Taubler v. Giraud
| Decision Date | 08 September 1981 |
| Docket Number | No. 79-3726,79-3726 |
| Citation | 655 F.2d 991 |
| Parties | 1981-2 Trade Cases 64,285 Walter J. TAUBLER, Plaintiff-Appellant, v. Robert GIRAUD and Philippe Giraud, Defendants-Appellees. |
| Court | U.S. Court of Appeals — Ninth Circuit |
Michael J. Dennis, Law Offices, Los Angeles, Cal., for plaintiff-appellant.
Brien F. McMahon, Johnsen, Manfredi & Thorpe, Los Angeles, Cal., for defendants-appellees.
Appeal from the United States District Court for the Central District of California.
Before CHAMBERS and CHOY, Circuit Judges, and CROCKER, * District Judge.
Walter J. Taubler ("Taubler") brought suit against two French citizens for breach of contract and antitrust violations. The district court dismissed the action, finding that it had no in personam jurisdiction over the defendants. We reverse, finding that the defendants had sufficient contacts with the State of California to justify assertion of jurisdiction there for the purpose of this action.
The action below was dismissed under Rule 12(b)(2) of the Federal Rules of Civil Procedure. Accordingly, we presume true the facts as alleged by Taubler. 1
Taubler met the Girauds while he was a salesman for Bass-Charrington Vintners, Ltd., a California wine distributor. Philippe and Robert Giraud are the father-and-son owners and operators of a winery and wine distribution business in France. Philippe Giraud came to California in 1972 to promote the Girauds' wine. Taubler and Philippe traveled to several California locations, visiting wine retailers and distributors. In 1973, Taubler met the Girauds at a French wine promotional event in New York and traveled with them to California. During this time, Taubler developed a personal and working relationship with the Girauds. Taubler entertained Philippe and introduced him to California wine merchants. Taubler and Philippe exchanged letters and Christmas greetings after the California visits.
In 1974, Taubler quit his job as a wine salesman for Bass-Charrington and contacted the Girauds asking to purchase their wines under a private label. Several letters were exchanged in which the Girauds indicated that rather than a private label, they would sell their wines to Taubler under the exisiting label after terminating their exclusive contract with Bass-Charrington. In a telephone conversation Philippe assured Taubler that the wines would be sold to him. Taubler then flew to France for further negotiations. On October 29, 1974, Taubler and the Girauds signed a two-year agreement for sale of the wines. The prices and other details were added after continued correspondence and a meeting of the parties in New York. The Girauds paid Taubler's travel expenses for the New York meeting after changing their original plan to meet in California.
The parties engaged in extensive communications via telephone, telex, telegram and mail during the negotiation period. Taubler filed fair trade forms in California which were signed by Robert Giraud. The Girauds knew that this would allow them to benefit from the California laws regarding price posting and minimum prices. The Girauds also agreed to lower their prices and to give Taubler an exclusive distributorship in California. In August 1975, pursuant to the agreement, the Girauds shipped one order of wines to Taubler at San Francisco, FOB France, with payment due 60 days after arrival. Delivery in California was a prerequisite to payment. The payment was made from California in October. The Girauds also sent sample cases and labels to California, and paid customs penalties incurred in California.
Also in 1975, and unknown to Taubler, the Girauds contracted with Somerset Wine Company, Inc., a national wine distributor, to sell their wines to Somerset for over 25% less than Taubler's prices. In November of 1975, the Girauds refused to sell any more wine to Taubler. They referred a customer of Taubler's to Somerset and encouraged Somerset to begin servicing that and other California customers. The Girauds sent samples to Somerset, and took orders representing approximately $28,000 in revenue. They refused to make further sales to Taubler and changed their California price-posting designee from Taubler to Somerset.
Taubler then instituted this action against the Girauds for breach of contract and antitrust violations. The complaint alleged a conspiracy between Somerset and the Girauds in violation of the Sherman Act, 15 U.S.C. §§ 1, 2; and discriminatory pricing in violation of the Robinson-Patman Act, 15 U.S.C. § 13(a). In another count, Taubler alleged state law antitrust violations. A related action was filed against Somerset for antitrust violations and interference with contract.
