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JEWISH DEFENSE ORGANIZATION, INC. et al., Petitioners,
v.
THE SUPERIOR COURT OF LOS ANGELES COUNTY, Respondent.
STEVEN RAMBAM, Real Party in Interest.
No. B129319
In the Court of Appeal of the State of California
Second Appellate District
Division Seven
(Super. Ct. No. BC179060)
ORIGINAL PROCEEDING; petition for a writ of mandate.
Charles W. McCoy, Jr., Judge.
Petition granted.
COUNSEL
R. Samuel Paz and Sonia M. Mercado for Petitioners.
No appearance for Respondent.
Sherman & Kurtz and Gary Kurtz for Real Party in
Interest.
Filed June 8, 1999
By this petition for writ of mandate, defendants in
a defamation action seek to vacate the trial court' s order of
January 25, 1999, denying their motion to quash service of summons
for lack of jurisdiction over them, or in the alternative, to
stay or dismiss the action on the ground of forum non conveniens.
The principal issue for review is whether California can properly
assert jurisdiction over nonresident defendants based on their
contract with several Internet service providers with offices
in California to operate world wide web-sites from New York;
defendants' web site allegedly contained defamatory statements
about plaintiff.
FACTUAL AND PROCEDURAL BACKGROUND
In October 1997, plaintiff Steven Rambam filed an unverified
complaint against Jewish Defense Organization, Inc. (JDO) and
Mordechai Levy (Levy) for defamation and related causes of action,
alleging that in 1997 and continuing to the present time, JDO
and Levy posted a world wide web page containing defamatory statements
about Rambam, including the statements that Rambam is a government
informant and a "snitch" ; Rambam is a dangerous psychopath
who tried to kill his mother; Rambam kidnapped people but was
never charged by the police; Rambam secretly admires the Nazis
and hates Jews; and Rambam is an anti-Semite who has been known
to entrap Jews with no prior criminal record into committing
crimes.
Levy and JDO filed a motion to quash service of summons
or in the alternative a motion to stay or dismiss the action
as brought in an inconvenient forum. The declarations and exhibits
offered in support of, or in opposition to, the motions reveal
the following:
Levy has been a resident of New York City since about
1985 and earns his living as an accountant. He conducts no commercial
activities in California and owns no property in California;
the last time Levy came to California was in 1989, for the purpose
of making a public speech on an issue of public concern; between
1984 and 1989, Levy would come to California from time to time
to make public speeches.
Levy lived in California from 1982 to 1984, when he
was an undergraduate college student at California State University
at Los Angeles; at some time in the early 1980' s, Levy was associated
with the Los Angeles chapter of a militant Jewish activist organization,
the Jewish Defense League (JDL), headed by Irving Rubin. According
to plaintiff, Levy was kicked out of the JDL "for refusing
to accept organizational discipline" ; according to Levy,
he left the JDL voluntarily in 1981, and formed his own group
in Los Angeles, known as the JDO. In the early 1980' s Barry
Krugel participated in the JDO in Los Angeles; according to Krugel,
the JDO "had meetings, conducted self-defense education
classes, prepared political literature, participated in and conducted
demonstrations, [and] wrote articles." After Levy left Los
Angeles in 1984, there was no longer any presence by JDO in Los
Angeles. When Levy and the JDO left California, JDO no longer
maintained any California telephone number or post office box.
There is currently no California chapter of the JDO; since the
JDO left California in 1984, Krugel has not been in any way associated
with JDO.
According to Levy, the JDO, an organization dedicated
to fighting anti-Semitism, has been operating in New York City
since 1985; the JDO conducts no commercial activities or services
anywhere, and its only operation is to disseminate information
concerning the status of Jewish affairs. Levy incorporated JDO
in New York in 1989. The JDO maintains a world wide web site
for the dissemination of information to anyone in the world where
the Internet is available; the web site is "passive,"
in that the JDO does not seek to attract readers or others to
the site and does not capture or receive any information from
those who may "hit" its web site; the web site "merely
provides information for those people who seek access to it"
; as far as Levy can ascertain, the only reaction from California
with respect to the web site has been the instant lawsuit. To
set up JDO' s Internet web site, JDO established its domain names
with Networks Solutions, Inc., which apparently has offices in
Virginia; all of JDO' s negotiations and activities with Network
Solutions were conducted by JDO in New York. JDO' s administrative
and billing contact for the web sites is listed on the Network
Solutions contracts as Alan J. Weberman, a New York resident;
Levy declared that Weberman is not an officer, employee, or agent
of JDO and is not authorized to speak on behalf of JDO.
