WILMA A. LEWIS, Chief District Judge.
THIS MATTER comes before the Court on Plaintiff's Motion to Transfer the action to the U.S. District Court for the Southern District of Florida. (Dkt. No. 97). For the reasons discussed below, the Court will deny the Motion and dismiss Plaintiff's Complaint.
Plaintiff Troy Francis filed a Complaint on April 28, 2010 in this strict liability and negligence action. (Dkt. No. 1). Defendant Bridgestone Corporation ("Bridgestone"), the only defendant remaining in this action, is a Japanese corporation with its principal place of business in Tokyo, Japan. (Id. at ¶ 1).
According to the Complaint, Plaintiff was driving his 2005 Mitsubishi Lancer automobile—equipped with a Bridgestone Potenza tire—on the Melvin Evans Highway in St. Croix on February 9, 2008. (Id. at ¶ 7). Plaintiff lost control of the vehicle when the tread on the Potenza tire allegedly separated, causing the vehicle to leave the road and overturn. (Id.). As a result, Plaintiff alleges that he "suffered severe and permanent injuries during the accident," including fractures of the neck, ribs, and forearm, brain injury, lacerations, and disfigurement. (Id. at ¶¶ 7, 9). Plaintiff brings two causes of action—strict liability and negligence—alleging that Bridgestone is strictly liable for the injuries that he sustained, or alternatively, that Bridgestone negligently manufactured, engineered, designed, marketed, tested or failed to test, inspected, distributed, and sold the subject tire. (Id. at ¶¶ 10-23).
Bridgestone filed a Motion to Dismiss for Lack of Personal Jurisdiction (Dkt. No. 7), on which the Court deferred ruling—instead granting Plaintiff ninety days to conduct limited jurisdictional discovery (Dkt. No. 14). Plaintiff subsequently filed a Motion to Transfer the action to the U.S. District Court for the Southern District of Florida. (Dkt. No. 25). In a Memorandum Opinion entered on September 18, 2013, the Court found that it lacked personal jurisdiction over Bridgestone, but determined that, if a Florida district court could exercise personal jurisdiction, a transfer to that court would be appropriate. (Dkt. No. 90 at 5, 10). The Court, however, questioned Plaintiff's reliance for jurisdiction in Florida on general assertions such as "Bridgestone Corporation boasts of having a 20 percent market share of the tire market in North America" and "Florida has the fourth biggest economy in North America and the twentieth biggest economy in the world." (Id. at 21). Because the Court concluded that the record was insufficient on the Florida jurisdiction question—including on whether Plaintiff could establish an agency relationship between Bridgestone and BATO so as to impute any BATO operations in Florida to Bridgestone—it granted Plaintiff's request to conduct additional jurisdictional discovery, and denied Bridgestone's Motion to Dismiss and Plaintiff's Motion to Transfer without prejudice. (Id. at 22; Dkt. No. 91).
Plaintiff subsequently filed the instant Motion to Transfer, incorporating and supplementing his previous Motion to Transfer. (Dkt. No. 97). Bridgestone opposes Plaintiff's Motion. (Dkt. No. 99).
In its September 18, 2013 Opinion, the Court found that 28 U.S.C. § 1631 provides an appropriate basis for the analysis of a potential transfer of this case. (Dkt. No. 90 at 8).
"A federal court sitting in diversity undertakes a two-step inquiry in determining whether personal jurisdiction exists: the exercise of jurisdiction must (1) be appropriate under the state long-arm statute and (2) not violate the Due Process Clause of the Fourteenth Amendment to the United States Constitution." Carmouche v. Tamborlee Management, Inc., ___ F.3d ___, 2015 WL 3651521, at *2 (11th Cir. 2015) (quotation and citation omitted). Both prongs of this inquiry must be satisfied in order to establish personal jurisdiction over a nonresident defendant. Id.; see Borden v. East-European Ins. Co., 921 So.2d 587, 592 (Fla. 2006).
"The Due Process Clause of the Fourteenth Amendment sets the outer boundaries of a state tribunal's authority to proceed against a defendant." Goodyear Dunlop Tires Operations, S.A. v. Brown, 131 S.Ct. 2846, 2853 (2011). Accordingly, because the Court concludes under the circumstances here that a Florida district court's exercise of general jurisdiction over Bridgestone would exceed constitutional bounds, it need not address whether the requirements of Florida's long-arm statute are satisfied.
