Judge: Ronald F. Frank, Case: 21STCV28318, Date: 2022-12-05 Tentative Ruling
Case Number: 21STCV28318 Hearing Date: December 5, 2022 Dept: 8
Tentative Ruling¿
¿¿
HEARING DATE: December 5, 2022¿¿
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CASE NUMBER: 21STCV28318
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CASE NAME: Luther
Carroll v. TGI Vape, et al.
¿¿
MOVING PARTY: Specially Appearing Defendant, LG
Chem, LTD.’s
¿¿
RESPONDING PARTY: Plaintiff,
Luther Carrol
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TRIAL DATE: None set¿
¿¿
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MOTION:¿ (1) Specially Appearing
Defendant, LG Chem, LTD.’s Motion to Quash Service of Summons for Lack of
Personal Jurisdiction
¿
Tentative Rulings: (1) GRANTED. The Court finds persuasive the reasoning and
analysis of a very recent Fourth District decision in LG Chem, Ltd. v. Superior Court of San Diego County (2022) 80 Cal.App.5th 348, rather than the federal
district court opinions referenced in Plaintiff’s opposition and declarations.
¿
I. BACKGROUND¿¿
¿¿
A. Factual¿¿
¿
This case is based on Plaintiff,
Luthor Carroll (“Plaintiff”) allegedly being injured when his vaping device,
which contained an “LGC 18650 Lithium-Ion Battery,” exploded and burned him.
(Compl. ¶¶
1, 24–25.) Plaintiff allegedly purchased the 18650-battery cell from Defendant
559 Cigarettes and More. (Id. at ¶ 24.) Plaintiff’s vaporizer was allegedly
designed and manufactured by Defendant VGod, LLC (“VGod”), and Plaintiff allegedly purchased the vaporizer from
Defendant TGI Vape. (Ibid.)
LG Chem is a Korean company with its headquarters and
principal offices in Seoul, South Korea. (Choi Decl. ¶ 6.) LG Chem manufactured
18650 lithium-ion battery cells for use by sophisticated companies in specific
applications, such as power tools, where the cells are encased in a battery
pack with protective circuitry. (Id. at ¶ 9.)
B. Procedural
On December 9, 2021, Specially Appearing Defendant, LG Chem, LTD file this Motion to Quash Service
of Summons for Lack of Personal Jurisdiction. On June 6, 2022, Plaintiff filed
an opposition to LG Chem’s Motion. On June 10, 2022, Specially Appearing
Defendant filed a reply brief. On August 3, 2022, Specially Appearing Defendant filed an ex parte application for an order
allowing supplemental briefing. The Court approved of this in a minute order on
August 4, 2022. On August 18, 2022, Specially Appearing Defendant filed a supplemental brief in support of its
Motion to Quash. On August 25, 2022, Plaintiff filed a brief in
opposition. Plaintiff did not file or serve a
supplemental opposition to LG Chem’s motion to supplemental briefing for its
motion to quash.
¿II. MOVING PARTY’S GROUNDS
FOR MOTION TO QUASH¿¿
Specially Appearing Defendant, LG Chem, moves for this motion to quash service
of summons because it claims that this Court lacks personal jurisdiction over
it.
III.
EVIDENTIARY OBJECTIONS
Defendant’s
Objections to Plaintiff’s Evidence
Sustained:
27
Overruled:
1-26, 28-37
IV. ANALYSIS¿
¿¿
LG Chem moves for an order quashing Plaintiff’s purported
service of summons and complaint pursuant to Code of Civil Procedure § 418.10,
subdivision (a)(1) on the grounds that the Court lacks personal jurisdiction
over LG Chem. LG Chem subsequently provided a supplemental brief in support of
its motion to quash in which it provided a very recently published decision
involving LG Chem where the Court of Appeal held that the trial court erred
when it denied LG Chem’s motion to quash.
