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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA DANBY PRODUCTS, INC. : CIVIL ACTION Plaintiff : : NO. 22-0155 v. : : NEW WIDETECH INDUSTRIES CO., : LTD. : Defendant : NITZA I. QUIĂONES ALEJANDRO, J. OCTOBER 28, 2022 MEMORANDUM OPINION INTRODUCTION Before this Court is a motion to dismiss filed by Defendant New Widetech Industries Co., Ltd. (âDefendantâ or âNWTâ), [ECF 10], which Plaintiff Danby Products Inc. (âPlaintiffâ or âDanbyâ) has opposed. [ECF 15]. In its motion, NWT argues that this Court lacks general and specific personal jurisdiction over it because it is not âat homeâ in Pennsylvania, as required by the seminal United States Supreme Court decision Daimler AG v. Bauman, 571 U.S. 117 (2014), and because Danbyâs claims do not arise out of or relate to any contacts NWT has or had with Pennsylvania.1 The issues presented in the motion have been fully briefed and are ripe for disposition.2 After careful consideration, and for the reasons set forth herein, NWTâs motion is granted, and this matter is dismissed for lack of personal jurisdiction. 1 NWT also argues that this matter should be dismissed for improper venue, forum non conveniens, and international comity. Because this Court has determined that it lacks personal jurisdiction over NWT, this Opinion is limited to the issue of personal jurisdiction. 2 In adjudicating this motion, this Court has also considered NWTâs reply. [ECF 17]. BACKGROUND The salient facts to the issue of personal jurisdiction are the following:3 NWT is a manufacturer and seller of consumer appliances throughout the world. NWT is incorporated in and maintains its corporate headquarters in Taiwan. NWT maintains two manufacturing facilities, one in Taiwan and one in China. NWT does not maintain offices anywhere outside of Taiwan and China. Danby is a distributor of consumer appliances throughout North America, including Pennsylvania. Danby is a Canadian company and maintains a corporate office in Findlay, Ohio. Danby does not appear to maintain any corporate presence in Pennsylvania. On April 15, 2009, NWT and Danby entered into an âAgreement for Supply of Productsâ (the âContractâ) for NWT to supply Danby with dehumidifiers and air conditioners. Under the Contract, Danby was designated as NWTâs exclusive distributor in Canada and a model exclusive distributor in the United States. Danby determined its own distribution channel and customers in the United States and Canada. NWT negotiated and entered into the Contract with Danby while in Taiwan. NWT emailed a signed copy of the Contract from Taiwan to Danbyâs personnel in Canada. From 2009 to 2016, NWT manufactured and provided dehumidifiers and air conditioners to Danby in Jiangmen, China and Hong Kong, the two ports closest to NWTâs factory in China. After picking up the products in China and Hong Kong, Danby then handled exports and distribution of the products through Danbyâs own distribution channels and to Danbyâs own customers. Some of Danbyâs customers were in Pennsylvania. Beginning in 2016, Danby began to receive claims from customers that sustained losses as a result of malfunctioning dehumidifiers that had been purchased from NWT. Danby reported these occurrences to the United States Consumer Product Safety Commission (the âCPSCâ). By October 2017, NWT was involved in the CPSCâs investigation regarding overheating issues and began investigating the issues with its dehumidifiers. The CPSC closed its investigation in February 2018. At that time, NWT informed Danby that NWT was continuing to investigate the overheating issue. The issues with NWTâs dehumidifiers did not cease with the closing of the CPSCâs investigation. Unbeknownst to Danby, in January 2021, NWTâs counsel conducted a teleconference with the CPSC, during which NWT disclosed that it had continued to study the incident data for the overheating claims and had determined that the incidents did not appear to occur until the dehumidifiers were 3 Where undisputed, the facts are taken from the partiesâ pleadings and supporting declarations. Where the facts are disputed, they are construed in Plaintiffâs favor. four or five years old. NWT informed the CPSC that