Marchionda v. Embassy Suites, Inc.
Marchionda v. Embassy Suites, Inc.
Opinion of the Court
ORDER DISMISSING DEFENDANTS’ MOTIONS TO DISMISS WITHOUT PREJUDICE AND PERMITTING PLAINTIFF TO SEEK LIMITED JURISDICTIONAL DISCOVERY
This matter comes before the Court by way of Defendants’
The events giving rise to this litigation occurred exclusively at ‘ the Embassy
All- Defendants now move to dismiss Plaintiffs Complaint on the grounds that their contacts with this forum prove insufficient for this New Jersey federal Court to obtain general or specific personal jurisdiction over them. (See, e.g., Embassy/Hilton Defs.’ Br. at 10-12, 14-21; Ham-mons Def. Br. at 3-5.).
Sufficient jurisdictional contacts arise in two forms: general and specific. Daimler AG v. Bauman, — U.S. -, 134 S.Ct. 746, 754, 187 L.Ed.2d 624 (2014). General jurisdiction, on one hand, generally requires that the defendant’s contacts be “so ‘continuous and systematic’ as to render them essentially at home in the forum State'.” ’ Id. For that reason, a deféndant’s “place of incorporation and principal place of business” constitute the paradigmatic bases for finding a corporate defendant “at home.” Id. In order to trigger general jurisdiction in locations other than these places, the defendant’s “operations” must prove “ ‘so substantial and of such a nature as to render the corporation’ ” essentially at home within the relevant state. Otsuka Pharm. Co., Ltd. v. Mylan Inc., 106 F.Supp.3d 456, 465, 2015 WL 1305764, at *7 (D.N.J. Mar. 23, 2015) (quoting Daimler, 134 S.Ct. at 754). Specific jurisdiction, on the other hand, requires that the suit “ ‘arise out of or relate to the defendant’s [specific] contacts with the forum.’ ” Daimler, 134 S.Ct. at 754 (quoting Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414 n. 8, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984)).
Plaintiffs Complaint in this instance makes plain that New Jersey does not constitute the place of incorporation and/or the principal place of business for any Defendant. (See generally Compl. .at ¶¶ 5-40.) Indeed, Plaintiffs own Complaint readily acknowledges that each Defendant qualifies as an out-of-state corporation (and identifies their out-of-state places of incorporation and principal business). (See generally id.) Plaintiff nevertheless alleges -that each Defendant “engages in substantial business in the State of New Jersey and [otherwise] has significant contacts with New Jersey.” (Id. at ¶¶ 6, 10, 14,18, 22, 26, 30, 34, 38.).
In the pending motions, however, Defendants state that they have not directed activities towards New Jersey, nor have they otherwise availed themselves of this forum. (See Embassy/Hilton Defs.’ Br. at 10-12, 14-21; Hammons Def.’s Br. at 3-5.) Defendants have further bolstered these jurisdictional assertions with affidavits from corporate officers, with each stating that the relevant Defendant lacks any jurisdiction — conferring contacts within this District. (See, e.g., Wilcox Aff. (concerning Hilton Worldwide, Inc., Hilton Worldwide Holdings, Inc., Embassy Suites Management, LLC,' Embassy Suites Franchise, LLC, and Embassy Suites, Inc.); Groves Aff. (concerning John Q. Hammons Hotels,
The Court of Appeals for the Third Circuit directs district courts to permit “jurisdictional discovery” unless the plaintiffs jurisdictional claims appear “ ‘clearly frivolous.’ ” Toys “R” Us, Inc. v. Step Two, S.A., 318 F.3d 446, 456 (3d Cir. 2003) (quoting Massachusetts School of Law at Andover, Inc. v. American Bar Ass’n, 107 F.3d 1026, 1042 (3d Cir. 1997)). Indeed, if “a plaintiff presents factual allegations that suggest ‘with reasonable particularity’ the possible existence of the requisite ‘contacts between [the party] and the forum state,’ the plaintiffs right to conduct jurisdictional discovery [must] be sustained.” Id. (internal citation omitted). Jurisdictional discovery should not, however, serve as “a fishing expedition” .into the underlying merits, all while “under the guise of jurisdictional discovery.” LaSala v. Marfin Popular Bank Public Co., Ltd., 410 Fed.Appx. 474, 478 (3d Cir. 2011).
