Filed: September 15, 1997

UNITED STATES COURT OF APPEALS

FOR THE FOURTH CIRCUIT

No. 96-1592

(CA-94-56-5, BK-94-01)

Owens-Illinois, Incorporated,

Plaintiff - Appellant,

versus

Rapid American Corporation, et al,

Defendants - Appellees.

ORDER

The Court amends its opinion filed September 4, 1997, as

follows:

On page 2, section 1, line 6 -- "Kenneth R. Friedman, RUBIN,

BAUM, LEVIN, CONSTANT & FRIEDMAN, New York, New York, for Appellee." is added to the attorney information.

For the Court - By Direction

/s/ Patricia S. Connor

Clerk
PUBLISHED

UNITED STATES COURT OF APPEALS

FOR THE FOURTH CIRCUIT

In Re: THE CELOTEX CORPORATION,

Debtor.

OWENS-ILLINOIS, INCORPORATED,

Plaintiff-Appellant,

No. 96-1592

v.

RAPID AMERICAN CORPORATION,

Successor in interest to Philip-Carey

Corporation,

Defendants-Appellees.

Appeal from the United States District Court

for the Northern District of West Virginia, at Wheeling.

Frederick P. Stamp, Jr., Chief District Judge.

(CA-94-56-5, BK-94-01)

Argued: April 9, 1997

Decided: September 4, 1997

Before HAMILTON and MOTZ, Circuit Judges, and

PHILLIPS, Senior Circuit Judge.

_________________________________________________________________

Affirmed by published opinion. Judge Hamilton wrote the opinion, in

with Judge Motz and Senior Judge Phillips joined.

_________________________________________________________________

COUNSEL

ARGUED: Robert Ogilvie Meriwether, NELSON, MULLINS,

RILEY & SCARBOROUGH, L.L.P., Columbia, South Carolina, for
Appellant. Paul H. Aloe, RUBIN, BAUM, LEVIN, CONSTANT &

FRIEDMAN, New York, New York, for Appellee. ON BRIEF: R.

Bruce Shaw, George B. Cauthen, NELSON, MULLINS, RILEY &

SCARBOROUGH, L.L.P., Columbia, South Carolina; David B. Hendrickson, HENDRICKSON & LONG, Charleston, West Virginia, for

Appellant. Kenneth D. Friedman, RUBIN, BAUM, LEVIN,

CONSTANT & FRIEDMAN, New York, New York, for Appellee.

_________________________________________________________________

OPINION

HAMILTON, Circuit Judge:

This action for contribution stems from eight civil proceedings in

which the appellant, Owens-Illinois, Inc. (Owens), and the Celotex

Corporation (Celotex), a successor in interest to the Philip-Carey

Manufacturing Corporation (Old Carey) and a new version of the

same company (New Carey), were found jointly and severally liable

for personal injuries caused by exposure to asbestos-containing products manufactured by Owens, Old Carey and New Carey. Owens satisfied both its allocated share of the judgments and Celotex's

allocated share of the judgments. Celotex's allocated share of the

judgments totaled $1,794,298.84.

Prior to the entry of some of the judgments, Celotex filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Middle

District of Florida. Owens then sought contribution from another corporate successor of Old Carey, appellee Rapid American Corporation

(Rapid).1 Accordingly, on October 3, 1994, Owens filed a complaint

_________________________________________________________________

1 In Tretter v. Rapid Am. Corp., 514 F. Supp. 1344, 1346 (E.D. Mo.

1981), an unrelated action, the court gave the following summary of the

dizzying corporate lineage of Rapid and Celotex:

 In 1888, the Philip Carey Manufacturing Corporation (Old

Carey) was formed in Ohio. Effective June 1, 1967, Old Carey

was merged with Glen Alden. On that same date, Glen Alden

assigned all the assets and liabilities it acquired from Old Carey

to a newly formed subsidiary, Philip Carey Manufacturing Corporation (New Carey). In this transaction, New Carey agreed to

 2
in the Circuit Court of Monongalia County, West Virginia, against

Rapid, as the corporate successor to Old Carey, for contribution in the

amount of $1,794,298.84, plus prejudgment interest (the Contribution

Action). See W. Va. Code § 55-7-13 (1994). Owens asserted that personal jurisdiction existed over Rapid via Old Carey, who had put its

products into the stream of commerce with the expectation that they

would reach West Virginia.2

Pursuant to 28 U.S.C. § 1452(a), Rapid removed the Contribution

Action to the United States District Court for the Northern District of

West Virginia on the basis that it was "related to" the Celotex bankruptcy case in Florida, 28 U.S.C. § 1334(b).3 Title 28, United States

Code § 1334(b) provides that "[n]otwithstanding any Act of Congress

that confers exclusive jurisdiction on a court or courts other than the

district courts, the district courts shall have original but not exclusive

jurisdiction of all civil proceedings arising under title 11, or arising

in or related to cases under title 11." 28 U.S.C. § 1334(b) (emphasis

_________________________________________________________________

assume all the liabilities of Old Carey and agreed to indemnify

Glen Alden against any such liabilities including the cost of

defense or settlement of any such liabilities. After this transaction Glen Alden continued in operation. Glen Alden itself has

never manufactured or sold asbestos, and plaintiff does not contend otherwise.