General personal jurisdiction is invoked when—as here—the plaintiff's cause of action arises from the defendant's non-forum related activities. See Isaacs v. Arizona Bd. of Regents, ___ F. App'x ___, 2015 WL 1534362, at *3 (3d Cir. 2015). The "canonical decision" of International Shoe Co. v. Washington, 326 U.S. 310 (1945), announced that a state may exercise personal jurisdiction over an out-of-state defendant if the defendant has "`certain minimum contacts with [the state] such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.'" Goodyear, 131 S. Ct. at 2853 (quoting International Shoe, 326 U.S. at 316). Addressing out-of-state corporate defendants, International Shoe established that general personal jurisdiction comports with due process only in "`instances in which the continuous corporate operations within a state [are] so substantial and of such a nature as to justify suit against it on causes of action arising from dealings entirely distinct from those activities.'" Id. (quoting International Shoe, 326 U.S. at 318).
The Supreme Court has explained that a corporation's place of incorporation and principal place of business are the "quintessential paradigm" bases for the exercise of general jurisdiction over the corporation. Daimler AG v. Bauman, 134 S.Ct. 746, 760 (2014). These affiliations justify general or "all-purpose" jurisdiction because they are "unique—that is, each ordinarily indicates only one place—as well as easily ascertainable." Id. In Daimler, the Supreme Court found that restricting general jurisdiction to these affiliations promoted predictability by allowing corporations "to structure their primary conduct with some minimum assurances as to where that conduct will and will not render them liable to suit," while also affording "plaintiffs recourse to at least one clear and certain forum in which a corporate defendant may be sued on any and all claims." Id. at 760-62.
Nevertheless, the Supreme Court in Daimler left open the possibility that, in an "exceptional" case, a court in a forum other than a corporation's principal place of business or place of incorporation may exercise general jurisdiction without offending due process. See id. at 761 n.19; id. at 760 ("[O]nly a limited set of affiliations with a forum will render a defendant amendable to all-purpose jurisdiction there."). The due process inquiry for general jurisdiction over a foreign corporation "is not whether a foreign corporation's in-state contacts can be said to be in some sense `continuous and systematic,' it is whether that corporation's `affiliations with the State are so `continuous and systematic' as to render it essentially at home in the forum State.'" Id. at 762 (quoting Goodyear, 131 S. Ct. at 2851); accord Isaacs, 2015 WL 1534362, at *3. Additionally, in assessing whether a foreign corporation is "at home" in any given state in the United States, a court must engage in "an appraisal of a corporation's activities in their entirety, nationwide and worldwide," because "[a] corporation that operates in many places can scarcely be deemed at home in all of them." Daimler, 134 S. Ct. at 762 n.20.
In response to Plaintiff's Motion to Transfer, Bridgestone submitted an affidavit of Yuichi Hashiguchi—a manager in Bridgestone's Legal Department—containing the following averments relevant to the Court's general jurisdiction analysis: (1) Bridgestone is headquartered, and maintains its principal place of business, in Tokyo, Japan; (2) Bridgestone does not sell tires in Florida or anywhere else in the United States; (3) Bridgestone is not licensed to do business in Florida, does not maintain a registered agent for service of process in Florida, and has not authorized anyone to act as its agent in Florida; (4) Bridgestone does not operate, conduct, engage in, carry on, or transact business of any kind in Florida; (5) Bridgestone maintains no offices, places of business, post office boxes, or telephone listings in Florida and has never done so; (6) Bridgestone has no real estate, bank accounts, or other interest in property in Florida; (7) Bridgestone has not incurred any obligation to pay, and has not paid, any taxes in Florida; (8) Bridgestone has no agents, sales representatives, or employees in Florida; (9) Bridgestone has not designed, manufactured, sold, delivered, or issued warranties on any goods or products in Florida, nor has it participated in the decision to sell or deliver any goods or products to Florida; (10) to the extent that Bridgestone-brand tires are sold in retail outlets in Florida, none of those outlets are owned or operated by Bridgestone, and Bridgestone is not involved in such sales; and (11) Bridgestone has not conducted a recall or replacement program of any kind in Florida. (See Dkt. No. 99, Exh. 2).
As part of Plaintiff's additional jurisdictional discovery, he deposed Toshinobu Kobayashi as a corporate representative of Bridgestone, who repeated and supplemented Hashiguchi's sworn statement, including that: (1) Bridgestone's corporate headquarters are located in Tokyo, Japan; (2) Bridgestone designs and manufactures its tires domestically in Japan; (3) Bridgestone sells its tires in Japan, and does not distribute tires in Florida; (4) Bridgestone has no physical facilities, property, or assets in Florida; (5) Bridgestone is not licensed to do business in Florida, and in fact does no business in Florida; (6) Bridgestone has no employees or sales agents in Florida; and (7) Bridgestone does not advertise in Florida. (See Dkt. No. 97, Exh. 1).
