Horvath v. Niles

• Decision Date: 28 September 1992
• Docket Number: No. 1:91:cv:930.,1:91:cv:930.
• Citation: 802 F. Supp. 146
• Parties: Rosalie HORVATH and Michael Horvath, husband and wife, Plaintiffs, v. Wilbert P. NILES, D.O., Orthopedic Services of South Bend, Inc., and Michiana Community Hospital, jointly and severally, Defendants.
• Court: U.S. District Court — Western District of Michigan

802 F. Supp. 146

Rosalie HORVATH and Michael Horvath, husband and wife, Plaintiffs, v. Wilbert P. NILES, D.O., Orthopedic Services of South Bend, Inc., and Michiana Community Hospital, jointly and severally, Defendants.

No. 1:91:cv:930.

United States District Court, W.D. Michigan.

September 28, 1992.

Bruce C. Conybeare, John C. Johnson, Conybeare Law Office, PC, St. Joseph, Mich., for plaintiffs.

Cynthia E. Merry, Vandeveer Garzia, PC, Detroit, Mich., Scott P. Whonsetler, Jacobson, Maynard, Tuschman & Kalur, Louisville, Ky., for defendants Wilbert P. Niles, D.O. and Orthopedic Services of South Bend, Inc.

Ronald E. Baylor, Miller, Canfield, Paddock & Stone, Kalamazoo, Mich., David J. Mallon, Jr., Gloria Aplin, Ice, Miller, Donadio & Ryan, Indianapolis, Ind., for defendant Michiana Community Hosp.

OPINION

ENSLEN, District Judge.

This matter is before the Court on motions to dismiss for lack of jurisdiction and improper venue, submitted by each of the three defendants at bar. Plaintiffs, Rosalie and Michael Horvath, are Michigan residents who seek compensation for injuries which they allege arise from defendants' negligent acts and omissions during defendants' treatment of Rosalie Horvath's right knee. Plaintiffs commenced this medical malpractice action against Wilbert P. Niles, the orthopedic surgeon who performed surgery on Ms. Horvath's knee, Orthopedic Services of South Bend, Inc., Dr. Niles' employer, and Michiana Community Hospital, the hospital at which the alleged malpractice occurred. Plaintiffs allege that all defendants' either reside, operate, or are incorporated in Indiana.

SUBJECT MATTER JURISDICTION

Defendants' motion asserts that this court does not have subject matter jurisdiction over this case, pursuant to F.R.C.P. Rule 12(b)(1). In reviewing a 12(b)(1) motion, the inquiry of the Court is whether or not the challenged pleading sets forth allegations sufficient to show that the Court has subject matter jurisdiction in the case. In making this determination, the pleadings are to be taken as true and construed in a light most favorable to the party opposing the motion. Scheuer v. Rhodes, 416 U.S. 232, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974). The Court is not restricted, however, to examining only the pleadings, but may review any evidence such as affidavits to resolve factual disputes. E.g. Land v. Dollar, 330 U.S. 731, 67 S.Ct. 1009, 91 L.Ed. 1209 (1947). Should the pleader allege facts from which jurisdiction may be inferred, the motion must be denied. Mountain Fuel Supply Co. v. Johnson, 586 F.2d 1375 (10th Cir.1978), cert. denied, 441 U.S. 952, 99 S.Ct. 2182, 60 L.Ed.2d 1058.

Defendants do not dispute that they are either residents of Indiana, or corporations which hold their principal place of business in Indiana and are incorporated in Indiana. Furthermore, defendants do not dispute that plaintiffs are residents of Michigan. Therefore, the diverse citizenship of the parties confers subject matter jurisdiction over the dispute upon this court. Accordingly, defendants' motion to dismiss for lack of subject matter jurisdiction is denied.

PERSONAL JURISDICTION

Rule 12(b)(2) of the Federal Rules of Civil Procedure provides the authority for the Court to dismiss a complaint for lack of personal jurisdiction. The trial court has discretion to decide a Rule 12(b)(2) motion before trial, with or without a hearing, or to defer a decision until trial. Serras v. First Tennessee Bank Nat'l Ass'n, 875 F.2d 1212, 1214 (6th Cir.1989). The plaintiff always bears the burden to establish facts necessary to support jurisdiction. Id. (citing McNutt v. General Motors Acceptance Corp., 298 U.S. 178, 189, 56 S.Ct. 780, 785, 80 L.Ed. 1135 (1936)). The nature of the burden, however, depends on whether the Court decides the issue on the written submissions or by a hearing. Id.

