Summary
This memorandum opinion and order from the U.S. District Court for the Eastern District of Texas denies the defendants' motion to dismiss for lack of personal jurisdiction. The court held that the foreign drone manufacturers satisfied the stream-of-commerce test by placing their products into the distribution chain with the reasonable expectation they would be purchased and used in Texas. Consequently, the court found specific jurisdiction existed over the defendants for the plaintiffs' product liability and negligence claims, and determined that exercising jurisdiction would not be unfair or unreasonable.
Topics
Practice areas
Questions Presented
- Whether the Eastern District of Texas has specific personal jurisdiction over SZ DJI Technology Co., Ltd. and Shenzhen Baiwang Technology Co., Ltd. under the stream‑of‑commerce test.
Holdings
- The court holds that personal jurisdiction exists because the DJI defendants purposefully availed themselves of the Texas market by placing their drones into the stream of commerce with the expectation that they would be sold and used in Texas, and the plaintiffs' claims arise out of those contacts.
Key quotations
“The DJI Defendants’ website, which advertises their drone products for purchase at nearly 600 retail locations in Texas, demonstrates that the DJI Defendants were aware, or at least had a reasonable expectation, that their products would be sold or used in Texas.”
“Because the DJI Defendants have sufficient minimum contacts with Texas, and the exercise of personal jurisdiction is not unfair or unreasonable, this Court has specific personal jurisdiction over the DJI Defendants.”
Factual background
The plaintiffs purchased a DJI Mavic Air 2 drone that was sold through Best Buy and shipped to their home in Lewisville, Texas. After a warranty repair, a second drone malfunctioned and struck the plaintiff's son, causing severe eye and facial injuries. The drones were designed and manufactured in China by SZ DJI and DJI Baiwang, with distribution through third‑party entities and sales via a website that listed hundreds of Texas retail locations.
Procedural history
The plaintiffs filed suit in the Eastern District of Texas alleging product liability and negligence. The defendants moved to dismiss for lack of personal jurisdiction. The court considered the motion and issued a memorandum opinion denying it.