Plaintiff has not rebutted Bridgestone's evidence that it—the parent company—does no business in Florida or anywhere in the United States, and has no offices or employees in Florida. (See Dkt. No. 99, Exh. 2 at 1-2; Exh. 3 at 4-5). Despite being afforded the opportunity to conduct jurisdictional discovery, Plaintiff has been unable to establish direct contacts between Bridgestone and Florida so as to establish general jurisdiction over Bridgestone in Florida.
In the absence of such direct contacts, Plaintiff resorts to the proposition that "Bridgestone not only knows but intends, through ongoing systematic activities, its tires to be sold to consumers in the United States, including in Florida." (Dkt. No. 97 at 3).
Plaintiff also contends that the in-state operations of BATO, Bridgestone's wholly-owned subsidiary, justify a Florida court's exercise of general jurisdiction over Bridgestone. (Dkt. No. 97 at 4-7). In addressing this contention, the Court must first determine whether BATO is an agent of Bridgestone such that BATO's activities in Florida may be attributed to Bridgestone for jurisdictional purposes. Because district courts may exercise personal jurisdiction over nonresident defendants only to the extent authorized under the law of the forum state, the Court looks to Florida law to determine whether an agency relationship exists. Cf. D'Jamoos ex rel. Estate of Weingeroff v. Pilatus Aircraft Ltd., 566 F.3d 94, 107 (3d Cir. 2009).
A foreign parent corporation is not subject to the jurisdiction of a forum state simply because a subsidiary is doing business there. Meier ex rel. Meier v. Sun Int'l Hotels, 288 F.3d 1264, 1274 (11th Cir. 2002); see Reynolds Am., Inc. v. Gero, 56 So.3d 117, 120 (Fla. Dist. Ct. App. 2011) ("It is, of course, well settled that `[a] parent corporation and its wholly-owned subsidiary are separate and distinct legal entities.'") (quoting American Int'l Grp., Inc. v. Cornerstone Businesses, Inc., 872 So.2d 333, 336 (Fla. Dist. Ct. App. 2004)). A plaintiff relying on a subsidiary's acts carries the burden of demonstrating that the parent company exercises sufficient control over the subsidiary to establish an agency relationship. Enic, PLC v. F.F. South & Co., Inc., 870 So.2d 888, 891 (Fla. Dist. Ct. App. 2004).
To establish an agency relationship, the amount of control exercised by the parent must be "high and very significant . . . to the extent that the subsidiary `manifests no separate corporate interests of its own and functions solely to achieve the purposes of the dominant corporation.'" Id. (quoting State v. American Tobacco Co., 707 So.2d 851, 851 (Fla. Dist. Ct. App. 1998)); see Meier, 288 F.3d at 1274 ("Where the subsidiary's presence in the state is primarily for the purpose of carrying out its own business and the subsidiary has preserved some semblance of independence from the parent, jurisdiction over the parent may not be acquired on the basis of the subsidiary's local activities."). Thus, the fact that a subsidiary reports to its parent corporation is insufficient; instead, a parent must "control[] the internal day-to-day affairs" or operations of the subsidiary. See Enic, 870 So. 2d at 891 (citing General Cigar Holdings, Inc. v. Altadis, S.A., 205 F.Supp.2d 1335 (S.D. Fla.), aff'd 54 F. App'x 492 (11th Cir. 2002) (finding no personal jurisdiction over a parent with a Florida subsidiary where, despite "regular and extensive contact" and a "very close working relationship" between the parent and the subsidiary, there was no evidence that the parent controlled the subsidiary's daily "basic operation").
In support of Plaintiff's assertion that Bridgestone exerts the necessary control over BATO, Plaintiff offers the following: (1) statements by Bridgestone CEO and President Yoichiro Kaizaki—in 2000—that he may change management personnel and structure at BATO; (2) evidence that—as of 2001—at least ten individuals had served on both the BATO and Bridgestone Board of Directors; (3) testimony—from the 1990s—that Bridgestone "advisors" were stationed at manufacturing and technical plants in the United States; and (4) evidence that Bridgestone requires its subsidiaries to abide by its Administrative Authority Rules, which stipulate that the parent company must advise or approve "certain important issues" of the subsidiaries. (See Dkt. No. 97 at 4-5, 7).