it intended to recall any and all dehumidifiers manufactured between 2009 and 2016. Over the course of the following months, NWT conferred with the CPSC, at the exclusion of Danby, to institute a recall of nearly 2 million dehumidifiers throughout Canada and the United States. NWT selected and implemented a recall plan that included a formula that would be used to determine consumer reimbursement. Despite repeated requests by Danby for assurances that its costs, expenses, and fees related to the recall would be covered by NWT, NWT ignored and then rejected Danbyâs requests. Danby alleges it has suffered financial losses as a result of NWTâs recall. Based on these facts, Plaintiff asserts claims against NWT for (1) breach of contract, (2) breach of implied warranty of merchantability, (3) unjust enrichment, (4) tortious interference with existing contracts, and (5) declaratory relief. LEGAL STANDARD Pursuant to Federal Rule of Civil Procedure (âRuleâ) 12(b)(2), a defendant may move to dismiss a claim for lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2). Once a defendant has raised a lack of jurisdiction defense, the burden shifts to the plaintiff to present a prima facie case establishing jurisdiction over the non-resident defendant in the forum. Pinker v. Roche Holdings Ltd., 292 F.3d 361, 368 (3d Cir. 2002); see also Miller Yacht Sales, Inc., v. Smith, 384 F.3d 93, 97 (3d Cir. 2004) (â[W]hen the court does not hold an evidentiary hearing on the motion to dismiss, the plaintiff need only establish a prima facie case of personal jurisdiction.â). The plaintiff has the burden to show, âwith reasonable particularity,â enough contact between the defendant and the forum state to support the exercise of personal jurisdiction by the forum state. Mellon Bank v. Farino, 960 F.2d 1217, 1223 (3d Cir. 1992) (internal citations omitted); see also Action Mfg. Co. v. Simon Wrecking Co., 375 F. Supp. 2d 411, 418 (E.D. Pa. 2005) (âIn order to establish a prima facie case, the plaintiff must present specific facts that would allow the court to exercise jurisdiction over the defendant.â). In determining the existence of personal jurisdiction, courts âmust accept all of the plaintiffâs allegations as true and construe disputed facts in favor of the plaintiff.â Pinker, 292 F.3d at 368. Once the plaintiffâs âallegations are contradicted by an opposing affidavit . . . [the plaintiff] must present similar evidence in support of personal jurisdiction.â In re Chocolate Confectionary Antitrust Litig., 602 F. Supp. 2d 538, 556 (M.D. Pa. 2009). To counter opposing affidavits, â[p]laintiffs may not repose upon their pleadings . . . . Rather, they must counter defendant[âs] affidavits with contrary evidence in support of purposeful availment jurisdiction.â Id. at 559. To that end, the âplaintiff must respond to the defendantâs motion with âactual proofs;â âaffidavits which parrot and do no more than restate [the] plaintiffâs allegations . . . do not end the inquiry.ââ Lionti v. Dipna, Inc., 2017 WL 2779576, at *1 (E.D. Pa. June 27, 2017) (quoting Time Share Vacation Club v. Atl. Resorts, Ltd., 735 F.2d 61, 66 n.9 (3d Cir. 1984)). DISCUSSION NWT moves to dismiss this action based on a lack of sufficient minimum contacts with Pennsylvania to support personal jurisdiction in this forum. NWT has offered the sworn declaration of its Senior Manager, Jane Shyi, in which Ms. Shyi attests that, inter alia, NWT neither is incorporated in nor maintains a principal place of business in Pennsylvania. Danby has not contested these jurisdictional facts4 but has instead relied primarily on a âstream-of- commerceâ theory to argue that NWTâs knowing placement of its products in Pennsylvania is sufficient to sustain personal jurisdiction over NWT. Danbyâs argument is misplaced. A federal court may assert jurisdiction over a nonresident of the forum state to the extent authorized by the law of the forumâhere, Pennsylvania. Remick v. Manfredy, 238 F.3d 248, 255 4 The allegations in Danbyâs own complaint confirm that NWT maintains its âheadquartersâ in Taiwan. (See Compl., ECF 1, at ¶ 49). (3d Cir. 2001). Pennsylvaniaâs long-arm statute grants jurisdiction coextensive with that permitted by the due process clause of the Fourteenth Amendment to the United States Constitution. Id.; see also 42 Pa. Cons. Stat. § 5322(b). Therefore, this Courtâs analysis must focus on federal due process requirements. Applied Tech. Intâl, Ltd. v. Goldstein, 2004 WL 2360388, at *2 (E.D. Pa. Oct. 20, 2004). A courtâs constitutional inquiry is guided by the âminimum contactsâ test established in International Shoe Co. v. Washington, 326 U.S. 310 (1945). Under this standard, a plaintiff must show that a nonresident defendant has âcertain minimum contacts with [the forum] such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.