Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
02-56937
Arnold Schwarzenegger,
Plaintiff and Appellant,
vs.
James C. Martin (Cal. Bar 83719) Martin D. Singer (Cal. Bar 78166)
Denise M. Howell (Cal. Bar 149731) Charles J. Harder (Cal. Bar 184593)
Benjamin G. Shatz (Cal. Bar 160229) LAVELY & SINGER
REED SMITH CROSBY HEAFEY LLP Professional Corporation
355 South Grand Avenue, Suite 2900 2049 Century Park East, Suite 2400
Los Angeles, CA 90071 Los Angeles, CA 90067-2906
Telephone: (213) 457-8000 Telephone: (310) 556-3501
Facsimile: (213) 457-8080 Facsimile: (310) 556-3615
Page
V. ARGUMENT ..................................................................... 12
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TABLE OF CONTENTS
(continued)
Page
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TABLE OF CONTENTS
(continued)
Page
VI. CONCLUSION................................................................... 45
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TABLE OF AUTHORITIES
Page(s)
CASES
Ballard v. Savage,
65 F.3d 1495 (9th Cir. 1995) ................................................... 39, 42
Bancroft & Masters, Inc. v. Augusta National, Inc.,
223 F.3d 1082 (9th Cir. 2000) ..................................................passim
Buckeye Boiler Co. v. Superior Court,
71 Cal. 2d 893 (1969) ................................................................. 13
Burger King Corp. v. Rudzewicz,
471 U.S. 462 (1985) ............................................... 23, 39, 40, 41, 45
Calder v. Jones,
465 U.S. 783 (1984) ............................................... 30, 31, 32, 33, 35
California Software, Inc. v. Reliability Research,
631 F. Supp. 1356 (C.D. Cal. 1986) ........................... 16, 31, 32, 34, 44
Credit Lyonnais Securities (USA), Inc. v. Alcantara,
183 F.3d 151 (2nd Cir. 1999) ....................................................... 16
Cubbage v. Merchant,
744 F.2d 665 (9th Cir. 1984) ........................................................ 44
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TABLE OF AUTHORITIES
(continued)
Page(s)
Forsyth v. Overmyer,
576 F.2d 799 (9th Cir. 1978) ........................................................ 15
Freeman v. Hittle,
747 F.2d 1299 (9th Cir. 1984) .........................................................1
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TABLE OF AUTHORITIES
(continued)
Page(s)
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TABLE OF AUTHORITIES
(continued)
Page(s)
STATUTES
California
Federal
- vii -
I.
JURISDICTIONAL STATEMENT AND STANDARD OF REVIEW
-1-
only make a prima facie showing to sustain that burden. Id. In determining
whether Mr. Schwarzenegger has met this burden, the allegations in his
complaint must be taken as true, and conflicts between the facts contained in
the parties’ affidavits must be resolved in his favor. Id. Any factual findings
by the district court are reviewed for clear error. Panavision Int’l v. Toeppen,
141 F.3d 1316, 1320 (9th Cir. 1998).
II.
STATEMENT OF ISSUES ON APPEAL
Did the district court err in finding no prima facie case of general
personal jurisdiction in California over Fred Martin Motor Company, where
the record establishes substantial, ongoing, business-critical purchases from
parties within the state, in addition to various other commercial contacts?
Did the district court err in finding no prima facie case of specific
personal jurisdiction in California over Fred Martin Motor Company, where
the company purposefully availed itself of the benefits of the forum, engaged
in forum related activities that gave rise to these claims, and reasonably is
susceptible to the forum’s jurisdiction?
-2-
III.
PRELIMINARY STATEMENT
Those who have had access to motion pictures and television for
the last quarter century will be immediately familiar with the profession and
work of Arnold Schwarzenegger. Because Mr. Schwarzenegger’s name,
image and other attributes are instantly recognizable, they are of considerable
commercial value both to Mr. Schwarzenegger and to anyone he grants
permission for their use. In light of the popularity of Mr. Schwarzenegger’s
films, two particularly valuable aspects of his publicity rights are his
photograph and references to the movies that have helped make him a
household name.
