IMO Ind Inc v. Kiekert AG ( 1998 )


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  •                                                                                                                            Opinions of the United
    1998 Decisions                                                                                                             States Court of Appeals
    for the Third Circuit
    9-3-1998
    IMO Ind Inc v. Kiekert AG
    Precedential or Non-Precedential:
    Docket 97-5356
    Follow this and additional works at: http://digitalcommons.law.villanova.edu/thirdcircuit_1998
    Recommended Citation
    "IMO Ind Inc v. Kiekert AG" (1998). 1998 Decisions. Paper 215.
    http://digitalcommons.law.villanova.edu/thirdcircuit_1998/215
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    Filed September 3, 1998
    UNITED STATES COURT OF APPEALS
    FOR THE THIRD CIRCUIT
    NO. 97-5356
    IMO INDUSTRIES, INC.
    Appellant
    v.
    KIEKERT AG
    Appellee
    On Appeal From the United States District Court
    For the District of New Jersey
    (D.C. Civ. No. 96-cv-05881)
    Argued: January 22, 1998
    Before: BECKER,* STAPLETON, Circuit Judges,
    and POLLAK, District Judge.**
    (Filed September 3, 1998)
    ROBERT G. SUGARMAN, ESQUIRE
    (ARGUED)
    GERALD A. STEIN, ESQUIRE
    Weil, Gotshal & Manges LLP
    767 Fifth Avenue
    New York, NY 10153
    _________________________________________________________________
    *Honorable Edward R. Becker, United States Circuit Judge for the Third
    Circuit, assumed Chief Judge status on February 1, 1998.
    **Honorable Louis H. Pollak, United States District Judge for the Eastern
    District of Pennsylvania, sitting by designation.
    GERALD KROVATIN, ESQUIRE
    Arseneault & Krovatin
    560 Main Street
    Chatham, NJ 07928
    Attorneys for Appellant
    IMO Industries
    PETER BARNES, ESQUIRE
    (ARGUED)
    FRANZ M. OPPENHEIMER,
    ESQUIRE
    BARBARA M. TAPSCOTT, ESQUIRE
    Swidler & Berlin, Chartered
    3000 K Street, NW
    Suite 300
    Washington, DC 20007-5116
    DOUGLAS S. EAKELEY, ESQUIRE
    NEIL P. HORNE, ESQUIRE
    Lowenstein, Sandler, Kohl,
    Fisher & Boylan
    A Professional Corporation
    65 Livingston Avenue
    Roseland, NJ 07068
    Attorneys for Appellee
    Kiekert A.G.
    OPINION OF THE COURT
    BECKER, Chief Judge.
    This is a long arm service of process case which requires
    us, for the first time, to apply the Supreme Court's decision
    in Calder v. Jones, 
    465 U.S. 783
    (1984), to a business tort.
    It comes before us on the appeal of the plaintiff, Imo
    Industries Inc. ("Imo"), a multinational corporation with its
    principal place of business in New Jersey, from an order of
    the district court dismissing its action pursuant to Fed. R.
    Civ. P. 12(b)(2) for lack of personal jurisdiction over
    defendant Kiekert AG ("Kiekert"), a German corporation.
    The complaint alleges that Kiekert tortiously interfered with
    2
    Imo's attempt to sell its wholly-owned Italian subsidiary to
    a French corporation that was one of Kiekert's competitors.
    The asserted mechanism by which the tort was
    accomplished was a series of letters sent by Kiekert to the
    Italian subsidiary and to the New York investmentfirm of
    C.S. First Boston, Imo's representative in the sale,
    threatening that Kiekert would revoke the licensing
    agreement it had with the subsidiary if the deal went
    through. According to Imo, the sale was never
    consummated because of these threats, causing it
    considerable loss.
    Imo contends that personal jurisdiction over Kiekert was
    proper based upon its contacts with Imo in New Jersey and
    upon Kiekert's claimed commission of an intentional tort,
    the effects of which were allegedly felt by Imo in New
    Jersey. Because we conclude that Kiekert's contacts with
    the forum would not otherwise satisfy the requirements of
    due process, the question whether personal jurisdiction can
    be exercised here depends upon the applicability to the
    facts of Calder, in which the Supreme Court found personal
    jurisdiction to be proper over nonresident defendants that
    committed an intentional tort outside the forum, the unique
    effects of which caused damage to the plaintiff within the
    forum. We believe that for Calder to apply, the plaintiff
    must allege facts sufficient to meet a three-prong test. First,
    the defendant must have committed an intentional tort.
    Second, the plaintiff must have felt the brunt of the harm
    caused by that tort in the forum, such that the forum can
    be said to be the focal point of the harm suffered by the
    plaintiff as a result of the tort. Third, the defendant must
    have expressly aimed his tortious conduct at the forum,
    such that the forum can be said to be the focal point of the
    tortious activity.
    Applying this test to the present facts, we conclude that
    personal jurisdiction does not exist here since Imo has not
    pointed to sufficient facts demonstrating that Kiekert
    "expressly aimed" its tortious conduct at New Jersey. To the
    contrary, the focus of the dispute -- i.e. the proposed sale
    of an Italian company to a French company and a claim of
    rights by a German company pursuant to a license
    agreement apparently governed by German law -- and the
    3
    alleged contacts by Kiekert (i.e., its correspondence) all
    appear to be focused outside the forum. The order of the
    district court will therefore be affirmed.
    I. Facts and Procedural History
    For purposes of this appeal, we accept the plaintiff 's
    allegations as true. See Carteret Savings Bank, FA v.
    Shushan, 
    954 F.2d 141
    , 142 (3d Cir. 1992) (holding that an
    appellate court reviewing an order of the district court
    dismissing a case for lack of personal jurisdiction"must
    accept all of the plaintiff 's allegations as true and construe
    disputed facts in favor of plaintiff.") (citing In re Arthur
    Treacher's Franchisee Litigation, 
    92 F.R.D. 398
    , 409-10
    (E.D. Pa. 1981)). However, the plaintiff bears the burden of
    proving that personal jurisdiction is proper. Carteret
    Savings 
    Bank, 954 F.2d at 146
    (Once a defendant raises
    the defense of lack of personal jurisdiction, "the plaintiff
    bears the burden to prove, by a preponderance of evidence,
    facts sufficient to establish personal jurisdiction.") (citing
    Time Share Vacation v. Atlantic Resorts, Ltd., 
    735 F.2d 61
    ,
    65 (3d Cir. 1984)).
    Defendant Kiekert, a manufacturer of automobile door
    latch systems, is a corporation organized, existing under
    the laws of, and having its principal place of business in
    the Federal Republic of Germany. Kiekert sells its products
    world-wide, though only 2% of its sales derive from the
    United States market.1 According to Kiekert, it does not
    now engage, nor has it ever engaged in any of the following
    activities in New Jersey: "the manufacture of any products;
    any direct sales; solicitation or advertisement to sell its
    products; any shipment of merchandise directly into or
    through the state, or the supply of services there; the
    maintenance of an office, a mailing address, a telephone
    number, or a bank account; the ownership of any real or
    personal property; the employment of any employees or
    agents; or the requirement of or payment of taxes."
    _________________________________________________________________
    1. Kiekert's promotional literature projects that the United States market
    will comprise thirty percent of its sales by the year 2000. Since this is
    but a projection, it does not affect the outcome here.
    4
    Appellee's Br. at 4. Imo does not appear to dispute these
    claims.
    Plaintiff Imo, a multinational corporation, is incorporated
    in Delaware with its principal place of business in
    Lawrenceville, New Jersey. Imo has 22 manufacturing
    facilities around the world, including plants in Germany,
