SARAH S. VANCE, District Judge.
Before the Court are (1) defendant Hibbard Inshore, LLC's motion to dismiss for lack of personal jurisdiction, and (2) plaintiff Kristopher Embry's motion to remand.
This case arises from an employment dispute.
Plaintiff alleges that defendant terminated his employment unexpectedly on June 26, 2018.
On December 19, 2018, plaintiff filed a petition for damages in Orleans Parish Civil District Court seeking his unpaid wages, penalty wages, attorney's fees, costs, and interest pursuant to the Louisiana Wage Payment Act.
Plaintiff also filed a motion to remand shortly after the case was removed to federal court.
Personal jurisdiction is "an essential element of the jurisdiction of a district court, without which the court is powerless to proceed to an adjudication." Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 584 (1999) (alterations and internal quotation marks omitted). A district court may exercise personal jurisdiction over a defendant if "(1) the long-arm statute of the forum state creates personal jurisdiction over the defendant; and (2) the exercise of personal jurisdiction is consistent with the due process guarantees of the United States Constitution." Revell v. Lidov, 317 F.3d 467, 469 (5th Cir. 2002). Because Louisiana's long-arm statute, La. R.S. 13:3201, extends jurisdiction to the limits of due process, the Court need only consider whether the exercise of jurisdiction in this case satisfies federal due process requirements. Dickson Mar. Inc. v. Panalpina, Inc., 179 F.3d 331, 336 (5th Cir. 1999).
Personal jurisdiction may be either general or specific. Seiferth v. Helicopteros Atuneros, Inc., 472 F.3d 266, 271 (5th Cir. 2006). "The plaintiff bears the burden of establishing jurisdiction but is required to present only prima facie evidence." Id. at 270. General jurisdiction over a foreign defendant exists if the defendant's "affiliations with the State are so `continuous and systematic' as to render them essentially at home in the forum State." Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 919 (2011). The Fifth Circuit has articulated a three-step inquiry to determine whether specific jurisdiction exists. Seiferth, 472 F.3d at 271. First, the plaintiff must show that "the defendant has minimum contacts with the forum state, i.e., . . . it purposely directed its activities toward the forum state or purposefully availed itself of the privileges of conducting activities there." Id. Second, the plaintiff must show that his "cause of action arises out of or results from the defendant's forum-related contacts." Id. If the plaintiff makes these showings, "the burden shifts to the defendant to defeat jurisdiction by showing that its exercise would be unfair or unreasonable." Id.
When the district court rules on a motion to dismiss for lack of personal jurisdiction without an evidentiary hearing, the "uncontroverted allegations in the plaintiff's complaint must be taken as true, and conflicts between the facts contained in the parties' affidavits must be resolved in the plaintiff's favor." Johnston v. Multidata Sys. Int'l Corp., 523 F.3d 602, 609 (5th Cir. 2008). But the district court is not required "to credit conclusory allegations, even if uncontroverted." Panda Brandywine Corp. v. Potomac Elec. Power Co., 253 F.3d 865, 869 (5th Cir. 2001).
Defendant argues that the Court must dismiss plaintiff's claims because this Court does not have personal jurisdiction over the defendant.
The Court may adjudicate plaintiff's claims if it has either general or specific jurisdiction over the defendant. Plaintiff does not argue that the Court has general jurisdiction, and the Court finds that it does not. General jurisdiction over a non-resident defendant exists only if the defendant's "affiliations with the State are so `continuous and systematic' as to render them essentially at home in the forum State." Goodyear, 564 U.S. at 919. Hibbard Inshore's state of incorporation and its principal place of business are both Michigan.