From 1988 to the present, Rambam was the president of
a licensed private investigative agency, Pallorium, Inc., located
in Brooklyn, New York; in 1989, Rambam was employed by Jan Tucker,
a California licensed investigator, to locate and serve process
on Levy in New York on behalf of Irving Rubin of the Jewish Defense
League, who was suing Levy for libel in a California court; in
August 1989, while Rambam and Rubin were on a public street in
front of Levy' s New York residence, Levy opened fire on them,
missed them, but wounded an innocent bystander; Levy was allegedly
convicted of assault with a deadly weapon and sentenced to prison.
Rubin' s libel action against Levy was dismissed.
In the aftermath of Rubin' s libel action, and in 1991,
a lawyer, Mark Schapiro, sued Levy and Bertram Zweibon, seeking
about $9,500 in contract damages; in 1993, Schapiro obtained
a judgment of about $11,000 against Levy and Zweibon; Zweibon
was allegedly the attorney who represented Levy in his criminal
trial involving his shooting at Rambam and Rubin. Levy declared
that although a judgment was entered against him in the Schapiro
suit, he was never served with the Schapiro suit, did not appear,
and did not know of its existence until plaintiff mentioned it
in the instant lawsuit.
Sometime prior to the time Rambam filed the instant
lawsuit against Levy and JDO, Rambam had filed in California
a similar defamation lawsuit against the JDL and Rubin arising
out of an allegedly defamatory web page; during the discovery
stage of the JDL action, Krugel contacted Levy in New York about
the lawsuit; in 1997, after Rambam filed the instant lawsuit
against Levy, Levy sent him (Krugel) some documents purporting
to be about Rambam, which documents Krugel then passed on to
Rubin to use in defense of Rambam' s lawsuit. Krugel also testified
in deposition that sometime in about 1997 a woman telephoned
him about a speaking engagement by Levy in Orange County, but
Krugel had no personal information about whether Levy came to
Orange County; Levy denied coming to California at any time after
1989.
After Rambam filed the instant lawsuit against Levy
and the JDO, defamatory information about Rambam similar to that
on the JDO web sites allegedly appeared on several "mirror"
web pages served by providers Xoom, Inc., Geocities, Inc., and
Whowhere? Inc., located in California. According to Rambam, Levy
and JDO are associated with the "mirror" web sites
served by the California providers because the JDO web site admits
that "we have established these mirror sites so that Rambam
will have to sue many Internet providers." The documents
from the "mirror" web sites, however, reveal that the
"mirror" web sites in California were maintained by
Alan Weberman, whom Levy asserts is not an employee, officer
or agent of JDO and is not authorized to speak on behalf of JDO.
Rambam engaged in a public records investigation about
Levy, and asserts that Mordechai Levy owns real property in Los
Angeles County, maintains post office box No. 25764 in Los Angeles,
operates a service station known as Motty' s Arco in Anaheim,
owes the Franchise Tax Board about $13,000 in taxes, and participated
in other California lawsuits as a plaintiff and defendant. Levy
provided a declaration stating that his own investigation revealed
that there is a person known as Mordechai Motty Levy, a native
of Maryland, who moved to North Hollywood in 1992, and then moved
to Los Angeles in 1995, and maintains post office box No. 25764,
along with an Andrina Levy, probably his wife. Levy declared
that he is not Mordechai Motty Levy, that a social security number
associated with Motty Levy is not his social security number,
and that Rambam was deliberately confusing Motty Levy with him;
he has never heard of this other Levy who is in no way connected
with him. Levy also denied that he is married and denied that
he or the JDO invoked the benefits or protection of California
law.