    the United Kingdom, France and Australia. Approximately
    90% of Imo's products are marketed outside of the United
    States, and approximately 34% of Imo's total net sales for
    1995 were in these foreign markets. Most relevant to the
    present case is the fact that Imo owns all of the shares of
    an Italian company, Roltra Morse, S.p.A. ("Roltra"), which
    manufactures automobile door latches using technology
    licensed from Kiekert. The licensing agreement was
    negotiated in Germany and Italy in 1993 and it provides
    that the agreement shall be governed by German law. Imo
    was not a party to this licensing agreement and did not
    participate in the negotiation or execution thereof.
    In December 1995, Imo decided to sell its shares in
    Roltra and retained the New York investment firm of C.S.
    First Boston Corporation ("First Boston") to act as its
    representative. On Imo's behalf, First Boston solicited bids
    from corporations interested in acquiring Imo's shares of
    Roltra. Valeo, S.A. ("Valeo"), a French corporation and one
    of Kiekert's competitors, submitted a bid of $72 million for
    the shares. Kiekert also submitted a bid, though for only
    $30 million. Imo and Valeo thereafter proceeded to prepare
    final agreements to close the sale of Roltra's stock for $69
    million, and Kiekert was notified on or about June 12,
    1996, that its bid was insufficient.
    Shortly thereafter, and prior to closing, Kiekert sent a
    letter to First Boston in New York stating that, under its
    agreement with Roltra, Kiekert had the right to revoke its
    license for the door latch technology if Roltra's shares were
    sold to one of its competitors. More specifically, the letter to
    First Boston, dated June 17, 1996, stated in pertinent part
    that "Kiekert's license and patents . . . cannot be
    transferred if [Roltra] is taken over by one of our
    competitors" and if this occurs, Kiekert "would have to
    retire [its] acceptance of production for these products
    immediately which are manufactured under our license."
    5
    The import of such an action was clear -- if the license was
    revoked, Roltra's value as a going concern would be
    severely impacted. In addition, Kiekert wrote to Roltra in
    Italy on July 8, 1996, similarly stating Kiekert's intent to
    terminate the licensing agreement if Roltra's shares were
    sold to a competitor.
    First Boston forwarded the June 17 letter to Imo in New
    Jersey. Imo responded directly to Kiekert by letter dated
    July 9, 1996, stating its position that Kiekert was"not
    entitled by contract or law to rescind or otherwise terminate
    the License Agreement in the event of sale of the shares to
    any third party." Imo demanded "that [Kiekert] cease and
    desist from making such statements to any third party,"
    and advised that if it "continue[s] to make such statements
    [it] . . . will be held responsible for all damages that [Roltra]
    and/or its shareholders suffer from such representations."
    Roltra also forwarded the July 8 letter to Imo in New
    Jersey. Imo again responded directly to Kiekert by letter
    dated August 12, stating that its "tortious and illegal
    conduct is seriously jeopardizing [our] ability to close this
    transaction," and that "unless you immediately withdraw
    your threats of termination, we are prepared tofile lawsuits
    in all appropriate jurisdictions, including the United States
    . . ."
    In addition to the mail contacts, Kiekert officials in
    Germany and Imo officials in New Jersey spoke twice by
    telephone during this time concerning the license
    agreement. The record reveals that representatives of Imo
    initiated these calls. See Appellant's Br. at 21. Finally, Imo
    requested meetings with Kiekert in an attempt to resolve
    the matter. One such meeting was held in Toronto on
    August 27, 1996, and two more were held on September 10
    of that year in Germany. These discussions apparently
    failed to persuade Kiekert to change its position.
    On October 28, 1996, Valeo advised Imo of its withdrawal
    from negotiations concerning the sale of Roltra's shares. By
    letter, it informed Imo that "[w]e have concluded that,
    irrespective of the likelihood that Kiekert's position would
    prevail, Kiekert's position regarding its license can be
    expected to have a disruptive impact on the business of
    6
    Roltra . . . and in particular create disturbances with
    customers during the period of any litigation."
    Imo thereafter sued in the District Court for the District
    of New Jersey, alleging that Kiekert's actions constituted
    tortious activity and caused significant damage to it in New
    Jersey. Subject matter jurisdiction was premised on
    diversity of citizenship. See 28 U.S.C.S 1332. According to
    Imo, Valeo's decision to break off the contract negotiations
    was directly caused by Kiekert's steadfast assertion of its
    intent to revoke its license if the proposed sale was
    consummated. As a result, Imo alleges that it has suffered
    injuries in numerous forms due to its inability to
    consummate the deal. First, Imo alleges that the sale to
    Valeo would have resulted in a profit of more than $20
    million. Second, Imo submits that, because of its inability
    to sell the Roltra shares, it has been forced to reclassify
    Roltra as a continuing operation, with a concomitant
    restatement of its third quarter earnings. This has allegedly
    resulted in the reversal of a favorable $10 million tax
    benefit based on the anticipated sale, the recognition of
    $4.8 million in previously deferred 1996 losses relating to
    Roltra, liabilities for banking and legal fees, as well as the
    diminution of Roltra's stock value. See Appellant's Br. at 9.
    Kiekert moved to dismiss Imo's action for lack of personal
    jurisdiction, contending that it did not have the requisite
    minimum contacts with New Jersey to sustain jurisdiction
    in that forum. The district court granted the motion. We
    review de novo the district court's dismissal for lack of
    personal jurisdiction. Vetrotex Certainteed Corp. v.
    Consolidated Fiber Glass Products Co., 
    75 F.3d 147
    , 150
    (3d Cir. 1996) ("Whether personal jurisdiction may be
    exercised over an out-of-state defendant is a question of
    law, and this court's review is therefore plenary."); Madara
    v. Hall, 
    916 F.2d 1510
    , 1514 (11th Cir. 1990).
    II. Due Process Limits on the Exercise of Personal
    Jurisdiction
    The fundamental principles of long arm jurisdiction are
    extremely familiar and, since they have been repeated
    countless times in the jurisprudence, little will be served by
    7
    rescribing them at any length here. In brief, to exercise
    personal jurisdiction over a defendant, a federal court
    sitting in diversity must undertake a two-step inquiry.
    First, the court must apply the relevant state long-arm
    statute to see if it permits the exercise of personal
    jurisdiction; then, the court must apply the precepts of the
    Due Process Clause of the Constitution. In New Jersey, this
    inquiry is collapsed into a single step because the New
    Jersey long-arm statute permits the exercise of personal
    jurisdiction to the fullest limits of due process. See
    DeJames v. Magnificence Carriers, Inc., 
    654 F.2d 280
    , 284
    (3d Cir. 1981). This being the case, the New Jersey
    Supreme Court has made it clear that New Jersey courts
    look to federal law for the interpretation of the limits on in
    personam jurisdiction. Mesalic v. Fiberfloat Corp., 
    897 F.2d 696
    , 698 n.5 (3d Cir. 1990).
    Personal jurisdiction under the Due Process Clause
    depends upon "the relationship among the defendant, the
    forum, and the litigation." Shaffer v. Heitner, 
    433 U.S. 186
    ,
    204 (1977). Physical presence within the forum is not
    required to establish personal jurisdiction over a
    nonresident defendant. See Burger King Corp. v. Rudzewicz,
    
