ALAN C. KAY, Senior District Judge.
For the following reasons, the Court DENIES Defendants' Motion to Dismiss without prejudice, GRANTS Plaintiffs' Motion for Transfer of Venue, and transfers this case to the Western District of Washington.
This case arises out of an automobile accident that occurred on March 6, 2012 in Las Vegas, Nevada. Plaintiffs Kenneth and Nilda DeSantos are married and citizens of the State of Hawaii. (FAC ¶ 1.) Plaintiffs Gregorio and Norma Lomibao, Gregorio DeSantos's in-laws, are citizens of the Philippines. (
Plaintiffs allege that, on March 6, 2012, they were driving in a Dodge Grand Caravan rental in Las Vegas, and were hit from behind while waiting at a traffic light. (FAC ¶ 8.) Plaintiffs allege that they were hit by a sports utility vehicle driven by Defendant Bourland, who was at the time employed by, and acting within the scope of her employment with, Defendant Halliday. (
On October 16, 2014, Plaintiffs filed their original Complaint against Defendants. (Doc. No. 1.) Plaintiffs filed their First Amended Complaint on December 3, 2014. (Doc. No. 9 ("FAC").) In their First Amended Complaint, Plaintiffs allege that, as a result of Defendants' negligence, they have suffered "permanent bodily injury, shock and embarrassment, pain of body and mind, and emotional and mental distress," and have incurred medical costs in excess of $5,000. (FAC ¶¶ 10-12.) Plaintiff Nilda DeSantos additionally alleges that she "has sustained and will continue to sustain wage losses and/or impairment of earning capacity." (Id. ¶ 12.) Plaintiffs seek general and special damages in an amount to be proven at trial.
On January 12, 2015, Defendants filed the instant Motion to Dismiss, seeking dismissal of the First Amended Complaint on the basis of a lack of personal jurisdiction. (Doc. No. 12.) On March 16, 2015, Plaintiffs filed their memorandum in opposition to the motion. (Doc. No. 37.) Defendants filed their reply on April 20, 2014. (Doc. No. 39.)
A hearing on the motion was held on May 8, 2015. During the hearing, Plaintiffs made an oral motion for transfer of venue should the Court find it lacks personal jurisdiction over Defendants. The Court therefore requested further briefing on Plaintiffs' motion, and on May 13, 2015, Defendants filed their Memorandum in Opposition to Plaintiffs' Oral Motion for Transfer of Venue. (Doc. No. 42.) Plaintiffs filed their reply in support of the motion on May 18, 2015. (Doc. No. 43.)
The Court's exercise of personal jurisdiction over a party may be challenged under Federal Rule of Civil Procedure 12(b)(2). The plaintiff bears the burden of showing that the Court has jurisdiction over the defendant.
When the Court rules without conducting an evidentiary hearing, "the plaintiff need only make a prima facie showing of jurisdictional facts" to avoid dismissal.
In their motion, Defendants seek dismissal of Plaintiffs' First Amended Complaint in its entirety on the basis that the Court lacks personal jurisdiction over them. Because there is no applicable federal statute governing personal jurisdiction in this case, the Court applies Hawaii state law. Fed. R. Civ. P. 4(k)(1)(A);
It is undisputed that Defendants are not citizens or residents of Hawaii, and are rather citizens of the State of Washington. (FAC ¶¶ 3-4.) For a court to exercise personal jurisdiction over a non-resident defendant, due process requires that the defendant "have certain minimum contacts with [the forum] such that the maintenance of the suit does not offend `traditional notions of fair play and substantial justice.'"
"A court may assert general jurisdiction over foreign (sister-state or foreign-country) persons and corporations to hear any and all claims against them when their affiliations with the State are so `continuous and systematic' as to render them essentially at home in the forum State."
To determine whether a nonresident defendant's contacts are sufficiently substantial, continuous, and systematic, the Court must consider their "[l]ongevity, continuity, volume, economic impact, physical presence, and integration into the state's regulatory or economic markets."
Plaintiffs nevertheless argue that the Court may exercise general jurisdiction over Defendants because: (1) Bourland has vacationed in Hawaii at least three times, during which time she checked her work email on her phone; (2) Bourland contributed to an architecture book that may be purchased in Hawaii; and (3) Halliday has a business relationship with the DLR Group, a company that is involved in a school project in Waipahu, Hawaii.
First, as to Bourland's vacations in Hawaii, they fall far short of establishing the type of "continuous and systematic general business contacts" that "approximate physical presence" in Hawaii.
Plaintiffs can point to no case, and the Court's own research has revealed none, suggesting that the activities of a typical tourist on vacation are sufficient to give rise to general jurisdiction. Indeed, courts have found much more substantial contacts to be insufficient under the exacting standard for general jurisdiction.