In opposition to the motions, Rambam supplied, inter
alia, a declaration by California private investigator Jan Tucker
which stated that "Beginning in the early 1980' s I have
had contacts, associations, and business relationships with the
[JDL] and the [JDO], and the leaders of both organizations. My
relationship to the [JDO] of Mordechai Levy has always been adversarial
in nature . . . ." Without any supporting details, Tucker
states that "Since its inception, and through today, the
JDO has always had a presence in the Los Angeles area,"
and that "Barry Krugel is and for many years has been the
leader of the JDO' s Chapter in Los Angeles." Tucker then
alleges various activities of the Los Angeles Chapter of the
JDO, without providing any dates for the alleged activities,
and in some instances failing to name the people allegedly taking
the actions on behalf of JDO. Some of the incidents allegedly
involved only Krugel and/or others; other incidents, such as
Levy' s alleged expulsion from the JDL and his distributing leaflets
with the JDO symbol at a Temple in the Sepulveda Pass, clearly
related back to the early 1980' s when Levy lived in Los Angeles.
Tucker also declared that "Levy has at all times maintained
post office boxes at various locations in Los Angeles County.
I am informed and believe and thereon allege that he currently
maintains U.S. Postal Service Post Office Box 25764 . . . ."
On December 12, 1997, the court granted Rambam' s application
to continue Levy and JDO' s motions to quash service of summons
or in the alternative to stay or dismiss the action, in order
for plaintiff to conduct discovery on the jurisdictional issues.
The minute order also recited that "The court determines
that the forum non conveniens issue should be determined after
resolution of the personal jurisdictional issue."
After hearing on the motions on November 4, 1998, the
court took the matters under submission. By minute order of January
25, 1999, the court issued the following ruling: "Motion
to Quash Service of Summons, or in the alternative, to Stay or
Dismiss this Action by [Levy and JDO] initially heard on November
4, 1998, is denied." We infer from the minute order that
the trial court denied both the motion to quash service of summons
for lack of personal jurisdiction over the defendants and the
alternative motion to stay or dismiss the action on the ground
of forum non conveniens. Levy and JDO filed timely petition for
writ of mandate challenging the denial of both motions.
I
STANDARD OF REVIEW
"California' s long-arm statute authorizes California
courts to exercise jurisdiction on any basis not inconsistent
with the Constitution of the United States or the Constitution
of California. (Code Civ. Proc., § 410.10.) A state court'
s assertion of personal jurisdiction over a nonresident defendant
who has not been served with process within the state comports
with the requirements of the due process clause of the federal
Constitution if the defendant has such minimum contacts with
the state that the assertion of jurisdiction does not violate
' " traditional notions of fair play and substantial justice."
' (International Shoe Co. v. Washington (1945) 326 U.S.
310, 316, 90 L.Ed. 95, 66 S.Ct. 154 . . . .)" (Vons Companies,
Inc. v. Seabest Foods, Inc. (1996) 14 Cal.4th 434, 444-445.)
"Personal jurisdiction may be either general or specific.
A nonresident defendant may be subject to the general jurisdiction
of the forum if his or her contacts in the forum state are '
substantial . . . continuous and systematic.' [Citations.] In
such a case, ' it is not necessary that the specific cause of
action alleged be connected with the defendant' s business relationship
to the forum.' [Citations.]" (Id. at p. 445.)
"If the nonresident defendant does not have substantial
and systematic contacts in the forum sufficient to establish
general jurisdiction, he or she still may be subject to the specific
jurisdiction of the forum, if the defendant has purposefully
availed himself or herself of forum benefits [citation], and
the ' controversy is related to or "arises out of"
a defendant' s contacts with the forum.' [Citations.]" (Vons
Companies, Inc. v. Seabest Foods, Inc., supra, 14 Cal.4th
at p. 446.) "Finally, in analyzing the exercise of specific
jurisdiction, ' [o]nce it has been decided that a defendant purposefully
established minimum contacts within the forum State, these contacts
may be considered in light of other factors to determine whether
the assertion of personal jurisdiction would comport "fair
play and substantial justice." ' [Citation.] Courts may
evaluate the burden on the defendant of appearing in the forum,
the forum state' s interest in adjudicating the claim, the plaintiff'
s interest in convenient and effective relief within the forum,
judicial economy, and ' the "shared interest of the several
States in furthering fundamental substantive social policies."
