O'Connor v. Sandy Lane Hotel Co., Ltd.

Decision Date26 July 2007
Docket NumberNo. 05-3288.,05-3288.
Citation496 F.3d 312
PartiesPatrick J. O'CONNOR; Marie M. O'Connor; Appellants, v. SANDY LANE HOTEL CO., LTD.
CourtU.S. Court of Appeals — Third Circuit

James Mundy (Argued), Raynes, McCarty, Binder, Ross & Mundy, Philadelphia, PA, Counsel for Appellant.

Paul A. Lisovicz (Argued), Coughlin Duffy, Morristown, NJ, Counsel for Appellee.

Before: FISHER, CHAGARES, and REAVLEY,* Circuit Judges.

OPINION OF THE COURT

CHAGARES, Circuit Judge.

While receiving a massage treatment at a Barbados hotel, appellant Patrick J. O'Connor slipped, fell, and injured his shoulder. He and the hotel had arranged for that massage by telephone after the hotel mailed a spa brochure to his Pennsylvania home. Mr. O'Connor and his wife Marie brought negligence claims against the hotel, and the District Court dismissed for want of personal jurisdiction. In this appeal, we conclude that the District Court had specific jurisdiction to adjudicate the O'Connors' claims. As a result, we will reverse and remand.

I.

Appellee Sandy Lane Hotel Company is a Barbados corporation. Its sole business is the operation of the Sandy Lane Hotel in St. James, Barbados. The hotel considers itself "the premier address in the Caribbean," and its features include 45 holes of championship golf, a state-of-the-art spa, and a setting "overlooking a gorgeous crescent of beach on Barbados' western coast." Appendix ("App.") 259, 276.

Patrick and Marie O'Connor reside in Pennsylvania. They first heard about Sandy Lane while planning a vacation.1 Friends and travel agents said good things about the resort, so the couple booked a week's stay through the American Express travel agency. The O'Connors left for Barbados in late February 2002 and returned to Pennsylvania in early March. Upon their return, Sandy Lane started mailing seasonal newsletters to the O'Connors' home. These newsletters kept the O'Connors up to date on new amenities and other changes at Sandy Lane. See, e.g., App. 304 ("[O]ur wine waiters have been in France this summer participating in the harvest and improving their wine knowledge to better serve you.").

In early 2003, the O'Connors decided to make a return trip. They booked a five-night stay at Sandy Lane through a travel agency. Sandy Lane then mailed the O'Connors a brochure highlighting the many treatments available at the on-site spa. The brochure advised the couple to schedule spa treatments in advance of their trip. The O'Connors perused the brochure and liked what they saw. They decided to purchase various treatments, and the scheduling process involved a series of phone calls both to and from Sandy Lane. In the end, Sandy Lane agreed to provide spa treatments at specific dates and times, and the O'Connors agreed to pay a set price.

The O'Connors arrived in Barbados shortly thereafter, and, on February 26, Mr. O'Connor was due for one of his massages. He went to the spa at the appointed time, and the staff began to "rejuvenate" his "mind, body, and spirit." App. 281, 325. As part of that process, a Sandy Lane employee instructed Mr. O'Connor to step into the shower and wash up. Unfortunately, Mr. O'Connor's feet were still slick with massage oils, and there were no mats on the shower's wet floor. As he stepped into the shower, Mr. O'Connor slipped, fell, and tore his rotator cuff.

Mr. and Mrs. O'Connor brought negligence claims against the hotel in the Court of Common Pleas for Philadelphia County. Sandy Lane removed the case to the United States District Court for the Eastern District of Pennsylvania, and the District Court dismissed for lack of personal jurisdiction. The O'Connors appeal.

II.

The District Court had subject-matter jurisdiction because the O'Connors are citizens of Pennsylvania, Sandy Lane is a Barbados corporation, and the amount in controversy exceeds $75,000. See 28 U.S.C. §§ 1332, 1441; Nat'l S.S. Co. v. Tugman, 106 U.S. 118, 121, 1 S.Ct. 58, 27 L.Ed. 87 (1882). We have jurisdiction under 28 U.S.C. § 1291, and we exercise plenary review over the District Court's dismissal for lack of personal jurisdiction. Pinker v. Roche Holdings, Ltd., 292 F.3d 361, 368 (3d Cir.2002).

Once challenged, the plaintiff bears the burden of establishing personal jurisdiction. General Elec. Co. v. Deutz AG, 270 F.3d 144, 150 (3d Cir.2001). Nonetheless, since the District Court did "not hold an evidentiary hearing . . ., the plaintiff[s] need only establish a prima facie case of personal jurisdiction and the plaintiff[s][are] entitled to have [their] allegations taken as true and all factual disputes drawn in [their] favor." Miller Yacht Sales, Inc. v. Smith, 384 F.3d 93, 97 (3d Cir.2004).

