Harper v. Biolife Energy Systems, Inc. , 426 P.3d 1067 ( 2018 )


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  •       Notice: This opinion is subject to correction before publication in the PACIFIC REPORTER.
    Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts,
    303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email
    corrections@akcourts.us.
    THE SUPREME COURT OF THE STATE OF ALASKA
    PAULETTE HARPER,              )
    )                         Supreme Court No. S-16488
    Appellant,     )
    )                         Superior Court No. 3VA-15-00059 CI
    v.                      )
    )                         OPINION
    BIOLIFE ENERGY SYSTEMS, INC., )
    and LINKUP MEDIA GROUP OF     )                         No. 7294 – September 14, 2018
    COMPANIES, INC.,              )
    )
    Appellees.     )
    )
    Appeal from the Superior Court of the State of Alaska, Third
    Judicial District, Valdez, Daniel Schally, Judge pro tem.
    Appearances: Eric Auten, Law Office of Eric Auten, Valdez,
    for Appellant. Brad S. Kane, Kane Law Firm, Los Angeles,
    California, for Appellees.
    Before: Stowers, Chief Justice, Winfree, Maassen, Bolger,
    and Carney, Justices.
    STOWERS, Chief Justice.
    I.    INTRODUCTION
    A woman sued two New York corporations in the superior court in Valdez,
    alleging violations of her right of publicity and right of privacy. Her claims related to
    an allegedly false account regarding her recovery from cancer; she discovered the
    account in a brochure promoting products by BioLife Energy Systems, Inc., while
    working for BioLife’s distributor in Colorado. The defendants filed a motion to dismiss
    based on lack of personal jurisdiction, claiming that neither of them has the minimum
    contacts with Alaska necessary to satisfy due process. The superior court granted the
    motion, reasoning that although BioLife arguably had some contacts in Alaska, the
    woman’s claims did not relate to those contacts, and the defendants’ contacts were
    insufficient to establish all-purpose jurisdiction. The woman appeals. We affirm.
    II.   FACTS AND PROCEEDINGS
    Around May and June 2012, Paulette Harper, who had recently moved from
    Alaska to Montrose, Colorado, worked for HoneyCombs Herbs and Vitamins for
    approximately four weeks. HoneyCombs manufactured and distributed herbal and
    vitamin products on behalf of other companies, including BioLife. While working at
    HoneyCombs, Harper alleged she saw a brochure from BioLife that included a section
    entitled “The Herbalist Behind BioLife: Michael Combs”; Combs is Harper’s brother,
    and the write-up about him included an allegedly false account of his organic herb
    research leading to Harper recovering from cancer.1 All parties agreed that the brochure
    was available on BioLife’s website. Harper moved back to Alaska in October 2012, and
    in June 2015 she filed a lawsuit against BioLife and Linkup Media Group of Companies,
    Inc.,2 in the superior court in Valdez, alleging violations of her right of publicity and
    right of privacy and seeking damages for unjust enrichment and punitive damages.
    1
    BioLife correctly pointed out to the superior court that the name “Paulette
    Harper” does not appear in the brochure, which uses only “Paulette.” However, the
    brochure describes “Paulette” as Combs’s sister, so Harper can likely be identified from
    the brochure.
    2
    Harper stated that BioLife was owned by Linkup. BioLife and Linkup
    responded that they are separate corporations owned by the same CEO and founder, and
    that Linkup is a flagship corporation of several companies. On appeal, BioLife and
    Linkup appear to concede that “Linkup is the parent company of [BioLife].” Both
    companies are New York corporations.
    -2-                                      7294
    In January 2016 defendants moved to dismiss for lack of personal
    jurisdiction. They argued that they had “no significant contacts with Alaska” and that
    “the closest [they] ha[d] come to doing business in Alaska” was when BioLife “sen[t]
    supplements ordered by a Connecticut resident to a person in Alaska” in 2012. They also
    argued that the fact that the brochure was posted on BioLife’s New York-based website
    did not subject them to either specific or general personal jurisdiction in Alaska.
    Harper opposed the motion. She argued that BioLife’s website was highly