' " (Id. at pp. 447-448.) Thus, specific jurisdiction
is determined under a three-part test: "(1) The nonresident
defendant must do some act or consummate some transaction with
the forum or perform some act by which he purposefully avails
himself of the privilege of conducting activities in the forum,
thereby invoking the benefits and protections of its laws; (2)
the claim must be one which arises out of or results from the
defendant' s forum-related activities; and (3) exercise of jurisdiction
must be reasonable." (Panavision International, L.P.
v. Toeppen (9th Cir. 1998) 141 F.3d 1316, 1320 [applying
California law].)
"When a nonresident defendant challenges personal
jurisdiction the burden shifts to the plaintiff to demonstrate
by a preponderance of the evidence that all necessary jurisdictional
criteria are met. [Citation.] This burden must be met by competent
evidence in affidavits and authenticated documentary evidence.
An unverified complaint may not be considered as an affidavit
supplying necessary facts." (Ziller Electronics Lab GmbH
v. Superior Court (1988) 206 Cal.App.3d 1222, 1232-1233.)
Declarations are insufficient to support the assertions for which
they are offered if they consist primarily of vague assertions
of ultimate facts rather than specific evidentiary facts permitting
a court to form an independent conclusion on the issue. (Id.
at p. 1233.) Once facts showing minimum contacts with the forum
state are established, however, it becomes the defendant' s burden
to demonstrate that the exercise of jurisdiction would be unreasonable.
(Vons Companies, Inc. v. Seabest Foods, Inc., supra, 14
Cal.4th 434, 449.) Where there is no conflict in the evidence,
the question of personal jurisdiction is one of law; in such
a case, the lower court' s determination is not binding on the
reviewing court. (Hall v. LaRonde (1997) 56 Cal.App.4th
1342, 1346.)
II
INSUFFICIENT EVIDENCE TO SUPPORT GENERAL JURISDICTION
Rambam' s contention that the evidence is sufficient
to establish general jurisdiction over Levy and the JDO is based
on the assertion that the trial court was required to accept
as true Rambam' s evidence offered to support the claims that
Levy and JDO have continuous and systematic contacts with California
in that the JDO, allegedly Levy' s alter ego, has always maintained
a Los Angeles post office box, that the JDO maintains a chapter
in Los Angeles, that Levy has used California courts twice as
a plaintiff since the late 1980' s, and that Levy entered into
contracts with three California-based Internet service providers
to publish at least seven defamatory web pages. Rambam argues
in his return to the petition for writ of mandate that "The
trial court was required to presume the truth of the evidence
presented by Rambam, and to resolve the conflicting evidence
in Rambam' s favor. This court is required to resolve evidence
disputes in favor of the trial court' s ruling. . . . As there
were no rulings on defendants' evidence objections, they should
be presumed to have been denied."
We agree with petitioners that the declarations offered
by Rambam in opposition to the motions, particularly that of
Tucker, fail to support the assertions set out therein pertaining
to the JDO' s alleged presence and activities in California after
1984 as a matter of law. On the latter issues, Tucker' s and
Rambam' s declarations lack foundation, contain conclusory and
vague statements, and are inadequate to support the legal and
factual conclusions for which they are offered.
