Michael Sullivan v. LG Chem Ltd.
Citation79 F.4th 651
Date Filed2023-08-17
Docket22-1203
Cited51 times
StatusPublished
Full Opinion (html_with_citations)
RECOMMENDED FOR PUBLICATION
Pursuant to Sixth Circuit I.O.P. 32.1(b)
File Name: 23a0185p.06
UNITED STATES COURT OF APPEALS
FOR THE SIXTH CIRCUIT
â
MICHAEL SULLIVAN,
â
Plaintiff-Appellant, â
> No. 22-1203
â
v. â
â
LG CHEM, LTD., â
Defendant-Appellee. â
â
Appeal from the United States District Court for the Eastern District of Michigan at Detroit.
No. 2:21-cv-11137âLaurie J. Michelson, District Judge.
Argued: May 3, 2023
Decided and Filed: August 17, 2023
Before: MOORE, CLAY, and GIBBONS, Circuit Judges.
_________________
COUNSEL
ARGUED: Mark Granzotto, MARK GRANZOTTO, PC, Berkley, Michigan, for Appellant.
Rachel Atkin Hedley, NELSON, MULLINS, RILEY & SCARBOROUGH LLP, Columbia,
South Carolina, for Appellee. ON BRIEF: Mark Granzotto, MARK GRANZOTTO, PC,
Berkley, Michigan, Wolfgang Mueller, MUELLER LAW FIRM, Novi, Michigan, for Appellant.
Rachel Atkin Hedley, NELSON, MULLINS, RILEY & SCARBOROUGH LLP, Columbia,
South Carolina, Cynthia M. Filipovich, CLARK HILL PLC, Detroit, Michigan, for Appellee.
_________________
OPINION
_________________
KAREN NELSON MOORE, Circuit Judge. Defendant LG Chem, Ltd. (âLG Chemâ)
manufactured the LG HG2 18650 lithium-ion batteries that exploded in Plaintiff Michael
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 2
Sullivanâs pocket and caused him severe second- and third-degree burns. Sullivan seeks to hold
LG Chem liable for his injuries. Sullivan obtained these batteries from a vape store in Michigan
to use for his e-cigarette device. But LG Chem, a South Korean company, vigorously opposes
personal jurisdiction. It argues that exercising personal jurisdiction over it in Michigan would be
improper under both Michiganâs long-arm statute and the Due Process Clause because, not only
has LG Chem never sold the 18650 batteries to this Michigan vape store, but also it has never
sold its 18650 batteries for individual consumer use in Michigan. We conclude that LG Chem
urges too narrow a view of personal jurisdiction. The district court sitting in Michigan may
properly exercise personal jurisdiction over LG Chem because it directly shipped its 18650
batteries into the State of Michigan and entered into two supplier contracts with Michigan
companies for 18650 batteries. Accordingly, we REVERSE the judgment of the district court
and REMAND for further proceedings.
I. BACKGROUND
A. FACTUAL BACKGROUND
We begin with the parties. Defendant LG Chem, Ltd. (âLG Chemâ) is a South Korean
company, headquartered in Seoul, South Korea. R. 3 (Mem. in Supp. Mot. to Dismiss at
1) (Page ID #240). It manufactures the LG HG2 18650 lithium-ion battery as âindustrial
component products.â Id. at 2 (Page ID #241). LG Chem asserts that it has ânever designed,
manufactured, distributed, advertised, or sold any HG2 (or any 18650 lithium ion cells) for use
by individual consumers as standalone, replaceable batteries with e-cigarette or vaping devices.â
Id.; see also R. 21 (LG Chemâs Suppl. Br. at 3) (Page ID #718) (âLG Chem did not serve a
consumer market in Michigan for standalone, replaceable lithium-ion batteries.â). LG Chem
states that its product is ânot [a] standalone, replaceable consumer batter[y], and [it was] not
designed to be handled by consumers.â R. 3 (Mem. in Supp. Mot. to Dismiss at 2) (Page ID
#241).
LG Chem has a subsidiary in MichiganâLG Energy Solution Michigan, Inc. f/k/a LG
Chem Michigan, Inc. (âLG Energyâ or âLGESMIâ or âLGCMIâ). Id. According to LG Chem,
LG Energy does not have any role âin the design, manufacture, marketing, distribution, or sale of
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 3
any model of LG 18650 lithium ion cells to anyone.â Id. at 2â3 (Page ID #241â42). LG Energy
is not a party to this appeal.
