KATZ v. DNC SERVICES CORPORATION et al

Filing 120

MEMORANDUM AND/OR OPINION. SIGNED BY HONORABLE C. DARNELL JONES, II ON 11/29/17. 11/29/17 ENTERED AND COPIES EMAILED TO COUNSEL.(jaa, )

IN THE UNITED STATES DISTRICT COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA
BETHANY KATZ,
Plaintiff,
v.
DNC SERVICES
CORPORATION, et al.,
Defendants.
Jones, II

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J.

CIVIL ACTION
NO. 16-5800

November 29, 2017
MEMORANDUM

Plaintiffs claim to represent a class of former campaign workers who were hired by
several state democratic parties during the 2016 presidential election. According to Plaintiffs,
these state parties colluded with the Democratic National Committee to over work and underpay
field organizers in violation of various federal and state wage laws. The out-of-state democratic
party defendants seek dismissal of the instant action on the grounds that this Court cannot
exercise personal jurisdiction over these foreign parties with no meaningful ties to the
Commonwealth. Plaintiffs retort that each defendant to this suit meaningfully contributed to the
Pennsylvania-based campaign efforts in the nationally coordinated campaign to get Hillary
Clinton elected as president. Plaintiffs further argue that the out-of-state defendants are mere
extensions of the Democratic National Committee, over which jurisdiction is proper, and as such
there is sound legal basis for requiring said defendants to defend suit in the Commonwealth. For
the reasons that follow, this Court finds that (1) it would be improper to exercise jurisdiction
over any one of the out-of-state democratic party defendants and (2) Plaintiffs fail to demonstrate
that further jurisdictional discovery would be fruitful. The claims against the Democratic Parties
of Arizona, North Carolina, Missouri, Michigan, Virginia, and Florida are dismissed for want of
personal jurisdiction.
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RELEVANT BACKGROUND
Named Plaintiffs are former field organizers who were employed by seven different state
democratic parties in the months leading up to the 2016 presidential election. (ECF No. 68, ¶¶
23.) As field organizers, Plaintiffs were responsible for completing a host of campaign related
activities, including canvassing, contacting voters telephonically and in person, and soliciting
volunteers. (ECF No. 68, ¶ 101.) Plaintiffs allege that they regularly worked upwards of twelve
hours in a day on behalf of their respective state party employers but were only paid a flat
monthly rate regardless of the total number of hours worked. (ECF No. 68, 117-128.)
Based on the foregoing, Plaintiffs filed the Second Amended Complaint on March 7,
2017, naming as defendants DNC Services Corp. – doing business as Democratic National
Committee – (“Defendant DNC”) and the state democratic parties of Pennsylvania (“Defendant
PDP”), Florida (“Defendant FDP”), Missouri (“Defendant MODP”), Virginia (“Defendant
VDP”), North Carolina (“Defendant NCDP”), Arizona (“Defendant ADP”), and Michigan
(“Defendant MIDP”). (ECF No. 68.) In the Second Amended Complaint, Plaintiffs advance
individual, class, and collective action claims against Defendants for alleged violations of the
Fair Labor Standards Act, various state wage statutes, and state common law torts. (ECF No. 68.)
Plaintiffs allege that the state party defendants conspired with one another and with Defendant
DNC to unlawfully designate Plaintiffs, and those similarly situated, as exempt employees under
the FLSA and applicable state wage statutes, thereby denying Plaintiffs full and appropriate
compensation. (ECF No. 68, ¶ 39.)
Defendants FDP, MODP, VDP, NCDP, ADP, and MIDP (collectively “Foreign
Defendants”) timely filed Motions to Dismiss the Second Amended Complaint for Lack of
Personal Jurisdiction and for Improper Venue pursuant to Federal Rules of Civil Procedure

