Ferdaws Amiri et al v. Dyncorp et al
Filing
48
ORDER transferring case to the Eastern District of Virginia, Alexandria Division. Defendants' motion to dismiss or transfer venue 33 is GRANTED. The case management conference set for February 20, 2015 is VACATED. Signed by Judge Samuel Conti on January 13, 2015. (sclc2, COURT STAFF) (Filed on 1/13/2015)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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FERDAWS AMIRI, ILYAS YONISI
Plaintiffs,
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For the Northern District of California
United States District Court
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v.
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DYNCORP INTERNATIONAL, INC., et
al.
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Defendants.
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Case No. 14-CV-03333 SC
ORDER TRANSFERRING VENUE TO
THE EASTERN DISTRICT OF
VIRGINIA
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I.
21
INTRODUCTION
Now before the Court is Defendants DynCorp International Inc.
22
("DII"), DynCorp International LLC ("DI LLC"), Worldwide Recruiting
23
and Staffing Services LLC, and DTS Aviation Services, LLC's1
24
(collectively, "Defendants" or "DynCorp") motion to dismiss
25
Plaintiffs Ferdaws Amiri and Ilyas Yonisi's second amended
26
27
28
1
DTS Aviation Services, LLC was erroneously sued as "DynCorp
Aviation Services, Inc." ECF No. 35 ("French Decl.") at ¶ 9. For
simplicity the Court will refer to the Defendant by its correct
name, or "DTS" for short.
1
complaint ("SAC"), ECF No. 22, for lack of personal jurisdiction
2
and improper venue.
3
ECF No. 40 ("Opp'n"), and Defendants filed a reply.
4
("Reply").
5
argument under Civil Local Rule 7-1(b).
6
below, the motion is GRANTED and the Court DIRECTS the clerk to
7
transfer the action to the Eastern District of Virginia, Alexandria
8
Division pursuant to 28 U.S.C. Section 1406(a).
ECF No. 32 ("Mot.").
The motion is opposed,
ECF No. 42
The motion is appropriate for resolution without oral
For the reasons set forth
9
United States District Court
For the Northern District of California
10
11
II.
BACKGROUND
This is a personal injury case alleging claims for battery,
12
assault, and various forms of negligence that arose from a car
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accident in Afghanistan.
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Plaintiffs worked for a company called AECOM Government
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Services as military contractors, and were in Afghanistan to
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participate in human intelligence gathering in support of United
17
States military operations.
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worldwide activities, Defendants provide an array of military
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contracting services including transportation, security, training,
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advising, and mentoring for the Afghan National Police.
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Among many other nationwide and
Plaintiffs allege that, while driving military informants from
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Camp Phoenix (a military installation in Kabul maintained by the
23
United States Army) two DynCorp vehicles driven by DynCorp
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employees repeatedly tried to run Plaintiffs off the road.
25
Plaintiffs' vehicle was struck several times, and both Plaintiffs
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suffered serious injuries as a result.
27
contend that DynCorp was aware of other similar acts by its drivers
28
2
Furthermore, Plaintiffs
1
but, rather than attempt to prevent such conduct, encouraged its
2
employees to act aggressively.
3
Plaintiffs are citizens of California.
DII is incorporated in
is organized in Delaware with its principal place of business in
6
Virginia, and is wholly owned by DII.
7
("DTS Aviation") is organized in Nevada with its principal place of
8
business in Texas, and DI LLC is its sole member.
9
Recruiting and Staffing Services LLC ("Worldwide") is organized in
10
United States District Court
Delaware with its principal place of business in Virginia.
5
For the Northern District of California
4
DI LLC
Delaware with its principal place of business in Texas, and DI LLC
11
is its sole member.
DTS Aviation Services, LLC
Worldwide
12
Now Defendants move to dismiss under Rules 12(b)(2) and
13
12(b)(3) of the Federal Rules of Civil Procedure, arguing that the
14
Court lacks personal jurisdiction over Defendants and that venue is
15
improper in this district.
Plaintiffs oppose.
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III. LEGAL STANDARD
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A.
19
Under Rule 12(b)(2) of the Federal Rules of Civil Procedure,
20
defendants may move to dismiss for lack of personal jurisdiction.
21
Plaintiffs bear the burden of showing that the Court has personal
22
jurisdiction over Defendants.