    471 U.S. 462
    , 476 (1985). Instead, the plaintiff must show
    that the defendant has purposefully directed its activities
    toward the residents of the forum state, see 
    id. at 472,
    or
    otherwise "purposefully avail[ed] itself of the privilege of
    conducting activities within the forum State, thus invoking
    the benefits and protections of its laws." See Hanson v.
    Denckla, 
    357 U.S. 235
    , 253 (1958).
    Where, as here, the plaintiff 's cause of action is related
    to or arises out of the defendant's contacts with the forum,
    the court is said to exercise "specific jurisdiction." See
    Helicopteros Nacionales de Columbia, S.A. v. Hall , 
    466 U.S. 408
    , 414 n.8 (1984).2 In order for specific jurisdiction to be
    _________________________________________________________________
    2. If the plaintiff 's claim does not arise out of the defendant's
    contacts
    with the forum, the court is said to exercise "general jurisdiction." See
    
    Helicopteros, 466 U.S. at 414
    & n.9. To establish general jurisdiction
    over a defendant, the contacts must be shown to be"continuous and
    systematic". See 
    id. at 416.
    Imo does not contend that the New Jersey
    courts could exercise general jurisdiction over Kiekert.
    8
    properly exercised under the Due Process Clause, the
    plaintiff must satisfy a two-part test. First, the plaintiff
    must show that the defendant has constitutionally
    sufficient "minimum contacts" with the forum. See Burger
    King Corp. v. Rudzewicz, 
    471 U.S. 462
    , 474 (1985). Second,
    for jurisdiction to be exercised the court must determine, in
    its discretion, "that to do so would comport with`traditional
    notions of fair play and substantial justice.' " See 
    Vetrotex, 75 F.3d at 150-51
    (citing International Shoe Co. v.
    Washington, 
    326 U.S. 310
    (1945)). Although this case
    raises some interesting issues regarding the application of
    the "fair play and substantial justice" standard, we need
    not reach them since, as we discuss below, Imo has not
    met its burden of demonstrating Kiekert's minimum
    contacts with the forum.
    We note initially that specific jurisdiction will not lie here
    on the basis of Kiekert's alleged contacts with the forum
    alone, for (as we detail in the margin) they are far too small
    to comport with the requirements of due process. 3 Since
    (Text continued on page 11)
    _________________________________________________________________
    3. In brief, Imo argues that specific jurisdiction can be premised on the
    following contacts: (1) the June 17 letter from Kiekert to First Boston;
    (2)
    the July 8 letter from Kiekert to Roltra; (3) the two phone calls from
    Imo's general counsel in New Jersey to Kiekert; and (4) the August and
    September face-to-face meetings in Toronto and Germany. Although
    neither of Kiekert's letters were sent to New Jersey, Imo asserts that
    Kiekert "certainly knew" that its correspondence would both be
    transmitted to Imo in New Jersey and cause injury to Imo there.
    Appellant's Br. at 19. Similarly, Imo contends that Kiekert knew that the
    face-to-face meetings, though occurring outside the United States, would
    result in injury to Imo in New Jersey.
    We believe that these contacts, considered as a whole, are insufficient
    to demonstrate, even at a minimal level, that Kiekert has purposefully
    directed its activities toward the forum or has purposefully availed
    itself
    of the privilege of conducting its activities within the forum. The weight
    of authority among the courts of appeal is that minimal communication
    between the defendant and the plaintiff in the forum state, without more,
    will not subject the defendant to the jurisdiction of that state's court
    system. For instance, this court in Carteret Savings 
    Bank, 954 F.2d at 149
    , noted that "some minimal correspondence alone will not satisfy
    minimum contacts." This conclusion has been reached by a number of
    the other circuits, and we respect the weight of this authority. See,
    e.g.,
    9
    Stover v. O'Connell Associates, Inc., 
    84 F.3d 132
    , 137 (4th Cir.), cert.
    denied ___ U.S. ___, 
    117 S. Ct. 437
    (1996) ("Ordering a product or
    service by telephone from a company in a different state does not subject
    the customer to that state's jurisdiction."); Far West Capital, Inc. v.
    Towne, 
    46 F.3d 1071
    , 1077 (10th Cir. 1995) ("It is well-established that
    phone calls and letters are not necessarily sufficient in themselves to
    establish minimum contacts."); Reynolds v. Int'l Amateur Athletic Fed.,
    
    23 F.3d 1110
    , 1119 (6th Cir. 1994) ("The use of interstate facilities such
    as the telephone and mail is a secondary or ancillary factor and cannot
    alone provide the minimum contacts required by due process.") (quoting
    Scullin Steel Co. v. National Railway Utilization Corp., 
    676 F.2d 309
    , 314
    (8th Cir. 1982) (internal quotation marks omitted)); Cote v. Wadel, 
    796 F.2d 981
    , 984 (7th Cir. 1986) (finding insufficient a "handful" of letters
    and phone calls exchanged between plaintiff and defendant).
    In the present case, not only are the communications limited in
    quantity, but there is not even one direct act of"entry" into New Jersey
    by Kiekert -- the letters were sent to Italy and New York, the phone calls
    were placed by Imo itself, and the meetings were held in Canada and
    Germany. While in some cases there might be merit to the argument
    that correspondence sent to a third-party outside the forum which
    foreseeably would wind up within the forum could weigh in favor of a
    finding of specific jurisdiction being properly exercised, in the present
    case we are not persuaded that the Kiekert letters provide such weight.
    The same must be said for the two phone calls, which strike us as
    purely unilateral conduct by Imo. See 
    Hanson, 357 U.S. at 253
    ("[T]he
    unilateral activity of those who claim some relationship with a
    nonresident defendant cannot satisfy the requirement of contact with the
    forum State.").
    There is also an aspect of foreseeability that we believe is missing in
    this case. The Supreme Court has concluded that"foreseeability alone
    has never been a sufficient benchmark for personal jurisdiction under
    the Due Process Clause . . . . [T]he foreseeability that is critical to
    due
    process analysis is . . . . that the defendant's conduct and connection
    with the forum State are such that he should reasonably anticipate
    being haled into court there." World-Wide Volkswagen Corp. v. Woodson,
    
