Civ Pro Stream of Commerce Question
Posted: Thu Sep 27, 2012 9:54 pm
Desert Dragon Motors (DDM) is a French corporation that designs and manufactures the Elecante, a luxury hybrid gas/electric automobile. Each car sells for upwards of $300,000.
DDM manufactures all of its cars in Rhone, France, and sells fewer than 1,000 cars globally per year. Over half of all the units sold are sold in the United States. DDM does not sell its cars directly to consumers, nor does it directly advertise in the United States. All DDM cars sold in the United States are sold through a distributor, Olive Autos (OA), a completely separate entity from DDM. OA is a South Carolina Corporation, with its principal place of business in Columbia, South Carolina. OA advertises DDM’s cars nationally and sells the cars through regional retail stores. OA has retail stores in six states, including New Jersey. Each retail store typically sells fewer than 100 cars per year.
In 2009, DDM opened a manufacturing facility in Greenville, South Carolina to fabricate the transmission for the Elecante. The parts are sent back to France for assembly in the car. Some of the transmissions are sold to other car manufacturers and parts suppliers. By 2010, the plant in Greenville, employed approximately 1,000 full-time employees, approximately 35% of DDM’s workforce.
In April 2011, Jennifer Penny, a New Jersey resident, bought an Elecante from the OA retail store in Cherry Hill, NJ. In July, Penny was driving through the Cherry Hill Mall parking lot, when another driver rear-ended her. Although neither car was traveling more than fifteen (15) miles per hour, Penny’s car exploded, causing severe injuries to her. On July 1, 2011, Penny sued DDM and OA in federal district court in South Carolina, alleging that her injuries were caused by manufacturing and/or design defects in the car.
DDM filed a motion to dismiss the complaint against it under FRCP 12(b)(2). You are a clerk for the federal judge hearing the case. Please advise her how she should rule on defendant’s motion. Assume for the purpose of this motion that the South Carolina Long Arm statute extends jurisdiction to the fullest extent permitted by the constitution, and that all of Penny’s claims are based on state law.
Thoughts?
DDM manufactures all of its cars in Rhone, France, and sells fewer than 1,000 cars globally per year. Over half of all the units sold are sold in the United States. DDM does not sell its cars directly to consumers, nor does it directly advertise in the United States. All DDM cars sold in the United States are sold through a distributor, Olive Autos (OA), a completely separate entity from DDM. OA is a South Carolina Corporation, with its principal place of business in Columbia, South Carolina. OA advertises DDM’s cars nationally and sells the cars through regional retail stores. OA has retail stores in six states, including New Jersey. Each retail store typically sells fewer than 100 cars per year.
In 2009, DDM opened a manufacturing facility in Greenville, South Carolina to fabricate the transmission for the Elecante. The parts are sent back to France for assembly in the car. Some of the transmissions are sold to other car manufacturers and parts suppliers. By 2010, the plant in Greenville, employed approximately 1,000 full-time employees, approximately 35% of DDM’s workforce.
In April 2011, Jennifer Penny, a New Jersey resident, bought an Elecante from the OA retail store in Cherry Hill, NJ. In July, Penny was driving through the Cherry Hill Mall parking lot, when another driver rear-ended her. Although neither car was traveling more than fifteen (15) miles per hour, Penny’s car exploded, causing severe injuries to her. On July 1, 2011, Penny sued DDM and OA in federal district court in South Carolina, alleging that her injuries were caused by manufacturing and/or design defects in the car.
DDM filed a motion to dismiss the complaint against it under FRCP 12(b)(2). You are a clerk for the federal judge hearing the case. Please advise her how she should rule on defendant’s motion. Assume for the purpose of this motion that the South Carolina Long Arm statute extends jurisdiction to the fullest extent permitted by the constitution, and that all of Penny’s claims are based on state law.
Thoughts?