23
F.3d 1151, 1154 (9th Cir. 2006).
24
that the plaintiff make only a prima facie showing of
25
jurisdictional facts to withstand the motion to dismiss."
26
(quotations omitted).
27
favor of the plaintiff . . . ."
28
Personal Jurisdiction
See Pebble Beach Co. v. Caddy, 453
"[T]his demonstration requires
Id.
"[T]he court resolves all disputed facts in
Id. (quotations omitted).
The Court follows state law in determining the bounds of
3
1
personal jurisdiction.
2
(2014).
3
limits of federal due process.
4
Co., 374 F.3d 797, 800-01 (9th Cir. 2004).
5
nonresident's physical presence within the territorial jurisdiction
6
of the court is not required, the nonresident generally must have
7
'certain minimum contacts . . . such that the maintenance of the
8
suit does not offend traditional notions of fair play and
9
substantial justice.'"
United States District Court
For the Northern District of California
10
11
Walden v. Fiore, 134 S. Ct. 1115, 1121
California's long-arm statute is coextensive with the
Schwarzenegger v. Fred Martin Motor
"Although a
Walden, 134 S. Ct. at 1121 (quoting Int'l
Shoe Co. v. Washington, 326 U.S. 310, 316 (1945)).
If a defendant has sufficient minimum contacts with the
12
relevant forum, personal jurisdiction may be founded on either
13
general jurisdiction or specific jurisdiction.
14
L.P. v. Toeppen, 141 F.3d 1316, 1320 (9th Cir. 1998).
15
in this case rely solely on general jurisdiction.
16
jurisdiction exists only when the defendant's contacts "'are so
17
continuous and systematic as to render [it] essentially at home in
18
the forum state.'"
19
(2014) (quoting Goodyear Dunlop Tires Operations, S.A. v. Brown,
20
131 S. Ct. 2846, 2851 (2011)) (internal quotation marks omitted).
Panavision Int'l,
Plaintiffs
General
Daimler AG v. Bauman, 134 S. Ct. 746, 752
21
B.
Venue
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Federal Rule of Civil Procedure 12(b)(3) allows a defendant to
23
move to dismiss an action for improper venue.
On a Rule 12(b)(3)
24
motion, "the pleadings need not be accepted as true, and the court
25
may consider facts outside of the pleadings," but the court must
26
draw all reasonable inferences and resolve all factual conflicts in
27
favor of the non-moving party.
28
362 F.3d 1133, 1137 (9th Cir. 2004).
Murphy v. Schneider Nat'l, Inc.,
4
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2
3
III. DISCUSSION
Plaintiffs do not argue that the Court may exercise specific
4
jurisdiction over Defendants.
5
jurisdiction here is founded on general jurisdiction.
6
Additionally, Plaintiffs allege venue is proper in this district
7
solely on the basis of the Court's personal jurisdiction over
8
Defendants.
9
judicial district in which any defendant is subject to the court's
United States District Court
For the Northern District of California
10
11
12
Instead, they argue that personal
See 28 U.S.C. 1391(b)(3) (providing for venue in "any
personal jurisdiction . . .").
Because the Court concludes it lacks personal jurisdiction
over Defendants, the Court finds venue improper as well.
13
A.
Personal Jurisdiction
14
In order to exercise general (sometimes called "all-purpose")
15
jurisdiction over Defendants, the Court must conclude that
16
Defendants have "certain minimum contacts with [California] such
17
that the maintenance of the suit does not offend 'traditional
18
notions of fair play and substantial justice.'"
19
U.S. at 316 (quoting Milliken v. Meyer, 311 U.S. 457, 463 (1940)).
20
Even if Plaintiffs can satisfy that test, the exercise of general
21
jurisdiction also requires a showing that Defendants' contacts with
22
California are "'so continuous and systematic as to render
23
[Defendants] essentially at home'" in California.
24
Ct. at 760 (quoting Goodyear, 131 S. Ct. at 2851) (internal
25
quotation marks omitted).
26
home in the forum [s]tate," a company must be "comparable to a
27
domestic enterprise in that State."
28
Int'l Shoe, 326
Daimler, 134 S.
In other words, to be "essentially at
Id. at 758 n.11.
Some have called this the "home-state test," and outside a
5
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corporation's place of incorporation or principal place of business
2
it is rarely satisfied.
