alabama, or transacted any business directly with anyone in Alabama, she nonetheless maintains that D & M is subject to general jurisdiction because of its sale of LumiPure air purifiers and humidifiers. In particular, she contends that D & M “formed an undeniable link in placing the product ... into the stream of commerce by selling them to Brookstone, Sam’s Club and Bed, Bath & Beyond.” (Plaintiffs Supp. Brief, at 17.) “The stream of commerce test for jurisdiction is met if the nonresident’s product is purchased by or delivered to a consumer in the forum state, so long as the nonresident’s conduct and connection with the forum state are such that he should reasonably anticipate being haled into court there for claims arising out of that conduct.”
Molina,
Undeterred by the problems with her stream-of-commerce argument, plaintiff next seeks to impose general jurisdiction over D & M in Alabama based on the following facts; (a) D & M operated a passive website to provide information for the LumiPure products it sold to Sam’s and BB & B; (b) D & M contracted with a third party to operate a toll-free customer service line for Sam’s and BB & B customers who purchased LumiPure products; and (c) D & M trained the representatives of that customer-service vendor. (Plaintiffs Supp. Brief, at 17.) None of these facts support jurisdiction. A purely passive informational website such as that operated by D & M lacks jurisdictional significance.
See GTE New Media Services, Inc. v. BellSouth Corp.,
In summary, then, Matthews would predicate general jurisdiction over D & M on the facts that it had sales arrangements with several nationwide retailers, that some of the products it sold to such nationwide retailers were ultimately resold to Alabama consumers, that D & M had a passive informational website and a toll-free customer service line, and that D & M reasonably. must have understood that some of the air purifiers and humidifiers it was selling would be resold to end users in Alabama. But these connections are too attenuated to satisfy the rigorous “continuous and systematic” threshold for general jurisdiction. And the stream-of-commerce notion that represents Matthews’ best hope for personal jurisdiction fails because case law confines that theory to specific jurisdiction and none of the units placed in the stream of commerce by D & M are alleged in the Complaint to have harmed Matthews in Alabama.
2. Specific Jurisdiction.
Plaintiff also makes two arguments in favor of invoking specific jurisdic
Second, Matthews argues that the requisite specific jurisdiction is created by Count VIII of the Complaint, which alleges a state law conspiracy cause of action against all defendants.
13
Under the so-called “conspiracy theory of jurisdiction,” personal jurisdiction can be exercised over a defendant who lacks minimum contacts to the forum state in the traditional sense if a substantial connection exists between that forum and a conspiracy entered into by that defendant.
See, e.g., Remmes v. International Flavors & Fragrances, Inc.,
Alabama courts have recognized and adopted the conspiracy theory of personal jurisdiction.
See Ex parte United Ins. Companies, Inc.,
In response to D & M’s argument that the “overt act” requirement is not satisfied here, plaintiff does not identify an overt act that might enable conspiracy-based jurisdiction to attach. ' Instead, Matthews argues that she need not satisfy the overt act requirement as to D & M because defendant Brookstone Stores has not contested personal jurisdiction, such that conspiracy jurisdiction may be exercised over all co-conspirators because of Brookstone Stores’ overt acts. (Plaintiffs Supp. Brief, at 22 n. 8.) This bewildering contention fails on several levels. Plaintiff misapprehends the nature of D & M’s overt act objection. The point is not that plaintiff has failed to allege that D & M engaged in an overt act in Alabama, but is instead that plaintiff has failed to show that
any
alleged conspirator committed such an overt act in Alabama that harmed her. The wrong of which Matthews complains did not rest to any extent on any acts committed by any conspirators in Alabama. Furthermore, Matthews improperly conflates Brookstone Stores’ failure to file a Rule
Simply put, then, conspiracy jurisdiction requires an overt act in the forum state. For purposes of Matthews’ claims, no overt acts are alleged to have been committed in furtherance of the conspiracy in Alabama. Because the Second Amended Complaint fails to plead with particularity any overt acts within Alabama taken in furtherance of defendants’ alleged conspiracy to mislead plaintiff (a Georgia citizen) into purchasing an allegedly worthless air purifier from Brookstone in Georgia, plaintiff cannot secure specific personal jurisdiction against D & M on a conspiracy theory.
For all of these reasons, the exercise of specific jurisdiction over D & M is improper and unwarranted in this action.
IV. Conclusion.
For all of the foregoing reasons, the Motion to Dismiss (doc. 100) filed by defendant D & M Sales, Inc. is granted for lack of personal jurisdiction.
18
Plaintiffs claims against D
&
M are dismissed without prejudice for lack of minimum contacts with Alabama.
See Posner,
DONE and ORDERED this 11th day of January, 2007.
. Plaintiff argues that the undersigned should decline to give any weight to the Affidavit of Christopher Lozzio submitted by D & M as Exhibit 2 to its supplemental brief. Matthews contends that the Lozzio Affidavit should be rejected under the well-recognized principle that mere conclusory legal statements in an affidavit "are in substance legal conclusions that do not trigger a duty for Plaintiffs to respond with evidence of their own supporting jurisdiction.”
Posner v. Essex Ins. Co.,
Notes
. This Order makes certain non-substantive, technical amendments to that Order (doc. 220) entered on December 11, 2006.
. The personal jurisdiction issue must be tackled first because this Court cannot rule on D & M’s other arguments if personal jurisdiction is lacking.
See Posner v. Essex Ins. Co.,
. D & M's Supplemental Brief (doc. 197) includes numerous footnotes in a tiny font size that runs afoul of the requirements of Local Rule 5.1(a)(2), which prescribes a minimum of 12-point type and creates no exceptions for footnotes. The formatting requirements should be heeded in future submissions to this Court.
