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This opinion is subject to revision before final publication in the Pacific Reporter 2016 UT 16 IN THE SUPREME COURT OF THE STATE OF UTAH CLEARONE, INC., Appellant, v. REVOLABS, INC., Appellee. No. 20141184 Filed April 1, 2016 On Direct Appeal Third District, Salt Lake The Honorable Judge Kate A. Toomey Case No. 140905197 Attorneys: James E. Magleby, Christine T. Greenwood, Jennifer Fraser Parrish, Kennedy Davis Nate, Salt Lake City, for appellant Steven W. Dougherty, Andrew R. Hale, Salt Lake City, for appellee CHIEF JUSTICE DURRANT authored the opinion of the Court, in which ASSOCIATE CHIEF JUSTICE LEE, JUSTICE DURHAM, and JUSTICE HIMONAS joined. JUSTICE JOHN A. PEARCE became a member of the Court on December 17, 2015, after oral argument in this matter, and accordingly did not participate. CHIEF JUSTICE DURRANT, opinion of the Court: Introduction ¶ 1 This case presents us with the opportunity to review and apply the United States Supreme Courtâs recent cases on both specific and general personal jurisdiction. The question is whether CLEARONE v. REVOLABS Opinion of the Court Revolabs, a corporation incorporated in Delaware with its principal place of business in Massachusetts, is subject to either specific or general personal jurisdiction in Utah. The underlying dispute arose when Revolabs allegedly interfered with ClearOneâs contractual relationship with Timothy Mackie by recruiting and hiring him while he was still employed by ClearOne. ClearOne brought suit against Revolabs, asserting claims of intentional interference with a contractual relationship, predatory hiring, and aiding and abetting a breach of fiduciary duty. The trial court granted Revolabsâs motion to dismiss for lack of personal jurisdiction, which ruling ClearOne now appeals. After a review of the United States Supreme Courtâs personal jurisdiction jurisprudence, we conclude that Revolabs has insufficient contacts with Utah to subject it to jurisdiction here and affirm. Background ¶ 2 Plaintiff ClearOne is a Utah corporation that designs, develops, and sells audio-visual equipment, with its principal place of business in Utah.1 Defendant Revolabs is a competitor that is incorporated in Delaware with its principal place of business in Massachusetts. Mr. Mackie is a former employee of ClearOne who worked for ClearOne in a technical sales position from November 2009 to September 2013. In December 2009, Mr. Mackie entered into a Confidentiality, Non-Competition, and Invention Assignment Agreement with ClearOne. This employment contract included provisions preventing Mr. Mackie from competing with ClearOne during his employment and for one year after the employment ended and prohibiting him from soliciting ClearOne customers for the same one-year period. There were also a number of other provisions relating to the confidentiality of customer information and trade secrets. Both the contract and the fiduciary duties owed by Mr. Mackie to ClearOne were to be performed, at least in part, in Utah and were governed by Utah law. Mr. Mackie resided in Texas _____________________________________________________________ 1 As this is an appeal from the dismissal of the case under rule 12(b)(2) of the Utah Rules of Civil Procedure, âwe must âaccept the factual allegations in the complaint as true and consider all reasonable inferences to be drawn from those facts in a light most favorable to the plaintiff.ââ Ho v. Jimâs Enters., Inc., 2001 UT 63, ¶ 6, 29 P.3d 633 (citation omitted). The recitation of the facts complies with this standard. 2 Cite as: 2016 UT 16 Opinion for Voting during these events, and the only allegations as to where Mr. Mackie performed his work for ClearOne indicates that he worked in Texas. ¶ 3 In August 2013, Mr. Mackie, while still residing in Texas, contacted individuals at Revolabs about leaving ClearOne to work for Revolabs. Over the next several weeks, Mr. Mackie communicated with several individuals about this potential transition through calls, video chats, and emails. These individuals included: Curtiss Singleton, Revolabsâs director of sales for the Americas, who was located in Georgia; Marc Cremer, Revolabsâs chief operating officer, who was located in Massachusetts; Daniel Kleman, Revolabsâs field sales engineer for its western region, who was located in California; and Jonathan McGarry, Revolabsâs field sales engineer for its eastern region, who was located in Massachusetts. After several discussions and interviews, Mr. Cremer offered Mr. Mackie a position at Revolabs on September 3, 2013, which Mr. Mackie accepted. Mr. Mackie executed an employment and confidentiality agreement with Revolabs on September 6, 2013, and tendered his resignation to ClearOne on September 9, 2013, stating that his last day would be September 20, 2013. Mr. Mackie began working for Revolabs on September 23, 2013. No part of these events took place in Utah. ¶ 4 On December 19, 2013, ClearOne filed suit against Mr. Mackie in Utah district court for, inter alia, breach of the employment agreement, which litigation remains pending in a separate action. After learning of Revolabsâs involvement with and encouragement of Mr. Mackieâs resignation, ClearOne filed suit against Revolabs in Utah district court on July 30, 2014. ClearOne sought damages and an injunction for Revolabsâs alleged tortious interference with Mr. Mackieâs employment contract, predatory hiring under the Utah Unfair Competition Act, and aiding and abetting Mr. Mackieâs alleged breach of his fiduciary duties to ClearOne. ¶ 5 Prior to discovery being conducted, Revolabs filed a motion to dismiss under Utah Rule of Civil Procedure 12(b)(2) for lack of personal jurisdiction. ClearOne opposed the motion and filed its own motion seeking jurisdictional discovery in order to determine whether Revolabs should be subject to general jurisdiction in Utah. As evidence in support of its claim that Revolabs had systematic and continuous contacts with Utah, ClearOne pointed to Revolabsâs publicly accessible website; the fact that Revolabs is included in an online directory of Utah businesses maintained by the Utah Department of Workforce Services (though the site states that Revolabs currently has no employees in Utah); and a bid solicitation 3 CLEARONE v. REVOLABS Opinion of the Court by Utah Valley University for audio-visual equipment, including equipment sold by Revolabs. Revolabs responded to this evidence with an affidavit stating that it âdoes not maintain or conduct any business operations in the state of Utah and does not direct any advertising into Utah; it has no offices in Utah, owns no property in Utah[,] and maintains no employees in Utah.â ClearOne has not disputed this statement. The trial court denied ClearOneâs request for discovery and granted Revolabsâs motion to dismiss. ClearOne appealed the trial courtâs decision. Standard of Review ¶ 6 ClearOne raises two claims on appeal: first, the trial court erred in dismissing Revolabs for lack of specific personal jurisdiction. â[T]he propriety of a 12(b)(2) dismissal is a question of law, [and] we give the trial courtâs ruling no deference and review it under a correctness standard.