Sandra Sullivan, Plaintiffâs spouse, visited Montrose Smokers Palace in Montrose,
Michigan1 to purchase a vaping product for Plaintiff on March 28, 2018. R. 1-1 (Compl. ¶ 15)
(Page ID #22); R. 1-1 (Def.âs Initial Disclosures at 1) (Page ID #84). She purchased âa regulated
mod manufactured by SMOK, a NITECORE battery charger, [and, relevant here,] four brown
LG HG2 18650, 3000 mAh, 3.7V batteries,â which are allegedly manufactured by LG Chem. Id.
¶ 16 (Page ID #22); R. 10 (Pl.âs Oppân at 1â2) (Page ID #337â38).
A few months later, in October 2018, Plaintiff had two of LG Chemâs â18650 batteries in
his left front pocket,â which made a loud sound and exploded in his pocket. R. 1-1 (Compl.
¶ 18) (Page ID #22); see also id ¶ 19 (Page ID #22). Plaintiffâs pants caught fire resulting in,
among other things, â[s]evere second and third-degree burns to his left hand and left upper
thigh,â id. ¶ 27 (Page ID #23â24). He required hospitalization, skin-graft surgery, and
debridement treatments. R. 10 (Pl.âs Oppân at 2) (Page ID #338). Plaintiff alleges that he
suffered severe scarring, pain and suffering, emotional distress, wage loss, and other economic
and non-economic injuries. R. 1-1 (Compl. ¶ 27) (Page ID #23â24). Sullivanâs Complaint, filed
in the Circuit Court of Genesee County, Michigan, includes one count of negligence, id. ¶¶ 28â
31 (Page ID #24â26), and one count of gross negligence, id. ¶¶ 32â38 (Page ID #26â27).
B. PROCEEDINGS BEFORE THE DISTRICT COURT AND LIMITED DISCOVERY
Upon removing the lawsuit to federal court, on May 18, 2021, LG Chem moved to
dismiss the lawsuit for lack of personal jurisdiction. R. 3 (Mem. in Supp. Mot. to Dismiss) (Page
ID #235â64). Defendant argued that the district court sitting in Michigan lacked both general
and specific jurisdiction over it. Id. ¶¶ 2â3 (Page ID #236). The district court held a hearing on
Defendantâs motion to dismiss. R. 20 (Hrâg Tr.) (Page ID #645â712). The hearing largely
focused on whether Defendant had sufficient contacts with Michigan to satisfy due process. See
generally id.
1
Defendant contends that it has never sold 18650 batteries to Montrose Smokers Palace. R. 3 (Mem. in
Supp. Mot. to Dismiss at 2) (Page ID #241).
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 4
During the hearing, Defendantâs counsel acknowledged that, unlike in most other states,
LG Chem likely had at least some small amount of âsales of [] 18650âs into the State of
Michigan.â R. 20 (Hrâg Tr. at 16) (Page ID #660); see also id. at 15 (Page ID #659) (âMy
general understanding and recollection is that there were some [sales] to Michigan.â), 32 (Page
ID #676) (stating counsel believed âthat there wereâ a few customers in Michigan to whom LG
Chem shipped 18650 batteries). LG Chem argued that, to the extent these contacts existed, they
were nevertheless irrelevant and of no consequence in establishing personal jurisdiction because
LG Chem never distributed 18650 batteries for the purpose of individual consumer use and those
possible customers were ânot serving a market for consumers to go buy one of these 18650 cells
and put it in their pocket and walk around and use it to power their devices.â Id. at 20 (Page ID
#664). At the end of the hearing, the district court ordered âsome limited written jurisdictional
discovery on the issue of LG Chemâs contacts with Michigan related to the 18650 batteries,â id.
at 64 (Page ID #708), and supplemental briefing, id. at 66 (Page ID #710).
Limited discovery revealed that LG Chem sent at least two shipments of 18650 batteries
directly into the State of Michigan. First, LG Chem shipped one hundred 18650 batteries to a
vacuum-cleaner manufacturer in Michigan. R. 24-2 (Ex. 1, Def.âs Response to Pl.âs Req. for
Produc. at 2) (Page ID #873); R. 24-5 (Ex. 4, Invoice to Vacuum-cleaner Manufacturer) (Page
ID #897); R. 21-4 (Ex. B, Def.âs Response to Pl.âs Req. for Interrogs. at 5â6) (Page ID #807â
08); R. 21 (LG Chemâs Suppl. Br. at 3â4) (Page ID #718â19) (characterizing the shipment as âa
sample shipment of 100 lithium-ion cellsâ for which it received no revenue). Second, LG Chem
shipped battery packs that contained 50,277 pounds of 18650 batteries to its subsidiary into
Michigan.2 R. 10-6 (Ex. 5, LG Chemâs Import Data at 2) (Page ID #473); R. 17-2 (Ex. A, K.
