Opinion ID: 205620
Heading Depth: 3
Heading Rank: 2

Heading: General jurisdiction for operation of commercial web site

Text: The question of general jurisdiction here is potentially more complicated when the Wave59 web site's commercial activities are considered. These do not affect the analysis of specific jurisdiction, since only the contacts out of which Mr. Shrader's tort claims arise are relevant in that respect. As the Fifth Circuit explained in analogous circumstances: For specific jurisdiction we look only to the contact out of which the cause of action arisesin this case the maintenance of the internet bulletin board. Since this defamation action does not arise out of the solicitation of [business]..., those [commercial] portions of the website need not be considered. Revell, 317 F.3d at 472 (footnote omitted). But the case for general jurisdiction, which is based on all of a defendant's contacts with the forum state, can sweep much broader to include the sales side of the site. It should be emphasized that, as we are dealing with general jurisdiction, the commercial contacts here must be of a sort that approximate physical presence in the stateand engaging in commerce with residents of the forum state is not in and of itself the kind of activity that approximates physical presence within the state's borders. Bancroft & Masters, Inc. v. Augusta Nat'l, Inc., 223 F.3d 1082, 1086 (9th Cir.2000); see Revell, 317 F.3d at 471 & n. 19; Bird v. Parsons, 289 F.3d 865, 874 (6th Cir.2002). Nevertheless, most courts would agree that operating a web site selling products to residents of a state can subject the seller to general jurisdiction in that state, depending on the nature and degree of commercial activity with the forum state. See, e.g., Lakin v. Prudential Sec. Inc., 348 F.3d 704, 712-13 (8th Cir.2003) (noting determination of general jurisdiction over commercial web site would require development of facts regarding quantity of transactions with forum residents); Gorman v. Ameritrade Holding Corp., 293 F.3d 506, 513 (D.C.Cir. 2002) (same). The case law sets the bar quite high, however, denying general jurisdiction absent substantial sales. Compare Campbell Pet Co. v. Miale, 542 F.3d 879, 884 (Fed. Cir.2008) (holding twelve internet sales for $14,000 over eight years insufficient for general jurisdiction); Revell, 317 F.3d at 471 (holding sales of thirty-five subscriptions in two years insufficient for general jurisdiction); Bird, 289 F.3d at 873-74 (holding 4,666 internet domain-name registrations, specifically analogized to sales, insufficient for general jurisdiction); ESAB Group, Inc. v. Centricut, Inc., 126 F.3d 617, 623-24 (4th Cir.1997) (holding twenty-six mail order customers in forum state insufficient for general jurisdiction) with Gator.Com Corp. v. L.L. Bean, Inc., 341 F.3d 1072, 1080 (9th Cir.2003) (finding general jurisdiction based in part on millions of dollars in sales, driven by an extensive, ongoing, and sophisticated sales effort involving large numbers of direct email solicitations and millions of catalog sales), vacated as moot on reh'g en banc on basis of settlement, 398 F.3d 1125 (9th Cir.2005). In sum, the best general formulation for this niche of the law may have been provided by the district court in Oklahoma: A web site will subject a defendant to general personal jurisdiction only when the defendant has actually and deliberately used its website to conduct commercial transactions on a sustained basis with a substantial number of residents of the forum. Smith v. Basin Park Hotel, Inc., 178 F.Supp.2d 1225, 1235 (N.D.Okla.2001) (emphasis added). Turning back to our case, Mr. Shrader has not emphasized this aspect of the jurisdictional issue, but he has not completely ignored it. He submitted, and the district court admitted, several exhibits relating to commercial activity on the Wave59 site, which show that (1) he purchased books, courses, and a data feed from Wave59; (2) another person from Tulsa purchased a book from Wave59; and (3) Wave59 advertized in a magazine called TradersWorld, which was available for purchase at a Tulsa bookstore. [6] This showing is clearly insufficient to warrant the exercise of general personal jurisdiction over the Beann defendants.