â2 Second, the trial court erred in denying discovery to determine whether Revolabs was subject to general personal jurisdiction in Utah. We review the trial courtâs decision on this issue for abuse of discretion.3 We have jurisdiction pursuant to Utah Code section 78A-3-102(3)(j). Analysis ¶ 7 âThe authority of the state to hale a nonresident into a state court hinges on the ability to establish personal jurisdiction.â4 And a courtâs exercise of personal jurisdiction over a party must be âconsistent with the due process protections of the Fifth and Fourteenth Amendments to the United States Constitution.â5 There _____________________________________________________________ 2Ho v. Jimâs Enters., Inc., 2001 UT 63, ¶ 6, 29 P.3d 633 (citation omitted). 3 See Sizova v. Natâl Inst. of Standards & Tech., 282 F.3d 1320, 1326 (10th Cir. 2002). 4 Pohl, Inc. of Am. v. Webelhuth, 2008 UT 89, ¶ 9, 201 P.3d 944. 5 Osborne v. Adoption Ctr. of Choice, 2003 UT 15, ¶ 20, 70 P.3d 58. The exercise of jurisdiction must also satisfy our long-arm statute. See Anderson v. Am. Socây of Plastic & Reconstructive Surgeons, 807 P.2d 825, 827 (Utah 1990). Because âour legislature has directed us to construe [the long-arm statute] âso as to assert jurisdiction over nonresident defendants to the fullest extent permitted by the due process clause,ââ and as the parties have not argued over the applicability of the statute, we can âassume the application of the (Continued) 4 Cite as: 2016 UT 16 Opinion for Voting are two categories of personal jurisdiction, specific and general jurisdiction, both of which are implicated in this case. 6 ClearOne first argues that the trial court erred in dismissing Revolabs for lack of specific personal jurisdiction. Alternatively, ClearOne claims that the court abused its discretion by denying ClearOne the opportunity to conduct discovery in order to determine whether Revolabs should be subject to general personal jurisdiction. Below, we discuss these two issues in turn and affirm. I. Revolabs Is Not Subject to Specific Personal Jurisdiction in Utah ¶ 8 â[S]pecific personal jurisdiction gives a court power over a defendant only with respect to claims arising out of the particular activities of the defendant in the forum state . . . .â7 The United States Supreme Court has interpreted the Due Process Clause of the Fourteenth Amendment to permit a state to exercise specific personal jurisdiction over a party only when the party has âminimum contacts with [the state] such that the maintenance of the suit does not offend âtraditional notions of fair play and substantial justice.ââ8 âIn judging minimum contacts, a court properly focuses on âthe relationship among the defendant, the forum, and the litigation.ââ9 The Supreme Court recently clarified the kind of contacts with a state that satisfy this test in Walden v. Fiore.10 We first address Walden and its impact on the âeffectsâ test derived from the Supreme Courtâs decision in Calder v. Jones. In so doing, we recognize that the Supreme Court has rejected a particular approach to the minimum contacts test, which limits our decision in Pohl, Inc. of America v. Webelhuth. We then apply the principles found in Walden to the present case, which lead us to the conclusion that the trial court was correct in dismissing Revolabs for lack of personal jurisdiction. statute[ ]and go straight to the due process issue.â Id. (citation omitted). 6 See Pohl, 2008 UT 89, ¶ 9. 7 Pohl, Inc. of Am. v. Webelhuth, 2008 UT 89, ¶ 10, 201 P.3d 944 (alteration in original) (citation omitted) 8Intâl Shoe Co. v. Wash., Office of Unemployment Comp. & Placement, 326 U.S. 310, 316 (1945) (citation omitted). 9 Calder v. Jones, 465 U.S. 783, 788 (1984) (citation omitted). 10 134 S. Ct. 1115 (2014). 5 CLEARONE v. REVOLABS Opinion of the Court A. Walden Narrowed the Broad Interpretation of Calder Adopted in Pohl ¶ 9 ClearOne relies almost exclusively on our 2008 decision in Pohl, Inc. of America v. Webelhuth in support of its argument that Revolabs is subject to specific personal jurisdiction in Utah. Pohl in turn relied on a 1984 Supreme Court case, Calder v. Jones. The initial issue raised by the parties is whether the Supreme Courtâs decision in Walden altered or clarified Calder such that Pohlâs interpretation of Calder is no longer good law. Below, we address each case in the order it was decided and conclude that Walden, while not overruling Calder, significantly altered the interpretation of Calder that supported our decision in Pohl. Accordingly, the broad interpretation of the âeffectsâ test derived from Calder and adopted by us in Pohl has been narrowed by Walden. 1. Calder v. Jones ¶ 10 In Calder v. Jones, the Supreme Court was called on to decide whether two individuals, a reporter and an editor employed by the National Enquirer magazine, were subject to specific personal jurisdiction in California for their part in writing and editing an allegedly defamatory article.11 The relevant contacts linking the defendants to California were that the Enquirer circulated about 600,000 copies in California, and â[t]he allegedly libelous story concerned the California activities of a California resident,â âimpugned the professionalism of an entertainer whose television career was centered in California,â and âwas drawn from California sources.â12 Further, âthe brunt of the harm, in terms both of respondentâs emotional distress and the injury to her professional reputation, was suffered in California.â13 âIn sum, California [was] the focal point both of the story and of the harm suffered.â14 The Supreme Court accordingly held that jurisdiction was âproper in California based on the âeffectsâ of their Florida conduct in California.â15 _____________________________________________________________ 11 Calder, 465 U.S. at 784â86. The article suggested that the respondent, Shirley Jones, drank so heavily that it interfered with her obligations as a television entertainer. Id. at 788 n.9. 12 Id. at 785, 788â89. 13 Id. at 789. 14 Id. 15 Id. 6 Cite as: 2016 UT 16 Opinion for Voting ¶ 11 As the Ninth Circuit has noted, â[s]ubsequent cases have struggled somewhat with Calderâs import,â as the âeffectsâ language does not clarify how foreseeable the effects must be or to what degree the effects must impact the plaintiff or the forum state in order to give rise to specific jurisdiction.16 One interpretation of Calder is a minimum contact analysis known as the âeffectsâ test.17 This test has three prongs: âthe defendant must have (1) committed an intentional act, which was (2) expressly aimed at the forum state, and (3) caused harm, the brunt of which is suffered and which the defendant knows is likely to be suffered in the forum state.