In opposition, Plaintiff contends that it is indisputable
that LG Chem shipped its 18650 lithium-ion batteries to and within the state of
California, purposeful availing itself of the lithium-ion battery market in
California and giving rise to this action under a stream of commerce theory. But even if LG Chem is found to have
purposefully availed itself of the privilege of conducting sales and other
activity in California, there is a dispute between the parties as to whether
the “relatedness” prong of the analysis of specific jurisdiction can be met
here.
A. Legal Standard
Pursuant to the SCOTUS decision in International Shoe Co. v.
Washington, 326 U.S. 310, the Court presaged the recognition of two
personal jurisdiction categories that are today called “specific jurisdiction” --where the suit “arise[s] out of or relate[s]
to the defendant's contacts with the forum” (Helicopteros Nacionales de
Colombia, S.A. v. Hall, 466 U.S. 408, 414, n. 8) -- and “general jurisdiction,”
exercisable when a foreign corporation's “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. at p. 318).
(Daimler AG v. Bauman (2014) 571 U.S. 117, 118.) A non-resident defendant may be subject to
either general or specific jurisdiction. (See Elkman v. National States
Insurance Co. (2009) 173 Cal.App.4th 1305, 1314.) (“Where a nonresident
defendant challenges jurisdiction by way of a motion to quash, the plaintiff
bears the burden of establishing by a preponderance of the evidence that
minimum contacts exist between the defendant and the forum state to justify
imposition of personal jurisdiction.”)¿¿
1.
General
Jurisdiction¿¿
¿
General jurisdiction exists when a defendant is domiciled
in the forum state or his activities there are substantial, continuous, and
systematic. (F. Hoffman-La Roche, Inc. v. Sup. Ct. (2005) 130
Cal.App.4th 782, 796.)¿¿¿¿ “A court may
assert general jurisdiction over foreign . . . corporations to hear any and all claims
against them when their affiliations with the State are so ‘continuous and systematic’
as to render them essentially at home in the forum State.” (Daimler, supra, 571 U.S. at p. 132,
137-38.) ¿ The “paradigm” forums in which a corporate defendant is
“at home,” are the corporation's place of incorporation and its principal place
of business. (Id.) The exercise of
general jurisdiction is not limited to the place of incorporation and its
principal place of business; in an “exceptional case,” a corporate defendant's
operations in another forum “may be so substantial and of such a nature as to
render the corporation at home in that State.”
(BNSF Ry. Co. v. Tyrrell (2017) 137 S.Ct. 1549, 1558.) In BNSF, even though the railroad
defendant had over 2,000 miles of railroad track and more than 2,000 employees
in Montana, that series of forum activities were not sufficient for the
exercise of general jurisdiction. Similarly
in Daimler, the SCOTUS held that notwithstanding the widespread and
continuous activities of the German defendant’s American subsidiary in
California were wide-ranging and continuous, it did not comport with Due
Process to require Daimler to defend a lawsuit here under a general
jurisdiction theory.
“The standard for establishing general jurisdiction is
‘fairly high,’ [citation] and requires that the defendant’s contacts be of the
sort that approximate physical presence.” (Elkman, supra, 173
Cal.App.4th at 1315 (emphasis in original).) “Factors to be taken into
consideration are whether the defendant makes sales, solicits or engages in
business in the state, serves the state’s markets, designates an agent for
service of process, holds a license, or is incorporated there.” (Id.)¿¿ Plaintiff here concedes that it cannot require LG Chem to
defend a lawsuit in California under a general jurisdiction theory, regardless
of how many pounds of industrial products LG Chem ships to California ports as
measured by bills of lading, or how many of its sealed battery packs find their
way into electric vehicles or power tools sold in this state.
¿
2.
Specific
Jurisdiction¿
¿
“Where general jurisdiction cannot be established, a court
may assume specific jurisdiction over a defendant in a particular case if the plaintiff
shows the defendant has purposefully availed himself or herself of forum
benefits; [i.e.,] the nonresident purposefully directed its activities at
forum residents or purposefully availed itself of the privilege of conducting
activities within the forum state, thus invoking the benefits and protections
of local law.” (Hanson v. Denckla (1958) 357
U.S. 235.) Specific jurisdiction involves a 3-part test in California.
