IVAN L.R. LEMELLE, District Judge.
Before the Court is Defendant St. Charles Pontiac, Inc.'s Motion to Dismiss Plaintiff's Complaint for lack of personal jurisdiction pursuant to Fed. R. Civ. P. 12(b)(2). (Rec. Doc. 9). Plaintiff, Automotive Experts, L.L.C., opposes the motion (Rec. Doc. 12) and Defendant has filed a reply. (Rec. Doc. 13). For the reasons that follow,
Plaintiff, Automotive Experts, L.L.C., filed a Complaint in this Court on August 26, 2014, invoking the Court's diversity jurisdiction pursuant to 28 U.S.C. § 1332 and alleging breach of contract for failure to pay on an open account by Defendant St. Charles Pontiac Inc. (Rec. Doc. 1). Plaintiff is a Louisiana limited liability company, with its registered office in the Parish of Orleans, State of Louisiana, which provides advertising and promotional services to automotive dealerships. (Rec. Doc. 1 at 1). Defendant is a Delaware corporation licensed to do business in Illinois. (Rec. Doc. 9-2 at 1). It has one place of business located in the town of St. Charles, Illinois from which it sells new cars to customers in the Chicago market. (Rec. Doc. 9-2 at 1).
On or about November 14, 2013, Plaintiff and Defendant entered into two "Contracts of Retention" under which Plaintiff was to provide advertising and promotional services to Defendant in connection with certain upcoming sales promotion events.
According to Plaintiff's Complaint, it performed all services due under the contracts but was never paid by Defendant for the services rendered. (Rec. Doc. 1 at 3). On July 11, 2014, Plaintiff claims it sent a certified letter making demand pursuant to La. Rev. Stat. ann. § 9:2781 for payment of an invoice in the amount of $91,768.00 within 30 days of receipt. (Rec. Doc. 1 at 3). When Defendant allegedly failed to respond or pay within the designated period, Plaintiff instituted the instant breach of contract action seeking that amount in addition to reasonable attorney fees and costs. (Rec. Doc. 1 at 3).
Defendant contends this Court lacks personal jurisdiction over it for purposes of the instant suit. In support of this contention, Defendant argues it lacks the minimum contacts necessary to establish jurisdiction in Louisiana and has never availed itself of the privilege of conducting activities within Louisiana, nor invoked the benefits or protection of Louisiana law. (Rec. Doc. 9 at 1). Further, Defendant argues the contract at issue was negotiated and performed in Illinois, rather than Louisiana. Consequently, Defendant argues the Court has neither general nor specific personal jurisdiction over it and should dismiss the case. (Rec. Doc. 9 at 1). Alternatively, Defendant argues the Court should transfer the case to the appropriate federal district in Illinois for further resolution. Id.
Plaintiff argues the Court has personal jurisdiction over Defendant for the reasons that: Defendant entered into a contract with Plaintiff, a Louisiana resident; Plaintiff executed the contract in Louisiana; Plaintiff retained services of other Louisiana entities in fulfilling its obligations under the contract; all marketing materials were printed and mailed from Louisiana; and the parties agreed the contract would be governed by and construed in accordance with the laws of the State of Louisiana. (See Rec. Doc. 12 at 2). Accordingly, Plaintiff argues "there is no question this Court has personal jurisdiction over St. Charles and it must answer for the torts it committed under Louisiana law." (Rec. Doc. 12 at 3).
Where a defendant challenges personal jurisdiction, the party seeking to invoke the power of the court bears the burden of proving that jurisdiction exists. Wyatt v. Kaplan, 686 F.2d 276, 280 (5th Cir. 1982). The plaintiff need not, however, establish jurisdiction by a preponderance of the evidence; a prima facie showing suffices. Id. This court must resolve all undisputed facts submitted by the plaintiff, as well as all facts contested in the affidavits, in favor of jurisdiction. Id. The Due Process Clause of the Fourteenth Amendment guarantees that no federal court may assume jurisdiction in personam of a non-resident defendant unless the defendant has meaningful "contacts, ties, or relations" with the forum state. Int'l Shoe Co. v. Washington, 326 U.S. 310, 319, 66 S.Ct. 154, 90 L.Ed. 95 (1945).