Based upon the record developed thus far, the Court has serious doubts concerning whether any amount of discovery would demonstrate a basis for this New Jersey federal court tó exercise personal jurisdiction over the Defendants, particularly because this action appears to stem entirely from out-of-state conduct of seemingly out-of-state entities. (See generally Compl.) Even more, Plaintiffs allegations concerning the substantiality of Defendants’ contacts with this forum are, at least in part, entirely conclusory. Indeed, Plaintiff - simply states, with little detail, that each Defendant “engages in substantial business in the- State of New Jersey and [otherwise] has significant contacts with New Jersey.” (Compl. at 6, 10, 14, 18, 22, 26, 30, 34, 38.)
Nevertheless, as alleged in Plaintiffs Complaint, this action involves a maze of well-known and large corporate entities, with numerous corporate forms, and operations wide in scope.
Therefore, the Court finds a limited period of jurisdictional discovery appropriate prior to addressing Defendants’ jurisdictional challenges. [See ■generally Docket Items 7 & 9.] The Court will not, however, allow unfettered discovery, nor will it per
IT IS this 12th day of August, 2015 hereby
ORDERED that Defendants’ motions to dismiss for lack of personal jurisdiction [Docket Items 7 & 9] shall be, and hereby are, DISMISSED WITHOUT PREJUDICE, with the right to refile upon completion of jurisdictional discovery relative to Defendants’ contacts with this forum; and it is further
ORDERED that Plaintiffs motion for an extension of time [Docket Item 14] shall be, and hereby is, DISMISSED , AS MOOT; and it is further
•ORDERED that the jurisdictional discovery set forth herein shall be completed by no later than September 30, 2015; and it is further
ORDERED that any discovery disputes shall be directed to the Honorable Karen M. Williams, U.S. Magistrate Judge..
. A single counsel represents Embassy Suites, Inc., Embassy Suites Franchise, LLC, Embassy Suites Management, LLC, Hilton' Worldwide, Inc., Hilton Worldwide Holdings, Inc., Hammons, Inc,, John Q. Hammons Hotels, Inc., John Q. Hammons Hotels Management, LLC, Atrium TRS III, LP (hereinafter, the "Embassy/Hilton Defendants”),' while a separate counsel represents Hammons, Inc. (hereinafter, the "Hammons Defendant”). The Embassy/Hilton Defendants state that two of Embassy entities identified by Plaintiff's Complaint, Embassy Suites Franchise, LLC and Embassy Suites, Inc., have merged out of existence aiid/or never constituted an actual legal entity. (Wilcox Aff. at 7, 9.) This issue, however, has no impact on this Order. ¡
. On July 31,.2015, Plaintiff moved for an extension of time to file opposition to Defendants’ motions, pending the Court’s resolution of Plaintiff’s request for jurisdictional discovery. [See Docket Item 14.] ■ Because the Court .will dismiss Defendants’ motions without prejudice and will permit a limited period of jurisdictional discovery, Plaintiffs motion for an extension of time will be dismissed as moot. ¡
. Counsel for Plaintiffs July 14, '2015 letter states that counsel for the Embassy/Hilton Defendants initially agreed to a period for ■ jurisdictional discovery, but later changed his position after consulting with his clients. [See Docket Item 10.].
. This period for jurisdictional discovery will also allow counsel to confer and come to agreement about which defendant entities are necessary parties and which others can be voluntarily dismissed, thus limiting the scope of jurisdictional discovery to the remaining defendants and possibly speeding resolution of the case. Counsel for plaintiff and for defendants are strongly encouraged to do so now.
Reference
- Full Case Name
- Cheri MARCHIONDA v. EMBASSY SUITES, INC., Embassy Suites Franchise, LLC, Embassy Suites Management, LLC, Hilton Worldwide, Inc., Hilton Worldwide Holdings, Inc., Hammons, Inc., John Q. Hammons Hotels, Inc., John Q. Hammons Hotels Management, LLC, Atrium TRS III, LP, and John Doe Corporations, 1-10
- Cited By
- 16 cases
- Status
- Published