â Intâl Shoe, 326 U.S. at 316 (internal quotations and citation omitted); see also Marten v. Godwin, 499 F.3d 290, 296 (3d Cir. 2007). The focus of the minimum contacts analysis is âthe relationship among the defendant, the forum, and the litigation,â Shaffer v. Heitner, 433 U.S. 186, 204 (1977), such that the defendant has fair warning that it may be subject to suit in that forum, Marten, 499 F.3d at 296. A federal court must have one of two forms of personal jurisdiction to comport with these principles: general jurisdiction or specific jurisdiction. See DâJamoos ex rel. Estate of Weingeroff v. Pilatus Aircraft Ltd., 566 F.3d 94, 102 (3d Cir. 2009) (citing Helicopteros Nacionales de Colombia v. Hall, 466 U.S. 408, 414â15 (1984)). Here, Danby contends this Court can exercise either general or specific jurisdiction over its claims. General Jurisdiction General jurisdiction allows a court to exercise its jurisdiction over any party that possesses âcontinuous and systematicâ contacts with the forum state, regardless of whether the claim arises out of the partyâs forum-related activities. Helicopteros, 466 U.S. at 415 n.9; Marten, 499 F.3d at 296. Where the cause of action has no relation to a corporate defendantâs contacts with the forum, general jurisdiction may only be asserted over the corporate defendant if the corporate defendantâs âaffiliations with the [s]tate are so âcontinuous and systematicâ as to render them essentially at home in the forum [s]tate.â Daimler, 571 U.S. at 128 (quoting Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 923 (2011)) (quotation marks omitted); see also Helicopteros, 466 U.S. at 414. âThe âparadigmâ forums in which a corporate defendant is âat home,â . . . are the corporationâs place of incorporation and its principal place of business . . . .â BNSF Ry. Co. v. Tyrrell, â U.S. â, 137 S. Ct. 1549, 1552 (2017) (citing Daimler, 571 U.S. at 137); see also Chavez v. Dole Food Co., 836 F.3d 205, 223 (3d Cir. 2016). In addition to the two paradigm bases, general jurisdiction may also arise in the âexceptional caseâ where âa corporationâs operations in a forum other than its formal place of incorporation or principal place of business [are] so substantial and of such a nature as to render the corporation at home in that State.â Daimler, 571 U.S. at 139 n.19. Applying the Daimler analysis, the United States Court of Appeals for the Third Circuit (the âThird Circuitâ) has held that it is âincredibly difficult to establish general jurisdiction in a forum other than the place of incorporation or principal place of business.â Chavez, 836 F.3d at 223 (quoting Monkton Ins. Servs., Ltd. v. Ritter, 768 F.3d 429, 432 (5th Cir. 2014)); see also Brown v. Lockheed Martin Corp., 814 F.3d 619, 627 (2d Cir. 2016) (â[I]n our view Daimler established that, except in a truly âexceptionalâ case, a corporate defendant may be treated as âessentially at homeâ only where it is incorporated or maintains its principal place of businessâ the âparadigmâ cases.â) (citation omitted). NWT contends that it has insufficient minimum contacts with Pennsylvania to support personal jurisdiction in this forum. It is undisputed that NWT neither is incorporated nor maintains a principal place of business in Pennsylvania. As such, Pennsylvania is not a âparadigmâ forum where NWT is âat homeâ for the purposes of personal jurisdiction. Daimler, 571 U.S. at 122. Nevertheless, Danby argues that this Court can exercise general jurisdiction over NWT because: (1) NWT âtouts its global reach and United States Market influence,â (2) NWT has applied for and received trademarks and patents in the United States; (3) NWT has saturated the United States market, including Pennsylvania; (4) NWT has been involved in litigation in Pennsylvania; and (5) NWT has sold products directly to an unrelated Pennsylvania company. (Pl.