3
Test for General Personal Jurisdiction, 68 Vand. L. Rev. En Banc
4
81, 83 (2013).
5
these two forums -- the place of incorporation and principal place
6
of business -- the "paradigm all-purpose forums . . . ."
7
134 S. Ct. at 760; Goodyear, 131 S. Ct. at 2853-54.
8
the Supreme Court did not restrict general jurisdiction to only
9
those two forums.
See Howard M. Erichson, The Home-State
In two recent cases, the Supreme Court has termed
Daimler,
Nonetheless,
Instead, the Court pointed out "that in an
United States District Court
For the Northern District of California
10
exceptional case . . . a corporation's operations in a forum other
11
than its formal place of incorporation or principal place of
12
business may be so substantial and of such a nature as to render
13
the corporation at home in that state."
14
(citing Perkins v. Benguet Consolidated Mining Co., 342 U.S. 437
15
(1952)).
16
is, its treatment of Perkins v. Benguet Consolidated Mining Co.,
17
342 U.S. 437 (1952), indicates the bar for such a finding is very
18
high.
19
Daimler, at 761 n.19
While the Court did not define what an "exceptional case"
In Perkins, the defendant was a corporation organized under
20
the laws of the Philippines.
During the Japanese occupation in
21
World War II, the defendant's president moved to Ohio where he
22
maintained an office, the company's files, and organized the
23
company's activities.
24
in Ohio on a claim that had no connection to Ohio.
25
Nevertheless, the Supreme Court held that exercising general
26
jurisdiction over the defendant was appropriate because "Ohio was
27
the corporation's principal, if temporary, place of business."
28
Keeton v. Hustler Magazine, Inc., 465 U.S. 770, 780, n.11 (1984).
Id. at 448.
6
The plaintiff sued the company
Id. at 438.
1
"This presumably is the type of situation that [Daimler] envisioned
2
as the 'exceptional case' in which a defendant's affiliations with
3
the forum are 'comparable' to those of a domestic company."
4
M. Trammell, A Tale of Two Jurisdictions, 68 Vand. L. Rev.
5
(forthcoming 2015) at 20, available at:
6
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2417040 (last
7
accessed January 9, 2015).
8
cases there will be no occasion to explore whether a Perkins-type
9
exception might apply" because the Supreme Court's analysis in
Alan
Yet "in the overwhelming majority of
United States District Court
For the Northern District of California
10
Daimler focused almost exclusively on the paradigmatic bases for
11
general jurisdiction -- the corporation's place of incorporation
12
and principal place of business.
13
at 761)).
14
Id. (citing Daimler, 134 S. Ct.
None of the paradigmatic bases for general jurisdiction are
15
present in this case.
16
California, and none have their principal place of business here.
17
Accordingly, Plaintiffs must show that this is the kind of
18
"exceptional case" in which Defendants' operations in California
19
are "so substantial and of such a nature as to render [Defendants]
20
at home in" California.
21
Defendants are not incorporated in
Daimler, 134 S. Ct. at 761 n.19.
Plaintiffs argue that five sets of contacts between Defendants
22
and California are sufficient to create general jurisdiction: (1)
23
DI LLC's contracts to do business with NASA at Edwards Air Force
24
Base in Edwards, California, (2) DI LLC's contract to do aircraft
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maintenance for the Marine Corps in Miramar, California, (3) DII's
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contract with the State of California to fight wildfires, (4) two
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aircraft maintenance facilities owned or operated by DII or DI LLC
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in Redding and Ukiah, California, and (5) DI LLC's 239 employees in
7
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2
California.
As a preliminary matter, Defendants take issue with some of
3
these factual allegations.
While these factual issues ultimately
4
do not affect the outcome (the Court lacks personal jurisdiction
5
regardless), the Court pauses to address them.
6
For instance, Plaintiffs argue that DII's contacts with
7
California are sufficient to render it at home here because (1) it
8
has a contract with CalFire, a state agency, to fight wildfires,
9
and (2) DII or its subsidiaries operate two aircraft maintenance
United States District Court
For the Northern District of California
10
facilities in the state.
Defendants do not dispute the particulars
11
of the CalFire contract, which was in place in one form or another
12
since 2001, was the subject of a $137.7 million extension in 2008,
13
includes responsibility for wildfire prevention and control for 30
14
million acres of state land, and involved 7,550 flight hours by
15
DynCorp pilots in 2007 alone.