 In 1968, Philip Carey Manufacturing Corporation changed its

name to Philip Carey Corporation. In 1970, Philip Carey Corporation merged into Briggs Manufacturing Company and the surviving corporation adopted the name Panacon Corporation. In

1972, Celotex Corporation purchased the Panacon Corporation,

and assumed all its liabilities.

Glen Alden subsequently merged into Rapid American's corporate structure. See id at 1345 n.1.

2 Before its merger into Glen Alden, Old Carey was an Ohio corporation with its principal place of business in Cincinnati, Ohio.

3 Neither of the two traditional bases for subject matter jurisdiction in

federal court existed. Federal question jurisdiction did not exist because

Owens' claim for contribution was based on the law of West Virginia.

See 28 U.S.C. § 1331. Diversity jurisdiction did not exist because both

Owens and Rapid are Delaware corporations. See 28 U.S.C. § 1332.

 3
added). According to Rapid's Notice of Removal, the action was

related to the Celotex bankruptcy case because "[s]hould [Owens]

prevail in its contribution action, [Celotex] would immediately

become liable to Rapid as its contractual and common law indemnitor." (J.A. 15).

Rapid had in fact previously filed a proof of claim against the

Celotex bankruptcy estate for a contingent and unliquidated amount

based on theories of contribution and indemnification. According to

Rapid's proof of claim:

Celotex's liability to Rapid is based upon Rapid's right to

contribution and indemnification (including costs of defense

and attorney's fees) arising from or in connection with persons' and other entities' pending claims and lawsuits against

Rapid, or which may arise or be incurred in connection with

presently unasserted claims against Rapid, based upon any

theory of law, equity or admiralty for, relating to, or arising

by reasons of, directly or indirectly, death, personal injuries

or personal damages . . . to the extent caused or allegedly

caused, directly or indirectly, by asbestos or asbestoscontaining products or any other activity or omission or

products, goods, minerals or other material or exposure

thereto . . . .

(J.A. 44-45). Rapid's claim against the Celotex bankruptcy estate was

principally based upon a written agreement entitled "General Assignment & Assumption of Liabilities," (J.A. 52), wherein Celotex's predecessor in interest, New Carey, agreed to indemnify Rapid's

predecessor in interest, Glen Alden, for all liabilities and defense

costs arising out of Old Carey's merger into Glen Alden and Glen

Alden's subsequent transfer of all Old Carey's assets to New Carey

(the Indemnity Agreement).

Owens also filed a proof of claim against the Celotex bankruptcy

estate. A copy of Owens' proof of claim is not in the record, but

Owens represents and Rapid does not contest that Owens' claim

sought contribution for liabilities it has borne on behalf of Celotex

with respect to asbestos-related injury claims.

 4
Turning back to Rapid's Notice of Removal, we note that Rapid

took the position that the Contribution Action was a non-core proceeding, and thus, should remain in the district court rather than being

referred to the bankruptcy court. In conjunction with its Notice of

Removal, Rapid moved to withdraw the automatic reference to the

bankruptcy court, see 28 U.S.C. § 157(d), and to dismiss the Contribution Action for lack of personal jurisdiction, see Fed. R. Civ. P.

12(b)(2).

Owens objected to Rapid's removal and sought remand on two

bases. Owens contended that the district court lacked subject matter

jurisdiction, because the Contribution Action was not related to the

Celotex bankruptcy case. See 28 U.S.C. § 1334(b). Owens also contended that equitable grounds such as comity and the state court's

expertise in questions of state law warranted remand. See 28 U.S.C.

1452(b).

The district court ordered the bankruptcy court for the Northern

District of West Virginia to prepare a report and make recommendations on Owens' motion to remand and Rapid's motion to withdraw

the automatic reference. The bankruptcy court did so, recommending

that the district court grant Owens' motion to remand the Contribution

Action to state court. In the event the district court determined not to

remand, the bankruptcy court recommended that the automatic reference be withdrawn. Without conducting a hearing, the district court

denied Owens' motion to remand and granted Rapid's motion to withdraw the automatic reference. Finally, the district court granted

Rapid's motion to dismiss the Contribution Action for lack of personal jurisdiction. According to the district court, Rapid lacked sufficient minimum contacts with West Virginia to comply with due

process requirements. After the district court denied a motion for

reconsideration by Owens, Owens noted a timely appeal.

On appeal, Owens does not challenge the withdrawal of the automatic reference, but does challenge the district court's denial of its

motion to remand and the district court's dismissal for lack of personal jurisdiction. After initial briefing by the parties in this court, but

before oral argument, the bankruptcy court confirmed a plan of reorganization for Celotex (the Confirmed Plan). See In re Celotex, 204

B.R. 586 (Bankr. M.D. Fla. 1996). We requested supplemental brief-

 5
ing from the parties regarding what effect, if any, the Confirmed Plan

had on the issues on appeal. From this supplemental briefing, we

learned that Rapid objected to the treatment of its claim under the

Confirmed Plan, and thus, appealed to the district court. Prior to the

district court's consideration of the matter, however, Rapid and the

Celotex bankruptcy estate reached what Rapid characterizes as a

"global settlement of their various differences and disputes, obviating

appeal." (Rapid's Supplemental Br. at 3). The bankruptcy court

approved this settlement on February 11, 1997.

