# U ni te d S ta te s Co ur t of A pp ea ls

For the Eig hth Circu it

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No. 1 4- 30 54

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Crea ti ve Cal li ng So lu ti on s, In c.,

ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff - App el la nt

,

v.

LF Beau ty L td

.,

ll ll ll ll ll ll ll ll ll ll l Defe nd

an t - Ap pe ll ee

.

__ __ __ __ __ __
App eal fro m

Uni te d S ta te s Di st ric t Co ur t fo r th e So ut he rn Dis tri ct of I owa - Des M oi ne s

__ __ __ __ __ __

Su bm it te d: Marc h 2 4, 2 01 5
Fil ed : Au gu st 21 , 20 15

__ __ __ __ __ __

Befo re RI LEY, Chi ef J ud ge , COLLOTO N and KELLY , Cir cu it Ju dg es

.

__ __ __ __ __ __

COLLOTON, Ci rcu it Ju dg e.

Crea ti ve Cal li ng So lu ti on s, In c., an Io wa co rp or at io n, su ed LF Bea ut y Ltd

. of

Hon g Kon g fo r br each of co nt ract

. The di st ric t co ur t gr an te d LF Bea ut y ’s m ot io n to

di sm is s fo r la ck of pe rs on al juri sd ic ti on , aft er co ns id eri ng th e co nt ract an d affi da vi ts

su bm it te d by bo th pa rti es

. W e rev ers e th e di sm is sa l be cau se a reas on ab le jury co ul d

fin d th at LF Bea u t y h a d su ffi ci en t co nt act s wit h Io wa to jus ti fy th e ex erci se ofpe rs on al juri sd ic ti on an d th at th e ex erci se of juri sd ic ti on wou ld no t of

fen d tra di ti on al

no ti on s o f fai r pl ay

an d s ub st an ti al jus ti ce.

I.

Crea ti ve C a l l i n g , an Io wa co rp or at io n wit h it s pr in ci pa l pl ace of bu si ne ss in

Io wa, de si gn s, de ve lo ps , an d se ll s be au ty pr od uc ts

. LF Bea ut y is a Hon g Kon g

co rp or at io n, wit h it s pr in ci pa l pl ace of bu si ne ss in Hon g Kon g, th at pr ov id es se rv ic es , in cl ud in g pr od uc t a nd sa m pl e de ve lo pm en t, sh ip pi ng ov ers ig ht

, an d pr od uc ti on pl an ni ng

. LF Bea ut y co nt act ed Alan U n g e r , th e Pres id en t an d CEO of Crea ti ve
Cal li ng , in Io wa to so li ci t bu si ne ss

. LF Bea ut y so ug ht to m an ag e Crea ti ve Cal li ng ’s

op erat io ns in fras tru ct ur e in Ch in a i n e x c h a ng e fo r a fee an d e-m ai le d Ung er a

Po w e r P o in t pr es en ta ti on de sc rib in g th e pr op os ed se rv ic es

. Afte r th ree m on th s of

ne go ti at io n, Ung er tra ve le d to Hon g Kon g to ex ecu te th e co nt ract be twee n LF Bea ut y

an d C reat iv e Cal li ng in Marc h 2 01 2.

The co nt ract pr ov id ed th at LF Bea ut y wou ld o v e r s e e Crea ti ve Cal li ng ’s

op erat io ns in Ch in a, in cl ud in g m an a g i n g pr od uc ti on pr oc es se s at fact or ie s of th ird

pa rti es

. LF Bea ut y m an ag ed Crea ti ve Cal li ng ’s su pp ly ch ai n pu rs ua nt to th e co nt ract

an d co m m un ic at ed ex te ns iv el y wit h Crea ti ve Cal li ng el ect ro ni cal ly an d by te le ph on e

fo r ne arl y two y ears

.

The co nt ract al so req ui red th at LF Bea ut y m ak e pr e-p ro du ct io n sam pl es , th at

Crea ti ve Cal li ng ap pr ov e th os e sa m pl es , an d th at LF Bea ut y ’s ex pe nd it ur es on frei gh t

to se nd sa m

pl es to Crea ti ve Cal li ng wou ld be pa ss ed th ro ug h wit h no ad di ti on al fee.

LF Bea ut y sh ip pe d th ou sa nd s of bo th pr e-p ro du ct io n an d pr od uc ti on sa m pl es th at

were m ad e in Ch in a by th ird pa rty fact or ie s fro m it s of fic e in Hon g Kon g to Crea ti ve
Cal li ng in Iowa for clo se to two y ears

.

