Synoptek, LLC v. Synaptek Corp.
Synoptek, LLC v. Synaptek Corp.
Opinion of the Court
I. INTRODUCTION
On October 4, 2016, Plaintiff Synoptek, LLC, filed this action against Defendant Synaptek Corporation. (Dkt. 1 [hereinafter "Compl."].) Synoptek alleged four causes of action: (1) trademark infringement based on Section 32 of the Lanham Act,
II. BACKGROUND
Synoptek is a limited liability company organized and existing under the laws of California and its principal place of business is in Irvine, California. (Compl. ¶ 1.) "Synoptek provides information technology management services and support to organizations worldwide," including "core infrastructure management, management and hosting of cloud services, in-depth security tools and services, using advanced toolsets supported by our 24x7 Enterprise *981Operations Centers, IT consulting, custom development, applications support, business continuity/disaster recovery services and 24x7 end-user service and support." (Id. ¶ 7.) Synoptek is the owner of the SYNOPTEK trademark, U.S. Trademark
Synaptek is a Virginia corporation with its principal place of business in Reston, Virginia. (Dkt. 16-2 [hereinafter "Jinnah Decl."] ¶ 1.) It provides information technology services including providing wifi installation and support. (Id. ¶¶ 1, 13.) Synaptek primarily works as a government contractor; it was one of several subcontractors to Harris Corporation on a contract to provide wifi services for the Department of Veterans Affairs ("VA") and specifically in the VA's 331 medical centers throughout the United States. (Id. ¶¶ 11-12.) In that capacity, Synaptek field engineers would first perform wireless site surveys "to determine signal penetration throughout the facilities in order to accurately determine the placement of access points to achieve the best wireless coverage." (Dkt. 25 Ex. 1 at 172.) Those surveys were performed onsite. (Id. ) Then, Synaptek employees would take the resulting map of the entire facility offsite, where senior core engineers would review it, process it, and then submit it to Harris Corporation. (Id. at 173.) Harris Corporation, and ultimately the federal government, would review the Synaptek plan for wifi implementation, and return it either with approval or with requested changes. (Id. at 173.) To incorporate changes into the plan, a return to the site could conceivably be necessary. (Id. at 173.) Once a wifi implementation plan is finalized, then Harris Corporation employees will go to the site to install the components; Synaptek core engineers would monitor installation remotely. (Id. at 174.) After installation, there is post-installation validation testing done by Synaptek field engineers; any post-installation modifications were done remotely by core engineers. (Id. at 174-75.) Some final documentation is prepared and delivered to Harris Corporation. (Id. at 176; see also Dkt. 25 Exs. 10, 18-24.)
Synaptek followed this procedure at seven or eight VA medical centers in California, including a facility in Long Beach, California. (Id. at 176; Jinnah Decl. ¶ 14.) Four of Synaptek's former employees reside in California-Mr. Talamantes (who did not work onsite at any VA medical center), Mr. Mowat (a field engineer who worked onsite at VA medical centers inside and outside of California), Mr. Oatham (a principal wireless engineer and later a CORE engineer, overseeing site surveys, designs, and implementation), and Mr. Goecke (employed to support a Washington D.C. customer who was not involved in, nor did he work with, California VA medical centers). (Dkt. 25 Ex. 5 at 9.) In addition, Synaptek was the prime contractor with the Defense Logistics Agency in Philadelphia, Pennsylvania; in that capacity, Synaptek commissioned a subcontractor based in Manteca, CA, to perform electrical services work at a data center in Tracy, California. (Id. at 7.) Finally, fourteen other current or former Synaptek employees are not California residents but likely were called upon and dispatched by Synaptek to support the work at California VA medical centers. (Id. at 4-7; Dkt. 25 Ex. 1 at 131-37.)
During the duration of his employment with Synaptek, Mr. Goecke worked out of his Tracy, California home. (Dkt. 25 Ex. 2 at 21-22.) His offer of employment letter was sent by Synaptek to his home, and it contained both Synaptek's name and logo. (Dkt. 25 Ex. 6.) Synaptek also provided him with business cards containing its name and logo. (Dkt. 25 Ex. 2 at 25.)