The Confirmed Plan neither allowed nor disallowed Owens' claim

for contribution against the Celotex bankruptcy estate. Rather, it

deemed the claim as one against a trust, created by the Confirmed

Plan to address, liquidate, resolve, disallow, or allow and pay all the

asbestos related claims against the Celotex bankruptcy estate (the

Asbestos Claims Trust). See In re Celotex, 204 B.R. at 602. Under the

Confirmed Plan, the Asbestos Claims Trust is deemed the successor

for all purposes to the liabilities of Celotex with respect to allowed

amounts of asbestos related claims. See id. at 619-620. Owens' claim

would then be resolved in accordance with the "Asbestos Claims Resolution Procedures" established by the Confirmed Plan. Id. at 602. We

have no knowledge as to the present status of Owens' claim in this

process.

For the following reasons, we affirm the district court's denial of

Owens' motion to remand and the district court's order dismissing the

Contribution Action for lack of personal jurisdiction.

I.

Owens first challenges the district court's denial of its motion to

remand the Contribution Action to state court. Before addressing this

challenge, however, we must first address the threshold issue raised

by Rapid of whether we have the power to review the district court's

denial of Owens' motion to remand.

A.

Rapid argues that 28 U.S.C. § 1452(b) expressly precludes our

review of the district court's denial of Owens' motion to remand.

 6
Rapid is correct with respect to the district court's decision that equitable grounds did not favor remand, but it is incorrect with respect to

the district court's refusal to remand for lack of subject matter jurisdiction.

Section 1452 provides, in pertinent part, as follows:

(a) A party may remove any claim or cause of action in

any civil action . . . to the district court for the district where

such civil action is pending, if such district court has jurisdiction of such claim or cause of action under section 1334

of this title.

(b) The court to which such claim or cause of action is

removed may remand such claim or cause of action on any

equitable ground. An order entered under this subsection

remanding a claim or cause of action, or a decision to not

remand, is not reviewable by appeal or otherwise by the

court of appeals under section 158(d), 1291, or 1292 of this

title or by the Supreme Court of the United States under section 1254 of this title.

28 U.S.C. § 1452(b) (emphasis added). The language of § 1452(b)

expressly precludes appellate review of a district court's refusal to

remand a properly removed action on equitable grounds. However,

the plain language of § 1452(b) presumes that removal under

§ 1452(a) was proper. A proper removal could not occur without the

district court possessing subject matter jurisdiction under § 1334. See

Pacor, Inc. v. Higgins, 743 F.2d 984, 993 (3d Cir. 1984) (reaching

same conclusion in the context of § 1452(b)'s materially similar predecessor, 28 U.S.C. § 1478(b)). If, in fact, a district court does not

possess subject matter jurisdiction under § 1334(b), then § 1452(b)

"never comes into play, and the absolute prohibition on appellate

review over equitable remands which were granted or denied under

this subsection . . . never becomes operative." Id. To hold otherwise

would suggest the incredulous result that § 1452(b)'s restrictions on

appellate review may alter the basic proposition that a challenge to

the district court's subject matter jurisdiction may be raised at any

time by the parties or the court. See Things Remembered, Inc. v.

Petrarca, 116 S. Ct. 494, 499 n.1 (1995) (Ginsburg, J., concurring).

 7
In sum, we hold that § 1452(b) precludes us from reviewing the district court's decision that equitable grounds did not favor remand, but

does not preclude us from reviewing the district court's decision

denying Owens' motion to remand to the extent that Owens' motion

rested on the district court allegedly lacking subject matter jurisdiction.

B.

We now consider de novo whether the district court possessed subject matter jurisdiction pursuant to § 1334(b). See In re A.H. Robins

Co. Inc., 86 F.3d 364, 371 (4th Cir.), cert. denied, 117 S. Ct. 483

(1996). As set forth above, § 1452(a) provides for removal of a state

action "to the district court for the district where such civil action is

pending, if such district court has jurisdiction of such claim or cause

of action under section 1334 of this title." 28 U.S.C. § 1452(a). Section 1334(b), in turn, provides in pertinent part that "the district court

shall have original but not exclusive jurisdiction of all civil proceedings arising under title 11, or arising in or related to cases under title

11." 28 U.S.C. § 1334(b) (emphasis added). In Celotex Corp. v.

Edwards, 115 S. Ct. 1493, 1499 (1995), the Supreme Court expressed

agreement with the view of the Third Circuit in Pacor, Inc. v.

