Centronics Data Computer Corp. v. MANNESMANN, AG

• Decision Date: 10 June 1977
• Docket Number: Civ. A. No. 76-333.
• Citation: 432 F. Supp. 659
• Parties: CENTRONICS DATA COMPUTER CORPORATION v. MANNESMANN, A. G., Mannesmann Prazisions Technik, GmbH, Demag-Meer, A. G., Mannex (London), Ltd., Mannesmann Export, A. G., and Lohmann & Stolterfoht, A. G.
• Court: U.S. District Court — District of New Hampshire

432 F. Supp. 659

CENTRONICS DATA COMPUTER CORPORATION v. MANNESMANN, A. G., Mannesmann Prazisions Technik, GmbH, Demag-Meer, A. G., Mannex (London), Ltd., Mannesmann Export, A. G., and Lohmann & Stolterfoht, A. G.

Civ. A. No. 76-333.

United States District Court, D. New Hampshire.

June 10, 1977.

Richard F. Horowitz, Weiss, Rosenthal, Heller, Schwartzman & Lazar, New York City, Joseph A. Millimet and Andrew D. Dunn, Devine, Millimet, Stahl & Branch, Manchester, N. H., for plaintiff.

James E. Higgins, Sheehan, Phinney, Bass & Green, Manchester, N. H., for defendants.

MEMORANDUM OPINION AND ORDER ON MOTION TO DISMISS

BOWNES, District Judge.

This action is brought by Centronics Data Computer Corporation (Centronics), a Delaware corporation with a principal place of business in Hudson, New Hampshire, against Mannesmann, A.G.; Mannesmann Prazisions Technik, GmbH; Demag-Meer, A.G.; Mannex (London), Ltd.; Mannesmann Export, A.G.; and Lohmann & Stolterfoht, A.G. (henceforth referred to as "Mannesmann" and treated collectively) which, together, it is alleged, comprise a multinational conglomerate with principal headquarters in Germany.

The complaint alleges that the defendants violated antitrust laws, interfered with advantageous contractual relations, misappropriated trade secrets, and defamed the plaintiff. Jurisdiction is alleged pursuant to 28 U.S.C. §§ 1332(a) and 1337 and 15 U.S.C. §§ 15 and 26. The complaint does not state on what New Hampshire statute jurisdiction is based, but, giving it a broad, liberal reading, I conclude that the complaint implies use of New Hampshire's "long arm" statutes, NH RSA 300:11(c) and 300:14.

The defendants have moved to dismiss the complaint on the following grounds: that they did not have sufficient contacts with the District of New Hampshire to be subject to in personam jurisdiction; that the venue requirements of 15 U.S.C. § 22 have not been met; and that there is no in personam jurisdiction because service of process under NH RSA 300:11 was not authorized. The defendants also claim that venue is improper because New Hampshire is an inconvenient forum.

I have previously considered jurisdictional and venue questions very close to those involved here in Grappone, Inc. v. Subaru of America, Inc., 403 F.Supp. 123 (D.N.H. 1975). In that case, an automobile dealer sued an importer and distributor under the Federal antitrust statutes and under the so-called Dealers Day in Court Act, 15 U.S.C. §§ 1221 et seq. I held that the importer transacted business in New Hampshire within the meaning of the antitrust venue statute, 15 U.S.C. § 22, and the New Hampshire long arm statute, NH RSA 300:11(c). There was no reason to consider the applicability of NH RSA 300:14.

VENUE

In Grappone, the defendant was a Pennsylvania corporation with a principal place of business in New Jersey. The controlling venue statute was the special antitrust venue statute, 15 U.S.C. § 22. I also found venue under 28 U.S.C. § 1391(b) which allows a federal claim to be brought in the judicial district "in which the claim arose." Grappone, Inc. v. Subaru of America, Inc., supra, 403 F.Supp. at 133. In so finding, I held that "the special antitrust venue statute is supplemented by the general venue statute." Op. cit. See also Call Carl, Inc. v. BP Oil Corp., 391 F.Supp. 367 (D.C.Md.1975); Professional Adjusting System of America, Inc. v. General Adjustment Bureau, Inc., 352 F.Supp. 648 (E.D.Pa.1972); Philadelphia Housing Authority v. American Radiator & Standard Sanitary Corp., 291 F.Supp. 252, 257 (E.D.Pa.1968); Hoffman Motors Corp. v. Alfa Romeo S.P.A., 244 F.Supp. 70 (S.D.N.Y.1965).

Here, the analysis that I went through in Grappone is unnecessary. The defendants in this action are all aliens, and venue is properly in this court by virtue of 28 U.S.C. § 1391(d) which provides: "An alien may be sued in any district." Venue is also here pursuant to 28 U.S.C. § 1391(b) as the district "in which the claim arose," since it is alleged that the defendants' actions injured the plaintiff in New Hampshire.

JURISDICTION

The Federal Rules provide that service of a complaint may be made upon a foreign corporation by following the manner prescribed by the law of the state in which the District Court is held. F.R.Civ.P. 4(d)(3) and (7). Grappone, Inc. v. Subaru of America, Inc., supra, 403 F.Supp. at 133; Seymour v. Parke, Davis & Co., 294 F.Supp. 1257, 1259 (D.N.H.1969), aff'd, 423 F.2d 584 (1st Cir. 1970). The plaintiffs have availed themselves of Rule 4(d)(3) and (7) by using the service provisions of New Hampshire's long arm statutes.

