Adams et al v. BRG Sports, Inc. et al
Filing
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ORDER (1) GRANTING PARTIES' STIPULATION TO TRANSFER ACTION TO THE U.S. DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS AS TO DEFENDANTS BRG SPORTS AND RIDDELL; (2) GRANTING 67 STIPULATION TO DISMISS DEFENDANT ALL AMERICAN SPORTS CORPORATION WITHOUT PREJUDICE; (3) TERMINATING AS MOOT PENDING MOTIONS 30 31 32 52 WITHOUT PREJUDICE. Signed by Judge Beth Labson Freeman on 11/21/2017. (blflc2S, COURT STAFF) (Filed on 11/21/2017)
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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SAN JOSE DIVISION
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Case No. 17-cv-00457-BLF
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ORDER:
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(1) DISMISSING DEFENDANT ALL
AMERICAN SPORTS CORPORATION
WITHOUT PREJUDICE ON IN
PERSONAM JURISDICTION
GROUNDS;
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MARK ADAMS, ET AL.,
Plaintiffs,
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United States District Court
Northern District of California
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v.
BRG SPORTS, INC., et al.,
Defendants.
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(2) TRANSFERRING ACTION TO THE
U.S. DISTRICT COURT FOR THE
NORTHERN DISTRICT OF ILLINOIS
AS TO DEFENDANT BRG SPORTS,
INC. PURSUANT TO 28 U.S.C. § 1406
AND AS TO DEFENDANT RIDDELL,
INC. PURSUANT TO § 1631;
(3) TERMINATING AS MOOT
PENDING MOTIONS AT ECF 30, 31, 32,
52 WITHOUT PREJUDICE
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In the wake of the media firestorm that has rocked the sport of football surrounding the
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long term effects of concussions, thirty-four former college football players from around the
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country have filed a products liability action against the companies involved in the manufacturing,
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marketing, and sales of the helmets they wore. These college football players (the “Players”)
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allege that Riddell, Inc., BRG Sports, Inc., and All American Sports Corporation (collectively,
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“Defendants”) are liable for their negligent manufacturing of football helmets over a thirty-year
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period including their failure to warn players of the risks of brain injuries. See Complaint, ECF 1.
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The Players chose to bring this action in the Northern District of California, but here’s the catch:
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none of the Players currently reside or ever played football in California, and none of their injuries
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occurred in California. In fact, none of the three defendant companies sued by the Players is
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incorporated or headquartered in California.
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Defendants filed a motion to dismiss the Complaint for failure to state a claim, ECF 30, as
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well as a motion to dismiss for lack of personal jurisdiction with respect to Defendants Riddell and
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All American Sports, ECF 32. Defendants also moved to sever the Players’ claims into thirty-four
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distinct lawsuits. See ECF 31. The Players opposed all of these motions, and filed a motion to
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amend their complaint. See ECF 52.
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The Court held a hearing on these pending motions on October 5, 2017. After an extensive
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discussion at the hearing, while the matters were under submission, the Players informed the Court
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of their plan to resolve a number of the issues raised in Defendants’ motions. See ECF 61.
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Importantly, the Players stated their intent to dismiss All American Sports from this action
entirely, and to seek a transfer of the remaining claims against Riddell and BRG Sports to the
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United States District Court
Northern District of California
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United States District Court for the Northern District of Illinois.
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The Court held a further status conference on November 9, 2017. At that time, the Parties
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informed the Court that they would stipulate to a dismissal of All American Sports without
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prejudice on in personam jurisdiction grounds. The Parties further stipulated to a transfer of the
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claims against Riddell and BRG Sports to the Northern District of Illinois.
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At the status conference, although the Players indicated a willingness to amend their
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Complaint to conform to this Court’s tentative ruling at the hearing, the Defendants requested a
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formal ruling on their motion to dismiss pursuant to Rule 12(b)(6). The Court finds that it would
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be improper to issue a formal ruling on Defendants’ motion to dismiss in light of the Parties’
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stipulated transfer, which, at the Defendants’ specific request, is based on lack of personal
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jurisdiction over Riddell, and based on improper venue with respect to BRG Sports. Nevertheless,
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the following order lays out the Court’s reasoning on Defendants’ motion to dismiss, and
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GRANTS the Parties’ stipulated request to transfer this action to the United States District Court
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for the Northern District of Illinois.
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I.
BACKGROUND
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Plaintiffs in this action consist of thirty-four former collegiate athletes (the “Players”) who
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played football at different colleges and universities at different times over the course of decades.