Higgins, 743 F.2d 984, 994 (3d Cir. 1984), that by Congress' choice

of words in § 1334(b) "`Congress intended to grant comprehensive

jurisdiction to the bankruptcy courts so that they might deal efficiently and expeditiously with all matters connected with the bankruptcy estate . . . .'"

In A.H. Robins Co. v. Piccinin, 788 F.2d 994, 1002 n.11 (4th Cir.

1986), we adopted the Third Circuit's test for determining the existence of "related to" jurisdiction. That test, in its entirety, provides:

 The usual articulation of the test for determining whether

a civil proceeding is related to bankruptcy is whether the

outcome of that proceeding could conceivably have any

effect on the estate being administered in bankruptcy. Thus,

the proceeding need not necessarily be against the debtor or

against the debtor's property. An action is related to bankruptcy if the outcome could alter the debtor's rights, liabilities, options or freedom of action (either positively or

 8
negatively) and which in any way impacts upon the handling and administration of the bankruptcy estate.

Pacor, 743 F.2d at 994 (citations omitted); see also Celotex, 115 S.

Ct. at 1499 n.6 (recognizing that the First, Fourth, Fifth, Sixth, Eighth,

Ninth, Tenth and Eleventh Circuits have adopted the Pacor test with

little or no variation and the Second and Seventh Circuits have

adopted a slightly different test and not choosing one test over the

other). Notably, the Pacor test does not require certain or likely alteration of the debtor's rights, liabilities, options or freedom of action,

nor does it require certain or likely impact upon the handling and

administration of the bankruptcy estate. The possibility of such alteration or impact is sufficient to confer jurisdiction. See Pacor, 743

F.2d at 994; see also In re Titan Energy, Inc., 837 F.2d 325, 330 (8th

Cir. 1988) ("[E]ven a proceeding which portends a mere contingent

or tangential effect on a debtor's estate meets the broad jurisdictional

test articulated in Pacor.").

Before we apply the Pacor test, we note that if "related to" jurisdiction actually existed at the time of Rapid's removal of the Contribution Action to the district court, Rapid's global settlement with the

Celotex bankruptcy estate and the treatment of Owens' claim under

the Confirmed Plan could not divest the district court of that subject

matter jurisdiction. See Freeport-McMoRan, Inc. v. K N Energy, Inc.,

498 U.S. 426, 428 (1991) (if a federal court possesses subject matter

jurisdiction over an action at the time it is commenced, a subsequent

event cannot divest the court of that subject matter jurisdiction). Thus,

our analysis may not be informed by our knowledge of the Confirmed

Plan or Rapid's settlement with the Celotex bankruptcy estate.

Turning to application of the Pacor test here, we conclude that

whether Rapid is held liable in the Contribution Action is a question

"related to" the Celotex bankruptcy case. First, any recovery by

Owens in the Contribution Action would reduce Owens' claim

against the Celotex bankruptcy estate for contribution by the same

amount, thus altering the liabilities of the Celotex bankruptcy estate.

See In re Kaonohi Ohana, Ltd., 873 F.2d 1302, 1306-07 (9th Cir.

1989) (upholding "related to" jurisdiction over third-party action

because specific performance remedy in third-party action would

reduce damages in breach of contract claim against bankruptcy

 9
estate); In re Titan Energy, Inc., 837 F.2d at 329-30 (nondebtor

claims against third-party insurance company "related to" the bankruptcy under Pacor because recovery would reduce liabilities of the

estate). Furthermore, any recovery by Owens against Rapid would

impact the handling and administration of the Celotex bankruptcy

estate by changing the character of Rapid's indemnification claim

against Celotex from contingent and unliquidated to certain and liquidated. This change would obviate the need to estimate the amount of

Rapid's claim under Bankruptcy Code § 502(c), which requires that

a contingent or unliquidated claim be estimated if the bankruptcy

court determines that the fixing or liquidation of a claim would

unduly delay the administration of the bankruptcy case. In sum, the

outcome of the Contribution Action could conceivably have an effect

on the Celotex bankruptcy case. See In re American Hardwoods, Inc.,

885 F.2d 621, 623-24 (9th Cir. 1989) (finding "related to" jurisdiction

where enforcement of state court judgment by creditor against debtor's guarantors would affect administration of debtor's reorganization

plan); In re Brentano's, 27 B.R. 90, 91-92 (Bankr. S.D.N.Y. 1983)

("related to" jurisdiction existed based on a bankruptcy debtor's contractual obligation to indemnify its guarantor who was a defendant in

an action for past due rent). Under the Pacor test, this potential effect

is all that is required.

Owens argues that no potential for impact exists because prevailing

in the Contribution Action would reduce its claim against the Celotex

bankruptcy estate by the same amount that it would increase Rapid's

claim against it. This argument is flawed. The offset would not be the

same. Under the Indemnity Agreement, Rapid is entitled to indemnification from Celotex for costs that it incurs in defending itself in the

Contribution Action, whereas Owens, under the American rule, is not.

The American rule provides that each party bear the cost of its own

attorney's fees unless a statute or agreement provides otherwise. See

Key Tronic Corp. v. United States, 511 U.S. 809, 814-15 (1994).