-3-
his name and photograph in a newspaper advertising campaign intended to
further FMMC’s business of selling cars.
-4-
publicity laws, including Civil Code Section 3344, and providing residents
with a fair, convenient and effective forum. For all of these reasons, this
Court should reverse the order granting FMMC’s motion to dismiss.
IV.
FACTUAL AND PROCEDURAL BACKGROUND
-5-
Terminator 3: Rise of the Machines (scheduled for release July 2003). Taking
advantage of Mr. Schwarzenegger’s popularity and recognizable “Terminator”
visage for its own commercial ends, on at least five separate occasions in
April, 2002, FMMC used Mr. Schwarzenegger’s name and photograph in
advertising with the text: “Arnold says: ‘Terminate EARLY at Fred
Martin!’” (i.e., encouraging owners of leased cars to end their leases before
the contractual expiration date). (ER I:7-8) Specifically, these full-page print
advertisements appeared in the Akron Beacon Journal newspaper on April 7,
13, 18, 21 and 25, 2002. (ER I:6, II:349-53)
-6-
B. Mr. Schwarzenegger Sues Fred Martin Motor Co. In California For
Misappropriating His Name And Likeness
1
The complaint also named FMMC’s advertising agency, Zimmerman &
Partners Advertising, Inc. (Zimmerman), a Florida corporation that does not
dispute its amenability to California jurisdiction. Zimmerman is not a party to
this appeal.
2
The other causes of action include violation of the right of publicity, unfair
competition, quantum valebant, unjust enrichment, and injunctive relief. (ER
I:6-14)
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FMMC removed the action to federal court (the Central District
of California) on diversity of citizenship grounds (i.e., plaintiff
Schwarzenegger is a California citizen, and defendant FMMC is an Ohio
citizen). (ER I:1-2)
3
While FMMC submitted a carefully worded declaration in support of its
motion in support of its position that “no” California contacts existed, that
declaration plainly failed to tell the whole story. (ER I:35-36) Subseqent
discovery—some produced two months after its due date, after the depositions
of FMMC’s witnesses and on the eve of the hearing on the motion—disclosed
a host of jurisdictionally significant contacts, as detailed below. (ER II:397-
660)
-8-
• FMMC purchases vehicles from, and has purchasing
agreements with, Nissan, Suzuki, Daewoo, and Isuzu—all
California corporations;
• For each Nissan, Suzuki and Daewoo vehicle, FMMC has paid
a separate vehicle invoice listing a California address for each
payee;
-9-
I:64-85, 87-97, 101-11, 126-27, 130-34, 137, 140-41, 170-76,
182, 268; II:298-321, 322-42, 343, 344-48, 349-53, 396-97,
426, 444-45 468, 476, 527; III:622a)
4
This eleventh hour production also confirmed that the volume of FMMC’s
purchases was higher than FMMC previously had represented: 3,304 vehicles
for a total of $62,160,503 between May, 1999 and November, 2002, not
2,670 for a total of approximately $53,400,000, as originally disclosed.
(ER II:400)
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D. The District Court Dismisses The Action Against FMMC On
Personal Jurisdiction Grounds And Mr. Schwarzenegger Appeals
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V.
ARGUMENT
5
California will assert personal jurisdiction over a foreign defendant on any
basis consistent with the state and federal constitutions. Cal. Civ. Code
§410.10.
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jurisdiction], if he be not present within the
territory of the forum, he have certain minimum
contacts with it such that the maintenance of the
suit does not offend “traditional notions of fair
play and substantial justice.” International Shoe,
326 U.S. at 316.
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Specific jurisdiction exists, in turn, when a defendant commits
some act relating to the forum state that gives rise to a claim appropriately
addressed in the state's courts. Rio Properties, 284 F.3d at 1019; see Sinatra
v. National Enquirer, Inc., 854 F.2d 1191, 1200 (9th Cir. 1988) (“California
maintains a strong interest in providing an effective means of redress for its
residents tortiously injured by commercial misappropriation [of name and
likeness] . . . California’s interest in providing effective redress for its
residents supports the exercise of jurisdiction in this case”); Thomson v.