Choi Suppl. Decl. ¶¶ 4â6) (Page ID #544â45). The district court therefore determined that there
were at least âtwo undisputed shipments of 18650s to Michigan.â Sullivan v. LG Chem, Ltd.,
2
Plaintiff originally pointed the district court to three shipments to LG Chemâs subsidiary, R. 10-6 (Ex. 5,
LG Chemâs Import Data at 2â4) (Page ID #473â75), but the district court excluded two subsidiary shipments from
its analysis because âLG Chem submitted an affidavit showing that only one such shipmentâwhich contained over
50,000 pounds of batteriesâwas for 18650s, while the other two contained âlithium-ion pouch-type [battery] cells.ââ
Sullivan v. LG Chem, Ltd., 585 F. Supp. 3d 992, 1003 (E.D. Mich. 2022) (alteration in original); see also R. 17-2 (Ex. A, K. Choi Suppl. Decl. ¶¶ 5â6) (Page ID #544â45). The district court considered only the shipment of 18650 batteries â[b]ecause Sullivan never disputed this affidavit and because it is consistent with his statement about shipments of âlithium-ion batteries.ââ Sullivan, 585 F. Supp. 3d at 1003. Plaintiff does not challenge that determination on appeal. No. 22-1203 Sullivan v. LG Chem, Ltd. Page 5585 F. Supp. 3d 992
, 1003 (E.D. Mich. 2022). On appeal, LG Chem acknowledges this. See
Appellee Br. at 7 (acknowledging shipment of 18650 batteries to vacuum-cleaner manufacturer
in Michigan); id. at 8 (acknowledging shipment of 18650 batteries to its subsidiary in Michigan).
Neither party puts forth evidence or addresses whether any of the 18650 batteries that LG Chem
shipped into Michigan was ultimately one of the batteries that injured Plaintiff.
Limited discovery further revealed that LG Chem executed âtwo supplier agreements . . .
with Michigan companies relating to 18650 batteries.â Sullivan, 585 F. Supp. 3d at 1003; see
also R. 21 (LG Chemâs Suppl. Br. at 5) (Page ID #720) (describing agreements as âagreements
with manufacturers in Michigan for the purchase of 18650 lithium-ion cells or battery packs
containing 18650 lithium-ion cells for 2016-2020â). First, LG Chem executed an agreement
with that same vacuum-manufacturing company, with headquarters in Michigan, to purchase LG
Chemâs 18650 batteries. See R. 24-6 (Ex. 5, Vacuum-manufacturing Co. Contract) (Page ID
#917â20); R. 24-2 (Ex. 1, Def.âs Response to Pl.âs Req. for Produc. at 5) (Page ID #876); R. 21
(LG Chemâs Suppl. Br. at 5) (Page ID #720). Under this contract, LG Chem shipped 18650
batteries directly into Michigan. See R. 21-4 (Ex. B, Def.âs Response to Pl.âs Req. for Interrogs.
at 5â6) (Page ID #807â08); R. 24-2 (Ex. 1, Def.âs Response to Pl.âs Req. for Produc. at 2) (Page
ID #873); R. 24-5 (Ex. 4, Invoice to Vacuum-cleaner Manufacturer) (Page ID #897). Second,
LG Chem contracted with a Michigan-based automaker-product manufacturer. R. 24-7 (Ex. 6,
Automaker-product Manufacturer Contract) (Page ID #922â46); R. 24-2 (Ex. 1, Def.âs Response
to Pl.âs Req. for Produc. at 5â6) (Page ID #876â77); R. 21 (LG Chemâs Suppl. Br. at 5) (Page ID
#720). This contract was originally entered into in 2016 and then supplemented in 2019 for the
purchase of battery packs. R. 24-7 (Ex. 6, Automaker-product Manufacturer Contract) (Page ID
#922â46). LG Chem never shipped 18650 batteries into Michigan under this contract (and
instead shipped the batteries to a different state) but the contract âshall be considered as a
contract made and to be performed in the State of Michiganâ and contains a Michigan forum-
selection clause (wherein both parties waived any personal-jurisdiction defenses). R. 24-7 (Ex.
