Before the Court are two motions
I.
Plaintiff Eddie Stewart, III ("Stewart"), a resident of Louisiana, is a commercial truck driver.
II.
The Court may require a nonresident defendant to appear before it, but its jurisdictional power is restricted by constitutional and statutory bounds. "A federal court may exercise personal jurisdiction over a nonresident defendant if (1) the forum state's long-arm statute confers personal jurisdiction over that defendant; and (2) the exercise of personal jurisdiction comports with the Due Process Clause of the Fourteenth Amendment." McFadin v. Gerber ,
Those requirements permit a court to exercise jurisdiction over a nonresident defendant when (1) that defendant establishes "minimum contacts" with the forum state, thereby "purposefully avail[ing]" itself of that state's benefits and
The U.S. Supreme Court has divided personal jurisdiction into two types-specific or "conduct-linked" jurisdiction and general or "all-purpose" jurisdiction. Daimler AG v. Bauman ,
Thus, specific jurisdiction is a claim-specific inquiry and involves cases in which the defendant's forum-related activities give rise to the facts that form the basis of the lawsuit. The Fifth Circuit has articulatеd the following analysis for determining whether specific jurisdiction over a nonresident defendant is proper:
(1) whether the defendant has minimum contacts with the forum state, i.e., whether it purposely directed its activities toward the forum state or purposefully availed itself of the privileges of conducting activities there; (2) whether the plaintiff's cause of action arises out of or results from the defendant's forum-related contacts; and (3) whether the exercise of personal jurisdiction is fair and reasonable.
Monkton Ins. Servs., Ltd. v. Ritter ,
General jurisdiction, by contrast, is available "even if the nonresident defendant's contacts with the forum state are not directly related to the cause of action." Wilson v. Belin ,
When a nonresident defendant files a motion to dismiss for lack of personal jurisdiction pursuant to Rule 12(b)(2),
III.
The Court first addrеsses whether it has personal jurisdiction over the Polar defendants. According to Stewart, the Polar defendants are subject to the Court's jurisdiction under a stream of commerce theory.
The circuits are split on the stream of commerce theory's reach after the U.S. Supreme Court's decision in Asahi Metal Industry Co., Ltd. v. Superior Court of California, Solano County ,
Applying the Fifth Circuit's analysis, the Court must first determine whether the Polar defendants established minimum contacts with Louisiana by purposefully directing their activities toward Louisiana or purposefully availing themselves of the privileges of conducting activities here. Stewаrt argues that, under a stream of commerce theory, the Polar defendants have sufficient contacts with Louisiana to subject them to the Court's jurisdiction.
The Court agrees with the Polar defendants. Under Seiferth , the trailer "reached the end of the stream" when Quality Carriers bought it.
Even assuming, however, that the trailer remained in the stream of commerce after its initial purchase, the Court would still not have personal jurisdiction over the Polar defendants. In Irvin v. Southern Snow Manufacturing, Inc. , the defendant was a Louisiana-based manufacturer of shaved-ice machines, one of which injured the plaintiff, a Mississippi resident, in Mississippi. Irvin v. S. Snow Mfg., Inc. ,
While the Court did not address whether the machine that had caused the plaintiff's injuries exited the stream of commerce after the initial sale, it "assumed without deciding that ... [the defendant] purposefully availed itself of the privilege
Stewart's stream of commerce argument is similar to the one the plaintiff made in Irvin . He contends that the Polar defendants' contacts with Louisiana-which are unrelated to the accident forming the basis of his complaint-suffice to subject them to the Court's jurisdiction. Polar Tank Trailer was certified to do business in Louisiana until early 2017 and, thus, at the time of the accident.
None of the Polar defendants' connections to Louisiana gave rise to the facts underlying this dispute. Stewart alleges the Polar defendants were negligent in thеir design and manufacture of the trailer.