    444 U.S. 286
    , 295-97 (1980) (internal quotation marks omitted). We do
    not believe that it was reasonably foreseeable to Kiekert that its
    connection with New Jersey was such that that it should reasonably
    have anticipated being haled into court there. From Kiekert's perspective,
    it entered into a License Agreement with an Italian company in
    Germany, which was to be governed by German law. Imo took no part
    at all in these contract negotiations. It was perfectly reasonable,
    10
    this is an intentional tort case, we must consider whether
    the application of Calder v. 
    Jones, supra
    , can change the
    outcome. Generally speaking, under Calder an intentional
    tort directed at the plaintiff and having sufficient impact
    upon it in the forum may suffice to enhance otherwise
    insufficient contacts with the forum such that the
    "minimum contacts" prong of the Due Process test is
    satisfied. See Keeton v. Hustler Magazine, Inc., 
    465 U.S. 770
    , 780 (1984). We therefore concentrate our minimum
    contacts discussion below on the Calder test.
    III. The Import of Calder v. Jones
    A. The Calder Holding
    In Calder, entertainer Shirley Jones brought an action in
    California against the author and editor of an article which
    had appeared in the National Enquirer, and which she
    claimed was defamatory. The article alleged that Jones had
    a problem with alcohol which prevented her from fulfilling
    her professional obligations. Although the Enquirer was
    distributed nationally, it had its largest circulation in
    California. Defendant South, the reporter, did most of his
    research in Florida, relying on phone calls to California for
    information. Defendant Calder had no such contacts with
    California. He reviewed and approved the initial evaluation
    of the topic of the article and edited drafts to itsfinal form.
    See 
    id. at 785-86.
    Both defendants, residents of Florida,
    moved to dismiss Jones' suit for lack of personal
    jurisdiction.
    The Court found that the exercise of personal jurisdiction
    over the defendants was proper. The Court concluded:
    The allegedly libelous story concerned the California
    activities of a California resident. It impugned the
    professionalism of an entertainer whose television
    career was centered in California. The article was
    drawn from California sources, and the brunt of the
    _________________________________________________________________
    therefore, for Kiekert to believe when it entered into the agreement, that
    it would be able to enforce its rights under the contract without being
    subject to the jurisdiction of the New Jersey courts.
    11
    harm, in terms of both respondent's emotional distress
    and the injury to her professional reputation, was
    suffered in California. In sum, California is the focal
    point both of the story and of the harm suffered.
    Jurisdiction over petitioners is therefore proper in
    California based on the "effects" of their Florida
    conduct in California. . . . [T]heir intentional, and
    allegedly tortious, actions were expressly aimed at
    California. Petitioner South wrote and petitioner Calder
    edited an article that they knew would have a
    potentially devastating impact upon respondent. And
    they knew that the brunt of that injury would be felt by
    respondent in the State in which she lives and works
    and in which the National Enquirer has its largest
    circulation.
    
    Id. at 788-90
    (footnote omitted). It is from this passage that
    courts have drawn what has come to be known as the
    Calder "effects test." We have observed that under this test
    a court may exercise personal jurisdiction over a
    nonresident defendant who commits an intentional tort by
    certain acts outside the forum which have a particular type
    of effect upon the plaintiff within the forum. See Carteret
    Savings 
    Bank, 954 F.2d at 148
    .4 Imo argues that the
    present case falls within Calder's purview because Kiekert
    "set upon a deliberate and intentional course designed to
    prevent Imo from selling Roltra to one of Kiekert's
    competitors," and because "Kiekert's tortious conduct was
    specifically aimed at and caused injury to Imo (a New
    Jersey resident) within the State of New Jersey." Appellant's
    Br. at 15. We disagree.
    B. Calder and Business Torts
    Calder's holding cannot be severed from its facts. In order
    to reach the conclusion that jurisdiction was properly
    exercised by the California court in that case, the Supreme
    Court relied on three principal findings. First, the
    defendant committed an intentional tort. Second, the forum
    was the focal point of the harm suffered by the plaintiff as
    a result of that tort. Third, the forum was the focal point of
    _________________________________________________________________
    4. We note that the interpretation of Calder in Carteret Savings Bank was
    not necessary to our holding, and was therefore dicta.
    12
    the tortious activity in the sense that the tort was
    "expressly aimed" at the forum. Essential was a corollary
    finding that the defendants knew that the "brunt" of the
    injury caused by their tortious acts would be felt by the
    plaintiff in the forum. In applying Calder outside the
    defamation context, courts have adopted varying versions of
    these factors as the "effects test," yielding a mixture of
    broad and narrow interpretations. Since we have not
    applied Calder to a case involving business torts, we turn
    to a subset of these cases for guidance.
    The majority of our sister circuits that have considered
    the application of Calder to business torts have adopted a
    narrow construction. One such case is Far West Capital,
    Inc. v. Towne, 
    46 F.3d 1071
    (10th Cir. 1995), which
    assessed the following facts to determine the existence vel
    non of personal jurisdiction in Utah. Towne, a Nevada
    resident who owned real property in Nevada, negotiated
    with plaintiff Far West Capital ("FWC"), a Utah corporation,
    which was interested in developing Towne's land. Although
    the negotiations occurred in Nevada, Towne sent a number
    of letters and faxes to the plaintiff in Utah, and there was
    an escrow account set up in Utah. Furthermore, during the
    negotiations Towne hired a consultant, a Utah resident,
    who occasionally picked up materials from FWC in Utah.
    The parties ultimately entered into a lease, which included
    a provision that the agreement would be governed by
    Nevada law. FWC subsequently negotiated with a third
    party in California regarding financing for the construction
    of a power plant on the property. Towne interfered, and
    FWC brought suit in Utah for, inter alia, intentional
    interference with contractual relations. See 
    id. at 1073-74.
    Towne claimed that she was not subject to personal
    jurisdiction in Utah for lack of minimum contacts. FWC
    rejoined that personal jurisdiction was proper under Calder
    because Towne had intentionally committed torts against it
    in Utah. The Tenth Circuit held that jurisdiction would not
    lie under Calder. See 
    id. at 1080.
    The court noted initially
    that Calder did not set forth a per se rule that the
    allegation of an intentional business tort alone is sufficient
    to confer personal jurisdiction in the forum where the
    plaintiff resides. See 
    id. at 1078.
    Instead, the court held
    13
    that it must still examine the "prior negotiations and
    contemplated future consequences along with the terms of
    the contract and the parties' actual course of dealing" and
    "the contacts created by the out-of-state defendant in
    committing the alleged tort." 
    Id. at 1079-80.
    The court
    concluded that, on the facts of this case:
    [T]here is no indication that Utah had anything but a
    fortuitous role in the parties past dealing or would
    have any role in their continuing relationship. . . .
    There is thus no evidence that defendants' alleged torts
    had any connection to Utah beyond plaintiff 's
    corporate domicile. Although FWC argues that it
    suffered the financial effects of these alleged torts in
    Utah where it is incorporated, we hold that under
    Calder and its progeny, the defendants' contacts with
    Utah are insufficient to establish personal jurisdiction
    in this case.
    