Turning to specific jurisdiction, plaintiff has the burden of first making a prima facie showing that defendant has purposefully availed itself of the privilege of conducting activities in the state of Louisiana such that it invoked the benefits and protection of that state's laws and created minimum contacts. Seiferth, 472 F.3d at 271. Second, plaintiff must show that his cause of action is related to defendant's contact with the forum. Id. To determine whether a business has the necessary minimum contacts, courts look at many factors, including: (1) whether the defendant has a physical presence in the state, (2) whether the defendant conducts business in the state, (3) whether the contract underlying the business transaction at issue was signed in the state, and (4) whether the contract at issue called for performance in the state. Monkton Ins. Servs., 768 F.3d at 433.
But it is well-settled that an employee's personal contacts with a forum are not automatically attributed to their employer. Burger King Corp. v. Rudzewicz, 471 U.S. 462, 478 (1985). "The unilateral activity of those who claim some relationship with a nonresident defendant cannot satisfy the requirement of contact with the forum State." Id. at 474; Walden v. Fiore, 571 U.S. 277, 285 (2014) (holding that the "minimum contacts analysis looks to the defendant's contacts with the forum State itself, not the defendant's contacts with persons who reside there" (internal quotation marks omitted)). The unilateral actions of an employee do not create minimum contacts in a forum for his employer unless there is evidence that the employer purposefully availed itself of the benefits and protections of the laws of the forum. In other words, "the plaintiff cannot be the only link between the defendant and the forum." Id.
Here, there is no evidence that Hibbard Inshore, as opposed to the plaintiff, created minimum contacts with the state of Louisiana. Plaintiff has submitted an affidavit attesting to the following facts in support of the Court's jurisdiction over the defendant: (1) plaintiff informed defendant when he was hired that in the future he intended to work at least partly from Louisiana; (2) he made and received both sales calls to potential clients and project update calls with existing clients from his residence in New Orleans; (3) he often took business trips in and out of the New Orleans airport, which he alleges saved the defendant money because New Orleans was closer to his destinations than Michigan, where Hibbard Inshore's office is located, or Pennsylvania, where he lived when he was not in New Orleans; (4) he attended trade shows, conferences, and business meetings in New Orleans; (5) he took clients to dinner in New Orleans when they were in the city; (6) he once retained a New Orleans-based translator to work on a project for defendant and paid her on behalf of defendant in New Orleans; (7) he solicited clients in the southeastern United States and used his location in New Orleans as a selling point; (8) he purchased office supplies and sent packages via Hibbard's Fedex account in New Orleans; (9) he received packages, stored marketing materials, and used a computer owned by defendant in his New Orleans home.
These facts demonstrate a relationship between plaintiff and the state of Louisiana, but they do not show that defendant purposely directed its activities toward the state or purposefully availed itself of the privileges of conducting activities here. While plaintiff worked partly from Louisiana for the second two years of his employment, he did so of his own volition and not at the direction of the defendant. Defendant attests that it has never been licensed or authorized to conduct business in Louisiana, and that it has never leased, rented, or owned property in Louisiana.
Further, plaintiff has not shown precisely how much time he spent in Louisiana from 2016-2018. Plaintiff traveled frequently for work,
In cases where other district courts have held that an employer with a remote employee was subject to personal jurisdiction where the employee lived, the courts focused on the employer's purposeful outreach to recruit an employee from that state. See Hall v. Rag-O-Rama, LLC, 359 F.Supp. 499, 512 (E.D. Ky. 2019) (holding that employer's contact with Kentucky was not the result of the plaintiff's unilateral conduct because the employer "recruited Plaintiff in Kentucky, sent a signed contract to Plaintiff in Kentucky, and engaged in a close working relationship with Plaintiff in Kentucky for a substantial period of time"); Williams v. Preeminent Protective Servs. Inc., 81 F.Supp.3d 265, 272 (E.D.N.Y. 2018) (holding that employer purposefully availed itself of the forum "when they hired plaintiff to conduct their marketing and communications while she lived in Brooklyn"). Defendant did not go to the state of Louisiana to recruit the plaintiff, because at the time defendant hired plaintiff and negotiated his employment contract, plaintiff lived in Pennsylvania.