Any of the Polar defendants' other contacts with Louisiana are too removed from the cause of action. Stewart indicates that Polar Corporation owns 100% of Polar Service Centers-a non-defendant that owns service facilities in Louisiana-but there is no record that any of the company's service centers worked on the trailer that exploded.
The Court ultimately concludes that it cannot exercise jurisdiction over the Polar defendants. In addition to Stewart's failure to demonstrate that the Polar defendants had sufficient minimum contacts with Louisiana, Stewart has not demonstrated that "the litigation result[s] from alleged injuries that arise out of or relate to" the defendants' forum-related contacts. Burger King ,
Because Stewart is unable to show that his alleged injuries arise out of or relate to the Polar defendants' forum-related activity, Stewart has failed to establish a prima facie case supporting the Court's jurisdiction, and the Court need not determine whether exercising jurisdiction over the Polar defendants would be unfair or unreasonable. See Eddy v. Printers House (P) Ltd. ,
IV.
The Court now addresses whether it has personal jurisdiction over Marathon. "[O]nly a limited set of affiliations with a forum will render a defendant
To be subject to the Court's jurisdiction, Marathon must be "at home" in Louisiana or "its continuous and substantial contacts with [Louisiana] must be akin to those of a local enterprise that actually is 'at home' " here. Daimler ,
On one end of the legal spectrum are cases in which the defendants' contacts with the forum are sparse and shallow and, thus, inadequate. For example, in Ezell v. Medtronic plc , the defendant-an Irish company called Medtronic plc ("Medtronic")-was sued in Louisiana over a products liability dispute. Ezell v. Medtronic plc , No. 3:17-CV-00796,
Perhaps less obvious was the Court's decision in BNSF Railway Co. v. Tyrell . In BNSF , the U.S. Supreme Court held that the defendant railroad company was not "essentially at home" in Montana despite its 2,000 miles of railroad track and over 2,000 workers there. BNSF ,
On the other end of the spectrum is Perkins v. Benguet Consolidated Mining Co. , the "textbook case of general jurisdiction." Daimler ,
Marathon's ties to Louisiana fall somewhere in between these two ends of the spectrum. Unlike the railroad company in BNSF -which the Court сoncluded operated somewhere between 6-10% of its business in the forum state-Marathon conducts significantly more of its operations in Louisiana. Between 2015 and 2017, Marathon reported that 30% of its crude oil refining capacity and 30% of its refinery-related tank storage capacity was located in Louisiana.
Ultimately, while Marathon maintains significant business operations in Louisiana, Stewart has not established a prime facie case for jurisdiction. "[I]n-state business ... does not suffice to permit the assertion of general jurisdiction over claims ... unrelated to any activity occurring in [the forum state]." BNSF ,
However, an analysis of Marathon's other business activities reveals that Marathon is not "essentially at home" here. Only 12% of Marathon's total refinery tanks are located in Louisiana.
A comparison of Marathon's contacts with Louisiana with its business operations that occur elsewhere leads the Court to conclude that Marathon is not "essentially at home" here. Furthermore, as stated herein, Marathon is not incorporated in Louisiana, and its principal place of business is not in Louisiana. Therefore, the Court does not have general jurisdiction over Marathоn in this case.
V.
Accordingly,
IT IS ORDERED that the Polar defendants' motion to dismiss is GRANTED , and Stewart's claims against the Polar defendants are DISMISSED WITHOUT PREJUDICE .
IT IS FURTHER ORDERED that Marathon's motion to dismiss is GRANTED , and Stewart's claims against Marathon are DISMISSED WITHOUT PREJUDICE .
Notes
R. Doc. Nos. 14, 33, 49.
R. Doc. No. 1, at 3.
Id. at 5.
Id.
Id. at 6.
Id.
None of the parties requested an evidentiary hearing, although the Court did require the parties to submit supplemental briefing on the personal jurisdiction issue. An evidentiary hearing is unnecessary because there is sufficient information in the record to resolve the pending motions before the Court.