16
several declarations, the CalFire contract is actually between
17
DynCorp International LLC, not DynCorp International, Inc.
18
same declarations aver that DII is not registered to do business in
19
California, has no registered agent in California, and has no
20
employees, contracts, or facilities in California.
21
("French Decl.") at ¶¶ 3-6; 37 ("Castillo Decl.") at ¶ 3.
22
Plaintiffs ignore these declarations, instead resting on the
23
allegations in their complaint and the declaration of one of their
24
attorneys attaching various documents located during Internet
25
searches.
26
documents is a press release indicating that DII has the contract
27
with CalFire, and two entries from yp.com, the internet version of
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the Yellow Pages, showing DynCorp locations in Redding and Ukiah.
Instead, as Defendants point out in
See ECF No. 40-2 ("Flores Decl.") Ex. A.
8
Those
See ECF Nos. 35
Among those
1
2
Id. at 1-7.
Defendants complain that "Plaintiffs contend that a press
3
release has the same force and effect, and in fact, should be
4
deemed more reliable than declaration [sic] submitted to this court
5
under penalty of perjury."
6
Rule 12(b)(2) motion, the Court must resolve factual disputes in
7
Plaintiffs' favor.
8
"[w]hen a defendant provides affidavits to support a Rule 12(b)(2)
9
motion, the plaintiff may not simply rest on the allegations of the
Reply at 4.
But for the purposes of a
See Pebble Beach, 453 F.3d at 1154.
True,
United States District Court
For the Northern District of California
10
complaint."
11
(3d ed.); see also Mavrix Photo, Inc. v. Brand Techs., Inc., 647
12
F.3d 1218, 1223 (9th Cir. 2011), however that is not what happened
13
with these allegations.
14
exceedingly weak in light of Defendants' substantial submissions,
15
because the Court did not hold an evidentiary hearing, the Court
16
must treat Plaintiffs' allegations about the CalFire contract and
17
Redding and Ukiah locations as true for the purpose of the motion.
18
Harris Rutsky & Co. Ins. Servs., Inc. v. Bell & Clements Ltd., 328
19
F.3d 1122, 1129 (9th Cir. 2003).
20
Wright & Miller, 4 Fed. Prac. & Proc. Civ. § 1067.6
Even if Plaintiffs' declaration appears
This is not true, however, of several of the unsupported
21
allegations in Plaintiffs' complaint.
22
contend that DII is the parent company of the various DynCorp
23
entities and "controls and is involved in the contracts and
24
decision making for doing business that DynCorp International LLC
25
and other entities has in California . . . ."
26
Plaintiffs' view "[t]his has been pleaded in the Complaint and is
27
sufficient to subject DynCorp International Inc[.] to jurisdiction
28
in California as it is the principal of its agent DynCorp
9
For example, Plaintiffs
Opp'n at 9.
In
1
International LLC and the other DynCorp defendants."
Id. (citing
2
Daimler, 134 S. Ct. at 760 for the proposition that "the Supreme
3
Court assumed the contacts of the subsidiary could be imputed to
4
the parent").
5
Plaintiffs' sole basis for this factual conclusion is the
6
allegations in their Complaint.
7
in their declarations, DII is not the managing member of any of the
8
other DynCorp entities and "makes no decisions as it has no
9
employees."
Tabling Plaintiffs' legal conclusion for the moment,
However, as Defendants point out
Reply at 4 (citing French Decl. ¶¶ 8, 10, 14).
United States District Court
For the Northern District of California
10
Instead, DII is the sole member of DI LLC which, in turn, is the
11
sole member of DTS Aviation and Worldwide.
12
declarations contradict Plaintiffs' unsupported allegation that DII
13
has been registered with the California Secretary of State to do
14
business in the state since 1946.
15
Decl. ¶ 4.
16
contradicted by affidavit," the Court "may not assume the[ir]
17
truth . . . ."
18
v. Sys. Tech. Assocs., Inc., 557 F.2d 1280, 1284 (9th Cir. 1977))
19
(quotation marks omitted).
20
Similarly, Defendants'
Compare Compl. ¶ 13, with French
Because these are "allegations in a pleading [that] are
Marvix, 647 F.3d at 1223 (quoting Data Disc., Inc.