Continental Ins. Co., 66 Cal.2d 738, 742-43 (1967) (“California residents
ought to be able to obtain redress for grievances in California courts, which
are maintained by the state for their benefit. This state is concerned with the
welfare of California residents and has a decided interest in assuring that its
citizens are not denied damages because of the inconvenience or expense of
bringing suit in a distant jurisdiction”).6
6
Regardless of which test is used to analyze a defendant’s minimum contacts,
the assertion of jurisdiction must be reasonable in either case. See Asahi
Metal Indus. Co. v. Superior Court, 480 U.S. 102, 113 (1978); Glencore
Grain Rotterdam, B.V. v. Shivanth Rai Harnarain Co., 284 F.3d 1114, 1125
(9th Cir. 2002). Because reasonableness is one of the three express factors
comprising part of the obligatory specific jurisdiction inquiry, the
reasonableness of jurisdiction over FMMC in this forum—applicable to either
minimum contacts analysis—is addressed in the specific jurisdiction portion of
this brief.
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laws.” 326 U.S. at 319. “[T]he question of jurisdiction cannot be answered
by the application of precise formulas or mechanical rules. Each case must be
decided on its own facts.” Integral Development Corp. v. Weissenbach, 99
Cal.App. 4th 576, 583 (2002). It thus stands to reason that a court’s
evaluation of minimum contacts under the two pertinent tests—i.e., those for
general and specific jurisdiction—should not proceed in a vacuum.
Jurisdiction should be exercised where, given the facts and circumstances
presented in support of a general or specific jurisdiction theory, or both, it
makes sense to do so. See Forsyth v. Overmyer, 576 F.2d 799, 782 (9th Cir.
1978) (“[W]e view the facts with a common sense perspective and evaluate
carefully the fundamental issues of fairness of the challenged jurisdictional
exercise in light of the facts”).
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years. Today many commercial transactions
touch two or more States and may involve parties
separated by the full continent.
McGee v. International Life Insurance Co., 355 U.S. 220, 222-23 (1957). As
courts strive to balance the interests of defendants who may have ambiguous
ties to a forum against those of the sovereign states and their residents, they do
so in recognition of the routine manner in which today’s businesses and
individuals transcend geographic boundaries: “[W]hile modern technology
has made nationwide commercial transactions simpler and more feasible, even
for small businesses, it must broaden correspondingly the permissible scope of
jurisdiction exerciseable by the courts.” California Software, Inc. v.
Reliability Research, 631 F.Supp. 1356, 1362, 1363 (C.D. Cal. 1986).
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1043 (2d Cir. 1990) (all pleadings and declarations are read in the plaintiff's
favor).
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statute, defendants who conduct substantial and continuous business within the
state are subject to general jurisdiction); Vons, 14 Cal. 4th at 444 (general
jurisdiction over a nonresident defendant exists where activities within the
forum are extensive or wide ranging, or substantial, continuous and
systematic).
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1. FMMC’s Contacts With California Are So Extensive As
To Give It A “Presence” In The State For Jurisdictional
Purposes
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• pays a separate vehicle invoice for each Nissan, Suzuki and
Daewoo vehicle listing a California address for each payee;
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Taken together, these considerations constitute the kind of
continuous and systematic contacts with the forum envisioned by the Supreme
Court in Perkins.7 There, the Court examined an array of factors including
the maintenance of an office, the keeping of files, the carrying on of
correspondence, the holding of meetings, the maintenance of bank accounts
and the engagement of the services of local entities, and found that since the
Philippine defendant “ha[d] been carrying on in Ohio a continuous and
systematic, but limited, part of its general business,” the assertion of general
jurisdiction was proper. Perkins, 342 U.S. at 438-45.