Jurisdiction may be general or specific. Where a defendant has "continuous and systematic general business contacts" with the forum state, Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 415, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984), the court may exercise "general" jurisdiction over any action brought against that defendant. Id. at 414, 104 S.Ct. 1868 n. 9. Where contacts are less pervasive, the court may still exercise "specific" jurisdiction "in a suit arising out of or related to the defendant's contacts with the forum." Id. at 414, 104 S.Ct. 1868 n. 8. Because it is undisputed that Defendant has no continuous and systematic general business contacts with Louisiana, this case presents only the issue of specific jurisdiction.
A federal court may satisfy the constitutional requirements for specific jurisdiction by a showing that the defendant has "minimum contacts" with the forum state such that imposing a judgment would not "offend traditional notions of fair play and substantial justice." Int'l Shoe, 326 U.S. at 316, 66 S.Ct. 154; Luv N' care, Ltd. V. Insta-Mix, Inc., 438 F.3d 465, 469 (5th Cir. 2006). In Nuovo Pignone v. STORMAN ASIA/MV, 310 F.3d 374 (5th Cir. 2002), the Fifth Circuit "consolidated the personal jurisdiction inquiry into a convenient three-step analysis:"
See also, Luv N' care, Ltd., 438 F.3d at 469. A forum state may create additional jurisdictional restrictions by statute, which bind the federal courts. However, Louisiana's so-called "long-arm" statute extends jurisdiction to the constitutional limits of due process, causing the inquiries here to fold into one. Id. (citing La. Rev. Stat. ann. § 13:3201(B)).
In the context of the instant Rule 12(b)(2) motion, Plaintiff bears the burden of making a prima facie showing of personal jurisdiction. Thus, as a preliminary matter, Plaintiff must establish both that Defendant had sufficient "minimum contacts" with Louisiana and that its cause of action "arises out of" those contacts.
As to the issue of minimum contacts, Plaintiff relies upon: (1) Defendant's entering into a contract with a Louisiana domiciliary, (2) the choice of law provision designating Louisiana law as applicable to the contracts, and (3) various other items relating to Plaintiff's relations with the forum.
With respect to the negotiations leading up to execution of the contract, Plaintiff's Opposition and the declaration of Vincent Iacono, a manager for Plaintiff, state merely that: "St. Charles entered into a contract with the plaintiff, Automotive Experts, LLC." (See Rec Docs. 12 at 2, 12-2 at 1). Iacono expounds that no representative of Plaintiff visited Defendant's location and that "all negotiations regarding the contract and sales were done on the telephone." (Rec. Doc. 12-2 at 1). By contrast, in its Rule 12(b)(2) motion, Defendant asserts that: "In 2013, Automotive approached St. Charles in Illinois regarding the possibility of conducting sales events at St. Charles's location." (Rec. Doc. 9-2 at 2). Further, Defendant asserts that it executed its contract in Illinois, while stating that upon information and belief, Plaintiff never executed either contract. (Rec. Doc. 9-2 at 2). Plaintiff, however, avers that it executed the contract at its office in New Orleans. (Rec. Doc. 12-2 at 1). As to this issue, the Court notes that copies of the contracts attached to Plaintiff's Complaint are only signed by Defendant (See Rec. Doc. 1 at 5,7), while the copies attached to Plaintiff's Opposition to the instant motion appear to be signed by both parties (See Rec. Doc. 12-1 at 2,4). While the Court must accept as true all the allegations in the complaint and resolve all factual conflicts in favor of the plaintiff, here, this merely compels the conclusion that all negotiations were conducted via telephone and that the parties executed the contracts at their respective locations. Further, Plaintiff has failed to introduce any evidence or arguments that conflict with Defendant's contention that Plaintiff initiated contact with it for purposes of negotiating the service agreements. Thus, these facts are insufficient to demonstrate that Defendant has "purposefully directed its activities at the forum state." Burger King v. Radziewicz, 471 U.S. 462, 472, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985)).