As a result, the relevant contacts are as follows.
DII's
21
contacts are limited to the CalFire contract and the Ukiah and
22
Redding addresses.
23
between $46.6 million and $176.9 million (depending on whether NASA
24
exercises certain options) for aircraft maintenance and support
25
split between four facilities, one of which is located in
26
California (Edwards Air Force Base), (2) a $9,643,087 contract with
27
the Marine Corps with 16 percent of the work to be performed at the
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Marine Corps Air Station Miramar, California, (3) 239 employees who
DI LLC has (1) a contract with NASA worth
10
1
reside in California, and (4) registration with the Secretary of
2
State to do business in California.
3
California on its website, which lists positions with DynCorp
4
entities worldwide.
5
between DTS Aviation Services LLC and California, however,
6
Plaintiffs do allege that DTS (and the other DynCorp entities) is
7
an agent or alter ego of the other Defendants.
Worldwide posts jobs in
Plaintiffs do not allege any direct contacts
8
Considering the DynCorp entities' activities "in their
9
entirety, nationwide and worldwide," none of the DynCorp entities
United States District Court
For the Northern District of California
10
can be deemed "at home" in California.
11
n.20.
12
review two recent cases, Daimler and a subsequent Ninth Circuit
13
case, Martinez v. Aero Caribbean, 764 F.3d 1062 (9th Cir. 2014),
14
both of which found contacts between corporate defendants and
15
California insufficient to satisfy the home-state test.
16
Daimler, 134 S. Ct. at 762
Nonetheless, to understand that conclusion it is helpful to
First, in Daimler, the Supreme Court held that the California
17
activities of Daimler's subsidiary, Mercedes-Benz USA, LLC
18
("MBUSA"), were insufficient to subject Daimler to general
19
jurisdiction in California.
20
Delaware corporation with its principal place of business in New
21
Jersey had multiple facilities in California, was "the largest
22
supplier of luxury vehicles to the California market," with
23
California sales accounting for 2.4% of Daimler's worldwide sales.
24
Id. at 752.
25
both that MBUSA would be subject to general jurisdiction and that
26
MBUSA's contacts with California could be imputed to Daimler, the
27
Court nonetheless held that Daimler's contacts were insufficient
28
"to render [it] essentially at home" in California.
134 S. Ct. at 750-51.
MBUSA, a
While the Supreme Court assumed (without deciding)
11
Id. at 751.
1
Instead, the Court emphasized that general jurisdiction is
2
available against corporate defendants outside a corporation's
3
place of incorporation and principal place of business in only
4
"exceptional case[s] . . . ."
5
Id. at 760-61 & n.19.
Second, after Daimler, the Ninth Circuit rejected an attempt
6
to assert general jurisdiction against a foreign corporation in
7
California.
8
jurisdiction against ATR, a French company, based on several
9
hundred million dollars of contracts to sell aircraft and
In Martinez, the plaintiffs alleged general
United States District Court
For the Northern District of California
10
components in California, sending company representatives to
11
California for business purposes, an unaffiliated entity's use of
12
ATR's aircraft for flights in California, and advertisements in
13
publications distributed in California.
14
heavily in Daimler, Judge Fletcher wrote that these contacts were
15
"plainly insufficient to subject ATR to general jurisdiction in
16
California."
17
was organized and had its principal place of business in France,
18
had no offices, staff, or other physical presence in California,
19
was not licensed to do business in California, and its California
20
contacts were minor compared to its worldwide activities.
21
Id.
764 F.3d at 1071.
Relying
Specifically, the Ninth Circuit noted that ATR
Id.
In light of these cases it is easy to conclude that DTS
22
Aviation and Worldwide are not "at home" in California.
23
aside the possibility of jurisdiction based on an agency or alter
24
ego theory (which the Court will address later), Plaintiffs allege
25
no contacts at all between DTS Aviation and California.
26
do allege contacts between Worldwide and California stemming from
27
Worldwide's website, which lists jobs available in California,
28
however, that is not sufficient either.
12
Setting
Plaintiffs
Worldwide provides
1
staffing and recruiting services for all the DynCorp entities
2
worldwide, not simply or predominantly in California.
3
"in their entirety" Worldwide's California activities are at best a
4
small part of a much larger, worldwide business, and fall far short
5
of the high bar for exercising general jurisdiction.