According to Owens, this case is analogous to Pacor, in which the

Third Circuit held that a third-party action was not "related to" the

bankruptcy case because the defendant only had a common law right

to indemnification from the debtor. The court reasoned that a judgment against the defendant in the third-party action could not determine any rights, liabilities, or course of action of the debtor, because

 10
neither res judicata nor collateral estoppel could be asserted against

the debtor. Significantly, the court specifically distinguished its holding from In re Brentano's, 27 B.R. at 90. In that case, a bankruptcy

court found "related to" jurisdiction on the ground that the obligation

of reimbursement between the debtor and the defendant in the thirdparty action was set by contract, which meant that a successful claim

against the defendant would automatically result in indemnification

liability against the debtor. Pacor, 743 F.2d at 995-96.

We do not believe that Pacor suggests that "related to" jurisdiction

does not exist over the Contribution Action. Given that Rapid's proof

of claim against the Celotex bankruptcy estate rests on a contractual

obligation of indemnity, we believe that the situation before us is

more analogous to the situation in In re Brentano's than the situation

in Pacor. Furthermore, Owens' claim against the Celotex bankruptcy

estate serves as an additional link between the Contribution Action

and the Celotex bankruptcy case, a link that was not present in Pacor.

In conclusion, we hold the Contribution Action is"related to" the

Celotex bankruptcy case. Therefore, the district court properly exercised subject matter jurisdiction over it.4

II.

We next review the district court's decision to dismiss the Contribution Action for lack of personal jurisdiction over Rapid. In this

task, we review legal conclusions de novo and any underlying factual

_________________________________________________________________

4 Owens alternatively argues that the mandatory abstention provision of

28 U.S.C. § 1334(c)(2) prohibited the district court from exercising subject matter jurisdiction over this case. That provision mandates that

"upon timely motion" the district court abstain from hearing a case in

federal court on "related to" jurisdiction if the action is commenced and

can be timely adjudicated in state court. We do not address this argument, because Owens waived any right to invoke the mandatory abstention provision of § 1334(c)(2) by failing to make an appropriate motion.

See In re Mauldin, 52 B.R. 838, 842 (N.D. Miss. 1985) (refusing to consider whether mandatory abstention provisions of 28 U.S.C. § 1334(c)(2)

applied because there was no motion of record for mandatory abstention).

 11
findings for clear error. See Mylon Lab., Inc. v. Akzo, N.V., 2 F.3d 56,

60 (4th Cir. 1993). Below, the district court concluded that it could

not exercise personal jurisdiction over Rapid without violating

Rapid's right to due process under the Due Process Clause of the

Fourteenth Amendment. Specifically, the district court concluded that

Rapid did not have sufficient minimum contacts with West Virginia

such that it could be legally subject to personal jurisdiction in that

forum.

Owens' attack on the district court's decision to dismiss for lack of

personal jurisdiction is two-fold. First, Owens argues that Rapid had

sufficient contacts with West Virginia under the successor corporation

theory to subject it to personal jurisdiction in West Virginia. Second,

Owens argues that the district court committed plain error by failing

to recognize that personal jurisdiction existed over Rapid pursuant to

Bankruptcy Rule 7004. We address each argument in turn.

A.

In order for a court to validly exercise personal jurisdiction over a

non-resident defendant: (1) a statute must authorize service of process

on the non-resident defendant, and (2) the service of process must

comport with the Due Process Clause. See Mylan Lab., Inc., 2 F.3d

at 60. Because the West Virginia long-arm statute is coextensive with

the full reach of due process, see Pittsburgh Terminal Corp. v. Mid

Allegheny Corp., 831 F.2d 522, 525 (4th Cir. 1987), it is unnecessary

in this case to go through the normal two-step formula for determining the existence of personal jurisdiction, see, e.g., Stover v.

O'Connell Assocs., Inc., 84 F.3d 132, 135-36 (4th Cir.) (Maryland

forum state), cert. denied, 117 S. Ct. 437 (1996); Rossman v. State

Farm Mut. Auto. Ins. Co., 832 F.2d 282, 286 n.1 (4th Cir. 1987) (Virginia forum state); Columbia Briargate Co. v. First Nat'l Bank of

Dallas, 713 F.2d 1052, 1057 (4th Cir. 1983) (South Carolina forum

state). Rather, the statutory inquiry necessarily merges with the Constitutional inquiry. Accordingly, our inquiry centers on whether exercising personal jurisdiction over Rapid is consistent with the Due

Process Clause. See Stover, 84 F.3d at 136.

A court's exercise of personal jurisdiction over a non-resident

defendant is consistent with the Due Process Clause if the defendant

 12
has sufficient "minimum contacts" with the forum such that requiring

the defendant to defend its interests in the forum does not "offend

`traditional notions of fair play and substantial justice.'" International

Shoe Co. v. Washington, 326 U.S. 310, 316 (1945) (quoting Miliken

v. Meyer, 311 U.S. 457, 463 (1940)). Later cases have clarified that

the minimum contacts must be "purposeful." Burger King Corp. v.

