MEMORANDUM OF DECISION AND ORDER ON DEFENDANT’S MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION AND FAILURE TO STATE A CLAIM
I. INTRODUCTION
Plaintiffs, Frances M. Mullaly and Mark F. Mullaly, husband and wife, and residents of Massachusetts (collectively, “Plaintiffs”), have brought this action against Sunrise Senior Living Management, Inc. (“Sunrise Management”), SZR Norwood, LLC (“Sunrise Norwood”), and Sunrise Senior Living, LLC (“SSL, LLC”) in connection with alleged injuries Frances M. Mullaly sustained when she fell on the premises at 86 Saunders Road, Norwood, Massachusetts, a senior living community, as a result of the Defendants’ alleged failure to exercise due care in maintaining the premises. (Docket No. 15 (First Amended Complaint) at ¶ 8). Mark M. Mullaly claims loss of consortium due to his wife’s alleged injuries. (Id. at ¶¶ 31-36).
This matter is before the court on SSL, LLC’s motion to dismiss for lack of personal jurisdiction and for failure to state a claim. (Docket No. 18). SSL, LLC argues
The factual record relating to the status of SSL, LLC, and its contacts with Massachusetts, is inconsistent and ambiguous. Therefore, and for the reasons that follow, this court finds that Plaintiffs should be allowed limited jurisdictional discovery. SSL, LLC’s motion to dismiss for lack of personal jurisdiction and for failure to state a claim is DENIED WITHOUT PREJUDICE, subject to renewal, if appropriate, after completion of limited discovery as detailed below.
II. STATEMENT OF FACTS
Sunrise Management is a corporation duly organized and existing under the laws of the Commonwealth of Virginia, with its principal office located at 7902 Westpark Drive, McLean, Virginia, and has been registered as a foreign corporation in the Commonwealth of Massachusetts since 2003. (Docket No. 15 at ¶ 3). There is no dispute that Sunrise Management is a proper party to this action and that it is in the business of managing and operating assisted living communities, including Sunrise Norwood where Frances Mullaly allegedly sustained injuries. (Docket No. 19 (SSL, LLC’s Memorandum) at 4). Sunrise Norwood is a limited liability corporation duly organized and existing under the laws of the State of Delaware, with its principal office being located at 7900 Westpark Drive, 7th Floor, McLean, Virginia, and has been registered as a foreign corporation in the Commonwealth of Massachusetts since October 28, 2005. (Docket No. 15 ¶ 4). As noted above, there is also no dispute that this court has jurisdiction over Sunrise Norwood as well.
SSL, LLC is a Delaware limited liability company with its principal place of business at 7902 Westpark Drive, in McLean, Virginia, and is the parent company of Sunrise Management. (Id ¶ 5; Docket No. 19-1 (Affidavit of Marc Roder, SSL authorized representative) at ¶¶ 3-4; Docket No. 21-15 (Sunrise Senior Living website page showing corporate headquarters for SSL, LLC)). While the Plaintiffs contend that this court has jurisdiction over SSL, LLC, that Defendant has submitted the Affidavit of Marc Roder seeking to refute Plaintiffs’ jurisdictional allegations. (Docket No. 19-1). He states in relevant part that:
• SSL, LLC is the parent company to various wholly owned and separately existing subsidiary corporations. SSL, LLC’s business consists of owning interests in separately existing subsidiary corporations. SSL, LLC exercises only that degree of oversight normally expected of a parent company interested in its subsidiary corporations. (Id. ¶ 4).
• SSL, LLC’s principal place of business is in McLean, Virginia. SSL, LLC does not have any offices in any state other than Virginia. (Id. ¶ 5).
• SSL, LLC does not have any employees in any state other than Virginia. (Id. ¶ 6).
• SSL, LLC does not now and has not previously conducted business in Massachusetts and is not licensed or authorized to conduct business in Massachusetts. (Id. ¶ 7).
• SSL, LLC does not now and has not previously solicited business in Massachusetts or contracted to do business in Massachusetts. (Id. ¶ 8).
• SSL, LLC has not designated any agent to accept service of process in Massachusetts. (Id. ¶ 9).
• SSL, LLC has never owned or rented any property in Massachusetts. (Id ¶ 10).
• SSL, LLC has never maintained any bank accounts in Massachusetts. (Id ¶11).
• SSL, LLC does not and did not own, operate, manage or control the property located at 86 Saunders Road, Norwood, Massachusetts. (L± ¶ 16).