California courts adopt the same test as the test used by the court in Boschetto
v. Hansing (9th Cir. Cal. 2008) 539 F.3d 1011, 1016: (1) The nonresident
defendant must do some act or consummate some transaction with the forum or
perform some act by which he purposefully avails himself of the privilege of
conducting activities in the forum, thereby invoking the benefits and
protections of its laws; (2) the claim must be one which arises out of or
results from the defendant's forum-related activities; and (3) exercise of
jurisdiction must be reasonable.” (Panavision International, L.P. v. Toeppen (9th
Cir. 1998) 141 F.3d 1316, 1320 [applying California law].).” (Jewish Defense
Organization, Inc. v. Sup. Ct. of Los Angeles County (Rambam) (1999)
72 Cal.App.4th 1045, 1054.)¿¿
¿¿
B. Discussion
LG Chem moves for an order quashing Plaintiff’s purported
service of summons and complaint pursuant to Code of Civil Procedure § 418.10,
subdivision (a)(1) on the grounds that the Court lacks personal jurisdiction
over LG Chem.
1. General Jurisdiction¿¿
Per the moving papers, LG Chem provides that at all
relevant times it was a Korean company with its headquarters and principal
office in Seoul, South Korea. (Choi Decl. ¶ 6.)
Here, LG Chem argues that the there is no basis for
exercising general jurisdiction over it because LG Chem does not have any
continuous and systematic contacts with California that could render this an
“exceptional case” under BNSF. (supra 137 S. Ct. at 1558.) In opposition, Plaintiff does not
argue for general jurisdiction, but rather, asserts that that Court has
specific jurisdiction over LG Chem. Plaintiff
here concedes that it cannot require LG Chem to defend a lawsuit in California
under a general jurisdiction theory, regardless of how many pounds of
industrial products LG Chem ships to California ports as measured by bills of
lading, or how many of its sealed battery packs find their way into Black and
Decker power tools sold in this state.
2. Specific Jurisdiction¿
“Absent such extensive contacts [general jurisdiction], a defendant
may be subject to specific jurisdiction, meaning jurisdiction in an action
arising out of or related to the defendant's contacts with the forum state.”¿ (HealthMarkets,
supra, 171 Cal.App.4th at 1167.)¿ “Specific jurisdiction depends on the quality
and nature of the defendant's forum contacts in relation to the particular
cause of action alleged.”¿ (Id.) “A nonresident defendant is subject to
specific personal jurisdiction only if (1) the defendant purposefully availed
itself of the benefits of conducting activities in the forum state; (2) the
controversy arises out of or is related to the defendant's forum contacts; and
(3) the exercise of jurisdiction would be fair and reasonable. (Id.; [citing Burger
King Corp. v. Rudzewicz (1985) 471 U.S. 462, 475-478 and Pavlovich v.
Superior Court (2002) 29 Cal.4th 262, 269].) “Specific jurisdiction depends
on the quality and nature of the defendant's forum contacts in relation to the
particular cause of action alleged” (Id. [citing Cornelison v. Chaney
(1976) 16 Cal.3d 143, 147–148]; see also Vons Cos., Inc. v. Seabest Foods,
Inc. (1996) 14 Cal.4th 434, 447¿448.)¿ The Court of Appeal has restated
this test in plainer language, explaining that courts test for specific
jurisdiction “by examining the relationships between this litigation, these
defendants, and California.”¿ (Dunne v. State of Florida (1992) 6
Cal.App.4th 1340, 1344.)¿ “These guidelines are not susceptible of mechanical application,
and the jurisdictional rules are not clear-cut. Rather, a court must weigh the
facts in each case to determine whether the defendant's contacts with the forum
state are sufficient.”¿ (HealthMarkets at 1167 [citations omitted].)¿¿
Purposeful Availment
Here, LG Chem argues that Plaintiff cannot establish
purposeful availment because the 18650 cell that allegedly injured Plaintiff
could only have arrived in California as the result of unilateral actions of
third parties unconnected to LG Chem. LG Chem claims that there is no other way
the cell could have arrived in California because LG Chem never designed,
manufactured, distributed, advertised, or sold 18650 lithium-ion cells for sale
to or use by individual consumers as standalone, replaceable batteries; never
conducted any business with 559 Cigarettes and More; never sold its 18650 cells
to anyone to be distributed into a consumer market for standalone, replaceable
lithium-ion batteries in California or anywhere else; and never authorized anyone
to advertise, distribute, or sell LG 18650 lithium-ion cells for use by
individual consumers as standalone, replaceable batteries in vaping devices or
for any other purpose. (Choi Decl. ¶¶ 9-15.)
