Judge: Frank M. Tavelman, Case: 22BBCV00358, Date: 2023-09-15 Tentative Ruling
Case Number: 22BBCV00358 Hearing Date: January 8, 2024 Dept: A
LOS
ANGELES SUPERIOR COURT
NORTH
CENTRAL DISTRICT - BURBANK
DEPARTMENT
A
TENTATIVE
RULING
JANUARY 8,
2024
MOTION
TO QUASH SERVICE OF SUMMONS
Los Angeles Superior Court
Case # 22BBCV00358
|
MP: |
Archstone
Distribution, LLC (Cross-Complainant) |
|
RP: |
EcoSoft SPC and EcoSoft WaterSystems (Specially Appearing
Cross-Defendants) |
ALLEGATIONS:
This action stems from the
malfunctioning of a water filtration system which was installed in a doctor’s
office in Burbank, CA. Sentinel Insurance Company (“Sentinel”), the insurer for
the office, seeks indemnification for the approximately $926,379.54 in damages
caused by the leak of the filter. (Compl. ¶ 27.) Sentinel’s Complaint alleges
the filter was provided by Archstone Distribution, LLC (“Archstone”) who in
turn purchased the filter from Amazon.com. (Compl. ¶ 17.) Archstone alleges
that the company who sold the filter through Amazon was Clean Sip LLC.
(Cross-Compl. ¶ 9.) Archstone further alleges that EcoSoft SPC is the company
who manufactured the malfunctioning filter. (Id.)
EcoSoft SPC and EcoSoft WaterSystems
now specially appear and move to quash the service of process from
Archstone. These parties assert that
service has not been properly rendered and that the Court lacks personal jurisdiction
over them.
This matter originally came on for
hearing on September 21, 2023. After hearing argument, the Court continued the
matter such that jurisdictional discovery could commence and subsequent
briefing could be provided by the parties. The Court, having review the
subsequent briefing and the evidence obtained in jurisdictional discovery now
rules as follows:
ANALYSIS:
I.
LEGAL
STANDARD
A defendant, on or before the last day
of her time to plead or within any further time that the court for good cause
may allow, may move to quash service of summons on the ground of lack of
jurisdiction over her. (C.C.P. § 418.10(a); see Greener v. Workers' Comp.
Appeals Bd. (1993) 6 Cal.4th 1028, 1036.) For a court to have personal
jurisdiction over a defendant, two elements are required: (1) there must be
some basis for exercising personal jurisdiction over the defendant, i.e.,
defendant's consent, physical presence, domicile, or minimum contacts; and (2)
service of summons must be proper. (Ziller Elecs. Lab. GmbH v. Superior
Court (1988) 206 Cal.App.3d 1222, 1229.)
A motion to quash service of
summons can be used to challenge one or both elements of personal
jurisdiction. (Id.) When the defendant makes a motion to
quash, the burden is on the plaintiff to prove, by a preponderance of the
evidence facts justifying the exercise of jurisdiction over the
defendant. (See id. at 1232-1233 [If a defendant files
a motion to quash service of summons, the plaintiff has the burden to
establish both elements of personal jurisdiction].) Thus, a plaintiff must
file an opposition to defeat a motion to quash. (See Floveyor
Internat., Ltd. v. Superior Court (1997) 59 Cal.App.4th 789,
794 [defendant does not have to act on motion to quash until
plaintiff makes prima facie showing of jurisdiction].)
Further, such a motion must
establish personal jurisdiction on any grounds challenged by the
defendants; if the defendant alleges that there is no basis for personal
jurisdiction and that service was improper, the plaintiff must establish
both a basis for personal jurisdiction and proper
service. (See Ziller, supra, 206 Cal.App.3d at 1229.) The mere
allegations of facts or allegations in an unverified complaint are insufficient
to establish jurisdiction for these purposes. (In re Automobile Antitrust
Cases I & II (2005) 145 Cal.App.4th 100, 100.)
II.