Under Federal Rule of Civil Procedure 4(k), a District Court typically exercises personal jurisdiction according to the law of the state where it sits. See Fed. R.Civ.P. 4(k)(1)(A). Because this case comes to us from the United States District Court for the Eastern District of Pennsylvania, we apply the Pennsylvania long-arm statute. It provides for jurisdiction "based on the most minimum contact with th[e] Commonwealth allowed under the Constitution of the United States." 42 Pa. Cons.Stat. Ann. § 5322(b); see Mellon Bank (East) PSFS, Nat'l Ass'n v. Farino, 960 F.2d 1217, 1221 (3d Cir.1992). Accordingly, in determining whether personal jurisdiction exists, we ask whether, under the Due Process Clause, the defendant has "certain minimum contacts with . . . [Pennsylvania] such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice." See Int'l Shoe Co. v. Washington, 326 U.S. 310, 316 66 S.Ct. 154, 90 L.Ed. 95 (1945) (internal quotation omitted).

III.

The two types of personal jurisdiction are general jurisdiction and specific jurisdiction. See Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414-15 & n. 9, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984). The O'Connors conceded at oral argument that Sandy Lane lacks the "continuous and systematic" Pennsylvania contacts needed to support general jurisdiction, so we consider only the specific variety here.

The inquiry as to whether specific jurisdiction exists has three parts. First, the defendant must have "purposefully directed [its] activities" at the forum. Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985) (quotation marks omitted). Second, the litigation must "arise out of or relate to" at least one of those activities. Helicopteros, 466 U.S. at 414, 104 S.Ct. 1868; Grimes v. Vitalink Commc'ns Corp., 17 F.3d 1553, 1559 (3d Cir.1994). And third, if the prior two requirements are met, a court may consider whether the exercise of jurisdiction otherwise "comport[s] with `fair play and substantial justice.'" Burger King, 471 U.S. at 476, 105 S.Ct. 2174 (quoting Int'l Shoe, 326 U.S. at 320, 66 S.Ct. 154).2

A.

At the threshold, the defendant must have "purposefully avail[ed] itself of the privilege of conducting activities within the forum." Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958). Physical entrance is not required. See Burger King, 471 U.S. at 476, 105 S.Ct. 2174; Grand Entm't Group, Ltd. v. Star Media Sales, Inc., 988 F.2d 476, 482 (3d Cir.1993) ("Mail and telephone communications sent by the defendant into the forum may count toward the minimum contacts that support jurisdiction."). But what is necessary is a deliberate targeting of the forum. Thus, the "unilateral activity of those who claim some relationship with a nonresident defendant" is insufficient. See Hanson, 357 U.S. at 253, 78 S.Ct. 1228. And contacts with a state's citizens that take place outside the state are not purposeful contacts with the state itself. See Gehling v. St. George's Sch. of Med., Ltd., 773 F.2d 539, 542-43 (3d Cir. 1985).

Some of the contacts alleged by the O'Connors do not meet this standard.3 First, the O'Connors claim they heard about the hotel from friends and travel agents in Pennsylvania. Sandy Lane, however, was not a party to these conversations, and they have no bearing on our jurisdictional inquiry. See Hanson, 357 U.S. at 253, 78 S.Ct. 1228. Second, the O'Connors rely on their 2002 trip to Sandy Lane. This too lacks jurisdictional significance. Contact with vacationing Pennsylvanians is no substitute for contact with Pennsylvania. See Gehling, 773 F.2d at 542-43. A Philadelphia vendor may sell a lot of cheesesteaks to German tourists, but that does not mean he has purposefully availed himself of the privilege of conducting activities within Germany.

Nonetheless, Sandy Lane's other claim-specific contacts do amount to purposeful availment. After the O'Connors' initial stay, Sandy Lane continued to cultivate the relationship by mailing seasonal newsletters to their Pennsylvania home. And after the O'Connors booked their 2003 trip, Sandy Lane mailed them a brochure and traded phone calls with them for the purpose of forming an agreement to render spa services. Through these acts, Sandy Lane deliberately reached into Pennsylvania to target two of its citizens. See Hanson, 357 U.S. at 253, 78 S.Ct. 1228; Grand Entm't, 988 F.2d at 482. Thus, if the O'Connors' allegations are true, then they establish purposeful contact with Pennsylvania. See Miller Yacht, 384 F.3d at 97.

B.
1.

Identifying some purposeful contact with the forum is but the first step in the specific-jurisdiction analysis. The plaintiffs' claims must also "arise out of or relate to" at least one of those contacts. Helicopteros, 466 U.S. at 414, 104 S.Ct. 1868; Grimes, 17 F.3d at 1559. Unfortunately, the Supreme Court has not yet explained the scope of this requirement.4 See Helicopteros, 466 U.S. at 415 n. 10, 104 S.Ct. 1868.5 State and lower federal courts have stepped in to fill the void, but their decisions lack any consensus. See generally Miller Yacht, 384 F.3d at 102-05 (Scirica, C.J., dissenting in part) ("The courts of appeals have adopted divergent...

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