6, Automaker-product Manufacturer Contract at 20) (Page ID #945); see also R. 24-5 (Ex. 4,
Invoices) (Page ID #898â915) (listing an out-of-state address as the final destination of
shipment); R. 21 (LG Chemâs Suppl. Br. at 5) (Page ID #720) (explaining LG Chem never
shipped any 18650 batteries to the automaker-product manufacturer in Michigan).
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 6
The district court granted LG Chemâs motion to dismiss. Sullivan, 585 F. Supp. 3d at
1008â09. It determined âthat the exercise of personal jurisdiction over LG Chem comports with
due process,â id. at 1007, but found that Plaintiff had not sufficiently addressed whether the
exercise of jurisdiction satisfied Michiganâs long-arm statute, Mich. Comp. Laws § 600.715, id.
at 1008. Plaintiff timely appealed the final judgment dismissing the case.
C. SIMILAR LAWSUITS AGAINST LG CHEM
Michael Sullivan is not the only individual seeking to hold LG Chem liable for injuries
caused by its 18650 batteries. Over a dozen people have filed lawsuits against LG Chem across
the country. Many cases have been dismissed for lack of personal jurisdiction. See, e.g., State
ex rel. LG Chem, Ltd. v. McLaughlin, 599 S.W.3d 899, 901â02 (Mo. 2020) (finding no personal jurisdiction where LG Chem never shipped its 18650 batteries into the forum state). But where LG Chem has more contacts with the forum states, the cases have survived. See Berven v. LG Chem, Ltd., No. 1:18-CV-01542-DAD-EPG,2019 WL 4687080
, at *1â2 (E.D. Cal. Sept. 26, 2019) (finding personal jurisdiction because of LG Chemâs direct shipments of the 18650 batteries into California); Tieszen v. EBay, Inc., No. 4:21-CV-04002-KES,2021 WL 4134352
,
*5â7 (D.S.D. Sept. 10, 2021) (finding personal jurisdiction because LG Chem sells and
distributes lithium ion batteries, including the 18650 batteries, in the forum state). We find these
cases informative because they demonstrate that other courts have exercised personal jurisdiction
over LG Chem when LG Chem conducts business related to its 18650 batteries in or ships its
18650 batteries into the forum state.
II. STANDARD OF REVIEW
âWe review de novo aâ district courtâs âdismissal for lack of personal jurisdiction.â
Indah v. SEC, 661 F.3d 914, 920(6th Cir. 2011). Dismissal for lack of personal jurisdiction âunder Rule 12(b)(2) involves burden shifting: after the plaintiff makes a prima facie case for personal jurisdiction, which can be done âmerely through the complaint,â the burden shifts to the defendant.â Peters Broad. Engâg, Inc. v. 24 Cap., LLC,40 F.4th 432, 437
(6th Cir. 2022) (quoting Malone v. Stanley Black & Decker, Inc.,965 F.3d 499, 504
(6th Cir. 2020)). When the burden shifts to the defendant, its âmotion to dismiss must be supported by evidence.âId.
The No. 22-1203 Sullivan v. LG Chem, Ltd. Page 7 burden then returns âto the plaintiff, âwho may no longer stand on his pleadings but must, by affidavit or otherwise, set forth specific facts showing that the court has jurisdiction.ââId.
at 437â38 (quoting Malone,965 F.3d at 504
). âWe âmust view the pleadings and affidavits in a light most favorable to the plaintiff and not weigh the controverting assertions of the party seeking dismissal.ââId.
at 438 (quoting Ingram Barge Co., LLC v. Zen-Noh Grain Corp.,3 F.4th 275, 278
(6th Cir. 2021)).
III. PERSONAL JURISDICTION
âWhen sitting in diversity, a federal court may exercise personal jurisdiction over an out-
of-state defendant only if a court of the forum state could do so.â Blessing v. Chandrasekhar,
988 F.3d 889, 901 (6th Cir. 2021). Personal jurisdiction can be general or specific. Malone,965 F.3d at 501
. âGeneral jurisdiction exists when the defendantâs affiliations with the forum state are âso continuous and systematic as to render the defendant essentially at homeâ there.âId.
(quoting Goodyear Dunlop Tires Operations, S.A. v. Brown,564 U.S. 915, 919
(2011)). Plaintiff
does not appeal the district courtâs determination that it lacked general jurisdiction over LG
Chem.
Specific jurisdiction âdepends on an affiliation between the forum and the underlying
controversy, principally, activity or an occurrence that takes place in the forum State and is
therefore subject to the Stateâs regulation.â Id.at 502 (quoting Goodyear,564 U.S. at 919
). âFor specific jurisdiction to exist in a diversity case, two factors must be satisfied: the forum state long-arm statute, and constitutional due process.â Miller v. AXA Winterthur Ins. Co.,694 F.3d 675, 679
(6th Cir. 2012). This appeal concerns both the Michigan long-arm statute and
constitutional due process.