. Lozzio has a somewhat tempestuous history in this litigation. Although not originally named as a defendant, he became enmeshed in this action as a third-party defendant when Brookstone Stores filed a Third-Party Complaint (doc. 23) alleging indemnity and breach of warranty. Plaintiff followed by filing a First Amended Class Action Complaint (doc. 52) naming Lozzio as an additional party defendant with respect to her claims, as well. In December 2005, however, Brookstone Stores took a voluntary dismissal of its third-party claims against Lozzio after the latter filed a Rule 12(b) motion challenging personal jurisdiction. (See doc. 57.) Undeterred, Matthews continued to press her claims against Lozzio until, after a period of jurisdictional discovery, she consented to dismissal without prejudice of all claims against him, apparently because she conceded that his jurisdictional objections had merit. (See doc. 79.) Thus, Lozzio is no longer a party to this dispute.
. D & M applied for the trademark for the "LumiPure” name. (Id. at 55.) D & M also created a passive website (www.lumipure. com) to provide product information or "sell sheets” for LumiPure air purifiers; however, it was not possible for consumers to order the product from that website, and D & M did not sell the product directly to end users. (Id. at 59-60, 95.)
. D & M would ship products to Sam's at one of their 19 distribution centers, none of which were located in Alabama.
(Id.
at 83.) Sam’s would actually take possession of the goods at D & M's warehouse in Illinois.
(Id.
at 84; Plaintiff's Exh. R.) Lozzio estimated that D & M sold as many as 140,000 units to Sam’s during their dealings. (Lozzio Dep., at 72.) Meanwhile, with respect to BB & B, D & M would ship ordered units directly to individual stores; however, there is no evidence that
. With respect to BB & B, such an inference may not be appropriate as to LumiPure air purifiers, given that D & M’s relationship with that entity consisted of simply a test batch of less than 100 air purifiers. (Id. at 69-70.) However, Lozzio testified that D & M sold approximately 1,500 humidifiers to BB & B, making it reasonable to infer that at least some of those items ultimately reached Alabama consumers. (Id. at 76.)
. There is some evidence that another Chinese company (Hong Hwa Electric Appliance Co. Ltd.) actually manufactured the air purifiers, although VisionTac designed them and was responsible for their manufacture. (D & M Exh. 6, at # 1, 5; Burout Dep., at 36.) This discrepancy is not material to the issues presented in the instant Motion to Dismiss.
. Although D & M was in the business of marketing LumiPüre air purifiers, those sold to Brookstone were not packaged and sold as LumiPure products, but were instead labeled as Brookstone "Pure-Ion” products. (Id. at 53, 57.) The first version of the "Pure-Ion” air purifier sold by Brookstone was substantially similar to the LumiPure. (Id. at 53, 97.) Eventually, though, Brookstone designed a version two of this air purifier, modifying the outside shell to change the appearance and altering the functionality of the control panel, but retaining the internal components from the original VisionTac design. (Id. at 48-49.)
.
See Purdue Research Found, v. Sanofi-Synthelabo, S.A.,
. To hold otherwise would be to declare that operation of a website and a 1-800 number automatically subjects a company to general personal jurisdiction in every state of the Union. In the undersigned’s opinion, such a ruling would expand the notion of jurisdiction well beyond applicable constitutional parameters.
See, e.g., GTE New Media,
. Count VIII characterizes the conspiracy as follows: “Defendants jointly endeavored to design, manufacture, distribute, market, advertise and sell to Plaintiff and the Class Members 'air purifiers’ that failed to remove and could not remove impurities from the air as marketed and advertised, and charged Plaintiff and the Class Members hundreds of dollars based on said representations.” (Second Amended Complaint, ¶ 85.)
. "Whether personal jurisdiction can be obtained under a state long-arm statute on a conspiracy rationale at all is a question of state law.”
Miller Yacht Sales, Inc. v. Smith,
. The "overt act” requirement is not unique to Alabama, but is ubiquitous in the case law. Indeed, numerous courts have required pleading of an overt act in the forum state as a prerequisite to establishing personal jurisdiction on a conspiracy basis.
See, e.g., Jungquist v. Sheikh Sultan Bin Khalifa Al Nahyan,
. For reasons that are unclear, the Second Amended Complaint does not identify the state in which plaintiff purchased or exchanged her Brookstone air purifiers, nor does it offer any allegations to justify plaintiff's selection of an Alabama venue for this litigation, rather than a Georgia venue. By all appearances, plaintiff does not contend that she has incurred damage by anything that defendants did or failed to do in Alabama; rather, her alleged injuries arise from an isolated retail transaction in Georgia, and plaintiff's injuries were allegedly caused by defendants, none of whom are based in Alabama. Under the circumstances, the Court is hard-pressed to understand why no defendant sought dismissal under Rule 12(b)(3), Fed. R.Civ.P., given the lack of any apparent nexus between the forum state and this dispute.
. The law is clear that a plaintiff cannot rely on acts allegedly perpetrated against other putative class members to establish personal jurisdiction over defendants for her claims.
See Jung v. Association of American Medical Colleges,
. In light of this ruling, the Court cannot and will not reach D & M's other bases for seeking dismissal, including its Rule 12(b)(6) arguments that the Second Amended Complaint fails to state a cause of action against D & M for fraud or misrepresentation, that lack of privity between D & M and Matthews bars her breach of warranty claims, that plaintiff's unjust enrichment and money had and received claims are legally deficient because D & M never received money from her, that Matthews' conspiracy allegations are inadequate, and that her injunction claim should be dismissed because D & M no longer markets the air purifier at issue. (See doc. 101, at pp. 2-6.)
