Filed: Aug. 03, 2016
Latest Update: Mar. 03, 2020
Summary: FILED United States Court of Appeals UNITED STATES COURT OF APPEALS Tenth Circuit FOR THE TENTH CIRCUIT August 3, 2016 _ Elisabeth A. Shumaker Clerk of Court JOSEPH R. TOMELLERI, Plaintiff - Appellant, v. No. 15-3230 (D.C. No. 2:14-CV-02113-JAR-GEB) MEDL MOBILE, INC., (D. Kan.) Defendant - Appellee, and JASON SINISCALCHI, Defendant. _ ORDER AND JUDGMENT* _ Before TYMKOVICH, Chief Judge, BACHARACH and MORITZ, Circuit Judges. _ Joseph R. Tomelleri appeals the district court’s order dismissing his
Summary: FILED United States Court of Appeals UNITED STATES COURT OF APPEALS Tenth Circuit FOR THE TENTH CIRCUIT August 3, 2016 _ Elisabeth A. Shumaker Clerk of Court JOSEPH R. TOMELLERI, Plaintiff - Appellant, v. No. 15-3230 (D.C. No. 2:14-CV-02113-JAR-GEB) MEDL MOBILE, INC., (D. Kan.) Defendant - Appellee, and JASON SINISCALCHI, Defendant. _ ORDER AND JUDGMENT* _ Before TYMKOVICH, Chief Judge, BACHARACH and MORITZ, Circuit Judges. _ Joseph R. Tomelleri appeals the district court’s order dismissing his c..
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FILED
United States Court of Appeals
UNITED STATES COURT OF APPEALS Tenth Circuit
FOR THE TENTH CIRCUIT August 3, 2016
_________________________________
Elisabeth A. Shumaker
Clerk of Court
JOSEPH R. TOMELLERI,
Plaintiff - Appellant,
v. No. 15-3230
(D.C. No. 2:14-CV-02113-JAR-GEB)
MEDL MOBILE, INC., (D. Kan.)
Defendant - Appellee,
and
JASON SINISCALCHI,
Defendant.
_________________________________
ORDER AND JUDGMENT*
_________________________________
Before TYMKOVICH, Chief Judge, BACHARACH and MORITZ, Circuit Judges.
_________________________________
Joseph R. Tomelleri appeals the district court’s order dismissing his claims
against MEDL Mobile, Inc. for lack of personal jurisdiction. We affirm.
*
After examining the briefs and appellate record, this panel has determined
unanimously to honor the parties’ request for a decision on the briefs without oral
argument. See Fed. R. App. P. 34(f); 10th Cir. R. 34.1(G). The case is therefore
submitted without oral argument. This order and judgment is not binding precedent,
except under the doctrines of law of the case, res judicata, and collateral estoppel. It
may be cited, however, for its persuasive value consistent with Fed. R. App. P. 32.1
and 10th Cir. R. 32.1.
I. Background
MEDL is a California company that develops software applications (“apps”)
for mobile devices. With the help of Jason Siniscalchi, MEDL developed and
marketed an app called FishID, which provides detailed profiles of U.S. fish species,
as well as fishing information specific to each state.
Tomelleri—a fish illustrator who lives in Kansas—sued MEDL and Siniscalchi
in the District of Kansas for copyright infringement. Tomelleri alleged that MEDL
and Siniscalchi incorporated a number of Tomelleri’s copyrighted fish illustrations in
the FishID app without his permission. After giving the parties time to conduct
jurisdictional discovery, the district court granted MEDL’s renewed motion to
dismiss for lack of personal jurisdiction. The district court found it did not have
general personal jurisdiction over MEDL because the company did not have an office
or agent in Kansas, had never sent an agent to Kansas for business purposes, did not
advertise or have bank accounts in Kansas, and conducted only a small fraction of its
business in Kansas. See Trierweiler v. Croxton & Trench Holding Corp.,
90 F.3d
1523, 1533 (10th Cir. 1996) (listing factors courts have considered in evaluating
general jurisdiction).
