Judge: Serena R. Murillo, Case: 21STCV42289, Date: 2023-04-21 Tentative Ruling

Case Number: 21STCV42289    Hearing Date: April 21, 2023    Dept: 29

TENTATIVE 

 

Cross-Defendant Ennis-Flint, Inc.’s unopposed motion to quash service of summons and cross-complaint is GRANTED.

 

Legal Standard 

 

“A defendant . . . may serve and file a notice of motion for one or more of the following purposes:  (1) To quash service of summons on the ground of lack of jurisdiction of the court over him or her. . . .”  (Code Civ. Proc., § 418.10(a).) 

 

California courts may exercise personal jurisdiction on any basis consistent with the Constitutions of California and the United States.  (Civ. Proc. Code, § 410.10.)  “When a defendant moves the trial court to quash service of summons for lack of personal jurisdiction, the plaintiff has the initial burden of proving that sufficient contacts exist between the defendant and California to justify the exercise of personal jurisdiction.”  (Malone v. Equitas Reinsurance Ltd. (2000) 84 Cal.App.4th 1430, 1436.)  “Once facts showing minimum contacts with the forum state are established, however, it becomes the defendant's burden to demonstrate that the exercise of jurisdiction would be unreasonable.”  (Vons Companies, Inc. v. Seabest Foods, Inc. (1996) 14 Cal.4th 434, 449.)   

 

There are two main ways for a court to exercise jurisdiction pursuant to the Due Process Clause, specific jurisdiction and general jurisdiction.  (Young v. Daimler AG (2014) 228 Cal.App.4th 855, 861.)  “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 U.S. 117, 137.)  General jurisdiction over a nonresident defendant exists if the defendant’s contacts in the forum state are “substantial … continuous and systematic.”  (Id. at 445-46, citing Perkins v. Benguet Consol. Mining Co. (1952) 342 U.S. 437, 445, 446.)  If the contacts are not pervasive, the court may only exercise jurisdiction based upon contacts that relate directly to the transaction or activity out of which the suit arises.  (Cornelison v. Chaney (1976)16 Cal. 3d 143, 147-148.)  This is called “specific jurisdiction.”  (Helicopteros Nacionales de Columbia v. Hall (1984) 466 U.S. 408, 411, fn. 8.)  A nonresident may be subject to specific jurisdiction if: (1) the nonresident has purposefully availed itself of the benefits and protections of the state’s laws; (2) the controversy arises out of the nonresident’s contacts with the state; and (3) it would be fair and just to assert jurisdiction.  (Burger King Corp. v. Rudzewicz (1985) 471 U.S. 462, 472; Pavlovich, supra, 29 Cal.4th at 269.) 

 

Request for Judicial Notice

 

Defendant’s requests for judicial notice are GRANTED.

 

Discussion 

Specially Appearing Cross-Defendant Ennis-Flint (Cross-Defendant) moves to quash service of summons and cross-complaint on the ground that the Court lacks personal jurisdiction because it is a North Carolina Corporation with its principal place of business in North Carolina. Greer Decl., ¶ 4, Exh. A to Request for Judicial Notice.) Cross-Defendant does not own, control, manage, or otherwise have any relationship to the Vons store located at 18439 Ventura Blvd. in Tarzana, California. (Id., 5.) Nor has Cross-Defendant made any sales to the other named defendants to this action, Vons and Safeway, Inc. Accordingly, this court lacks personal jurisdiction, either in general or specific form, over Cross-Defendant Ennis-Flint. (Beck Decl.,  4; Exh. B. to Request for Judicial Notice.)

Regarding general jurisdiction, “[a] court may assert general jurisdiction over foreign . . . corporations . . . when their affiliations with the State are so ‘continuous and systematic’ as to render them essentially at home in the forum state.”  (Goodyear Dunlop Tires Operations, S.A. v. Brown, supra, 131 S.Ct. at 2851, citing International Shoe Co. v. Washington, supra, 326 U.S. 310 at 317.)  In further explaining the basis for general jurisdiction over a corporation, the Supreme Court in Daimler AG v. Bauman (2014) 134 S.Ct. 746, 760 clarified: 

 

Goodyear made clear that only a limited set of affiliations with a forum will render a defendant amenable to all-purpose jurisdiction there. “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.” 564 U.S., at ––––, 131 S.Ct., at 2853–2854 (citing Brilmayer et al., A General Look at General Jurisdiction, 66 Texas L.Rev. 721, 728 (1988)). With respect to a corporation, the place of incorporation and principal place of business are “paradig[m] ... bases for general jurisdiction.” Id., at 735. See also Twitchell, 101 Harv. L.Rev., at 633. Those affiliations have the virtue of being unique—that is, each ordinarily indicates only one place—as well as easily ascertainable. Cf. Hertz Corp. v. Friend, 559 U.S. 77, 94, 130 S.Ct. 1181, 175 L.Ed.2d 1029 (2010) (“Simple jurisdictional rules ... promote greater predictability.”). These bases afford plaintiffs recourse to at least one clear and certain forum in which a corporate defendant may be sued on any and all claims. 

