Snelling v. Vapors
| Decision Date | 31 March 2021 |
| Docket Number | No. CIV 19-0686 JB/GJF,CIV 19-0686 JB/GJF |
| Parties | ANDREW DEAN SNELLING, Plaintiff, v. TRIBAL VAPORS; SMOKE FREE TECHNOLOGIES, INC. d/b/a VAPORBEAST.COM and SHENZHEN MXJO TECHNOLOGY CO., LTD., Defendants. |
| Court | U.S. District Court — District of New Mexico |
THIS MATTER comes before the Court on the Plaintiff's Motion for Entry of Default as to Defendants Tribal Vapors, Smoke Free Technologies, Inc. d/b/a Vaporbeast.com, and Shenzhen MXJO Technology Co., Ltd., filed March 30, 2020 (Doc. 8)("Default Motion"). The primary issues are: (i) whether the Court has personal jurisdiction over Defendants Tribal Vapors, Smoke Free Technologies, Inc. d/b/a Vaporbeast.com ("Smoke Free"), and Shenzhen MXJO Technology Co., Ltd. ("Shenzhen MXJO"), which the Court must determine before entering judgment by default against a party who has not appeared in the case; (ii) if the Court has jurisdiction over the Defendants, whether the Court should enter default judgment as to the Defendants' liability under rule 55(b) of the Federal Rules of Civil Procedure, because the Defendants have "failed to plead or otherwise defend," pursuant to rule 55(a), in response to the Plaintiff Andrew Dean Snelling's properly served Complaint and Demand for Jury Trial, filed July 26, 2019 (Doc. 1)("Complaint"); (iii) whether the Court should enter default judgment as to Snelling's requested $933,508.04 damages amount, because the damages are for a "sum certain or a sum that can be made certain by computation," Fed. R. Civ. P. 55(b)(1); and (iv) whether the Court should set a date for a jury trial, because, Snelling requested a jury trial in his Complaint ¶ 199, at 54, and, under rule 38(d), the parties have not dually consented to a withdrawal of Snelling's jury trial request. The Court concludes that: (i) it has general jurisdiction over Tribal Vapors, because Snelling has established that Tribal Vapors' contacts with New Mexico are so continuous and systematic that it is essentially at home in New Mexico; (ii) it does not have general jurisdiction or specific jurisdiction over Smoke Free or Shenzhen MXJO, however, because Snelling does not establish that Smoke Free's or Shenzhen MXJO's contacts with New Mexico are so continuous and systematic that they are essentially at home in New Mexico, nor does Snelling establish that Smoke Free or Shenzhen MXJO have sufficient minimum contacts with New Mexico to comport with the federal Due Process Clause's requirements; (iii) because the Court only has personal jurisdiction over Tribal Vapors, it can only enter default judgment against Tribal Vapors; (iv) it will enter default judgment, pursuant to rule 55(b), as to Tribal Vapors' liability, because (a) Snelling properly served his summons and Complaint on Tribal Vapors pursuant to rule 4(m); (b) Tribal Vapors has "failed to plead or otherwise defend" in response to Snelling's Complaint under rule 55(a); and (c) Snelling properly obtained the an entry of default from the Clerk of the Court of the United States District Court of the United States District of New Mexico under rule 55(a), see Clerk's Entry of Default at 1, filed April 17, 2020 (Doc. 15)("Default Entry"); (v) the Court will not, however, enter default judgment as to Snelling's requested $933,508.04 damages amount, because: (a) Snelling's requested general damages and special damages related to his injuries cannot "be made certain by computation," Fed. R. Civ. P. 55(b)(1), but, rather, "remain[] to be established by proof," Flaks v. Koegel, 504 F.2d 702, 707 (2d Cir. 1974); and (b) Snelling's requested costs and disbursements that he incurred pursuant to the litigation, are costs that are awarded after judgment is entered, see D.N.M.LR-Civ. 54.1, or attorney's fees that "may not be awarded without a hearing to determinethe amount," Hunt v. Inter-Globe Energy, Inc., 770 F.2d 145, 148 (10th Cir. 1985); (vi) it will set a date for a jury trial to determine Snelling's damages, because Snelling: (a) requested a jury trial in his Complaint, see Complaint ¶ 199, at 54; (b) properly served that Complaint on Tribal Vapors, see Fed. R. Civ. P. 4(m); and (c) the parties have not dually consented to a withdrawal of Snelling's jury trial request, see Fed. R. Civ. P. 38(d). Accordingly, the Court enters default judgment only to Tribal Vapors' liability, but will set a date for a jury trial on Snelling's requested damages.