Even though our record contains no express rulings by
the trial court on defendants' evidentiary objections, we infer
from the record of the hearing on the motions that the trial
court rejected Rambam' s assertions of JDO' s and Levy' s presence
in California, and the claim of general jurisdiction; rather,
the trial court clearly deemed the dispositive issue to be whether
specific jurisdiction was established here based on the location
of the Internet server in California. At one point, the trial
court remarked that "But the facts here are that the [Internet]
provider was here," and "We are sort of riding in an
area of new law. There is no question about that." Thus,
we infer from the instant record that the trial court disregarded
the conclusions in Tucker' s declaration and agreed with Levy'
s explanation that Levy and the JDO no longer had any presence
in California and that the JDO, after 1984, did not maintain
any chapter in California; rather, the public records revealing
a post office box, lawsuits, tax liens, and property owned by
a "Mordechai Levy" referred to a person other than
petitioner. Thus, the trial court properly rejected the theory
of general jurisdiction and Rambam' s assertion that Levy and
the JDO maintained substantial, continuous and systematic contacts
with California sufficient to establish a "presence"
in California.
Even if the instant ruling could be construed to be
based on a finding of general jurisdiction, we would conclude
that such a finding is not supported by the evidence. No reasonable
person could conclude on this record that the Mordechai Levy
who heads the JDO and has lived for over a decade in New York
is that Mordechai Levy who runs an Arco service station in Anaheim,
maintains a Los Angeles post office box, and was recently a plaintiff
in California lawsuits. On the instant record, no reasonable
person could interpret any of the declarations as supporting
the claim that after Levy and the JDO left California in the
1980' s, Barry Krugel was an agent of the JDO and/or Levy and
acting on their behalf. Nor was there sufficient evidence to
establish that Alan Weberman, in allegedly establishing several
"mirror" web sites using California Internet service
providers, was acting as an agent or employee of JDO and/or Levy.
"' The unilateral activity of those who claim some relationship
with a nonresident defendant cannot satisfy the requirement of
contact with the forum State. The application of that rule will
vary with the quality and nature of the defendant' s activity,
but it is essential in each case that there be some act by which
the defendant purposefully avails itself of the privilege of
conducting activities within the forum State, thus invoking the
benefits and protections of its laws.' " (Regents of
University of New Mexico v. Superior Court (1975) 52
Cal.App.3d 964, 971.)
Accordingly, the instant record permits the conclusion
that defendants' only contacts with California after 1989 consisted
of (1) the use of the mail to mail some documents to Krugel in
California in connection with another libel lawsuit by Rambam
against Rubin, and (2) contracting with one or more Internet
service providers who happen to be located in California, so
as to permit them to operate a passive web site from their residence
in New York.[FOOTNOTE 1] Even Rambam does not contend that the
foregoing conduct alone is sufficient to provide a basis for
the assertion of general jurisdiction over defendants in California,
and provides no authorities or argument to support such proposition.
We thus conclude that there was an insufficient basis for the
assertion of general jurisdiction over defendants. We proceed
to address the issue of whether defendants' conduct is sufficient
to establish specific jurisdiction.
III
INSUFFICIENT EVIDENCE TO SUPPORT SPECIFIC JURISDICTION
We first address the issue of specific jurisdiction
in the context of the case law which has developed in defamation
cases, and then in the context of the case law which is developing
in the area of the use of the Internet.
In tort cases, the "purposeful availment"
requirement for specific jurisdiction can be satisfied by the
"effects test," set out in Calder v. Jones (1984)
465 U.S. 783 [104 S.Ct. 1482, 79 L.Ed.2d 804]. (Panavision
International, L.P. v. Toeppen, supra, 141 F.3d 1316, 1321.)
"Under Calder, personal jurisdiction can be based
upon: ' (1) intentional actions (2) expressly aimed at the forum
state (3) causing harm, the brunt of which is suffered -- and
which the defendant knows is likely to be suffered -- in the
forum state.' " (Ibid.)
In ascertaining the existence of specific jurisdiction,
"we consider only those ' forum-related activities as they
relate to the specific cause of action.' " [FOOTNOTE 2]
(Gordy v. Daily News (9th Cir. 1996) 95 F.3d 829, 835.)
Thus, "the question is whether the quality and nature of
petitioners' forum-related activity in relation to [the] complaint
is sufficient to permit California to exercise jurisdiction over
them. [Citations.] To prevail, [plaintiff] must establish the
causes of action arose out of an act committed or transaction
consummated in California, or that petitioners performed some
other act by which they purposefully availed themselves of the
. . . benefits and protections of the state' s laws." (Mansour
v. Superior Court (1995) 38 Cal.App.4th 1750, 1758-1759.)