â18 It was this âeffectsâ test, interpreted broadly, that we relied upon in Pohl to reverse the trial courtâs determination that jurisdiction was improper.19 2. Pohl, Inc. of America v. Webelhuth ¶ 12 Pohl involved a construction project in Missouri overseen by a Missouri general contractor.20 Pohl, a Utah corporation, was contracted to manufacture and supply panels to be installed on the exterior of the building.21 Disputes arose over the âproduction, delivery, and payment schedule for the panels,â leading to Pohlâs contract being terminated.22 Pohl sued the general contractor and various other subcontractors and individuals, all of whom were based in Missouri, alleging that they had conspired to interfere with _____________________________________________________________ 16 Bancroft & Masters, Inc. v. Augusta Natâl Inc., 223 F.3d 1082, 1087 (9th Cir. 2000). 17 At least âtwo primary tests have emergedâ from Calder: a ârestrictive viewâ that requires proof âthat the defendant target[ed] the forum state, not merely a forum resident,â and a âbroad view,â which only requires proof âthat the defendant target[ed] a plaintiff known to reside in the forum state.â Lee Goldman, From Calder to Walden and Beyond: The Proper Application of the âEffects Testâ in Personal Jurisdiction Cases, 52 SAN DIEGO L. REV. 357, 365â66 (2015). The Ninth Circuitâs âeffectsâ test, which is the approach we adopted in Pohl, is the âbroad view.â Id. at 366. 18 Bancroft & Masters, 223 F.3d at 1087. 19 See 2008 UT 89, ¶¶ 25â30. 20 Id. ¶ 3. 21 Id. 22 Id. ¶ 4. 7 CLEARONE v. REVOLABS Opinion of the Court Pohlâs contract.23 The district court dismissed the defendants for lack of personal jurisdiction, concluding that the defendantsâ actions âwere performed exclusively in the State of Missouriâ and, accordingly, there was âno nexus between Defendantsâ contacts with Utah and Plaintiffâs claims,â and the court of appeals affirmed.24 We reversed and remanded.25 ¶ 13 In reversing the court of appeals, we adopted a broad formulation of the âeffectsâ test. We first discussed Calder, where jurisdiction in California was appropriate because âCalifornia [was] the focal point both of the [defamatory] story and of the harm suffered.â26 We did not discuss any of the specific contacts that were present in Calder, such as the extensive circulation of the magazine in California or the defendantsâ use of California sources in writing the story. We noted only that the defendants in that case âdid not go to California to work on the story.â27 We summarized Calder as permitting jurisdiction â[b]ecause the reporters knew that their tort would cause harm in California.â28 ¶ 14 We then reviewed the âeffectsâ test derived from Calder, which âmay be satisfied if the defendant is alleged to have (1) committed an intentional act; (2) expressly aimed at the forum state; (3) causing harm, the brunt of which is sufferedâand which the defendant knows is likely to be sufferedâin the forum state.â29 In describing how these prongs could be satisfied, we discussed a Ninth Circuit case, Harris Rutsky & Co. Insurance Services v. Bell & _____________________________________________________________ 23 Id. ¶¶ 4â6. 24 Id. ¶¶ 6â7. 25 Id. ¶ 31. We did not actually determine that jurisdiction was proper because we had announced a new standard for determining personal jurisdiction in conspiracy cases and remanded for further proceedings. We also reversed the trial court and court of appealsâ conclusion that our long-arm statute did not permit jurisdiction, an issue not raised in this case. See id. ¶¶ 12â22. 26 Id. ¶ 26 (quoting Calder, 465 U.S. at 789). 27 Id. 28 Id. 29Id. ¶ 27 (quoting Harris Rutsky & Co. Ins. Servs. v. Bell & Clements Ltd., 328 F.3d 1122, 1131 (9th Cir. 2003)). 8 Cite as: 2016 UT 16 Opinion for Voting Clements Ltd.30 In that case, the second prong of the effects testâ whether the defendant âexpressly aimedâ conduct at the forum stateâwas satisfied because âthe defendants knew that the plaintiff corporation was a California resident, and so the alleged acts were expressly aimed at California.â31 The third prongâwhether the brunt of the harm was suffered in the forum stateâwas also satisfied because âthe plaintiff was a California corporation with its principal place of business in California, and the brunt of the harm was therefore felt in California.â32 ¶ 15 Thus, although our formulation of the âeffectsâ test focused on a defendantâs connections to the forum state, our description of how the test could be satisfied centered on a defendantâs connections with a plaintiff who resided in the forum state. Pohlâs broad interpretation of Calder and the âeffectsâ test permitted jurisdiction over a defendant so long as the defendantâs tortious act targeted a plaintiff known to be a resident of the forum and the injury was suffered by the plaintiff in the forum state.33 Although we did not apply this test to the defendants in Pohl, we did hold that the defendantsâ actionsânone of which took place in Utah and none of which had any impact in Utah other than the alleged injury to the plaintiffâcould potentially satisfy the minimum contacts analysis.34 _____________________________________________________________ 30 328 F.3d 1122 (9th Cir. 2003). 31 Pohl, 2008 UT 89, ¶ 27. 32 Id. 33 See id. ¶ 25 (âThe premise of the conclusion reached by both the court of appeals and the trial court was that because all of the defendantsâ allegedly tortious actions took place in Missouri, no minimum contacts existed. This approach erroneously ignores the fact that a tort is incomplete without an injury, and thus the place of injury is an important component of the minimum contacts analysis. Moreover, âwithin the rubric of â[purposeful] availmentâ the Court has allowed the exercise of jurisdiction over a defendant whose only âcontactâ with the forum state is the âpurposeful directionâ of a foreign act having effect in the forum state.ââ (citation and footnote omitted)). 34See id. ¶ 32 (â[W]e believe that jurisdiction can be established over the defendants under the Calder âeffectsâ test by showing that the defendants were engaged in a conspiracy that was expressly aimed at Utah and that the conspiracy caused harm in Utah . . . .â). (Continued) 9 CLEARONE v. REVOLABS Opinion of the Court Ultimately, Pohl suggests that there is no need to examine whether the defendant had any contacts with the forum state besides the injury felt by the plaintiff, because any intentional tort committed against a resident of a forum state can be of itself a sufficient minimum contact. The question before us today is whether, post- Walden, this formulation of Calder and the âeffectsâ test remains viable. 3. Walden v. Fiore ¶ 16 In Walden, the Supreme Court was asked âto decide whether a court in Nevada may exercise personal jurisdiction over a defendant on the basis that he knew his allegedly tortious conduct in Georgia would delay the return of funds to plaintiffs with connections to Nevada.