7
FMMC’s effort to characterize its contacts with California as something less
than continuous and systematic is unpersuasive and adopts an approach
inconsistent with a court’s role in determining personal jurisdiction on a
motion to dismiss. Although FMMC offers an evidentiary litany intended to
demonstrate that its undisputed California contacts more properly should be
deemed to originate elsewhere, this strategy does not succeed. (See ER
II:375-78) Try as FMMC might to deflect attention from the key facts, it
cannot avoid or dispute that it has transacted over $60 million in business with
California businesses, just as it cannot avoid the remaining jurisdictionally
significant evidence cited by Mr. Schwarzenegger. Those contacts are
continuous and systematic for purposes of the general jurisdiction analysis.
That analysis, in turn, should involve the tallying up of FMMC’s California
contacts to determine their jurisdictional sufficiency—not, as FMMC would
have it, the weighing of the California contacts against the volume of
FMMC’s activities conducted elsewhere.
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FMMC’s daily business as “one of the largest automotive retailers in the state
of Ohio.” (ER 322) See Provident National Bank, 819 F.2d at 437-38
(defendant savings and loan’s activities in Pennsylvania, the borrowing and
lending of money, went to “the very bread and butter of its daily business”).
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FMMC’s nonpurchasing acts, such as retaining marketing and sales
consultants, originating direct mail marketing from the state, acquiescing to
the state’s laws and venues for dispute resolution, and conducting interactive
online advertising and marketing within the state. (ER III:662-70) In reliance
on Helicopteros and Glencore, 284 F.3d 1114, the district court applied a
standard that rules out extensive, ongoing and business-critical purchasing
activity as a possible basis for jurisdiction, even when accompanied by
numerous examples of other jurisdictional contacts that did not constitute
purchases. Such a result does not follow from, and indeed contradicts, the
court’s cited authorities and controlling Supreme Court and Ninth Circuit
precedent.8
8
In its Motion, FMMC put great emphasis on its lack of physical contacts
with California. It is well settled, however, that the defendant’s location,
while certainly considered in the personal jurisdiction calculus, is not outcome
determinative. The minimum contacts test does not turn on physical contacts
with the forum state, but on whether the contacts in the aggregate, physical or
otherwise, suffice to approximate the defendant’s presence. See Burger King
Corp. v. Rudzewicz, 471 U.S. 462, 476 (1985) (“Jurisdiction … may not be
avoided merely because the defendant did not physically enter the forum State
… ”); Glencore, 284 F.3d at 1125 (examining whether the defendant has
“made itself at home”). FMMC’s argument that Mr. Schwarzenegger has
failed to set forth any evidence of physical contacts in the state of California
thus is irrelevant.
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(1923), in reaching that conclusion, but the focus of Rosenberg too was on the
overall volume of the defendant’s contact. In Rosenberg, the Court found that
sporadic purchases of goods to be sold in a men’s furnishings store alone
lacked legal significance for jurisdiction. Id. at 517. The Court in
Helicopteros also expressly disclaimed endorsement of Rosenberg’s holding
that purchasing activity cannot sustain jurisdiction over a cause of action
arising from the purchasing activity. Helicopteros, 466 U.S. at 418 n.12.
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reasonably could anticipate being haled into court there. Id. at 975.9 The
Court’s approach in T.H. Davies applies with equal force here, where FMMC
has made not three but over 3,000 purchases from forum entities, totaling
more than $60 million, which were critical to supporting its core automobile
sales business.
9
See also, GTFM, Inc. v. International Basic Source, Inc., 2002 WL
31050840, *5 (S.D.N.Y. 2002) (finding of general jurisdiction based on
several factors including the purchase of goods on numerous occasions from at
least three vendors in the forum); Simpson v. Quality Oil Company, Inc., 723
F.Supp. 382, 390 (S.D. Ind. 1989) (Helicopteros distinguished because it
involved a Colombian defendant and not two U.S. based parties; Kentucky
defendant’s oil purchases from Indiana were “continuous and systematic”
contacts with the state; defendant’s redistribution of the purchased fuel was its
central business purpose; purchases plus other contacts gave rise to general
jurisdiction).
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vehicle purchases are but part and parcel of its continuous and systematic
contacts with the state.