• SSL, LLC is not and was not responsible for maintenance or repairs at the property located at 86 Saunders Road, Norwood, Massachusetts. (Id. ¶ 17).
Plaintiffs assert that Mr. Roder’s affidavit is self-serving and contradicted by the documents attached to their opposition to SSL, LLC’s motion. The attached documents consist of:
• Resident/General Liability Incident Repoi't (Docket No. 21-1);
• Linked In profiles for SSL, LLC and several “Sunrise Senior Living” employees, with a hyperlink to SSL, LLC (Docket Nos. 21-2; 21-3; 21-4; 21-12);
• “Sunrise Senior Living” printed web site pages (Docket No. 21-4 through 21-11);
• Washington Post article (Docket No. 21-14); and
• the “Code of Conduct & Integrity” for “Sunrise Senior Living” (Docket No. 21-16).
As detailed below, these documents raise an issue as to whether SSL, LLC has sufficient contacts with Massachusetts and/or exerts sufficient control over Sunrise Management so that this court may properly assert jurisdiction over SSL, LLC.
According to the “Sunrise Senior Living” website, the website belongs to SSL, LLC. (Docket No. 21-9 (Copyright & Usage Statement)). Under the heading “Corporate Headquarters,” for “Sunrise Senior Living,” the website lists “Sunrise Senior Living, LLC, 7902 Westpark Drive, Mclean, VA 22102.” (Docket No. 21-15). The website also states that “Sunrise Senior Living” has 51 employment positions (as of 6/9/2016) in Massachusetts (Docket No. 21-6 at 2), four of which are for Sunrise Norwood. (Docket No. 21-6 at 3). The website enables a job applicant to apply through the website, a prospective resident to book a tour, and a resident to “Pay Your Sunrise Bill Online.” (Docket No. 21-8 at 1, 8). Sunrise Management does not have its own website.
The “Code of Conduct & Integrity” for “Sunrise Senior Living” provides:
This Code of Conduct & Integrity (this “Code”) of Sunrise Senior Living, LLC and its affiliates, operating entities, and subsidiaries (collectively, “Sunrise” or the “Company”) covers a wide range of business practices and procedures. Sunrise conducts business ethically, honestly and in full compliance with all laws and regulations. This applies to every business decision in every area of the Company worldwide. All Sunrise team members, officers and Members of the Board of Directors (“Board Members”) must conduct themselves according to thesepolicies and seek to avoid even the appearance of improper behavior.
(Docket No. 21-16 at 4 (emphasis omitted)).
Against this record, the court turns to SSL, LLC’s motion to dismiss for lack of personal jurisdiction. Additional factual details relevant to this court’s analysis are described below where appropriate.
HI. ANALYSIS
“[A] federal court generally may not rule on the merits of a case without first determining that it has' jurisdiction over the category of claim in suit (subject-matter jurisdiction) and the parties (personal jurisdiction).” Sinochem Int’l Co. Ltd. v. Malaysia Int’l Shipping Corp.,
A. Burden of Proof and Jurisdictional Discovery
“On a motion to dismiss for want of personal jurisdiction, the plaintiff ultimately bears the burden of persuading the court that jurisdiction exists.” Astro-Med, Inc. v. Nihon Kohden Am., Inc.,
Notwithstanding a plaintiffs required proffer of evidence, the First Circuit has “long held that a diligent plaintiff who sues an out-of-state corporation and who makes out a colorable case for the existence of in personam jurisdiction may well be entitled to a modicum of jurisdictional discovery if the corporation interposes a jurisdictional defense.” Swiss Am. Bank,
This court finds that Plaintiffs have presented a colorable case for personal jurisdiction by proffering evidence that has a strong bearing on the question of jurisdiction, and that additional clarity is needed. Therefore, this court exercises its broad discretion to allow Plaintiffs limited jurisdictional discovery to ascertain the contacts, if any, of SSL, LLC to Massachu
B. Personal Jurisdiction Generally
In order to exercise personal jurisdiction over a defendant, the court must “find sufficient contacts between the defendant and the forum to satisfy both that state’s long-arm statute and the Fourteenth Amendment’s Due Process Clause.” Sawtelle v. Farrell,
“Personal jurisdiction may be either general or specific.” Cossaboon v. Maine Med. Ctr.,
In the instant case, Plaintiffs assert that: SSL, LLC exercises oversight and control over the Subject Premises, as well as 11 other properties within the Commonwealth of Massachusetts, has employees in the Commonwealth, solicits employees for positions within the Corn-monwealth, and advertises its services that are performed within the Commonwealth such that it maintains sufficient contacts, ties and relations within the Commonwealth to subject itself to the jurisdiction of Massachusetts’ Courts.