-2

-In ex ch an ge fo r th es e se rv ic es , th e co nt ract req ui red Crea ti ve Cal li ng to pa y LF

Bea ut y a fee or , in so m e ci rcu m st an ces , to rei m bu rs e LF Bea ut y fo r co st s. LF Bea ut y

was to rece iv e pa y m en ts fro m Crea ti ve Cal li ng ’s cu st om ers on it s be ha lf, an d th en

rem it to Crea ti ve C a l l i n g t he pr oc eed s le ss cert ai n de du ct io ns

. Pu rs ua nt to th os e

pr ov is io ns , LF Bea ut y m ad e si gn ifi can t pa y m en ts to Crea ti ve Cal li ng in Io wa. No LF

Bea ut y ag e n ts or em

pl oyees vi si te d Io wa to es ta bl is h or m ai nt ai n it s bu si ne ss
rel at io ns hi p wit h Crea ti ve C a ll in g, an d LF Bea ut y ha s no co nn ect io n wit h Io wa

ou ts id e o f th is bu si ne ss rel at io ns hi p.

Alm os t two y ears aft er Crea ti ve Cal li ng an d LF Bea ut y ex ecu te d th e co nt ract

, Crea ti ve Cal li ng fil ed su it in Io wa co ur t. Crea ti ve Cal li ng al le ge d th at LF Bea ut y
b r each ed th e co nt ract by se nd in g sa m pl es th at co ul d no t be us ed fo r m ar k e t i n g o r

sa l e s f o r va rio us reas on s, in cl ud in g th at th e sa m pl e co nt ai ne rs were in co rrec tl y
la be le d, th at th e sa m

pl es were co nt am in at ed , a nd t ha t th e sa m pl es were im

pr op erl y

pa ck ag ed

. LF Bea ut y rem ov ed th e su it to fed eral co ur t an d m ov ed to di sm is s fo r la ck

of pe rs on al juri sd ic ti on un de r Fed

. R. Ci v. P. 12 (b )(2 ). Bo th pa rti es su bm it te d

affi da vi ts wit h th ei r br ie fin g on th e m ot io n t o d i s mi ss , an d LF Bea ut y fil ed th e

co nt ract as an ex hi bi t. The di st ric t co ur t gr an te d LF Bea ut y ’s m ot io n, rel y in g in pa rt

on th e co nt ract an d t he pa rti es ’ affi da vi ts

. Crea ti ve Cal li ng ap pe al s, and we rev ie w
th e di st ric t co ur t’s de ci si on de no vo

. Dever v. Hen tz en Co at in gs
, In c. , 38 0 F.3 d 10 70

, 10 72 (8t h C ir. 2 00 4)

.

II.

To su rv iv e a m ot io n to di sm is s fo r la ck of pe rs on al juri sd ic ti on , a pl ai nt iff m us t pl ead “ su ffi ci en t fa ct s t o s up po rt a reas on ab le in fere nc e th at th e de fen da nt [] can b e

su bjec te d to juri sd ic ti on wit hi n th e st at e.” K-V Pha rm. Co

. v. J. Uri ac h & CIA, S.A.

, 64 8 F.3 d 58 8, 59 1- 92 (8 th Ci r. 20 11 ) (al te rat io n in or ig in al ) (in te rn al qu ot at io n m ark s

om it te d)

. Bu t whe re, as he re, t he pa rti es su bm it affi da vi ts to bo ls te r th ei r po si ti on s

on th e m ot io n, an d th e di st ric t co ur t rel ie s on th e ev id en ce, th e m ot io n is in su bs ta nc e

-3

-on e fo r su m

m ary jud gm en t. Rad

as ze ws ki ex re l. Rad

as ze ws ki v. Tel eco m Co rp

. , 98 1

F.2 d 30 5, 30 9- 10 (8 th Ci r. 19 92 ); cf

. Bla ir v. W

il ls

, 42 0 F.3 d 82 3, 82 6- 27 (8 th Ci r.

20 05 ). The pl ai nt iff be ars th e b ur de n o f pr oo f on th e is su e o f pe rs on al juri sd ic ti on ,

an d m us t es ta bl is h juri sd ic ti on by a pr ep on de ran ce of th e ev id en ce at tri al or whe n th e

co ur t ho ld s an ev id en ti ary he ari ng

. Dak ot a Ind us
., In c. v. Dak

ot a Sp or ts wea r, Inc.

