HOLLOWAY, Circuit Judge.
Plaintiff Greg Shrader appeals from a series of orders culminating in a judgment dismissing this action in its entirety for lack of personal jurisdiction over any of the named defendants. We affirm for reasons explained below.
Mr. Shrader brought this tort action pro se, asserting claims for defamation, false-light invasion of privacy, intentional infliction of emotional distress, and civil conspiracy against three groups of defendants: (1) the Stewart defendants (William Bradstreet Stewart and his companies Sacred Science Institute and Institute of Cosmological Economics, Inc.); (2) the Beann defendants (Earik Beann and his company Wave59 Technologies International (Wave59)); and (3) defendant Al Biddinger. None of the defendants resides in Oklahoma, where the case was filed. Mr. Shrader lives and works in Oklahoma,
After most of the defendants (all save Wave59) had sought dismissal for lack of personal jurisdiction, Mr. Shrader moved to amend his complaint for a second time. The district court denied leave to amend on alternative grounds. First, the court noted Mr. Shrader's procedural noncompliance in failing to confer with opposing counsel to determine whether the motion would be contested. Second, the court concluded that further amendment of the complaint would be immaterial in that Mr. Shrader's response to the defendants' pending motions to dismiss would show whether he could re-frame his pleadings so as to forestall dismissal. If so, amendment could then be permitted; if not, amendment would be futile.
Several weeks later, the district court entered three separate orders that granted the pending motions to dismiss for lack of personal jurisdiction, and Mr. Shrader filed his first notice of appeal (Appeal No. 10-7004). The appeal was premature, however, as the claims against Wave59 remained pending. Shortly thereafter, Wave59 moved to dismiss for lack of personal jurisdiction, and the court granted its motion as well. Mr. Shrader sought reconsideration through a "Motion for Objection of Motions to Dismiss," attaching some additional exhibits relating to the issue of personal jurisdiction. The court admitted the exhibits, but otherwise denied the motion. Mr. Shrader then filed his second notice of appeal (Appeal No. 10-7015), citing all of the dismissal orders, the order denying his motion to amend, and the order denying reconsideration.
The plaintiff bears the burden of establishing personal jurisdiction, but where, as here, the issue is raised early on in litigation, based on pleadings (with attachments) and affidavits, that burden can be met by a prima facie showing. Dudnikov v. Chalk & Vermilion Fine Arts, Inc., 514 F.3d 1063, 1069-70 (10th Cir.2008). We review the matter de novo, "taking as true all well-pled (that is, plausible, non-conclusory, and non-speculative) facts alleged in plaintiff['s] complaint." Id. at 1070 (citation omitted). We also must resolve any factual disputes in the plaintiff's favor. Id.
Where, as in Oklahoma, the state long arm statute supports personal jurisdiction to the full extent constitutionally permitted, due process principles govern the inquiry. Intercon, Inc. v. Bell Atl. Internet Solutions, Inc., 205 F.3d 1244, 1247 (10th Cir.2000). "[T]o exercise jurisdiction in harmony with due process, defendants must have `minimum contacts' with the forum state, such that having to defend a lawsuit there would not `offend traditional notions of fair play and substantial justice.'" Dudnikov, 514 F.3d at 1070 (quoting Int'l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945)). Such contacts may give rise to personal jurisdiction over a non-resident defendant either generally, for any lawsuit, or specifically, solely for lawsuits arising out of particular forum-related activities:
Id. at 1078 (citation omitted).
In contrast to the single, overarching requirement of continuous and systematic contacts for general jurisdiction, the "minimum contacts" test for specific jurisdiction encompasses two distinct requirements: "first, that the out-of-state defendant must have `purposefully directed' its activities at residents of the forum state, and second, that the plaintiff's injuries must `arise out of' defendant's forum-related activities." Id. at 1071 (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985)). This court's most extensive discussion of specific jurisdiction, especially as to the "purposeful direction" requirement, is set out in Dudnikov, where we drew heavily on the Supreme Court's elaboration of this requirement in Calder v. Jones, 465 U.S. 783, 104 S.Ct. 1482, 79 L.Ed.2d 804 (1984).