    Id. at 1080.
    On facts strikingly similar to our own, the Fifth Circuit
    reached a similar conclusion in Southmark Corp. v. Life
    Investors Inc., 
    851 F.2d 763
    (5th Cir. 1988). There, the
    question was whether personal jurisdiction would lie
    properly in Texas. Defendant Life Investors Inc. ("Life")
    owned 22% of the outstanding shares of International Bank
    ("IB") stock. Southmark, a Georgia corporation with its
    principal place of business in Texas, began negotiating with
    Life to purchase its shares of IB, with Southmark
    contending that the parties had ultimately formed a
    contract. Life, however, sold its shares to USLICO.
    Southmark brought suit in Texas against Life and joined
    USLICO as a defendant, claiming tortious interference with
    the alleged contract and business relations. USLICO, a
    Virginia corporation, moved to dismiss for lack of personal
    jurisdiction. Relying principally on Calder, Southmark
    contended that the exercise of specific jurisdiction was
    proper because USLICO had committed an intentional tort
    against it in Texas with knowledge that it was a Texas
    resident. See 
    id. at 772.
    The court rejected this argument, holding that "there is
    no evidence that USLICO expressly aimed its allegedly
    14
    tortious activities at Texas, nor is there evidence that
    USLICO knew the brunt of Southmark's injury would be felt
    there." 
    Id. Moreover, the
    court found that "nothing in the
    record indicates that USLICO expressly aimed its allegedly
    tortious activities at Texas, or that Texas is even the focal
    point of USLICO's tortious conduct." 
    Id. at 773.
    The court
    also underscored the fact that the oral agreement with
    which USLICO allegedly interfered was negotiated outside of
    the forum state, and there was no evidence that the
    agreement was made or to be performed in the forum or
    governed by its laws. See 
    id. at 772-73.
    The court concluded that the fact that the plaintiff had
    its principal place of business in the forum was a"mere
    fortuity," and declined to exercise jurisdiction. See 
    id. at 773.
    Importantly, the court reasoned:
    While it may be true that USLICO agreed to buy the
    stock knowing that Southmark has its principal place
    of business in Texas, and that Southmark is therefore
    a Texas resident for jurisdictional purposes, we do not
    think this fact standing alone would cause USLICO to
    anticipate being haled into a Texas court to answer for
    its conduct.
    
    Id. In other
    words, the Fifth Circuit was unconvinced of two
    critical facts. First, the court was not persuaded that
    Southmark would feel the brunt of the injury caused by
    USLICO in Texas simply because its principal place of
    business was located there. See 
    id. Second, the
    court was
    not persuaded that USLICO's intent to interfere with the
    contractual relations of a company residing in Texas
    necessarily meant that USLICO had "expressly aimed" its
    tortious conduct at Texas. 
    Id. at 772.
    This concern over whether a court can automatically
    infer that a defendant expressly aimed its tortious conduct
    at the forum from the fact that that defendant knew that
    the plaintiff resided in the forum was also addressed in
    Esab Group, Inc. v. Centricut, Inc., 
    126 F.3d 617
    (4th Cir.
    1997), cert. denied ___U.S. ___, 
    118 S. Ct. 1364
    (1998).
    Plaintiff, a Delaware corporation residing in South Carolina,
    brought suit in South Carolina alleging that the defendant,
    a New Hampshire company, participated in a conspiracy to
    15
    appropriate plaintiff 's trade secrets and customer lists. All
    the alleged co-conspirators were either Florida or New
    Hampshire residents. The only South Carolina "contact" in
    the case was the defendant's knowledge that his acquisition
    of the trade secrets could result in lowered sales for the
    plaintiff. 
    Id. at 625.
    The Fourth Circuit concluded that this
    knowledge alone did not "manifest behavior intentionally
    targeted at and focused on South Carolina" under Calder.
    
    Id. The court
    further reasoned that while it is true that a
    corporation "feels" lost sales at its headquarters, permitting
    Calder to be satisfied on this basis would mean that
    jurisdiction in intentional tort cases would always be
    appropriate in the plaintiff 's home state, since the plaintiff
    always "feels" the impact of the tort there. 
    Id. at 625-26.
    In sum, Far West, Southmark and Esab Group all stand
    for the proposition that the mere allegation that the plaintiff
    feels the effect of the defendant's tortious conduct in the
    forum because the plaintiff is located there is insufficient to
    satisfy Calder. In all of those cases, the plaintiffs failed to
    point to other actions that adequately demonstrated that
    the defendants targeted (or "expressly aimed" their conduct
    at) the forum, and thereby showed that the forum was the
    focal point of the tortious activity. See also General Electric
    Capital Corp. v. Grossman, 
    991 F.2d 1376
    , 1387-88 (8th
    Cir. 1993) (concluding that Calder is of little help to a
    plaintiff where the "focal point of the alleged wrongdoing"
    occurred outside of the forum even where the "effects of the
    harm" occurred in that state); Noonan v. Winston Co., 
    135 F.3d 85
    , 90-91 (1st Cir. 1988) (holding that Calder test was
    not satisfied because defendants did not target forum even
    though plaintiffs felt tortious effect there). Moreover, Calder
    requires that the "brunt" of the harm be felt in the forum.
    See 
    Calder, 465 U.S. at 789
    . These cases cast doubt on the
    assertion that a company will feel the "brunt" of a tort
    injury at its principal place of business when that injury is
    based on damage to contracts or property not centered in
    the forum.
    There is one counterpoint, however, for the Seventh
    Circuit recently endorsed a broader reading of Calder. In
    Janmark, Inc. v. Ready, 
    132 F.3d 1200
    (7th Cir. 1997),
    both plaintiff and defendant sold mini shopping carts
    16
    nationwide; Janmark did so from its base in Illinois, and
    Ready (through his company Dreamkeeper) from California.
    Ready believed that he had a copyright in the Dreamkeeper
    cart design, and tried to use his copyright claim to
    "orchestrate an agreement" among all mini shopping-cart
    sellers. 
    See 132 F.3d at 1202
    . Janmark resisted Ready's
    overtures, and Ready allegedly responded by threatening
    Janmark's customers with suits for contributory copyright
    infringement. According to Janmark, one such threat
    induced a customer in New Jersey to cease buying from
    Janmark, which Janmark contended was an intentional
    tort in Illinois sufficient to establish personal jurisdiction
    there under Calder.
    The Seventh Circuit found that the Illinois court could
    properly exercise jurisdiction over Ready. The court stated
    that, after Calder "there can be no serious doubt . . . that
    the state in which the victim of a tort suffers the injury may
    entertain a suit against the accused tortfeasor." 
    Janmark, 132 F.3d at 1202
    . The court further opined that since "a
    wrong does not become a `tort' until an injury has
    occurred," the complained-of tort of interference with
    prospective economic advantage was not completed until
    Janmark's customer in New Jersey canceled his order. 
    Id. Accordingly, the
    court concluded, the injury (and hence the
    tort) occurred in Illinois, and thus jurisdiction was properly
    laid there. 
    Id. Finding the
    cases previously cited to be better reasoned,
    we decline to follow Janmark. We believe that the Seventh
    Circuit interpreted Calder too broadly when it read that
    case to hold that "the state in which the victim of a tort
    suffers the injury may entertain a suit against the accused
    tortfeasor." 
    Janmark, 132 F.2d at 1202
    . Even assuming
    that the Seventh Circuit was only referring to intentional
    torts (since Calder clearly was clearly not concerned with
    negligence), such a broad sweep fails to accommodate
    Calder's emphasis on the fact that the forum must be the
    focal point of the harm and that the defendant must
    expressly aim the tortious activity at the forum. Janmark
    relies solely on the geographical locus of the harm caused;
    in doing so, it fails to pay necessary attention to the
    17
    defendant's knowledge and intent in committing the
    tortious activity.5
    A hypothetical, posed to counsel at oral argument, may
    clarify this point. Suppose X, a closely-held corporation
    incorporated and located in New Jersey, purchases W, a
    French widget manufacturing company. Further suppose
    that Y, another French corporation that also manufactures
    and distributes widgets, interferes with W's prospective
    business advantage by tortiously acquiring W's largest
    customer, causing the value of W's stock to plummet.
    Finally, assume that Y was unaware that X had become the
    owner of W at the time the tortious acts were committed.
    We believe that, under Calder, X would not be able to sue
    Y for its intentional torts in the New Jersey district court.
    Even if we assume that the Calder test is otherwise
    satisfied, it would be impossible to conclude that Y
    expressly aimed its tortious activity at New Jersey since Y
    simply did not know that a New Jersey corporation could
    be the victim of its conduct. Under a literal reading of
    Janmark, however, personal jurisdiction would appear to be
    appropriate in New Jersey if we concluded (as the Janmark
    court presumably would) that the injury occurred there.6
    An analogous situation to our hypothetical was presented
    _________________________________________________________________
    5. As we explain infra in footnote 9, we need not (and do not) deal with
    the "focal point of the harm" issue here.
    6. To be fair, this hypothetical is different from Janmark in at least one
    important respect. The hypothetical sets up a three-party scenario
    wherein Y knows that it is tortiously interfering with W, but is not aware
    of X, the absentee foreign owner. In Janmark, by contrast, there were
    only two players -- Janmark and Dreamkeeper -- and thus it may have
    been obvious to the Seventh Circuit that Janmark knew where its victim
    was located (and presumably where it would feel the brunt of the injury)
    when it committed its tortious acts. To that end, Janmark may not have
    discussed the tortfeasor's knowledge because it simply was not in
    dispute. As we discuss below, however, we believe that the presence of
    such knowledge, without more, is itself insufficient to satisfy Calder's
    "expressly aimed" requirement. Moreover, our speculation about what
    facts may have been obvious to the panel that decided Janmark does not
    change the fact that that case does not apply the"expressly aimed"
    requirement and, to the contrary, contains the overly broad language
    