10
Provident National distinguished Helicopteros because there the Colombian
defendant’s contacts with the Texas forum were “important but not central to
the defendant’s business, the provision of helicopter services for South
American oil and construction companies.” 819 F.2d at 438. The present
case is equally distinguishable from Helicopteros for the same reason.
FMMC's automobile purchases and other contacts with California—e.g., the
purchase of marketing and training services from California businesses, the
origination of direct mail marketing from California, and the maintenance of
its promotional Web site—relate directly to the “bread and butter” of FMMC's
daily business—selling cars and related financing. Just as in Provident
National, “It would appear that due to the nature of its contacts, [FMMC]
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III:665) It nevertheless failed to discern how the combination of factors
present here indicate that FMMC has not “merely stepped through the door”
of the state of California, but “has sat down and made itself at home.” See
Glencore, 284 F.3d at 1125.
would have a greater expectation of being haled into court in [California] than
the Helicopteros defendant had of being haled into court in Texas.” Provident
National, 819 F.3d at 438.
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This sort of significant economic activity is sufficient to trigger
general jurisdiction regardless of whether any sales to California residents
have occurred. See Bancroft & Masters, Inc. v. Augusta National, Inc., 223
F.3d 1082, 1086 (9th Cir. 2000) (general jurisdiction factors are several, and,
in addition to making sales in the forum, include soliciting or engaging in
business within the state); see also Cybersell Inc. v. Cybersell, Inc., 130 F.3d
414, 418 (9th Cir. 1997) and Zippo Mfg. Co. v. Zippo Dot Com, Inc., 952
F.Supp. 1119, 1124 (W.D. Pa. 1997) (acknowledging enhanced jurisdictional
significance of commercial Web sites that enable a user to exchange
information with the host computer and deliver information to the user that is
tailored to the user’s preferences); Toys “R” Us, Inc. v. Step Two, S.A., 318
F.3d 446, 2003 WL 175322, *6 (3rd Cir. 2003) (the exact mix of Internet and
non-Internet contacts required to support an exercise of personal jurisdiction
“should be made on a case-by-case basis by assessing the ‘nature and quality’
of the contacts”).11
11
FMMC’s reply in support of the motion to dismiss below emphasized that
its in-forum activities have non-forum components as well. See, e.g., ER
II:375-78, describing how FMMC’s transactions with California entities have
involved individuals and locations outside the state. While this is
understandable given that FMMC is based in Ohio and the companies from
which it purchases do business worldwide, it does nothing to erase the
significant volume of business FMMC transacts with entities that call
California home.
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erred fundamentally when it disregarded the fact that FMMC could not sell
cars at present volumes without its California purchases, and that these
business-critical purchases were buttressed by evidence of numerous other
factors that separately confirm FMMC’s tacit and express acquiescence to
litigating disputes in California. The “fair warning” standard that underlies
the minimum contacts rule is satisfied on this record, and the district court’s
erroneous characterization of FMMC’s contacts as mere and insignificant
purchases does not suffice to shield it from suit in California.
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quoting Burger King, 471 U.S. at 475 (internal quotation marks omitted).
Because Mr. Schwarzenegger’s action against FMMC fulfills each of these
jurisdictional requirements, the specific jurisdiction analysis provides
independent confirmation of the propriety of a California forum.
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aiming” requirement of effects test is satisfied “when the defendant is alleged
to have engaged in wrongful conduct targeted at a plaintiff whom the
defendant knows to be a resident of the forum state”); Sinatra, 854 F.2d at
1195 (a Swiss clinic that misappropriated Frank Sinatra’s name in connection
with advertising alluding to the entertainer’s alleged treatment at the clinic
necessarily would injure Sinatra in California by diluting the commercial value
of his name); California Software, Inc., 631 F.Supp. at 1362 (intent, aiming
and injury prongs of effects test were present where false statements made to
nonresidents concerning a California resident were expressly calculated to
cause injury in California, the nonresident defendants knew the plaintiff would
feel the injury in California, and expected to directly benefit from the
statements; reasoning adopted by Sinatra, 854 F.2d at 1198).12
12
Compare Pavlovich v. Superior Court, 29 Cal.4th 262, 273-76 (2003)
(effects test not satisfied as to Texas defendant where alleged harm involved
operation of a passive Web site; record demonstrated at most defendant knew
or should have known of potential harm to industries presumed to have
substantial presence in California, and not to any specifically targeted
individual or entity). Here, the California Supreme Court’s 5-4 Pavlovich
decision only would militate against a finding of purposeful availment if
FMMC had not misappropriated the name and likeness of an individual
celebrity like Mr. Schwarzenegger, but had instead misappropriated something
like the “Hollywood” sign.