REQUEST
FOR JUDICIAL NOTICE & EVIDENTIARY OBJECTIONS
Archstone requests judicial notice of the
California Secretary of State information for Down Town Wholesalers, Inc. and
Clean Sip, LLC pursuant to Evidence Code § 452. Archstone’s request is granted.
Specially appearing parties’ evidentiary
objections to the declaration of Michael Jenkins are OVERRULED.
III.
MERITS
Service Pursuant to Hague Convention
The initial moving papers by EcoSoft
SPC and EcoSoft WaterSystems contested the validity of service pursuant to the
Hague Service Convention. The Court determined that service on EcoSoft
WaterSystems was insufficient but that the service on EcoSoft SPC was
effective. Subsequent briefing on the matter presents no further argument on
this front. As such, the Court’s previous reasoning remains intact and is
produced below.
Moving parties first argue that service
has not been effectuated in accordance with the Hague Service Convention.
EcoSoft SPC is located in Ukraine, and EcoSoft WaterSystems is located in
Germany.
Ukraine has objected to Article 10 of
the Hague Service Convention. Where a country has objected to Article 10 of the
Hague Convention - service through the Central Authority is the only valid
method of serving process abroad. (Hague Service Convention, T.I.A.S. No. 6638,
20 U.S.T. 361 (U.S. Treaty); Articles 2 through 10.)
EcoSoft SPC originally argued that no
proof of service had been filed showing such service was effectuated on the Central
Authority. After the motion was filed, Archstone filed a proof of service which
showed service on the Central Authority for Ukraine on June 6, 2023.
Accordingly, EcoSoft SPC’s motion to this end is moot.
No proof of service has been submitted
regarding EcoSoft WaterSystems. As such, the motion to quash as to EcoSoft
WaterSystems is GRANTED.
Personal Jurisdiction
EcoSoft SPC argues service should be
quashed because the Court lacks personal jurisdiction.
Personal Jurisdiction in General
A California court can exercise
personal jurisdiction over a nonresident defendant who has “minimum contacts”
with the state. (Pavlovich v. Superior Court (2002) 29 Cal.4th 262, 268;
Virtualmagic Asia, Inc. v. Fil-Cartoons, Inc. (2002) 99 Cal.App.4th 228,
238.) A defendant has minimum contacts if the quality and nature of its
activity in the forum state (referred to as “contacts”) is such that it is
reasonable and fair to require the defendant to conduct a defense in that state.
(Pavlovich, supra, at 268; Strasner v. Touchstone Wireless Repair
& Logistics, LP (2016) 5 Cal.App.5th 215, 221.)
There exists two types of personal
jurisdiction: “general” (sometimes called “all-purpose”) jurisdiction and
“specific” (sometimes called “case-linked”) jurisdiction. (Bristol-Myers
Squibb Co. v. Superior Court of California, San Francisco County (2017) 582
U.S. 255, 262.)
In its opposition, Archstone argues in
favor of both general and specific personal jurisdiction. The Court will
analyze each of these arguments in turn.
General Jurisdiction
As with Moving Parties’ service
arguments, no further argument was made regarding general jurisdiction in
supplemental briefing. As such, the Court maintains that general jurisdiction
has not been shown in this instance as EcoSoft SPC cannot be considered at home
in California. The Court’s previous reasoning remains and is reiterated below.
Under a “general” jurisdiction
analysis, nonresident defendants may be sued on causes of action unrelated to
their activities within the state. (Cornelison v. Chaney (1976) 16
Cal.3d 143, 147.)
Only a “limited set” of affiliations
with a forum state will render a defendant subject to general jurisdiction.
“For an individual, the paradigm forum for the exercise of general jurisdiction
is the individual’s domicile; for a corporation, it is an equivalent place, one
in which the corporation is fairly regarded as at home” (Daimler AG v.
Bauman (2014) 571 US 117, 137.)
Here, Archstone cannot allege general
personal jurisdiction as traditionally constructed. EcoSoft SPC cannot be
considered “at home” under any of the traditional metrics espoused in Daimler.
