Federal Circuits, 4th Cir. (July 26, 2004)
Docket number: 03-1414
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PUBLISHED UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT
P ETER P AUL M ITRANO , Plaintiff-Appellant,v. No. 03-1414 C HRISTOPHER J. H AWES , d/b/a CJHColor and Design Group, Defendant-Appellee. Appeal from the United States District Courtfor the Eastern District of Virginia, at Alexandria.James C. Cacheris, Senior District Judge. (CA-02-1841-A)Argued: June 2, 2004Decided: July 26, 2004 Before WILKINS, Chief Judge, LUTTIG, Circuit Judge,and Louise W. FLANAGAN, United States District Judge for theEastern District of North Carolina, sitting by designation.Vacated and remanded by published opinion. Chief Judge Wilkinswrote the opinion, in which Judge Luttig and Judge Flanagan joined. COUNSEL ARGUED: Peter Paul Mitrano, Merrifield, Virginia, for Appellant.John William Toothman, Alexandria, Virginia, for Appellee.OPINION WILKINS, Chief Judge:Peter Paul Mitrano, an attorney proceeding pro se, appeals a districtcourt order dismissing his breach of contract action based onimproper venue. 1 We vacate the judgment and remand for further pro-ceedings. I. In August 2000, Mitrano entered into an oral agreement to providelegal services to Christopher J. Hawes, doing business as CJH Colorand Design Group. A trademark infringement action by L'OrealSociete Anonyme was pending against Hawes in France becauseHawes had registered a website domain name, , with Network Solutions, Inc. Because of the lawsuit,control of the domain name was deposited into the registry of theFrench court.At the time of the agreement, Mitrano resided in New Hampshire,and Hawes resided in Massachusetts. Between December 2000 andJanuary 2001, however, Mitrano moved to Virginia while continuingto provide legal services to Hawes. On April 12, 2001, Mitrano fileda lawsuit on Hawes' behalf against Network Solutions and L'OrealSociete Anonyme in the Eastern District of Virginia ("Eastern Dis-trict"), challenging the transfer of the domain name into the Frenchcourt registry ("the underlying suit"). The district court dismissed thecomplaint, and on appeal, this court partially affirmed, partiallyreversed, and remanded for further proceedings. See Hawes v. Net-work Solutions, Inc. , 337 F.3d 377, 379 (4th Cir. 2003).On December 19, 2002, Mitrano filed this action against Hawes inthe Eastern District, claiming that he provided approximately$579,280 in legal services to Hawes and that Hawes had only paidhim $113,200. Hawes moved to dismiss, arguing that the district courtlacked subject matter and personal jurisdiction and that venue wasMitrano also appeals an order denying his motion to reconsider.improper in the Eastern District. The district court concluded that ithad subject matter and personal jurisdiction. However, relying on ourdecision in Broadcasting Co. of the Carolinas v. Flair BroadcastingCorp. , 892 F.2d 372 (4th Cir. 1989), the district court reasoned thatMassachusetts, rather than Virginia, was the proper venue because: (1) the contract was formed in Massachusetts; (2) the negotiationsleading to the formation of the contract were held in Massachusetts; (3) the contract contemplated that services would be performed inMassachusetts or France; (4) actual performance of the contractoccurred, in part, in Massachusetts; and (5) the alleged breach of thecontract (failure to make payments) took place in Massachusetts. Thedistrict court therefore dismissed the action without conducting anevidentiary hearing.Mitrano moved for reconsideration, arguing that the 1990 amend-ments to the federal venue statute, 28 U.S.C.A. § 1391 (West 1993 &Supp. 2004), rendered Broadcasting Co. obsolete. Mitrano arguedthat, under the amended statute, venue was proper in the Eastern Dis-trict because he "performed a substantial part of the legal services for[Hawes] in [the Eastern District], namely research, drafting of plead-ings, court appearances, court filings and review of the underlying lit-igation that relates to this action." J.A. 31-32 (internal quotationmarks omitted). In addressing the motion, the district court recog-nized that under the amended version of § 1391, venue for a givensuit could be appropriate in multiple districts. The district court never-theless concluded that venue was not proper in the Eastern Districtbecause Mitrano's performance of legal work was "tangential, notsubstantial" to Mitrano's breach of contract claim. Id. at 36. The courttherefore denied the motion for reconsideration. II. Mitrano contends that the district court erred in ruling that venuewas improper in the Eastern District. We agree.We review the district court venue ruling de novo. See UnitedStates v. Newsom , 9 F.3d 337, 338 (4th Cir. 1993). To survive amotion to dismiss for improper venue when no evidentiary hearing is held, the plaintiff need only make a prima facie showing of venue.See Delong Equip. Co. v. Washington Mills Abrasive Co. , 840 F.2d, 845 (11th Cir. 1988).Prior to 1990, § 1391 provided that an action based on diversity ofcitizenshipÃÂas this one isÃÂcould be brought in the judicial district"in which the claim arose." 