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California, a well-known film actor and a possible state gubernatorial
candidate. (Id. at I:94-95; II:344-48) Finally, the injury to Mr.
Schwarzenegger, occasioned by FMMC’s use of his name and likeness
without authorization or compensation and in a manner guaranteed to diminish
their value, was felt, as FMMC knew it would be, in California. (Id. at I:94-
97; II:344-48)
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In Calder, for example, the fact the article was published in
California was but one aspect—indeed, almost an afterthought—of the Court’s
consideration of the more critical factors of the harm to Shirley Jones and the
targeting of a known California resident:
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on where the plaintiff was known to reside and where he would suffer harm.
Sinatra, 854 F.2d at 1197.
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sent by the defendant to a Virginia entity—the domain name registrar Network
Solutions, Inc.—challenging a California corporation’s rights in an Internet
domain name. Bancroft, 223 F.3d at 1084-88. This was all that was needed
to satisfy the purposeful availment prong of the specific jurisdiction analysis:
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ad in Ohio that used, without permission, the name and likeness of a
California celebrity, a court properly should consider where the ad was
published, and with what frequency. But consistent with settled U.S. Supreme
Court and Ninth Circuit principles, this cannot be the court’s only guidepost.
Of greater importance is whether the forum can be severed from the wrong
alleged. See Sinatra, 854 F.2d at 1197 (“Here, the misappropriation is
properly viewed as an event within a sequence of activities designed to use
California markets for the defendant’s benefit”) (emphasis added). Mr.
Schwarzenegger established that each of the criteria for demonstrating
purposeful availment under the effects test—intent, aiming and foreseeable in-
forum harm—are satisfied, because the “Terminator” ad campaign specifically
identified Mr. Schwarzenegger and was but one manifestation of FMMC’s
persistent use of California entities and individuals to conduct its business.
Specific jurisdiction over FMMC in California accordingly exists as long as
the remaining considerations of a nexus between the claims and FMMC’s
forum related activity, and the overall reasonableness of the exercise of
jurisdiction, are present. See Bancroft, 223 F.3d at 1086-87.
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injury would not have occurred, this aspect of the specific jurisdiction analysis
is established. See, e.g., Rio Properties, 284 F.3d at 1021 (central to Court’s
finding that the forum related activities requirement was satisfied was the fact
that maintenance of gambling Web site by the Puerto Rican defendant injured
plaintiff in Nevada, “its principal place of business and the capital of the
gambling industry”); Bancroft, 223 F.3d at 1088 (forum related activities
requirement satisfied where, but for defendant’s mailing of a letter to Virginia
based Network Solutions, Inc., California plaintiff would have had no need to
seek relief); Panavision, 141 F.3d at 1322 (forum related activities
requirement satisfied where defendant’s domain name registration of
Panavision’s trademark had the effect of injuring Panavision in California, its
home state and the home of the movie industry).
13
Its order simply offers a cursory rejection of Panavision as “unpersuasive.”
(ER III:670)
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its reading of both the record and the governing law. “A claim need not arise
directly from the defendant’s forum contacts in order to be sufficiently related
to the contact to warrant the exercise of specific jurisdiction.” Vons, 14 Cal.