Instead, Archstone argues EcoSoft SPC is subject to general personal
jurisdiction by virtue of an alter ego or agency theory. Archstone argues Clean
Sip LLC, a cross-defendant in this action, is an alter ego of EcoSoft SPC
operating within the United States.
California courts have held that often
mere ownership of a subsidiary does not subject a nonresident parent company to
general personal jurisdiction based on the subsidiary’s forum contacts. (Sonora
Diamond Corp. v. Superior Court (2000) 83 Cal.App.4th 523, 540; DVI v.
Superior Court (2002) 104 Cal.App.4th 1080, 1092.) However, in several
courts they have held or suggested that principles of “alter ego” and “agency,”
including the “representative services” doctrine, can justify the exercise of
general personal jurisdiction over a nonresident defendant. (Sonora Diamond,
supra, at 537-543; DVI, supra, at 1093-1094.) To pierce the corporate veil between a parent
and subsidiary under the alter ego theory, the plaintiff must show: (1) that
there is such a unity of interest and ownership between the parent and
subsidiary that the separate personalities of the entities no longer exists;
and (2) that failure to disregard the corporate forms would result in fraud or
injustice. (Sonora Diamond, supra, 83 Cal.App.4th at 539.) When the
corporate form is used to perpetrate a fraud, circumvent a statute, or
accomplish some other wrongful or inequitable purpose, the courts will ignore
the corporate entity and deem the corporation’s acts to be those of the persons
or organizations actually controlling the corporation, in most instances the
equitable owners. Alter ego is an extreme remedy, used sparingly. (Id.)
Archstone provides an Asset Purchase
Agreement between Andrii Mitchenko (Chief Executive Director of EcoSoft SPC)
and Down Town Wholesalers, Inc. as Exhibit E to its opposition. This Asset
Purchase Agreement is also between Clean Sip, LLC. Andrii Mitchenko is listed
as the Member/Manager of Clean Sip, LLC. (Id.) This Purchase Agreement
references a Distribution Agreement between Down Town Wholesalers and EcoSoft
SPC. (Id. Exh E, p. 6.) Archstone generally argues that alter ego may be
found because EcoSoft SPC and Clean Sip, LLC share an executive in Mitchenko.
Archstone also argues that the Asset Purchase Agreement appears shows Clean Sip
LLC conveying rights of EcoSoft SPC, which it could not do unless they were the
same corporate entity.
In reply, EcoSoft SPC submits the
declaration of Mitchenko. Mitchenko states Clean Sipp LLC was incorporated in
New York and dissolved in 2020. (Mitchenko Supp. Decl. ¶ 2.) He also
states that EcoSoft SPC and Clean Sip were separate entities and did not share
leadership, bank accounts, or employees. (Id. ¶¶ 4-5.)
The Court finds Archstone has not made
a sufficient showing to allow a finding of alter ego. While Archstone’s
allegations certainly indicate an overlap between EcoSoft SPC and Clean Sip,
LLC, they are far away from establishing that the entities must be legally
treated as one. Archstone has made no showing as to ownership of the corporate
entities, that Clean Sip LLC was utilized for a wrongful purpose, or that to
treat the entities as separate would result in fraud or injustice.
Specific Jurisdiction
The lion’s share of argument upon
supplemental briefing revolves around specific jurisdiction, which the Court
initially indicated was appropriately exercised in this case. The Court having
read the supplemental briefing of the parties remains of the opinion that the
tenant of specific jurisdiction are satisfied here, though the Court’s
reasoning has changed.
A court can exercise specific
jurisdiction over a nonresident defendant if (1) the defendant has purposefully
availed itself of the forum's benefits and protections and (2) the cause of
action relates to or arises out of the defendant's contacts with the forum, and
(3) the exercise of personal jurisdiction would comport with fair play and
substantial justice. (Pavlovich, supra, 29 Cal.4th at 269.) The contacts
for specific jurisdiction are those that existed when the plaintiff's cause of
action arose. (Strasner, supra, 5 Cal.App.5th at 226.)
