J. RANDAL HALL, District Judge.
Presently pending before the Court is Strange Engineering, Inc.'s ("Defendant") Motion to Dismiss or, in the Alternative, Motion to Transfer Venue. (Doc. no. 9.) After a review of the Complaint and the affidavits provided by the parties, Defendant's motion is
This case arises from the destruction of Ennis Thomas' ("Plaintiff") drag racing vehicle. Plaintiff is a professional drag racer, and Defendant is in the business of fabricating and assembling aftermarket automotive parts, including rear end assemblies. (Compl. ¶¶ 1, 2.)
Plaintiff entered into a contract to purchase a Vehicle Rear End ("Rear End") welded and manufactured by Defendant. (
Defendant fabricated and assembled the Rear End at its facility in Morton Grove, Illinois and shipped the product to Power-Pro's Tennessee office. (
Upon receiving the Rear End, Plaintiff attached it to his drag racing vehicle. (Compl. ¶ 11.) On February 6, 2010, Plaintiff traveled from his home in Georgia to attend a drag race in Florida. During the race, his vehicle crashed after the weld on the Rear End fractured. (
On April 1, 2011, Plaintiff brought a negligence action against Defendant in the Superior Court of Columbia County. (
On May 20, 2011, Defendant removed the case to this Court on the basis of diversity jurisdiction. (Doc. no. 1.) Defendant subsequently filed the present motion to dismiss contending that this Court lacks personal jurisdiction. (Doc. no. 9.) In support of its motion to dismiss, Defendant submitted the affidavit of its General Manager John McGivern. (Doc. no. 9, Ex. 3.) This affidavit supports Defendant's argument that it does not have sufficient contacts with the state of Georgia to warrant the exercise of personal jurisdiction.
In opposition to Defendant's motion, Plaintiff submitted his own affidavit and the affidavit of David Turner, Chief Executive Officer for Turner's Automotive, Inc., a Georgia corporation that regularly orders parts from Defendant. According to Plaintiff, these affidavits demonstrate that Defendant is subject to personal jurisdiction in Georgia. Plaintiff also noted that no discovery had been conducted in the case and requested that this Court defer ruling on the motion to dismiss to allow the parties additional time to obtain affidavits and declarations. (Doc. no. 14 at 1-2.) This additional time would allow Plaintiff the opportunity to ascertain the full nature of Defendant's contacts with the state of Georgia and better respond to Defendant's argument that this Court is without jurisdiction.
After considering Defendant's request, the Court issued an Order permitting the parties to engage in limited jurisdictional discovery. (Doc. no. 22.) The parties were given forty-five (45) days from the date of the Order to file supplemental responses to Defendant's motion to dismiss. (Doc. no. 22.) Plaintiff, however, did not take advantage of the jurisdictional discovery and failed to supplement his response within the forty-five (45) day window. Therefore, this Court will now address Defendant's motion to dismiss and consider only the parties' original briefs and affidavits.
"In the context of a motion to dismiss for lack of personal jurisdiction in which no evidentiary hearing is held, the plaintiff bears the burden of establishing a prima facie case of jurisdiction over the movant, nonresident defendant."
To determine whether a nonresident defendant is subject to personal jurisdiction in Georgia, the Court must perform a two-part analysis.
The Eleventh Circuit has held that `the Georgia long-arm statute does not grant courts in Georgia personal jurisdiction that is coextensive with procedural due process," but instead "imposes independent obligations that a plaintiff must establish for the exercise of personal jurisdiction that are distinct from the demands of procedural due process."
Defendant contends that this Court should dismiss this case pursuant to Rule 12(b) (2) of the Federal Rules of Civil Procedure because Defendant is not subject to personal jurisdiction in Georgia. In support of this argument, Defendant contends that it does not maintain any offices in the state of Georgia and does not have any employees who reside in Georgia. (McGivern Aff. ¶ 5.) Moreover, Defendant asserts that it is not domesticated in or authorized to do business in Georgia and does not manufacture goods in Georgia. (
Plaintiff, however, asserts that this Court has personal jurisdiction over Defendant pursuant to subsections (1), (2) and (3) of the Georgia long-arm statute. Plaintiff argues that a number of factors support the exercise of personal jurisdiction over Defendant. These factors include: (1) Defendant contracted with a Georgia resident, (2) Defendant advertises its products in catalogs that are distributed in Georgia, (3) Defendant attends drag races in Georgia and regularly promotes its products at these races, (4) Defendant maintains a facility in McDonough, Georgia, and (5) Plaintiff incurred medical expenses in Georgia.
As noted above, to determine whether it can exercise personal jurisdiction, the Court must first examine whether the exercise of personal jurisdiction is proper under Georgia's long-arm statute.
Plaintiff asserts that this Court has personal jurisdiction over Defendant pursuant to subsections (2) and (3) of the
Georgia long-arm statute. Under subsection (2), a nonresident defendant is subject to personal jurisdiction in Georgia if it "commits a tortious act or omission within this state." O.C.G.A. § 9-10-91(2). plaintiff suggests that because the Rear End was defective when shipped to Georgia, the act occurred in Georgia. The Court does not agree. The clear language of subsection (2) requires that the nonresident defendant commit a tortious act in the state of Georgia. O.C.G.A. 9-10-91(2). A tortious act occurs "where the allegedly negligent act or omission was made. . . ."