 

While the Daimler Court recognized that “Goodyear did not hold that a corporation may be subject to general jurisdiction only in a forum where it is incorporated or has its principal place of business,” it also acknowledged that the exercise of general jurisdiction over a corporate defendant is not appropriate “in every State in which a corporation ‘engages in a substantial, continuous, and systematic course of business.’ ”  (Id. at 761.)  The Court found that such a broad formulation would be “unacceptably grasping.”  (Id.)

 

Here, Cross-Complainant has failed to meet its burden of proof to demonstrate facts justifying the court’s exercise of general jurisdiction over Cross-Defendant, as Cross-Complainant has not filed an opposition. Thus, Cross-Complainant not met its burden to show that Defendant has minimum contacts with California to establish general jurisdiction. 

 

As to specific jurisdiction, Cross-Complainant offers no argument or proof to show that the nonresident has purposefully availed itself of the benefits and protections of the state’s laws. “For purposes of the purposeful availment prong, the ‘... United States Supreme Court has described the forum contacts necessary to establish specific jurisdiction as involving variously a nonresident who has ‘purposefully directed’ his or her activities at forum residents [citation], or who has ‘purposefully derived benefit’ from forum activities [citation], or ‘purposefully avail[ed himself or herself] of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws,’ or ‘deliberately’ has engaged in significant activities with a State [citation] or has created ‘continuing obligations’ between himself and residents of the forum [citation].’ [Citation.]” (Gilmore Bank, supra, 223 Cal.App.4th at p. 1568.)  

 

“In Vons, a tort case, our Supreme Court applied the forum benefits test for purposeful availment, not the effects test. (Vons, supra, 14 Cal.4th 434, […].) There, Vons Companies, Inc. (Vons), the California cross-complainant, alleged negligence and other tort causes of action against a franchisor whose principal place of business was California (Jack-in-the-Box) and several of Jack-in-the-Box's Washington-based franchisees. [Citation.] Our Supreme Court held that California had specific jurisdiction over the Washington franchisees because they had ‘purposefully availed themselves of benefits in the forum by reaching out to forum residents to create an ongoing franchise relationship.’ [Citation.] The Washington franchisees had ‘purposefully availed themselves of the benefits of doing business with [Jack-in-the-Box]. They formed a substantial economic connection with this state. To require them to answer Vons's claim, as well, is not to allow a third party unilaterally to draw them into a connection with the state; rather, it was [the Washington franchisees] who established the connection.’ [Citation.] Our Supreme Court recognized that Vons ‘was not a party to the franchise contract, and thus the claim is not on the contract.... This distinction, however, does not render the exercise of specific jurisdiction improper.’ [Citation.] ‘The due process clause is concerned with protecting nonresident defendants from being brought unfairly into court in the forum, on the basis of random contacts. That constitutional provision, however, does not provide defendants with a shield against jurisdiction when the defendant purposefully has availed himself or herself of benefits in the forum.’ [Citation.]” (Id. at pp. 1570-1571.) 

 

“Thus, the test for purposeful availment does not hinge mechanically on whether the plaintiff's claim sounds in tort or contract. Rather, a court must apply ‘a ‘highly realistic’ approach’ on a case-by-case basis and select the most appropriate test for purposeful availment based on the particular facts presented. [Citations.] Indeed, because California's long-arm statute ‘manifests an intent to exercise the broadest possible jurisdiction’ [citation], its courts may apply the purposeful availment test most conducive to establishing specific jurisdiction over a defendant in a particular case, consistent with due process.” (Id. at p. 1571.) 

 

There is no evidence that Cross-Defendant purposefully directed its activities at forum residents, or has purposefully derived benefit from forum activities, or purposefully availed itself of the privilege of conducting activities within the forum State, or deliberately has engaged in significant activities California, or has created continuing obligations between its and residents of the forum.

Conclusion

Accordingly, Cross-Defendant’s motion to quash service of summons and cross-complaint is GRANTED.

  Moving party is ordered to give notice.