Law school; first-year; civil procedure exam question: May a court assert personal jurisdiction over a non-resident defendant who ships millions of packages into Ohio, and is paid millions of dollars in return by the resident plaintiff? Be careful, 1L’s (and practitioners): The answer is no — at least where the goods shipped were not to be sold or consumed in the forum state, and where the plaintiff moved to the forum state from another state after the commercial relationship began. This was the holding of the United States District Court for the Southern District of Ohio in Wornick Co. v. Trans-Packers Services Corp, No. 1:09-CV-931.
The non-resident defendant manufactured individual packets of dairy shake power mix in New York, and shipped them to the plaintiff’s facility in Ohio. Plaintiff, an Ohio resident corporation, incorporated the dairy shake mix packets into a larger package with other food items called Meals, Ready to Eat, or MRE’s, used to feed American troops, that were then shipped to military depots at the direction of the U.S. military.
Evidence at a full day hearing established that none of the defendant’s product was sold in Ohio, or consumed by Ohio consumers, that the defendant did not intend to exploit any Ohio markets, and that when the plaintiff and defendant began their commercial relationship over 20 years ago, the plaintiff, now in Ohio, operated out of Texas. The plaintiff unilaterally moved to Ohio after the relationship began. In a well reasoned decision, the District Court found that on these facts, the non-resident defendant did not “purposefully avail” itself of the Ohio forum, and therefore dismissed the case for lack of personal jurisdiction.
Benefits of An Evidentiary Hearing on Jurisdiction
This decision highlights the efficiencies of an early evidentiary hearing on a Rule 12(b)(2) motion to dismiss. Just to look at the Complaint, the plaintiff surely would have made out a prima facie case of jurisdiction. Putting the plaintiff to its preponderance of the evidence proofs, as was done here, reaches an efficient result on facts that would not have come to the Court’s attention at least until summary judgment a year or so down the road.
Questions or comments? You'll find a link to our email addresses at the CONTACT line below.
- Partner
Mike Scheier is a trial lawyer who also helps our clients manage their litigation risks and achieve cost-effective non-litigation solutions. His practice is concentrated on valuation and shareholder disputes, and in the defense ...
- Partner
Tony Verticchio focuses his practice on insurance coverage and litigating commercial business disputes. He has successfully represented a wide variety of business clients, including large financial institutions and other ...
Blog Contact: Joseph Callow, Litigation Partner
jcallow@kmklaw.com or 513.579.6419
Topics/Tags
Select- Coronavirus
- Class Action Litigation
- Litigation
- Cybersecurity and Privacy Law
- Data Breach
- Securities Law
- Supreme Court
- E-Discovery
- Intellectual Property
- Social Media
- Trademark
- Trademark Litigation
- Sixth Circuit
- Initial Coin Offering
- Antitrust
- Federal Rules of Civil Procedure
- Bet-the-Company Litigation
- E-Discovery Case Law
- Electronic Data Discovery
- Employment Law
- Workplace Accommodations
- ESI
- GDPR
- General Data Protection Regulation
- Employer Policies
- Labor & Employment Law
- Labor Law
- SEC
- Cryptocurrency
- Securities Litigation
- Technology
- ERISA
- Stock Drop
- Ascertainability
- Cybersecurity Regulation
- Drug Enforcement Agency
- Medical Marijuana
- Ohio Foreclosure Reform
- Craft Brewing
- Copyright Law
- Seventh Circuit
- Environmental Law
- Fair Housing Act
- Health Care Act
- Healthcare Reform
- Pregnancy Discrimination
- Religion Discrimination
- Electronically Stored Information
- FLSA
- Proportionality
- Accommodation
- Americans with Disabilities Act
- Cyber Insurance
- EEOC
- Telecommuting
- Business Process Improvement
- Employment Litigation
- Lenders
- Receivership Statute
- Employer Handbook
- Employer Rules
- National Labor Relations Act
- National Labor Relations Board
- NLRB
- Unions
- E-Discovery Project Plan
- Evidence
- Predictive Coding
- TAR ( Technology Assisted Review)
- Quality Representation
- Subpoena
- Arbitration
- CAFA
- Land Use & Zoning
- Construction Litigation
- Privacy
- Statute of Limitations
- Taxation
- Federal Rule
Recent Posts
- Questioning the Questionnaires: New PPP-Related Litigation Raises Issues for Borrowers
- "You Don't Have to Go Home But You Can't Stay Here": Updates to Ohio and Kentucky’s COVID-19 Orders Impacting Bars & Restaurants
- Kentucky Restaurants Begin Opening with Limited Capacity Amid COVID-19 Epidemic
- Ohio Restaurants and Bars Begin Soft Openings for Diners Amid COVID-19 Epidemic
- Supreme Court Sidesteps “Cy Pres” Challenge
- Golfers, New and Old - Be Careful!
- "Aloha Poke": Social Media and Consumer Perception are Part of the Trademark Enforcement Equation
- GDPR: Less Than 100 Day and Counting to "G-Day" - Here's What You Need to Know
- Rapid SEC Action Against AriseBank Reveals New Playbook For Allegedly Fraudulent ICOs
- Giga Watt ICO Faces Tezos-like Securities Litigation Challenge