A. MICHIGANâS LONG-ARM STATUTE
Michigan has numerous long-arm statutes. See Mich. Comp. Laws §§ 600.701â600.735.
Relevant here is § 600.715, which establishes when Michigan has specific jurisdiction3 over a
corporation. It enumerates a list of relationships (and the circumstances creating them) between
3
Specific jurisdiction is sometimes referred to as âlimited personal jurisdiction.â See, e.g., Mich. Comp.
Laws § 600.715. No. 22-1203 Sullivan v. LG Chem, Ltd. Page 8 a defendant and Michigan that permit the exercise of personal jurisdiction over the defendant.Id.
§ 600.715. It reads:
The existence of any of the following relationships between a corporation or its
agent and the state shall constitute a sufficient basis of jurisdiction to enable the
courts of record of this state to exercise limited personal jurisdiction over such
corporation and to enable such courts to render personal judgments against such
corporation arising out of the act or acts which create any of the following
relationships: (1) The transaction of any business within the state. (2) The doing
or causing any act to be done, or consequences to occur, in the state resulting in
an action for tort. . . .
Id.
The district court observed a difference in the language and structure between the
constitutional standard for personal jurisdiction and § 600.715. See Sullivan, 585 F. Supp. 3d at
1007â08. The Due Process Clause requires that a âdefendant . . . purposefully avail himself of
the privilege of acting in the forum state or causing a consequence in the forum state,â Air Prods.
& Controls, Inc. v. Safetech Intâl, Inc., 503 F.3d 544, 550(6th Cir. 2007) (quoting S. Mach. Co. v. Mohasco Indus., Inc.,401 F.2d 374, 381
(6th Cir. 1968))), â[t]he plaintiffâs claims . . . âarise out of or relate to the defendantâs contactsâ with the forum,â Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct.,141 S. Ct. 1017, 1025
(2021) (quoting Bristol-Myers Squibb Co. v. Super. Ct. of Cal., S.F. Cnty.,137 S. Ct. 1773, 1780
(2017)) and âthe exercise of jurisdiction over the defendant [be] reasonable,â Air Prods.,503 F.3d at 550
(quoting S. Mach. Co.,401 F.2d at 381
). Michiganâs § 600.715, by contrast, permits the exercise of personal jurisdiction over a defendant for claims against âcorporation[s] arising out of the act or acts which createâ one of the relationships between the corporation and Michigan enumerated in the statute.Mich. Comp. Laws § 600.715
. Given that the due-process standard also includes the phrase ârelate[s] toâ and
§ 600.715 enumerates several broad relationships that can give rise to personal jurisdiction, the
district court posited that courts likely need to conduct separate analyses to determine whether
they could exercise personal jurisdiction over the defendant. See Sullivan, 585 F. Supp. 3d at
1007â08. Because the district court determined that Plaintiff had not independently and
sufficiently addressed § 600.715, it dismissed Plaintiffâs action, despite finding that due process
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 9
allowed it to exercise jurisdiction over LG Chem. Id. at 1008. We address each of these points
in turn.
1. Preservation of the Long-arm Statute Arguments
As a preliminary matter, LG Chem now argues that âPlaintiff waived his argument that
§ 600.715 is satisfied by failing to raise that argument before the district court.â Appellee Br. at
13; see also id. at 12, 14â17. But the proceedings below reveal a more complicated and nuanced
story. To determine whether Plaintiff failed to preserve his long-arm-statute argument, we look
to the proceedings below.
LG Chemâs motion to dismiss argued that a district court sitting in Michigan lacked both
general and specific jurisdiction over LG Chem. R. 3 (Mem. in Supp. Mot. to Dismiss ¶¶ 2â3)
(Page ID #236). Specific jurisdiction, LG Chem contended, did not exist because its contacts
with Michigan satisfied neither Michiganâs long-arm statute for specific jurisdiction for a
corporation, Mich. Comp. Laws § 600.715, nor the Due Process Clause. Id. ¶ 3 (Page ID #236). Specifically, with regards to the long-arm statute, LG Chem argued that âPlaintiff makes no allegations of any contacts between LG Chem and Michigan related to his suit,â R. 3 (Mem. in Supp. Mot. to Dismiss at 11) (Page ID #250), that could enable Plaintiffâs action to âarise out ofâ an act by LG Chem that created one of the relationships enumerated in the statute, see alsoMich. Comp. Laws § 600.715
.