    discussed supra
    .
    18
    to the Ninth Circuit in Cybersell, Inc. v. Cybersell, Inc., 
    130 F.3d 414
    (9th Cir. 1997). In that case, the plaintiff, an
    Arizona corporation, provided Internet marketing services
    through its web site under the registered service mark
    "Cybersell." The defendant, a Florida corporation, provided
    business consulting services through its web site under the
    same name. At the time the defendant chose the name
    "Cybersell" for its venture, the plaintiff 's web site was not
    operational, and the Patent and Trademark Office had not
    granted plaintiff 's application for the service mark. 
    See 130 F.3d at 415
    . Plaintiff instituted suit in the District of
    Arizona, alleging, inter alia, trademark infringement, and
    defendant moved to dismiss for lack of personal
    jurisdiction. The Ninth Circuit rejected the argument that
    jurisdiction was proper under Calder, reasoning that the
    defendant's web site was "not aimed intentionally at
    Arizona knowing that harm was likely to be caused there."
    
    Id. at 420.
    As with our hypothetical, even if we assume that
    the plaintiff suffered its injury in Arizona (which the Ninth
    Circuit did not, see id.), Calder would not support
    jurisdiction here since the defendants could not have
    expressly aimed their conduct at the forum.7
    We recognize that a conservative reading of Calder may
    significantly limit the types of business tort cases that will
    _________________________________________________________________
    7. In contrast is the Ninth Circuit's decision in Panavision Int'l, L.P.
    v.
    Toeppen, 
    141 F.3d 1316
    (9th Cir. 1998), another cyberspace case. There,
    the plaintiff (who manufactured motion picture camera equipment and
    whose principal place of business was in California) brought suit against
    an Illinois defendant in California for dilution of its trademark. The
    defendant allegedly had established a web site using Panavision's
    trademark as its domain name, preventing Panavision from registering
    its own web site on the Internet with the domain name "Panavision.com,"
    in order to force Panavision to pay the defendant a fee to use the name
    on the Internet. See 
    id. at 1321.
    The defendant moved to dismiss on
    personal jurisdiction grounds. The Ninth Circuit disagreed, holding the
    jurisdiction was proper under Calder since the defendant knew that
    plaintiff would suffer harm in California because, as in Calder, the heart
    of the motion picture industry is located there. See 
    id. at 1321-22.
    In
    our
    view, the dispositive facts of Panavision closely track those of Calder
    (i.e.,
    the unique relationship between the motion picture industry and the
    forum), and therefore this case does not undermine the analysis in
    Cybersell.
    19
    satisfy the requirements of personal jurisdiction via the
    "effects test." Yet, we believe that such a result is consistent
    with the Supreme Court's intended relationship between
    Calder and the traditional minimum contacts analysis.
    Calder did not change the fact that even in intentional tort
    cases the jurisdictional inquiry "focuses on the relations
    among the defendant, the forum, and the litigation." See
    