As to the terms of the contract itself, Plaintiff places particular emphasis on the inclusion of a choice-of-law clause applying the laws of the State of Louisiana. (See Rec. Doc. 12 at 4). Nevertheless, the Fifth Circuit has held that choice-of-law provisions, without more, are insufficient to create personal jurisdiction or put a defendant on notice that it might be subject to suit in a different state. See Stuart v. Spademan, 772 F.2d 1185, 1195 ("Choice-of-law provisions warrant some weight in considering whether a defendant has purposefully invoked the benefits and protection of a state's laws for jurisdictional purposes, although such a provision standing alone would be insufficient to confer jurisdiction.")(internal citations omitted). Unlike a forum-selection clause, a choice-of-law provision itself does not evince the defendant's anticipation of being haled into the foreign forum. Id. Accordingly, the provision relating to the application of Louisiana law is merely one factor to be considered in determining whether sufficient minimum contacts exist for the Court to exercise jurisdiction.
In light of the foregoing, the Court must turn to the terms of the contracts and the performances contemplated thereunder in order to determine whether any further evidence supports minimum contacts in this case. The contracts state that Defendant "retains [Plaintiff] to provide the services listed
Id. at 480. By contrast, in Hydrokinetics, Inc. v. Alaska Mech., Inc., the Fifth Circuit concluded that insufficient contacts existed with the forum (Texas), where the plaintiff relied merely on the following facts:
700 F.2d 1026, 1028-29 (5th Cir. 1983).
The Court turns now briefly to Plaintiff's alternative argument, that Defendant waived its objection to personal jurisdiction by failing to timely file an answer in the instant proceedings, and in allegedly failing to object at the Rule 16 scheduling conference.
Waiver of the defense of personal jurisdiction is governed by Fed. R. Civ. P. 12(h)(1), which provides:
In the instant case, following the filing of Plaintiff's Complaint, Defendant sought and was granted an extension of time, to October 20, 2014, within which to answer or file other responsive pleadings. (See Rec. Doc. 6). It is true that Defendant did not comply with this deadline, failing to file the instant responsive pleading until December 23, 2014. In the interim, the parties held a Rule 16 scheduling conference with the Court on December 4, 2014. (See Rec. Doc. 7). Defendant contends its failure to file a timely answer or other pleading was caused by its belief that Plaintiff would voluntarily dismiss this action after the Attorney General for the State of Illinois instituted an investigation into Plaintiff's performance under the contract at issue in this case and subsequently reached an agreement with Plaintiff prohibiting it from doing business in the State of Illinois.
Under the present circumstances, the only responsive pleading filed by Defendant was the instant motion to dismiss, which raised the defense of lack of personal jurisdiction. Thus, Defendant complied with the requirements of Rule 12(h)(1) as they pertain to waiver of that defense. Further, it is no answer that counsel for Defendant participated in the Rule 16 scheduling conference, as counsel indicated at that conference that the instant motion was to be forthcoming. Mere participation in a scheduling conference will not suffice to waive a Rule 12(b) defense, particularly where the participating party indicates its intention to assert the defense at issue. See, e.g., Rojek v. Catholic Charities, Inc., 2009 WL 3834013 (E.D. Mich. 2009)(finding that defendant did not waive defense of insufficient process by participating in scheduling conference and citing to Rule 12(h) as the source of the rules governing waiver). In light of the foregoing, the Court finds that Defendant did not waive its Rule 12(b)(2) defense by participating in the December 4, 2014 scheduling conference.
As to the issue of transfer, Plaintiff does not request this form of relief and the Court declines Defendant's invitation to transfer the matter to the United States District Court for the Northern District of Illinois. Although this would undoubtedly be a proper venue, given Defendant's statements pertaining to its business operations, the Court is unable to conclude that this is the appropriate action, absent any indication from Plaintiff. It may be that Plaintiff would prefer to attempt to establish personal jurisdiction in some other, more convenient forum, and this Court's order will not prevent it from so doing.
Plaintiff failed to carry its burden of making out a prima facie showing of personal jurisdiction, specifically by failing to establish minimum contacts between Defendant and Louisiana. Plaintiff further failed to establish that Defendant waived its Rule 12(b)(2) defense either by failing to timely answer or by participating in the Rule 16 scheduling conference. Because the Court declines to transfer this case,