Dudnikov, 514 F.3d at 1072. We also elaborated on the "arising out of" requirement, particularly its causal aspect, see id. at 1078-79.
Finally, even if the "purposeful direction" and "arising out of" conditions for specific jurisdiction are met, that is not the end of the matter. "[W]e must still inquire whether the exercise of personal jurisdiction would offend traditional notions of fair play and substantial justice." Id. at 1080 (quotation omitted). But at that point, "it is incumbent on defendants to present a compelling case that the presence of some other considerations would render jurisdiction unreasonable," id. (quotation omitted), and the defendants have made no effort in that regard here.
A number of circuits have addressed personal jurisdiction in the internet context, considering whether, when, and how such peculiarly non-territorial activities as web site hosting, internet posting, and mass emailing can constitute or give rise to contacts that properly support jurisdiction over the host, poster, or sender. The basic problem with relating such activities directly to the general principles developed pre-internet is that, in a sense, the internet operates "in" every state regardless of where the user is physically located, potentially rendering the territorial limits of personal jurisdiction meaningless. As the Fourth Circuit explained in an early effort to address the matter:
ALS Scan, Inc. v. Digital Serv. Consultants, Inc., 293 F.3d 707, 712 (4th Cir. 2002).
To avoid this untenable result, it is necessary to adapt the analysis of personal jurisdiction to this unique circumstance by placing emphasis on the internet user or site intentionally directing his/her/its activity or operation at the forum state rather than just having the activity or operation accessible there. A good example is ALS Scan's test for specific jurisdiction arising out of internet activity:
Id. at 714. Actually, as ALS Scan acknowledges, this emphasis on intentionally directing internet content or operations at the forum state has its grounding in the "express aiming" requirement the Supreme Court developed in Calder to deal with the somewhat analogous question of specific jurisdiction based on content in nationally distributed print media. See id. Thus, while this court has yet to flesh out a comprehensive position in a published opinion dealing with omnipresent internet activity like web sites and posts, the ALS Scan approach, which is fairly representative of most circuits that have addressed the matter, is compatible with our discussion of personal jurisdiction in Dudnikov.
This approach and its counterparts in other circuits have some immediate implications that are relevant here. The maintenance of a web site does not in and of itself subject the owner or operator to personal jurisdiction, even for actions relating to the site, simply because it can be accessed by residents of the forum state. See, e.g., Johnson v. Arden, 614 F.3d 785, 796 (8th Cir.2010); Carefirst of Md. v. Carefirst Pregnancy Ctrs., Inc., 334 F.3d 390, 401 (4th Cir.2003); Revell v. Lidov, 317 F.3d 467, 471-76 (5th Cir.2002); cf. Soma Med. Int'l v. Standard Chartered Bank, 196 F.3d 1292, 1297, 1298 (10th Cir. 1999) (holding operation of web site insufficient for general jurisdiction; web site not considered in analysis of specific jurisdiction because claims were not related to it). Similarly, posting allegedly defamatory comments or information on an internet site does not, without more, subject the poster to personal jurisdiction wherever the posting could be read (and the subject of the posting may reside). See, e.g., Johnson v. Arden, 614 F.3d at 797; Revell, 317 F.3d at 475-76; Young v. New Haven Advocate, 315 F.3d 256, 258-59, 262-64 (4th Cir.2002). Consistent with the thrust of the Calder-derived analysis for specific jurisdiction in the internet context discussed above, in considering what "more" could create personal jurisdiction for such activities, courts look to indications that a defendant deliberately directed its message at an audience in the forum state and intended harm to the plaintiff occurring primarily or particularly in the forum state.
The answer to the issue of general jurisdiction over the Beann defendants, insofar as it concerns operation of the Wave59 forum where the offending email was posted, is fairly straightforward, particularly on the sparse facts alleged by Mr. Shrader. The forum was simply a vehicle by which members could exchange information, and there is no indication that the Beann defendants interfered with its operation so as to alter its basic passive character
As for specific jurisdiction, the Beann defendants might be subject to suit in Oklahoma based on the allegedly defamatory email posted on the Wave59 forum if they had intentionally directed the forum at Oklahoma. But there is no indication the forum targeted an Oklahoma audience or the work of Oklahoma writers, much less Mr. Shrader personally. Nor are there any facts suggesting the forum had some other connection to Oklahoma. On the contrary, Mr. Shrader's pleadings stressed the forum's non-local nature, repeatedly referring to the fact that it drew an audience from all over the world.