    Keeton, 465 U.S. at 780
    . Nor did Calder carve out a special
    intentional torts exception to the traditional specific
    jurisdiction analysis, so that a plaintiff could always sue in
    his or her home state. What Calder did was recognize that,
    under certain circumstances, the "plaintiff 's residence in
    the forum may, because of defendant's relationship with
    the plaintiff, enhance defendant's contacts with the forum.
    Plaintiff 's residence may be the focus of the activities of the
    defendant out of which the suit arises." 
    Keeton, 465 U.S. at 780
    (citing 
    Calder, 465 U.S. at 788-89
    ). That is, the unique
    relations among the defendant, the forum, the intentional
    tort, and the plaintiff may under certain circumstances
    render the defendant's contacts with the forum -- which
    otherwise would not satisfy the requirements of due process
    -- sufficient.
    Accordingly, we reject Janmark and agree with the
    conclusion reached by the First, Fourth, Fifth, Eighth,
    Ninth, and Tenth Circuits that jurisdiction under Calder
    requires more than a finding that the harm caused by the
    defendant's intentional tort is primarily felt within the
    forum. Moreover, we agree with the Far West, Southmark,
    and Esab Group decisions that the Calder "effects test" can
    only be satisfied if the plaintiff can point to contacts which
    demonstrate that the defendant expressly aimed its tortious
    conduct at the forum, and thereby made the forum the
    focal point of the tortious activity. Simply asserting that the
    defendant knew that the plaintiff 's principal place of
    business was located in the forum would be insufficient in
    itself to meet this requirement.8 The defendant must
    _________________________________________________________________
    8. Thus, to return to the hypothetical raised above, the fact that Y (our
    tortfeasing widget concern) knew that W (its competitor) was owned by
    X (the New Jersey company) and that X would experience the injury
    caused by the drop in W's value at its headquarters in New Jersey would
    not by itself be enough to meet X's burden to show that Y "expressly
    aimed" its conduct at New Jersey.
    20
    "manifest behavior intentionally targeted at and focused on"
    the forum for Calder to be satisfied. Esab 
    Group, 126 F.3d at 625
    ; see also 
    Southmark, 852 F.2d at 773
    . In the typical
    case, this will require some type of "entry" into the forum
    state by the defendant. As even the Seventh Circuit has
    noted:
    In Calder as in all the other cases that have come to
    our attention in which jurisdiction over a suit involving
    intellectual property (when broadly defined to include
    reputation, so that it includes Calder itself) was
    upheld, the defendant had done more than brought
    about an injury to an interest located in a particular
    state. The defendant had also "entered" the state in
    some fashion, as by the sale (in Calder) of the
    magazine containing the defamatory material.
    Indianapolis Colts, Inc. v. Metropolitan Baltimore Football
    Club, 
    34 F.3d 410
    , 412 (7th Cir. 1994).
    To summarize, we believe that the Calder"effects test"
    requires the plaintiff to show the following:
    1) The defendant committed an intentional tort;
    2) The plaintiff felt the brunt of the harm in the forum
    such that the forum can be said to be the focal
    point of the harm suffered by the plaintiff as a
    result of that tort;9
    _________________________________________________________________
    9. We note that, although we need not accept or reject for purposes of
    this appeal the proposition that the effects of Kiekert's conduct were
    "felt" by Imo in New Jersey, the proper resolution of this issue is far
    from
    clear. The alleged harm in this case was felt by a corporation, not an
    individual, and at least one court has concluded that a corporation "does
    not suffer harm in a particular geographic location in the same sense
    that an individual does." Core-Vent Corp. v. Nobel Indus., 
    11 F.3d 1482
    ,
    1486 (9th Cir. 1993). Moreover, a distinction could arguably be made
    between torts against a corporation resulting in specific property damage
    (e.g., if Kiekert had physically destroyed Imo property) and those torts
    resulting in more inchoate injuries (e.g., a decrease in stock value),
    like
    those alleged here. At the same time, this court has previously stated in
    a personal jurisdiction case, albeit in dicta, that"[i]t is questionable
    judicial policy to apply a different jurisdictional rule to individuals
    than
    to corporations, to small enterprises than to large ones. To indulge in
    21
    3) The defendant expressly aimed his tortious conduct
    at the forum such that the forum can be said to be
    the focal point of the tortious activity;
    As the above discussion suggests, in order to make out the
    third prong of this test, the plaintiff must show that the
    defendant knew that the plaintiff would suffer the brunt of
    the harm caused by the tortious conduct in the forum, and
    point to specific activity indicating that the defendant
    expressly aimed its tortious conduct at the forum.
    C. Application
    In view of the foregoing analysis, the critical question in
    this case is whether Imo has pointed to acts undertaken by
    Kiekert which demonstrate that it "expressly aimed" its
    tortious conduct at New Jersey, distinguishing it from the
    defendants in Far West, Southmark, and Esab Group. Only
    if this requirement is satisfied need we consider whether
    the brunt of the harm was actually suffered by Imo in the
    forum. At oral argument, counsel for Imo drew our
    attention to the following seven facts:
    1) Kiekert knew that Imo was headquartered in New
    Jersey;
    2) Kiekert knew that Imo had agreed to sell its stock
    in Roltra to Valeo;
    3) Kiekert engaged in a series of phone calls, letters
    and meetings which interfered with the proposed
    Valeo contract;
    4) Kiekert acted with the intent to scuttle the
    contract;
    _________________________________________________________________
    such ad hoc determinations creates confusion where there should be
    certainty. . . ." Dollar Savings Bank v. First Security Bank of Utah, 
    746 F.2d 208
    , 214 (3d Cir. 1984). That case dealt with different factual
    circumstances and was not concerned with whether a plaintiff "felt" the
    effects of a defendant's tortious conduct for Calder analysis purposes.
    However, because our decision is based on other grounds, we need not
    decide how our reasoning in Dollar would apply in the context of a
    Calder analysis.
    22
    5) There were two calls from New Jersey to Kiekert in
    Germany;
    6) Kiekert wrote to First Boston in New York, and it
    was reasonably foreseeable that such
    correspondence would be transmitted to Imo in
    New Jersey, as evidenced by the fact that it was
    Imo (not First Boston) who actually authored the
    response;
    7) Imo put Kiekert on notice that its conduct would
    subject it to litigation in the United States.
    According to Imo, these facts indicate that Kiekert acted in
    a manner that specifically involved New Jersey, and
    therefore Calder's targeting requirement is satisfied.
    Essentially, this list boils down to two congeries of facts:
    (1) what Kiekert knew or intended when it undertook its
    allegedly tortious conduct; and (2) what steps Kiekert
    actually took during the relevant time period. It appears
    from the facts as alleged by Imo that Kiekert (unlike the
    defendant in our hypothetical or the defendant in Cybersell)
    knew that Imo was the parent company of Roltra, and that
    Imo was located in New Jersey. And for purposes of the
    present appeal, we must assume that Kiekert knew of the
    proposed sale to Valeo and acted with the intent to
    undermine that contract. While knowledge that the plaintiff
    is located in the forum is necessary to the application of
    Calder, as discussed above it alone is insufficient to satisfy
    the targeting prong of the effects test. For the same
    reasons, the fact that Imo advised Kiekert that it would
    pursue litigation in the United States sheds no light on
    whether Kiekert aimed its conduct at New Jersey.
    Thus, we are left to determine whether the series of
    letters, phone calls, and meetings between June and
    September 1996 sufficiently demonstrate that Kiekert
    expressly aimed its conduct at New Jersey. As we 
    discussed supra
    , the chronology includes the following events:
    a) The June 17 letter from Kiekert to First Boston
    stating that the Kiekert licenses could not be
    transferred if Roltra was sold to one of Kiekert's
    competitors;
    23
    b) The July 8 letter from Kiekert to Roltra stating that
    Kiekert would terminate the licensing agreement if
    Roltra's shares were sold to a competitor;
    c) Imo's letter in response to Kiekert's letter to First
    Boston, dated July 9;
    d) Imo's letter in response to Kiekert's letter to Roltra,
    dated August 12;
    e) On two occasions during this time, Imo's general
    counsel telephoned Kiekert from Imo's New Jersey
    offices. During these conversations, Kiekert
    confirmed that if Imo sold the Roltra shares to a
    competitor, the license agreement would be
    terminated;
    f) The August 27 meeting in Toronto between
    representatives of Kiekert and Imo;
    g) The September 10 meetings between Kiekert and
    Imo in Germany.
    We first consider the face-to-face meetings between
    Kiekert and Imo. Since none of these meetings occurred in
    New Jersey (or even in the United States), they provide no
    help to Imo in demonstrating that Kiekert targeted the
    forum. We turn next to the written correspondence. There
    is no dispute that all of Kiekert's letters were sent either to
    First Boston in New York or to Roltra in Italy. Imo submits,
    however, that when Kiekert mailed these letters, it was
    reasonably foreseeable that they would wind up in New
    Jersey, evidenced by the fact that the responses to both
    letters came from Imo's New Jersey offices. Even viewed in
    the light most favorable to Imo, we believe that these facts
    are insufficient to demonstrate that Kiekert expressly aimed
    its conduct at New Jersey. Kiekert's two letters were sent to
    New York and to Italy; even if it reasonably knew that those
    letters would be forwarded to Imo in New Jersey, Kiekert's
    acts were not directed there. To the contrary, an
    examination of these letters reveals that Kiekert was
    focusing its attention on First Boston and on Roltra, not on
    Imo.
    This position is supported by Reynolds v. Int'l Amateur
    Athletic Fed., 
    23 F.3d 1110
    (6th Cir. 1994). The plaintiff in
    24
    that case -- Butch Reynolds, a world-class runner-- was
    administered a drug test which yielded a positive result. As
    a consequence, he was banned by the International
    Amateur Athletic Federation ("IAAF") from competing for
    two years. In addition, the IAAF issued a press release
    disclosing the results of the drug test. Reynolds brought
    suit in Ohio, alleging that the drug test was flawed and
    claiming defamation and tortious interference with
    contractual relations.
    The court rejected Reynolds' claim that jurisdiction lay
    under Calder, holding that: "First, the press release
    concerned Reynolds' activities in Monaco, not Ohio. Second,
    the source of the controversial report was the drug sample
    taken in Monaco and the laboratory testing in France.
    Third, Reynolds is an international athlete whose
    professional reputation is not centered in Ohio. Fourth, the
    defendant itself did not publish or circulate the report in
    Ohio; Ohio periodicals disseminated the report. Fifth, Ohio
    was not the `focal point' of the press release. The fact that
    the IAAF could foresee that the report would be circulated
    and have an effect in Ohio is not, in itself, enough to create
    personal 
    jurisdiction." 23 F.3d at 1120
    .
    The fact that Imo phoned Kiekert in response to Kiekert's
    letters does not change the analysis. The fact is that Kiekert
    never placed a phone call to Imo in New Jersey; all of the
    calls originated with Imo. Imo contends that this fact
    should not be dispositive, and that these calls should still
    count as contacts with the forum. Assuming for the sake of
    argument that we could even characterize these calls as
    contacts, we fail to see how they demonstrate Kiekert's
    targeting of New Jersey as the situs of its tortious acts. Cf.
    Mellon Bank (East) PSFS, N.A. v. DiVeronica Bros., Inc., 
    983 F.2d 551
    , 556 (3d Cir. 1993) (follow-up calls by defendant
    into the forum insufficient to satisfy minimum contacts).
    Moreover, cases like Southmark and Far West make clear
    that a few calls or letters into the forum may be of only
    marginal import if the dispute is focused outside the forum.
    In Southmark, for example:
    [T]he oral agreement with which USLICO allegedly
    interfered was apparently negotiated and made in
    Atlanta and/or New York, and there is no evidence that
    25
    the agreement was made or to be performed in Texas
    or governed by Texas law. Life, the other party to the
    purported agreement, is not a resident of Texas. . ..
    The company whose stock Southmark wished to
    purchase and that USLICO did purchase was not a
    Texas corporation and it did not, so far as the record
    shows, do any business in Texas. Nor is there evidence
    that the stock was located or purchased in Texas.
    