Plaintiff also contends that personal jurisdiction is proper under subsection (3) of the long-arm statute. Pursuant to subsection (3), personal jurisdiction exists if the defendant "commits a tortious injury in this state caused by an act or omission outside this state if the tortfeasor regularly does or solicits business, or engages in any other persistent course of conduct . . . in this state." O.C.G.A. § 9-10-91(3). In support of his claim that subsection (3) applies, Plaintiff sets forth numerous factors to establish that Defendant engaged in a persistent course of conduct in Georgia. The Court, however, need not address these factors because Defendant did not commit a tortious injury in Georgia, and therefore subsection (3) is inapplicable.
Plaintiff contends that the injury occurred in Georgia because he underwent medical treatment in the state following his accident and therefore suffered an economic injury in Georgia. This argument is without merit. The Georgia Court of Appeals has held that a tort occurs where the actual injury takes place and not where the economic consequences of the injury arise.
Plaintiff also contends that jurisdiction is proper under subsection (1) of the long-arm statute because Defendant transacted business in the state. The Georgia long-arm statute, O.C.G.A. 9-19-91, provides in relevant part:
O.C.G.A. § 9-19-91(1). To meet the "transacts any business" prong of the Georgia long-arm statute, a nonresident defendant must purposefully do some act or consummate some transaction in Georgia.
Based on the record before the Court, it is clear that, under a literal interpretation of the long-arm statute, Defendant transacted business in Georgia. Defendant shipped a product to Georgia and derived revenue from the sale of that product. Nothing in subsection (1) of the long-arm statute "requires the physical presence of the nonresident in Georgia or minimizes the import of a nonresident's intangible contacts with the State."
Having found that Georgia's long-arm statute permits the exercise of personal jurisdiction, the Court must now address the due process component of the jurisdictional analysis. "The Due Process Clause protects an individual's liberty interest in not being subject to binding judgments imposed by foreign sovereigns."
To satisfy the minimum contacts analysis, Plaintiff must demonstrate that Defendant "purposefully availed" itself to the protection and laws of the state of Georgia, such that it "should reasonably anticipate being haled into court" here.
Here, Defendant is a foreign corporation that is not licensed to do business in Georgia and does not have offices or employees in Georgia. Although Defendant sold a Rear End to a Georgia resident, this transaction, without more, is insufficient to satisfy the due process requirements. In
The sale of the Rear End appears to be an isolated transaction in the state of Georgia. Plaintiff failed to present any evidence suggesting that Defendant regularly contracts with Georgia residents. In fact, based on the evidence before the Court, it does not appear that there were any direct negotiations or a history of other dealings between Plaintiff and Defendant. Instead, Plaintiff ordered the Rear End from Power-Pro's offices in Tennessee, and Power-Pro contacted Defendant in Illinois. This is not a case where Defendant reached out to a Georgia resident or had knowledge at the time of contracting that the product would reach Georgia. The only portion of the contract that involved the state of Georgia was the shipment of the product to Plaintiff's principal place of business in Grovetown, Georgia. Shipment, however, cannot be the basis for personal jurisdiction.
Construing all justifiable inferences in favor of Plaintiff, aside from the sale of the Rear End to Plaintiff, the only contacts Defendant had with the state of Georgia were its advertisements and the fact that Defendant attended drag races in Georgia.
Additionally, Defendant admits that it is part of a National Hot Rod Association ("NHRA") contingency program whereby it pays a racer a small contingency fee if the racer uses Defendant's parts, displays stickers indicating that the vehicle contains Defendant's parts, and wins a race. (
Moreover, Plaintiff cannot rely on Defendant's attendance at Georgia drag races to establish personal jurisdiction. Plaintiff stated that Defendant "has it trailers or personnel present at various races in the State of Georgia . . . marketing its products." (Thomas Aff. ¶ 6.) However, Defendant rebutted Plaintiff's broad assertion with evidence that in the last five years, Defendant only attended one racing event in the state of Georgia, which occurred in April of 2009. Attending this single race cannot amount to "significant activity" and thus does not provide the minimum contacts necessary to satisfy the due process requirements.
In short, Plaintiff has failed to establish a prima facie case of personal jurisdiction over Defendant because Defendant's contacts with Georgia are too attenuated to satisfy the minimum contacts analysis. To exercise such jurisdiction would violate Defendant's rights under the Due Process Clause of the Fourteenth Amendment.
Defendant also requests a transfer of venue to the Middle District of Florida, the place where the accident occurred. Pursuant to 28 U.S.C. § 1406(a), even if the Court lacks personal jurisdiction, it may correct venue and jurisdictional defects through the transfer of venue.
For the foregoing reasons, Defendant's notion (doc. no. 9) is
The Court did not utilize Plaintiff's "formula" when considering Defendant's contacts with the state because the "formula" is based solely on conjecture. Plaintiff failed to present any evidence substantiating his calculations. Moreover, Plaintiff relied on his "formula" because "without discovery, he [could not] say with certainty . . . what percentage of [Defendant's] sales occur with residents of Georgia." (
Additionally, Plaintiff asserts that its engineering expert is located in Columbia, South Carolina and that Defendant had its expert inspect the vehicle in Columbia County, Georgia. The fact that an engineer is located in South Carolina is irrelevant to the inquiry of whether personal jurisdiction is proper in Georgia. Moreover, while Defendant's expert travelled to Georgia to inspect the vehicle following the accident, the minimum contacts analysis focuses on the relationship between Defendant and the forum state prior to the event in question. A subsequent inspection of the vehicle does not support the assertion that Defendant engaged in significant activities with the state of Georgia prior to the incident giving rise to the current Suit.
Plaintiff also relies on the Georgia Court of Appeals decision in