4th at 452. Instead, it is enough that the wrong asserted bears a substantial
connection to the defendant’s contacts within the forum. In Vons, for
example, franchise agreements with a Delaware entity containing California
choice of law and forum provisions enabled defendants to conduct business in
Washington, where various E. coli contaminations occurred (much as
FMMC’s purchase agreements with California entities containing California
choice of law and forum provisions enable it to conduct business in Ohio,
where it ran the ads containing Mr. Schwarzenegger’s name and likeness). Id.
at 456-459. The presence of the choice of law and forum provisions in
agreements with non-California entities was all that was needed in Vons to
demonstrate that the claims arose out of or resulted from forum related
activities. Id. The “arising out of” prong thus does not require that an injury
be caused by the very activity that constitutes the defendant’s forum contacts.
Indeed, such a reading, would thwart the fairness rationale underlying specific
jurisdiction, because “a state never could exercise jurisdiction over a tort
claim arising from a contractual contract.” Id. at 459-60.
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name and likeness for the identical purpose. The second requirement for the
exercise of personal jurisdiction accordingly is satisfied.
The final requirement for specific jurisdiction, and one the district
court’s order fails to address at all, is reasonableness.14 (See ER III:65-70)
For jurisdiction to be reasonable, it must comport with fair play and
substantial justice. Burger King, 471 U.S. at 462.
14
The exercise of personal jurisdiction must be fair and reasonable regardless
of whether the basis is general or specific. See Asahi, 480 U.S. at 113;
Glencore, 284 F.3d at 1125. The analysis that follows thus applies with equal
force to confirm the propriety of general jurisdiction. See n.4, infra.
- 39 -
(9th Cir. 1995) (defendant carries a “heavy burden” to overcome the “strong
presumption in favor of jurisdiction”).
15
FMMC instead contended that no burden shift occurred because in its view
Mr. Schwarzenegger failed to show that FMMC purposely had availed itself
of the benefits of a California forum. (ER II:386) FMMC made no similar
contention with respect to the second, forum related activities aspect of the
specific jurisdiction analysis. (Id.) The venue portion of FMMC’s motion
necessarily discussed reasonableness factors that resemble those required
under Burger King. But the focus of the venue and personal jurisdictional
analyses are not the same. While it is appropriate in the venue context to
compare different forums and determine which is more reasonable, the Burger
King factors instead are designed to determine whether jurisdiction is
reasonable in the plaintiff’s chosen forum in the first instance. At best,
FMMC’s venue related arguments below confirm the self-evident fact that
Ohio constitutes a possible alternate forum. (See ER I:31-33; II:386-91)
- 40 -
30; II:386-91) This is inadequate to demonstrate a “compelling case” of
unreasonableness focused on the applicable Burger King factors. For this
reason alone, given Mr. Schwarzenegger’s ample showing as to the other
requisites for specific jurisdiction, specific jurisdiction exists as to FMMC that
should have precluded the district court’s dismissal.
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of the likely percipient witnesses and all of the likely expert witnesses reside in
California. (ER I:9616) The distance between Ohio and California is not
extreme under modern conditions. See Ballard, 65 F.3d at 1501 (requirement
that Austrian defendant travel to California not so great as to violate due
process); Sinatra, 854 F.2d at 1199 (“modern advances in communications
and transportation have significantly reduced the burden” even of litigating in
another country).
16
See also ER III:897, 904, 907-09 (Mr. Schwarzenegger’s evidentiary
submissions in opposition to Zimmerman’s unsuccessful motion to transfer the
district court proceedings to Ohio, discussing related considerations).
- 42 -
engaged in here. Particularly if such conduct is not diligently controlled
through litigation such as this, it is prone to increase and spread without
thought of jurisdictional boundaries. California’s interest in shielding Mr.
Schwarzenegger and those like him from the need to pursue piecemeal actions
throughout the country could not be stronger. See Sinatra, 854 F.2d at 1200
(“California maintains a strong interest in providing an effective means of
redress for its residents tortiously injured by commercial misappropriation [of
name and likeness] . . . California’s interest in providing effective redress for
its residents supports the exercise of jurisdiction in this case”); Thomson v.
Continental Ins. Co., 66 Cal.2d 738, 742-43 (1967) (“California residents
ought to be able to obtain redress for grievances in California courts, which
are maintained by the state for their benefit. This state is concerned with the
welfare of California residents and has a decided interest in assuring that its
citizens are not denied damages because of the inconvenience or expense of
bringing suit in a distant jurisdiction”).