    Southmark, 851 F.2d at 772-73
    (footnote omitted).
    Much the same could be said here. The solicitation of
    bids for Roltra was done in New York, and the bid with
    which Kiekert allegedly interfered came from a French
    company. The subject of the bidding was an Italian
    company, and the licensing agreement upon which the
    allegedly tortious activity was based appears to be governed
    by German law. In that light, the fact that it may be
    reasonably foreseeable that First Boston and/or Roltra
    would have passed Kiekert's letters on to Imo in New Jersey
    (and that Imo called Kiekert from New Jersey) cannot be
    sufficient to overcome the clear implication from the
    surrounding facts that New Jersey was not the focus of the
    dispute. See also Far West, 
    46 F.3d 1071
    , 1077 (finding
    that "phone calls and letters are not necessarily sufficient
    in themselves to establish minimum contacts" when the
    focus of the dispute is outside the forum).
    In sum, Imo cannot demonstrate that Kiekert expressly
    aimed its tortious conduct at New Jersey. Failing this, Imo
    cannot rely on the Calder effects test to confer specific
    jurisdiction based on Kiekert's allegedly intentional tortious
    conduct. Since Imo cannot meet the minimum contacts
    requirement of the Due Process Clause, we will affirm the
    order of the district court dismissing this case for lack of
    personal jurisdiction.
    A True Copy:
    Teste:
    Clerk of the United States Court of Appeals
    for the Third Circuit
    26
    

Document Info

Docket Number: 97-5356

Filed Date: 9/3/1998

Precedential Status: Precedential

Modified Date: 10/13/2015

Authorities (29)

dollar-savings-bank-a-pennsylvania-corporation-v-first-security-bank-of , 746 F.2d 208 ( 1984 )

Far West Capital, Inc. And Steamboat Development Corp. v. ... , 46 F.3d 1071 ( 1995 )

Mellon Bank (East) Psfs, N.A., a Federally Chartered ... , 983 F.2d 551 ( 1993 )

Time Share Vacation Club v. Atlantic Resorts, Ltd. And ... , 735 F.2d 61 ( 1984 )

joseph-dejames-v-magnificence-carriers-inc-venture-shipping-managers , 654 F.2d 280 ( 1981 )

John Madara v. Daryl Hall , 916 F.2d 1510 ( 1990 )

Richard D. Stover v. O'COnnell Associates, Incorporated , 84 F.3d 132 ( 1996 )

Harry L. Reynolds, Jr. v. International Amateur Athletic ... , 23 F.3d 1110 ( 1994 )

esab-group-incorporated-v-centricut-incorporated-thomas-aley-and-john , 126 F.3d 617 ( 1997 )

Southmark Corporation v. Life Investors, Inc., and Uslico ... , 851 F.2d 763 ( 1988 )

James D. Mesalic v. Fiberfloat Corp. D/B/A Harley Boat ... , 897 F.2d 696 ( 1990 )

Vetrotex Certainteed Corporation v. Consolidated Fiber ... , 75 F.3d 147 ( 1996 )

Janmark, Inc. v. James T. Reidy and Dreamkeeper, Inc. , 132 F.3d 1200 ( 1997 )

carteret-savings-bank-fa-v-louis-j-shushan-donald-a-meyer-rader-jackson , 954 F.2d 141 ( 1992 )

Scullin Steel Company v. National Railway Utilization Corp. , 676 F.2d 309 ( 1982 )

Core-Vent Corp. v. Nobel Industries Ab, and Per-Ingvar ... , 11 F.3d 1482 ( 1993 )

Panavision International, L.P., a Delaware Limited ... , 141 F.3d 1316 ( 1998 )

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general-electric-capital-corporation-gelco-corporation-international , 991 F.2d 1376 ( 1993 )

indianapolis-colts-inc-national-football-league-properties-inc-and , 34 F.3d 410 ( 1994 )

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