Mr. Shrader attempted to tie the Beann defendants to the acts of the other defendants by alleging, in conclusory and speculative fashion, a civil conspiracy to interfere with his business. These are just the sorts of allegations Dudnikov directs us not to consider, as it pointedly limits the facts that must be accepted for purposes of the jurisdictional analysis to those "well-pled (that is, plausible, non-conclusory, and non-speculative) facts alleged in plaintiff['s] complaint," 514 F.3d at 1070 (citation omitted). As we have held elsewhere, "[i]n order for personal jurisdiction based on a conspiracy theory to exist, the plaintiff must offer more than `bare allegations' that a conspiracy existed, and must allege facts that would support a prima facie showing of a conspiracy." Melea, Ltd. v. Jawer SA, 511 F.3d 1060, 1069 (10th Cir. 2007) (quoting Lolavar v. de Santibanes, 430 F.3d 221, 229 (4th Cir.2005)). See generally Bell Atl. Corp. v. Twombly, 550 U.S. 544, 556-57, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (holding conclusory allegation of conspiracy is insufficient, even when coupled with parallel conduct by defendants). Mr. Shrader has not done that.
The question of general jurisdiction here is potentially more complicated when the Wave59 web site's commercial activities are considered. These do not affect the analysis of specific jurisdiction, since only the contacts out of which Mr. Shrader's tort claims arise are relevant in that respect. As the Fifth Circuit explained in analogous circumstances:
Revell, 317 F.3d at 472 (footnote omitted). But the case for general jurisdiction, which is based on all of a defendant's contacts with the forum state, can sweep much broader to include the sales side of the site.
It should be emphasized that, as we are dealing with general jurisdiction, the commercial contacts here must be of a sort "that approximate physical presence" in the state—and "engaging in commerce with residents of the forum state is not in and of itself the kind of activity that approximates physical presence within the state's borders." Bancroft & Masters, Inc. v. Augusta Nat'l, Inc., 223 F.3d 1082, 1086 (9th Cir.2000); see Revell, 317 F.3d at 471 & n. 19; Bird v. Parsons, 289 F.3d 865, 874 (6th Cir.2002). Nevertheless, most courts would agree that operating a web site selling products to residents of a state can subject the seller to general jurisdiction in that state, depending on the nature and degree of commercial activity with the forum state. See, e.g., Lakin v. Prudential Sec. Inc., 348 F.3d 704, 712-13 (8th Cir.2003) (noting determination of general jurisdiction over commercial web site would require development of facts regarding quantity of transactions with forum residents); Gorman v. Ameritrade Holding Corp., 293 F.3d 506, 513 (D.C.Cir. 2002) (same).
The case law sets the bar quite high, however, denying general jurisdiction absent substantial sales. Compare Campbell Pet Co. v. Miale, 542 F.3d 879, 884 (Fed. Cir.2008) (holding twelve internet sales for $14,000 over eight years insufficient for general jurisdiction); Revell, 317 F.3d at 471 (holding sales of thirty-five subscriptions in two years insufficient for general jurisdiction); Bird, 289 F.3d at 873-74 (holding 4,666 internet domain-name registrations, specifically analogized to sales, insufficient for general jurisdiction); ESAB Group, Inc. v. Centricut, Inc., 126 F.3d 617, 623-24 (4th Cir.1997) (holding twenty-six mail order customers in forum state insufficient for general jurisdiction) with Gator.Com Corp. v. L.L. Bean, Inc., 341 F.3d 1072, 1080 (9th Cir.2003) (finding general jurisdiction based in part on "millions of dollars in sales, driven by an extensive, ongoing, and sophisticated sales effort involving large numbers of direct email solicitations and millions of catalog sales"), vacated as moot on reh'g en banc on basis of settlement, 398 F.3d 1125 (9th Cir.2005). In sum, the best general formulation for this niche of the law may have been provided by the district court in Oklahoma: "A web site will subject a defendant to general personal jurisdiction only when the defendant has actually and deliberately used its website to conduct commercial transactions on a sustained basis with a substantial number of residents of the forum." Smith v. Basin Park Hotel, Inc., 178 F.Supp.2d 1225, 1235 (N.D.Okla.2001) (emphasis added).