6
otherwise would leave Worldwide subject to suit in any state in
7
which it operates -- a result that runs directly contrary to
8
Daimler.
9
render jurisdiction "presumably . . . available in every other
United States District Court
For the Northern District of California
10
When viewed
Concluding
See 134 S. Ct. at 761-62 (rejecting a theory that would
State in which [an entities'] sales are sizeable").
General jurisdiction is also inappropriate as to DII or DI
11
12
LLC.
First, while DII has two addresses in California, the Supreme
13
Court has signaled that the existence of local offices or real
14
property "should not attract heavy reliance today."
15
S. Ct. at 761 n.18.
16
result of the shift from the territorial view of jurisdiction,
17
embodied in Pennoyer v. Neff, 95 U.S. 714 (1877), to today's more
18
flexible view.
19
locations as well as DII's CalFire contract and DI LLC's NASA and
20
Marine Corps contracts and California employees in light of DII and
21
DI LLC's "activities in their entirety, nationwide and worldwide,"
22
it is clear neither is "at home" in California.
23
instance, the most recent amendment to Form S-4 filed by DII stated
24
that it had "approximately 89 active contracts and approximately
25
128 active task orders," with ordinary contracts ranging "from
26
three to ten years."2
Daimler, 134
The reason to discount local offices is a
Daimler, at 754-55 & n.18.
Moreover, viewing those
Id. at n.20.
For
Similarly, DI LLC's California contracts
27
28
2
See Delta Tucker Holdings, Inc. & DynCorp International, Inc.,
Am. No. 1 to Form S-4 (filed June 3, 2011). The Court takes
13
1
"together equate to approximately 1% of worldwide revenues," ECF
2
No. 36 ("Hille Decl.") at ¶ 2, and just 239 of its 13,350 worldwide
3
employees work in California, none of whom are corporate officers.
4
Castillo Decl. ¶ 5-7.
5
enough to subject DI LLC to suit for causes of action having
6
nothing to do with those contracts (or even the forum state), then
7
DI LLC would presumably be amenable to suit in all 33 states in
8
which it operates.
9
similar theory in Daimler when it said "[s]uch exorbitant exercises
If a few isolated government contracts were
See id. at ¶ 5.
The Supreme Court rejected a
United States District Court
For the Northern District of California
10
of all-purpose jurisdiction would scarcely permit out-of-state
11
defendants to structure their primary conduct with some minimum
12
assurance as to where that conduct will and will not render them
13
liable to suit."
14
omitted); see also United States ex rel. Imco Gen. Const., Inc. v.
15
Ins. Co of Pa., No. C14-0752RSL, 2014 WL 4364854, at *3 (W.D. Wash.
16
Sept. 3, 2014).
17
DI LLC's "California contacts are minor compared to [their] other
18
worldwide contacts," neither can be properly deemed "at home" in
19
California.
20
134 S. Ct. at 761-62 (internal quotation marks
As a result, the Court finds that because DII and
Martinez, 764 F.3d at 1070.
Nor are Plaintiffs' agency or alter ego allegations sufficient
21
to provide jurisdiction over Defendants.
The Ninth Circuit's
22
approach to determining personal jurisdiction based on agency or
23
alter ego is in flux after the Supreme Court's decision in Daimler.
24
See Donald Earl Childress III, General Jurisdiction after Bauman,
25
66 Vand. L. Rev. En Banc 197, 199 (2014) ("The Court appears to be
26
calling into doubt whether a subsidiary's contacts can ever be
27
28
judicial notice of this filing. See In re Netflix, Inc., Sec.
Litig., 923 F. Supp. 2d 1214, 1218 n.1 (N.D. Cal. 2013).
14
1
imputed to establish general jurisdiction . . . ."); see also
2
Daimler, 134 S. Ct. at 759 n.13 (pointing out that even though
3
agency relationships are relevant to specific jurisdiction, "[i]t
4
does not inevitably follow, however, that similar reasoning applies
5
to general jurisdiction") (emphasis in original).
6
Before Daimler, under Ninth Circuit law a court could impute a
7
subsidiary's contacts with the forum to the parent if one of two
8
tests was satisfied.
9
unity of interest and ownership that the separate personalities of
The first test asks whether "there is such
United States District Court
For the Northern District of California
10
the two entities no longer exists and . . . that failure to
11
disregard their separate identities would result in fraud or
12
injustice."