Purposeful Availment
To establish minimum contacts for
specific jurisdiction, the plaintiff must show that the defendant has
purposefully availed itself of the privilege of conducting activities in
California to involve its benefits and protections. (See Axiom Foods, Inc.
v. Acerchem Int'l (9th Cir. 2017) 874 F.3d 1064, 1068; Bristol-Myers supra,
1 Cal.5th 783, 799-800.) In this analysis, (1) only the defendant's contacts
with California are considered, not the defendant's contacts with persons who
reside there, (2) the defendant's contacts must have been purposeful rather
than random, fortuitous, or attenuated, and (3) the defendant must have sought
some benefit by availing itself of the jurisdiction. (See Walden v. Fiore
(2014) 571 U.S. 277, 285-286; Burger King Corp. v. Rudzewicz (1985) 471
U.S. 462, 474-475; Vons Cos., supra, 14 Cal.4th at pp. 446, 458.)
Archstone argues that EcoSoft SPC has
purposefully availed itself of the forum by virtue of Ecosoft’s extensive use
of the ports of Los Angeles to ship its products, EcoSoft SPC’s shipping of its
products to Los Angeles International Airport, and the shipment of EcoSoft SPC
products to Los Angeles through the port of Houston. (Archstone Exh. C.)
Archstone further argues that EcoSoft SPC has availed itself of the forum by
virtue of its extensive dealings with California based company Down Town
Wholesalers, Inc. (“Down Town”) Archstone states that EcoSoft SPC has used
Downtown Wholesalers as the exclusive distributor for its products since 2019.
(Archstone Exh. A., AM Deposition p. 75.) Archstone also attaches Distributor
agreement with Down Town. (Archstone Exh. A, AM Depo Exh. 8 at p.8.)
To establish minimum contacts for
specific jurisdiction, the plaintiff must show that the defendant has
purposefully availed itself of the privilege of conducting activities in
California to involve its benefits and protections. (See Axiom Foods, Inc.
v. Acerchem Int'l (9th Cir. 2017) 874 F.3d 1064, 1068; Bristol-Myers
supra, 1 Cal.5th 783, 799-800.) In this analysis, (1) only the defendant's
contacts with California are considered, not the defendant's contacts with
persons who reside there, (2) the defendant's contacts must have been
purposeful rather than random, fortuitous, or attenuated, and (3) the defendant
must have sought some benefit by availing itself of the jurisdiction. (See Walden
v. Fiore (2014) 571 U.S. 277, 285-286; Burger King Corp. v. Rudzewicz
(1985) 471 U.S. 462, 474-475; Vons Cos., supra, 14 Cal.4th at pp. 446,
458.)
The Court is satisfied with Archstone’s
showings that EcoSoft SPC purposefully availed itself of the State of
California. It is clear that EcoSoft SPC desired to sell its products in the
state and has taken substantial steps in actualizing that desire. EcoSoft SPC
maintains an active distribution agreement with a California company and
regularly sends its water filtration products into the state for sale.
The Court also notes that the point of
purposeful availment is absent from EcoSoft SPC’s supplemental briefing,
indicating a concession to the merits of Archstone’s argument in this regard,
even without any putative concession there facts support purposeful availment.
Relatedness
The far more contentious argument in
the parties’ subsequent briefing is whether EcoSoft SPC’s availment is related
to Archstone’s claims against them. Archstone claims that an EcoSoft SPC water
filter, purchased through Amazon seller Clean Sip LLC was the source of the
damage. Archstone also claims that EcoSoft SPC manufactured this specific water
filtration system. It is undisputed that the filter at issue in this case is
the “FMV3ECOUS” Stage 3 water filtration system. EcoSoft SPC does not dispute
that it manufactured this water filter, however they do state that this filter
was never sold in the state of California.
EcoSoft SPC argues that the relatedness
prong of specific jurisdiction is not met here because Archstone cannot show
that the FMV3ECOUS system was ever sold in the State of California. EcoSoft SPC
argues that the case law requires the Court to distinguish between EcoSoft SPC
general selling of water filters and EcoSoft SPC’s selling of the FMV3ECOUS
filter specifically. Essentially, EcoSoft SPC argues that their contacts with
California are not related to this action unless they sold this specific model
of filter.