In response, Plaintiff, perhaps mistakenly, argued that LG Chemâs contacts with
Michigan satisfied Michiganâs general jurisdiction long-arm statute (Mich. Comp. Laws
§ 600.711), rather than the specific jurisdiction statute (id. § 600.715). See R. 10 (Pl.âs Oppân at
8) (Page ID #344). Plaintiff then proceeded to argue that exercising jurisdiction over Defendant
satisfied due process. Id. In LG Chemâs reply brief, LG Chem devoted two sentences to
§ 600.715, noting that Plaintiff failed to address the long-arm statute (§ 600.715), and then LG
Chem immediately moved on to its due-process argument. R. 17 (Def.âs Reply Br. at 3) (Page
ID #530).
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 10
At the hearing, the district court recited to the parties Sixth Circuit precedent interpreting
the scope of Michiganâs long-arm statute and asked the parties whether Michiganâs long-arm
statute and the Due Process Clause required separate analysis. The district court stated:
[W]eâve got the Sixth Circuit case law that indicates, â[w]hen a stateâs long-arm
statute reaches as far as the limits of the due process clause, the two inquiries
merge and the court need only determine whether the assertion of personal
jurisdiction violates constitutional due process.â Is there any dispute here that
Michiganâs long-arm statute reaches as far as the limits of the due process clause
such that we can focus on the due process arguments?
R. 20 (Hrâg Tr. at 5) (Page ID #649). Counsel for Plaintiff responded no. Id. LG Chemâs
counsel stated:
[W]e donât concede that the long-arm statute is satisfied; however, I did not
intend to spend time on that today because I think the due process issue is so
easily resolved and there are authorities that say The Court doesnât have to go
through the long-arm statute analysis, if due process is not met then The Court,
essentially, does not have to spend time on the long-arm and that was the way I
would approach the hearing today.
Id. at 6 (Page ID #650).
The district court asked if there was âdifferent analysis,â id., and whether, âif I found that
that [Michiganâs general personal jurisdiction long-arm statute] is not satisfied under Daimler,
for example, then Iâd still have to go to 600.715 which is limited personal jurisdiction which
seems like it gets me to a similar, if not the same inquiry as under the due process analysis.â Id.
at 7 (Page ID #651) (emphasis added). LG Chemâs counsel responded: âThatâs right. And so
while I donât concede that the long-arm statute is satisfied, I was planning to focus my argument
only on the due process issue.â Id. (emphasis added). The district court concluded the exchange
by stating, âOkay. Very good. And it sounds like [Plaintiffâs counsel] is as well.â Id. Counsel
for the parties then addressed personal jurisdiction under the Due Process Clause only.
In LG Chemâs Supplemental Brief, it argued that general jurisdiction was not at issue, R.
21 (LG Chemâs Suppl. Br. at 6) (Page ID #721), and argued that Michigan lacked specific
jurisdiction over LG Chem because âPlaintiffâs claims do not âarise out of or relate toâ these
activities, and specific jurisdiction is lacking based on both Michiganâs long-arm statute and due
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 11
process.â Id. at 9 (Page ID #724). This first clause quotes the due-process standard, see, e.g.,
Ford, 141 S. Ct. at 1025(âThe plaintiffâs claims . . . âmust arise out of or relate to the defendantâs contactsâ with the forum.â (quoting Bristol-Myers,137 S. Ct. at 1780
)). It is true
that in some places in its brief, LG Chem tailored its language specifically to each source of
personal jurisdiction,4 but LG Chem did not explicitly argue that even if its contacts satisfied due
process they nonetheless failed under Michiganâs long-arm statute. See generally R. 21 (LG
Chemâs Suppl. Br.) (Page ID #713â25). LG Chemâs Supplemental Brief relied on the same
analysis for its § 600.715 and due-process arguments. See id. at 8â9 (Page ID #724â25).
Plaintiffâs Supplemental Brief addressed only due process. See R. 24 (Pl.âs Suppl. Br. at 4â9)
(Page ID #863â68). Specifically, Plaintiff argued that consistent with Supreme Court precedent,
the lawsuit ârelates toâ LG Chemâs contacts with Michigan. See, e.g., id. at 6â7 (Page ID #865â
66).
To summarize, Plaintiff was sloppy in his briefing and neglected to address § 600.715.