When the Court decides whether personal jurisdiction exists by consideration of the written submissions alone, plaintiff must bolster the allegations with affidavits or other evidence of specific facts to support jurisdiction, but the Court must "`consider the pleadings and affidavits in the light most favorable to the plaintiff.'" Id. (quoting Welsh v. Gibbs, 631 F.2d 436, 439 (6th Cir.1980), cert. denied, 450 U.S. 981, 101 S.Ct. 1517, 67 L.Ed.2d 816 (1981)). In other words, plaintiff has the burden of making a prima facie case for jurisdiction. Id. "If she meets that burden the motion to dismiss should be denied, `notwithstanding any controverting presentation by the moving party.'" Id. (quoting Marine Midland Bank, N.A. v. Miller, 664 F.2d 899, 904 (2d Cir.1981)). However, "a threshold determination that personal jurisdiction exists `does not relieve the plaintiff ... at the trial of the case-in-chief from proving the facts upon which jurisdiction is based by a preponderance of the evidence." Id. (quoting United States v. Montreal Trust Co., 358 F.2d 239, 242 n. 4 (2d Cir.), cert. denied, 384 U.S. 919, 86 S.Ct. 1366, 16 L.Ed.2d 440, reh'g denied, 384 U.S. 982, 86 S.Ct. 1858, 16 L.Ed.2d 693 (1966)).

The Supreme Court recognizes two types of personal jurisdiction over defendants who are not residents of the forum state—specific and general jurisdiction. Specific jurisdiction exists when the defendant's contacts with the forum are related to the controversy and those contacts reach a "minimum" threshold. International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945). When the controversy does not arise out of the defendant's contacts with the forum, the court may exercise general jurisdiction if the defendant has "continuous and systematic" contacts with the forum, even though those contacts have no relation to the underlying controversy. Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984).

The Standard

Because this case is brought in diversity, Michigan law governs this Court's exercise of personal jurisdiction over defendants. In-Flight Devices Corp. v. Van Dusen Air, Inc., 466 F.2d 220, 224 (6th Cir.1972). Although the International Shoe standard sets liberal boundaries for state long-arm jurisdiction under federal due process, due process does not compel states to reach the limits of those boundaries. Perkins v. Benguet Consol. Mining Co., 342 U.S. 437, 72 S.Ct. 413, 96 L.Ed. 485 (1952). Generally speaking, the Michigan jurisdictional statutes confer on the state courts the maximum scope of personal jurisdiction permitted by the due process clause of the fourteenth amendment. Lak, Inc. v. Deer Creek Enterprises, 885 F.2d 1293, 1298 (6th Cir.1989) (quoting Chrysler Corp. v. Fedders Corp., 643 F.2d 1229, 1236 (6th Cir.), cert. denied, 454 U.S. 893, 102 S.Ct. 388, 70 L.Ed.2d 207 (1981)). However, in this circumstance, the reach of the Michigan long-arm statutes is not coextensive with the Due Process Clause.

The courts of Michigan have chosen to shorten the reach of Michigan's long-arm statutes when they are applied to out-of-state medical providers. This result was accomplished in Woodward v. Keenan, 79 Mich.App. 543, 261 N.W.2d 80 (1977). In Woodward, the plaintiff was a Michigan resident who was losing her hearing. Plaintiff visited a Michigan doctor, who referred her to defendant South Bend Clinic, an Indiana establishment. Plaintiff was examined at the Indiana clinic by Dr. Keenan, who then sent a letter detailing the examination to plaintiff's Michigan physician. Later medical consultations in Michigan led Ms. Woodward to believe that Dr. Keenan failed to correctly diagnose her ailment, and she sued for malpractice in Michigan.

The Michigan Appellate Court which heard her case determined that it did not have personal jurisdiction over the Indiana defendants. Its interpretation of Michigan's long-arm statutes as applied to out-of-state health care providers was driven by policy considerations.

While we recognize the state's interest in providing a convenient forum for vindicating the rights of its injured residents, this interest cannot override Michigan's legitimate concern that its citizens obtain out-of-state professional care whenever it is needed or desired.

Woodward, 79 Mich.App. at 547, 261 N.W.2d 80. The Court stated that its views were accurately reflected in the opinion in Gelineau v. New York University Hospital, 375 F.Supp. 661 (D.N.J.1974). Gelineau states:

It is clear that when a client or a patient travels to receive professional services without having been solicited * * * then the client, who originally traveled to seek services apparently not available at home, ought to expect that he will have to travel again if he thereafter complains that the services sought by him in the foreign jurisdiction were therein rendered improperly.

Woodward, 79 Mich.App. at 547, 261 N.W.2d 80, citing Gelineau at 667. See also Alan B. McPheron, Inc. v. Koning, 125 Mich.App. 325, 331-332, 336 N.W.2d 474 (1983) (relying on this reasoning to enforce Oklahoma's exercise of personal jurisdiction over a Michigan resident who failed to pay the Oklahoma attorney he had hired).

The Woodward Court went on to explain when out-of-state professionals may be sued in Michigan courts:

The present holding shall not apply in instances where out-of-state professionals carry on any business in Michigan, for in such a case their professional status can have no bearing. If ... Michigan residents are encouraged on a systematic or continuing basis to utilize professional facilities outside of Michigan, then those offering this encouragement will have purposefully availed themselves of the privilege of conducting activities within Michigan and thereby have become amenable to the personal jurisdiction of our courts.

Woodward, 79 Mich.App. at 548-549, 261 N.W.2d 80 (citations omitted).

Therefore, the standard by which this Court must measure its general personal jurisdiction over out-of-state doctors and health care facilities is unique. As the Sixth Circuit...