Taubler began discovery and brought a motion to compel after receiving only some of the documents he had requested. The Girauds brought a motion to dismiss for lack of personal jurisdiction, and Taubler moved for a stay or for a change of venue before a determination of the jurisdiction question. The district court granted the dismissal in an order from the bench stating that one shipment of wines, FOB France, was not sufficient to justify jurisdiction over the Girauds. Taubler's motions were never heard.
The issue in this case is whether personal jurisdiction exists over the Girauds under the facts as alleged, for the purpose of Taubler's breach of contract and antitrust claims.
This court has recognized a two-step test to determine whether in personam jurisdiction exists. First, we look to the applicability of the state long-arm statute, and second, we ask whether application of the statute is consistent with due process. Greenspun v. Del E. Webb Corp., 634 F.2d 1204, 1207 (9th Cir. 1980). The California long-arm statute provides for personal jurisdiction to the full extent allowed by the requirements of due process. See Cal.Code Civ.Proc. § 410.10. Thus in this case we proceed directly to the due-process analysis.
Due process requires that the defendant have sufficient minimum contacts with the forum state such that imposition of personal jurisdiction comports with "traditional notions of fair play and substantial justice." International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945). A significant Supreme Court case decided last year has given new guidance for application of the International Shoe test. In World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980), the Court cut short any trend toward unlimited personal jurisdiction and emphasized that an isolated and unanticipated injury within the foreign state is not sufficient to support in personam jurisdiction. Both World-Wide Volkswagen, and Rush v. Savchuk, 444 U.S. 320, 100 S.Ct. 571, 62 L.Ed.2d 516 (1980), a quasi-in-rem jurisdiction case decided the same term, note that the due process analysis focuses on the defendant, rather than the plaintiff. The question is whether under the totality of the circumstances the defendant could reasonably anticipate being called upon to present a defense in a distant forum. World-Wide Volkswagen, supra 444 U.S. at 297, 100 S.Ct. at 567.
Taubler does not argue that the Girauds' contacts with California are so significant as to justify general jurisdiction over them for all actions. Rather, Taubler argues that the Girauds' contacts with California, viewed in their totality, make it fair to assert jurisdiction over them for the limited purpose of the instant complaint.
This court has detected the presence of limited jurisdiction with a three-part test:
(1) The nonresident defendant must do some act or consummate some transaction with the forum or perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws. (2) The claim must be one which arises out of or results from the defendant's forum-related activities. (3) Exercise of jurisdiction must be reasonable.
Data Disc, Inc. v. Systems Technology Assoc., 557 F.2d 1280, 1287 (9th Cir. 1977) (citations omitted).
The Girauds' possible contacts with California under the facts as alleged include their visits and promotional activity there prior to the contract; entering into a contract to sell wine for California distribution; letters, telexes, telegrams, and telephone calls to Taubler in California; flying Taubler from California to meet them in New York; shipping samples to California; paying customs penalties incurred there; designating Taubler, and later Somerset, as licensee for fair-trade benefits; shipping one order to California, FOB France; obtaining payment from California; conspiring with Somerset to displace Taubler in the California market; breaching the contract; and discriminatory pricing. Many of these contacts would be insignificant if viewed alone. Viewed in their totality, however, they indicate that the Girauds deliberately targeted the California market. They knew and intended that their wines would be sold there, 2 they actively promoted their product in California, and they were willing to breach the contract and violate antitrust laws in order to increase their business success there.
From these facts it is fair to say that the Girauds have engaged in purposeful activity in California. The breach of contract and antitrust claims arise out of that activity, which can be generally described as selling wine for California distribution. The final question is whether exercise of jurisdiction is reasonable. We find that it is.
In Insurance Co. of North America v. Marina Salina Cruz, 649 F.2d 1266 (9th Cir. 1981), this court listed seven factors which were relevant to measuring the reasonableness of jurisdiction in that case:
(A) The extent of the purposeful interjection into the forum state.
(B) The burden on the defendant of defending in the forum.
(C) The extent of...
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