    commercial in nature, allowing customers to purchase products online, and that the drop-
    down menu for shipping included Alaska as an option, along with the other 49 states
    “and a long list of nations from Afghanistan to Zimbabwe.” In her accompanying
    affidavit, she alleged that HoneyCombs “place[d] at least several dozen Bio[L]ife orders
    [on an average day], and some days more than one hundred,” and that “[b]ased on the
    large quantity of orders [she] place[d] during just [her] brief period there, and
    considering that Bio[L]ife ha[d] been in business for approximately five years, it
    seem[ed] highly plausible that one or more order[s] could have originated in Alaska.”
    She suggested that jurisdictional discovery was appropriate.          She later filed a
    supplemental affidavit, alleging that she saw “several orders from Alaska.” She stated
    that “[c]onsidering the number of BioLife packages [she] saw destined for Alaska during
    [her] short time working there, [she assumed] that there were many more before and after
    [her] time there.”
    In their reply the defendants argued that Harper was not credible because
    of the inconsistency between the two affidavits and because Harper’s assertions were
    contradicted by Crystal Combs, the owner of HoneyCombs, who stated that Harper “only
    taped [boxes] . . . and labels were later applied in the shipping department” and that
    according to HoneyCombs’s records “[t]he only shipment to Alaska was for an order
    -3-                                        7294
    from a Connecticut customer for delivery in Alaska.” They opposed the “undeveloped
    discovery request.”
    The superior court issued an order granting the motion to dismiss the
    lawsuit without prejudice. The court found that the website was “clearly commercial in
    nature” but seemed to credit the defendants’ position that BioLife shipped only one order
    to Alaska. The court concluded that it lacked general personal jurisdiction over the
    defendants; it also concluded that it lacked specific personal jurisdiction because
    “[a]lthough Bio[L]ife arguably did at one time purposefully direct its activities to Alaska
    residents, the claims at issue in this case do not relate to or arise from those activities.”
    Harper moved for reconsideration and also filed a formal motion for
    additional jurisdictional discovery. She argued that “she [was] and ha[d] been an Alaska
    resident for all periods [of] time relevant to her complaint”3 and that Alaska was
    therefore the place of injury. She also argued that she “made specific and credible
    allegations regarding BioLife’s contacts with Alaska” and “clearly provide[d] a good
    faith basis to believe that there is discoverable information on this question.” She
    included a second supplemental affidavit.
    The defendants opposed the motions, arguing among other things that the
    second supplemental affidavit constituted newly introduced evidence that should not be
    considered. They argued that Harper failed to explain how the court allegedly
    misconstrued or misapplied the law of personal jurisdiction and that her affidavits were
    contradictory.
    3
    She provided no support for this argument. According to her supplemental
    affidavit, she moved from Alaska to Colorado in May 2012 for “a fresh start” and the
    promise of a full-time job, and she was living and working in Colorado when she
    discovered the brochure.
    -4-                                        7294
    The court denied the motions for reconsideration and for jurisdictional
    discovery. Harper appeals.
    III.   STANDARD OF REVIEW
    “We review questions regarding personal jurisdiction de novo because
    ‘[j]urisdictional issues are questions of law subject to this court’s independent
    judgment.’ We adopt ‘the rule of law that is most persuasive in light of precedent,
    reason, and policy’ when it comes to jurisdictional questions.”4
    “When considering the appeal of a motion to dismiss we ‘presume all
    factual allegations of the complaint to be true and make all reasonable inferences in favor
    of the non-moving party.’ ”5
    “We will not overturn an order denying a motion for reconsideration unless
    there has been an abuse of discretion.”6 Abuse of discretion will be found “when the
    decision on review is manifestly unreasonable.”7