28 U.S.C. § 1391(a) (1988). When it wasnot clear that a claim arose in only one district, we applied a "weightof the contacts" test for determining venue under § 1391(a). Broad-casting Co. , 892 F.2d at 377 (internal quotation marks omitted).Under this test, venue was proper in the district having the most sig-nificant connection with the claim. See id. at 376.In 1990, § 1391 was amended to make venue proper in any "judi-cial district in which a substantial part of the events or omissions giv-ing rise to the claim occurred." 2 Judicial Improvements Act of 1990,Pub. L. No. 101-650, § 311(1), 104 Stat. 5089, 5114. Congressamended the statute because the prior language "led to wasteful litiga-tion whenever several different forums were involved in the transac-tions leading up to the dispute." Cottman Transmission Sys., Inc. v. Martino , 36 F.3d 291, 294 (3d Cir. 1994) (citing Rep. of the Fed. Cts. Study Comm. 94 (Comm. Print 1990)). Under the amended statute,it is possible for venue to be proper in more than one judicial district.See Jenkins Brick Co. v. Bremer , 321 F.3d 1366, 1371 (11th Cir. 3). We therefore no longer apply the "weight of the contacts" test.See Ciena Corp. v. Jarrard , 203 F.3d 312, 318 (4th Cir. 2000) (deter-mining venue under amended statute without reference to "weight ofthe contacts" test). Additionally, in determining whether events oromissions are sufficiently substantial to support venue under theamended statute, a court should not focus only on those matters thatare in dispute or that directly led to the filing of the action. See Uffnerv. La Reunion Francaise, S.A. , 244 F.3d 38, 42 (1st Cir. 2001).Rather, it should review "the entire sequence of events underlying theAn action may also be brought in a judicial district where a defendantresides, if all defendants reside in the same state, or where any defendantis subject to personal jurisdiction, if there is no other district in which theaction may be brought. See 28 U.S.C.A. § 1391(a). Because Hawesresided in Massachusetts and venue would be proper in Massachusetts,neither provision would provide a basis for venue in Virginia.claim." Id. ; see First of Mich. Corp. v. Bramlet , 141 F.3d 260, 264(6th Cir. 1998).Applying these principles here, we conclude that Mitrano's workunder the contract constituted "a substantial part of the events [and]omissions giving rise to [Mitrano's] claim" for breach of contract. 28U.S.C.A. § 1391(a). Indeed, it was Mitrano's work that allegedly cre-ated his entitlement to the payment he now seeks. For that reason,depending on the amount of work that Mitrano completed in the East-ern District, that work alone may be sufficient to justify venue there.This conclusion is strongly supported by Uffner , which concerned abad faith claim-denial action against an insurer arising out of the sink-ing of a yacht it insured. There, the First Circuit held that the sinkingof the yacht was a "substantial part of the events or omissions givingrise to the claim" even though the claim did not concern how, when,or why the accident occurred. See Uffner , 244 F.3d at 43. The courtreached that conclusion because the sinking of the vessel, likeMitrano's performance of the legal services at issue here, was theevent that allegedly entitled the plaintiff to the payment sought underthe contract. See id. Because we reject the analysis of the district court, we vacate thedismissal order and remand for reconsideration of the venue issue.However, we note that a question apparently not previously addressedby the parties or the district court is exactly what portion of Mitrano'swork was performed in the Eastern District. 3 We will not attempt todelineate exactly how much work Mitrano would need to have com-pleted in the Eastern District to support venue there, but rather, willleave that legal question to the district court to answer in the firstinstance on remand along with the factual question of how muchwork Mitrano actually performed in the Eastern District. III. Hawes argues that even if venue is proper in the Eastern District,Mitrano stated in his declaration that it was "a substantial part," J.A. (internal quotation marks omitted), and he maintained at oral argu-ment that it was "more than half" of the work.we should affirm the dismissal of Mitrano's suit on the basis that thedistrict court lacked personal jurisdiction over Hawes. We disagree.When a district court rules on personal jurisdiction without holdingan evidentiary hearing, we view the facts in the light most favorableto the plaintiff and determine de novo whether he has made a primafacie showing of personal jurisdiction. See Carefirst of Md., Inc. v. Carefirst Pregnancy Ctrs., Inc. , 334 F.3d 390, 396 (4th Cir. 2003). Toestablish personal jurisdiction over a nonresident defendant througha state long arm statute, a court must first determine that jurisdictionis authorized by state law. See Ellicott Mach. Corp. v. John HollandParty Ltd. , 995 F.2d 474, 477 (4th Cir. 1993). If it is, the court mustnext decide whether exercise of personal jurisdiction would be consis-tent with due process. See English & Smith