Rudzewicz, 471 U.S. 462, 474 (1985). This "purposeful" requirement

rests on the basic premise that traditional notions of fair play and substantial justice are offended by requiring a non-resident to defend

itself in a forum when the non-resident never purposefully availed

itself of the privilege of conducting activities within the forum, thus

never invoking the benefits and protections of its laws. See Hanson

v. Denckla, 357 U.S. 235, 253 (1958); Stover, 84 F.3d at 136. Moreover, this "purposeful" requirement "helps ensure that non-residents

have fair warning that a particular activity may subject them to litigation within the forum." Plant Genetic Systems, N.V. v. Ciba Seeds,

933 F. Supp. 519, 523 (M.D.N.C. 1996) (citing Burger King, 471

U.S. at 472, and World-Wide Volkswagen Corp. v. Woodson, 444 U.S.

286, 297 (1980)).

When, as here, a court's power to exercise personal jurisdiction

over a non-resident defendant is challenged by a motion under Federal Rule of Civil Procedure 12(b)(2), "the jurisdictional question thus

raised is one for the judge, with the burden on the plaintiff ultimately

to prove the existence of a ground for jurisdiction by a preponderance

of the evidence." Combs v. Bakker, 886 F.2d 673, 676 (4th Cir. 1989).

Furthermore, when, as here, a district court rules on a Rule 12(b)(2)

motion without conducting an evidentiary hearing or without deferring ruling pending receipt at trial of evidence relevant to the jurisdictional issue, but rather relies on the complaint and affidavits alone,

"the burden on the plaintiff is simply to make a prima facie showing

of a sufficient jurisdictional basis in order to survive the jurisdictional

challenge." Combs, 886 F.2d at 676. "In considering a challenge on

such a record, the court must construe all relevant pleading allegations in the light most favorable to the plaintiff, assume credibility,

and draw the most favorable inferences for the existence of jurisdiction." Id.

Owens' complaint asserted that personal jurisdiction over Rapid

existed under the successor corporation liability theory. Under that

 13
theory, a non-resident defendant corporation not otherwise subject to

personal jurisdiction in the forum state becomes so by virtue of its

succeeding to a corporation that was subject to personal jurisdiction

in the forum state. See City of Richmond v. Madison Management

Group, Inc., 918 F.2d 438, 455 (4th Cir. 1990) (affirming exercise of

personal jurisdiction based on successor liability theory).

According to Owens' complaint, Rapid is the successor corporation

of Old Carey. Assuming the validity of this assertion for the sake of

argument, Owens still cannot meet its burden of establishing a prima

facie showing of personal jurisdiction over Rapid, because the record

does not establish that the exercise of personal jurisdiction over Old

Carey in West Virginia would comport with the Due Process Clause.

Owens does not even allege that Old Carey, an Ohio corporation with

its principal place of business in Cincinnati, Ohio, ever purposely

directed activities in West Virginia. Rather, Owens' complaint only

asserts that Old Carey would be subject to personal jurisdiction in

West Virginia by virtue of its asbestos containing products "reach-

[ing]" West Virginia "in the normal stream of commerce." (J.A. 7).

Owens' assertion is known in personal jurisdiction jurisprudence as

the "stream of commerce theory."

Our decision in Lesnick v. Hollingsworth & Vose Co., 35 F.3d 939

(4th Cir. 1994), is dispositive on this issue. In Lesnick, a plaintiff,

whose husband had died of mesothelioma, sued a non-resident defendant corporation. The non-resident corporation manufactured the

"Micronite Filter" used on a particular brand of cigarettes that the

plaintiff's husband smoked. The plaintiff alleged that asbestos incorporated into the filter caused her husband's death. The non-resident

defendant corporation had manufactured approximately ten billion

such filters with the knowledge that the filters would be incorporated

into cigarettes sold throughout the nation. The plaintiff urged that the

non-resident corporation was subject to personal jurisdiction in the

forum for two reasons: (1) the nonresident defendant corporation

placed its filters in the stream of commerce with the expectation that

they would be purchased by consumers in the forum state; and (2) the

non-resident defendant corporation and the manufacturer of the cigarettes were so closely affiliated that the manufacturer's distribution of

its cigarettes into the forum should be attributed to the non-resident

defendant corporation. We rejected both theories, making clear that

 14
a non-resident defendant may only be subject to personal jurisdiction

under the "stream of commerce theory" if that defendant engaged in

some activity purposely directed at the forum state. See id. at 945-46.

In this regard, we explained:

The touchstone of the minimum contacts analysis remains

that an out-of-state person have engaged in some activity

purposefully directed toward the forum state . . . . To permit

a state to assert jurisdiction over any person in the country

whose product is sold in the state simply because a person

must expect that to happen destroys the notion of individual

sovereignties inherent in our system of federalism. Such a

rule would subject defendants to judgment in locations

based on the activity of third persons and not the deliberate

conduct of the defendant, making it impossible for defendants to plan and structure their business contacts and risks.

Id. at 945 (emphasis added).