    4
    Polar Supply Co. v. Steelmaster Indus., Inc., 
    127 P.3d 52
    , 54 (Alaska 2005)
    (alteration in original) (footnote omitted) (quoting S.B. v. State, Dep’t of Health & Soc.
    Servs., Div. of Family & Youth Servs., 
    61 P.3d 6
    , 10 (Alaska 2002)); accord Richter v.
    Richter, 
    330 P.3d 934
    , 937 (Alaska 2014) (citing Vanvelzor v. Vanvelzor, 
    219 P.3d 184
    ,
    187 (Alaska 2009)).
    5
    Neese v. Lithia Chrysler Jeep of Anchorage, Inc., 
    210 P.3d 1213
    , 1217
    (Alaska 2009) (quoting Rathke v. Corr. Corp. of Am., 
    153 P.3d 303
    , 308 (Alaska 2007)).
    6
    Baseden v. State, 
    174 P.3d 233
    , 238 (Alaska 2008) (citing Magden v. Alaska
    USA Fed. Credit Union, 
    36 P.3d 659
    , 661 (Alaska 2001)).
    7
    Timothy W. v. Julia M., 
    403 P.3d 1095
    , 1100 (Alaska 2017) (quoting Fink
    v. Municipality of Anchorage, 
    379 P.3d 183
    , 188 (Alaska 2016)).
    -5-                                      7294
    IV.	   DISCUSSION
    A.	   The Superior Court Did Not Err In Dismissing The Action For Lack
    Of Personal Jurisdiction.
    Alaska courts may exercise jurisdiction over out-of-state defendants
    pursuant to Alaska’s “long-arm statute,” AS 09.05.015.8 This statute lists several
    specific grounds for jurisdiction and includes a broad catch-all provision.9 We have
    explained that the long-arm statute ultimately “authorizes Alaska’s courts ‘to assert
    jurisdiction to the maximum extent permitted by due process.’ ”10
    The Due Process Clause of the Fourteenth Amendment “limits the personal
    jurisdiction of state courts.”11 For a court to exercise jurisdiction over a nonresident
    defendant, “the nonresident generally must have ‘certain minimum contacts . . . such that
    the maintenance of the suit does not offend “traditional notions of fair play and
    substantial justice.” ’ ”12 The United States Supreme Court has recognized two types of
    personal jurisdiction: “general” (or “all-purpose”) jurisdiction and “specific” (or “case­
    8
    Polar Supply 
    Co., 127 P.3d at 54
    (“Alaska’s long-arm statute, AS 09.05.015,
    is broad and refers to several specific circumstances under which personal jurisdiction
    may be exercised.”).
    9
    AS 09.05.015.
    10
    Polar Supply 
    Co., 127 P.3d at 56
    (quoting Am. Nat’l Bank & Tr. Co. v. Int’l
    Seafoods of Alaska, Inc., 
    735 P.2d 747
    , 749 (Alaska 1987)); see also Wash. Ins. Guar.
    Ass’n. v. Ramsey, 
    922 P.2d 237
    , 240 (Alaska 1996) (“We have construed this statute to
    extend Alaska’s jurisdiction to the maximum reach consistent with the guarantees of due
    process under the Fourteenth Amendment.” (quoting Volkswagenwerk, A.G. v. Klippan,
    GmbH, 
    611 P.2d 498
    , 500 (Alaska 1980))).
    11
    Bristol-Myers Squibb Co. v. Superior Court, 
    137 S. Ct. 1773
    , 1779 (2017).
    12
    Walden v. Fiore, 
    571 U.S. 277
    , 283 (2014) (alteration in original) (quoting
    Int’l Shoe Co. v. Washington, 
    326 U.S. 310
    , 316 (1945)).
    -6-	                                     7294
    linked”) jurisdiction.13 The superior court concluded that Alaska does not have either
    form of personal jurisdiction over BioLife or Linkup, and Harper appeals this
    determination.
    1.	    The superior court did not err in concluding that it did not have
    general jurisdiction over the defendants.
    “A court with general jurisdiction may hear any claim against [a] defendant,
    even if all the incidents underlying the claim occurred in a different State.”14 Harper
    suggests that general jurisdiction may exist “if the [defendant] company’s contact with
    the forum is substantial — for example, if a significant number of sales are made through
    [its] website in the forum.” But this significantly understates the level of contact required
    to establish general jurisdiction.15
    “A court may assert general jurisdiction over [out-of-state] corporations to
    hear any and all claims against them when their affiliations with the State are so
    ‘continuous and systematic’ as to render them essentially at home in the forum State.”16
    This is a high standard, as “only a limited set of affiliations with a forum will render a
    13
    Bristol-Myers 
    Squibb, 137 S. Ct. at 1779-80
    (citing Goodyear Dunlop Tires
    Operations, S.A. v. Brown, 
    564 U.S. 915
    , 919 (2011)).
    14
    