Archstone argues the opposite, that
EcoSoft SPC’s selling of any water filtration systems is sufficiently related
to this cause of action for products liability. Archstone argues that the
relatedness test is not meant to serve as a proxy for proximate cause and is
instead a more generalized question of whether the products sold in the forum
state relate to the products liability action.
The relatedness component of specific
jurisdiction does not require the activity in the forum state to be the cause
of action. (See Daimler Trucks North America LLC v. Superior Court
(2022) 80 Cal.App.5th 946, 956, citing Ford Motor Company v. Montana Eighth
Judicial District Court (2021) 141 S.Ct. 1017.)
In Ford, plaintiffs filed
actions in Montana and Minnesota alleging defects with respect to two specific
models of Ford vehicle, an Explorer and a Crown Victoria respectively. (Ford
supra, 141 S.Ct. 1017 at 1023. Ford argues that specific jurisdiction was
lacking as these particular vehicles were not designed, manufactured, or sold
in the state of Montana or Minnesota and were only brought there after being
sold in another state. (Id.) The Supreme Court rejected Ford’s argument
finding that it conflated the role of causation and the test for relatedness. (Id.
at 1025.) The Ford court stated ““The first half of the arise out of or
relate to standard asks about causation; but the back half, after the or contemplates
that some relationships will support jurisdiction without a causal showing.” (Id.
at 1026, [internal quotations and citations omitted].) The Ford court
noted that Ford’s availment to the states of Montana and Minnesota included
wide ranging advertisement campaign encouraging the residents of those states
to buy Ford vehicles, including Explorers and Crown Victorias. (Id. at
1028.) The Supreme Court also noted the wide range of Ford dealerships
facilitating sales of Ford vehicles in those states. (Id.) The Supreme
Court ultimately determined these contacts were sufficiently related to the
products liability actions.
The Court notes that the ruling in Ford
does reference a hypothetical scenario which is relevant to the
determination of this motion. The Ford court indicated that their
holding would perhaps have been different if Ford did not market and sell the
Explorer and Crown Victoria in the states of Montana and Minnesota. (Id. at
1028.) “Ford had advertised, sold, and serviced those two car models in both
States for many years. (Contrast a case, which we do not address, in which Ford
marketed the models in only a different State or region.)” (Id.) The Ford
court did not go on to explain if this contrasting case would warrant a
different result.
A California Appellate Court has found
that where an out-of-state company imported products into a state where the
injury occurred, but did not import the specific product at issue, there was no
specific jurisdiction. (LG Chem, Ltd. v. Superior Court of San Diego County
(2022) 80 Cal.App.5th 348.) LG Chem concerned the malfunctioning of
model 18650 batteries. (Id. at 357.) The 18650 batteries were
demonstrated by LG to be designed for use as “industrial component products”
and were shown to have never been sold directly to consumers. (Id.) The
plaintiff in LG Chem had purchased the battery through a third-party
vendor and used it in a consumer grade vaporizer. (Id.) LG argued that
their contacts, selling the 18650 battery in the forum state, were not related
to plaintiff’s consumer use of the battery in a vaping device. (Id. at
365.) The court found that, in contrast to Ford, LG had not advertised,
marketed, or solicited buyers for the product at issue (a battery component for
electric vehicles). (Id.) The LG
Chem court noted that the Ford court had found Ford’s activity had
fostered the sort of consumer behavior which laid the foundation for the claims
at issue, but that LG had taken active steps to prevent the consumer behavior
which established the claim against them. (Id.)
The Court finds neither of these cases
fits this situation neatly. The products liability claim in LG Chem explicitly
contemplates the use of a product in a way for which it was never designed. LG
did not market to consumers and specifically warned about use of the product by
consumers. The malfunctioning of a product when used improperly is logically
unrelated to the manufacturers marketing the product industrially. Here, the
evidence indicates that the water filter was being used as intended. EcoSoft
SPC held itself out to the state of California as a manufacturer of water
filters. Archstone claims a water filter manufactured by EcoSoft SPC then
malfunctioned in the state of California when used as intended. In short, the
facts that made relatedness an unbearable stretch in LG Chem are not
present here.