The district court also concluded it lacked specific personal
jurisdiction. Applying the applicable two-part test, see Dudnikov v. Chalk &
Vermilion Fine Arts, Inc.,
514 F.3d 1063, 1071 (10th Cir. 2008), the court found
(1) MEDL purposefully directed activities at residents of Kansas by including
Kansas-specific features in the app (namely, maps of Kansas lakes and rivers and
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links to Kansas fishing regulations); but (2) Tomelleri failed to show his injuries
arose from those activities. Finally, the district court denied the parties’ alternative
request to transfer the action to the Central District of California.
II. Legal Standard
Where, as here, a district court dismisses for lack of personal jurisdiction
based only on the complaint and affidavits, we review its decision de novo. Shrader
v. Biddinger,
633 F.3d 1235, 1239 (10th Cir. 2011). We assume all well-pled facts
alleged in the complaint are true and resolve all factual disputes in the plaintiff’s
favor.
Id.
It is the plaintiff’s burden to establish personal jurisdiction.
Id. At this stage,
he satisfies this burden by making a prima facie showing that jurisdiction is proper.
Id.
Serving a summons establishes personal jurisdiction over a defendant when
authorized by federal statute or when the defendant is subject to the jurisdiction of
courts in the state where the district court is located. See Fed. R. Civ. P. 4(k)(1)(A),
(C). Tomelleri sued MEDL under the Copyright Act, which does not provide for
nationwide service of process. See 17 U.S.C. §§ 101-1332. The Kansas long-arm
statute supports personal jurisdiction to the extent constitutionally permitted, Kan.
Stat. Ann. § 60-308(b), so we must determine whether the exercise of personal
jurisdiction comports with due process,
Shrader, 633 F.3d at 1239.
To exercise personal jurisdiction over a defendant, due process requires the
defendant to “have ‘minimum contacts’ with the forum state, such that having to
3
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 (1945)). The “minimum contacts” requirement can
be met in one of two ways. First, a court can exercise general jurisdiction over an
out-of-state company to hear any claim against it if the company’s “affiliations with
the State are so continuous and systematic as to render [it] essentially at home in the
forum State.” Goodyear Dunlop Tires Operations, S.A. v. Brown,
564 U.S. 915, 919
(2011) (internal quotation marks omitted). Second, a court can assert specific
jurisdiction if the plaintiff shows (1) the out-of-state company has “purposefully
directed its activities at residents of the forum state,” and (2) the plaintiff’s injuries
arose out of the company’s forum-related activities (known as the “nexus”
requirement).
Dudnikov, 514 F.3d at 1071 (internal quotation marks omitted).
III. Analysis
Tomelleri does not dispute the district court’s determination that it lacked
general jurisdiction, but he challenges the court’s finding that he failed to establish
specific jurisdiction. In particular, Tomelleri argues the district court erred by
reaching the nexus issue and concluding he failed to satisfy the nexus requirement.
Tomelleri also claims the district court erred by denying his alternative request to
transfer. We disagree.
A. The district court did not err by reaching the nexus issue.
Tomelleri claims the district court should not have considered whether his
injuries arose out of MEDL’s Kansas-related activities because MEDL failed to argue
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the issue in its renewed motion to dismiss. We agree with Tomelleri that courts, as
neutral arbiters, rely on the parties to frame the issues. Greenlaw v. United States,
554 U.S. 237, 243 (2008). But “[w]hen an issue or claim is properly before the court,
the court is not limited to the particular legal theories advanced by the parties.”
Kamen v. Kemper Fin. Servs., Inc.,
500 U.S. 90, 99 (1991). Rather, the court “retains
the independent power to identify and apply the proper construction of governing
law.”
Id. This allows the court to “consider an issue antecedent to and ultimately
dispositive of the dispute before it, even an issue the parties fail to identify and
brief.” U.S. Nat’l Bank of Or. v. Indep. Ins. Agents of Am., Inc.,
508 U.S. 439, 447
(1993) (internal quotation marks and ellipsis omitted).