17
Defendant Zimmerman attempted without success to transfer the district
court proceedings to Ohio. (ER III:691-895; IV:946-67)
- 43 -
more convenient and less expensive for all parties to resolve the claims in this
forum. (ER I:96 and n.16, infra) See California Software, 631 F.Supp. at
1364, citing Cubbage v. Merchant, 744 F.2d 665, 671-72 (9th Cir. 1984)
(“[t]he court sitting in the place the injury occurred is ordinarily the most
efficient forum”).
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waste of judicial and party resources. See California Software, 631 F.Supp. at
1364 (“It would be both unfair, in light of the forum related activity, and
inefficient to require plaintiffs who have suffered an economic injury as a
result of defendants’ intentional conduct to sue in defendants’ home states …
or in the three jurisdictions in which the known recipients of the CRF message
reside”).
VI.
CONCLUSION
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interest in curbing and rectifying FMMC’s unlawful conduct. This Court
should refuse to permit that result. Assertion of personal jurisdiction over
FMMC, based on the nature of its contacts with California and the intended
effect of its conduct within California, effectuates controlling state and federal
constitutional directives. Because the Constitution permits it, California would
and should provide a forum to litigate this dispute. We urge this Court to
reverse the judgment below.
By
Denise M. Howell
Attorneys for Appellant
Arnold Schwarzenegger
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VII.
STATEMENT OF RELATED CASES
By
Denise M. Howell
Attorneys for Appellant
Arnold Schwarzenegger
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VIII.
CERTIFICATE OF COMPLIANCE
By
Denise M. Howell
Attorneys for Appellant
Arnold Schwarzenegger
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PROOF OF SERVICE
I am a resident of the State of California, over the age of eighteen
years, and not a party to the within action. I am employed in the office of a
member of the bar of this court at whose direction the service was made. My
business address is REED SMITH CROSBY HEAFEY LLP , 355 South
Grand Avenue, Suite 2900, Los Angeles, CA 90071. On March 3, 2003, I
served the following document(s) by the method indicated below:
APPELLANT’S OPENING BRIEF
¨ By transmitting via facsimile on this date from fax number (213) 457-8080
the document(s) listed above to the fax number(s) set forth below. The
transmission was completed before 5:00 p.m. and was reported complete
and without error. The transmission report, which is attached to this proof
of service, was properly issued by the transmitting fax machine. Service
by fax was made by agreement of the parties, confirmed in writing.
ý By placing the document(s) listed above in a sealed envelope with postage
thereon fully prepaid, in the United States mail at Los Angeles, California
addressed as set forth below. I am readily familiar with the firm’s practice
of collection and processing of correspondence for mailing. Under that
practice, it would be deposited with the U.S. Postal Service on that same
day with postage thereon fully prepaid in the ordinary course of business.
I am aware that on motion of the party served, service is presumed invalid
if the postal cancellation date or postage meter date is more than one day
after the date of deposit for mailing in this Declaration.
¨ By placing the document(s) listed above in a sealed envelope(s) and by
causing personal delivery of the envelope(s) to the person(s) at the
address(es) set forth below. A signed proof of service by the process
server or delivery service will be filed shortly.
¨ By personally delivering the document(s) listed above to the person(s) at
the address(es) set forth below.
¨ By placing the document(s) listed above in a sealed envelope(s) and
consigning it to an express mail service for guaranteed delivery on the next
business day following the date of consignment to the address(es) set forth
below. A copy of the consignment slip is attached to this proof of service.
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Larry J. Brock, Esq. Attorneys for Defendant and Appellee
Pollard, Archer, Cranert, Googooian Fred Martin Motor Company
& Stevens
2 North Lake Avenue, Suite 850
Pasadena, CA 91101-1872
Roy G. Weatherup, Esq. Attorneys for Defendant and Appellee
Haight, Brown & Bonesteel, LLP Fred Martin Motor Company
6080 Center Drive, Suite 800
Los Angeles, CA 90045-1574
Adriane I. Lark
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