v. Metzger , 901 F.2d 36,(4th Cir. 1990).Virginia's long arm statute extends personal jurisdiction to the lim-its allowed by due process. See id. ; Va. Code Ann. § 8.01-328.1 (Lex-isNexis Supp. 2003). And, for a district court to exercise itsjurisdiction consistently with due process requirements, a defendantbefore it must have "certain minimum contacts with [the forum state]such that the maintenance of the suit does not offend traditionalnotions of fair play and substantial justice." Int'l Shoe Co. v. Wash-ington , 326 U.S. 310, 316 (1945) (internal quotation marks omitted).The standard for determining whether a court may exercise personaljurisdiction over a nonresident defendant depends on whether thedefendant's contacts with the forum state provide the basis for thesuit. See Carefirst of Md. , 334 F.3d at 397. If so, those contacts mayestablish "specific jurisdiction." See id. ; Helicopteros Nacionales deColombia, S.A. v. Hall , 466 U.S. 408, 414 & n.8 (1984). To decidewhether specific jurisdiction exists, we examine "(1) the extent towhich the defendant purposefully availed itself of the privilege ofconducting activities in the State; (2) whether the plaintiffs' claimsarise out of those activities directed at the State; and (3) whether theexercise of personal jurisdiction would be constitutionally reason-able." ALS Scan, Inc. v. Digital Serv. Consultants, Inc. , 293 F.3d 707,(4th Cir. 2002) (alteration & internal quotation marks omitted).A defendant should be able to anticipate being sued in a court that canexercise personal jurisdiction over him; thus, to justify such an exer-cise of jurisdiction, a defendant's actions must have been "directed atthe forum state in more than a random, fortuitous, or attenuated way."ESAB Group, Inc. v. Centricut, Inc. , 126 F.3d 617, 625 (4th Cir. 7).Here, Mitrano contends that Hawes purposefully directed his activ-ities into Virginia by prosecuting the underlying suit there. Althoughit is undisputed that Mitrano's breach of contract case arises out of theaction that Mitrano and Hawes prosecuted in Virginia, Hawes arguesthat he did not purposefully direct his activities toward Virginia andthat it would be unfair for him to defend Mitrano's suit there becauseit was Mitrano, not Hawes, who selected the forum for the underlyingsuit. See Hanson v. Denckla , 357 U.S. 235, 253 (1958) ("The unilat-eral activity of those who claim some relationship with a nonresidentdefendant cannot satisfy the requirement of contact with the forumState."). However, even assuming Hawes was not involved in the ini-tial selection of the forum, viewing the record in the light most favor-able to Mitrano, Hawes knew that the suit had been filed there.Indeed, Hawes admits in his declaration that Mitrano provided himwith "copies of papers that he had filed . . . in the U.S. District Courtin Alexandria, Virginia . . . ." J.A. 65. Thus, Hawes' knowing contin-uation of the suit in Virginia demonstrates that his availment of Vir-ginia's legal protections was purposeful. See Daynard v. Ness,Motley, Loadholt, Richardson & Poole, P.A. , 290 F.3d 42, 55 (1st Cir. 2) ("Whether or not an agent is initially authorized to act onbehalf of a principal, the agent's actions may be attributed to the prin-cipal, for purposes of personal jurisdiction, if the principal later rati-fies the agent's conduct."); Int'l. Med. Group v. Am. ArbitrationAss'n , 312 F.3d 833, 845 (7th Cir. 2002) (attributing the actions of thedefendant's attorneys to the defendant for purposes of determining theexistence of personal jurisdiction); cf. Burger King Corp. v. Rudzewicz , 471 U.S. 462, 479 n.22 (1985) (stating that commercialactivities performed on a party's behalf "may sometimes be ascribedto the party" but not "resolv[ing] the permissible bounds of such attri-bution"). And, considering that Hawes allowed Mitrano to continueto litigate on his behalf in Virginia, there is nothing unfair aboutrequiring him to defend the resulting fee suit in the same forum. 4Hawes maintains that if we determine that the district court possessedpersonal jurisdiction over him and that venue was appropriate in Vir- IV. For the foregoing reasons, we hold that the district court correctlyconcluded that Mitrano made out a prima facie case of personal juris-diction over Hawes, but we reject the basis provided by the districtcourt for dismissing Mitrano's suit for lack of venue. We thereforevacate the dismissal order and remand for reconsideration of thevenue issue. VACATED AND REMANDED ginia, this action should be transferred to Massachusetts pursuant to 28U.S.C.A. § 1404(a) (West 1993) ("For the convenience of parties andwitnesses, in the interest of justice, a district court may transfer any civilaction to any other district or division where it might have beenbrought."). Mitrano also argues that he is entitled to summary judgmenton the merits of his claim. Because the district court has never ruled onthese issues, we will allow that court to address them in the first instanceshould the court conclude on remand that venue is proper.Try vLex for FREE for 3 days
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