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See Compl. ¶ 20, ECF 1. The Players allege that they all suffer from “several symptoms
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indicative of long-term brain and neurocognitive injuries.” Id. At all relevant times, the Players
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allege that they “wore Riddell helmets” that Defendants were in the business of “selling,
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manufacturing, designing, testing, engineering, marketing, modifying, assembling, inspecting,
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distributing, and controlling.” Id. ¶¶ 20, 70. Because the Players suffered concussions and other
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symptoms of brain injuries despite wearing Defendants’ allegedly defective helmets, they brought
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this products liability action against BRG Sports, Inc. (“BRG Sports”), Riddell, Inc. (“Riddell”),
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and All American Sports Corporation (“All American”) for negligence, design defects, and failure
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to warn of the danger and risks associated with concussions. See generally Compl.
Specifically, the Players seek to hold Defendants liable for breaching their duties to
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properly educate their helmet users of the long-term damages resulting from helmet use, as well as
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United States District Court
Northern District of California
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their failure to mitigate injuries associated with the foreseeable use of their products, and failure to
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provide adequate warnings to their helmet users. Id. ¶¶ 16, 118, 123, 127. The Complaint contains
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allegations that the Players have suffered permanent injuries or remain at an elevated risk for
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injuries and latent brain damage as a result of Defendants’ conduct. Id. ¶ 2. These serious
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neurocognitive injuries include “memory loss, dementia, depression, and CTE and its related
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symptoms.” Id. ¶¶ 20, 175.
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In their Complaint, the Players lay out a comprehensive background on concussions and
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brain injuries, including a “primer on concussions” as well as a detailed history of football helmet
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design. See, e.g., Compl. at 7-20. The Complaint also includes a thorough history of Defendant
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Riddell’s business, and its role in developing the helmets at issue as well as its various marketing
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campaigns over the years. Id. at 20-30. However, as further discussed below, the only information
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about the Players themselves is contained in a list of their names in the case caption and an
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incomplete list of the colleges and universities where they played football, which are not tied to a
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specific player or time period. Importantly, the Complaint does not include the years or locations
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where each Player played football or wore Riddell helmets, or any salient facts regarding their
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football careers and injuries they sustained.
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II.
MOTION TO DISMISS FOR FAILURE TO STATE A CLAIM
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The Parties stipulated to a dismissal of Defendant All American Sports Corporation on
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November 14, 2017. See ECF 67. The Court hereby GRANTS the Parties’ stipulation to dismiss
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All American on in personam jurisdiction grounds. Therefore, the Court’s comments regarding
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Defendants’ 12(b)(6) motion to dismiss are addressed only with respect to Defendants Riddell and
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BRG Sports.
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At the outset, the Court notes that it would be improper to issue a formal ruling on
Defendants’ 12(b)(6) motion to dismiss because it is inconsistent with the Parties’ stipulated
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request to transfer this action to the Northern District of Illinois for lack of personal jurisdiction
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over Riddell, and for improper venue with respect to BRG Sports. See ECF 65 at 3. However,
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United States District Court
Northern District of California
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because Defendants have requested a more formal summary of this Court’s determination
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regarding the deficiencies it identified in the Players’ Complaint, the Court summarizes its
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comments from the hearing on Defendants’ 12(b)(6) motion to dismiss which was held on October
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5, 2017.
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The Court reviewed the Players’ Complaint and the briefing on Defendants’ motion to
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dismiss as well as the relevant law. On October 5, 2017, the Court advised counsel for the Players
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at the hearing of the deficiencies that would need to be cured should this action stay with this
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Court. In particular, the Court noted that there is a complete lack of information about each of the
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Players in the Complaint aside from their names and a general list of where they played college
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football that is not tied to particular Players. Thus, the Court found that the pleadings were
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primarily insufficient because the Complaint fails to provide Defendants with adequate notice of
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the specific claims against them by the individual plaintiffs.
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Federal Rule of Civil Procedure 8(a) states that “[a] pleading which sets forth a claim for
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relief…shall contain…a short and plain statement of the claim showing that the pleader is entitled
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to relief.” As explained above, the Complaint is full of information about the history of
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concussions and Defendants’ involvement in the manufacturing, sales and marketing of football
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helmets generally. However, the lawsuit ultimately seeks relief on behalf of individual plaintiffs.
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There is simply not enough information in the Complaint regarding each Player’s use of the
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products in question during what time period, or the nature of his injuries that would be required
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in order to put Defendants on notice of the allegations against them. See Bell Atlantic Corp. v.