, 94 6 F .2d 13 84 , 13 87 (8t h C ir. 1 99 1) . At th e m ot io n s ta ge , th e act io n s ho ul d n ot be

di sm is se d fo r la ck of juri sd ic ti on if th e ev id en ce, vi ewed in th e li gh t m os t fav or ab le

to Crea ti ve Cal li ng , is su ffi ci en t to su pp or t a co nc lu si on th at th e ex erci se of pe rs on al
juri sd ic ti on ov er LF Bea ut y is pr op er. Se e Rad as ze ws ki ex re l. Rad

as ze ws ki

, 98 1 F.2 d

at 30 9- 10 ; Fe d. R. C iv . P. 56 (a).

A fed eral co ur t m ay as su m e juri sd ic ti on ov er a de fen da nt in a di ve rs it y act io n

if th e fo ru m St at e’s lo ng -arm st at ut e pe rm it s th e ex erci se of pe rs on al juri sd ic ti on an d

th at exerci se is co ns is te nt wit h th e Due Pro ces s Cl au se of th e Fo ur te en th Am en dm en t.

K-V Pha rm. Co

. , 64 8 F.3 d at 59 2. Io wa’s lo ng -arm st at ut e is co -ex te ns iv e wit h “ th e
wid es t du e pr oc es s pa ram et ers ” pe rm it te d by th e Co ns t i t u ti on

. Hammo nd v. Fla

. Ass et Fin

. Co rp

. , 69 5 N.W .2d 1

, 5 ( I o wa 20 05 ). The di st ric t co ur t m ay th us as se rt

pe rs on al juri sd ic ti on ov er LF Bea ut y if th e ex erci se of juri sd ic ti on co m po rts wit h du e

pr oc es s.

The Due Pro ces s Cl au se pe rm it s th e ex erci se of “ ge ne ral juri sd ic ti on ” to he ar

“ an y a n d al l cl ai m s ag ai ns t” a de fen da nt if it s “ affi li at io ns wit h th e St at e are so

co nt in uo us an d syste m at ic as to r e n d e r [it ] es se nt ia ll y at ho m e in th e fo ru m St at e.”

Dai mler AG v. Bau man , 13 4 S. Ct

. 74 6, 75 4 (2 01 4) (in te rn al qu ot a t io n m ark s

om it te d)

. “ Sp eci fic juri sd ic ti on ,” by co nt ras t, is pr op er whe n a de fen da nt ha s cert ai n

co nt act s wit h th e fo ru m St at e an d th e cau se of act io n ari se s ou t of th os e co nt act s. Id

. Crea ti ve Cal li ng arg ue s t ha t LF Be au ty is s ub ject t o s pe ci fic juri sd ic ti on in Iowa to

an swe r Cre at iv e Cal li ng ’s bre ach of c on tra ct cla im

.

-4

-Due pro ces s re qu ire s t ha t a d efen da nt ha ve cert ai n “ m in im um co nt act s” wit h

th e fo ru m St at e fo r th e St at e to ex erci se sp eci fic juri sd ic ti on

. Se e W or ld -W id e
Vol ks wa ge n Co rp

. v. W

oo ds on , 44 4 U.S. 28 6, 29 1 (1 98 0)

. Thi s co nn ect io n m us t be

ba se d on “ so m e act by whi ch th e de fen da nt pu rp os efu ll y av ai ls it se lf of th e pr iv il eg e

of co nd uc ti ng act iv i t i es wit hi n th e fo ru m St at e, th us in vo ki ng th e be ne fit s an d

pr ot ect io ns of it s la ws.” Bur ge r Ki ng Co rp

. v. Rud

ze wi cz , 47 1 U.S. 46 2, 47 4- 75
(1 98 5) (in te rn al qu ot at io n m ark om it te d)

. The de fen da nt ’s con ta ct s wi th th e fo ru m

m us t th us be m or e th an “ ran do m , fo rtu it ou s, or at te nu at ed

, ” a n d mu s t pe rm it th e
de fen d a n t to “ reas on ab ly an ti ci pa te be in g ha le d in to co ur t th ere.” Id

. (in te rn al

qu ot at io n m ark s o m it te d)

.