âs Resp. in Opp., ECF 15, at p. 16). Danby further contends that these purported contacts constitute the requisite âcontinuous and systematicâ contacts with Pennsylvania for the exercise of general jurisdiction. Danby, however, is mistaken. Notably, in support of its argument, Danby ignores the Daimler progeny that narrowed general jurisdiction over corporate entities to the forum in which the entity is âat home.â Regardless, in the post-Daimler legal landscape, the mere fact that an out-of-state entity transacts business in Pennsylvania, even substantial business, is insufficient to establish that the entity is âat homeâ in Pennsylvania. See Daimler, 571 U.S. at 138 (emphasizing that even âengage[ment] in a substantial, continuous, and systematic course of businessâ alone is insufficient to render an entity at home in a forum); see also, e.g., Spear v. Marriott Hotel Servs., Inc., 2016 WL 194071, at *3 (E.D. Pa. Jan. 15, 2016) (âApplying the considerations of Daimler and Goodyear, the mere allegation that defendants operate in the State does not render defendants âat homeâ in Pennsylvania and subject it to general jurisdiction here.â); Campbell v. Fast Retailing USA, Inc., 2015 WL 9302847, at *2â3 (E.D. Pa. Dec. 22, 2015) (citing Daimler and holding that â[t]he allegation that an entity transacts business, even substantial business, in Pennsylvania is insufficient to establish that it is essentially âat homeâ in Pennsylvaniaâ); Farber v. Tennant Truck Lines, Inc., 84 F. Supp. 3d 421, 432 (E.D. Pa. 2015) (âA corporation is not âat homeâ in every state in which it engages in a substantial, continuous, and systematic course of business.ââ). Indeed, the Supreme Court has held that regularly occurring sales to a forum state cannot subject a nonresident defendant to general jurisdiction. See Goodyear, 564 U.S. at 921, 927-928. Specifically, in Goodyear, the Supreme Court concluded that even âtens of thousandsâ of a foreign manufacturerâs tires entering the forum over a three-year period was insufficient to trigger general jurisdiction because, despite those sales, the foreign corporation was not regarded as âat homeâ in that state. Id. In Daimler, the Supreme Court held that even though ten percent of a nonresident defendantâs sales occurred within the forum state, such sales did not render Daimler âat homeâ in the forum. Daimler, 571 U.S. at 139. Under these binding precedents, this Court finds that Danbyâs allegations of NWTâs purported global reach in the United States fail to show that NWT is âessentially at homeâ in Pennsylvania, as required under Goodyear and Daimler. See Daimler, 571 U.S. at 122 (explaining that regional offices are not enough to consider a corporation âat homeâ in a forum in which it does not have its principal place of business or its place of incorporation); see also Sonera Holding B.V. v. Cukurova Holding A.S., 750 F.3d 221, 226 (2d Cir. 2014) (noting that Daimler makes âclear that even a companyâs engage[ment] in a substantial, continuous, and systematic course of business is alone insufficient to render it at home in a forumâ) (internal citation and quotations omitted); Krishanti v. Rajaratnam, 2014 WL 1669873, at *7 (D.N.J. Apr. 28, 2014) (âIt is clear from Daimler that the physical presence of a corporation in a state does not necessarily render the corporation âat homeâ in that state.â). Nor does NWTâs participation in Pennsylvania litigation give rise to general jurisdiction. See Klinghoffer v. S.N.C. Achille Lauro Ed Altri-Gestione Motonave Achille Lauro In Amministrazione Straordinaria, 937 F.2d 44, 50 n.5 (2d Cir. 1991) (âA partyâs consent to jurisdiction in one case, however, extends to that case alone.â); Beaton v. LG Chem, Ltd., 2021 WL 3828835, at *5 (D.N.J. Aug. 26, 2021) (citing Klinghoffer); Olympia Steel Bldg. Sys. Corp. v. Gen. Steel Domestic Sales, LLC, 2007 WL 1217992, at *4 (W.D. Pa. Apr. 24, 2007) (holding âparticipation in prior lawsuits an insufficient basis for the conclusion that it has consented to the exercise of general jurisdiction in this case.