Through the sworn statement of Yuichi Hashiguchi, Bridgestone avers that it: (1) has never controlled the daily operations of BATO; (2) does not conduct business in the United States or anywhere else through BATO; (3) maintains formal barriers between management at Bridgestone and BATO, such as separate shareholder and board of directors meetings; (4) does not share common departments with BATO; (5) maintains separate books and accounts from BATO; and (6) does not control or participate in the marketing or sales decisions of BATO. (Dkt. No. 97, Exh. 3 at 4-5). Moreover, the excerpt from Bridgestone's Business Report for the 92nd Fiscal Period (January 1 to June 30, 2010), which Plaintiff attached to his renewed Motion to Transfer, states that "[s]ince each company of the [Bridgestone] Group is an independent entity, Bridgestone Corporation respects each company's decisions and business operations made and executed by the bodies of each company." (Dkt. No. 97, Exh. 2 at 2).
Based on the guidance of Florida courts, the Court concludes that Plaintiff's proffer is insufficient to establish that Bridgestone had the operational control over BATO necessary to establish an agency relationship for jurisdictional purposes. In addition to the dated nature of the evidence proffered by Plaintiff,
Even if the Court were to assume that the activities of BATO in Florida are imputable to Bridgestone under an agency theory, the Court finds that this is not one of the "exceptional" cases where Bridgestone may be subjected to general jurisdiction in Florida.
In Daimler, the Supreme Court held that California courts could not exercise general personal jurisdiction over a German company with a wholly-owned subsidiary that did business in California. 134 S. Ct. at 751. The defendant parent corporation was headquartered in Germany and manufactured luxury vehicles in Germany. Id. at 752. The subsidiary was a Delaware limited liability corporation with its principal place of business in New Jersey. Id. The Court explained that California courts could not exercise general personal jurisdiction over the parent company even if the subsidiary's contacts with California were attributed to the parent. Id. at 760. The Court reached this conclusion notwithstanding that: (1) the company's subsidiary was the largest supplier of luxury vehicles to the California market; (2) the subsidiary had multiple California-based facilities; (3) over 10% of all sales of defendant's new vehicles in the United States took place in California; and (4) the subsidiary accounted for 2.4% of the parent's worldwide sales. Id. at 752. According to the Court, these connections were not of the type to render the defendant corporation "at home" in California. Id. at 763.
Here, Bridgestone is headquartered in Japan and manufactures and sells its tires in Japan. (Dkt. No. 99, Exh. 3 at 1). BATO is a Delaware limited liability corporation. (Id. at 2). Plaintiff asserts that: (1) BATO distributes Bridgestone-manufactured tires in Florida; (2) in 1999, "Bridgestone" had a market share in North America approaching 20%, making the global company the second-largest supplier of its tires on the continent; (3) Florida has the fourth biggest economy in North America and the twentieth biggest economy in the world; and (4) "Bridgestone" is the second-largest supplier of tires in North America. (Dkt. No. 97 at 3, 4 & n.5).
Even assuming that the sum of Plaintiff's allegations is true—that a substantial number of Bridgestone tires end up being sold by Bridgestone's subsidiaries in Florida because Florida has a large economy and the Bridgestone brand has a significant market share in the United States— the Supreme Court in Daimler advised that a foreign corporation cannot be "at home" in a state for general jurisdiction purposes solely because it "engages in a substantial, continuous, and systematic course of business [there]." 134 S. Ct. at 760.
Generally, "a court may not sua sponte dismiss for lack of personal jurisdiction" because "personal jurisdiction may be conferred by consent of the parties." Jasper v. Bexar Cnty. Adult Detention Ctr., 332 F. App'x 718, 719 (3d Cir. 2009) (quoting Zelson v. Thomforde, 412 F.2d 56, 59 (3d Cir. 1969)). Here, however, Bridgestone's Opposition to Plaintiff's Motion to Transfer (Dkt. No. 99) clearly indicates that Bridgestone does not consent to jurisdiction in Florida. Having previously found that the Court lacks personal jurisdiction over Bridgestone in the District of the Virgin Islands (Dkt. No. 90), and having determined herein that a Florida court could not exercise general jurisdiction over Bridgestone, the Court concludes that dismissal pursuant to Federal Rule of Civil Procedure 12(b)(2) is appropriate.
Plaintiff has not introduced evidence sufficient to establish that a Florida court could exercise general jurisdiction over Bridgestone such that Plaintiff "could have brought the action" in Florida, as required by 28 U.S.C. § 1631. Accordingly, the Court will deny Plaintiff's Motion to Transfer and dismiss Plaintiff's Complaint.
An appropriate Order accompanies this Memorandum Opinion.