â35 The plaintiffs were professional gamblers who, when returning from a gambling trip in Puerto Rico with almost $100,000 in cash, were stopped by Mr. Walden, a DEA agent, in Georgia.36 Mr. Walden seized the money and, after plaintiffs returned to Nevada, allegedly drafted and submitted a false probable cause affidavit.37 Plaintiffs filed a Bivens suit against Mr. Walden in Nevada, seeking money damages for the alleged violation of their Fourth Amendment rights.38 The federal district court dismissed the suit, concluding âthat [Mr. Waldenâs] search of [plaintiffs] and his seizure of the cash in Georgia did not establish a basis to exercise personal jurisdiction in Nevada,â because the fact that âpetitioner caused harm to respondents in Nevada while knowing they lived in Nevadaâ was insufficient to confer jurisdiction.39 The Ninth Circuit reversed, holding that Mr. Walden ââexpressly aimedâ his submission of the allegedly false affidavit at Nevada by submitting the affidavit with knowledge that it would Justice Wilkins dissented from the majority opinion on essentially these grounds. See id. ¶ 35 (Wilkins, J., dissenting) (âIn this matter, the actions complained of, while clearly impacting the Utah plaintiff, just as clearly occurred in Missouri. None of the acts complained of occurred in Utah.â). 35 134 S. Ct. at 1119. 36 Id. 37 Id. at 1119â20. 38 Id. at 1120. 39 Id. 10 Cite as: 2016 UT 16 Opinion for Voting affect persons with a âsignificant connectionâ to Nevadaâ40âthe same âeffectsâ test we adopted from the Ninth Circuit in Pohl. ¶ 17 The Supreme Court then reversed the circuit courtâs decision, holding that the Ninth Circuitâs approach âimpermissibly allows a plaintiffâs contacts with the defendant and forum to drive the jurisdictional analysis.â41 The Court, eschewing a rigid test, looked to â[t]wo related aspectsâ of âthe relationship among the defendant, the forum, and the litigationâ to determine jurisdiction42: whether âthe relationship . . . arise[s] out of contacts that the âdefendant himselfââ creates,â and whether those contacts are âwith the forum State itself, not . . . with persons who reside there.â 43 The first aspect means that jurisdiction cannot be predicated âon the âunilateral activityâ of a plaintiff.â44 And the second means that âa defendantâs relationship with a plaintiff or third party, standing alone, is an insufficient basis for jurisdiction.â45 Indeed, the Court repeatedly emphasized that âthe plaintiff cannot be the only link between the defendant and the forum.â46 ¶ 18 The Court turned to Calder as an example of these principles.47 It stated that, â[a]lthough we recognized that the defendantsâ activities âfocus[ed]â on the plaintiff, our jurisdictional inquiry . . . examined the various contacts the defendants had created with California (and not just with the plaintiff) by writing the allegedly libelous story.â48 The Supreme Court clarified that jurisdiction in Calder was possible not because the plaintiff suffered an injury while residing in California, but because âthe injury to the plaintiffâs reputation in the estimation of the California publicâ necessarily âconnected the defendantsâ conduct to California, not just _____________________________________________________________ 40 Id. 41 Id. at 1125. 42 Id. at 1121â22 (citation omitted). 43 Id. at 1122 (citation omitted). 44 Id. at 1123 (citation omitted). 45 Id. 46 Id. at 1122. 47 Id. at 1123. 48 Id. (second alteration in original) (citation omitted). 11 CLEARONE v. REVOLABS Opinion of the Court to a plaintiff who lived there.â49 âThe strength of that connection was largely a function of the nature of the libel tort,â which requires âpublication to third persons.â50 âThat connection, combined with the various facts that gave the article a California focus,â such as the plaintiffâs work as a California television entertainer and the defendantsâ reliance on California sources in writing the story, permitted jurisdiction.51 Thus, at least according to the Supreme Court in Walden, âCalder made clear that mere injury to a forum resident is not a sufficient connection to the forum.â52 ¶ 19 After clarifying Calderâs holding, the Court looked to the facts of the case before it, stating that âno part of [Mr. Waldenâs] course of conduct occurred in Nevada.â53 Mr. Walden ânever traveled to, conducted activities within, contacted anyone in, or sent anything or anyone to Nevada.â54 Thus, Mr. Walden âformed no jurisdictionally relevant contacts with Nevadaâ because none of the âdefendantâs actions connect him to the forum.â55 ¶ 20 The Court then directed its attention to the Ninth Circuitâs use of the âeffectsâ testâthe same broad test we adopted in Pohl. In so doing, the Court gave guidance on how the second and third prong of the test should be employed. First, as to âexpress aiming,â the Court rejected the Ninth Circuitâs finding of minimum contacts based on Mr. Waldenâs âdirect[ion] [of] his conduct at plaintiffs whom he knew had Nevada connections.â56 According to the Court, the Ninth Circuitâs approach âimproperly attributes a plaintiffâs forum connections to the defendant and makes those connections âdecisiveâ in the jurisdictional analysis.â57 Thus, the Court clarified that the âexpress aimingâ prong of the âeffectsâ test could not be satisfied simply by showing that the defendant targeted an entity known to be a resident of the forum. _____________________________________________________________ 49 Id. at 1124 (first emphasis added). 50 Id. 51 Id. 52 Id. at 1125. 53 Id. at 1124. 54 Id. 55 Id. 56 Id. at 1125. 57 Id. 12 Cite as: 2016 UT 16 Opinion for Voting ¶ 21 Then, as to the âbrunt of the injuryâ prong, the Court rejected the plaintiffsâ argument that jurisdiction was proper because they âsuffered the âinjuryâ caused by [Mr. Waldenâs] allegedly tortious conduct . . . while they were residing in the forum.â58 It explained that âan injury is jurisdictionally relevant only insofar as it shows that the defendant has formed a contact with the forum State.â59 And in that case, the plaintiffsâ injury was ânot the sort of effect that is tethered to Nevada in any meaningful way,â as the injury was felt in Nevada ânot because anything independently occurred there, but because Nevada is where respondents chose to beâ when the injury occurred.60 Thus, â[t]he proper question is not where the plaintiff experienced a particular injury or effect but whether the defendantâs conduct connects him to the forum in a meaningful way.â61 ¶ 22 Waldenâs interpretation of Calder and discussion of the appropriate minimum contacts analysis has significantly narrowed the broadly formulated âeffectsâ test we adopted in Pohl.62 As discussed, our decision in Pohl adopted a broad interpretation of the âeffectsâ test that permitted jurisdiction solely on the basis of a defendantâs connections with a plaintiff who resided in the forum state. Although it may still be true that jurisdiction can be premised on the defendantâs ââpurposeful directionâ of a foreign act having effect in the forum state,â63 Walden has clarified that the âeffect in the forum stateâ must be more than an effect on a plaintiff in the forum state. Other courts faced with this question have come to the same conclusion.64 Thus, although Walden did not overrule Calder, it _____________________________________________________________ 58 Id. 59 Id. 60 Id. 61 Id. 62 See Pohl, 2008 UT 89, ¶¶ 26â27. 63 Id. ¶ 25 (emphases omitted) (citation omitted). 