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Twombly, 550 U.S. 544, 555 (2007) (holding that the purpose of Rule 8(a)(2) is to “give the
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defendant fair notice of what the…claim is and the grounds upon which it rests.”). Rule 8 notice
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pleading “demands more than an unadorned, the-defendant-unlawfully-harmed-me accusation.”
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Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009).
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As explained at the hearing, this Court finds persuasive the Ninth Circuit’s reasoning in
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Bautista v. Los Angeles Cty., 216 F.3d 837, 840–41 (9th Cir. 2000). The Ninth Circuit held that in
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order to comply with Rule 8, “each plaintiff must plead a short and plain statement of the elements
of his or her claim, identifying the transaction or occurrence giving rise to the claim and the
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United States District Court
Northern District of California
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elements of the prima facie case.” Id. at 840. The reasoning from Bautista applies here because
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each football player’s use of the helmet and his distinct injuries are based on a separate transaction
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or occurrence, which is “properly stated in a separate count.” Id. Therefore, if this action were to
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remain in this District, the Court would have granted Defendants’ 12(b)(6) motion to dismiss and
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required an amended complaint that included a separate count for each Player. This approach
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would facilitate a clear presentation of the issues, and allow Defendants to prepare their
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appropriate defenses or a fully-informed severance request.
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In Bautista, the Ninth Circuit went on to explain that “[s]eparate counts will be required if
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necessary to enable the defendant to frame a responsive pleading or to enable the court and the
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other parties to understand the claims.” Id. The instant case is a textbook example of an action
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where each individual player’s claims arise out of a distinct set of facts, and separate statements
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will facilitate a clear presentation of the issues. Id. at 841 (citing 5 wright & Miller, Federal
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Practice And Procedure: Civil 2d § 1324). As written, the Complaint does very little to inform
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pre-trial proceedings. Bautista, 216 F.3d at 841 (citing Anderson v. District Bd. of Trustees, 77
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F.3d 364, 367 (11th Cir.1996) (“Experience teaches that, unless cases are pled clearly and
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precisely, issues are not joined, discovery is not controlled, the trial court’s docket becomes
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unmanageable, the litigants suffer, and society loses confidence in the court’s ability to administer
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justice.”).
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For example, the Players’ cause of action for failure to warn is not limited in time and
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appears to be identically alleged by each Player. See generally Compl. Given that the Players
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played football at different times in different states spanning back as early as 1981, it is highly
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unlikely that each Player has an identical failure to warn and design defect claim against
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Defendants. See also Erone Corp. v. Skouras Theatres Corp., 19 F.R.D. 299, 300 (S.D.N.Y.
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1956) (directing filing of an amended complaint stating the claims of each plaintiff in a separate
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count, among other reasons because “there may be defenses available to the defendants which are
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applicable to one or more plaintiffs but not to the others”).
The Court also indicated to counsel at the hearing that the Complaint was deficient and a
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re-pleading was necessary to separate the specific allegations against Riddell from those against
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United States District Court
Northern District of California
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BRG Sports. As written, the theories of liability and the relevant allegations against each
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Defendant are not clear in the Complaint. At the very least, the Court would be looking for
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separate factual allegations as to each of the Defendants and what their role was in the alleged
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injuries of each Player. The fact that the Court reviewed the Complaint and the role of each
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Defendant remains unclear is a sign of deficient pleading.
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At the October 5, 2017, the Players acknowledged this Court’s instructions and agreed that
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they would need to, at a minimum, plead a separate cause of action for each Player that included
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information such as their schools, positions, injuries and dates of play. See ECF 57 at 59:6
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(“Hearing Transcript”); see also ECF 61 at 1 (Letter from counsel for the Players indicating that
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they will “replead each of their claims with more particularity, specifically addressing the
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shortcomings raised by the Court during the October 5 hearing”). Although Defendants requested
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a formal ruling from this Court granting their motion to dismiss on these grounds, the Court finds
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that ruling on Defendants’ 12(b)(6) motion is improper and inconsistent with Defendants’
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requested transfer of this case to the Northern District of Illinois pursuant to 28 U.S.C. § 1406
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(BRG Sports) and 28 U.S.C. § 1631 (Riddell).
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III.
