ROSEMARY MARQUEZ, District Judge.
On February 13, 2017, Magistrate Judge Eric J. Markovich issued a Report and Recommendation (Doc. 158) recommending that this Court deny Defendant Get Air, LLC's second Motion to Dismiss (Doc. 97). Defendant Get Air, LLC objected to the Report and Recommendation (Doc. 164), and Plaintiff responded in opposition (Doc. 170) to Defendant's Objections.
Plaintiff Blake Haines alleges that he suffered catastrophic injuries when he performed a multiple-flip maneuver from a trampoline platform into a foam pit at the Get Air Tucson indoor trampoline park. (Doc. 84 at 10, ¶ 69.) He alleges that Get Air, LLC created deficient and defective safety rules applicable to trampoline park customers and supplied those safety rules to Get Air Tucson for use in the Tucson trampoline park. (Id. at 6, ¶¶ 37-38.)
Defendant Get Air, LLC filed its first Motion to Dismiss for lack of personal jurisdiction on July 30, 2015. (Doc. 43.) This Court denied that motion as moot after granting Plaintiff leave to amend his complaint. (Doc. 83.) Plaintiff filed his Third Amended Complaint (Doc. 84) on February 8, 2016.
On March 1, 2016, Get Air, LLC filed the currently pending Motion to Dismiss for lack of personal jurisdiction. (Doc. 97.) After allowing the parties time to conduct limited jurisdictional discovery (see Doc. 117), Judge Markovich found that Plaintiff had met his burden of establishing a prima facie showing of specific personal jurisdiction, and accordingly recommended that Get Air, LLC's Motion to Dismiss be denied. (Doc. 158.)
A district judge must "make a de novo determination of those portions" of a magistrate judge's "report or specified proposed findings or recommendations to which objection is made." 28 U.S.C. § 636(b)(1). "If no objection or only partial objection is made, the district court judge reviews those unobjected portions for clear error." Johnson v. Zema Sys. Corp., 170 F.3d 734, 739 (7th Cir. 1999); see also Prior v. Ryan, CV 10-225-TUC-RCC, 2012 WL 1344286, at *1 (D. Ariz. Apr. 18, 2012) (reviewing for clear error unobjected-to portions of Report and Recommendation); Fed. R. Civ. P. 72(b) advisory committee's note to 1983 addition ("[w]hen no timely objection is filed, the court need only satisfy itself that there is no clear error on the face of the record in order to accept the recommendation" of a magistrate judge).
Plaintiff alleges that this Court has specific (as opposed to general) personal jurisdiction over Get Air, LLC. (See Doc. 102 at 3.) Judge Markovich accordingly applied the three-prong test for specific personal jurisdiction:
(Doc. 158 at 5-6 (citing Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 802 (9th Cir. 2004)).)
Judge Markovich held that Plaintiff had identified evidence sufficient to support a finding that Get Air, LLC purposefully directed its activities at Arizona by creating a generic employee handbook with the specific intent that it be used at all then-existing and future Get Air trampoline parks, including Get Air Tucson; that Plaintiff's claims arose out of and relate to Get Air, LLC's contacts with Arizona because they are based on the allegedly defective safety rules contained in the employee handbook; and that this Court's exercise of personal jurisdiction over Get Air, LLC would be reasonable. In its Objections, Get Air, LLC argues that the Magistrate Judge's Report and Recommendation erroneously describes the deposition testimony of Amy Iverson, Jacob Goodell, Val Iverson, and Jessica Bybee
The evidence indicates that Get Air, LLC operated a trampoline park in Roy, Utah but that the Get Air Roy park is now closed, and Get Air, LLC is currently a holding company. (V. Iverson Dep. at 7:10-19, 19:4-15, 23:14-24:8; J. Goodell Dep. at 15:5-15.) Trampoline Parks, LLC is a company that designs and constructs trampoline parks nationwide and internationally. (V. Iverson Dep. at 7:21-25, 18:7-19:3; J. Goodell Dep. at 45:22-24.) Both companies were originally founded by Val Iverson. (V. Iverson Dep. at 7:10-15, 21-25.) In approximately 2013, a company called Get Air Management, LLC was formed in order to manage various Get Air trampoline parks, including Get Air Tucson. (V. Iverson Dep. at 9:4-12; J. Goodell Dep. at 67:10-68:3.) However, Val Iverson and his family began expanding the Get Air business by opening and supporting parks in new locations prior to the creation of Get Air Management, LLC. The deposition testimony of Amy Iverson and Jacob Goodell shows significant confusion regarding whether support for new Get Air trampoline parks was performed on behalf of Get Air, LLC or Trampoline Parks, LLC prior to the formation of Get Air Management, LLC. For example, Amy Iverson testified: "I guess the confusion lies in that, in my mind, it was all the same thing. I worked for my father-in-law [Val Iverson], and he gave me some assignments and I did them." (A. Iverson Dep. at 85:21-24; see also id. at 90:2-12.)
Jacob Goodell—the son-in-law of Val Iverson—founded Get Air Tucson and took the employee handbook in use at Get Air Roy to the Tucson facility to supply to Get Air Tucson employees as part of their training. (J. Goodell Dep. at 15:18-19, 16:19-23, 25:19-21, 27:11-28:8, 34:6-35:6, 54:23-55:9.) The employee handbook was originally created for the Get Air Roy trampoline park, at the direction of Val Iverson, by an employee named Jessica Bybee. (J. Bybee Dep. at 14:12-14, 15:21-18:2.)
Jacob Goodell testified that an employee handbook created for Trampoline Parks, LLC would be very different than the handbook that he took to Get Air Tucson, because Trampoline Park, LLC was in the business of constructing—rather than operating— trampoline parks, and its employees were construction workers. (J. Goodell Dep. at 28:13-29:19.) Amy Iverson testified similarly that there was a separate employee handbook for Trampoline Parks, LLC, and that Trampoline Parks, LLC was in the business of building parks rather than running them. (A. Iverson Dep. at 28:8-22, 59:13-16, 78:19-79:3; see also V. Iverson Dep. at 18:16-19:3 (testifying that Trampoline Parks, LLC designs and builds trampoline parks but does not operate them.)
Other evidence corroborates Amy's testimony that she revised the employee handbook on behalf of Get Air, LLC for use in other Get Air trampoline parks. The handbook itself is titled "Get Air, LLC Employee Handbook,"
In short, there is a factual dispute regarding whether Amy Iverson prepared a generic employee handbook on behalf of Get Air, LLC or Trampoline Parks, LLC. While there is evidence indicating she created the handbook while working as an independent contractor for Trampoline Parks, LLC, there is also significant evidence supporting a finding that she created it on behalf of Get Air, LLC at the request of the owners of Get Air, LLC. Judge Markovich appropriately resolved the factual dispute in Plaintiff's favor. See Mavrix Photo, Inc. v. Brand Techs., Inc., 647 F.3d 1218, 1223 (9th Cir. 2011).