    Id. at 1780
    (emphasis in original) (citing 
    Goodyear, 564 U.S. at 919
    ).
    15
    The only case Harper cites in support of her argument is CompuServe, Inc.
    v. Patterson, in which the Sixth Circuit found that online sales in the forum state were
    sufficient to create specific jurisdiction. 
    89 F.3d 1257
    , 1263 (6th Cir. 1996)
    (“CompuServe seeks to establish . . . specific personal jurisdiction over Patterson.”); 
    id. at 1268-69
    (concluding that “Patterson had sufficient contacts with Ohio to support the
    exercise of personal jurisdiction over him.”).
    16
    
    Goodyear, 564 U.S. at 919
    (quoting Int’l 
    Shoe, 326 U.S. at 317
    ).
    -7-	                                       7294
    defendant amenable to all-purpose jurisdiction there”17:
    “For an individual, the paradigm forum for the exercise of
    general jurisdiction is the individual’s domicile; for a
    corporation, it is an equivalent place, one in which the
    corporation is fairly regarded as at home.” With respect to a
    corporation, the place of incorporation and principal place of
    business are “paradig[m] . . . bases for general
    jurisdiction.”[18]
    In Daimler AG v. Bauman, the Supreme Court explicitly rejected the notion that a
    corporation is subject to general jurisdiction “in every State in which [it] ‘engages in a
    substantial, continuous, and systematic course of business.’ ”19
    In 1987 we addressed general personal jurisdiction in Glover v. Western Air
    Lines, Inc.20 Glover, which predated the Supreme Court’s decision in Daimler, presented
    the question whether Alaska courts had jurisdiction over various Avis car rental
    subsidiaries for a cause of action that arose in Mexico.21 We noted that Avis’s U.S.
    branch was “not licensed to do business in Alaska, ha[d] no business agents or
    employees in Alaska, own[ed] no property in Alaska and maintain[ed] no bank accounts
    in Alaska,” but that it was, “however, a franchisor of the ‘Avis’ name, ha[d] licensed that
    name to several Alaskan franchisees, maintain[ed] considerable control over the
    17
    Daimler AG v. Bauman, 
    571 U.S. 117
    , 137 (2014).
    18
    
    Id. (alterations in
    original) (citation omitted) (first quoting 
    Goodyear, 564 U.S. at 924
    ; then quoting Lea Brilmayer, Jennifer Haverkamp & Buck Logan, A General
    Look at General Jurisdiction, 66 TEX. L. REV. 721, 735 (1988)).
    19
    
    Id. at 137-38.
           20
    
    745 P.2d 1365
    (Alaska 1987).
    21
    
    Id. at 1366.
    -8-                                      7294
    day-to-day operations of the franchisees, and receive[d] substantial income from its
    licensing activities in Alaska.”22 Considering these facts in light of then-current Supreme
    Court case law, we concluded that “Avis U.S.’[s] contacts with Alaska [were] of a
    continuing, systematic, routine and substantial nature” and that general jurisdiction
    therefore was appropriate.23 After Glover was decided, the Supreme Court clarified the
    law of general jurisdiction in Daimler.24 In light of the Supreme Court’s more recent
    discussion, Glover is no longer good law; had Glover come before us after the Supreme
    Court’s decision in Daimler, we would have reached a different result. It is clear from
    Daimler that exercising general jurisdiction requires contacts that are substantially
    equivalent to incorporation or maintaining its principal place of business in the forum
    state.25
    In this case Harper has not alleged facts that would establish a prima facie
    case of general jurisdiction. Harper’s superior court filings make the following
    allegations: both BioLife and Linkup are New York corporations, and Linkup’s
    headquarters are in New York City; BioLife’s products are manufactured and distributed
    by HoneyCombs, which is based in Colorado; BioLife maintains an online presence
    through its website, through which consumers can place orders for herbal products;
    previously, the website’s formfor submitting shipping information included a drop-down
    menu that listed all 50 states, including Alaska; BioLife has made at least one product
    22
    
    Id. at 1369.
           23
    
    Id. at 1368-69
    (analogizing the factual scenario in Glover to Perkins v.
    Benguet Consol. Mining Co., 
    342 U.S. 437
    (1952), and Helicopteros Nacionales de
    Colombia, S.A. v. Hall, 
    466 U.S. 408
    (1984)).
    
    24 571 U.S. at 120-42
    .
    25
    See 
    id. at 137.
    -9-                                      7294
    shipment to Alaska, and possibly several more; BioLife published a brochure containing
    an allegedly false account regarding Harper, who claims she was an Alaska resident at
    all times relevant to this action, although she was living and working in Colorado when
    she discovered the brochure; and while living in Alaska, Harper received several samples
    of BioLife products from her family (not directly from BioLife).
    From these allegations, it is clear that New York would have general
    jurisdiction over both BioLife and Linkup, as both are incorporated there and maintain
    headquarters there. BioLife may arguably be subject to general jurisdiction in Colorado
    because its products are manufactured there and distributed from there, which could
    make Colorado BioLife’s “principal place of business.”26 But none of these allegations,
    even if taken as true and considered in the light most favorable to Harper, establish
    contacts with Alaska approaching a level that would make either company “essentially
    at home” in this state.27 Accordingly, it was not error for the superior court to rule that
    it had no general jurisdiction in this case.
    2.	    The superior court did not err in concluding that it did not have
    specific jurisdiction over BioLife.
    A forum state without general jurisdiction may nonetheless exercise specific
    personal jurisdiction over a nonresident defendant if the defendant has “certain minimum
    contacts with [the forum state] such that the maintenance of the suit does not offend
    ‘traditional notions of fair play and substantial justice.’ ”28 Specific jurisdiction is
    appropriate where a suit “aris[es] out of or relate[s] to the defendant’s contacts with the
    26
    