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12(b)(2) and 12(b)(3), respectively. (ECF. Nos. 74, 75, 77.) Over Foreign Defendants’
opposition, Plaintiffs maintain that this Court may exercise personal jurisdiction over Foreign
Defendants because Defendant DNC – a corporation over which this Court undoubtedly has
jurisdiction – exercised such operational control over each Foreign Defendant so as to be
considered the alter ego thereof. (ECF No. 90, p. 11.) Plaintiffs contend that pursuant to the alter
ego theory of personal jurisdiction, this Court should exercise jurisdiction over each Foreign
Defendant because Defendant DNC is subject to the jurisdiction of this Court. (ECF No. 90, p.
11.) Plaintiffs further argue that Foreign Defendants’ participation in 2016 presidential campaign
activities constituted in-state contacts sufficient to independently support a finding of general
personal jurisdiction over each state party. (ECF No. 90, p. 7-8.)
In support of their respective Motions, Foreign Defendants submitted virtually unopposed
affidavits that collectively establish the following: (1) Foreign Defendants are neither corporate
parent nor subsidiary to any other corporate entity; (2) Foreign Defendants are each subject to
individual state and federal campaign finance requirements; (3) Foreign Defendants do not own
property, solicit business, advertise, or hire within the Commonwealth; (4) Foreign Defendants
are self-governing; and (5) Foreign Defendants did not require any plaintiff employed as a field
organizer to work within the Commonwealth as a condition of employment. (ECF No. 74, ex. 14.)
Presently before this Court are Plaintiffs’ Second Amended Complaint, Defendants ADP,
FDP, MIDP, and NCDP’s Motion to Dismiss, Defendant VDP’s Motion to Dismiss, Defendant
MODP’s Motion to Dismiss, Plaintiffs’ consolidated Response in Opposition to the
aforementioned Motions, and Defendants ADP, FDP, MIDP and NCDP’s Reply. Upon thorough

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consideration of all relevant jurisdictional facts, and for the reasons that follow, this Court grants
Foreign Defendants’ Motions to Dismiss for want of personal jurisdiction.
STANDARD OF REVIEW
Pursuant to Federal Rule of Civil Procedure 12(b)(2), a defendant may move to dismiss a
claim for lack of personal jurisdiction. Once a defendant has raised this jurisdictional defense,
the burden shifts to the plaintiff to present a prima facie case establishing jurisdiction over the
non-resident defendant in the forum. Pinker v. Roche Holdings Ltd., 292 F.3d 361, 368 (3d Cir.
2002); see also Miller Yacht Sales, Inc., v. Smith, 384 F.3d 93, 97 (3d Cir. 2004) (“[W]hen the
court does not hold an evidentiary hearing on the motion to dismiss, the plaintiff need only
establish a prima facie case of personal jurisdiction.”). A plaintiff has the burden to show, “with
reasonable particularity,” enough contact between the defendant and the forum to support the
exercise of personal jurisdiction by the forum state. Mellon Bank v. Farino, 960 F.2d 1217, 1223
(3d Cir. 1992) (internal citations omitted); see also Action Mfg. Co. v. Simon Wrecking Co., 375
F. Supp. 2d 411, 418 (E.D. Pa. 2005) (“In order to establish a prima facie case, the plaintiff must
present specific facts that would allow the court to exercise jurisdiction over the defendant.”)
(emphasis in original).
In determining the existence of personal jurisdiction, courts “must accept all of the
plaintiff’s allegations as true and construe disputed facts in favor of the plaintiff.” Pinker, 292
F.3d at 368. Once the plaintiff’s “allegations are contradicted by an opposing affidavit . . . [he or
she] must present similar evidence in support of personal jurisdiction.” In re Chocolate
Confectionary Antitrust Litig., 602 F. Supp. 2d 538, 556 (M.D. Pa. 2009). To counter opposing
affidavits, “[p]laintiffs may not repose upon their pleadings in this manner. Rather, they must
counter defendant[’s] affidavits with contrary evidence in support of purposeful availment
jurisdiction.” Id. at 559. To that end, “[t]he plaintiff must respond to the defendant’s motion
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with ‘actual proofs’; ‘affidavits which parrot and do no more than restate [the] plaintiff's
allegations . . . do not end the inquiry.’” Lionti v. Dipna, Inc., Civ. No. 17-1678, 2017 U.S. Dist.
LEXIS 98956, at *3-4 (E.D. Pa. June 27, 2017) (quoting Time Share Vacation Club v. Atl.
Resorts, Ltd., 735 F.2d 61, 66, n.9 (3d Cir. 1984); see also Lehigh Gas Wholesale, LLC v. LAP
Petro., LLC, Civ. No. 14-5536, 2015 U.S. Dist. LEXIS 36569, at *5 (E.D. Pa. Mar. 23, 2015)
(“Plaintiff carries the burden to prove personal jurisdiction using ‘affidavits or other competent
evidence.’”) (quoting Metcalfe v. Renaissance Marine, Inc., 566 F.3d 324, 330 (3d Cir. 2009));
In re Chocolate Confectionary, 602 F. Supp. 2d at 556-57 (a plaintiff must present contrary
evidence in the form of “actual proofs[.]”).
DISCUSSION
Federal courts may assert jurisdiction over a nonresident defendant to the extent
authorized by the law of the forum. See Fed. R. Civ. P. 4(k)(2). “The Pennsylvania long-arm
Statute grants jurisdiction coextensive with that permitted by the Due Process Clause of the
Fourteenth Amendment, see 42. Pa. Cons. Stat. § 5322(b), which in turn requires that
nonresident defendants ‘have certain minimum contacts with [the forum state] such that
maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’”
UHS of Del., Inc. v. United Health Servs., No. 12 -485, 2015 U.S. Dist. LEXIS 15786, *1, *10
(M.D. Pa. 2015) (citing International Shoe Co. v. Washington, 326 U.S. 310, 316 (1945)).
Personal jurisdiction may be general or specific. General jurisdiction exists when a foreign party
maintains “continuous and systematic” contacts with a state and may be sued in that state on any
claim, whereas specific jurisdiction exists when a plaintiff’s suit is related to or arises out of a
defendant’s contacts with the state. Reassure Am. Life Ins. Co. v. Midwest Res., Ltd., 721 F.
Supp. 2d 346, 353 (E.D. Pa. 2010) (internal citations omitted).