*982Finally, Synaptek sent him a jacket with its logo and name embroidered on it. (Id. )
Mr. Oatham received his employment letter by email at his home in San Jose, California. (Dkt. 25 Ex. 3 at 10.) He was recruited by Synaptek and was interviewed twice before being offered employment. (Id. at 10-11.) Synaptek gave him with business cards, when he would arrive at a site he would introduce himself as a Synaptek employee, and he had a Synaptek email address. (Id. at 21, 24-25, 37.) He also had a similar jacket to Mr. Goecke's and he would try to wear it on the first day he worked at a site. (Id. at 45-46, 74.) In general, Mr. Oatham would travel to a site for two weeks and then work from his California home for two weeks. (Id. at 33.) He was given a corporate card to pay for his airfare and hotels; Synaptek paid him a per diem and reimbursed him for other expenses such as his cell phone and internet connection after he filled out a Synaptek reimbursement form. (Id. at 28, 38-39.) Synaptek provided him with a laptop and monitor, shipped to his home via Federal Express, and at least some of his work involved filling out Synaptek-specific forms that had Synaptek's name and logo. (Id. at 34-35.)
Synaptek sent equivalent employment letters to its other two California employees. (Dkt. 25 Exs. 9, 10.) During the time Synaptek employed California residents, Synaptek reported taxable income to the State of California. (Jinnah Decl. ¶ 15; Dkt. 25 Ex. 2 at 26; Dkt. 25 Ex. 3 at 74-75.) Finally, Synaptek maintains a website, www.synaptekcorp.com, which is accessible in California, and through which California individuals could contact Synaptek. (Jinnah Decl. ¶ 8; Dkt. 25 Ex. 1 at 39.) However, Synaptek does not sell services through its website, and it does not otherwise advertise in California or solicit business in California. (Jinnah Decl. ¶ 8.)
III. DISCUSSION
A. Personal Jurisdiction
Federal courts may only decide cases over which they have statutory jurisdiction and where the exercise of jurisdiction comports with due process. Glencore Grain Rotterdam B.V. v. Shivnath Rai Harnarain Co. ,
Where, as here, there is no applicable federal statute governing personal jurisdiction, the district court applies the law of the state in which the court sits. Yahoo! Inc. v. La Ligue Contre Le Racisme Et L'Antisemitisme ,
There are two categories of personal jurisdiction. First, a "court may assert *983general jurisdiction over foreign (sister-state or foreign-country) corporations to hear any and all claims against them when their affiliations with the State are so 'continuous and systematic' as to render them essentially at home in the forum State." Goodyear Dunlop Tires Operations, S.A. v. Brown ,
Specific jurisdiction, in contrast, "depends on an affiliation between the forum and the underlying controversy, principally, activity or an occurrence that takes place in the forum State and is therefore subject to the State's regulation.... [S]pecific jurisdiction is confined to adjudication of issues deriving from, or connected with, the very controversy that establishes jurisdiction." Goodyear ,
The Ninth Circuit "employ[s] a three-part test to assess whether a defendant has sufficient contacts with the forum state to be subject to specific personal jurisdiction." Picot v. Weston ,
The "exact form" of the jurisdictional inquiry depends on the nature of the claim at issue.