Turning back to our case, Mr. Shrader has not emphasized this aspect of the jurisdictional issue, but he has not completely ignored it. He submitted, and
After receiving Mr. Stewart's email about the termination of his business relationship with Mr. Shrader, Mr. Biddinger posted the email on the Wave59 forum in response to an inquiry from another forum member about Mr. Shrader's work. There is no indication that this other member had any connection with Oklahoma. And, as already explained, the Wave59 site and its forum have no particular connection with Oklahoma. Finally, there is nothing about the content of Mr. Shrader's work, or his internet customer base, that has been shown to have any tie to Oklahoma. In sum, the only connection with Oklahoma shown on our record is that Mr. Shrader lives and produces his materials there.
As noted earlier, merely posting information on the internet does not, in itself, subject the poster to personal jurisdiction wherever that information may be accessed. This principle has particular salience for defamation cases: "Posting on the internet from [outside the forum state] an allegedly defamatory statement [about a forum resident] ... does not create the type of substantial connection between [the poster] and [the forum state] necessary to confer specific personal jurisdiction." Johnson v. Arden, 614 F.3d at 797. "[T]he plaintiff's residence in the forum, and suffering of harm there, will not alone support jurisdiction under Calder." Revell, 317 F.3d at 473; accord Young, 315 F.3d at 262. Rather, defamatory postings may give rise to personal jurisdiction if they are directed specifically at a forum state audience or otherwise make the forum state the focal point of the message. Johnson, 614 F.3d at 796; Revell, 317 F.3d at 473; Young, 315 F.3d at 263. The thrust of this case law is consistent with this circuit's restrictive reading of Calder: "Some courts have held that the `expressly aimed' portion of Calder is satisfied when the defendant individually targets a known forum resident. We have taken a somewhat more restrictive approach, holding that the forum state itself must be the focal point of the tort."
It is instructive to compare the instant case with a recent unpublished decision in which this court found specific personal jurisdiction for defamation and related tort claims arising out of a derogatory blog posting that adversely affected the plaintiff's business in New Mexico. See Silver v. Brown, 382 Fed.Appx. 723 (10th Cir.2010). Differences in the two factual scenarios point up what is missing here. First, the blog on which the defendant in Silver posted the derogatory message was not a neutral forum already in place for other purposes, but was created by the defendant specifically to provide a launch pad for his attack on the plaintiff's business. Id. at 725-26, 729. Indeed, the names of the plaintiff and his business were incorporated in the blog's domain name, a fact this court found significant in light of the defendant's deliberate exploitation of search-engine technology to funnel searches regarding the plaintiff and his business to the blog, which warned them about the plaintiff and provided a link to "reputable" competitors. Id. at 725-26 & n. 2, 730. Finally, unlike here, there was no indication that the plaintiff's business, raising capital for new ventures, was conducted through cyberspace with no particular tie to the forum state; on the contrary, "that state [was] unquestionably the center of his business activities." Id. at 730. The plaintiff "funded dinner meetings for eleven years, one evening a month at which New Mexico entrepreneurs pitched their deals to [prospective] investors," and "his work had helped create or save employment for more than 3,000 people in New Mexico." Id. (quotation omitted). In short, both the derogatory message and the blog it was posted on uniquely targeted a business centered in the forum state and were directed at an audience that would inherently have included a substantial number of forum state residents and businesses.