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For the reasons that follow, this Court finds that Plaintiffs fail to establish that Foreign
Defendants’ contacts with this forum, alone or in the aggregate, are sufficient to support general
or specific jurisdiction consistent with constitutional due process.
I.

General Jurisdiction
Plaintiffs’ arguments in support of general jurisdiction are two-fold. First, Plaintiffs argue

that Foreign Defendants’ respective participation in state-based campaign activities is
independently sufficient to support requiring Foreign Defendants to defend suit in this forum.
(ECF No. 90, p. 6-8.) Second, Plaintiffs’ argue that Defendant DNC has so usurped the corporate
identities of each state party defendant that Foreign Defendants should be considered mere alter
egos of Defendant DNC. (ECF No. 90, p. 10-12.) Plaintiffs urge the Court to impute Defendant
DNC’s in-state contacts to each Foreign Defendant and thereby find the exercise of general
jurisdiction consistent with constitutional requirements. (ECF No. 90, p. 11.) This Court finds
neither argument persuasive.
A.

Foreign Defendants’ In-State Contacts

In the Second Amended Complaint, Plaintiffs allege that general jurisdiction over
Foreign Defendants is properly predicated on Foreign Defendants’ involvement in various
Pennsylvania-based campaign initiatives. (ECF No. 68, ¶ 13.) In the Response in Opposition to
Defendants’ respective Motions to Dismiss, Plaintiffs focus entirely on Foreign Defendants’ –
with the exception of Defendant ADP – involvement in the Hillary Victory Fund. (ECF No. 90,
p. 6-8.) According to Plaintiffs, the Hillary Victory Fund (“HVF”) was a joint fundraising
endeavor created by Hillary for America (“HFA”), Defendant DNC, and dozens of state
democratic parties. (ECF No. 90, p. 6.) Contributors to the HVF could reportedly combine
individual donations to HFA, DNC, and each participating state party into one large lump sum

