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M & M Packaging, Inc. v. Kole

Citation: 183 F. App'x 112Docket: No. 05-4510-cv

Court: Court of Appeals for the Second Circuit; June 1, 2006; Federal Appellate Court

Narrative Opinion Summary

In this case, the Plaintiff-Appellant, M. M Packaging, Inc., pursued legal action under 42 U.S.C. § 1983 and state law against Defendants-Appellees, including members of the Idaho Potato Commission and its former president, in the U.S. District Court for the Southern District of New York. The core issue revolved around the alleged violation of M. M's rights under the Lanham Act due to the Idaho Potato Commission's refusal to approve M. M’s application to use certification marks. The defendants sought dismissal primarily for lack of personal jurisdiction. The district court granted this dismissal, and the decision was appealed. As the case involved federal questions and out-of-state defendants, the court applied New York's personal jurisdiction rules, requiring M. M to establish personal jurisdiction. However, M. M failed to meet the prima facie standard for personal jurisdiction under Rule 12(b)(2), particularly under C.P.L.R. § 302(a)(3)(ii), due to the absence of allegations regarding substantial revenue derived from interstate or international commerce. The appellate court affirmed the district court's dismissal, referencing the ongoing dispute highlighted in a previous related case, thereby concluding the proceedings unfavorably for M. M Packaging, Inc.

Legal Issues Addressed

Burden of Establishing Personal Jurisdiction

Application: The plaintiff failed to meet the prima facie standard required under Rule 12(b)(2) due to insufficient allegations and lack of discovery.

Reasoning: M. M bore the burden to establish personal jurisdiction but failed to provide sufficient allegations to meet the prima facie standard required under Rule 12(b)(2) due to the absence of discovery.

Personal Jurisdiction in Federal Question Cases

Application: The court applied New York's personal jurisdiction rules to determine if jurisdiction over the out-of-state defendants was appropriate in the absence of a federal statute allowing national service of process.

Reasoning: In federal question cases involving out-of-state defendants, federal courts apply the personal jurisdiction rules of the forum state unless a federal statute provides for national service of process.

Requirements Under New York's Long Arm Statute

Application: The plaintiff's claim under C.P.L.R. § 302(a)(3)(ii) was dismissed because it failed to allege that the defendants derived substantial revenue from interstate or international commerce.

Reasoning: M. M based its jurisdictional claim solely on C.P.L.R. § 302(a)(3)(ii), which requires an allegation of substantial revenue derived from interstate or international commerce. M. M did not allege such facts, leading to the proper dismissal of the case.