In Grappone, Inc. v. Subaru of America, Inc., supra, 403 F.Supp. at 133-134, I outlined the criteria necessary for in personam jurisdiction and for personal service under the foreign corporation long arm statute, NH RSA 300:11(c), which provides:

Whenever any foreign corporation authorized to transact, or transacting business in this state shall fail to appoint or maintain in this state a registered agent upon whom service of legal process or service of any such notice or demand may be had, or whenever service on any such registered agent cannot with reasonable diligence and promptness be made as above provided, or whenever the certificate of authority of any foreign corporation shall be forfeited, then and in every such case the secretary of state shall be and hereby is irrevocably authorized as the agent and representative of such foreign corporation to accept service of any process or service of any notice or demand required or permitted by law to be served upon such corporation.

This statute is meant to extend jurisdiction over foreign corporations to the full constitutional limit. Roy v. North American Newspaper Alliance, 106 N.H. 92, 95, 205 A.2d 844 (1964).

In my analysis of jurisdictional facts as they relate to the New Hampshire statute, I am guided by two principles.

First, the exercise of jurisdiction has to be reasonable from the standpoint of New Hampshire's interest in the litigation. Second, it has to be consistent with principles of fair play and substantial justice.

Leeper v. Leeper, 114 N.H. 294, 296, 319 A.2d 626, 628 (1974) as quoted in Grappone, Inc. v. Subaru of America, Inc., supra, 403 F.Supp. at 134.

In addition, the reach of the long arm statute may not be extended beyond what is permitted by the Constitution of the United States.

The factors to be weighed in determining whether the contacts in a given case are sufficient to meet the requirements of fair play called for by the Due Process Clauses of the Fifth and Fourteenth Amendments include the quantity of contacts, the nature of the contacts, and the connection of the cause of action with those contacts. Mulhern v. Holland America Cruises, 393 F.Supp. 1298 (D.N.H.1975). In addition, I must consider New Hampshire's interest in protecting its citizens and whether that interest has been invoked here. Look v. Hughes Tool Co., 367 F.Supp. 1003 (D.N.H. 1973); Seymour v. Parke, Davis & Co., supra, 294 F.Supp. 1257.

This court has considered the due process requirements of the Fourteenth and Fifth Amendments as set out in International Shoe v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945), and its progeny on numerous occasions. Cf. Grappone, Inc. v. Subaru of North America, Inc., supra, 403 F.Supp. 123; Acme Engineering, Inc. v. Ceramic Coating Co., 397 F.Supp. 875 (D.N.H. 1975); Mulhern v. Holland America Cruises, supra, 393 F.Supp. 1298; Look v. Hughes Tool Co., supra, 367 F.Supp. 1003; Gill v. Fairchild Hiller Corp., 312 F.Supp. 916 (D.N.H.1970); Seymour v. Parke, Davis & Co., supra, 294 F.Supp. 1257. Under the usual test, the state must have "sufficient contacts" so that the maintenance of a suit locally would not offend the "traditional conception of fair play and substantial justice." International Shoe v. Washington, supra, 326 U.S. at 320, 66 S.Ct. at 160. "When deciding whether the extension of jurisdiction would violate `judicial notions of fair play and substantial justice,' courts should inquire `whether defendant could have reasonably anticipated that its activities would have an effect' in this jurisdiction. Mulhern v. Holland America Cruises, 393 F.Supp. 1298, 1303 (D.N.H.1975)." Grappone, Inc., supra, 403 F.Supp. at 134.

Since there is no question of subject matter jurisdiction, I turn to the sufficiency of the defendants' contacts with the State. The alleged contacts are as follows. First, representatives of Mannesmann visited New Hampshire at plaintiff's place of business on three occasions in 1973, 1974, and 1975. Each of these contacts, it is alleged, were in furtherance of the defendants' interest in marketing their computer printers. Pl's. Memorandum, pp. 8-9. Secondly, it is alleged that an American distributor, one Frank Schaller, visited New Hampshire repeatedly. Pl's. Memorandum, pp. 10-27. The plaintiff also alleges that Mannesmann agents visited other New Hampshire corporations. These are the only alleged physical contacts by the defendants with this State.

The three visits by Mannesmann representatives to Centronics do not, in and of themselves, constitute sufficient contacts with the State of New Hampshire on which to base jurisdiction. Clearly, these contacts are not sufficient to meet the fairness requirement. There were very few visits, and the only sale was probably procured for the purpose of attempting to establish jurisdiction. The cause of action in no way originates from the New Hampshire contacts of the defendants with the plaintiff.

In Seymour v. Parke, Davis & Co., 423 F.2d 584 (1st Cir. 1970), the First Circuit Court of Appeals upheld this court's dismissal for want of jurisdiction where the defendants' physical contacts with the State were greater than those here. However, the subject matter of the complaint in that case had no connection with the State of New Hampshire and bore no relation to the defendants' contacts with the State. The...