"While [defendants] may have foreseen the allegedly defamatory
statements might be published in California, that alone is not
enough to subject them to personal jurisdiction in this state."
(Id. at p. 1759.)
"' In a libel case, however, we do not think the
likelihood that an offending publication will enter a forum is
a fair measure of the reasonableness of the exercise of jurisdiction
over a publisher. The nature of the press is such that copies
of most major newspapers will be located throughout the world,
and we do not think it consistent with fairness to subject publishers
to personal jurisdiction solely because an insignificant number
of copies of their newspapers were circulated in the forum state.
In a defamation case, therefore, the appropriate jurisdictional
analysis should be to determine whether or not it was foreseeable
that a risk of injury by defamation would arise in the forum
state.' " (Evangelize China Fellowship, Inc. v. Evangelize
China Fellowship (1983) 146 Cal.App.3d 440, 447.)
"It is reasonable to expect the bulk of the harm
from defamation of an individual to be felt at his domicile."
(Gordy v. Daily News, supra, 95 F.3d at p. 833.) In Core-Vent
Corp. v. Nobel Industries AB (9th Cir. 1993) 11 F.3d 1482,
the Ninth Circuit held "that publication of a commercial
libel in a worldwide medical journal did not permit suit against
Swedish writers in California. Our primary ground for so ruling
was that it would have been unreasonable for writers to be required
to be sued in California, . . . but we also expressed doubt that
the defamation was truly targeted at California when the purported
target was a corporation that did a worldwide business. ' A corporation
does not suffer harm in a particular geographic location in the
same sense that an individual does.' " (Gordy v. Daily
News, supra, 95 F.3d at p. 833.)
On the instant record, we conclude that Rambam failed
to provide sufficient evidence to establish that it was foreseeable
that a risk of injury by defamation would arise in California.
Rambam went to great lengths to state that New York is not his
"full time" residence. Yet, Rambam did not identify
any other place of residence; he stated that he traveled most
of the time, including Europe, Israel, and the far east; as to
California, he stated only that he spends "considerable
professional time" in California. However, Rambam failed
to establish he had any clients in California, or that the alleged
defamatory statements herein would impact a business interest
or reputation in California. In Panavision International,
L.P. v. Toeppen, supra, 141 F.3d at p. 1316, the court held
that when a nonresident defendant engaged in a scheme to register
Panavision' s trademarks as his domain names and posted a web
site on the Internet for the purpose of extorting money from
Panavision, the "purposeful availment" requirement
for specific jurisdiction over defendant was satisfied under
the "effects test" ; although Panavision was a Delaware
limited partnership, its principal place of business was in California,
and defendant' s conduct, as he knew it likely would, had the
effect of injuring Panavision in California; thus, the brunt
of the harm suffered by Panavision was in the state where it
maintained its principal place of business. (Id. at p.
1322.)
There is an insufficient basis in this record to conclude
that California is Rambam' s principal place of business, or
that the alleged defamation was targeted at California or would
cause the brunt of the harm in California.[FOOTNOTE 3] Accordingly,
there is insufficient evidence showing defendants' minimum contacts
with California under the analysis set out in cases dealing with
defamation by nonresidents. As is explained below, we reach the
same result under the analysis in cases dealing with the use
of the Internet.
"The Internet is a worldwide network of computers
that enables various individuals and organizations to share information.
The Internet allows computer users to access millions of web
sites and web pages. A web page is a computer data file that
can include names, words, messages, pictures, sounds, and links
to other information. [¶ ] Every web page has its own web
site, which is its address, similar to a telephone number or
street address." (Panavision International, L.P. v. Toeppen,
supra, 141 F.3d at p. 1318.)
"The Internet makes it possible to conduct business
throughout the world entirely from a desktop. With this global
revolution looming on the horizon, the development of the law
concerning the permissible scope of personal jurisdiction based
on Internet use is in its infant stages. The cases are scant.