64 See, e.g., Maxitrate Tratamento Termico E Controles v. Super Sys., Inc., 617 Fed. Appx. 406, 408 (6th Cir. 2015) (âHedman relies on language in Calder suggesting that, if a defendant knows that its intentional acts will cause effects in a state, then that state can exercise jurisdiction over the defendant. . . . But the Supreme Court rejected that theory of personal jurisdiction (and that interpretation of Calder) last year in Walden.â (citation omitted)); Advanced Tactical (Continued) 13 CLEARONE v. REVOLABS Opinion of the Court clarified that the effects of an alleged tort must be felt by more than just a plaintiff with significant contacts with the forum stateâthey must be felt in some broader sense by the forum state itself, as was the case with the defamatory story in Calder.65 Under Walden, the proper application of the âeffectsâ test looks beyond both the plaintiffâs connections to the forum state and the plaintiffâs injury to whether the defendant has âcreate[d] a substantial connection with the forum State.â66 ¶ 23 Thus, to the extent that Pohl adopted an interpretation of Calder that permitted a plaintiff to be âthe only link between the defendant and the forum,â its interpretation is inconsistent with Walden.67 Instead, we must look to whether the defendant has minimum contacts with Utah, not just with a plaintiff residing in Utah. We turn now to the application of these principles to the facts of this case. B. Under Waldenâs Clarified Interpretation of Calder, Revolabs Lacks Sufficient Minimum Contacts with Utah to Subject It to Specific Personal Jurisdiction ¶ 24 Having discussed how Pohlâs broad formulation of the âeffectsâ test has been narrowed by the Supreme Courtâs decision in Walden, we turn now to a discussion of whether, under Walden, Revolabs should be subject to personal jurisdiction in Utah. We conclude that because Revolabsâs only alleged contact with Utah is the effects its alleged tortious conduct had on ClearOne, and because the alleged tort does not otherwise create meaningful contacts with Utah, Revolabs is not subject to personal jurisdiction in Utah. Ordnance Sys., LLC v. Real Action Paintball, Inc., 751 F.3d 796, 802 (â[A]fter Walden there can be no doubt that âthe plaintiff cannot be the only link between the defendant and the forum.â . . . Any decision that implies otherwise can no longer be considered authoritative.â (citation omitted)). 65 See Maxitrate, 617 Fed. Appx. at 408â09; see also Picot v. Weston, 780 F.3d 1206, 1214â15 (9th Cir. 2015) (holding that there was no jurisdiction because the tort connected the defendant only to the plaintiff, not the forum). 66 Walden, 134 S. Ct. at 1121. 67 Id. at 1122â23 (â[A] defendantâs relationship with a plaintiff or third party, standing alone, is an insufficient basis for jurisdiction.â). 14 Cite as: 2016 UT 16 Opinion for Voting ¶ 25 As stated, in order for a court to exercise personal jurisdiction over a defendant, the defendant must have âminimum contacts with [the state] such that the maintenance of the suit does not offend âtraditional notions of fair play and substantial justice.ââ68 In the context of an intentional tort, we apply the âeffectsâ test, which looks to whether âthe defendant is alleged to have (1) committed an intentional act; (2) expressly aimed at the forum state; (3) causing harm, the brunt of which is sufferedâand which the defendant knows is likely to be sufferedâin the forum state.â69 ¶ 26 When applying the âeffectsâ test, however, we must keep in mind the two guiding principles of Walden: whether âthe relationship [between the defendant, the litigation, and the forum] . . . arise[s] out of contacts that the âdefendant himselfââ creates,â and whether those contacts are âwith the forum State itself, not . . . with persons who reside there.â70 The Court in Walden repeatedly cautioned that âthe plaintiff cannot be the only link between the defendant and the forum,â71 âa plaintiffâs contacts with the defendant and forum [cannot] drive the jurisdictional analysis,â72 and â[t]he proper question is not where the plaintiff experienced a particular injury or effect but whether the defendantâs conduct connects him to the forum in a meaningful way.â 73 Further, the Court âreiterate[d] that the âminimum contactsâ inquiry principally protects the liberty of the nonresident defendant, not the interests of the plaintiff.â74 Applying these principles to the case at hand, we conclude that Revolabs has not created any jurisdictionally relevant contacts with Utah and cannot be subject to personal jurisdiction here. ¶ 27 The relevant facts are these: ClearOne is a Utah corporation with its principal place of business in Utah. ClearOne and Mr. Mackie entered into an employment contract for a technical sales position that was governed by Utah law, though ClearOne has not _____________________________________________________________ 68 Intâl Shoe, 326 U.S. at 316 (citation omitted). 69 Pohl, 2008 UT 89, ¶ 27 (citation omitted). 70 Walden, 134 S. Ct. at 1122 (citation omitted). 71 Id. 72 Id. at 1125. 73 Id. 74 Id. at 1125 n.9. 15 CLEARONE v. REVOLABS Opinion of the Court identified the location where this contract was executed. ClearOne has also not described the location or region in which Mr. Mackie worked and sold ClearOne products, except for a reference to a trade show located in Texas. It is clear, however, that during the time period relevant to the complaint, Mr. Mackey resided in Texas. While residing (and presumably working) in Texas, Mr. Mackie contacted Revolabs about the possibility of working for it instead of ClearOne. A number of conversations and other communications followed, exchanged between Mr. Mackie (in Texas) and Mr. Singleton (in Georgia), Mr. Cremer (in Massachusetts), Mr. Kleman (in California), and Mr. McGarry (in Massachusetts). As a result of these communications, Mr. Mackie eventually resigned from ClearOne and began working for Revolabs outside of Utah, which ClearOne alleges was in violation of Mr. Mackieâs duties under the contract and as a fiduciary of ClearOne. These actionsâ the alleged interference with a Utah contract and employment relationshipâare the only contacts that Revolabs is alleged to have with Utah as it relates to ClearOneâs claims. ¶ 28 Under these facts, we do not see any way in which Revolabs expressly aimed its actions at Utah such that it created sufficient minimum contacts with the state. ClearOne has not alleged that Revolabs was attempting to âenter[] a contractual relationship that âenvisioned continuing and wide-reaching contactsââ in Utah, nor that it was ââdeliberately exploi[ting]â a marketâ in Utah.75 ClearOne has also not alleged that Revolabs physically entered Utah âin person or through an agent, goods, mail, or some other means.â76 To be sure, ClearOne has alleged that Revolabs intentionally injured ClearOne with full knowledge that ClearOne was a Utah corporation. But the Supreme Court has expressly rejected knowledge of a plaintiffâs forum connections as a sufficient jurisdictional basis.77 To permit jurisdiction because of these _____________________________________________________________ 75 Id. at 1122 (citations omitted). 