Nothing like that is true of the forum and post at issue here. Given the geographically-neutral content of the message
Mr. Stewart is, of course, of primary interest as the former business associate of Mr. Shrader who authored the allegedly defamatory email directly underlying the various tort claims asserted in this case. But we will start our jurisdictional analysis by considering the exercise of general jurisdiction over Mr. Stewart and his companies based instead on their commercial web site operations, as this possibility can be dismissed quickly in light of its substantial overlap with a similar point already considered and rejected in connection with the Beann defendants. Again, it bears emphasizing that general jurisdiction over a web site that has no intrinsic connection with a forum state requires commercial activity carried on with forum residents in such a sustained manner that it is tantamount to actual physical presence within the state. Revell, 317 F.3d at 471 & n. 19; Bird, 289 F.3d at 874; Bancroft & Masters, 223 F.3d at 1086.
Mr. Shrader submitted exhibits indicating that the Stewart defendants (1) sold books to Mr. Shrader and another Oklahoma resident, and (2) advertized in TradersWorld magazine, which was available for purchase at a Tulsa bookstore. These scant commercial transactions essentially mirror those noted in connection with the Beann defendants, which we have already held do not show defendants "actually and deliberately used [their] website to conduct commercial transactions on a sustained basis with a substantial number of residents of the forum," Smith, 178 F.Supp.2d at 1235. The case law set out in our discussion of the Beann defendants reflects the rejection of general jurisdiction on the basis of considerably more commercial contact with the forum state.
Unlike the other defendants in this case, Mr. Stewart had for some time an ongoing business relationship with Mr. Shrader, editing and selling his materials on market trading. This was conducted primarily through email, but Mr. Stewart also visited Mr. Shrader once in Oklahoma for a period of eleven days to help him work on his materials. We must determine whether these additional contacts support general jurisdiction over Mr. Stewart.
Simply because a defendant has a contractual relationship and business dealings
In light of such authority, we cannot say that Mr. Stewart's direct business contacts with Oklahoma, evidently all limited to his dealings with Mr. Shrader, are sufficient to subject him to general personal jurisdiction there.
The analysis of specific jurisdiction over the Stewart defendants based on the drafting and sending of the offending email overlaps in substantial part with the analysis of specific jurisdiction over Mr. Biddinger for his later posting of the email on the Wave59 forum. That is, insofar as the focal point of the message is concerned, what we said above regarding the lack of any inherent tie to Oklahoma is obviously equally pertinent here.
But that still leaves the critical issue of the audience targeted by the email. And on this point the analysis could potentially diverge significantly, given the targeted nature of email, which is sent to a particular recipient, compared to the indiscriminate accessibility of an internet forum. Here, the apt analogues may be phone calls, faxes, and letters made or sent by out-of-state defendants to forum residents. These have been found sufficient to support specific personal jurisdiction when they directly give rise to the cause of action (typically for fraud effected by the communication), see, e.g., Neal v. Janssen, 270 F.3d 328, 332 (6th Cir. 2001); Oriental Trading Co. v. Firetti, 236 F.3d 938, 943 (8th Cir.2001); Wien Air Alaska, Inc. v. Brandt, 195 F.3d 208, 212-13 (5th Cir. 1999); While case law involving defamation-by-email is less plentiful, a number of district court decisions have followed suit to find specific jurisdiction over out-of-state emailers. See, e.g., Middlebrook v. Anderson, No. Civ. A. 3:04-CV-2294, 2005 WL 350578, at *3-*4 (N.D.Tex. Feb. 11, 2005) (unpub.) (citing several decisions recognizing specific personal jurisdiction based, at least in part, on emails sent into forum state); Mark Hanby Ministries, Inc. v. Lubet, No. 1:06-CV-114, 2007 WL 1004169, at *11 (E.D.Tenn. Mar. 30, 2007) (unpub.).