13
(alterations omitted) (quoting Am. Tele. & Telegraph Co. v.
14
Compagnie Bruxelles Lambert, 94 F.3d 586, 591 (9th Cir. 1996)).
15
other words, are the entities alter egos?
16
which the Ninth Circuit called the agency test, required "a showing
17
that the subsidiary functions as the parent corporation's
18
representative in that it performs services that are sufficiently
19
important to the foreign corporation that if it did not have a
20
representative perform them, the corporation's own officials would
21
undertake to perform substantially similar services."
22
The Supreme Court took issue with this second test, pointing out
23
that it "stacks the deck," and "will always yield a pro-
24
jurisdiction answer" because "'[a]nything a corporation does
25
through a[] . . .
26
corporation would do by other means if the . . . subsidiary . . .
27
did not exist.'"
28
DaimlerChrysler Corp., 676 F.3d 774, 777 (9th Cir. 2011)
Doe v. Unocal Corp., 248 F.3d 915, 926 (9th Cir. 2001)
In
The second approach,
Id. at 928.
subsidiary . . . is presumably something the
Daimler, 134 S. Ct. at 759 (quoting Bauman v.
15
1
(O'Scannlain, J., dissenting from denial of rehearing en banc))
2
(internal quotation marks omitted).
3
Here the Court need not decide whether DI LLC or the other
4
DynCorp entities' contacts with California can be imputed to DII or
5
if Defendants are all alter egos of one another.
6
the sake of argument that Defendants are all alter egos of one
7
another and their California contacts can be imputed to one
8
another, those contacts still fall far short of showing that this
9
is an "exceptional case" where any of the DynCorp entities is at
United States District Court
For the Northern District of California
10
home in California.
11
light of DynCorp's substantial worldwide and nationwide activities,
12
render it "at home" virtually everywhere it operates.
13
corporation that operates in many places can scarcely be deemed at
14
home in all of them."
15
agency/alter ego theory or standing alone, Defendants' contacts are
16
simply insufficient to render them answerable for all claims in
17
California.
18
general jurisdiction would be appropriate here, and Defendants
19
motion is GRANTED.
20
21
1.
Id. at n.19.
Even assuming for
Concluding otherwise would, in
Id. at n.20.
But "[a]
Here, whether based on an
As a result, Plaintiffs have not shown the exercise of
Jurisdictional Discovery and Leave to Amend
In the alternative, Plaintiffs seek jurisdictional discovery
22
or leave to amend their complaint to allege additional
23
jurisdictional facts.
24
"Discovery may be appropriately granted where pertinent facts
25
bearing on the question of jurisdiction are controverted or where a
26
more satisfactory showing of the facts is necessary."
27
Hansing, 539 F.3d 1011, 1020 (9th Cir. 2008) (quoting Data Disc.,
28
557 F.2d at 1285 n.1)).
Boschetto v.
However, "[w]here a plaintiff's claim of
16
bare allegations in the face of specific denials made by the
3
defendants, the Court need not permit even limited discovery."
4
Pebble Beach, 453 F.3d at 1160 (quoting Terracom v. Valley Nat'l
5
Bank, 49 F.3d 555, 562 (9th Cir. 1995)).
6
[sic] seeking jurisdictional discovery must provide some basis to
7
believe that discovery will lead to relevant evidence providing a
8
basis for the exercise of personal jurisdiction," and courts have
9
discretion to "deny requests based 'on little more than a hunch
10
United States District Court
personal jurisdiction appears to be both attenuated and based on
2
For the Northern District of California
1
that [discovery] might yield jurisdictionally relevant facts.'"
11
Pfister v. Selling Source, LLC, 931 F. Supp. 2d 1109, 1118 (D. Nev.
12
2013) (quoting Boschetto, 539 F.3d at 1020).
13
"To this end, plaintiff's
Here, Plaintiffs suggest that jurisdictional discovery is
14
appropriate because there is "possible confusion" over Defendants'
15
corporate structure.
16
all the contacts Plaintiffs have identified can be imputed to DII,
17
that is still insufficient to permit the Court to exercise general
18
jurisdiction over DII or the other Defendants.
19
Plaintiffs' discovering more about Defendants' corporate structure
20
is highly unlikely to yield jurisdictionally relevant facts.