In opposition, Plaintiff asserts that LG Chem purposefully
availed itself of the 18650-battery market in California as it sold, shipped,
and distributed its 18650 cells to its own subsidiaries, consignees in
California, it conceded so and its import data reflects so. Moreover, Plaintiff
asserts that per LG Chem’s own corporate representative, Shin, LG Chem knew
these batteries were being used by individual consumers for uses like
e-cigarettes or vapes as early as 2015 or 2016 and that they were causing fires
and injuries like it did to Plaintiff here. (Plaintiff’s Opp. p. 14.) Plaintiff
relies on the case of Berven v. LG Chem, Ltd., and has asked this Court
to reference it in its analysis.
In Berven v. LG Chem, Ltd. the court examined the
similar issues relevant to this case and in reading the product at issue to be
LG Chem’s lithium-ion battery. Plaintiff argues that it should not be qualified
by who the battery is to be used by or when, or how, or whether that use was
authorized or not. The court in Berven did not agree with LG Chem’s
excessively narrow definition of the “product” based on these qualifiers.
Plaintiff asserts that similarly, the Court here should not because the actual
dimensions of the 18650 cell or its features or power does not change based on
who the product was intended for or who is considered “authorized” user per LG
Chem. There, the court decided that the true relevant inquiry was whether LG
Chem purposefully availed itself of 18650 battery market in California
But the
Court does not agree with LG Chem's framing of the “product” as limited to a
certain battery distributed in a certain way, for a certain use, in certain
packaging. The method of distribution is not part of the definition of the
product. Nor is the manner of use. When it comes to evaluating contacts for
jurisdiction under case law, including Asahi’s stream of commerce plus test,
the “product” is the product being sold, which, in the present case, is the
18650 battery.
No. 118CV01542DADEPG, 2019 WL 1746083, at *11 (E.D. Cal.
Apr. 18, 2019), report and recommendation adopted, No. 118CV01542DADEPG, 2019
WL 4687080 (E.D. Cal. Sept. 26, 2019).
Applying the same standard as the Berven court here,
Plaintiff asserts that LG Chem purposefully availed itself of the 18650-battery
market in California in general, with respect to sealed packs of battery
clusters rather than individual, stand-alone batteries..
Sufficiently Related
Specific jurisdiction depends on the quality and nature of
the defendant's forum contacts in relation to the particular cause of action
alleged. [Citation.]” (Anglo Irish Bank Corp., PLC v. Superior Court
(2008) 165 Cal.App.4th 969, 978.)¿
¿
“A controversy is related to or arises out of the
defendant's forum contacts, so as to satisfy the second requirement for the
exercise of specific personal jurisdiction, if there is “a substantial
connection between the forum contacts and the plaintiff's claim.” [Citation.]