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donation, which could exceed $300,000.00 per donor. Plaintiffs report that funds received were
distributed to HFA, DNC, and each state party participant on a pro rata basis. (ECF No. 90, p. 6.)
Based on what this Court could surmise from Plaintiffs’ Response and the accompanying
exhibits, several of Foreign Defendants transferred the funds they received from HVF to
Defendant DNC, which then reallocated the funds to states that required additional campaign
resources. (ECF No. 90, p. 6); (ECF No. 90, ex. 1A – 1F.) According to Plaintiffs, in the year
preceding the 2016 presidential election, the state Democratic Party for Pennsylvania –
Defendant PDP – received over $18,000,00.00 from Defendant DNC. (ECF No. 90, p. 7.)
Plaintiffs argue that Foreign Defendants “funneled” HVF funds through Defendant DNC to
Defendant PDP, which used said funds to pay – albeit allegedly insufficiently – field organizers
and to propel Pennsylvania’s campaign efforts. (ECF No. 90, p. 7.) Plaintiffs’ primary argument
in support of general jurisdiction is this alleged indirect financial support Foreign Defendants
supplied Defendant PDP and the Pennsylvania campaign efforts at large.
The link Plaintiffs attempt to establish between Foreign Defendants and the
Commonwealth is far too attenuated to justify the exercise of jurisdiction here. First, while the
Court recognizes the fungible nature of money, Plaintiffs fail to demonstrate that they could –
even with targeted discovery – establish the exact source of the funds allocated to Defendant
PDP by Defendant DNC or quantify with any reasonable particularity the extent to which those
funds were derived from Foreign Democrats’ financial contributions. Second, even if Plaintiffs
could tie Foreign Democrats to Defendant PDP’s receipt of campaign funds, Plaintiffs provide
this Court with no reason to believe Foreign Defendants intended for their contribution to
Defendant DNC to be distributed to Defendant PDP specifically. Third and most importantly,
even if Plaintiffs could demonstrate that Foreign Defendants’ indirect payouts to Defendant PDP

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were more than incidental occurrences, these limited contacts could not establish the “at home”
connection to the Commonwealth necessary for a finding of general jurisdiction.
“General jurisdiction…calls for an appraisal of a corporation’s activities in their entirety,
nationwide and worldwide. A corporation that operates in many places can scarcely be deemed
at home in all of them. Otherwise, ‘at home’ would be synonymous with ‘doing business’ tests
framed before specific jurisdiction evolved in the United States. Nothing in International Shoe
and its progeny suggests that a ‘particular quantum of local activity’ should give a state authority
over a ‘far larger quantum of activity’ having no connection to any state activity.” Daimler AG v.
Bauman 134 S. Ct. 746, 762 n. 20 (2014) (italics in original) (internal citations omitted). There is
no basis in the record upon which this Court could reasonably find that, when considered
alongside the totality of Foreign Defendants’ nationwide contacts, the indirect financing of
Pennsylvania-based campaign efforts is sufficient to render Foreign Defendants at home in the
Commonwealth. Even Plaintiffs acknowledge that Pennsylvania was only one of the
“battleground states” to which Defendant DNC allocated Foreign Defendants’ HVF
contributions. (ECF No. 90, p. 6.) And if Plaintiffs are correct that Foreign Defendants are
merely an indistinguishable extension of Defendant DNC, Foreign Defendants’ activities are
extensive and far-reaching. The contacts alleged, even assuming all Plaintiffs’ allegations true,
are a far cry from the level of in-forum contacts necessary for general jurisdiction.
B.

Alter Ego Theory

Plaintiffs argue in the alternative that the alter ego theory supports a finding of
jurisdiction. “[A] court may exercise personal jurisdiction, consistent with the Constitution, over
a corporate entity that is the alter ego of a party over which jurisdiction is proper.” Atlantic Pier
Assocs. LLC v. Boardakan Restaurant Partners L.P., No. 08-4564, 2010 U.S. Dist. LEXIS78145