Nevertheless, our review of the available cases and materials
reveals that the likelihood that personal jurisdiction can be
constitutionally exercised is directly proportionate to the nature
and quality of commercial activity that an entity conducts over
the Internet. This sliding scale is consistent with well developed
personal jurisdiction principles. At one end of the spectrum
are situations where a defendant clearly does business over the
Internet. If the defendant enters into contracts with residents
of a foreign jurisdiction that involve the knowing and repeated
transmission of computer files over the Internet, personal jurisdiction
is proper. [Citation.] At the opposite end are situations where
a defendant has simply posted information on an Internet Web
site which is accessible to users in foreign jurisdictions. A
passive Web site that does little more than make information
available to those who are interested in it is not grounds for
the exercise of personal jurisdiction. [Citation.] The middle
ground is occupied by interactive Web sites where a user can
exchange information with the host computer. In these cases,
the exercise of jurisdiction is determined by examining the level
of interactivity and commercial nature of the exchange of information
that occurs on the Web site." (Zippo Mfg. Co. v. Zippo
Dot Com, Inc. (W.D.Pa. 1997) 952 F.Supp. 1119, 1123-1124.)
In the instant case, defendants' conduct in registering
Rambam' s name as a domain name and posting passive web sites
on the Internet is not sufficient to subject them to jurisdiction
in California.[FOOTNOTE 4] (Panavision International,
L.P. v. Toeppen, supra, 141 F.3d at p. 1322.) "Creating
a site, like placing a product into the stream of commerce, may
be felt nationwide -- or even worldwide -- but, without more,
it is not an act purposefully directed toward the forum state.
[(Bensusan Restaurant Corp. v. King (S.D.N.Y. 1996)] 937
F.Supp. 295, 301 citing the plurality opinion in Asahi Metal
Indus. Co. v. Superior Court (1992) 480 U.S. 102, 112, [107
S.Ct. 1026, 1032, 94 L.Ed.2d 92].)]" (Cybersell, Inc.
v. Cybersell, Inc. (9th Cir. 1997) 130 F.3d 414, 418.)
In Pres-Kap, Inc. v. System One, Direct Access, Inc. (Fla.App.
1994) 636 So.2d 1351, "a majority of a three-judge intermediate
state appeals court refused to exercise jurisdiction over a consumer
of an on-line airline ticketing service. Pres-Kap involved
a suit on a contract dispute in a Florida court by a Delaware
corporation against its New York customer. [Citation.] The defendant
had leased computer equipment which it used to access an airline
ticketing computer located in Florida. [Citation.] The contract
was solicited, negotiated, executed and serviced in New York.
[Citation.] The defendant' s only contact with Florida consisted
of logging onto the computer located in Florida and mailing payments
for the leased equipment to Florida. . . . [Pres-Kap]
addressed the exercise of jurisdiction over a consumer of on-line
services as opposed to a seller. When a consumer logs onto a
server in a foreign jurisdiction he is engaging in a fundamentally
different type of contact than an entity that is using the Internet
to sell or market products or services to residents of foreign
jurisdictions. The Pres-Kap court specifically expressed
concern over the implications of subjecting users of ' on-line'
services with contracts with out-of-state networks to suit in
foreign jurisdictions." (Zippo Mfg. Co. v. Zippo Dot
Com, Inc., supra, 952 F.Supp. at p. 1125.)
The court in Pres-Kap identified its concerns
as follows: "Across the nation, in every state, customers
of ' on-line' computer information networks have contractual
relationships with out-of-state supplier companies, putting such
customers in a situation similar, if not identical, to the defendant
in the instant case. Lawyers, journalists, teachers, physicians,
courts, universities, and business people throughout the country
daily conduct various types of computer-assisted research over
telephone lines linked to supplier databases located in other
states. Based on the trial court' s decision below, users of
such ' on-line- services could be haled into court in the state
in which supplier' s billing office and database happen to be
located, even if such users, as here, are solicited, engaged,
and serviced entirely instate by the supplier' s local representatives.
Such a result, in our view, is wildly beyond the reasonable expectations
of such computer-information users, and, accordingly, the result
offends traditional notions of fair play and substantial justice.