The forum contacts need not be the proximate cause or “but for” cause of the
alleged injuries. [Citation.] The forum contacts also need not be
“substantively relevant” to the cause of action, meaning those contacts need
not establish or support an element of the cause of action. [Citation.] “A
claim need not arise directly from the defendant's forum contacts in order to
be sufficiently related to the contact to warrant the exercise of specific
jurisdiction. Rather, as long as the claim bears a substantial connection to
the nonresident's forum contacts, the exercise of specific jurisdiction is
appropriate.” [Citation.] Accordingly, in evaluating the quality and nature of
the defendant's forum contacts, we consider not only the conduct directly
affecting the plaintiff, but also the broader course of conduct of which it is
a part. [Citation.]” (Id. at p. 979.)¿
Here, LG Chem argues that Plaintiff’s claims do not arise
out of or relate to any purposeful contact LG Chem had with California. LG Chem
argues that by selling an industrial component product to a sophisticated
customer, LG Chem would not bargain for lawsuits by consumers injured because
third parties sold that product for an unauthorized purpose—just as Bristol-Myers
Squibb did not bargain for lawsuits by out-of-State plaintiffs by selling
its product in the forum State. (Bristol-Myers
Squibb v. Superior Court (2017) 137 S.Ct. 1773, 1781.) In Bristol-Myers
Squibb, the plaintiffs, many of whom were not
California residents, sued a pharmaceutical drug manufacturer in California
state court for alleged damages caused by the drug Plavix. The manufacturer was
incorporated in Delaware and headquartered in New York. (Id. at p.
1775.) The United States Supreme Court held that the manufacturer’s decision to
contract with a California distributor to distribute the drug nationally did
not provide a sufficient basis for personal jurisdiction. (Id. at p.
1777 [“The bare fact that BMS contracted with a California distributor is not
enough to establish personal jurisdiction in the State”].) Further, where the
nonresidents “were not prescribed Plavix in California, did not purchase Plavix
in California, did not ingest Plavix in California, and were not injured by
Plavix in California,” there was no “connection between the forum and the
specific claims at issue” even where “other plaintiffs were prescribed,
obtained, and ingested Plavix in California” and “allegedly sustained the same
injuries as did the nonresidents.” (Id. at p. 1781.) “‘[A] defendant’s
relationship with a . . . third party, standing alone, is an insufficient basis
for jurisdiction’ [citation.]” and where “all conduct giving rise to the . . .
claims occurred elsewhere [,] it follows that the California courts cannot
claim specific jurisdiction.” (Id. at pp. 1782.)
However, Plaintiff asserts that
this case is more akin to Ford v. Montana
Eighth Judicial District Court (2021) 141 S.Ct. 1017 for guidance. In Ford,
the plaintiffs were residents of the forum state, and suffered injury in that
state from the product. (Ford, 141 S.Ct. at 1023.) The United States
Supreme Court declared that “[w]hen a company …serves a market for a product in
a State and that product causes injury in the State to one of its residents,
the State's courts may entertain the resulting suit.” Here, Plaintiff’s claim
arises out of an 18650 lithium-ion battery. The same battery that Plaintiff
asserts arises out of LG Chem’s forum-related contacts.
LG Chem argued in its moving
papers that Ford is distinguishable from the case at bar because its
contacts with the forum state were much stronger than LG Chem’s contacts. For
example, Ford urged consumers in the forum state to purchase its products
whereas, LG Chem did not design or manufacture 18650 lithium-ion cells for sale
to individual consumers as standalone batteries and did not distribute,
advertise, or sell 18650 lithium-ion cells directly to consumers.
However, it is the Court’s
understanding that in the present case, LG Chem need not have contacts with the
same level of relatedness to the injury as did the defendant in Ford. “A
claim need not arise directly from the defendant’s forum contacts in order to
be sufficiently related to the contact to warrant the exercise of specific
jurisdiction.” (Vons Companies, Inc. v. Seabest Foods, Inc.¿(1996) 14 Cal.4th 434, 452.) “Rather, as
long as the claim bears a substantial connection to the nonresident’s forum
contacts, the exercise of specific jurisdiction is appropriate.” (Ibid.)
