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Magna Powertrain De Mexico S.A. De C.V. v. Momentive Performance Materials USA LLC

Citations: 192 F. Supp. 3d 824; 2016 U.S. Dist. LEXIS 92504; 2016 WL 3574652Docket: Case Number 16-11249

Court: District Court, E.D. Michigan; June 16, 2016; Federal District Court

Narrative Opinion Summary

The case involves a breach of warranty claim by a Mexican subsidiary of an American corporation against Momentive Performance Materials USA, LLC regarding a defective silicon sealant manufactured in New York. The plaintiff argued for personal jurisdiction in Michigan based on the defendant's business registration and activities in the state. However, the court found that such registration does not establish general personal jurisdiction under Michigan law, and the plaintiff's claims were unrelated to the defendant's Michigan activities, failing to establish specific jurisdiction. The court noted that the plaintiff did not meet its burden of demonstrating the court's authority over the defendant, as required under Federal Rule of Civil Procedure 12(b)(2). Consequently, the court granted the defendant's motion to dismiss in part and ordered the transfer of the case to the United States District Court for the Northern District of New York, where the defendant is headquartered, to ensure appropriate jurisdiction and judicial efficiency.

Legal Issues Addressed

Burden of Proof in Personal Jurisdiction Challenges

Application: The plaintiff bears the burden of proving the court's jurisdiction over the defendant by providing specific facts through affidavits or supporting documents.

Reasoning: In the context of a motion to challenge personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2), the burden lies with the plaintiff to prove the court's authority over the defendant.

General Personal Jurisdiction under Michigan Law

Application: The court determined that mere registration to do business in Michigan does not confer general personal jurisdiction over a foreign corporation under Michigan law.

Reasoning: The plaintiff argued that personal jurisdiction existed due to the defendant's registration to do business in Michigan and appointment of an agent for service of process. However, the court found that mere registration does not confer general personal jurisdiction under Michigan law.

Specific Personal Jurisdiction and Minimum Contacts

Application: The court found that the plaintiff's cause of action was unrelated to the defendant's activities in Michigan, thus failing the criteria for specific personal jurisdiction.

Reasoning: The court also addressed the plaintiff's claim for specific jurisdiction, determining that the cause of action was unrelated to any activities of the defendant in Michigan.

Transfer of Venue for Lack of Personal Jurisdiction

Application: The court opted to transfer the case to the Northern District of New York, where the defendant is based, instead of dismissing it, to ensure justice and efficiency.

Reasoning: Given that the defendant is based in the Northern District of New York and can be sued there, the court concluded that while it lacked personal jurisdiction over the defendant, transferring the case, rather than dismissing it, was more appropriate to ensure justice and efficiency in adjudication.