If the Court had held an evidentiary hearing, Stewart would have to "demonstrate that the exercise of jurisdiction over the defendants is proper by a prepondеrance of the evidence." Irvin v. S. Snow Mfg., Inc. ,
R. Doc. No. 99, at 7-10. In their supplemental brief, the Polar defendants stress that they are distinct legal entities. R. Doc. No. 97, at 7. For the reasons discussed herein, the Court concludes that it does not have personal jurisdiction over Polar Tank Trailer, which has significantly more contacts with Louisiana than Polar Corporation. If the Court does not have jurisdiction over Polar Tank Trailer, it certainly does not have jurisdiction over Polar Corporation. As the Polar defendants note, there is no evidence to show that Polar Corporation has any independent connections to Louisiana whatsoever. R. Doc. No. 102. Regardless, because treating them collectively does not change the jurisdictional outcome, the Court will generally refer to the two Polar defendants as one entity for the sake of clarity.
R. Doc. No. 98. The Court considers this argument waived.
The stream of commerce theory "recognizes that a defendant may purposefully avail itself of the protection of a state's laws-and thereby subject itself to personal jurisdiction-by sending its goods rather than its agents into the forum." In re DePuy ,
Asahi Metal Indus. Co., Ltd. v. Superior Court of Cal., Solano Cty. ,
R. Doc. No. 99, at 10.
R. Doc. No. 102, at 5-6. As stated herein, Quality Carriers, a defendant in this case, is a Florida-based company that purchased the trailer from the Polar defendants and had it shipped to Florida. R. Doc. No. 102, at 1. Quality Carriers later moved the trailer to Louisiana and provided Stewart with the trailer so he could drive the route from Louisiana to Michigan and back-the route Stewart was driving when the explosion occurred. R. Doc. No. 99, at 8.
R. Doc. No. 102, at 6.
R. Doc No. 71-6.
R. Doc. No. 71-7, at 1; R. Doc. No. 102, at 4.
R. Doc. No. 1, at 12.
R. Doc. No. 33-1, at 5.
Id. at 1.
R. Doc. No. 80, at 2.
R. Doc. No. 33-1, at 2.
R. Doc. No. 80, at 4. Stewart argues that the Polar defendants should not be allowed to avoid liability when their trailers cause injury somewhere other than where they are manufactured simply because the trailers are sold "free on board" ("FOB"). Selling a trailer FOB means that, once the trailer passes from the seller to the buyer, titlе to and liability for the goods transfers to the buyer.
First, an FOB contract term covers liability for the merchandise being transported, and Stewart is not seeking damages for lost or damaged goods. Furthermore, the issue currently before the Court is not whether the Polar defendants are liable for the explosion, but whether the Court may properly exercise jurisdiction over them. Even if the contract for sale of the trailer had not included an FOB term, the Polar defendants still would not havе made direct contact with Louisiana because the buyer was not a Louisiana company, and the accident did not occur in Louisiana. Hence, the Court considers the FOB discussion irrelevant to the jurisdictional inquiry.
R. Doc. No. 33-1, at 5; R. Doc. No. 80, at 2.
R. Doc. No. 80, at 2. Even if one of the service centers had serviced the trailer involved in this case, the Polar defendants correctly note that Polar Service Centers, LLC's contacts with Louisiana cannot be imputed to Polar Corporation. Dickson Marine Inc. v. Panalpina, Inc. ,
R. Doc. No. 71-7.
R. Doc. No. 14-1, at 1.
R. Doc. No. 93, at 2. The Court did not request and Marathon did not provide its figures for years before 2015. Additionally, all percentages discussed herein are approximations.
Id. at 3, 7.
Id. at 8; R. Doc. No. 78, at 8.
R. Doc. No. 93, at 8.
Id. at 8.
Id. at 6-7; R. Doc. No. 78, at 11. There was media spillover into Louisiana, but Marathon estimates such spillover to account for less than 1% of its nationwide media purchases. Id.
R. Doc. No. 93, at 4-5.