There is, however, a distinguishing characteristic of email that must be taken into account. Although email is directed to particular recipients, email addresses typically do not reveal anything
Here, Mr. Shrader alleged that Mr. Stewart sent the email to thousands of customers and knew that some of them resided in Oklahoma. If this were all we had to consider, Mr. Shrader might have satisfied his burden on personal jurisdiction, provided his allegation qualified as a "plausible, non-conclusory, and non-speculative" fact to be accepted for purposes of the jurisdictional analysis under Dudnikov, 514 F.3d at 1070. But there is more to consider, as Mr. Stewart submitted affidavits averring generally that he did not send the email to all of his clients and specifically that he did not send it to anyone in Oklahoma. R. vol. 1 at 266, para. 5; 422, para. 6. As Mr. Stewart emphasizes, even well-pleaded jurisdictional allegations are not accepted as true once they are controverted by affidavit (here, based on personal knowledge of the party with direct access to the operative facts). See Wenz v. Memery Crystal, 55 F.3d 1503, 1505 (10th Cir.1995). Thus, absent an opposing showing by Mr. Shrader, through specific averments, verified allegations, or other evidence sufficient to create a genuine issue of fact, Mr. Stewart's affidavits carry the issue. See, e.g., Am. Land Program, Inc. v. Bonaventura Uitgevers Maatschappij, N.V., 710 F.2d 1449, 1454 n. 2 (10th Cir.1983).
Mr. Shrader did not submit any evidence, or even offer the name, of a single Oklahoma resident who received the email from Mr. Stewart. The record does contain a copy of a post to the Wave59 forum dated November 29, 2009, in which a member (identified only as "Bart") refers to his receipt of what clearly sounds like the Stewart email, in a form suggesting that it had had a wide distribution:
R. vol. 1 at 506. But all this post indicates is that Mr. Stewart sent the email in bulk fashion to multiple recipients (which he never denied); it does not indicate that any of the recipients resided in Oklahoma, much less that Mr. Stewart knew they resided there when he sent the email. In sum, Mr. Shrader failed to make a prima facie showing that Mr. Stewart directed the allegedly defamatory email to anyone in Oklahoma. Under principles we have previously discussed, that is a fatal deficiency in his case for specific personal jurisdiction over the Stewart defendants.
Having analyzed the pertinent facts in light of the governing law, we agree with the district court's determination that Mr. Shrader failed to establish personal jurisdiction over any of the defendants. Thus, unless some procedural error tainted the proceedings leading to that determination, we must affirm the district court's dismissal of the action. We turn, therefore, to the other objections raised by Mr. Shrader on this appeal.
The district court cited two reasons for denying Mr. Shrader leave to amend his
Noncompliance with procedures required by local rule is a proper basis for denial of a motion to amend. See, e.g., Barrett v. Orman, 373 Fed.Appx. 823, 826 (10th Cir.2010) (following Lambertsen v. Utah Dep't of Corr., 79 F.3d 1024, 1029-30 (10th Cir.1996) (upholding denial of motion to amend based in part on failure to comply with local rules)). The operative local rule here provides in pertinent part:
E.D. Okla. LCvR 7.1.
Finally, Mr. Shrader argues that even if he failed to establish personal jurisdiction over the defendants, the district court should not have dismissed the action, but should have transferred the case to another court where the action could have been brought. We have recognized such transfers as a discretionary option under 28 U.S.C. § 1631 that should be considered to cure deficiencies relating to personal jurisdiction. See Trujillo v. Williams, 465 F.3d 1210, 1222-23 & n. 15 (10th Cir.2006). But in this case there was a patent impediment to such a course: the three sets of defendants reside in different states, so there was no single court to which the action could be transferred with any assurance that jurisdiction would have been proper. We are aware of no authority even permitting,
Appeal No. 10-7004 is DISMISSED as moot. The judgment of the district court is AFFIRMED. Appellant's Motion to File Exhibits to Brief is DENIED as moot.
Id. at 1124 (citations omitted). Some courts have adopted this approach for analyzing internet contacts. See Tamburo, 601 F.3d at 703 n. 7 (citing cases applying Zippo test, though declining to adopt it). But even these courts tend to employ it more as a heuristic adjunct to, rather than a substitute for, traditional jurisdictional analysis. See, e.g., Revell, 317 F.3d at 471-72; Young, 315 F.3d at 261-64 (applying Zippo model circuit previously adopted in ALS Scan). This court has not taken a definitive position on the Zippo sliding-scale test, though we mentioned Zippo in Soma, 196 F.3d at 1296-97. Nor do we take such a position here in merely considering the passive character of the Wave59 forum as germane to our jurisdictional analysis.