Similarly, Bourland's contribution to an architecture book that is available for purchase in Hawaii is likewise a far cry from the continuous and systematic forum contacts required for the Court to exercise general jurisdiction over Defendants. Apparently, Bourland provided some of the illustrations in the book, Commercial Drafting and Detailing, which may be purchased online, including, presumably, by customers in Hawaii. (Pl.'s CSF, Ex. 3.) Plaintiffs do not allege that Defendants themselves market the book in Hawaii or otherwise solicit business in the state. Nor do Plaintiffs assert that Defendants themselves (rather than the book's author or publisher) are actually selling the book at all. The mere fact that a book with some illustrations by Bourland may end up, though the normal stream of commerce, being sold to a Hawaii resident, does not in itself come close to satisfying the exacting standard for general jurisdiction.
Finally, the Court also rejects Plaintiffs' argument that Defendant Halliday's business relationship with the DLR Group, a company that does some business in Hawaii, somehow confers general jurisdiction over Defendants in Hawaii. Plaintiffs attempt to make much of the fact that the DLR Group is involved in a construction project for the Waipahu Intermediate School on Oahu. (Opp'n at 17-20.) Defendant Bourland testified in her deposition, however, that Halliday has no involvement with that project, or any other project the DLR Group may have in Hawaii. (Pl.'s CSF, Ex. 1 at 21, 35-36, 39.) Defendants do not dispute that they have done a number of projects for the DLR Group in other states, but there is no evidence before the Court that they have ever done work for the company in Hawaii. Defendants' business relationship with a company that, separate and apart from that relationship, happens to do some business in Hawaii, is not a sufficient contact with the forum state to establish general jurisdiction.
In sum, the Court concludes that Plaintiffs have failed to meet their burden of demonstrating that the Court has general personal jurisdiction over Defendants. Plaintiffs concede, and the Court agrees, that there is no specific jurisdiction here.
As noted above, at the hearing on this matter, Plaintiffs' counsel requested that this Court transfer venue instead of dismissing the case outright, should the Court conclude that personal jurisdiction is lacking. Having found that it lacks personal jurisdiction over Defendants, the Court therefore turns to Plaintiffs' motion for transfer of venue. Plaintiff seeks transfer to the U.S. District Court for the Western District of Washington. (Reply at 2.)
Pursuant to 28 U.S.C. § 1391(b),
Plaintiffs seek a transfer of venue pursuant to 28 U.S.C. § 1404(a) or § 1406(a). Under 28 U.S.C. § 1404(a), a district court may transfer any civil action to any other district or division where it might have been brought if it is in the interests of justice and convenient for the parties and witnesses.
Under § 1406(a), on the other hand, a district court may, "in the interest of justice," transfer an action "laying venue in the wrong division or district" to any district or division in which it could have been brought. 28 U.S.C. § 1406(a). Where a court transfers venue pursuant to § 1406(a), the substantive law of the transferee court is applicable.
The Supreme Court held in
Turning to the substance of the Motion for Transfer, the Court concludes that, pursuant to 28 U.S.C. § 1391(b), venue in the District of Hawaii is not proper. All of the events giving rise to Plaintiffs' claims occurred, or allegedly should have occurred, in Nevada, and this Court has already determined that Defendant' scant conduct in Hawaii is not sufficient to establish personal jurisdiction. Transfer of venue is therefore proper under § 1406(a), as that section is generally applied where the transferor court is not a proper venue for the action.
Plaintiffs assert that the interest of justice would be served by transfer because their case may be time barred should the Court dismiss the case outright, rather than transferring venue. The Supreme Court in
The date of Plaintiffs' alleged injuries in this suit is March 6, 2012. Plaintiffs filed the instant suit in Hawaii on October 16, 2014. (Doc. No. 1.) Under the law of Washington, where Defendants reside, the statute of limitations for tort claims like those brought here is three years from the date of injury. Wash. Rev. Code § 4.16.080 (2011). Under the law of Nevada, where the accident occurred, an action for personal injuries arising out of negligence must be filed within two years of accrual. Nev. Rev. Stat. § 11.190 (2014).
Thus, were Plaintiffs required to re-file anew in district court in Washington or Nevada, it appears that their claims may well be considered time-barred. Dismissing this case would therefore permanently bar Plaintiffs from seeking recovery for damages allegedly stemming from the accident. Section 1406(a) was enacted to enable the Court, in its discretion, to avoid working precisely the type of unjust and harsh consequence that would result from a dismissal of Plaintiffs' claims due to the procedural defects in their filing.
Because "both Congress and the States have made clear, through various procedural statutes, their desire to prevent timely actions brought in courts with improper venue from being time-barred merely because the limitation period expired while the action was in improper court," the Court concludes that transfer of this case is appropriate to prevent any such occurrence.
For the foregoing reasons, the Court DENIES Defendants' Motion to Dismiss without prejudice and GRANTS Plaintiffs' Motion for Transfer of Venue. The Clerk of the Court is directed to transfer this action to the Western District of Washington and close this Court's files in this matter.
IT IS SO ORDERED.