To Plaintiffâs credit, Sixth Circuit caselaw states that âMichiganâs long-arm statute âextends to
the limits imposed by federal constitutional due process requirements and thus, the two questions
become one.ââ See, e.g., AlixPartners, LLP v. Brewington, 836 F.3d 543, 549(6th Cir. 2016) (quoting Mich. Coal. of Radioactive Material Users, Inc. v. Griepentrog,954 F.2d 1174
, 1176
(6th Cir. 1992)). Plaintiffâs counsel told the district court that it understood that Michiganâs
long-arm statute extended to the limits of the Due Process Clause, R. 20 (Hrâg Tr. at 5) (Page ID
#649), and then in Plaintiffâs supplemental briefing addressed only the Due Process Clause, R.
24 (Pl.âs Suppl. Br. at 4â9) (Page ID #863â68). Defendant argued that Plaintiff needed to satisfy
§ 600.715 but never argued explicitly before the district court that the two inquiries differed.
See, e.g., R. 17 (LG Chemâs Reply Br. at 3) (Page ID #530); R. 21 (LG Chemâs Suppl. Br at 8â9)
(Page ID #723â24).
4
For instance, LG Chem stated that â[e]ven if jurisdictional discovery had revealed that LG Chem
extensively supplied 18650 lithium-ion cells to consumer product manufacturers in Michigan to be incorporated
with protective circuitry in battery packs (which it did not), that would not support the exercise of specific
jurisdiction because such activities would not give rise to Plaintiffâs claims, as required to satisfy Michigan
§ 600.715, and would not relate to Plaintiffâs claims, as required to satisfy due process.â See, e.g., R. 21 (LG
Chemâs Suppl. Br.) (Page ID #723â24) (second and third emphasis added).
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 12
This situation is unique and distinct from the typical instances of forfeiture. Though
Plaintiff did not independently articulate that he satisfied the long-arm statute before the district
court, at the hearing he argued that the two standards were the same based on Sixth Circuit
caselawâbelieving that he was in fact addressing the very issue that LG Chem argues he failed
to preserve. Although this court generally declines to consider arguments that were not timely
raised before the district court, â[w]e have, on occasion, deviated from the general rule in
âexceptional cases or particular circumstances or when the rule would produce a plain
miscarriage of justice.ââ Foster v. Barilow, 6 F.3d 405, 407(6th Cir. 1993) (quoting Pinney Dock and Transp. Co. v. Penn Cent. Corp.,838 F.2d 1445
, 1461 (6th Cir. 1988)). Because of
Plaintiffâs reliance on Sixth Circuit caselaw and the clarity by which the parties addressed the
issue on appeal, we will consider the merits.
2. Whether the Michiganâs Long-arm Statute and the Due-Process Analyses
Merge Into One
Like the district court, we believe that Michiganâs interpretation of its long-arm statute
requires a separate analysis from the Due Process Clause. The district courtâs thorough order
highlights the nuances of this inquiry. See Sullivan, 585 F. Supp. 3d at 1007â08. Plaintiff points
us to our numerous general statements that âMichiganâs long-arm statute âextends to the limits
imposed by federal constitutional due process requirements and thus, the two questions become
one.ââ See, e.g., AlixPartners, 836 F.3d at 549(quoting Mich. Coal., 954 F.2d at 1176). Yet LG Chem (on appeal) and the district court contend that such statements oversimplify and overgeneralize the matter, and that there are instances in which Michiganâs long-arm statute does not overlap with the Due Process Clause. To answer the question of the scope of the Michigan statute, we consider published decisions by the Michigan courts, and in the absence of such decisions, âit is the obligation of this Court to exercise [our] best judgment as to the interpretation which the Supreme Court of [Michigan] would place upon this legislation.â Kroger Co. v. Dornbos,408 F.2d 813, 816
(6th Cir. 1969).
In Mallory v. Conida Warehouses, Inc., 317 N.W.2d 597(Mich. Ct. App. 1982), the Court of Appeals of Michigan determined that because, categorically, the âMichigan courts lack jurisdiction overâ another state, âon statutory groundsâ under the stateâs long-arm statutes, No. 22-1203 Sullivan v. LG Chem, Ltd. Page 13 it need not conduct the constitutional analysis.Id. at 600
. Mallory considered unique facts; it addressed âwhether Michigan has a statutory basis for exercising long-arm jurisdiction over the State of Idaho,âid. at 599
, to adjudicate a claim that Idaho ânegligently inspect[ed] kidney beans grown in Idaho,âid. at 598
. After examining Michiganâs numerous long-arm statutes that permit actions against âan individual or his agent,â âa corporation or its agent,â âa partnershipâ or an agent thereof, or âa partnership association or an unincorporated voluntary association, or an agent thereof,â it determined that â[n]one of these statutes expressly permits a Michigan court to exercise long-arm jurisdiction over another state.âId. at 599
. Because a sister state categorically did not fall under any of the long-arm statutes, the Michigan Court of Appeals thus ended its analysis without considering the Due Process Clause, explaining that, â[e]ven if theâ due-process test were satisfied, the absence of âstatutory authorityâ precluded the exercise of personal jurisdiction.Id. at 601
.