    Id. 27 Goodyear
    Dunlop Tires Operations, S.A. v. Brown, 
    564 U.S. 915
    , 919
    (2011).
    28
    Int’l Shoe Co. v. Washington, 
    326 U.S. 310
    , 316 (1945).
    -10-	                                 7294
    forum.”29 The Supreme Court has emphasized that “[i]n order for a court to exercise
    specific jurisdiction over a claim, there must be an ‘affiliation between the forum and the
    underlying controversy, principally, [an] activity or an occurrence that takes place in the
    forum State.’ When there is no such connection, specific jurisdiction is lacking
    regardless of the extent of a defendant’s unconnected activities in the State.”30 “[E]ven
    regularly occurring sales of a product in a State do not justify the exercise of jurisdiction
    over a claim unrelated to those sales.”31
    In this case Harper makes numerous allegations regarding BioLife’s
    commercial contacts with Alaska. These allegations are disputed, but because the case
    was dismissed for lack of jurisdiction without an evidentiary hearing, they must be taken
    as true.32 These allegations may well be sufficient to support specific jurisdiction over
    a claim such as breach of contract or product liability brought by an Alaskan BioLife
    customer.33 But Harper brought claims for right of publicity, right of privacy, and unjust
    29
    
    Daimler, 571 U.S. at 127
    (alterations in original) (quoting 
    Helicopteros, 466 U.S. at 414
    n.8).
    30
    Bristol-Myers Squibb Co. v. Superior Court, 
    137 S. Ct. 1773
    , 1781 (2017)
    (second alteration in original) (citation omitted) (quoting 
    Goodyear, 564 U.S. at 919
    ).
    31
    
    Goodyear, 564 U.S. at 930
    n.6, quoted in Bristol-Myers 
    Squibb, 137 S. Ct. at 1781
    .
    32
    See Neese v. Lithia Chrysler Jeep of Anchorage, Inc., 
    210 P.3d 1213
    , 1217
    (Alaska 2009).
    33
    Cf. Polar Supply Co. v. Steelmaster Indus., Inc., 
    127 P.3d 52
    , 53-54, 58
    (Alaska 2005) (concluding that personal jurisdiction was appropriate in a breach of
    warranty action where a Canadian manufacturer contracted to sell a telescopic trolley
    boom to an Alaskan company, even though the manufacturer was only responsible for
    shipping the boom as far as Washington).
    -11-                                       7294
    enrichment. These claims do not arise out of any commercial activity, but out of BioLife
    publishing the allegedly false story about Harper. And specific jurisdiction must rest on
    contacts with Alaska that relate to these claims.
    a.     “Minimum contacts” in the intentional torts context
    In Keeton v. Hustler Magazine, Inc., a New York resident brought a libel
    suit in federal court in New Hampshire against an Ohio corporation that had its principal
    place of business in California.34 The Supreme Court found that New Hampshire could
    exercise specific jurisdiction over the publisher of allegedly libelous magazine articles
    because it sold “some 10 to 15,000 copies of Hustler magazine in that State each month,”
    which amounted to conduct “purposefully directed at New Hampshire.”35 The Court
    explained that the respondent had “continuously and deliberately exploited the New
    Hampshire market” and therefore “must reasonably anticipate being haled into court
    there in a libel action based on the contents of its magazine.”36 Even though the
    petitioner had no connection with New Hampshire other than the “circulation . . . of a
    magazine that she assist[ed] in producing,” the Court explained that “New Hampshire
    ha[d] a significant interest in redressing injuries that actually occur[red] within the State”
    and that the “petitioner was suing, at least in part, for damages suffered in New
    Hampshire.”37
    In Calder v. Jones, a California resident brought suit in California state
    34
    
    465 U.S. 770
    , 772 (1984).
    35
    
    Id. at 772,
    774-75.
    36
    
    Id. at 781.
           37
    
    Id. at 772,
    776.
    -12-                                        7294
    court over an allegedly libelous article written and edited in Florida.38 The Supreme
    Court found that both the author and the editor were subject to personal jurisdiction in
    California because “their intentional, and allegedly tortious, actions were expressly
    aimed at California,”39 making them “primary participants in an alleged wrongdoing
    intentionally directed at a California resident.”40 The Court explained that “[t]he
    allegedly libelous story concerned the California activities of a California resident . . .
    whose television career was centered in California,” that it “was drawn from California
    sources,” and that “the brunt of the harm, in terms both of respondent’s emotional
    distress and the injury to her professional reputation, was suffered in California.”41 The
    Court noted that the petitioners wrote and edited the allegedly libelous article, knowing
    that it “would have a potentially devastating impact upon respondent” and “that the brunt
    of that injury would be felt by respondent in the State in which she live[d] and work[ed]
    and in which the [publishing magazine] ha[d] its largest circulation.”42 In short, the
    Court found that California jurisdiction was proper “because of [petitioners’] intentional
    conduct in Florida calculated to cause injury to respondent in California.”43
    Although Calder involved a libel claim, courts have applied its “effects
    38
    