In this case, Plaintiff has asserted facts to suggest that the correct
relatedness consideration here is whether LG Chem sold the same kind of 18650
battery within California as the one that injured Plaintiff. Plaintiff has also
suggested that the uncontroverted facts thus far demonstrate that LG Chem did
sell this battery. Additionally, Plaintiff argues that LG Chem directly
supplied 18650 lithium-ion batteries to California customers between the years of
2015-2018 and still does. Specifically, Plaintiff claims there were 49
shipments of lithium-ion of lithium-ion batteries to California ports directly
from LG Chem. Plaintiff further asserts that this is not third-party or
unauthorized conduct - this is LG Chem’s own direct contact with the state of
California, as it relates to the exact product that is the subject of this
litigation: an 18650 lithium-ion battery.
3. LG Chem, Ltd. v. Superior Court (2022) 80
Cal.App.5th 348 (“Lawhon”)
LG Chem filed a supplement brief regarding the recent case
of LG Chem, Ltd. v. Superior Court (2022) 80 Cal.App.5th 348 (“Lawhon”).
LG Chem argues that Lawhon contended “that specific jurisdiction can be
exerted over LG Chem wherever it sold its 18650 batteries, even if, as here, it
deliberately limited its sales to a narrow range of businesses and tailored
these transactions to avoid a consumer market. Under his contention, there
would potentially be personal jurisdiction over a company in a consumer’s product
liability claim in any jurisdiction that is part of the product’s distribution
chain. That goes too far.” (Lawhon, supra, 80 Cal.App.5th at p. 368,
bolding added.) Accordingly, the Court of Appeal issued a writ of mandate
directing the trial court to vacate its order denying LG Chem’s motion to quash
service of summons for lack of personal jurisdiction and enter a new order
granting the motion to quash. (Id. at p. 374.)
The plaintiff in Lawhon, supra, 80 Cal.App.5th 348,
“Ryan Lawhon, a California resident, alleged he was severely injured when an
18650 lithium-ion battery he bought from a San Diego vape shop suddenly
exploded in his pocket.” (Id. at p. 354.) The jurisdictional facts were
“not disputed: LG Chem sold 18650 batteries as industrial component products to
original equipment manufacturers and battery packers who sell to original
equipment manufacturers. It did not design, manufacture, distribute, advertise
or sell the batteries for sale to or use by individual consumers as standalone,
replaceable batteries.” (Id. at p. 354.) “In the two-year period leading
up to Lawhon’s injury on February 7, 2019, LG Chem’s sales of 18650 batteries
in California were to three companies in the electric vehicle industry[.]” (Id.
at p. 357.)1 “[T]he number of batteries sold, and the dollars generated from
these sales, were in the millions.” (Ibid.)
“In the trial court, Lawhon sought to dispatch his burden”
of proving the second prong of the specific jurisdiction analysis—that his
claims arise out of or relate to LG Chem’s purposeful contacts with
California—“by merely demonstrating that ‘LG Chem is selling batteries into the
California battery market and [he] was injured by a battery he purchased in
California.’ His effort to establish a connection between LG Chem’s California
activities and his product liability claims ended there. He argued, and the
trial court agreed, ‘[t]hat alone should be sufficient to establish this prong
of the [jurisdictional] test.” (Lawhon, supra, 80 Cal.App.5th at p. 365,
original brackets.) “It is not.” (Lawhon, supra, 80 Cal.App.5th at p.
365, bolding added.) The Court of Appeal held “Lawhon’s alleged injury from an 18650-battery purchased at a vape shop, whose supply chain is unknown
and unconnected to LG Chem, ‘“in no sense arise[s]”’ from LG Chem’s sales of
18650 batteries to three California companies in the electric vehicle industry
for use in electric vehicles.” (Ibid., original brackets, quoting Bristol-Myers
Squibb Co. v. Superior Court (2017) 137 S.Ct. 1773, 1779, quoting Bristol-Myers Squibb Co. v.
Superior Court (2016) 1 Cal.5th 783, 819 (dis. opn. of Werdegar, J.).) Nor
did Lawhon establish “that those sales are ‘related enough’ to his product
liability claims to permit the constitutional exercise of jurisdiction over LG
Chem, in [his] specific suit.” (Lawhon, at p. 365, original italics,
quoting Ford Motor, supra, 141 S.Ct. at p. 1031.)