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*1, *8 (E.D. Pa. August 2, 2010) (citing Simeone ex rel. Estate of Albert Francis Simeone, Jr. v.
Bombardier-Rotax GmbH, 360 F. Supp. 2d 665, 675 (E.D. Pa. 2005)). The alter ego theory
permits a court to impute the in-forum contacts of one corporate entity to another, related
corporate entity where the plaintiff can “demonstrate that the out-of-forum corporation either
controls or is controlled by an in-forum affiliate to such a degree that the two corporations
operate as a single, amalgamated entity.” In re Chocolate Confectionary Antitrust Litig., 674 F.
Supp. 2d 580, 596 (M.D. Pa. 2009). Plaintiffs argue Foreign Defendants are the alter egos of
Defendant DNC because Defendant DNC “exercised a sufficient amount of operational control”
over each state Democratic Party. (ECF No. 68, ¶ 12.) Plaintiffs contend that jurisdiction over
Foreign Defendants should extend to the limits of that which may be lawfully exercised over
Defendant DNC.
As a preliminary matter, this Court questions the applicability of the alter ego theory to
the case at bar. There is, undisputedly, no formal corporate relationship between Defendant DNC
and any one of the Foreign Defendants. (ECF No. 74, ex. 1-4); (ECF No. 75, p. 5); (ECF No. 77,
p. 5.) And this Court’s jurisdiction over Defendant DNC is predicated entirely on Defendant
DNC’s waiver of jurisdictional challenge – not an independent judicial finding of sufficient inforum contacts. Thus, even if the Court could impute Defendant DNC’s in-state contacts to
corporate entities to which Defendant DNC is not formally related, the record before the Court
does not address the extent to which those imputed contacts would support a finding of general
jurisdiction.
Despite its reservations, this Court will proceed with a merits analysis of Plaintiffs’
argument. At least one court within this Circuit contemplated the applicability of the alter ego
theory to corporate relationships less formal than that of a parent and subsidiary. Copia

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Commc’ns, LLC v. AMResorts, L.P., No. 16-5575, 2017 U.S. Dist. LEXIS 146294 *1, *15
(E.D. Pa. September 8, 2017) (noting that while the alter ego theory “most readily applied in the
context of parent/subsidiary relationships between entities,” “the [c]ourt’s research reveals that in
some instances, the alter ego theory may apply in the context of other sorts of corporate
arrangements, so long as their operations and management are sufficiently interconnected.”).
And the Fifth Circuit has held that one corporation’s waiver could be imputed to its corporate
alter ego for the purposes of general jurisdiction. See Patin v. Thoroughbred Power Boats, 294
F.3d 640, 654 (5th Cir. 2002) (“Accordingly, we conclude that a successor corporation that is
deemed to be a “mere continuation” of its predecessor corporation can be bound by the
predecessor corporation’s voluntary submission to the personal jurisdiction of a court.”). Given
the holdings of these cases, and this early stage of pleading, this Court is unwilling to state as a
matter of law that an alter ego relationship cannot exist in an informal corporate arrangement or
that waiver cannot be imputed to an alter ego as would in-forum contacts. Ultimately, having
thoroughly reviewed both Plaintiffs’ arguments and the record, this Court finds that Defendant
DNC does not exercise the requisite level of control over Foreign Defendants day-to-day
operations to be considered the alter ego thereof. The “corporate fusion” required for a finding of
an alter ego relationship does not exist here.
The alter ego theory requires more than relatedness between the corporate entities. “The
relevant jurisdictional inquiry is whether the subsidiary and the parent 1 so operate as a single
entity or unified and cohesive and economic unit, that when the parent is within the venue of the

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For the purposes of this Opinion alone, the Court will regard all cited authority as applicable to the
corporate arrangement of the instant case, despite specific reference to parent-subsidiary corporate
families. The Court interprets “parent” as the dominant corporation – in this instance, Defendant DNC –
and “subsidiary” as the subservient corporation – in this instance the individual state democratic parties.