The Court takes its facts from Snelling's Complaint. See Complaint ¶¶ 1-197, at 1-53. In reviewing a default judgment, the Court takes "'the well-pleaded factual allegations' in the complaint 'as true.'" DIRECTV, Inc. v. Hoa Huynh, 503 F.3d 847, 854 (9th Cir. 2007)(quoting Cripps v. Life Ins. Co. of North America, 980 F.2d 1261, 1267 (9th Cir. 1992) and citing Fed. R. Civ. P. 55(a); Benny v. Pipes, 799 F.2d 489, 495 (9th Cir. 1986)). "However, a 'defendant is not held to admit facts that are not well-pleaded or to admit conclusions of law.'" DIRECTV, Inc. v. Hoa Huynh, 503 F.3d at 854 (quoting Nishimatsu Constr. Co. v. Houston Nat'l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975)). "[D]istrict courts have discretion to decline to award default judgment when there are serious doubts as to the merits of the plaintiff's substantive claim." Sutton v. Heartland Payment Sys., LLC, No. CIV 18-0723 PJK/KK, 2019 WL 5268597, at *1 (D.N.M. Oct. 17, 2019)(Kelly, J.)(citing Eitel v. McCool, 782 F.2d 1470, 1471 (9th Cir. 1986)).
1. Snelling brings a negligence and product liability action against Tribal Vapors, Smoke Free, and Shenzhen MXJO, seeking recovery for his "substantial personal injuries and damages," which he suffered after "purchas[ing] and usi[ing] two MXJO IMR 18650 lithium ion batter[ies]" ("lithium ion batteries"). Complaint ¶ 1, at 1.
2. Snelling is a citizen and resident of Park Rapids, Minnesota. See Complaint ¶ 2, at 1.
3. Tribal Vapors is a New Mexico company, with its principal place of business in Alamogordo, New Mexico, See Complaint ¶ 4, at 1.
4. Smoke Free is a Delaware corporation, with its principal place of business in Carlsbad, California. See Complaint ¶ 6, at 2.
5. Shenzhen MXJO is a corporation organized under the laws of the People's Republic of China, with its principal business address in Xixiang Sub-District, Bao'an District, Shenzhen, People's Republic of China. See Complaint ¶ 8, at 3.
6. The lithium ion batteries that Snelling used were "marketed sold, and distributed by Defendants Tribal Vapors, Smoke Free Technologies, Inc. d/b/a Vaporbeast.com by and through their officers, employees and agents." Complaint ¶ 1, at 1.
7. The lithium ion batteries "were designed, manufactured, marketed, distributed and sold by Defendant Shenzhen MXJO Technology Co., Ltd." Complaint ¶ 1, at 1-2.
8. "Manufacturers, distributors, and sellers of electronic cigarettes, or "e-cigarettes," as they are more commonly known, claim to provide a tobacco-free and smoke-free alternative to traditional cigarettes." Complaint ¶ 14, at 4.
9. "E-cigarettes offer doses of nicotine via a vaporized solution." Complaint ¶ 14, at 4.
10. "All e-cigarettes are designed and function in a similar way." Complaint ¶ 15, at 5. 11. E-cigarettes consists of three primary components: (i) "a tank or cartridge that is filled with a liquid (known as 'juice' or 'e-liquid')," which generally "contains a concentration of nicotine"; (ii); "an 'atomizer' or 'cartomizer,' which heats and converts the contents of the liquid-filled cartridge to a vapor that the user then inhales (hence the term, 'vaping')" and (iii) "a battery, which provides power for the atomizer." Complaint ¶ 15, at 5 ().
12. The ingredients of juice or e-liquid "vary from brand to brand"; E-Juice, however, "typically contains 95% propylene glycol and glycerin." Complaint ¶ 15, at 5 n.2
13. "Hundreds of different types and brands of E-Juice exist, and come in flavors such as cherry, cheesecake, and cinnamon." Complaint ¶ 15, at 5 n.2.
14. "The wire is wrapped around the wicking material (usually cotton) in a coil formation; the two ends of the coil are then connected to the casing in a way that permits contact with the battery." Complaint ¶ 15, at 5.
15. Complaint ¶ 15, at 5.
16. "Heating coils feature a specific resistance, which is measured in ohms." Complaint ¶ 16, at 6.
17. Complaint ¶ 16, at 6 n. 3.
18. "Ohms are the standard international unit of electrical resistance, expressing the resistance in a circuit transmitting a current of one ampere when subjected to a potential differenceof one volt." Complaint ¶ 16, at 6 n.4.
19. "In order for an e-cigarette to work effectively (and safely) the battery voltage must be carefully balanced with the heating coil resistance. Complaint ¶ 16, at 6.
20. "If the battery voltage is too high and the resistance is too low, the heating coil can overheat and damage the battery, allowing for 'thermal runaway' to occur, whereby the internal battery temperature can cause a fire or explosion, and which is often the result of 'poor design, use of low quality materials . . . [and] manufacturing flaws and defects. . . .'" Complaint ¶ 16, at 6 ("Burn Car Res. 2009").
21. "Thermal runaway refers to a chemical reaction in which a repeating cycle of excessive heat causes more heat until an explosion occurs." Complaint ¶...
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