DEAN D. PREGERSON, District Judge.
Presently before the court is Defendant's Motion to Dismiss for lack of personal jurisdiction. Having considered the submissions of the parties, the court grants Defendant's motion and adopts the following Order.
Plaintiff 1-800 REMODEL, INC. ("Remodel"), is a corporation that is incorporated and has its principal place of business in Los Angeles, California. (Complaint, ¶¶ 1-5, 11, 13-15, 20; Doane Decl. ¶¶ 3, 6; Ex. 1 (Settlement Agreement) at 1.) Remodel is a home-improvement company that provides free referral services to homeowners looking to remodel. Id. Defendant Robert A. Doane ("Doane") is a citizen of Massachusetts. (Compl. ¶ 6; Decl. of Robert A. Doane ¶ 2.)
Prior to March 10, 2017, Doane received telemarketing calls from Remodel. (Compl. ¶ 16; Doane Decl. ¶ 3; Ex. 1 at 1.) After Doane complained about those calls and threatened to sue, he entered into a settlement agreement with Remodel on March 10, 2017 ("Effective Date") to resolve his complaints (the "Agreement"). (Compl. ¶¶ 6, 9; Doane Decl. ¶¶ 3-4; Ex. 1 at 1.) Under the Agreement, Doane released Remodel "from any and all claims, demands, and causes of action . . . that [Doane] ever had, or now has, or may have, whether known or unknown, that have been raised or that may have been raised at any time through and up to the Effective Date of this Agreement." (Ex. 1 at 2, § 2.)
The Agreement provided that it "shall be governed [by] . . . the . . . laws of . . . California . . . and the exclusive forum for any litigation arising from the subject matter of this Agreement shall be the federal and state courts of original jurisdiction located in Los Angeles, CA." (Ex. 1 at 3, § 5.) While the Agreement provided for the application of California law, it did not contain any waiver of Cal. Civ. Code § 1542. Id. at 2-4.
In March 2018, Doane again began to receive telemarketing calls from Remodel after Doane visited a website and allegedly entered his contact information and consented to receive calls from home improvement partners. (Compl. ¶¶ 12-15; Doane Decl. ¶ 6.) On March 13, 2018 Doane sent Remodel a pre-suit demand letter to complain about the new telemarketing calls he was receiving from Remodel. (Doane Decl. ¶ 7; Ex. 2 (Doane's Pre-Suit Demand Letter).) In that letter, Doane identified the calls as having occurred after the Effective Date of the Agreement. Id.
Remodel then filed this action seeking a declaratory judgement that any claims by Doane over Remodel's telemarketing practices, in addition to any claims for breach of the Agreement, must be adjudicated in California. (Compl. ¶¶ 22-35.) Defendant now moves to dismiss for lack of personal jurisdiction.
District courts have the power to exercise personal jurisdiction to the extent authorized by the law of the state in which they sit. Fed. R. Civ. P. 4(k)(1)(A);
A district court may exercise either general or specific personal jurisdiction over non-resident defendants.
Courts in this circuit apply a three prong test when analyzing specific jurisdiction: (1) The non-resident defendant must purposefully direct his activities to or consummate some transaction with the forum or resident thereof; or perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws; (2) the claim must be one which arises out of or relates to the defendant's forum-related activities; and (3) the exercise of jurisdiction must comport with fair play and substantial justice.
Under the first prong of the specific jurisdiction test, the plaintiff must show that the defendant purposefully directed his activities toward the forum state or purposefully availed himself of the privilege of conducting activities there.
Here, Remodel argues that Doane purposefully directed his activities at California by providing his contact information to a third-party website and sending a demand letter to Remodel, a California corporation. Remodel also contends that Doane availed himself of the benefits of California law by entering into the Agreement, which, according to Remodel, applies even to the 2018 telemarketing calls. (Plaintiff's Opp'n to Mot. To Dismiss at 5.) Remodel's arguments are not persuasive.
First, Doane's actions did not constitute activity directed at California. Doane visited a third party website one time and provided his contact information so as to receive general inquiries about a remodeling project in Massachusetts. (Compl. ¶ 12.) Remodel does not allege that the third party website had any association with California.
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Second, for purposes of the instant action, Doane did not avail himself of the benefits of California law by entering into the Agreement because the Agreement does not control the circumstances of this dispute. Remodel argues that even though the telemarketing calls at issue here postdate the Agreement, the Agreement controls because it provides that all claims relating to the "subject matter" of the Agreement must be brought in California. (Compl. ¶¶ 9, 18, 32-33; Ex. 1 at 3, § 5.) Remodel's interpretation of the Agreement is not convincing.
Under the Agreement, Doane released all claims "that may have been raised at any time through and up to the Effective Date of this Agreement." California courts have a "strong and growing distaste . . . for exculpatory release provisions releasing a tortfeasor from liability for his or her future negligence or misconduct." Ferrell v. S. Nevada Off-Rd. Enthusiasts, Ltd., 147 Cal.App.3d 309, 314 (1983). Under California law, "[t]o be valid and enforceable, a written release exculpating a tortfeasor from liability for future negligence or misconduct must be clear, unambiguous and explicit in expressing the intent of the parties." Baker Pac. Corp. v. Suttles, 220 Cal.App.3d 1148, 1153 (1990)(noting that releases that waive liability for future intentional torts are generally void as a matter of public policy under Cal. Civ. Code § 1668). Here, the mere use of the term "subject matter" hardly evinces Doane's unambiguous intent to release future claims, particularly in light of the "effective date" language. Furthermore, the Agreement provides for the application of California law. California Civil Code Section 1542, however, states that a "general release does not extend to claims which the creditor does not know or suspect to exist . . . at the time of executing the release." (Ex. 1 at 2, § 2.) The Agreement does not contain a waiver of Section 1542.
Thus, nothing in the Agreement suggests that Doane intended to release Remodel from any telemarketing-related claim in perpetuity. Doane's demand letter did not reference the Agreement or invoke any California law, but rather referenced only federal and Massachusetts law. (Ex. 1.) As relevant to this dipsute, Doane did not purposely avail himself of the benefits of California law.
Because Doane neither directed activity at California nor purposefully availed himself of the benefits of California law, this Court does not have specific personal jurisdiction over him.
For the foregoing reasons, Doane's Motion to Dismiss is GRANTED. Plaintiff's Complaint is DISMISSED for lack of personal jurisdiction.