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court, the subsidiary is also within court’s jurisdiction; this single entity test requires that a parent
over which the court has jurisdiction so control and dominate a subsidiary as in effect to
disregard the latter’s independent corporate existence.” Genesis Bio-Pharmaceuticals, Inc. v.
Chiron Corp. 27 F. App’x 94, 98 (3d Cir. 2002) (internal citations and quotations omitted).
Pennsylvania courts consider ten discrete factors to assess the degree of control the in-forum
corporation exercises over the related foreign corporation: (1) ownership of all or most of the
stock of the subservient corporation; (2) common officers and directors; (3) a common marketing
image; (4) common use of a trademark or logo; (5) common use of employees; (6) an integrated
sales system; (7) interchange of managerial and supervisory personnel; (8) performance of
business functions by the subservient entity which the dominant corporation would normally
conduct through its own agents or departments; (9) marketing by the subservient corporation on
behalf of the dominant corporation, or as the dominant's exclusive distributor; and (10) receipt by
the officers of the subservient corporation of instruction from the dominant corporation. Radian
Guar., Inc. v. Bolen, 18 F. Supp. 3d 635, 648 (E.D. Pa. 2014).
“No one aspect of the relationship between two corporations unilaterally disposes of the
analysis, and the court may consider any evidence bearing on the corporations’ functional
interrelationship.” In re Chocolate Confectionary Antitrust Litig., 674 F. Supp. 2d at 598.
The weight of the facts presently before this Court militates against a finding of alter ego
jurisdiction. First, Defendant DNC does not own any one of Foreign Defendants, in whole or in
part, and each Foreign Defendant fulfils tax and campaign finance filing requirements as
independent entities. (ECF No. 74, ex. 1-4.) Second, by Plaintiffs’ own account, each Foreign
Defendant is “responsible for governing” the Democratic Party of its respective state and “raises
money, hires staff, and coordinates strategy to support candidates” running for local, state, and

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national office. (ECF No. 68, ¶33-38.) As Foreign Defendants are incorporated in accordance
with the laws of their respective states, are self governing, and maintain a board of directors,
there is no basis for this Court to find an abandonment of corporate structures or boundaries. See
Patsoureas v. Choice Hotels Int’l, No. 17-555, 2017 U.S. Dist. LEXIS 126161, *1, *6 (M.D. Pa.
August 9, 2017) (“If a parent and subsidiary continue to respect traditional corporate boundaries
by maintaining, for example, their own bylaws, articles of incorporation, and boards of directors,
the subsidiary will not be deemed to be the ‘alter ego’ of the parent, no matter how much control
the parent exercises.”) (internal citations omitted).
Third and most importantly, all of Plaintiffs arguments surrounding the existence of
common marketing strategies, logos, trademarks, and information databases are limited to
presidential campaign efforts, not that of state or local elections. In the Second Amended
Complaint, Plaintiffs explicitly confine their assertions of pervasive operational control by
Defendant DNC over Foreign Defendants to the “pendency of the 2016 national presidential
campaign.” (ECF No. 68, ¶ 12.) Thus, even if Plaintiffs’ arguments surrounding Defendants’
interrelatedness were supported by affidavits or other competent evidence, they would be
insufficient to establish that the control exercised by Defendant DNC pervaded Foreign
Defendant’s day-to-day operations. Foreign Defendants’ express purpose is to support
democratic candidates vying for positions not only in national office, but also at the local and
state level. Plaintiffs’ failure to address the role, if any, Defendant DNC plays in Foreign
Defendants’ affairs when a presidential election is not on the horizon is fatal to their argument. If
Defendant DNC’s control over Foreign Defendants is limited to presidential campaign efforts
that occur once every few years, there is simply no basis upon which to find an alter ego