To as se ss whe th er a de fen da nt ha s pu rp os efu ll y av ai le d it se lf of th e fo ru m an d

es ta bl is he d m in im

um co nt act s, we ex am in e t h e n a tu re, qu al it y , an d qu an ti ty of th e
de fen da nt ’s c on ta ct s wit h th e fo ru m St at e an d th e c o n n e c t io n be twee n th e cau se of

act io n a nd th os e co nt act s. Se e Dig i-T el Hol di ng s, In c. v. Pro te q Tel eco mm. (PTE),

L t d.

, 89 F.3 d 51 9, 52 2- 23 (8 th Ci r. 19 96 ). Fo r co nt ract ua l cl ai m s, pe rs on a l
juri sd ic ti on is pr op er whe re th e de fen da nt “ reac h[ es ] ou t be y on d on e st at e an d

crea te [s ] co nt in ui ng rel at io ns hi ps an d ob li ga ti on s wit h ci ti zen s of a n o t h e r st at e.”

Bu rg er Ki ng Co rp

. , 47 1 U.S. at 47 3 (in te rn al qu ot at io n m ark s om it te d)

. Bu t a

co nt ract wit h a ci ti zen of a St at e al on e is in su ffi ci en t to es ta bl is h m in im um co nt act s
wit h th at fo ru m

. I

d

. a t 47 8. To de te rm in e whe th er a de fen da nt pu rp os efu ll y

es ta bl is he d m in im

um co nt act s wit h th e fo ru m , we m us t ev al ua te “ pr io r ne go ti at io ns

an d con te m

pl at ed fu tu re con se qu en ces , al on g with th e te rm s of th e co nt ract an d th e

pa rti es ’ act ua l co ur se of d eal in g.” Id . at 4 79

.

Crea ti ve Cal li ng ha s pr es en te d su ffi ci en t fact s fo r a reas on ab le jury to co nclude

th at LF Beau ty esta bl is he d m in im um co nt act s wi th Iowa th at pe rm it th e ex erci se of

pe rs on al juri sd ic ti on

. A de fen da nt ’s so li ci ta t i o n of a bu si ne ss rel at io ns hi p wit h a

co m pa ny in co rp or at ed in th e fo ru m St at e th at ta ke s pl ace wit hi n th at St at e is a
rel ev an t co nt act in de te rm in in g whe th er it s co ur ts m ay ex erci se pe rs on al juri sd ic ti on

.

-5

-Se e Fas tp at h, In c. v. Arb el a Tech s. Co rp

. , 76 0 F.3 d 81 6, 82 2- 24 (8 th Ci r. 20 14 ). LF

Bea ut y fir st co nt act ed Crea ti ve Cal li ng in Iowa to so li ci t b us in es s. LF Bea ut y th en

co rres po nd ed nu m ero us ti m es wit h Crea ti ve Cal li ng vi a e-m ai l an d te le ph on e whi le

ne go ti at in g th e co nt ract fo r th e ne xt th ree m on th s. Afte r th e co nt ract ne go ti at io ns ha d

co nc lu d ed an d th e co nt ract was ex ecu te d, Crea ti ve Cal li ng an d LF Bea ut y

co m m un ic at ed da il y vi a e-m ai l an d te le ph on e fo r cl os e to two y ears

. W hi le su ch

co m m un ic at io ns “ do no t th em se lv es es ta bl is h ju r i s d i ct io n,” th ey “ m ay be us ed to

su pp or t th e ex erci se of pe rs on al juri sd ic ti on .” Dig i-T el Hol di ng

s, In c. , 89 F.3 d at

52 3. At le as t si xt een LF Bea ut y em pl o ye e s c o r res po nd ed wit h Crea ti ve Cal li ng in

Io wa v i a e-m ai l du rin g th is ti m e, th us su pp or ti ng th e co nc lu si on th at LF Bea ut y

pu rp os efu ll y es ta bl is he d nu m ero us co nt act s wit hi n th e fo ru m st at e. Se e K-V Pha rm.

Co

. , 64 8 F .3d at 5 93 -9 5.

