North Atlantic Refining Limited (North Atlantic) appeals an order of the Superior Court (Fauver, J.) denying its motion to dismiss for lack of personal jurisdiction. We affirm.
I. Background
This is the latest appeal stemming from the State’s 2003 lawsuit against refiners and manufacturers that allegedly supplied New Hampshire with
gasoline containing methyl tertiary butyl ether, commonly referred to as “MTBE,” to recover damages purportedly caused by contamination of groundwater and surface waters in the state.
See State v. Hess Corp.,
MTBE is a synthetic organic compound known as an oxygenate. It was first added to gasoline in the late 1970’s.
City of Dover,
In 1990, Congress established the “reformulated gasoline program” to reduce vehicle-related air pollution. See 42 U.S.C. § 7545(k) (2006). This program set specifications for gasoline sold in certain metropolitan areas with high smog levels. The program did not require gasoline manufacturers to use MTBE or any other specific oxygenate in reformulating gasoline, but rather allowed individual refiners to decide which oxygenate to use. New Hampshire participated in the reformulated gas program in four counties, effective January 1,1995. Between 1995 and 2006, gasoline with MTBE was sold throughout the state. During this time, the State alleges that MTBE escaped into and contaminated groundwater. Effective January 1, 2007, New Hampshire banned MTBE as a gasoline additive.
North Atlantic, one of the named defendants in the State’s lawsuit, owns and operates an oil refinery in Come-by-Chance in the Province of Newfoundland and Labrador, Canada. From 1994 until October 2006, North Atlantic was part of the international Vitol group of companies. From 1994 until July 1995, North Atlantic was owned by Vitol Holdings B.V. In July 1995, Vitol Holdings B.V. transferred ownership of North Atlantic to a separate wholly owned subsidiary, Vitol Refining Group B.V. In October 2006, Vitol Refining Group B.V. sold North Atlantic to Harvest Energy Trust.
North Atlantic describes itself as a “tolling refinery,” which it defines as a refinery that “offers only the services of refining. All of the components of the products refined belong to the customer throughout the process. The refiner has no legal title to the feedstocks refined or to the finished product.” Feedstocks are raw petroleum materials, such as crude oil.
From February 1995 until March 2006, North Atlantic produced reformulated gas containing MTBE. When North Atlantic first began producing reformulated gas containing MTBE, its exclusive customer was another Vitol company, Vitol S.A., Inc., a co-defendant in this case. Beginning in August 1995 and continuing until October 2006, North Atlantic’s exclusive customer for MTBE gasoline was yet another Vitol company, Vitol Refining S.A. (Vitol Refining). Vitol Refining is a Swiss subsidiary of Vitol Refining Group B.V. Accordingly, for the times relevant to this appeal, North
Atlantic and its exclusive
Pursuant to the processing agreement between North Atlantic and Vtol Refining, North Atlantic took custody of certain feedstocks from Vtol Refining. Vtol Refining and North Atlantic then would “enter into a mutually acceptable processing confirmation” with respect to each delivery. North Atlantic would blend the feedstocks in accordance with the parties’ agreement and the applicable processing confirmation into finished petroleum products, including reformulated gasoline containing MTBE. North Atlantic was the importer of record for the feedstocks received, and the exporter of record for the petroleum products produced. Vtol Refining was the sole owner, however, of the feedstocks and the finished petroleum products.
The State alleges that North Atlantic, as a refiner of gasoline containing MTBE: (1) designed, manufactured, formulated, refined, set specifications for, exchanged, promoted, marketed and/or otherwise supplied (directly or indirectly) gasoline containing MTBE that was delivered into the state; and (2) participated in one or more enterprises to promote MTBE and/or gasoline containing it, even though reasonable alternatives were available and even though North Atlantic knew or should have known that MTBE would pollute the State’s groundwater and surface waters.