While Ford contains explicit
doubts about relatedness where a certain model is not sold in a forum state,
its principles appear more readily applicable to this situation. EcoSoft SPC is
actively distributing water filters which are very similar in nature to the filter
that malfunctioned in this case. It is hard to see how this cause of action is
unrelated to EcoSoft SPC’s selling and marketing very similar products in the
state of California. Likewise, the is
not evidence to support that EcoSoft SPC took any steps to prevent this model
from sale in California or sale to consumers for use in the manner in which
Plaintiff used the item.
Citation to Yamashita v. LG Chem does
little to resolve this ambiguity. In Yamashita, the Ninth Circuit stated
that “Ford found specific jurisdiction because Ford sold the relevant
models to consumers in the forum states, not because it shipped raw materials,
or even completed cars, through those states.” (Yamashita v. LG Chem, Ltd. (9th
Cir. 2023) 62 F.4th 496, 506.) The Yamashita court rejected the
plaintiff’s contention that shipments into Hawaii of large batteries for use in
solar applications was sufficiently related to plaintiff’s injury by a battery
similar to that in LG Chem. (Id.) Essentially the Yamashita court
reasoned that a comparison of such dissimilar products could not serve as the
basis for relatedness. Archstone is making no such “apples to oranges”
comparison here. Archstone has provided evidence that EcoSoft SPC sold water
filtration systems in the state of California. While there is certainly
technical minutia that differentiate EcoSoft’s models, the difference between
the products in this case is not so vast as to frustrate relatedness.
LNS
Enterprises LLC v. Continental Motors, Inc. also
does not resolve the issue of differing products. The plaintiff in LNS
brought a products liability action in connection with the malfunction of a
Cessna airplane. (LNS Enterprises LLC v. Continental Motors, Inc.
(9th Cir. 2022) 22 F.4th 852, 857.) The LNS court analyzed the
relatedness prong of personal jurisdiction in the context of whether Textron, a
co defendant manufacturer of airplane engines, could be brought into the action
against the airplane manufacturer Columbia. (Id. at 865.) The evidence
showed that while Textron did contract to service Cessna engines, it did not manufacture
or service the model of engine that went into plaintiff’s Cessna and did not
offer service of such engines in the state of Arizona where the suit was
brought. (Id.) The LNS court noted that Textron’s only evidenced
connection with Columbia was through Cessna, in that Cessna acquired some of
Columbia’s assets at some point in 2007. (Id.) The LNS court
found the connection between Textron and Columbia to be too far attenuated for
Columbia to anticipate being brought to court in Arizona. (Id.) Here,
the level of attenuation is not so great. Even though EcoSoft SPC may not have
sold the exact model water filter through Down Town, it remains clear that they
regularly sell similar systems in the State of California. In contrast to the
companies in Yamashita and LNS, there remains substantial contact
with the forum state outside of exact model involved in the cause of action.
The case
law makes clear that the relatedness analysis requires the Court to consider,
in some part, the nature of a party’s contacts with the forum. Where the party’s
contacts are more substantial, i.e., Ford, a finding of
relatedness is considered more appropriate. Where the party’s contacts are
completely unrelated, i.e., Yamashita, there is generally no
finding of relatedness. Here, the Court finds the nature of EcoSoft SPC’s
contacts are quite substantial, certainly more than the case of LNS where
no direct contacts existed at all.