Here, Owens has not alleged more than the entry of Old Carey

products into the stream of commerce with the expectation that they

would be purchased in West Virginia. Critically, Owens' complaint

is wholly devoid of any allegations that Old Carey engaged in any

activity purposefully directed at West Virginia. Thus, under Lesnick,

the district court was correct in concluding that Owens' attempt to

establish personal jurisdiction via Old Carey fails.5

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5 Apparently sensing the weakness of its argument based on the stream

of commerce theory, Owens urges us to excuse its failure to even allege

that Old Carey engaged in conduct purposely directed at West Virginia

on the basis that it was denied the opportunity to develop evidence to that

effect. Owens apparently misunderstands its burden in filing a civil

action. Both West Virginia Rule of Civil Procedure 8(a) and Federal

Rule of Civil Procedure 8(a) require a plaintiff filing a complaint to

include a short and plain statement of the grounds upon which the court's

jurisdiction depends. Not surprisingly, Owens offers no authority for the

position that it should be relieved of this minimal burden.

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B.

We now address Owens' argument that the district court committed

plain error by failing to recognize that personal jurisdiction over

Rapid existed pursuant to Bankruptcy Rule 7004. In doing so, we will

first consider whether Bankruptcy Rule 7004 even provides a basis

for personal jurisdiction over Rapid.

We have determined that this case is properly in federal district

court on "related to" jurisdiction under § 1334(b). The entire body of

Bankruptcy Rules, therefore, applies to this action. See Anderson v.

F.D.I.C., 918 F.2d 1139, 1143 n.3 (4th Cir. 1990) (citing Bankruptcy

Rule 1001 and holding that Bankruptcy Rules apply to an action in

federal district court based on "related to" jurisdiction under 28

U.S.C. § 1334(b)); see also Phar-Mor, Inc. v. Coopers & Lybrand, 22

F.3d 1228, 1236-37 (3d Cir. 1994) (same); Diamond Mortgage Corp.

of Illinois v. Sugar, 913 F.2d 1233, 1240-41 (7th Cir. 1990) (same).

Of relevance here, Bankruptcy Rule 7004(d) allows the service of

process otherwise permitted under Bankruptcy Rule 7004 to be

effected "anywhere in the United States." Of further relevance, Bankruptcy Rule 7004(f) provides that if the exercise of jurisdiction is consistent with the United States Constitution and the laws of the United

States, then service in accordance with Bankruptcy Rule 7004 is "effective to establish personal jurisdiction over the person of any defendant with respect to a case . . . related to a case under the

[Bankruptcy] Code." (emphasis added). Our review reveals that the

requirements of Bankruptcy Rule 7004(f) are met in this case.

On the topic of whether the exercise of personal jurisdiction over

Rapid is consistent with the Constitution and the laws of the United

States, the question of whether Rapid had minimum contacts with

West Virginia is irrelevant. This is so because when an action is in

federal court on "related to" jurisdiction, the sovereign exercising

authority is the United States, not the individual state where the federal court is sitting. See Diamond, 913 F.2d at 1244 (holding that contacts between defendants and the State of Illinois had no bearing upon

whether the district court could exercise personal jurisdiction over

defendants in a case in federal district court on "related to" jurisdiction under 28 U.S.C. § 1334(b)); see also In re Am. Freight Sys., Inc.,

153 B.R. 316, 321 (D. Kan. 1993); In re B.R. Moran Fin. Corp., 124

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B.R. 931, 943 (S.D.N.Y. 1991). Rather, we need only ask whether

Rapid has minimum contacts with the United States such that subjecting it to personal jurisdiction does not offend the Due Process Clause

of the Fifth Amendment to the United States Constitution. See

Diamond, 913 F.2d at 1244. Given that Rapid is a Delaware corporation with its principal place of business in New York, we have no

doubt that this is the case.

Turning to the service of process requirement of Bankruptcy Rule

7004(f), Rapid does not dispute that it received service of process in

accordance with West Virginia Rule of Civil Procedure 4, which rule

provides for service of process on a domestic (i.e., United States) corporation in the same manner as Bankruptcy Rule 7004. Compare W.

Va. R. Civ. P. 4(d)(5) with Bankruptcy Rule 7004(b)(3). Thus, Rapid

received service of process in accordance with one of the methods

provided by Bankruptcy Rule 7004.

As Owens recognizes, even though we have concluded that Bankruptcy Rule 7004 provides a clear basis for personal jurisdiction over

Rapid, reversal of the district court's dismissal is not automatic.

Owens failed to argue the applicability of Bankruptcy Rule 7004

below, thereby forfeiting any resulting error in the district court's dismissal for lack of personal jurisdiction.

While Federal Rule of Criminal Procedure 52(b)6 affords federal

appellate courts the discretion to correct certain forfeited errors in the

criminal context, in the civil context such discretion is judicially created. See New York Central R.R. v. Johnson, 279 U.S. 310, 318-19

(1929); Fashauer v. New Jersey Transit Rail Operations, Inc., 57

F.3d 1269, 1289 (3d Cir. 1995); Mondave v. Long Island Jewish Medical Center, 501 F.2d 1065, 1072 (2d Cir. 1974). While the Supreme

Court has never specifically articulated a test that a federal appellate

court must apply in determining whether it may exercise its discretion

to correct a forfeited error in the civil context, it has done so in the

criminal context. See United States v. Olano, 507 U.S. 725 (1993).