76 Id. 77 Id. at 1124â25 (âRather than assessing petitionerâs own contacts with Nevada, the Court of Appeals looked to petitionerâs knowledge of respondentsâ âstrong forum connections.â In the courtâs view, that knowledge, combined with its conclusion that respondents suffered foreseeable harm in Nevada, satisfied the âminimum contactsâ inquiry. This approach to the âminimum contactsâ analysis impermissibly allows a plaintiffâs contacts with the defendant and (Continued) 16 Cite as: 2016 UT 16 Opinion for Voting allegations would return to the broad interpretation of the âeffectsâ test that was rejected in Walden.78 ¶ 29 As to the âbrunt of the injuryâ prong, the alleged injury resulting from Revolabsâs alleged conduct âis jurisdictionally relevant only insofar as it shows that the defendant has formed a contact with the forum State.â79 Otherwise, âmere injury to a forum resident is not a sufficient connection to the forum.â80 In Calder, the injury was jurisdictionally relevant because the publication of the allegedly libelous article necessarily connected the defendants to California.81 As the Wyoming Supreme Court described, âthe alleged wrongdoing, libel, was itself tied to the location into which the words were âsent.ââ82 The question here is whether there is something âabout the nature of the alleged [misconduct] . . . [that] inextricably links the misconduct to the location where the [injury was felt].â83 ¶ 30 ClearOne argues that âthe epicenter of the claims and injury in this case is Utah.â But its description of how Revolabsâs alleged misconduct is linked to Utah is instructive as to why jurisdiction is improper: Utah is the focal point not just because ClearOne is headquartered in Utah, but also because the employment contract that [Mr.] Mackie entered into with ClearOne was and is governed by Utah law, forum to drive the jurisdictional analysis.â (citation omitted) (footnote omitted)). 78 Id. at 1122 (âWe have consistently rejected attempts to satisfy the defendant-focused âminimum contactsâ inquiry by demonstrating contacts between the plaintiff (or third parties) and the forum State.â). 79 Id. at 1125. 80 Id. 81 Id. at 1124 (â[T]he âeffectsâ caused by the defendantsâ articleâ i.e., the injury to the plaintiffâs reputation in the estimation of the California publicâconnected the defendantsâ conduct to California, not just to a plaintiff who lived there.â). 82 State ex rel. State Treasurer of Wyo. v. Moodyâs Invârs Serv., Inc., 349 P.3d 979, 985 (Wyo. 2015) (citation omitted). 83 Id. 17 CLEARONE v. REVOLABS Opinion of the Court required performance by ClearOne and [Mr.] Mackie (at least in part) in Utah. Moreover, [Mr.] Mackieâs fiduciary obligations were created and governed by Utah law, were owed to a Utah company, and were to be fulfilled, in part, in Utah. Finally, ClearOneâs predatory hiring claim is also subject to Utah law. The only reason Revolabsâs alleged misconduct is linked to Utah is because ClearOne unilaterally chose to execute a contract governed by Utah law, chose to incorporate in Utah, and chose to assert Utah causes of action. Although we accept as true ClearOneâs allegation that the employment contract between ClearOne and Mr. Mackie was subject to Utah law, it seems clear that Mr. Mackieâs actual work was not based in Utah, as the only description of the work Mr. Mackie performed relates to Texas, where he resided at all relevant times. Thus, although ClearOne has alleged that Revolabs tortiously interfered with an employment contract and fiduciary duties governed by Utah law, there are no allegations to support the conclusion that the employment relationship or Revolabsâs alleged subversion of that relationship were inextricably linked to Utah in any other way besides ClearOneâs presence here. ¶ 31 Indeed, the fact that the contract was made under Utah law is unavailing as the Supreme Court has held that âan individualâs contract with an out-of-state party alone can[not] automatically establish sufficient minimum contacts in the other partyâs home forum.â84 By the same token, interference with a contract based in another state is likewise insufficient without any other contact linking the defendant to the forum state. And the only other relevant contacts ClearOne suggests that Revolabs has all turn on the Utah contacts of ClearOne and Mr. Mackie. This type of connection is insufficient under Walden.85 Revolabs must have contacts âwith the forum State itself, not . . . with persons who reside there.â86 _____________________________________________________________ 84 Walden, 134 S.Ct. at 1122â23 (citation omitted). 85 Id. at 1122 (âWe have consistently rejected attempts to satisfy the defendant-focused âminimum contactsâ inquiry by demonstrating contacts between the plaintiff (or third parties) and the forum State.â); see also id. at 1123 (â[I]t is . . . insufficient to rely on a defendantâs ârandom, fortuitous, or attenuated contactsâ or on the âunilateral activityâ of a plaintiff.â (citation omitted)). 86 Id. (citation omitted). 18 Cite as: 2016 UT 16 Opinion for Voting ¶ 32 The Ninth Circuit confirmed this understanding in Picot v. Weston, a recent, post-Walden case dealing with a similar claim of tortious interference.87 In that case, Mr. Picot attempted to sue Mr. Weston in California and accused Mr. Weston of âmaking statements to [Mr.] Coats (an Ohio resident) that caused HMR (a Delaware corporation with offices in Ohio) to cease making payments into two trusts (in Wyoming and Australia).â88 â[Mr.] Weston did all this from his residence in Michigan, without entering California, contacting any person in California, or otherwise reaching out to California.â89 The Ninth Circuit, quoting Walden, stated that â[i]n short, ânone of [Mr.] [Westonâs] challenged conduct had anything to do with [California] itselfâ and found jurisdiction improper.90 As discussed, the same analysis and result is present here. ¶ 33 Ultimately, Revolabsâs conduct had little to do with Utah, even though it had a lot to do with ClearOne. There is nothing other than ClearOneâs contract and the fact that ClearOne happens to be incorporated here that links Revolabs to Utah. And ClearOneâs unilateral activityâchoosing to incorporate in Utah and maintain its principal place of business in Utahâis an insufficient basis for jurisdiction.91 As ClearOneâs counsel acknowledged during oral argument, to hold otherwise would subject Revolabs to jurisdiction wherever ClearOne chose to incorporate. Such a result would âimpermissibly allow[] [ClearOneâs] contacts with the defendant and forum to drive the jurisdictional analysis.â92 As Walden made clear, âthe plaintiff cannot be the only link between the defendant and the forum.â93 Accordingly, because Revolabs does not have sufficient minimum contacts with Utah, we affirm the trial courtâs decision on this point. _____________________________________________________________ 87 780 F.3d 1206, 1214â15 (9th Cir. 2015). 88 Id. at 1215. 89 Id. 90 Id. (third and fourth alteration in original). 91 See Walden, 134 S. Ct. at 1123. 92 Id. at 1125. 93 Id. at 1122. 