â). Because Danby has failed to make a showing that NWTâs contacts with Pennsylvania âare so continuous and systematic as to render it essentially at home in this state,â Daimler, 571 U.S. at 139 (internal quotations and citation omitted), this Court finds that it lacks general jurisdiction over NWT. Specific Jurisdiction Danby also argues that this Court should exercise specific jurisdiction over NWT. NWT argues that Danby has failed to meet its burden because there is no evidence of any connection between Pennsylvania and NWT beyond the stream of commerce and the independent actions of Danby and other unrelated companies. This Court agrees with NWT. Specific jurisdiction allows the court to hear claims that arise from or relate to the partyâs contacts with the forum state, such that the defendant should reasonably anticipate being hailed into court in that forum. Helicopteros, 466 U.S. at 414 n.8; Telcordia Tech Inc. v. Telkom SA Ltd., 458 F.3d 172, 177 (3d Cir. 2006). In determining whether there is specific jurisdiction over a nonresident defendant, courts undertake a three-part inquiry. See OâConnor v. Sandy Lane Hotel Co., 496 F.3d 312, 317 (3d Cir. 2007). âFirst, the defendant must have âpurposefully directed his activitiesâ at the forum.â Id. (quoting Burger King v. Rudzewicz, 471 U.S. 462, 472 (1985)). Second, the plaintiffâs claim must âarise out of or relate toâ at least one of those purposefully directed activities. Helicopteros, 466 U.S. at 414. Third, if the first two requirements are met, courts consider additional factors to ensure that the assertion of jurisdiction otherwise âcomport[s] with fair play and substantial justice.â Burger King, 471 U.S. at 476 (internal citations omitted); see also OâConnor, 496 F.3d at 317. To satisfy the first element for specific jurisdiction, Danby must show that NWT took âsome act by which [it] purposefully avail[ed] itself of the privilege of conducting activities within the forum state.â Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., â U.S. â, 141 S. Ct. 1017, 1024â25 (2021) (quoting Hanson v. Denckla, 357 U.S. 235, 253 (1958)). While physical entry into the forum is not required, Danby must show that NWT âdeliberately âreached out beyondâ its homeâby, for example, âexploi[ting] a marketâ in the forum State or entering a contractual relationship centered there.â Id. at 1025 (quoting Walden v. Fiore, 571 U.S. 277, 285 (2014)). In determining whether a court has specific jurisdiction over contract claims, such as the majority of Danbyâs claims here, the court considers âthe totality of the circumstances, including the location and character of the contract negotiations, the terms of the contract, and the partiesâ actual course of dealing.â Remick, 238 F.3d at 256 (citations omitted). While a defendant having a contract with a resident of the forum state is relevant to the jurisdictional analysis, â[t]he mere existence of a contract is insufficient to establish minimum contacts.â Budget Blinds, Inc. v. White, 536 F.3d 244, 261 (3d Cir. 2008) (citing Burger King, 471 U.S. at 478); see also Metcalfe v. Renaissance Marine, Inc., 566 F.3d 324, 333 n.7 (3d Cir. 2009) (â[A] contract, âwithout more, is insufficient to establish minimum contacts,â as are âinformational communicationsâ in furtherance of a contract.â) (citations omitted); Sunbelt Corp. v. Noble, Denton & Assocs., Inc., 5 F.3d 28, 32 (3d Cir. 1993) (âIt is well established, however, that a nonresidentâs contracting with a forum resident, without more, is insufficient to establish the requisite âminimum contactsâ required for an exercise of personal jurisdiction over the nonresident.