MEMORANDUM OPINION
Denying Third-Party Defendant Reese Teleservices, Inc.’s Motion to Dismiss
I. INTRODUCTION
The plaintiff, Reese Brothers, Inc. (“Reese Brothers”), is a for-profit telemarketing company which is no longer in business. Reese Brothers claims that the United States Postal Service (“USPS” or “Postal Service”) improperly required it to pay standard postage rates for mailings associated with its solicitations for donations for its non-profit clients. The plaintiff brings various constitutional and statutory claims. Responding to a counterclaim filed by the United States, Reese Teleser-vices, Inc. (“Reese Teleservices”) filed a motion to dismiss, claiming that the court lacked subject-matter and personal jurisdiction and that the United States failed to state a claim. Because the court has subject-matter jurisdiction over the United States’ counterclaim under the Federal Debt Collection Procedures Act (“FDCPA”), because third-party defendant Reese Teleservices has sufficient minimum contacts with the United States, and because the USPS has stated a valid claim against it, the court denies Reese Teleser-vices’s motion.
II. BACKGROUND
A. Factual Background
Reese Brothers is a formerly operating for-profit telemarketing company. Compl. ¶ 9. While in operation, the plaintiff contracted with non-profit entities to provide them with telemarketing solicitation and direct mail consulting services. Id. As part of its operation, the plaintiff routinely sent mailings to prospective donors. Id. *34 Following an investigation into the plaintiffs business practices in 1998, the United States Postal Service charged the plaintiff with improperly availing itself of discounted postage rates available only to nonprofit entities and for-profit entities acting as agents of non-profit entities. Id. ¶ 14. Basically, the Postal Service concluded that the contractual arrangement between Reese Brothers and its non-profit clients rendered Reese Brothers ineligible for the discounted postage rates. Id. ¶ 16.
In response to Reese Brothers’ alleged under-payments (representing the differences between the non-profit postage rate and the standard postage rate), the Postal Service sought a total of $3,600,068.23. Id. ¶¶ 14, 20. After a lengthy administrative appeals process, including the plaintiffs request for forbearance, the Postal Service agreed to forgive $1,953,790.28 of the plaintiffs debt, reducing the amount the plaintiff owes to $1,646,277.95. Id. ¶ 29 & Ex. I.
B. Procedural Background
Attempting now to avoid any payment to the Postal Service, the plaintiff brings suit alleging 17 independent causes of action. The plaintiffs first ten causes of action allege violations of constitutional rights. 1 Compl. ¶¶ 39-48. The remaining seven counts allege that the USPS exceeded its statutory authority under the legal theories that the USPS’ conduct constitutes ultra vires, id. ¶ 49, is contrary to Congress’ intent, id. ¶ 50, and is arbitrary and capricious, id. ¶¶ 51-55.
The defendant filed a counterclaim and third-party complaint on June 27, 2006, against Reese Teleservices and TRG Holdings, LLC, seeking to collect the debts incurred by plaintiff Reese Brothers. In its third-party complaint, the USPS claims that Reese Teleservices is liable for the debts of Reese Brothers because Reese Teleservices “acquired Reese in December of 2002, and is successor in interestf.]” Third Party Compl. ¶ 53. The USPS brings its third-party complaint under 39 U.S.C. § 2601(a) and 2605, and under the FDCPA, 28 U.S.C. § 3001 et seq. Third-Party Compl. ¶ 2.
In place of an answer to the third-party complaint, Reese Teleservices filed a motion to dismiss on August 16, 2006. In its motion to dismiss, the Reese Teleservices argues that the court lacks subject-matter jurisdiction and personal jurisdiction and that the third-party complaint fails to state a claim. Third-Party Def.’s Mot. to Dismiss (“Mot.”). The court turns now resolve these matters.
III. ANALYSIS
The Court Denies the Third-Party Defendant’s Motion to Dismiss
The third-party defendant raises three distinct arguments in support of its motion to dismiss the third-party complaint. First, the third-party defendant argues that the court “lacks subject-matter jurisdiction over third-party defendant Reese Teleservices[.]” Mot. at 3. Next, the third-party defendant claims that the court lacks *35 personal jurisdiction over Reese Teleser-vices. Id. at 4. Finally, it claims that the third-party complaint fails to state a claim upon which relief can be granted. Id. at 5. For the reasons that follow, each of the arguments is unpersuasive.
A. Subject-Matter Jurisdiction
I. Legal Standard for Dismissal for Lack of Subject-Matter Jurisdiction
Federal courts are courts of limited jurisdiction and the law presumes that “a cause lies outside this limited jurisdiction.”