19 CLEARONE v. REVOLABS Opinion of the Court II. ClearOne Has Not Provided Sufficient Evidence that Revolabs Could Be Subject to General Personal Jurisdiction to Warrant Jurisdictional Discovery ¶ 34 ClearOneâs second argument is that, even if Revolabs is not subject to specific personal jurisdiction, ClearOne should have the opportunity to conduct discovery in order to determine whether Revolabs should be subject to general personal jurisdiction. Unlike specific personal jurisdiction, â[g]eneral personal jurisdiction permits a court to exercise power over a defendant without regard to the subject of the claim asserted,â94 and is thus also known as âall- purposeâ personal jurisdiction. Because ClearOne has failed to âpresent facts to the court which show why jurisdiction would be found if discovery were permittedâ95 under the standard the Supreme Court has set forth, we affirm the trial courtâs denial of ClearOneâs request for discovery. We first address the standard for reviewing a denial of jurisdictional discovery, then discuss the standard for determining general jurisdiction, and end by explaining how the discovery sought by ClearOne would not provide a sufficient basis for general jurisdiction. ¶ 35 A court âmay determine jurisdiction on affidavits alone, permit discovery, or hold an evidentiary hearing.â96 But the party seeking discovery has âthe obligation to present facts to the court which show why jurisdiction would be found if discovery were permitted.â97 Further, the denial of a request to conduct discovery is reviewed for abuse of discretion, and â[a]n appellate court will not interfere with the trial courtâs refusal to grant discovery except upon the clearest showing that the dismissal resulted in actual and substantial prejudice to the litigant.â98 Denying jurisdictional discovery âis not an abuse of discretion when it is clear that further _____________________________________________________________ 94 Pohl, Inc. of Am. v. Webelhuth, 2008 UT 89, ¶ 9, 201 P.3d 944 (citation omitted). 95United States v. Swiss Am. Bank, Ltd., 274 F.3d 610, 626 (1st Cir. 2001). 96 Anderson v. Am. Socây of Plastic & Reconstructive Surgeons, 807 P.2d 825, 827 (Utah 1990). 97 Swiss Am. Bank, 274 F.3d at 626. 98 Wells Fargo & Co. v. Wells Fargo Express Co., 556 F.2d 406, 430 n.24 (9th Cir. 1977). 20 Cite as: 2016 UT 16 Opinion for Voting discovery would not demonstrate facts sufficient to constitute a basis for jurisdiction.â99 ¶ 36 The question, then, is whether the facts that ClearOne might discover if its request was granted would provide a sufficient basis for general jurisdiction. The United States Supreme Court recently clarified in Daimler AG v. Bauman the level of contact with a state a party must have in order to permit the state to exercise general or âall-purposeâ jurisdiction over the party.100 In Daimler, Argentinian residents filed a complaint in a California federal district court attempting to sue DaimlerChrysler Aktiengesellschaft (Daimler), a German public stock company that manufactures Mercedes-Benz vehicles in Germany.101 The plaintiffs argued that âthe California contacts of Mercedes-Benz USA, LLC (MBUSA), a subsidiary of Daimler incorporated in Delaware with its principal place of business in New Jersey,â could be attributed to Daimler and thereby permit general jurisdiction to be exercised over Daimler in California.102 MBUSAâs California contacts consisted of âmultiple California-based facilities,â including a regional office, and a high volume of sales of Daimler vehicles.103 ¶ 37 The Supreme Court, âassum[ing] MBUSAâs contacts [were] imputable to Daimler,â held that there was âno basis to subject Daimler to general jurisdiction in California, for Daimlerâs slim contacts with the State hardly render it at home there.â104 This was a reaffirmation that general jurisdiction is appropriate only when a _____________________________________________________________ 99 Id. 100 134 S. Ct. 746, 760â62 (2014). 101 Id. at 750â51. The complaint alleged that Daimler collaborated with Argentinian state security forces during Argentinaâs âDirty Warâ in order to kidnap, detain, torture, and kill the plaintiffs or close relatives of the plaintiffs. Id. at 751. 102 Id. at 751â52. 103Id. at 752. MBUSA was âthe largest supplier of luxury vehicles to the California market,â and its California sales accounted for âover 10% of all sales of new [Daimler] vehicles in the United Statesâ and â2.4% of Daimlerâs worldwide sales.â Id. 104 Id. at 760. The Supreme Court assumed but did not decide whether MBUSAâs contacts with California were sufficient to establish general personal jurisdiction over MBUSA. Id. at 758. 21 CLEARONE v. REVOLABS Opinion of the Court âcorporationâs âaffiliations with the State are so âcontinuous and systematicâ as to render [it] essentially at home in the forum State.ââ105 In so holding, the Court expressly rejected the âdoing businessâ test, which purported to subject a corporation to general jurisdiction âin every State in which a corporation âengages in a substantial, continuous, and systematic course of business.ââ106 Instead, the Court clarified that a defendantâs contacts with the state must be so extensive as to be âcomparable to a domestic enterprise in that State,â107 with the paradigmatic examples being a corporationâs âplace of incorporation and principal place of business.â108 Although the Court did ânot foreclose the possibility that in an exceptional caseâ109 a company could be considered âat homeâ elsewhere, it cautioned that â[a] corporation that operates in many places can scarcely be deemed at home in all of them.â110 Thus, despite the significant number of facilities located in California and amount of _____________________________________________________________ 105 Id. at 761 (alteration in original) (citation omitted). 106 Id. at 760â61 (citation omitted). The Court called this formulation of the general jurisdiction test âunacceptably grasping.â Id. at 761. 107 Id. at 758 n.11. 108 Id. at 760. 109 Id. at 761 n.19. The case cited by the Supreme Court as an âexceptional case,â Perkins, is instructive, as it is both âexceptionalâ and the only case decided by the Supreme Court permitting general jurisdiction. See id. at 756 & n.8 (discussing Perkins v. Benguet Consol. Mining Co., 342 U.S. 437 (1952)). In Perkins, the defendant company was incorporated and had its principal place of business in the Philippines until it was forced to suspend its operations during World War II. Perkins, 342 U.S. at 448. During the war, the president of the company moved to Ohio, where he kept an office, maintained the companyâs files, and oversaw the companyâs activities. Id. As the Supreme Court explained, general jurisdiction was possible âbecause âOhio was the corporationâs principal, if temporary, place of business.ââ Daimler, 134 S. Ct. at 756 (citation omitted). See also id. at 756 n.8 (confirming that the company in Perkins was âat homeâ in Ohio because â[t]o the extent that the company was conducting any business during and immediately after the Japanese occupation of the Philippines, it was doing so in Ohioâ and âOhio was the center of the corporationâs wartime activitiesâ). 