(Docket No. 21 (Plaintiffs’ Memorandum) at 1). While Plaintiffs do not specify whether this assertion gives rise to specific or general jurisdiction, the only detailed argument put forward by Plaintiffs addresses the jurisdictional prongs needed to demonstrate the existence of specific jurisdiction. (Docket No. 21 at 8-11). As such, this court understands Plaintiffs argument to be one based upon specific jurisdiction and the court does not, therefore, address general jurisdiction in this context. Harlow v. Children’s Hosp,
C. Specific Jurisdiction
For purposes of the specific jurisdiction analysis, the First Circuit has “broken the minimum contacts analysis into three categories—relatedness, purposeful availment, and reasonableness[.]” Adelson v. Hananel,
First, the claim underlying the litigation must directly arise out of, or relate to, the defendant’s forum-state activities. Second, the defendant’s in-state contacts must represent a purposeful availment of the privilege of conducting activities in the forum state, thereby invoking the benefits and protections of that state’s laws and making the defendant’s involuntary presence before the state’s courts foreseeable. Third, the exercise of jurisdiction must, in light of the Gestalt factors, be reasonable.
Id. (quoting Daynard,
In the instant case, the Plaintiffs assert that this court has jurisdiction over SSL, LLC both because of its own contacts with the Commonwealth and because of the level of control it asserts over Sunrise Management. Discovery is needed under either theory.
SSL, LLC’s Relationship with Sunrise Management
Defendants do not dispute that this court can exercise specific jurisdiction over Sunrise Management. Briefly, in order to “satisfy the relatedness prong, [Plaintiffs] must show a nexus between [their] claims and [the defendant’s] forum-based activities.” A Corp. v. All Am. Plumbing, Inc.,
Finally, the third prong of the tripartite personal jurisdiction inquiry entails the analysis of the reasonableness standard or gestalt factors. Sawtelle,
The issue presented, then, is whether SSL, LLC’s relationship with Sunrise Management is such that the operation of the Norwood facility can form the basis for this court to assert jurisdiction over SSL, LLC. It is undisputed that, “as a general rule, the jurisdictional contacts of a subsidiary corporation are not imputed to the parent.” In re Lernout & Hauspie Sec. Litig.,
“mere ownership” of subsidiaries does not justify rejection of corporate identity or establish personal jurisdiction over parent); Escude Cruz v. Ortho Pharm. Corp.,
and a court can exercise jurisdiction over a nonresident parent corporation by virtue of its subsidiaries’ contacts with the forum state: “(1) if [Sunrise Management] can be considered an agent of [SSL, LLC]; (2) if [SSL, LLC] exercised a greater than normal amount of control over [Sunrise Management]; or (3) if [Sunrise Management] was a so-called ‘empty shell.’ ” In re Lernout & Hauspie Sec. Litig.,
The Plaintiffs assert that SSL, LLC has “lead the public to believe” that it was a “co-venturer” with Sunrise Management, and that the two companies were “one in the same.” (Docket No. 21 at 9).
SSL, LLC’s Own Contacts with Massachusetts
The Plaintiffs further assert that SSL, LLC itself “exercises oversight and control over the [Norwood] Premises[,]” and that this involvement is itself sufficient for this court to exercise control over the company. (See Docket No. 21 at 8-9). Given the ambiguities in the record as to which entity actually controls the Norwood facility, further discovery is warranted. Similarly, it is unclear from the existing record whether by operating an interactive website targeting Massachusetts employees and residents, SSL, LLC voluntarily and purposely availed itself of the privilege of doing business in Massachusetts so as to warrant this court’s exercise of personal jurisdiction. See Hilsinger Co. v. FBW Invs., LLC,
IV. ORDER
In accordance with the foregoing, SSL, LLC’s motion to dismiss for lack of personal jurisdiction is DENIED WITHOUT PREJUDICE to renewal, if appropriate, following the completion of jurisdictional
A Status Conference shall be held on February 3, 2017 at 3:30 P.M. SSL, LLC shall be prepared to report to the court at that time whether it intends to renew its motion to dismiss.
Notes
. The court notes that recently, the First Circuit has "suggested that Massachusetts’s long-arm statute might impose more restrictive limits on the exercise of personal jurisdiction than does the Constitution." Copia Commc'ns,
. There is no allegation that Sunrise Management is an "empty shell” corporation.