Crea t i v e Cal li ng arg ue s th at LF Bea ut y ’s sh ip m en t of sa m pl es to Crea ti ve
Cal li ng i n I o w a is a si gn ifi can t co nt act wit h th e fo ru m

. LF Bea ut y , c it in g Dig i-T el

Hol di ng s , res po nd s th at m ai li ng sa mp l e s i s n ot a si gn ifi can t co nt act be cau se th e

sa m pl es were no t LF Bea ut y pr od uc ts an d th e sh ip pi ng was on ly in ci de nt al to LF

B e a u t y’s pe rfo rm an ce of th e co nt ract

. W e sa id in Dig i-T el Hol di ng

s th at a
de fen da nt ’s sh ip m en t of cel l ph on e sa m pl es “ in to th e fo ru m rep res en ts a ‘casu al ’ or

‘fort ui to us ’ co nt act rat he r th an a si gn ifi can t co nt act wit h th e fo ru m .” 89 F.3 d at 52 3.

Bu t in Dig i-T

el Hol di ng

s , th e de fen da nt sh ip pe d on ly fo ur sa m pl es to th e pl ai nt iff in

th e fo ru m St at e, an d th ere is no in di cat io n th at th e co nt ract req ui red or co nt em pl at ed

th at sh ip m en t. Se e id

.

The co nt ract in th is cas e ex pl ic it ly cal le d fo r LF Beauty to m ak e pr e-p ro du ct io n

sa m pl es an d req ui red Crea ti ve Cal li ng to ap pr ov e th os e sa m pl es

. The ag reem en t th us

co nt em pl at ed th at LF Bea ut y wou ld se nd th os e sa m pl es to Crea ti ve Cal li ng at it s on ly
pl ace o f b u s in es s in Io wa. The co nt ract al so pl ai nl y im pl ie d th at LF Bea ut y was

res po ns ib le fo r s h i p p in g pr e-p ro du ct io n an d pr od uc ti on sa m pl es , as it req ui red

Crea ti ve Cal li ng to rei m bu rs e LF Bea ut y fo r th e co st s of sh ip pi ng sa m pl es

. LF

-6

-Bea ut y m ai le d th ou sa nd s of bo th pr e-p ro du ct io n an d pr od uc ti on sa m pl es fab ric at ed

in Ch in a to Crea ti ve Cal li ng in Io wa, acco rd in g to an affi da vi t in tro du ced by Crea ti ve
Cal li ng

. Alt ho ug h LF Bea ut y co un te red th is affi da vi t wit h ev id en ce th at so m e of th e

pr od uc t i o n s a mple s were m ai le d di rect ly fro m th e fact or ie s in Ch in a to Crea ti ve
Cal li ng , we m

us t co ns id er th e ev id en ce in th e li gh t m os t fav or ab le to Crea ti ve Cal li ng

at th is st ag e of th e pr oc eed in g. Thu s, un li ke in Dig i-T el Hol di ng

s , “ th e te rm s of th e

co nt ract an d th e pa rti es ’ act ua l co ur se of de al in g” de m on st rat e th at LF Be a u ty

pu rp os efu ll y es ta bl is he d si gn ifi can t co nt act s wit h Io wa by mai l in g th ou sa nd s of

sa m pl es

. Se e Bur

ge r Ki ng Co rp

. , 47 1 U

. S

. a t 4 7 9

. Tha t LF Bea ut y di d no t it se lf

m an uf act ur e th e sa m

pl es , an d th at th e sa m

pl es were of Creat iv e Cal li ng ’s pr od uc ts

, do es no t al te r th e c o n c l u s i on th at LF Bea ut y ’s sh ip m en t of th ou sa nd s of sa m pl es

pu rs ua nt to th e co nt ract co ns ti tu te s a si gn ifi can t an d pu rp os efu l co nn ect io n wit h th e

fo ru m

.

The co nt ract in th is cas e al so pr ov id ed fo r LF Bea ut y to rece iv e pa y m en t fro m

cu st om ers on be ha lf of Cr e a t iv e Cal li ng an d to fo rward th es e pa y m en ts (le ss a
de du ct io n fo r LF Bea ut y ) to Crea ti ve Cal li ng

. Thi s type of co nt ract ua l pr ov is io n,

req ui rin g a de fen da nt to rem it pa y m en t to a co m pa ny lo cat ed in th e fo ru m St at e, an d

th e de fen da nt ’s pe rfo rm an ce of th at te rm , is a pu rp os efu l co nt act wit h th e fo ru m

. K-V

Pha rm. Co

. , 64 8 F.3 d at 59 3- 94

. Acco rd in g to Ung er of Crea ti ve Cal li ng , LF Bea ut y

in fact m ad e si gn ifi can t p ay m en ts to Crea ti ve Cal li ng in Iowa

.

