Williams v. Yamaha Motor Corp., No. 15-55924 (9th Cir. 2017)
Annotate this CasePlaintiffs, twenty individuals who purchased first generation four stroke outboard motors (the Class Motors), filed suit against defendants, alleging that the Class Motors contained an inherent design defect that caused severe, premature corrosion in the motors’ dry exhaust system. Plaintiffs alleged that defendants knew of the defect prior to the sales of the Class Motors to plaintiffs, and that the defect posed an unreasonable safety hazard. On appeal, plaintiffs challenged the district court's grant of YMC's motion to dismiss for lack of personal jurisdiction and its grant of YMUS's fifth motion to dismiss plaintiffs' consumer fraud claims. The court concluded that the district court lacked general jurisdiction over YMC because YMC does not have sufficient contacts with California; plaintiffs failed to plead facts sufficient to make out a prima facie case that YMC and YMUS were alter egos; and even assuming that YMUS's contacts could be imputed to YMC, this does not, on its own, suffice to establish general jurisdiction. The court also concluded that the district court lacked specific jurisdiction over YMC because plaintiffs do not allege any actions that YMC "purposefully directed" at California. Even assuming that some standard of agency continued to be relevant to the existence of specific jurisdiction pursuant to Daimler AG v. Bauman, plaintiffs failed to make out a prima facie case for any such agency relationship. Finally, the court concluded that plaintiffs failed to plead a prima facie case of consumer fraud where, although plaintiffs adequately pleaded defendants' presale knowledge of the defect, plaintiffs failed to plead the existence of an unreasonable safety hazard. Accordingly, the court affirmed the judgment.
Court Description: Personal Jurisdiction / Consumer Fraud Law The panel affirmed the district court’s dismissal of Yamaha Motor Co. Ltd. (YMC) for lack of personal jurisdiction, and Fed. R. Civ. P. 12(b)(6) dismissal of plaintiffs-appellants’ claims against Yamaha Motor Corporation, U.S.A. (YMUS), in an action alleging violations of federal and state warranty law and other claims, brought by appellants who purchased allegedly defective outboard motors that YMC designed and manufactured in Japan and that YMUS imported and marketed in California. The panel held that the district court lacked general jurisdiction over YMC. Specifically, the panel held that YMC itself did not have sufficient contacts with California for the exercise of general jurisdiction. The panel also held that appellants failed to plead sufficient facts to make out a prima facie case that YMC and YMUS were “alter egos.” The panel noted that even assuming that YMUS’s contacts could be imputed to YMC, that did not, on its own, suffice to establish general jurisdiction. The panel held that the district court lacked specific jurisdiction over non-resident YMC. Specifically, the panel held that appellants did not allege any action that YMC “purposefully directed” at California. Assuming that some standard of agency continued to be relevant to specific jurisdiction after Daimler AG v. Bauman, 134 S. Ct. 746, 759
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