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relationship. At best, Plaintiffs’ proffered evidence demonstrates a voluntary and informal, albeit
tangible, commitment amongst Defendants to the shared goal of electing a democratic president.
Even if this Court agreed with Plaintiffs’ assessment of the alter ego factors, it would still
decline to exercise jurisdiction over Foreign Defendants. “Even where an alter ego relationship
has been shown, personal jurisdiction must ultimately be consistent with traditional notions of
fair play and substantial justice.” Simeone v. Bombardier-Rotax GMBH, 360 F. Supp. 2d 665,
678 (E.D. Pa. 2005) (internal citations omitted). “The relationship between the defendant and the
forum must be such that it is reasonable…to require the corporation to defend the particular suit
which is brought there.” World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 292 (1980)
(quoting Int’l Shoe Co. v. Wash., 326 U.S. 310, 317 (1945)) (internal quotations omitted). The
determination of reasonableness is generally premised on consideration of several factors 2, all of
which militate against the exercise of personal jurisdiction here.
If this Court were to exercise jurisdiction over Foreign Defendants, Foreign Defendants
would be required to litigate in a forum in which they have no meaningful presence. See
Wortham v. KarstadtQuelle AG, 320 F. Supp. 2d 204, 229 (D.N.J. 2004) (finding it significantly
burdensome to require foreign defendants to litigate in the forum state where defendants had no
meaningful presence in the state). The majority of evidence relevant to each out-of-state
Plaintiff’s claims most likely exists in the Plaintiffs’ respective home states. See Id. at 230-31
(finding that neither the plaintiff’s interest nor the interstate judicial system’s interest outweighed
the defendant’s burden where plaintiff failed to identify any evidence more convenient to the
forum state). And as there is no evidence that Foreign Defendants either directed their alleged

2

These factors are: “‘the burden on the defendant,’ ‘the forum State's interest in adjudicating the dispute,’ ‘the
plaintiff's interest in obtaining convenient and effective relief,’ ‘the interstate judicial system’s interest in obtaining
the most efficient resolution of controversies,’ and the ‘shared interest of the several States in furthering
fundamental substantive social policies.’” Reassure, 721 F. Supp. 2d at 356 (citations omitted).

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tortious conduct at Pennsylvania, or meaningfully availed themselves of the benefits of
Pennsylvania laws, it cannot be reasonably said that this forum has a significant interest in
adjudicating Plaintiff’s claims. See Penco Prods. v. WEC Mfg., LLC, 974 F. Supp. 2d 740, 749
(E.D. Pa. 2013) (“A state has an interest in providing its residents with a convenient forum for
redressing injuries inflicted by out-of-state actors who purposefully derive benefit by voluntarily
contracting with an in-state actor”). For these and all foregoing reasons, it would be entirely
unreasonable to exercise jurisdiction over Foreign Defendants on the basis of the alter ego
theory.
II.

Specific Jurisdiction
The record is similarly bereft of facts that would support a finding of specific jurisdiction

over Foreign Defendants. Unlike general jurisdiction, specific jurisdiction exists only where the
plaintiff’s claims arise from the defendant’s in-state contacts, and “the relationship among the
defendant, cause of action, and the forum falls within the minimum contacts’ framework.”
Grainer v. Smallboard, Inc., No. 16-4866, 2017 U.S. Dist. LEXIS 25934, at *3 (E.D. Pa. Feb. 23,
2017) (quoting Mellon Bank PSFS, Nat'l Ass'n v. Farino, 960 F.2d 1217, 1221 (3d Cir. 1992)).
There can be no specific jurisdiction absent “some act by which [the defendant] purposely
avail[ed] [itself] of the privilege of conducting business within [Pennsylvania],” Mellon Bank,
960 F.2d at 1221, and a clear nexus between said purposeful availment and the plaintiff’s claims.
D’Jamoos v. Pilatus Aircraft Ltd., 566 F.3d 94, 102 (3d Cir. 2009) (“In determining whether
there is specific jurisdiction, we undertake a three-part inquiry. First, the defendant must have
‘purposely directed its activities at the forum.’…Second, the litigation must ‘arise out of or relate
to’ at least one of those activities.”) (internal citations omitted).