â) (citations omitted). NWT argues that it does not have the requisite contacts with Pennsylvania to establish specific jurisdiction over Danbyâs contract-based claims. In support of its argument, NWT contendsâand Danby does not refuteâthat the contract underlying the partiesâ relationship and Danbyâs contract-based claims has no connection to Pennsylvania. When negotiating the contract, NWT communicated only with Danby personnel located in Canada. Some of the in-person negotiations took place in China. None appear to have occurred in Pennsylvania. Most of the communications occurred over email, between the partiesâ respective personnel in Canada and Taiwan. NWTâs president signed the contract while in Taiwan and emailed a signed copy to Danby in Canada. In performance of the contract, NWT manufactured the dehumidifiers in China and provided them to Danby for pickup in China and Hong Kong. In sum, the facts surrounding NWTâs contractual relationship with Danby have no connection to Pennsylvania. Though not refuting any of NWTâs jurisdictional facts surrounding the partiesâ contract, Danby contends that âNWT directed and intended its products to reach Pennsylvania . . . [and] was fully aware that a sizeable number of products manufactured by NWT were being sold and distributed within Pennsylvania.â (Pl.âs Resp. in Opp., ECF 15, at p. 21). This âstream-of- commerceâ theory has been repeatedly rejected by the United States Supreme Court and the Third Circuit: A plurality of Supreme Court Justices has twice rejected the stream- of-commerce theory, see J. McIntyre Mach., Ltd. v. Nicastro, 564 U.S. 873, 877â85 (2011) (plurality opinion); Asahi Metal Indus. Co. v. Superior Court, 480 U.S. 102, 108â13 (1987) (plurality opinion), stating, in a manner consistent with our own case law, that plaintiffs must instead rely on âsome act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws,â Asahi, 480 U.S. at 109; see DâJamoos, 566 F.3d at 102â 03. Indeed, the Supreme Court has recently held that â[t]he bare fact that [a non-resident defendant] contracted with a [resident] distributor is not enough to establish personal jurisdiction in the State.â Bristol-Myers Squibb Co. v. Superior Court, â U.S. â, 137 S. Ct. 1773, 1783 (2017). We thus have no cause to revisit our Courtâs precedent on this issue, and we decline to adopt the Shukersâ stream-of-commerce theory of specific personal jurisdiction. See DâJamoos, 566 F.3d at 102â06. Shuker v. Smith & Nephew, PLC, 885 F.3d 760, 780 (3d Cir. 2018). Having been repeatedly rejected by both the Supreme Court and the Third Circuit, Danbyâs stream-of-commerce theory to invoke specific jurisdiction is without merit. Danby also points to a purported contractual/business relationship between NWT and a Pennsylvania company, Almo Corporation (âAlmoâ), to show that NWT deliberately targeted the Pennsylvania market. While the amount, frequency, and duration of business between NWT and Almo is disputed, it is undisputed that, as with NWTâs relationship with Danby, Almo accepted delivery of NWTâs product in China and then Almo alone determined where the product was to be sold, distributed, and/or delivered. NWT did not ship products to Pennsylvania. Thus, NWTâs purported relationship with a third party in Pennsylvania is insufficient to show the requisite âpurposeful availment.â See Walden v. Fiore, 571 U.S. 277, 286 (2014). (â[A] defendantâs relationship with a . . . third party, standing alone, is an insufficient basis for jurisdiction.â); Bristol- Myers Squibb Co. v. Superior Ct. of Calif., â U.S. â , 137 S. Ct. 1773, 1783 (2017) (holding that the âbare fact that [defendant] contracted with a California distributor is not enough to establish personal jurisdiction in the State.â). In any event, and as discussed more fully below, Danbyâs claims do not arise out of NWTâs purported contacts with Pennsylvania, even those purported contacts involving Almo. NWT also argues that Danby has failed to meet its burden as to the second prong, i.e., showing that Danbyâs claims âarise out of or relate toâ NWTâs purposeful contacts with Pennsylvania. Bristol-Myers Squibb, 137 S. Ct. at 1780. This Court agrees. For this Court to exercise specific jurisdiction over Danbyâs claims, there must be an âaffiliation between the forum and the underlying controversy, principally, [an] activity or an occurrence that takes place in the forum State.â Goodyear, 564 U.S. at 919. The United States Supreme Court has made clear that where there is no connection between a plaintiffâs claims and the defendantâs conduct in or aimed at the forum, âspecific jurisdiction is lacking regardless of the extent of a defendantâs unconnected activities in the State.