STIPULATON TO TRANSFER VENUE
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The Parties stipulated to transfer venue in this case, and requested an order from this Court
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transferring this action to the United States District Court for the Northern District of Illinois
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where both of the remaining Defendants Riddell and BRG Sports are headquartered. See ECF 65
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at 3 (the “Stipulation”). The Parties agreed in their Joint Case Management Statement and at the
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Status Conference held on November 9, 2017 that the transfer as to BRG Sports would be
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pursuant to 28 U.S.C. § 1406 on the grounds that venue is improper in the Northern District of
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California. Because Riddell contests this Court’s personal jurisdiction over it, the Parties
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stipulated that transfer as to Riddell would be pursuant to 28 U.S.C. § 1631. See Stipulation at 3.
A.
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United States District Court
Northern District of California
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Transfer Pursuant to § 1406(a) as to BRG Sports
In their filings with the Court and at the status conference on November 9, 2017, the
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Parties stipulated to transfer venue pursuant to § 1406 with respect to BRG Sports for improper
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venue. Defendants explained that although personal jurisdiction existed over BRG Sports in
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California at the time that this action was filed—or Defendants did not challenge such
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jurisdiction—venue is nevertheless improper in the Northern District of California. Defendants
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explained that BRG Sports has moved its principal place of business from Southern California to
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Illinois, such that it is now located in the same state as its co-defendant and subsidiary, Riddell.
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See Hearing Transcript 25:11-16; 62:4-16. Thus, this action has no plaintiff or defendant with any
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connection to the Northern District of California – or to California at all.
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A district court may transfer venue of any civil case to another district court where the
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action could have been brought “for the convenience of the parties and witnesses, in the interest of
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justice .” 28 U.S.C. § 1404(a). Pursuant to 28 U.S.C. § 1406(a), “[t]he district court of a district in
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which is filed a case laying venue in the wrong division or district shall dismiss, or if it be in the
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interest of justice, transfer such case to any district or division in which it could have been
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brought.” As such, Section 1406(a) is predicated upon whether or not venue is “improper” in the
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forum in which the case was brought. In the interest of justice, a federal court may transfer a case
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filed in the wrong district to the correct district. See, 28 U.S.C. § 1406(a). Even if the Court
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determines that venue is proper, it may transfer for the convenience of parties and witnesses. 28
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U.S.C. § 1404(a).
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At the November 9, 2017 status conference, the Parties stipulated that venue is improper in
this District with respect to BRG Sports and that the action should be transferred pursuant to
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§ 1406. The Court finds that this action could have been brought in the Northern District of
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Illinois because BRG Sports now has its principal place of business in the Northern District of
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Illinois and is subject to general personal jurisdiction in Illinois with respect to the Players’ claims.
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The Court also finds that transferring this action to the Northern District of Illinois will serve the
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convenience of the parties and witnesses and promote the interests of justice because BRG Sports
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and its associated witnesses will experience serious inconvenience and substantial cost to litigate
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United States District Court
Northern District of California
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this action in California, a state with virtually no connection to the series of events underlying the
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Players’ claims and no current connection to the plaintiffs or the defendants in this action.
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Additionally, Illinois has a much stronger interest in the resolution of this action compared
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to the interests of California, because both of the Defendants are headquartered in the Northern
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District of Illinois and conduct substantial business in that district. BRG’s previous presence in
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California appears to be the only factor in this entire case that would favor a venue in California,
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and venue would still be improper in this District in particular. The fact that the parties have
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stipulated to the transfer further underscores the appropriateness of an inter-district transfer.
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Because the Court finds that venue is improper in this district with respect to BRG Sports,
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that the action could have been brought in the Northern District of Illinois against BRG Sports,
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and that transferring the action will serve the interests of justice and convenience of the parties and
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witnesses, the Court GRANTS the Parties’ stipulation to transfer this action with respect to BRG
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Sports pursuant to § 1406.
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B.
Transfer Pursuant to § 1631 as to Riddell
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The transfer analysis with respect to Defendant Riddell is straightforward. The Parties
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have stipulated to a transfer of the claims against Riddell to the Northern District of Illinois
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pursuant to 28 U.S.C. § 1631. See Stipulation at 3. Under Section 1631, if an action is brought in
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the wrong court and the court finds “that there is a want of jurisdiction,” a federal district court
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“shall, if it is in the interest of justice, transfer such action…to any other such court in which the
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action…could have been brought at the time it was filed or noticed…” 28 U.S.C. § 1631; Miller v.
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Hambrick, 905 F.2d 259, 262 (9th Cir. 1990). Generally, “transfer will be in the interest of justice
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because normally dismissal of an action that could be brought elsewhere is ‘time-consuming and
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justice-defeating.’” Id. (quoting Goldlawr, Inc. v. Heiman, 369 U.S. 463, 467 (1962)); see
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also Amity Rubberized Pen Co. v. Mkt. Quest Grp. Inc., 793 F.3d 991, 996 (9th Cir. 2015)
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(“transfer will generally be in the interest of justice, unless it is apparent that the matter to
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be transferred is frivolous or was filed in bad faith”).
