CLAY D. LAND, Chief District Judge.
Defendants Quorum Health Corporation ("Quorum Health") and Community Health Systems, Inc. ("Community Health") are parent holding companies that own subsidiaries that transact business in Georgia. Plaintiff has sued the Georgia subsidiaries for violating Title I of the Patient Protection and Affordable Care Act of 2010, 42 U.S.C. § 18111 et seq.; Title III of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12181 et seq.; and Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. § 794 et seq. Plaintiff also seeks to hold the parent holding companies liable for these violations.
Quorum Health and Community Health claim that they do not "[t]ransact[] any business" in Georgia as required for personal jurisdiction under Georgia's long-arm statute, O.C.G.A. § 9-10-91. They therefore seek dismissal of Plaintiff's Complaint against them.
To establish personal jurisdiction over nonresident corporations such as Quorum Health and Community Health, Plaintiff must demonstrate that they are covered by Georgia's long-arm statute and that the exercise of jurisdiction does not offend due process. Diamond Crystal Brands, Inc. v. Food Movers Intern., Inc., 593 F.3d 1249, 1259 (11th Cir. 2010); see Innovative Clinical & Consulting Servs., LLC v. First Nat'l Bank of Ames, 620 S.E.2d 352, 354 (Ga. 2005) (stating that nonresident defendants must commit certain acts "delineated by the [long-arm] statute" to be subject to personal jurisdiction in Georgia "notwithstanding that these [statutory] limiting conditions may preclude a Georgia court from exercising personal jurisdiction over the nonresident to the fullest extent permitted by constitutional due process"). The inquiry under the long-arm statute is separate from the due process analysis. Diamond Crystal Brands, 593 F.3d at 1254. Thus, the Court begins with the Georgia long-arm statute.
Plaintiff relies upon subsection (1) of the long-arm statute, which authorizes the exercise of jurisdiction in Georgia over any nonresident who individually or through an agent "[t]ransacts any business within this state." O.C.G.A. § 9-10-91(1).
On the issue of whether Quorum Health and Community Health transact business in Georgia, the present record is essentially indistinguishable from the record presented in Drumm Corp. v. wright, 755 S.E.2d 850 (Ga. Ct. App. 2014). In that case, the Georgia Court of Appeals held that a parent holding company was not subject to jurisdiction under subsection (1) of Georgia's long-arm statute even though it exercised minimal operational control over its Georgia subsidiary. Id. at 854-55. Bound by the Georgia appellate courts' interpretation of their long-arm statute, this Court is left with no choice but to grant Quorum Health's and Community Health's motions to dismiss.
As in Drumm, Quorum Health and Community Health presented evidence that they are separate and distinct legal entities, that their Georgia subsidiaries are separate and distinct legal entities, that the Georgia subsidiaries are removed from them in the chain of ownership via other subsidiaries, and that they have no control over the internal business operations and affairs of their Georgia subsidiaries. Cf. id. at 854. Like the plaintiff in Drumm, Plaintiff here failed to point to affidavits or documentary evidence to rebut those facts. There is certainly insufficient evidence to support a finding that Quorum Health and Community Health exercise such control over their subsidiaries that the subsidiaries are merely divisions or departments of their parent companies. See id. (relying on almost identical evidence and finding that the plaintiff failed to establish that the parent holding company controlled the subsidiary). Moreover, Plaintiff failed to point to evidence of the amount of earnings that Quorum Health and Community Health derive from their subsidiaries' activities in Georgia, the degree of operational control that they exercise over their subsidiaries, the extent to which they have promulgated policies that the Georgia subsidiaries must follow, and the extent of their involvement in the enforcement of their policies. Instead, the present record establishes that Quorum Health and Community Health, like the defendant in Drumm, occupied the status of parent investors. As noted in Drumm, engaging in conduct consistent with such status, including monitoring subsidiaries' performance and articulating general policies and procedures, does not constitute "[t]ransact[ing] any business," O.C.G.A. § 9-10-91(1), for purposes of Georgia's long-arm statute.
IT IS SO ORDERED.