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This Court finds no act by Foreign Defendants that would constitute purposeful availment
sufficient to confer specific jurisdiction. In the Second Amended Complaint, Plaintiffs seem to
suggest Foreign Defendants’ preparation for and attendance at the 2016 Democratic National
Convention amounted to activity purposely directed at Pennsylvania. (ECF No. 68, ¶ 13.) But
“[the minimum contacts] standard ensures that a defendant will not be ha[u]led into a jurisdiction
solely as a result of ‘random,’ ‘fortuitous,’ or ‘attenuated’ contacts….” Reassure, 721 F. Supp.
2d at 353-354. Plaintiffs do not allege that Foreign Defendants in any way influenced the
decision regarding the location of the 2016 Convention, nor do Plaintiffs allege that Foreign
Defendants would have conducted in-forum activities differently had the Convention been held
in another state. Foreign Defendants’ presence in Pennsylvania during and immediately
preceding the 2016 Convention was fortuitous at best, and thus untenable as a basis for
jurisdiction. That Foreign Defendants participated in “a nationally coordinated campaign in
which a number of activities and national candidate appearances occurred within the
Commonwealth” is similarly happenstance unrelated to a deliberate decision by Foreign
Defendants to direct potentially actionable conduct at Pennsylvania.
Plaintiffs also fail to satisfy the second element of the specific jurisdiction standard,
which requires a showing that Plaintiffs’ claims arise from or relate to Foreign Defendants’ instate activities. The claims contained in the Second Amended Complaint are premised on alleged
failures to compensate field organizers for campaign-related work completed on behalf of
Plaintiffs’ respective state party employers within Plaintiffs’ respective home states. Plaintiffs do
not allege that any unpaid overtime stemmed from work conducted at the behest of Foreign
Defendants in the Commonwealth, and do not challenge the veracity of Foreign Defendants’
affidavits affirming that field organizers worked exclusively in their respective states. There is,

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thus, no reasonable basis upon which Plaintiffs could argue that their claims for unpaid wages
arose from or related to in-state activity by Foreign Defendants. Plaintiffs’ bald allegations of a
collusive scheme amongst Defendants to withhold owed wages fails to plead facts that would
connect any alleged conspiracy to Foreign Defendants’ limited contacts with Pennsylvania.
For all of the foregoing reasons, this Court finds no basis upon which to exercise specific
jurisdiction over Foreign Defendants. Plaintiffs fail to establish a prima facie case of either
general or specific jurisdiction as it relates to the foreign state Democratic Parties. Foreign
Defendants’ Motions to Dismiss the Second Amended Complaint are granted for want of
personal jurisdiction.
III.

Jurisdictional Discovery
Plaintiffs petition this Court for leave to conduct jurisdictional discovery if the Court

finds Plaintiffs unable to meet their burden to establish jurisdiction. (ECF No. 90, p. 9.) “A
plaintiff’s right to conduct jurisdictional discovery should be sustained ‘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.” Bell v. Fairmont Raffles Hotel Int’l,
No. 12-757, 2013 U.S. Dist. LEXIS 166937 *1, *20 (W.D. Pa. November 25, 2013) (citing Toys
“R” Us, Inc. v. Step Two, S.A. 318 F.3d 446, 456 (3d Cir. 2003)). “However, a trial court ‘has
discretion to refuse to grant jurisdiction[al] discovery’ and ‘may deny jurisdictional discovery
where a plaintiff has failed to meet its burden of making out a threshold prima facie case of
personal jurisdiction.’” Id. (citations omitted). This Court finds that Plaintiffs fail to satisfy their
burden and fail to demonstrate that additional discovery would bolster Plaintiffs arguments in
support of jurisdiction. This Court therefore denies Plaintiffs’ request to conduct jurisdictional
discovery.

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CONCLUSION
The record before this Court cannot support a finding of personal jurisdiction over
Foreign Defendants. Foreign Defendants’ limited activity within the Commonwealth are
insufficient for an independent finding of jurisdiction, and Plaintiffs fail to demonstrate that
Defendant DNC’s in-state contacts should be imputed to Foreign Defendants by way of the alter
ego theory of personal jurisdiction. As Plaintiffs have not made a prima facie showing of
jurisdiction, this Court finds no basis in fact or in law for subjecting Foreign Defendants to the
expense of further jurisdictional discovery. Foreign Defendants’ Motions to Dismiss are granted.
A corresponding Order follows.

BY THE COURT:

/s/ C. Darnell Jones, II
C. Darnell Jones, II

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J.