    465 U.S. 783
    , 784 (1984).
    39
    
    Id. at 789.
    40
    
    Id. at 790.
    41
    
    Id. at 788-89.
           42
    
    Id. at 789-90.
           43
    
    Id. at 791.
    -13-                                      7294
    test” broadly to other intentional torts.44 However, “merely asserting that a defendant
    knew or should have known that his intentional acts would cause harm in the forum state
    is not enough to establish jurisdiction.”45 In Walden v. Fiore, the Supreme Court
    explained that in Calder, “the ‘effects’ caused by the defendants’ article . . . connected
    the defendants’ conduct to California, not just to a plaintiff who lived there.”46 The
    Court explained that “the plaintiff cannot be the only link between the defendant and the
    forum. Rather, it is the defendant’s conduct that must form the necessary connection
    with the forum State that is the basis for its jurisdiction over him.”47
    In Walden, a Georgia police officer working as a deputized agent for the
    Drug Enforcement Administration seized a large amount of cash at a Georgia airport
    from a Nevada resident who was about to board a plane to Las Vegas; later, the agent
    submitted an allegedly false affidavit to show probable cause for forfeiture of the funds.48
    The Nevada resident argued that this amounted to conduct “expressly aimed” at Nevada,
    but the Supreme Court disagreed.49 As the Court explained:
    Petitioner’s actions in Georgia did not create sufficient
    contacts with Nevada simply because he allegedly directed
    44
    See Pavlovich v. Superior Court, 
    58 P.3d 2
    , 7 (Cal. 2002) (citing IMO
    Indus., Inc. v. Kiekert AG, 
    155 F.3d 254
    , 259-60, 261 (3d Cir. 1998); Far W. Capital, Inc.
    v. Towne, 
    46 F.3d 1071
    , 1077 (10th Cir. 1995)).
    45
    
    Id. at 8
    (citing 
    IMO, 155 F.3d at 265
    ; Griffis v. Luban, 
    646 N.W.2d 527
    , 534
    (Minn. 2002)).
    46
    
    571 U.S. 277
    , 288 (2014) (emphasis in original).
    47
    
    Id. at 285.
           48
    
    Id. at 279-81.
           49
    
    Id. at 282.
    -14-                                       7294
    his conduct at plaintiffs whom he knew had Nevada
    connections. Such reasoning improperly attributes a
    plaintiff’s forum connections to the defendant and makes
    those connections “decisive” in the jurisdictional analysis. It
    also obscures the reality that none of petitioner’s challenged
    conduct had anything to do with Nevada itself.[50]
    In short, in order to establish a prima facie case for personal jurisdiction over BioLife,
    it is not enough for Harper to allege that BioLife took actions aimed at her or actions that
    harmed her. Rather, she would need to allege some action or conduct by BioLife, related
    to her claims, that was purposefully directed at the State of Alaska.
    Here, Harper has made a number of specific allegations regarding BioLife’s
    contacts with Alaska. Before the superior court, she asserted that BioLife made
    numerous sales of herbal products to Alaska; however, as explained above, Harper’s
    claims do not arise out of any commercial sales, so these cannot be used as the basis for
    specific jurisdiction. She also cannot rely on claiming Alaska residency, as Walden
    clearly bars a court from exercising jurisdiction based solely on the plaintiff’s
    connections with the forum state, even if the defendant was aware of those connections.51
    The only alleged contact relating to Harper’s claim is the publication of the brochure that
    mentions Harper. Harper did not allege that any Alaska resident ever actually viewed
    the brochure online or had it emailed or otherwise transmitted to them, or that any
    printed copy of the brochure was ever sent to Alaska. Nor did she allege that BioLife
    drew on Alaska sources in writing the brochure or that BioLife knew of any connection
    its brochure would have to Alaska. In other words, unlike Keeton and Calder, there is
    no indication that BioLife in any way targeted Alaska when publishing the brochure.
    50
    