â Bristol-Myers Squibb, 137 S. Ct. at 1781. â[E]ven regularly occurring sales of a product in a State do not justify the exercise of jurisdiction over a claim unrelated to those sales.â Goodyear, 564 U.S. at 931 n.6. Each of Danbyâs claims is premised upon the alleged damages it suffered on account of NWTâs recall of products that Danby sold and/or delivered to customers, including customers in Pennsylvania. Specifically, Danby contends that it incurred damages in Pennsylvania because some of the recalled NWT dehumidifiers were returned to sellers in Pennsylvania. To the extent these damages arise out of or relate to contacts with Pennsylvania, however, they arise out of and/or relate to Danbyâs contacts with Pennsylvania, not NWTâs contacts with Pennsylvania. As described above, and not refuted by Danby, NWT did not sell products directly to any entity or person in Pennsylvania. Rather, NWT sold products to distributors like Danby (a Canadian entity), which then sold the products to customers throughout the United States, including Pennsylvania. As such, Danbyâs alleged damages arise out of or relate to its own contacts with Pennsylvania, not NWTâs contacts with Pennsylvania. Accordingly, these facts do not confer specific jurisdiction in this forum because â[t]he contacts must be the defendantâs own choice and not ârandom, isolated, or fortuitous.â Ford, 141 S. Ct. at 1025 (citation omitted).5 5 To the extent Danby intended to rely on NWTâs purported contacts with Almo to support specific jurisdiction, such reliance is equally misplaced. Danby must show that its claims arise out of or relate to NWTâs contacts with Pennsylvania. None of Danbyâs claims arises out of NWTâs relationship with or supply of product to Almo. Danby also attempts to satisfy the second prong by pointing to NWTâs various communications with the CPSC regarding NTWâs planned recall and NWTâs exclusion of Danby from those communications as being sufficiently related to Danbyâs claims and damages to support specific jurisdiction. To the extent Danbyâs claims arise out of or relate to these purported contacts, Danby does not allege how that these contacts amount to NWTâs contacts with Pennsylvania. Similarly, Danby points to purported communications between NWTâs counsel in California and Danbyâs counsel in Pennsylvania as sufficient to meet the required nexus for specific jurisdiction. To the extent this Court could even consider these to be NWTâs contacts with Pennsylvania, Danby has failed to articulate, let alone show, how Danbyâs claims (mostly contract-based claims) arise out of or relate to these communications between the partiesâ counsel. Only when communications themselves form the basis of a plaintiffâs claim will they be found to rise to the level of minimum contacts. See Sunbelt, 5 F.3d at 33 (finding appelleeâs telephone calls from Pennsylvania to Texas did not establish jurisdiction in Texas when the calls themselves were not the basis of the cause of action). That is not the case here. Danbyâs claims arise out of purported breaches of representations and obligations made in the partiesâ agreements. As such, NWTâs purported communications with another party (the CPSC) and communications between the partiesâ respective counsel are insufficient to give this Court specific jurisdiction over Danbyâs claims. In sum, Danby has failed to show how any of its claims arise out of or relate to NWTâs contacts with Pennsylvania. As such, Danby has also failed to satisfy the second prong for specific jurisdiction.6 6 In its response, Danby requests leave to conduct discovery targeted to the issue of personal jurisdiction. No amount of discovery, however, could change the undisputed facts that NWT neither is incorporated nor maintains a principal place of business in Pennsylvania. Nor will any discovery change the undisputed fact that Danbyâs claims do not arise out of any of NWTâs purported contacts with Pennsylvania. As such, Danbyâs request for discovery on this issue is denied. CONCLUSION For the reasons set forth herein, NWTâs motion to dismiss is granted. An appropriate Order will follow this Memorandum Opinion. NITZA I. QUIĂONES ALEJANDRO, J.
Case Information
- Court
- E.D. Pa.
- Decision Date
- October 28, 2022
- Status
- Precedential