Riddell initially filed a motion to dismiss for lack of personal jurisdiction, ECF 32, and the
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Players’ opposed the motion, ECF 48. The Court held a hearing on the motion to dismiss for lack
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United States District Court
Northern District of California
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of personal jurisdiction on October 5, 2017. At the hearing, the Court indicated that at least with
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respect to Riddell, this case is akin to Bristol-Myers Squibb Co. v. Superior Court of California,
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San Francisco Cty., 137 S. Ct. 1773 (2017) (“Bristol-Myers”). In Bristol-Myers, in the context of
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a mass tort action in state court, the United States Supreme Court reversed the California Supreme
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Court and held that California could not exercise specific jurisdiction over Bristol-Myers Squibb
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with respect to claims by non-residents of California who did not claim to have suffered harm in
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California. 137 S. Ct. at 1782. The Supreme Court held that the claims against the non-resident
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defendant, Bristol-Myers were missing “a connection between the forum and the specific claims at
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issue.” Id. at 1781. “When no such connection exists, specific jurisdiction is lacking regardless of
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the extent of a defendant’s unconnected activities in the State.” Id.
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This Court explained that this case also involved non-California plaintiffs who did not play
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football in California, were not injured in California, and did not buy helmets in California. See
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Hearing Transcript 25:9-10 (“There’s nothing California about it.”) At the hearing and in their
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briefing, the Players conceded that the Court could not exercise general jurisdiction over Riddell,
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but argued that specific jurisdiction existed. See, e.g., id. 13:1-5.
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After the hearing, the Players withdrew their opposition to Defendants’ motion to dismiss
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for lack of personal jurisdiction over Riddell and offered to transfer the action to a district that
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indisputably has personal jurisdiction over Riddell. See ECF 61. In order to resolve the personal
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jurisdiction defect with respect to Riddell, the Parties then stipulated to transfer the entire action
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against Riddell pursuant to 28 U.S.C. § 1631 to the Northern District of Illinois where Riddell has
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its principal place of business. See ECF 65 at 3. Of course, that is the same district where
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Riddell’s co-defendant and parent company, BRG Sports, is now headquartered.
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The Court finds that it is appropriate and serves the interests of judicial efficiency and
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economy to transfer this action to a district where both personal jurisdiction and venue are proper
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as to all Defendants. Particularly with respect to Riddell, transfer pursuant to § 1631 is proper
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because Riddell is “at home” with its principal place of business in Illinois and thus, the Northern
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District of Illinois would have personal jurisdiction over Riddell. Accordingly, the Court
GRANTS the Parties’ stipulation to transfer the action to the United States District Court for the
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United States District Court
Northern District of California
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Northern District of Illinois as to Riddell pursuant to § 1631.
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IV.
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For the foregoing reasons, IT IS HEREBY ORDERED that:
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ORDER
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on in personam jurisdiction grounds (ECF 67);
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Defendant All American Sports is DISMISSED WITHOUT PREJUDICE
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The Court GRANTS the Parties’ stipulation to transfer this action to the
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Northern District of Illinois with respect to BRG Sports pursuant to 28
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U.S.C. § 1406 and with respect to Riddell pursuant to 28 U.S.C. § 1631;
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In light of the transfer of this action to the Northern District of Illinois with respect to
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Riddell and BRG Sports, and the stipulated dismissal without prejudice of Defendant All
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American Sports, the Court TERMINATES AS MOOT the following pending motions
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WITHOUT PREJUDICE:
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1.
Defendants’ motion to dismiss the Complaint pursuant to 12(b)(6) (ECF 30)
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2.
The Players’ motion for leave to amend the Complaint (ECF 52)
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3.
Defendants’ motion to dismiss for lack of personal jurisdiction with respect
to Riddell and All American Sports (ECF 32)
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Defendants’ motion to sever the Players’ claims (ECF 31)
Disputes between the Parties regarding re-pleading and severance are properly directed to
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the transferee Court, who can exercise jurisdiction over the Parties in an appropriate venue. The
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Court DIRECTS the Clerk to TRANSFER this entire action to the United States District Court for
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the Northern District of Illinois. Upon transfer of this action, the Clerk shall close the file.
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Dated: November 21, 2017
______________________________________
BETH LABSON FREEMAN
United States District Judge
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United States District Court
Northern District of California
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