*984(same). Therefore, the Court applies a "purposeful direction" test and looks to evidence that the defendant has directed his actions at the forum state, even if those actions took place elsewhere. Picot ,
Synaptek is not subject to general jurisdiction in California. Contrary to Plaintiff's arguments, (Dkt. 25 at 7-9), Synaptek's contacts with California do not come close to approximating physical presence or rendering it at home in California, Schwarzenegger ,
However, Synaptek is subject to specific jurisdiction in California. It purposefully directed activities aimed at California: it intentionally hired employees in California, sent materials and supplies to those employees in California, and directed additional employees to travel to and work in California to provide services at VA medical centers in California. (Dkt. 25 Exs. 6, 7, 8, 9;
*985Washington Shoe Co. v. A-Z Sporting Goods Inc. ,
The next requirement is that the claims at issue "arise[ ] out of or relate[ ] to the defendant's forum-related activities." Picot ,
As Synoptek has satisfied the first two elements, the burden now shifts to Synaptek to "set forth a compelling case that the exercise of jurisdiction would not be reasonable." CollegeSource, Inc. ,
Synaptek has not set forth a compelling case that exercise of jurisdiction would be unreasonable. Even though work was primarily done at VA medical facilities in California, (Mot. at 9), as discussed above, that does not negate Synaptek purposefully injecting itself into California's affairs. Likewise, litigation in California is inherently somewhat burdensome on corporations based elsewhere; if Synaptek's purported burden (having its corporate leaders travel away from the corporate headquarters), (id. at 10), sufficed to preclude jurisdiction, specific jurisdiction would never exist and companies would only be able to be sued in their principal *986place of business. Sovereignty is neutral as there is no conflict between Virginia and California in this case. (See
B. Venue
Synaptek argues that this case should be dismissed for improper venue or, in the alternative, transferred to the Eastern District of Virginia. (Mot. at 12-17.) Once venue is challenged, the plaintiff bears the burden of showing that venue is proper. Piedmont Label Co. v. Sun Garden Packing Co. ,
Venue is governed by 28 U.S.C. 1391. Under that statute, venue is proper in a judicial district in which Synaptek resides.
Even given proper venue in this district, a "district court has discretion to transfer a civil action "for the convenience of parties and witnesses, in the interest of justice," to "any other district or division where it might have been brought."
As Synaptek is a Virginia corporation and the decision to service the California VA medical centers was made there, (Jinnah Decl. ¶¶ 2-3, 17), this federal question case could have been brought in the Eastern District of Virginia. Regarding the convenience of the parties and witnesses, and the interests of justice, a court may consider several factors in determining whether the interests of justice favor transfer, including: "(1) the location where the relevant agreements were negotiated and executed, (2) the state that is most familiar with the governing law, (3) the *987plaintiff's choice of forum, (4) the respective parties' contacts with the forum, (5) the contacts relating to the plaintiff's cause of action in the chosen forum, (6) the differences in the costs of litigation in the two forums, (7) the availability of compulsory process to compel attendance of unwilling non-party witnesses, and (8) the ease of access to sources of proof," in addition to the relevant public policy of the forum state. Jones v. GNC Franchising, Inc. ,
Synaptek has not met its burden of demonstrating that transfer is appropriate. Even though Synaptek is located in Virginia, Synoptek is located in California, so the convenience to the parties, the convenience to the witnesses, the availability of compulsory process, and the location of the evidence is neutral. As the claims here are based substantially on federal law, neither state is more familiar with the governing law and that factor is neutral. The parties' contacts with the respective forums counsels against transfer as Synaptek directed its activities to California and Synoptek is based in this district, (Dkt. 25-1 ¶ 4), while there is no evidence that Synoptek has contacts with the Eastern District of Virginia. Plaintiff's choice of forum in California also counsels against transfer. Contacts relating to Synoptek's cause of action slightly weigh toward transfer, as the decision to use the name Synaptek, to hire California employees, and to direct employees to California was made in the Eastern District of Virginia, while the actual alleged infringement occurred, inter alia , in this district. Finally, the costs of litigation are likely slightly higher in this district than in the Eastern District of Virginia due to this district's heavier caseload. However, given that this district is the busiest district court in the nation, (see Mot. Ex. A), the Court declines to weigh this factor heavily as it would always counsel for transfer. When all these factors are considered, Synaptek has not met its burden: the majority of factors are neutral, two factors weakly support transfer and two strongly support rejecting transfer. The Court accordingly declines to transfer this action to the Eastern District of Virginia.
IV. CONCLUSION
For the foregoing reasons, Synaptek's motion to dismiss for lack of personal jurisdiction, to dismiss for improper venue, and in the alternative to transfer venue to the Eastern District of Virginia is DENIED.
Having read and considered the papers presented by the parties, the Court finds this matter appropriate for disposition without a hearing. See Fed. R. Civ. P. 78 ; Local Rule 7-15. Accordingly, the hearing set for March 20, 2017, at 1:30 p.m. is hereby vacated and off calendar.
Reference
- Full Case Name
- SYNOPTEK, LLC v. SYNAPTEK CORPORATION
- Cited By
- 3 cases
- Status
- Published