21
Plaintiffs also request discovery into "the specific nature of
22
[Defendants'] business in California," but this is also
23
insufficient because it is based on nothing more than a hunch that
24
additional discovery might yield additional contacts.
25
14; see also Boschetto at 1020.
26
found potentially relevant jurisdictional facts through
27
jurisdictional discovery, there is no basis aside from speculation
28
for concluding those facts would render this the kind of
However, as the Court found earlier, even if
As a result,
Opp'n at 13-
Furthermore, even if Plaintiffs
17
1
"exceptional case" in which exercising general jurisdiction outside
2
the paradigm all-purpose forums is appropriate.
3
S. Ct. at 761 n.19.
4
See Daimler, 134
Because the Court finds, as discussed further below, that
5
transferring the action, rather than dismissing it, is the
6
appropriate course of action, the Court declines to dismiss the
7
action.
8
argument about leave to amend.
9
United States District Court
For the Northern District of California
10
As a result, there is no need to address Plaintiffs'
B.
Venue
Additionally, the Court finds venue is improper in this
11
District.
12
on 28 U.S.C. Section 1391(b)(3), which provides for venue in "any
13
judicial district in which any defendant is subject to the court's
14
personal jurisdiction" when "there is no district in which an
15
action may otherwise be brought."
16
that none of the Defendants is subject to the Court's personal
17
jurisdiction, venue is clearly improper under this subsection.
18
Pfister, 931 F. Supp. 2d at 1120.
19
other subsections of Section 1391(b) can be satisfied because none
20
of the Defendants reside in this District, and the events at issue
21
did not take place here.
22
Accordingly, Defendants' Rule 12(b)(3) motion is GRANTED.
23
Plaintiffs allege venue is proper in this District based
Id.
Because the Court finds
See
Similarly, neither of the two
See 28 U.S.C. § 1391(b)(1)-(2).
Anticipating this conclusion, Plaintiffs urge the Court to
24
transfer the case to a proper venue rather than dismiss the action,
25
pointing out that their claims might be time-barred if the Court
26
dismisses the action.
27
to cure venue defects "in the interest of justice" by transferring
28
the case "to any district or division in which it could have been
28 U.S.C. Section 1406(a) permits the Court
18
1
brought" rather than dismissing the action.
2
recognized, "[a] compelling reason for transfer is that the
3
plaintiff, whose case if transferred . . . will be time-barred if
4
his case is dismissed and thus has to be filed anew in the right
5
court."
6
(Posner, J.).
7
rather than dismissing the action is in the interests of justice.3
Phillips v. Seiter, 173 F.3d 609, 610 (7th Cir. 1999)
As a result, the Court finds that transferring
Defendants concede personal jurisdiction exists in Virginia
8
9
As other courts have
and argue that venue is proper there as well.
However, Defendants
United States District Court
For the Northern District of California
10
do not specify which of Virginia's two districts, the Eastern and
11
Western Districts, would be proper.
12
it appears that DynCorp global headquarters is located at 1700 Old
13
Meadow Road, McLean, Virginia 22102.
14
Contact, http://www.dyn-intl.com/about-di/contact/ (last accessed
15
January 12, 2015).
16
falls within the Eastern District of Virginia, Alexandria Division.
17
E.D. Va. Local Civ. R. 3(B)(1).
18
Clerk to transfer this action there.
19
///
20
///
21
///
22
///
23
///
24
///
25
///
26
///
27
3
28
Based on the Court's research,
See DynCorp International,
McLean is in Fairfax County, and therefore
Accordingly, the Court DIRECTS the
The Court notes that it has the authority to transfer venue even
when it lacks personal jurisdiction over Defendants. See Goldlawr,
Inc. v. Heiman, 369 U.S. 463, 466 (1962).
19
1
2
V.
CONCLUSION
For the reasons set forth above, the Court finds the exercise
3
of general jurisdiction is inappropriate here and venue does not
4
lie in this District.
5
the Court DIRECTS the clerk to transfer the action to the Eastern
6
District of Virginia, Alexandria Division, for all further
7
proceedings.
Accordingly, in the interests of justice,
8
9
IT IS SO ORDERED.
United States District Court
For the Northern District of California
10
11
12
Dated: January 13, 2015
UNITED STATES DISTRICT JUDGE
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
20
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