ANDREA K. JOHNSTONE, Magistrate Judge.
The plaintiff P.C. Hoag & Company ("P.C. Hoag") brings this action against Man Lift Manufacturing ("Man Lift"), All Terrain Aerial Lifts ("ATAL"), and A-1 Expert Tree Service ("A-1") (collectively, the "defendants") asserting various claims stemming from the purchase of an aerial lift that P.C. Hoag contends is defective. Man Lift moves to dismiss the claims advanced against it for lack of personal jurisdiction. Doc. no. 7.
When personal jurisdiction is contested, the plaintiff bears the burden of establishing that the court has jurisdiction over the defendant.
"In making a prima facie showing of jurisdiction, a plaintiff need not, and indeed may not, rely only on the allegations in the complaint."
The relevant facts, construed in the light most favorable to P.C. Hoag, are as follows.
P.C. Hoag is a New Hampshire corporation with its principal place of business in New Hampshire. Hoag Aff. ¶ 1, doc. no. 8-2. P.C. Hoag provides arborist services throughout New Hampshire.
In January 2012, Peter Hoag, the president of P.C. Hoag, contacted ATAL about purchasing an aerial lift. Pl.'s Ex. A at 3, doc. no. 8-3. P.C. Hoag contends that the ATAL representative held himself out to be an authorized agent for Man Lift. Hoag Aff. ¶ 2. After some negotiations and delays, the ATAL representative sent a subject written purchase and sales agreement for an A70 TDI Track Drive Aerial Lift ("aerial lift") to P.C. Hoag's place of business in New Hampshire. Pl.'s Ex. A at 2-3, Hoag Aff. ¶ 3. In November 2012, P.C. Hoag purchased the aerial lift. Hoag Aff. ¶ 2.
The aerial lift purchased by P.C. Hoag was made in Man Lift's Wisconsin facility. Pl.'s Ex. A at 3; Hoag Aff. ¶ 2; Dunn Aff. ¶ 1. Around the time P.C. Hoag purchased the aerial lift, Man Lift contacted Hoag directly to inform him that the lift would be ready by November 5th. Pl.'s Ex. A at 3. Soon after, Man Lift contacted Hoag again to inform him that the lift would not be available until November 14th.
Man Lift contends that it did not contract to sell the aerial lift to P.C. Hoag. Dunn Aff. ¶ 2. Instead, Man Lift alleges it provided a quote to ATAL for two aerial lifts with no knowledge as to the ultimate buyers of the lifts.
P.C. Hoag experienced a number of substantial problems with the lift shortly after it was delivered to New Hampshire. Hoag Aff. ¶ 4. P.C. Hoag cites for example that the aerial lift was difficult to start and the lift's engine, outrigger, battery, tool circuit, paint, and hour meter were dysfunctional.
P.C. Hoag alleges additional issues were found with the lift in December 2013 and January 2014. Hoag Aff. ¶ 5. In March 2014, Hoag wrote a letter to Man Lift chronicling P.C. Hoag's issues with the lift and providing notice that it intended to revoke its acceptance of the lift. Pl.'s Ex. A. Two weeks later, Joe Banks, a vice president of Man Lift, responded to Hoag's letter. Pl.'s Ex. B at 2, doc. no. 8-4. Banks's letter to Hoag stated that "[a]lthough you didn't purchase the machine from Man Lift we are the manufacturer and we've been willing to deal with you directly."
In May 2014, a second Man Lift technician traveled to New Hampshire to repair the lift. Hoag Aff. ¶ 6. According to P.C. Hoag, the repairs were again unsuccessful.
Based on the foregoing allegations, P.C. Hoag filed suit against Man Lift, A-1, and ATAL in six counts: strict liability (count I); negligence (count II); breach of express warranty (count III); breach of implied warranty (count IV); breach of contract (count V); and revocation of acceptance (count VI). Compl. ¶¶ 10-39. In December 2015, Man Lift removed P.C. Hoag's action to this court. Doc. no. 1.
Man Lift argues in its motion to dismiss that P.C. Hoag has failed to plead facts sufficient to establish that this court has personal jurisdiction over it. Specifically, Man Lift contends that P.C. Hoag's claims do not arise out of any contacts it had with New Hampshire and any contacts it had with New Hampshire were initiated by P.C. Hoag. Man Lift additionally claims that is would be burdensome to appear in the state.
In its objection, P.C. Hoag alleges its claims arise from Man Lift's attempts to satisfy its warranty obligations and negligent attempts to repair the aerial lift's defects in New Hampshire. P.C. Hoag further argues that Man Lift's contacts with it were voluntary, therefore subjecting it to jurisdiction in New Hampshire.
"Whether a court has personal jurisdiction in a diversity action over a nonresident defendant depends on whether both the forum state's long-arm statute and the due process requirements of the United States Constitution are satisfied."
"The Fourteenth Amendment requires that a defendant have sufficient `minimum contacts' with the forum such that `maintenance of the suit does not offend traditional notions of fair play and substantial justice.'"
There are two categories of personal jurisdiction: general and specific.
The First Circuit follows a three-prong test to determine whether specific personal jurisdiction exists:
"To satisfy the relatedness prong, the cause of action must arise from or relate to the defendant's contacts with the forum state."
Because "specific jurisdiction is tied to the particular claim asserted, a nonresident defendant's contacts are evaluated separately for contract and tort claims."