In November 2007, North Atlantic moved to dismiss the State’s complaint against it for lack of personal jurisdiction. In July 2008, the trial court allowed the parties to conduct discovery on the jurisdictional issue. Among the facts revealed as a result of this discovery were the following. North Atlantic has no employees, offices, property, bank accounts or assets in New Hampshire, and is not registered or qualified to conduct business in any United States jurisdiction. North Atlantic has never advertised or solicited sales in New Hampshire, and, since 1994, has not sold gasoline or any other products in New Hampshire. However, thirty-seven shipments of reformulated gas containing MTBE were sent from North Atlantic’s refinery to a New Hampshire location. Vitol Refining was listed as the importer for twenty-two of these shipments.
Discovery also revealed that North Atlantic understood that the primary market for the MTBE gasoline it produced was the northeastern United States. North Atlantic knew that the reformulated gas it produced “had to meet a specification mandated by the [Federal Environmental Protection Agency],” and, accordingly, North Atlantic agreed to meet that specification. North Atlantic operated a laboratory at the refinery to test the finished MTBE gasoline to ensure that these specifications were met. Additionally, North Atlantic informed an entity known as Environment Canada that ninety percent of the MTBE gas it produced was destined for the United States.
North Atlantic understood as well that there was an economic advantage to producing reformulated gas containing MTBE. In its response to Environment Canada, North Atlantic stated that “[rjeplacing the oxygen content with an alternative oxygenate [to MTBE] would result in an incremental increase in production cost. Removing oxygen from the gasoline altogether and making conventional gasoline is incrementally cheaper, but the loss of the [reformulated gas] market would result in a net economic loss.” North Atlantic further informed Environment Canada that there were “no economically viable alternatives” to MTBE.
In July 2009, the trial court denied North Atlantic’s motion to dismiss on the ground that the State had offered a prima facie showing of facts to justify exercise of specific personal jurisdiction over North Atlantic. This appeal followed.
II. Standard of Review
When evaluating a defendant’s motion to dismiss for lack of personal jurisdiction, the standard of review varies according to the procedural posture of the case.
Boit v. Gar-Tec Products, Inc.,
Under the
prima facie
standard, the inquiry is whether the plaintiff (here, the State) “has proffered evidence which, if credited, is sufficient to support findings of all facts essential to personal jurisdiction.”
Phillips v.
Prairie Eye Center,
III. Analysis
To determine whether the State has met its burden, we examine whether our long-arm statute authorizes such jurisdiction, and whether the requirements of the Federal Due Process Clause are satisfied.
See Vt. Wholesale,
Pursuant to the Federal Due Process Clause, a court may exercise personal jurisdiction over a nonresident defendant if the defendant has minimum contacts with the forum, such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.
Vt. Wholesale,
To decide whether the exercise of specific personal jurisdiction comports with due process, we examine whether: (1) the contacts relate to the cause of action; (2) the defendant has purposefully availed itself of the protection of New Hampshire’s laws; and (3) it would be fair and reasonable to require the defendant to defend the suit in New Hampshire. Id. All three factors must be satisfied in order for the exercise of jurisdiction to be constitutional, and each factor must be evaluated on a case-by-case basis. Id. at 629.
Because the State has not argued otherwise, we assume, without deciding, that there is no basis for examining North Atlantic’s minimum contacts with New Hampshire collectively with those of the other Vitol entities involved in the manufacture, distribution and sale of MTBE gasoline to New Hampshire consumers.
See Tom’s of Maine v. AcmeHardesty Co.,
A. Relatedness of Contacts to Claims
We begin by examining the first factor, whether North Atlantic’s contacts relate to the State’s cause of action. This factor involves whether the claim underlying the litigation directly arises out of or relates to the defendant’s forum-state activities.
Astro-Med, Inc. v. Nihon Kohden America, Inc.,
In this case, the State has asserted five causes of action: strict product liability based upon defective design, strict product liability based upon failure to warn, trespass, negligence and violation of the New Hampshire Consumer Protection Act, see RSA ch. 358-A. A sixth cause of action, public nuisance, was previously dismissed. All of these claims stem, at least in part, from the State’s assertion that refineries, such as North Atlantic’s, supplied MTBE gasoline, either directly or indirectly, to New Hampshire consumers, and, as a result, MTBE escaped into and contaminated New Hampshire waters.