    Id. at 289
    (citation omitted).
    51
    
    Id. -15­ 7294
    Rather, like in Walden, BioLife’s publication appears to be entirely out-of-state conduct
    that happened to affect a person with connections to Alaska.52 Accordingly, the case law
    on personal jurisdiction in the intentional tort context weighs against concluding that
    BioLife is subject to specific personal jurisdiction in Alaska.
    b.     “Minimum contacts” on the Internet
    On appeal, just as in her opposition to the motion to dismiss before the
    superior court, Harper’s argument focuses primarily on the fact that the brochure
    containing the allegedly false story about her was available on BioLife’s website. She
    argues that “the primary issue at hand is whether [BioLife’s] internet presence or other
    electronic remote contacts here [in Alaska] suffice” as a basis for specific jurisdiction.
    The website is commercial in nature, but Harper’s claims (for right of
    publicity, right of privacy, and unjust enrichment) do not arise out of any commercial
    activity on the website, so we need not decide whether BioLife’s “electronic remote
    contacts” could be a basis for jurisdiction. The claims relate to the publication of a
    brochure that included an allegedly false account regarding Harper and which was
    available on the website and viewable in Alaska. The posting of the brochure on the
    website is passive,53 and Harper has made no allegation that the brochure was ever
    viewed in Alaska or that BioLife knew that she had any connections to Alaska. The
    superior court did not err in concluding that “[a]lthough Bio[L]ife arguably did at one
    time purposefully direct its activities to Alaska residents, the claims at issue in this case
    do not relate to or arise from those activities.” And the court did not err in determining
    that it did not have specific personal jurisdiction over BioLife.
    52
    See 
    id. at 291.
           53
    See Zippo Mfg. Co. v. Zippo Dot Com, Inc., 
    952 F. Supp. 1119
    , 1124 (W.D.
    Pa. 1997).
    -16-                                       7294
    3.	    The superior court did not err in concluding that it did not have
    specific jurisdiction over Linkup.
    Harper makes no allegations at all about Linkup apart from its affiliation
    with BioLife. Specifically, Harper asserts that BioLife is a subsidiary of Linkup,
    although the defendants alleged in superior court that the two are separate companies
    under common ownership.54 But even taking Harper’s allegations as true, she still fails
    to make a prima facie case for jurisdiction over Linkup.
    Beyond claiming that Linkup and BioLife share a CEO and founder and
    claiming that Linkup owns BioLife, Harper has made no allegations that relate to Linkup
    in any way. The lack of allegations regarding Linkup was specifically raised in the
    defendants’ reply brief in support of their motion to dismiss, but Harper did not respond
    to this issue in any filings before the superior court or on appeal. Even taking all
    Harper’s allegations as true and viewing all facts in the light most favorable to her
    position, the record before this court does not reveal any contacts between Linkup and
    Alaska. Linkup has not been shown, or even alleged, to have purposefully availed itself
    of the privileges of conducting activities in Alaska, either on its own behalf or through
    BioLife. Thus, any exercise of jurisdiction over Linkup would be inappropriate, and the
    superior court did not err in determining that it did not have specific jurisdiction over
    Linkup.
    B.	    The Superior Court Did Not Misconstrue And Misapply The Law
    Regarding The Place Of Harper’s Injury.
    Harper argues that the superior court “misconstrued and misapplied law
    regarding the place of [her] injury,” pointing specifically to the superior court’s comment
    54
    On appeal, BioLife and Linkup appear to have abandoned this allegation,
    apparently conceding that “Linkup is the parent company of [BioLife].”
    -17-	                                     7294
    that “even if Harper had demonstrated that Bio[L]ife sold a large volume of its goods
    through its website to Alaskans, this does not appear to be relevant to whether or not
    Bio[L]ife’s allegedly false advertising using Harper’s name caused her any harm
    whatsoever.”55 In Keeton v. Hustler Magazine, Inc., the Supreme Court explained that
    “[t]he tort of libel is generally held to occur wherever the offending material is
    circulated.”56 Since the offending material in this case was accessible on BioLife’s
    website in Alaska, BioLife could be said to have “circulated” it in Alaska, thereby
    arguably injuring Harper in Alaska. But the defendant magazine’s contacts with the
    forum state in Keeton consisted of the continuous and deliberate shipping of the
    offending material into that state.57 Here, the only active contacts Harper alleges BioLife
    had with Alaska are unrelated to the offending material. And the superior court properly
    drew this distinction. The superior court made no comment as to where any injury to
    Harper took place; it neither construed nor applied the law regarding the place of
    Harper’s injury at all, much less incorrectly. Thus, the court did not misconstrue or
    misapply the law regarding the place of Harper’s injury.
    C.	    The Superior Court Did Not Abuse Its Discretion In Denying Harper’s
    Request To Allow Further Jurisdictional Discovery.
    Harper finally argues that the superior court abused its discretion by
    refusing to “open the case for further jurisdictional discovery before dismissing it on
    55
    Harper cites Rosa & Raymond Parks Institute for Self Development v.
    Target Corp., 
    90 F. Supp. 3d 1256
    (M.D. Ala. 2015), aff’d 
    812 F.3d 824
    (11th Cir. 2016),
    in support of her argument. But that case dealt with choice-of-law rules, which is a
    separate issue from whether a court can appropriately exercise personal jurisdiction over
    a defendant. 
    Id. at 1260-61.
           56
    