[Citations.]" (Pres-Kap, Inc. v. System One, Direct
Access, Inc., supra, 636 So.2d at p. 1353, fn. omitted.)
In the instant case, defendants were mere customers
of Internet service providers who happen to maintain offices
or databases in California; such providers were engaged by JDO
from its computer in New York. As in Pres-Kap, we conclude
that defendants' conduct of contracting, via computer, with Internet
service providers, which may be California corporations or which
may maintain offices or databases in California, is insufficient
to constitute "purposeful availment" and does not satisfy
the first prong of the three-part test for specific jurisdiction.
In light of our conclusion, we need not address the other prongs
of the test for specific jurisdiction, or the motion to stay
or dismiss on grounds of inconvenient forum.
DISPOSITION
Let a peremptory writ of mandate issue directing respondent
court to vacate its order of January 25, 1999, and to enter a
new and different order granting petitioners' motion to quash
service of summons. Petitioners are entitled to costs on review.
LILLIE, P.J.
We concur: JOHNSON, J., and WOODS, J.
::::::::::::::::::::::::::::: FOOTNOTE(S):::::::::::::::::::::::::::::
FN1. In their points and authorities supporting the
petition for writ of mandate, Levy and JDO admit that they employed
Internet servers such as Network Solutions, located in Virginia,
Geocities, a Delaware Corporation located in California, and
Xoom, Inc., located in California and New York. Petitioners maintain,
however, that it is those servers who are present in California
as independent contractors; petitioners are not present in California,
and their contracting with the Internet servers was for the purpose
of providing greater access to people all over the world via
the Internet, and not to target California and New York. Petitioners
argue: "California and New York are the hubs for world wide
Internet dissemination. Contractors there were chosen not to
target New York and California but because those states are leaders
in the technology involved. Engaging an Internet server is as
simple as a few keystrokes while sitting at one' s computer .
. . . If the [court] found personal jurisdiction, based on the
happenstance of the physical location of the Internet server,
every complaint arising out of the alleged tort on the Internet
would automatically result in personal jurisdiction wherever
the Internet server is located. That would not comport with traditional
notions of what qualifies as purposeful activity invoking the
benefits and protections of the forum state." (Emphasis
omitted.)
FN2. Accordingly, for purposes of specific jurisdiction,
we ignore the fact that Levy may have used the mail to mail some
documents to Krugel in California for use in another lawsuit
by Rambam; there is no evidence establishing that such documents
were defamatory or that the documents relate to the instant lawsuit
in any way.
FN3. The court in IMO Industries, Inc. v. Kiekert
AG (3rd Cir. 1998) 155 F.3d 254 agreed "with the conclusion
reached by the First, Fourth, Fifth, Eighth, Ninth, and Tenth
Circuits that jurisdiction under Calder requires
more than a finding that the harm caused by the defendant' s
intentional tort is primarily felt within the forum. . . . [
Rather] the Calder ' effects test' can only be satisfied
if the plaintiff can point to contacts which demonstrate that
the defendant expressly aimed its tortious conduct at the forum,
and thereby made the forum the focal point of the tortious activity.
Simply asserting that the defendant knew that the plaintiff'
s principal place of business was located in the forum would
be insufficient in itself to meet this requirement. The defendant
must ' manifest behavior intentionally targeted at and focused
on' the forum for Calder to be satisfied." (155 F.3d
at p. 265, fn. omitted.)
In the instant case, we need not resolve any conflict
among the federal circuits; Rambam has not even established that
his residence or principal place of business is in California,
so the purposeful availment prong of the special jurisdiction
issue is not satisfied on that ground.
FN4. Rambam' s return questions Levy' s characterization
of the web sites as "passive," claiming that Levy'
s declaration is self-serving and that "we do not even know
what that means." Rambam also asserts, without citation
of any authority, that expert evidence is needed to establish
the web sites as passive or interactive. Such challenges are
without merit, as Levy' s declarations explain in detail the
nature of the web sites, which meet the definition of passive
web sites set out in the Zippo Mfg. Co. case.
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