In su m , we co nc lu de th at Crea ti ve Cal li ng ha s id en ti fie d s u f f i c i e nt fact s to

su pp or t a reas on ab le in fere nc e th at LF Bea ut y es ta bl is he d c o n t a c ts wit h Io wa th at

pe rm it th e ex erci se of pe rs on al juri sd ic ti on

. LF Bea ut y fir st co nt a c te d Crea ti ve
Cal li ng in Io wa to so li ci t it s bu si ne ss , en ga ge d in da il y co m m un ic at io ns wit h Crea ti ve
Cal li ng fo r al m o s t t w o y ears aft er co nt ract ua l ne go ti at io ns ha d co nc lu de d, sh ip pe d

th ou sa nd s of pr e-p ro du ct io n an d pr od uc ti on sa m pl es to Io wa pu rs ua nt to th e co nt ract

,

an d rem it te d pa ym en ts to Crea ti ve Cal li ng in Io wa un de r th e ag reem en t. Bec au se

Crea ti ve Cal li ng ’s br each of co nt ract cl ai m al le ge s th at LF Bea ut y de li ve red de fe ctiv e

-7

-sa m

pl es an d th us ari se s ou t of an d rel at es to th is co nn ect io n wit h Io wa, LF Bea ut y ’s

m in im um co nt act s pe rm it th e ex erci se of sp eci fic juri sd ic ti on in th is cas e. Se e Bur ge r

Ki ng Co rp

. , 47 1 U.S. at 47 2.

Eve n where a pa rty ha s m in im um co nt act s with a fo ru m , juri sd ic ti on can st il l

be un reas on ab le

. The Due Pro ces s Cl au se fo rb id s t h e e x erci se of pe rs on al
juri sd ic ti on “ un de r ci rcu m st an ces th at wou ld of fen d ‘trad it io na l no ti on s of fai r pl ay

an d su bs ta nt ia l ju s t i c e

. ’” Asa hi Met al In du s. Co

. v. Su pe ri or Co ur t

, 48 0 U.S. 10 2,

11 3 (1 98 7) (ci ti ng In t’l Sh oe Co

. v. W as hi ng to n , 32 6 U.S. 31 0, 31 6 (1 94 5 ) ) ; s e e

Ferr e l l v

. W. Be n d Mut

. In s. Co

. , 39 3 F.3 d 78 6, 79 0 (8 th Ci r. 20 05 ). To as se ss
whe th er th e ex erci se of juri sd ic ti on ov er LF Bea ut y , a f o r e i g n de fen da nt

, is

reas on ab le

, we co ns id er th e in te res ts of th e fo ru m St at e, th e bu rd en on th e de fen da nt

,

an d th e pl ai nt iff ’s in te res t in ob ta in in g rel ie f. Se e Asa hi Met al In du s. Co.

, 48 0 U.S.

at 11 3- 15

. “ Great care an d res erv e sh ou ld be ex erci se d whe n ex te nd in g ou r no ti on s

of pe r s o n a l ju r is di ct io n in to th e in te rn at io na l fie ld ,” id

. at 11 5 (in te rn al qu ot at io n

m ark s om it te d)

, al th ou gh “ [w]hen m in im um co nt act s ha ve be en es ta bl is he d, of te n th e

in te res ts of th e pl ai nt iff an d th e fo ru m in th e ex erci se of juri sd ic ti on wil l jus ti fy ev en

th e se rio us bu rd en s p la ced on th e al ie n d efen da nt .” Id . at 1 14

.

Mi ni mu m co nt act s ha ve be en es ta bl is he d he re, an d Io wa “ ha s an ob vi ou s

in te res t in pr ov id in g a lo cal fo ru m in whi ch it s res id en ts m ay li ti ga te cl ai m s.” Dig iT e l H o l d in gs , I nc

. , 8 9 F.3 d at 52 5. The pa rti es ’ res pe ct iv e in te res ts do no t m il it at e

st ro ng ly ag ai ns t pe rs on al juri sd ic ti on in Io wa. W hi le de fen di ng a su it in Io wa wou ld

be bu rd e n s o me fo r LF Bea ut y , ob ta in in g rel ie f th ro ug h li ti ga ti on in Hon g Kon g

wou ld be bu rd en so m e fo r Crea ti ve Cal li ng

. The al le ge dl y de fect iv e sa m pl es th at are

th e fo cu s of th is br each of co nt ract su it are lo cat ed in Io wa; at le as t so m e of th e

sa m pl es li ke ly wou ld be in tro du ced at tri al

. LF Bea ut y co nt en ds th at fiv e ne ces sa ry
wit ne ss es —t hr ee cu rren t an d two fo rm er LF Bea ut y em pl oyees— are lo cat ed in Hon g