Kokkonen v. Gruardian Life Ins. Co. of Am.,
Because “subject-matter jurisdiction is an ‘Art. Ill as well as a statutory requirement[,] no action of the parties can confer subject-matter jurisdiction upon a federal court.’ ”
Akinseye v. District of Columbia,
Because subject-matter jurisdiction focuses on the court’s power to hear the claim, however, the court must give the plaintiffs factual allegations closer scrutiny when resolving a Rule 12(b)(1) motion than would be required for a Rule 12(b)(6) motion for failure to state a claim.
Macharia v. United States,
2. The Court Has Subject-Matter Jurisdiction Over the Claims Raised in the Third-Party Complaint
The third-party defendant argues that the court lacks subject-matter jurisdiction over the third-party complaint. Mot. at 3. A careful review of the third-party defendant’s motion indicates a fundamental legal folly. Reese Teleservices rests its claim of no subject-matter jurisdiction on the premise that the court lacks subject-matter jurisdiction “over third-party defendant Reese Teleservices,” arguing that the USPS failed to demonstrate that the third-party defendant is a successor in interest to Reese Brothers.
Id.
Federal subject-matter jurisdiction, however, rests not on the identity of the parties, or even on the merits or defenses underlying the
*36
case, but rather, on the court’s power to entertain the matter.
Akinseye,
The USPS invokes the court’s federal question jurisdiction to entertain questions arising under federal law. Third-Party Compl. ¶ 2 (citing 28 U.S.C. §§ 1331 and 1339). While § 1331 grants original jurisdiction over all federal laws and is, therefore, a catch-all for cases arising under federal legislation, § 1339 accords the court original jurisdiction specifically for cases “arising under any Act of Congress relating to the postal service.” 28 U.S.C. § 1339.
In this case, the third-party complaint alleges that Reese Teleservices is liable under the FDCPA, 28 U.S.C. § 3001, Third-Party Compl. ¶ 48-54, which provides the “exclusive civil procedures for the United States ... to recover a judgment on a debt,” 28 U.S.C. § 3001. The third-party defendant, arguing against subject-matter jurisdiction, claims that it is not legally obligated to the debts of Reese Brothers. Mot. at 3. Alas, Reese Teleser-vices’s argument illuminates the fact that the issue of whether and to what extent the FDCPA extends liability to successors in interest lies at the heart of the third-party complaint.
Powell v. McCormack,
Because the USPS’s third-party complaint raises questions of law which arise under a statute relating to the Postal Service, this court has subject-matter jurisdiction. 28 U.S.C. § 1339. Accordingly, the third-party defendant’s motion to dismiss the third-party complaint for a lack of federal subject-matter jurisdiction under Federal Rule of Civil Procedure 12(b)(1) is denied.
B. Personal Jurisdiction
1. Legal Standard for Personal Jurisdiction
On a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(2), the plaintiff has the burden of establishing a prima facie case that personal jurisdiction exists. E.g.,
Second Amendment Found. v. U.S. Conference of Mayors,
To determine if a basis for personal jurisdiction exists, the court should resolve factual discrepancies in the complaint and affidavits in favor of the plaintiff.
Crane v. N.Y. Zoological Soc.,
“To establish personal jurisdiction over a non-resident, a court must engage in a two-part inquiry.”
GTE New Media Servs.,
Second, the Due Process Clause of the Fifth Amendment requires the plaintiff to demonstrate “ ‘minimum contacts’ between the defendant and the forum establishing that ‘the maintenance of the suit does not offend traditional notions of fair play and substantial justice.’”
GTE New Media Servs.,
2. The Court Has Personal Jurisdiction over the Third-Party Defendant
Addressing personal jurisdiction, the USPS claims that pursuant to the FDCPA’s nationwide service of process provision, the court need only determine whether the third-party defendant has sufficient minimum contacts with the United States. USPS’s Opp’n at 3-5.
The USPS cites numerous cases in which courts have held that when a federal statute provides for nationwide service of process, due process requires solely that a defendant have minimum contacts with the United States.
Id.
at 4-5. The court notes that neither the Supreme Court nor the D.C. Circuit have had occasion to rule on this issue. 4 Wright & Miller, FED. PRAC.
&
PRO. § 1067.1, at 83-84 (noting that “the Supreme Court never has ruled on the issue or reconciling the minimum contacts doctrine with nationwide service of process authorized by federal statute[.] ”);
AGS Int’l Serv., S.A. v. Newmont USA Ltd.,
When statutes include congressional authorization of nationwide service of process, several federal courts have ruled that minimum contacts with the United States generally satisfies personal jurisdiction
(i.e.,
to comport with fair play and substantial justice).