While North Atlantic argues that it had no contacts with New Hampshire,
see Swiss American Bank,
Relying upon an earlier trial court order regarding another defendant, North Atlantic argues that the “law of the case” requires a different result. North Atlantic’s reliance upon this doctrine is misplaced. Under the “law of the case” doctrine, when an appellate court states a rule of law, it is conclusively established and determinative of the rights of the same parties in any subsequent appeal or retrial of the same case.
Merrimack Valley Wood Prods, v. Near,
B. Purposeful Availment
“To satisfy the second requirement, 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 protection of that state’s laws and making the defendant’s involuntary presence before
the state’s courts foreseeable.”
Astro-Med,
When evaluating the purposeful availment factor in the context of a products liability case, we employ the “stream of commerce plus” theory first articulated by Justice O’Connor in her plurality opinion in
Asahi Metal Industry Co. v. Superior Court,
Rather, to meet the purposeful availment factor, there must be “[a]dditional conduct of the defendant” that “indicate[s] an intent or purpose to serve the market in the forum State.”
Asahi,
Here, the State has met its burden of establishing a
prima facie
case that North Atlantic purposefully availed itself of the protection of New Hampshire’s laws. The State has submitted evidence, which we must accept
as true, that it was foreseeable to North Atlantic that its MTBE gas would likely reach New Hampshire. North Atlantic knew that the primary market for MTBE gas was the northeastern United States, which necessarily includes New Hampshire.
See Tobin v. Astra Pharmaceutical Products, Inc.,
Additionally, the State has submitted evidence, which we must accept as true, that North Atlantic did more than merely place
C. Fairness and Reasonableness
We now evaluate the final factor, whether it is fair to subject North Atlantic to suit here. We look to the five “gestalt factors,” which consider: (1) the burden on the defendant; (2) the forum State’s interest in adjudicating the dispute; (3) the plaintiffs interest in obtaining convenient and effective relief; (4) the interstate judicial system’s interest in obtaining the
most efficient resolution of controversies; and (5) the shared interest of the several States in furthering fundamental substantive social policies.
Vt Wholesale,
1. North Atlantic’s Burden (Factor One)
“Because suit in a foreign jurisdiction always burdens a foreign company, the defendant must establish that the Court’s exercise of jurisdiction would be onerous in a special, unusual, or other constitutionally significant way.”
Bartow v. Extec Screens and Crushers, Ltd.,
Companies, like North Atlantic, that do business close to the border and to the court where the case is pending, “have the lightest burden.”
Id.
at 391;
see Aristech,
In addition, a Canadian defendant litigating in the United States finds a judicial system “rooted in the same common law traditions” as that of Canada.
Theunissen v. Matthews,
2. Interest of State (Factors Two and Three)
The State of New Hampshire has a legitimate interest in adjudicating this suit because it involves the claimed contamination and pollution of State waters.
Cf. Benitez-Allende v. Alcan Aluminio do Brasil, S.A.,
3. Administration of Justice (Factor Four)
“Generally this factor is a wash, unless the Court perceives the threat of . piecemeal litigation.” Id. As the parties have not indicated that there is a risk of piecemeal litigation in this case, we do not consider this factor in our analysis. See id.
A Policy Considerations (Factor Five)
This last gestalt factor involves “the substantive social policies of the affected governments.”
Id.
New Hampshire has an interest in protecting its citizens from the contamination of State waters by MTBE gasoline, and in providing the State with a convenient forum to adjudicate its complaints.
See id.
We also consider that New Hampshire has a policy interest in providing foreign refineries, such as North Atlantic, “the incentive of liability to ensure their reasonable care” in producing and designing gasoline for distribution in the state.
Id.
Moreover, New Hampshire has an interest in preventing these same refineries “from avoiding personal jurisdiction, limiting injured parties’ recovery, and in essence blocking their own liability,” by producing their products exclusively for one related corporate entity and distributing
For all of the above reasons, therefore, we hold that North Atlantic is subject to specific personal jurisdiction in New Hampshire.
Affirmed.