Under Olano, a federal appellate court may exercise its discretion to

_________________________________________________________________

6 Federal Rule of Criminal Procedure 52(b) provides: "Plain errors or

defects affecting substantial rights may be noticed although they were

not brought to the attention of the court."

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correct an error not raised below under Federal Rule of Criminal Procedure 52(b), if: (1) there is an error; (2) the error is plain; (3) the

error affects substantial rights; and (4) the court determines, after

examining the particulars of each case, that the error seriously affects

the fairness, integrity or public reputation of judicial proceedings. See

Olano, 113 S. Ct. at 1776.

Since Olano, federal appellate courts have wrestled with its applicability in the civil context. The Fifth Circuit has concluded that

Olano governs a federal appellate court's "plain error" review in the

civil context. See Highlands Ins. v. Nat'l Union Fire Ins., 27 F.3d

1027, 1031-32 (5th Cir. 1994) (applying Olano test in determining

whether to consider challenges to jury charges made for the first time

on appeal). The Third Circuit and the Sixth Circuit have taken guidance from Olano in determining whether to exercise their discretion

to reverse upon finding plain error in the civil context on the ground

that the principles and decision in Olano apply a fortiori in the civil

context. See Fashauer, 57 F.3d at 1289; Smith v. Gulf Oil Co., 995

F.2d 638, 646 (6th Cir. 1993). At least one other circuit has applied

the Olano test in the civil context without expressly saying so. See,

Rush v. Smith, 56 F.3d 918, 922 (8th Cir. 1995). Because we cannot

conceive of a reason why an appellant in a civil case should bear a

lesser burden for obtaining correction of a forfeited error than an

appellant in a criminal case, we hold that, at a minimum, the requirements of Olano must be satisfied before we may exercise our discretion to correct an error not raised below in a civil case. See Fashauer,

57 F.3d at 1289 ("If anything, the plain error power in the civil

context--which is judicially rather than statutorily created--should

be used even more sparingly."); United States v. Carson, 52 F.3d

1173, 1188 (2d Cir. 1995) (opining that the plain error doctrine

should only be invoked with extreme caution in the civil context). We

note that our holding is consistent with a pre-Olano Supreme Court

decision in a civil appeal, in which the Court recognized its "authority

and duty," and presumably that of all federal appellate courts, to "notice federal-court errors to which no exception has been taken, when

they `seriously affect the fairness, integrity or public reputation of

judicial proceedings.'" Connor v. Finch, 431 U.S. 407, 421 (1977)

(quoting United States v. Atkinson, 297 U.S. 157, 160 (1936)). See

also Fowler v. Land Management Groupe, Inc., 978 F.2d 158, 164

(4th Cir. 1992) (refusing to address legal theory not advanced below

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in a pre-Olano civil case, because the new theory did not result in

"`plain'" error or a "`miscarriage of justice.'") (quoting Nat'l Wildlife

Fed'n v. Hanson, 859 F.2d 313, 318 (4th Cir. 1988)).

Application of the Olano test in this case shows that all of the

Olano elements are not satisfied. Even assuming for the sake of argument that the first three elements of Olano are satisfied, several factors strongly weigh against our concluding that the fairness, integrity

or public reputation of judicial proceedings will be seriously affected

if we do not correct the district court's error. See Olano, 113 S. Ct.

at 1776. Owens is a sophisticated party that is well versed in the rigors of civil litigation. A search on Westlaw reveals that Owens has

either been a plaintiff or a defendant in at least seven hundred civil

cases. Thus, Owens cannot seek to excuse its failure to bring the

effect of Bankruptcy Rule 7004 to the attention of the district court

on the basis of its unfamiliarity with the litigation forum. Moreover,

Owens does not claim that it in any way lacked the opportunity to

raise the issue. Furthermore, Owens still has the opportunity under the

Confirmed Plan to recover some of its damages from the Asbestos

Claims Trust. In sum, we do not believe that the facts here call for

us to exercise our discretion to correct an error not raised by the

appellant below.

III.

In conclusion, we hold that: (1) we possess appellate jurisdiction

to review Owens' motion to remand to the extent that it challenges

the district court's subject matter jurisdiction; (2) the district court

possessed subject matter jurisdiction over the Contribution Action

pursuant to 28 U.S.C. § 1334(b); (3) the district court lacked personal

jurisdiction over Rapid under the successor corporation theory; and

(4) although the district court possessed personal jurisdiction over

Rapid pursuant to Bankruptcy Rule 7004, the facts here do not warrant that we exercise our discretion to correct the forfeited error.

Accordingly, we affirm the district court's denial of Owens' motion

for remand and the district court's dismissal of the Contribution

Action pursuant to Federal Rule of Civil Procedure 12(b)(2).

AFFIRMED

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