MEDL argued in its renewed motion to dismiss that Tomelleri failed to
establish specific jurisdiction. It also cited the controlling legal standard, which
required Tomelleri to show that (1) MEDL purposefully directed activities at Kansas
residents and (2) Tomelleri’s injuries arose out of those activities. MEDL focused its
argument on the first requirement, but it did not concede the second (indeed, doing so
would have been inconsistent with its argument that it did not direct activities at
Kansas residents to begin with). Whether Tomelleri satisfied the requirements of
specific jurisdiction was therefore properly before the court, and it was his burden to
show that both requirements were satisfied, see
Dudnikov, 514 F.3d at 1069. The
district court did not err by holding Tomelleri to that burden.
5
B. The district court did not err by finding that Tomelleri failed to show
his injuries arose out of MEDL’s Kansas-related activities.
Tomelleri argues that he satisfied his burden of showing that his injuries arose
out of MEDL’s Kansas-related activities. Although we have not selected a test to
determine when this requirement is met, we have considered two approaches used by
other courts: but-for causation and proximate cause.
Id. at 1078. A plaintiff satisfies
the but-for standard if he shows the defendant’s forum-related activities were an
“event in the causal chain leading to the plaintiff’s injury.”
Id. The proximate cause
standard, “by contrast, is considerably more restrictive and calls for courts to
examine[] whether any of the defendant’s contacts with the forum are relevant to the
merits of the plaintiff’s claim.”
Id. (internal quotation marks omitted). The district
court held that Tomelleri failed under either standard, and we agree.
Tomelleri failed to show that MEDL’s Kansas-related activities—including
maps of Kansas waters and links to Kansas fishing regulations in the app—led to his
injury. The primary injury Tomelleri identifies in his complaint is lost licensing
revenue. But Tomelleri does not explain how the app’s Kansas-specific features
caused him to lose revenue. He does not claim his illustrations were used only in
conjunction with the app’s Kansas-specific features, which are separate from the
app’s profiles of fish species. Nor does Tomelleri allege that any Kansas residents
bought or used the app. In short, it appears Tomelleri would be in no different
position if MEDL eliminated the app’s Kansas-specific features entirely. Because
6
Tomelleri fails to satisfy the but-for standard, he necessarily fails the more restrictive
proximate cause standard.
C. The district court did not abuse its discretion by denying Tomelleri’s
alternative request to transfer.
Finally, Tomelleri argues the district court erred by denying his alternative
request to transfer the case to the Central District of California, where MEDL’s
offices are located. Courts have discretion under 28 U.S.C. § 1631 to cure
jurisdictional defects by transferring a case to a district where it could have been
brought. Trujillo v. Williams,
465 F.3d 1210, 1222-23 (10th Cir. 2006). We review a
transfer decision for abuse of discretion.
Id. at 1223.
The district court denied Tomelleri’s transfer request because it found that
while the Central District of California may have personal jurisdiction over MEDL,
there was no assurance it had jurisdiction over Siniscalchi, who lived in Connecticut.
As the district court noted, there is “a patent impediment” to transfer when there is
“no single court to which the action could be transferred with any assurance that
jurisdiction would [be] proper.”
Shrader, 633 F.3d at 1249. When this is true,
transfer may not even be permitted, much less required. See
id. at 1249-50.
Tomelleri argues the district court should have resolved this impediment by
granting Siniscalchi’s then-pending motion to dismiss and transferring Tomelleri’s
remaining claims against MEDL. But Tomelleri did not ask the court to do this, and
effectively prevented it from doing so by obtaining leave to respond to Siniscalchi’s
motion to dismiss after the court ruled on MEDL’s motion.
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Because there was no assurance the Central District of California would have
personal jurisdiction over both defendants, the district court did not abuse its
discretion by denying Tomelleri’s transfer request.
IV. Conclusion
We affirm the district court’s order.
Entered for the Court
Timothy M. Tymkovich
Chief Judge
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