Man Lift argues that P.C. Hoag's claims do not arise out of its contacts with New Hampshire because it did not participate in the negotiation or sale of the lift purchased by P.C. Hoag. Man Lift also claims that its only contacts with New Hampshire were repairs made by a Man Lift technician in the state, phone and email conversations with P.C. Hoag, and P.C. Hoag shipping the lift from New Hampshire to Wisconsin for additional repairs. In response, P.C. Hoag contends that its claims arise from Man Lift's contacts with New Hampshire because Man Lift took action in New Hampshire in recognition of its warranty obligations.
Here, there is sufficient evidence to establish relatedness to New Hampshire. The exhibits submitted concerning P.C. Hoag's negotiations with ATAL and subsequent purchase of the lift suggest some contacts between P.C. Hoag and Man Lift during the formation of the contract. In its March 2014 letter to Man Lift, P.C. Hoag stated that it purchased the lift from Man Lift, not ATAL.
In addition to relatedness, "specific jurisdiction requires that the defendant's contacts represent a purposeful availment of the privilege of conducting activities in the forum state, thereby invoking the benefits and protections of that state's laws and making the defendant's presence before the state's courts foreseeable."
Man Lift argues that litigation in New Hampshire was not foreseeable because its only contacts with the forum were after the sale of the lift and initiated by P.C. Hoag. In response, P.C. Hoag cites its exhibits to contend that Man Lift voluntarily sent technicians to New Hampshire to repair the lift pursuant to lift's warranty and, since P.C. Hoag purchased the lift, Man Lift has expressed a desire "deal with [P.C. Hoag] directly" in New Hampshire. Pl.'s Ex. B at 1.
In an affidavit submitted by Donald Dunn, the Chairman of Man Lift, he contends that Man Lift sold two aerial lifts to ATAL without knowledge that they would be bought by P.C. Hoag or shipped to New Hampshire. Dunn Aff. ¶ 5. However, in viewing the facts in the light most favorable to the plaintiff at this early stage, it is likely Man Lift was aware that its lift would be shipped to New Hampshire and, consequently, its warranty obligations would be based in the state. Around the same time P.C. Hoag purchased the lift from ATAL, Man Lift independently contacted P.C. Hoag on at least two occasions to inform it when the lift would be ready. Pl.'s Ex. A at 3. Additionally, before the lift was shipped to P.C. Hoag's place of business in New Hampshire, Hoag traveled to Man Lift's Wisconsin facility to train with the lift.
After the lift was delivered, Man Lift sent a technician from its facility in Wisconsin to New Hampshire three different times to attempt to repair the lift. Hoag Aff. ¶ 6. On a fourth occasion, Man Lift made arrangements with a New Hampshire mechanic shop to act on behalf of Man Lift to perform remedial work on the lift.
Man Lift contends that, although multiple technicians traveled to New Hampshire to repair the lift, only one repair was made during the lift's one-year warranty. At this stage, the distinction is irrelevant. Even if additional repairs were unnecessary pursuant to the lift's warranty, "[c]ompetitive business practices may make it advantageous for out-of-state manufacturers to travel to other states to make repairs and to service the products in issue."
Therefore, because Man Lift had knowledge that its lift would be shipped to and used in New Hampshire, sent technicians on three occasions from Wisconsin to New Hampshire to repair the lift, and arranged for a New Hampshire mechanic shop to perform repairs on behalf of Man Lift, P.C. Hoag has sufficiently demonstrated Man Lift's purposeful availment to the state.
"Even after concluding that minimum contacts exist, personal jurisdiction may only be exercised if it would be reasonable, pursuant to a series of factors known as the `Gestalt factors.'"
As to the first factor, "the concept of burden is inherently relative, and, insofar as staging a defense in a foreign jurisdiction is almost always inconvenient and/or costly . . . this factor is only meaningful where a party can demonstrate some kind of special or unusual burden."
The second factor also weighs in favor of personal jurisdiction. A state "has `significant' interests in providing a convenient forum for disputes involving its citizens and in ensuring that its companies have easy access to a forum when their commercial contracts are said to be breached by out-ofstate defendants."
Addressing the third factor, Man Lift contends that P.C. Hoag cannot identify any strong interests in having its case adjudicated in New Hampshire. P.C. Hoag counters, in part, that it has an interest in litigating in New Hampshire because its witnesses are in the state. Yet, based on the preliminary facts of this case, other key witnesses may also be in California, Nebraska, or Wisconsin. Although this factor does not heavily support either party, P.C. Hoag's "choice of forum must be accorded a degree of deference with respect to the issue of its own convenience."
The remaining factors do not appear to cut for or against personal jurisdiction. "[T]he judicial system's interest in obtaining effective resolution to a given suit will not favor either side in a personal jurisdiction dispute."
In conclusion, P.C. Hoag has proffered just enough evidence to satisfy the relatedness and purposeful availment requirements necessary to show specific personal jurisdiction. Because the minimum contacts question is close, the "Gestalt factors" are important in determining whether personal jurisdiction is appropriate.
Because P.C. Hoag has met its modest burden at this stage of demonstrating that the court may exercise specific personal jurisdiction over the defendant Man Lift, Man Lift's motion to dismiss (doc. no. 7) is denied without prejudice.
SO ORDERED.