    465 U.S. 770
    , 777 (1984).
    57
    
    Id. at 781.
    -18-	                                     7294
    jurisdictional grounds” and that the court improperly “rel[ied] solely on its own reading
    and cred[i]bility determination of the Appellees, who each have a very substantial self-
    interest in the outcome of this litigation.” Citing several Ninth Circuit cases,58 she argues
    that “where affidavits are directly conflicting on material points, it is not possible for the
    district court to ‘weigh’ the affidavits in order to resolve disputed issues,” and for that
    reason, “a plaintiff must make only a prima facie showing of jurisdictional facts through
    the submitted materials in order to avoid a defendant’s motion to dismiss.”59
    As explained above, “[w]hen considering the appeal of a motion to dismiss
    we ‘presume all factual allegations of the complaint to be true and make all reasonable
    inferences in favor of the non-moving party.’ ”60 The superior court’s order does
    indicate that the court considered the defendants’ jurisdictional assertions more credible
    than Harper’s: specifically, it noted that “according to [BioLife’s] records, BioLife has
    never made a sale to an Alaska resident.” Under the applicable standard, the court
    should have taken Harper’s allegations as true and assumed that BioLife had fulfilled
    “several orders from Alaska.”
    Regardless, this error was harmless: it is clear from the superior court’s
    order that its ultimate decision was not based on disputed facts. The court concluded that
    no personal jurisdiction existed, not because BioLife had insufficient contacts with
    Alaska, but because the alleged contacts were not relevant to Harper’s actual claims: the
    court stated, “Although Bio[L]ife arguably did at one time purposefully direct its
    58
    See, e.g., Schwarzenegger v. Fred Martin Motor Co., 
    374 F.3d 797
    (9th Cir.
    2004); Data Disc, Inc. v. Sys. Tech. Assocs., Inc., 
    557 F.2d 1280
    (9th Cir. 1977).
    59
    See Data Disc, 
    Inc., 557 F.2d at 1285
    .
    60
    Neese v. Lithia Chrysler Jeep of Anchorage, Inc., 
    210 P.3d 1213
    , 1217
    (Alaska 2009) (quoting Rathke v. Corr. Corp. of Am., 
    153 P.3d 303
    , 308 (Alaska 2007)).
    -19-                                        7294
    activities to Alaska residents, the claims at issue in this case do not relate to or arise from
    those activities.” Harper cites no authority for the proposition that the superior court is
    required to open the case for jurisdictional discovery when the plaintiff has failed to
    allege facts that would allow jurisdiction if construed in the light most favorable to the
    plaintiff. It was not an abuse of discretion for the superior court to decline opening the
    case for jurisdictional discovery.
    V.     CONCLUSION
    We AFFIRM the superior court’s order dismissing Harper’s suit.
    -20-                                        7294
    

Document Info

Docket Number: 7294 S-16488

Citation Numbers: 426 P.3d 1067

Filed Date: 9/14/2018

Precedential Status: Precedential

Modified Date: 1/12/2023

Authorities (25)

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Magden v. Alaska USA Federal Credit Union , 36 P.3d 659 ( 2001 )

S.B. v. State, Department of Health & Social Services, ... , 61 P.3d 6 ( 2002 )

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Neese v. LITHIA CHRYSLER JEEP OF ANCHORAGE , 210 P.3d 1213 ( 2009 )

Polar Supply Co. v. Steelmaster Industries, Inc. , 127 P.3d 52 ( 2005 )

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Griffis v. Luban , 646 N.W.2d 527 ( 2002 )

Pavlovich v. Superior Court , 127 Cal. Rptr. 2d 329 ( 2002 )

International Shoe Co. v. Washington , 66 S. Ct. 154 ( 1945 )

Data Disc, Incorporated v. Systems Technology Associates, ... , 557 F.2d 1280 ( 1977 )

arnold-schwarzenegger-v-fred-martin-motor-company-an-ohio-corporation , 374 F.3d 797 ( 2004 )

Zippo Mfg. Co. v. Zippo Dot Com, Inc. , 952 F. Supp. 1119 ( 1997 )

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