The
Court finds this situation occupies the grey space between these extremes in a
way that is not addressed in great detail by any of the existing authority. The
caveat in Ford causes the Court to contemplate that differences in
models sold in the forum may be a reason for pause. At the same time the
differences in models discussed in Yamashita and LNS enterprises
are significantly greater in magnitude than the differences here. The
differences between vehicle models in Ford, batteries with entirely
different use cases in Yamashita, or airplane engines in LNS all
present complexities greater than the difference in models of consumer grade
water filtration systems. Combined with the fact that EcoSoft SPC routinely
sells consumer water filters in the State of California, the Court finds EcoSoft
SPC’s contacts are sufficiently related to this cause of action for purposes of
personal jurisdiction. Requiring Archstone to show that EcoSoft SPC sold the
exact model water filter through Down Town would push the reasonableness
analysis too close to the proximate cause inquiry which Ford and its
progeny have disavowed.
In short, EcoSoft SPC regularly sells consumer water
filtration systems in the State of California. Archstone alleges an EcoSoft SPC
manufactured filter, albeit a different model, malfunctioned and caused serious
property damage. The Court finds these two things are sufficiently related such
that personal jurisdiction is established.
Reasonableness
Having been presented no new argument on
supplemental briefing, the Court maintains the position that the exercise of
personal jurisdiction to be reasonable.
“In evaluating whether the exercise of specific
jurisdiction would comport with fair play and substantial justice, the court
must consider the burden on the defendant, the interests of the forum State,
and the plaintiff's interest in obtaining relief.” (Jayone Foods, Inc. v.
Aekyung Indus. Co., 31 Cal. App. 5th 543, 564, [internal
quotations and citations omitted].) “It must also weigh in its determination the interstate judicial
system's interest in obtaining the most efficient resolution of controversies;
and the shared interest of the several States in furthering fundamental
substantive social policies. (Id., [internal quotations and citations
omitted].)
“Where ... a defendant who purposefully has
directed its activities at forum residents seeks to defeat jurisdiction, it must
present a compelling case that the presence of some other considerations would
render jurisdiction unreasonable.” (Id., [internal quotations and
citations omitted].) “In the case of a foreign company, the unique
burdens placed upon one who must defend oneself in a foreign legal system
should have significant weight in assessing the reasonableness of stretching
the long arm of personal jurisdiction over national borders.” (Id., [internal
quotations and citations omitted].) However, when minimum contacts have been established, often the
interests of the plaintiff and the forum in the exercise of jurisdiction will
justify even the serious burdens placed on the alien defendant.” (Id., [internal
quotations and citations omitted].)
EcoSoft SPC
argues that to exercise jurisdiction would be unreasonable because of the
severe burden of traveling between Ukraine and the U.S. EcoSoft also cites to
the destruction of their Ukraine facilities which occurred in March of 2022
because of the Russian invasion of Ukraine. (Mitchenko Decl. ¶ 3, Exh. B.)
While the Court is sensitive to the losses EcoSoft SPC has suffered, it notes
that EcoSoft SPC remains a corporate entity whose products are still
commercially available in California.
Accordingly, EcoSoft SPC’s motion to quash is
DENIED. Responsive pleading is to be made within 30 days. EcoSoft Water Systems’ motion to quash is
GRANTED.
---
RULING:
In the event the parties submit on this
tentative ruling, or a party requests a signed order or the court in its
discretion elects to sign a formal order, the following form will be either electronically
signed or signed in hard copy and entered into the court’s records.
ORDER
EcoSoft SPC and EcoSoft WaterSystems’ Motion to Quash
Service of Summons came on regularly for hearing on January
8, 2024, with appearances/submissions as noted in the minute order for said
hearing, and the court, being fully advised in the premises, did then and there
rule as follows:
ECOSOFT WATERSYSTEMS MOTION TO QUASH IS GRANTED.
ECOSOFT SPC’S MOTION TO QUASH IS DENIED.
RESPONSIVE PLEADING IS TO BE MADE WITHIN 30 DAYS
CASE MANAGEMENT CONFERENCE IS CONTINUED TO APRIL
17, 2024 AT 9:00 A.M.
UNLESS ALL PARTIES WAIVE NOTICE, ARCHSTONE TO
GIVE NOTICE.
IT IS SO ORDERED.
DATE: January 8, 2024 _______________________________
F.M. TAVELMAN, Judge
Superior Court of
California
County of
Los Angeles