Pinker v. Roche Holdings, Ltd.,
On the flip side, the court in
World Wide Minerals
concluded that a nationwide service of process provision did not constitute an alternative basis for personal jurisdiction.
World Wide Minerals Ltd. v. Republic of Kazakhstahn,
The
World Wide Minerals
court based its decision on
GTE New Media Services,
a ease wherein the D.C. Circuit ruled that the Clayton Act, which includes a nationwide service of process provision, did not confer national personal jurisdiction.
GTE New Media Serv.,
The D.C. Circuit’s ruling in GTE New Media Services concerns Section 12 of the Clayton Act. That section states that
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. The
GTE New Media Services
court reasoned that “the clause before the semi-colon relates to a supplemental basis for venue in actions under the Clayton Act; the clause after the semicolon relates to nationwide service of process in antitrust cases.”
The D.C. Circuit rejected the argument for nationwide personal jurisdiction arising from Section 12 of the Clayton Act because its “plain meaning” requires that nationwide “service is proper only when the ac *39 tion is brought in the district where the defendant resides, is found, or transacts business.” 2 Id. (quoting Herbert Hovenkamp, Personal Jurisdiction and Venue in Private Antitrust Actions in the Federal Courts, 67 Iowa L.Rev. 485, 509 (1982)).
The expanded service of process provisions of both the Clayton Act and the RICO statute are contingent on concomitant satisfaction of their venue provision.
Id.; World Wide Minerals,
The statute at play in this case, like the Clayton Act and the RICO statute, provides for nationwide service of process. 28 U.S.C. § 3004. But unlike those statutes, the FDCPA’s nationwide service of process provision is not contingent upon minimum contacts with the local district. Id. Indeed, the FDCPA’s nationwide service of process provision indicates that service may be made “in any state.” Id. § 3004(b)(1)(A).
To be sure, under the FDCPA, the debt- or may within 20 days of service, request a venue transfer “to the district court for the district in which the debtor resides.” 3 Id., § 3004(b)(2). Operation of its nationwide service of process provision, however, is not contingent on satisfaction of a separate venue provision. Instead, by implication, it suggests that absent a request for transfer, the venue in which the action is brought is appropriate. Id. For this reason, the statute at issue in this case, and that at issue in GTE New Media Services and World Wide Minerals, are distinct.
As previously stated, absent an explicit limitation to the applicability of the nationwide service of process provision, cases are legion concluding that a nationwide service of process provision confers national jurisdiction.
See, e.g., Go-Video, Inc. v. Akai Elec. Co., Ltd.,
C. Failure to State a Claim
1. Legal Standard for Failure to State a Claim
A Rule 12(b)(6) motion to dismiss tests the legal sufficiency of a complaint.
Browning v. Clinton,
Accordingly, “the accepted rule in every type of case” is that a court should not dismiss a complaint for failure to state a claim unless the defendant can show beyond doubt that the plaintiff can prove no set of facts in support of his claim that would entitle him to relief.
Warren v. Dist. of Columbia,
2. The Third-Party Defendant Has Not Demonstrated Beyond Doubt that the USPS Cannot Support its Claims Against Reese Teleservices
The third-party defendant argues that the USPS’s complaint fails to state a claim upon which relief can be granted. Def.’s Mot. at 5-7. Reese Teleservices supports this assertion by challenging the USPS’s claim that the third-party defendant is liable as a “successor-in-interest,” for the debts of Reese Brothers. Id.
“Ordinarily, a business entity which acquires the assets of another business is not liable for its predecessor’s liabilities and debts.”
Bingham v. Goldberg, Marchesano, Kohlman, Inc.,
IV. CONCLUSION
For the foregoing reasons, the court denies the third-party defendant’s motion to dismiss. An order consistent with this Memorandum Opinion is separately and contemporaneously issued on this 5th day of March, 2007.
Notes
. The court, unsure of Reese Brothers’s standing to raise the constitutional claims set forth in its complaint, ordered the plaintiff to show cause why the court should not
sua sponte
dismiss these claims. Mem. Order (Oct. 10, 2006) (relying on
Warth v. Seldin,
. The
GTE New Media
accepted outright the notion that the nationwide service of process provision conferred nationwide jurisdiction, but it solely addressed whether the venue clause must first be satisfied.
GTE New Media Serv., Inc.,
. The court notes that Reese Teleservices did not move for a transfer within 20 days of receiving notice of the current action. 28 U.S.C. § 3004.
