PREP Tours Inc. v. American Youth Soccer Org.

PREP Tours Inc. v. American Youth Soccer Org., 913 F.3d 11 (1st Cir. 2019) · United States Court of Appeals for the First Circuit · January 8, 2019 · No. No. 17-1223

Summary

The First Circuit affirmed dismissal for lack of specific personal jurisdiction, holding that remote email and telephone communications from California to a Puerto Rico tour company did not constitute purposeful availment of Puerto Rico's forum. The court applied the three-factor test from *Copia Communications*—solicitation, anticipation of in-forum services, and actual performance of extensive in-forum services—and found the defendants' preliminary, limited inquiries insufficient to establish a substantial connection to the forum. The opinion clarifies that a plaintiff's unilateral activities in the forum, even if foreseeable, cannot satisfy the purposeful availment requirement when the defendant's own contacts are minimal and preliminary. The case also addresses the relatedness and reasonableness prongs of specific jurisdiction, though the court did not reach them after finding no purposeful availment.

Court
United States Court of Appeals for the First Circuit
Writing for the Court
Barron; Torruella; Lipez
Jurisdiction
Federal
Decision date
January 8, 2019
Docket number
No. 17-1223
Procedural posture
Appeal from the United States District Court for the District of Puerto Rico dismissal of complaint for lack of personal jurisdiction
Standard of review
de novo
Precedential value
Published
Parties
PREP Tours, Inc. v. American Youth Soccer Organization; Downey AYSO Region 24; Armando Rodríguez; Ramón Aguilar; Carl Jackson; Alicia Ramírez; John Doe; Richard Doe; Bob Doe; Insurance Company A; Insurance Company B
Disposition
affirmed

Topics

personal jurisdictioncivil procedureappellate procedurestandard of reviewdue process

Questions Presented

  1. Whether the District Court erred in dismissing the complaint for lack of personal jurisdiction
  2. Whether the defendants' remote communications with the plaintiff in Puerto Rico give rise to specific personal jurisdiction

Holdings

  1. The court held that the plaintiff failed to establish purposeful availment because the defendants' contacts were preliminary and limited, and the plaintiff's in-forum activities were not sufficiently foreseeable to satisfy the due process requirement.

Key quotations

Those limits, arising from the Due Process Clause of the Fourteenth Amendment to the United States Constitution, permit a court to exercise jurisdiction over an out-of-forum defendant only if, with respect to the claims at issue, the defendant has 'certain minimum contacts with [the forum] such that the maintenance of the suit does not offend "traditional notions of fair play and substantial justice."' (at 16-17)
First, the claim underlying the litigation must directly arise out of, or relate to, the defendant's forum-state activities. Second, the defendant's in-state contacts must represent a purposeful availment of the privilege of conducting activities in the forum state, thereby invoking the benefits and protections of that state's laws and making the defendant's involuntary presence before the state's courts foreseeable. Third, the exercise of jurisdiction must ... be reasonable. (at 17)
the two cornerstones of purposeful availment are voluntariness and foreseeability. (at 20)
the defendant's in-forum solicitation of the plaintiff's services, the defendant's anticipation of the plaintiff's in-forum services, and the plaintiff's actual performance of extensive in-forum services. (at 5-6)

Factual background

PREP Tours, a Puerto Rico tour company, was contacted by Alicia Ramírez, a volunteer for Downey AYSO Region 24 in California, via email in November 2012 to inquire about a potential soccer trip to Puerto Rico for approximately 60 players and their families. Over the next four months, the parties exchanged emails and telephone calls, with PREP Tours preparing itineraries and making arrangements including hotel holds and contacting a travel agency for flights. The defendants consistently indicated that no final decision had been made and that they were considering other options. In January 2013, the defendants requested a list of trip participants and indicated they were close to a decision, but ultimately in February 2013, they informed PREP Tours that they had chosen a different company. PREP Tours sued in Puerto Rico, alleging breach of contract and culpa in contrahendo.

Procedural history

The District Court granted defendants' motion to dismiss under Rule 12(b)(2) for lack of personal jurisdiction. Plaintiff appealed.

Court Document

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