Kon g. Crea ti ve Cal li ng r e s p o n ds th at th ree LF Bea ut y em pl oyees who wil l be

im po rta nt wit ne ss es are lo cat ed in New Yor k an d Tex as , an d th at ot he r wit ne ss es are

-8

-lo cat ed in Io wa. Bec au se th e sa m pl es are in Io wa, th ere are wit ne ss es in bo th Hon g

Kon g an d Io wa, an d th ree wit ne ss es who are LF Bea ut y em pl oyees are in th e Uni te d

St at es , th e res pe ct iv e in te res ts of th e two pa rti es do no t weig h ag ai ns t th e ex erci se of
juri sd ic ti on ov er LF Bea ut y in Io wa. Cf

. K-V Pha rm. Co

. , 64 8 F.3 d at 59 5; Dig i-T el

Hol di ng s, In c. , 89 F.3 d at 52 5. In th es e ci rcu m st a n c e s, th e ex erci se of pe rs on al
juri sd ic ti on wou ld no t offe nd tra di ti on al no ti on s of fair pl ay an d su bs ta nt ia l jus ti ce.

LF Bea ut y res po nd s by ci ti ng th e co nt ract ’s se le ct io n of Hon g Kon g co ur ts as

a n o n- ex cl us iv e fo ru m an d it s ch oi ce of Hon g Kon g la w. LF Bea ut y co nt e n d s t h a t

th es e pr ov is io ns di m in is h Io wa’s in te res t in pr ov id in g a fo ru m fo r it s res id e n t s an d

sh ow th at li ti ga ti on in Hon g Kon g is no t in co nv en ie nt fo r Crea ti ve Cal li ng

. Crea ti ve
Cal li ng ’s as se nt to no n- ex cl us iv e juri sd ic ti on in Hon g Kon g, if en fo rcea bl e , c o u l d

es t a b l i sh th at Hon g Ko ng co ur ts m ay ex erci se pe rs on al juri sd ic ti on ov er Cr ea ti ve

Ca ll in g un de r Uni te d St at es la w. Bur ge r Ki ng Co rp

. , 47 1 U.S. at 47 2 n.1 4. Bu t th e

fo ru m se le ct io n cl au se , w h i c h c o nt em pl at es th e po ss ib il it y of a fo ru m ot he r th an

H on g Kon g, do es no t im pa ct si gn ifi can tl y whe th er a fed eral co ur t in Io wa m a y

as su m e pe rs on al juri sd ic ti on ov er LF Bea ut y

. Si m il arl y , th e se le ct io n of Hon g Kon g

la w wou ld be a rel ev an t, bu t no t di sp os it iv e, fact or in de te rm in in g whe th er Cr ea ti ve

Ca ll in g es ta bl is he d m in im um co nt act s wi th Hon g K on g , se e Bell Pap er Box

, In c. v.

Tr an s W es te rn Pol ymer s, In c. , 53 F.3 d 92 0, 92 3 (8 th Ci r. 19 95 ), bu t th e ch oi ce-o f-l aw
cl au se do es no t m ak e th e ex erci se of juri sd ic ti on in Io wa un reas on ab le

. As we sa id

in Min ne so ta Min in g & Man uf ac tu ri ng Co

. v. Ni

pp on Ca rb id e In du st ri es Co

. , 63 F.3 d

69 4 (8 th Ci r. 19 95 ), “ we m us t d et erm in e whe th er [th e fo ru m St at e] h as juri sd ic ti on
be fo re we co ns id er wha t la w wil l be ap pl ie d,” an d a fo ru m w i t h ju r i sd ic ti on of te n

m us t “ ap pl y

th e la w of a no th er St at e o r co un try.” Id . at 6 98

.

* * *

-9

-Fo r th es e reas on s, we rev ers e th e di st ric t co ur t’s ju dg m en t di sm is si ng th e

act io n fo r la ck of pe rs on al juri sd ic ti on o v e r LF Bea ut y , an d rem an d th e cas e fo r

fu rth er p ro ceed in gs

.

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