Courts have also focused on whether the employer preferred or required that the employee work in the forum state. See Winner v. Tryko Partners, LLC, 333 F.Supp.3d 250, 260 (W.D.N.Y. 2018) (holding that personal jurisdiction existed when employer hired plaintiff "with the express agreement from the outset, that she would work from New York," and the employer "affirmatively did not want her at its corporate office in New Jersey" (internal quotation marks and alternations omitted)); cf. File Image Servs., LLC v. Klein, No. 09-484, 2009 WL 2412443, at *2 (E.D. Wis. 2009) (holding that even if "defendants were fully aware that the plaintiff had relocated to Wisconsin, this is insufficient to cause the defendants to be subject to the jurisdiction of Wisconsin courts" when "[t]here [was] no suggestion that the contract specified where the work was to be performed"). Plaintiff provides no evidence that defendant wanted him to work from Louisiana. At most, defendant passively acquiesced in his decision to move there while he was not visiting client sites. A failure to object affirmatively to an employee's unilateral decision does not constitute purposeful availment.
Multiple other district courts have held that minimum contacts were not established when the plaintiff employee was the only employee in the state, and the employer passively allowed the plaintiff to move to that state, or the employment contract did not require that the work be performed in a particular location. See Jeffs v. World Monuments Fund, Inc., No. 17-198, 2017 WL 4864981, at *4 (E.D. Pa. 2017) (finding no minimum contacts when contract was negotiated outside of Pennsylvania, plaintiff was "neither instructed nor required to live in Pennsylvania," and, although plaintiff attended meetings in Pennsylvania on defendant's behalf, "nothing in the record indicates that Plaintiff was required to solicit business in Pennsylvania as a condition of his employment"); Rosenberg v. Deutsche Bank AG, No. 11-02200, 2012 WL 3744632, at *5 (D. Colo. May 22, 2012), adopted by No. 11-02200, 2012 WL 3744631 (D. Colo. Aug. 28, 2012) (finding no minimum contacts when it was "undisputed that it was Plaintiff's unilateral decision to relocate to Colorado"); Wright v. Zacky & Sons Poultry, LLC, 105 F.Supp.3d 531, 540 (M.D.N.C. 2015) (finding no minimum contacts when "neither [plaintiff's employer] nor the contract required him to be in North Carolina while performing those duties" and defendant merely acquiesced to plaintiff's trips to North Carolina where he would work from home). Judge Martin Feldman in this district has also held that, in similar circumstances, employing a remote worker did not establish minimum contacts. See Sciortino v. CMG Capital Mgmt. Grp., Inc., No. 16-11012, 2016 WL 4799099, at *6 (E.D. La. Sept. 14, 2016). In Sciortino, a defendant employer in a Louisiana Wage Payment Act case did not establish minimum contacts by hiring an employee who worked mainly from his home office in Louisiana because, among other reasons, defendant did not maintain an office or own property in Louisiana; the plaintiff applied for the position from outside of Louisiana and negotiated the terms of his employment outside of Louisiana; plaintiff was the only employee who resided in Louisiana; and plaintiff's benefits were administered in another state. Sciortino, No. 16-11012, 2016 WL 4799099, at *4-6. The Court finds that the facts and reasoning of Sciortino and the other district court cases finding that minimum contacts were not established are analogous to those in this case, where plaintiff also negotiated his employment contract outside the state, was the only employee in the state, and had his benefits administered outside the state.
The relevant case law establishes that when a person working remotely makes a unilateral decision to move after being hired, an employer's mere acquiescence or indifference to the employee's decision does not constitute purposeful availment of the benefits of a state and protection of its laws when the employer is not conducting business in the state. Accordingly, plaintiff has not met his burden of establishing a prima facie showing of defendant's minimum contacts with the state of Louisiana.
For the foregoing reasons, defendant's motion to dismiss for lack of personal jurisdiction is GRANTED. Plaintiff's motion to remand is DENIED AS MOOT.