110 Daimler, 134 S. Ct. at 762 n.20. 22 Cite as: 2016 UT 16 Opinion for Voting business transacted in California, such activity was insufficient to consider Daimler âat homeâ in California. ¶ 38 When ClearOneâs request for discovery is viewed in the light of the high standard for general personal jurisdiction set by the United States Supreme Court, it is clear that further discovery could not lead to âfacts sufficient to constitute a basis for jurisdiction.â Indeed, the Supreme Court stated that âit is hard to see why much in the way of discovery would be needed to determine where a corporation is at home.â111 This is true because, as ClearOne concedes, the question of general personal jurisdiction turns on whether the in-state activities of a companyâRevolabs in this caseâ âclosely approximate the activities that ordinarily characterize a corporationâs place of incorporation or principal place of business.â112 The facts and allegations provided by ClearOne fall far short of this level of activity. ¶ 39 The facts alleged by ClearOne in support of its claim of jurisdiction are that Revolabs has a publicly accessible website, that Revolabs is included in an online directory of Utah businesses maintained by the Utah Department of Workforce Servicesâthough the site states that Revolabs currently has no employees in Utahâ and that Utah Valley University issued a bid solicitation for audio- visual equipment, including equipment sold by Revolabs. ClearOne has not, however, contradicted Revolabsâs affidavit statement that âRevolabs does not maintain or conduct any business operations in the state of Utah and does not direct any advertising into Utah; it has no offices in Utah, owns no property in Utah[,] and maintains no employees in Utah.â ClearOneâs only response is that discovery may reveal that Revolabs gains revenue from Utah, that Revolabs may be party to Utah contracts, or that Revolabs may have conducted business prior to litigationâfacts that ClearOne argues are suggested by Revolabsâs website, the online directory, and the bid solicitation. _____________________________________________________________ 111 Id.; see also id. at 760 (setting place of incorporation and principal place of business as paradigm bases for general jurisdiction because â[t]hose affiliations have the virtue of being unique . . . as well as easily ascertainableâ). 112 Carmouche v. Tamborlee Mgmt., Inc., 789 F.3d 1201, 1205 (11th Cir. 2015). 23 CLEARONE v. REVOLABS Opinion of the Court ¶ 40 The problem with ClearOneâs argument is that it claims general jurisdiction could be predicated on Revolabsâs potentially âsubstantial and continuous business activity in Utah.â This âdoing businessâ approach to general jurisdiction, however, was expressly considered and flatly rejected by the Supreme Court as part of its holding in Daimler.113 Indeed, activity exponentially more extensive than what ClearOne suggests Revolabs may be engaged in was considered âslimâ in Daimler, and âplainly [did] not approachâ the level of association necessary for general jurisdiction.114 âA corporationâs âcontinuous activity of some sort[] within a state . . . is not enough to support the demand that the corporation be amenable to suits unrelated to that activity.ââ115 The limited number of Supreme Court cases on this point clearly require something more than just some revenue or contracts to qualify the company as âat homeâ in that state.116 _____________________________________________________________ 113 See Daimler, 134 S. Ct. at 760â61 (âPlaintiffs would have us look beyond the exemplar bases [of place of incorporation and principal place of business] and approve the exercise of general jurisdiction in every State in which a corporation âengages in a substantial, continuous, and systematic course of business.â That formulation, we hold, is unacceptably grasping.â (citation omitted)). 114 Id. at 760, 761 n.19. 115Goodyear Dunlop Tires Operations, S.A. v. Brown, 131 S. Ct. 2846, 2856 (2011) (citation omitted). 116 Compare Daimler, 134 S. Ct. at 756 n.8 (general jurisdiction present in Perkins because âOhio was the center of the corporationâs wartime activitiesâ), with id. at 752 (no general jurisdiction when company had âmultiple California-based facilities, including a regional office,â and had a significant volume of sales in California), Goodyear, 131 S. Ct at 2852 (no general jurisdiction when companies âha[d] no place of business, employees, or bank accounts in North Carolina,â did ânot design, manufacture, or advertise their products in North Carolina,â and did ânot solicit business in North Carolina or themselves sell or ship [products] to North Carolina customers,â even if âa small percentage of [the companiesâ products] . . . were distributed within North Carolinaâ), and Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 416 (1984) (no general jurisdiction when a companyâs âcontacts with Texas consisted of sending its chief executive officer to Houston for a contract-negotiation session; accepting into its New York bank account checks drawn on a (Continued) 24 Cite as: 2016 UT 16 Opinion for Voting ¶ 41 The Supreme Court was clear that bases for general jurisdiction aside from the corporationâs place of incorporation and principal place of business should be found only in exceptional cases, and this does not appear to be one. Indeed, as a matter of common sense, there are likely many companies that have no official operations in Utah that still derive some revenue from Utah consumers. It would strain the Supreme Courtâs standard for general jurisdiction beyond recognition to suggest that a company like Revolabs that has no business operations in a state can fairly be said to be âat homeâ there because of some potential revenue or contracts. Accordingly, because ClearOne has failed to show that discovery would lead to facts proving that Revolabs is âat homeâ in Utah, we hold that the trial court did not abuse its discretion in denying ClearOneâs discovery request. Conclusion ¶ 42 The Supreme Courtâs recent cases provide clear guidance as to the issues that we address today. Walden has clarified Calderâs âeffectsâ test and, under Walden, ClearOne has failed to allege that Revolabs has sufficient minimum contacts to subject it to specific personal jurisdiction in Utah. Revolabsâs connection to ClearOne and Mr. Mackie is simply insufficient, on its own, to confer jurisdiction. As to general personal jurisdiction, the Supreme Court in Daimler clearly rejected the âdoing businessâ test that was the basis for ClearOneâs claim. As it is clear that no further discovery could lead to facts supporting general jurisdiction, the trial court did not abuse its discretion in denying ClearOneâs motion. Accordingly, we affirm the trial courtâs decision as to both issues. Houston bank; purchasing helicopters, equipment, and training services . . . ; and sending personnel to [Texas] for trainingâ). 25
Case Information
- Court
- Utah
- Decision Date
- April 1, 2016
- Status
- Precedential