Plaintiff submitted a supplemental briefing, attempting to
distinguish Lawhon. The Court
fins that LG Chem has the better of the argument on the persuasiveness of the
Fourth District in that very similar case.
Plaintiff also argues that this Court should rely on Berven
v. LG Chem, Ltd.. (E.D.Cal., Apr. 18, 2019, No. 1:18-CV-01542) 2019
U.S. Dist. LEXIS 66505 (“Berven”) report and recommendation adopted
(E.D.Cal., Sept. 25, 2019) 2019 U.S. Dist. LEXIS 166041. (Opp. at 12:20–14:24.)
In Berven, the plaintiff alleged she had been injured in California when
an 18650-battery manufactured by LG Chem exploded in her e-cigarette. (See Berven,
supra, [2019 WL 1746083, at p. 1.) The federal district court denied LG
Chem’s motion to dismiss for lack of personal jurisdiction and granted the plaintiff’s
motion for leave to amend the complaint to add jurisdictional allegations (Id.
at 1, 14.) The proposed amended pleading at issue in Berven asserted
that LG Chem provided lithium-ion batteries to distributors in California with
the reasonable expectation that they would be used in California, and that LG
Chem also sold 19650 batteries directly to consumers in California. The
proposed amendment further asserted that LG Chem sold 18650 batteries to
distributors with the expectation that such batteries would end up in
electronic cigarette markets in California. The Court in Berven observed
that allegations in the amended complaint were true for the purposes of the
motion to dismiss and concluded that Plaintiff had established that California
had specific jurisdiction over LG Chem under a stream of commerce theory.
In
its supplemental briefing, LG Chem asserted that this Court should not that in
federal court, t, “[u]controverted allegations in the complaint must be taken
as true.” (Berven, supra, 2019 U.S. Dist. LEXIS 66505, at *23.) California
courts, on the other hand, properly do not “lighten plaintiffs’ burden of proof
of jurisdictional facts” because “[t]hat burden of proof is grounded in
constitutional guarantees of due process.” (Automobile Antitrust, supra, 135
Cal.App.4th at p. 113.) In California state courts, “a plaintiff must do more
than make allegations. A plaintiff must support its allegations with ‘competent
evidence of jurisdictional facts. Allegations in an unverified complaint are
insufficient to satisfy this burden of proof.’” (Rivelli, supra, 67 Cal.App.5th
at p. 393, quoting Automobile Antitrust, at p. 110.) As such, LG Chem has
asserted that this Court should look askance at Berven.
Here,
Honorable Judge Gary Y. Tanaka, in his August 29, 2022, minute order, granted a
continuance to allow Plaintiff to conduct jurisdictional discovery to attempt
to meet its burden to establish the existence of jurisdiction. Since then,
Plaintiff has made no amendment to its complaint in attempt to meet its burden.
In its opposition, Plaintiff has submitted that if this Court is not persuaded
by Plaintiff’s evidence, Plaintiff requested jurisdictional discovery.
Plaintiff notes that it intends to serve tailored requests for admission,
interrogatories, and a deposition of LG Che’s Persons Most Qualified. However,
there is no evidence thus far that Plaintiff has engaged in any of the
following. Additionally, Defendant LG Chem noted in its November 14, 2022,
filing that Plaintiff had not submitted a supplemental opposition.
It is this
Court’s view that on the “relatedness” prong of a specific jurisdiction
analysis, Plaintiff has failed to meet his threshold burden of establishing
that the required connection exists between LG Chem's sales of 18650 batteries
for use as industrial component parts in electric vehicles, and his injuries
from a standalone 18650 battery purchased at a vape shop. As a result, the
trial court may not exercise personal jurisdiction over LG Chem in this
products liability case consistent with the Constitutions of California and the
United States. The Court thus GRANTS LG
Chem's motion to quash.