Mallory acknowledged that â[w]hile it is true that in Sifers v. Horen, 385 Mich. 195,188 N.W. 623
(1971), the [Michigan Supreme] Court did indicate that the Legislature intended full
expansion of long-arm jurisdiction, Sifers was a case that clearly involved an individual, and the
only question before the Court was whether one of the statutory criteria was met.â Id. at 600.
However, the Mallory case involved different circumstances, requiring it to âdecide whether a
sister state was intended to be covered under the provisions for suits against individuals,
corporations, partnerships and voluntary associations or their agents.â Id. Mallory demonstrates
that even if the exercise of jurisdiction may satisfy the Due Process Clause, such an exercise may
still fail under the Michiganâs various long-arm statutes thereby depriving courts sitting in
Michigan of personal jurisdiction over the defendant. Though Mallory does not reach a holding
on the scope of the long-arm statutes, it comments on the intended wide reach of the Michigan
long-arm statutes. See id.
The Michigan Supreme Court clarified its interpretation of its long-arm statutes in Green
v. Wilson, 565 N.W. 2d 813(Mich. 1997). Green began by distinguishing two different types of long-arm statutes: âself-adjustingâ and âlaundry-listâ statutes.Id. at 816
. â[S]elf-adjustingâ statutes âstretch[] automatically to extend jurisdiction wherever the Due Process Clause permits.âId.
(emphasis added). They function â[l]ike a complete solar eclipse,â because âthe No. 22-1203 Sullivan v. LG Chem, Ltd. Page 14 due process and statutory analyses overlap entirelyâ and âonly a one-step analysis is necessary.âId.
On the other hand, â[l]aundry-list statutes enumerate specific acts that give rise to personal jurisdiction. They do not permit a one-step analysis, even in circumstances where they are thought to be âcoextensiveâ with due process.âId.
Green explained that the analysis under a âlaundry-listâ statute âis akin to a partial solar eclipse, with part of the statute granting jurisdiction within the permissible constitutional scope and part of the statute possibly outside it.âId.
Michigan has a âlaundry-listâ statute. Id.; see alsoid. at 815
(considering long-arm
statutes more generally and noting that âthere may be instances where a state court will lack the
power to exercise personal jurisdiction over a defendant, even though jurisdiction may be
constitutionally permissibleâ).
Green then explained what it means to say that Michiganâs long-arm statutes are
âcoextensive with due processâ: â[I]f a defendantâs actions or status fit within a provision of a
long-arm statute, jurisdiction may be extended as far as due process permits. The long-arm
statute is coextensive with due process insofar as the statute is limited by due process, and,
therefore, the statute and due process share the same outer boundary.â Id. at 816(emphasis added) (footnote omitted). But â[t]he coextensive nature of Michiganâs long-arm jurisdiction becomes pertinent only if the particular acts or status of a defendant first fit within a long-arm statute provision.âId.
(emphasis added). It explained that âthis does not mean that the two are equal and require a single inquiry based solely upon due process restrictions.âId.
at 816â17. The Michigan Supreme Court then instructed the application of a two-prong approach: âThe State of Michigan may exercise limited personal jurisdiction over [a defendant] if two conditions are met: First, [the defendant]âs conduct must fall within a provision of Michiganâs long-arm statutesâ and â[s]econd, the exercise of jurisdiction must comport with due process.âId. at 817
.
Michigan courts continue to cite Greenâs proposition that determining personal
jurisdiction requires a two-prong analysis, instructing that â[b]oth prongs of this analysis must be
satisfied for a Michigan court to properly exercise limited personal jurisdiction over a
nonresident.â Yoost v. Caspari, 813 N.W.2d 783, 791(Mich. Ct. App. 2012) (per curiam); see e.g.,id.
(declining to âconsider whether the exercise of limited personal jurisdiction over [counter-defendant] comports with due process because we conclude that [counter-plaintiff] No. 22-1203 Sullivan v. LG Chem, Ltd. Page 15 failed to establish a prima facie case against [counter-defendant] that satisfiedâ the long-arm statute); W.H. Froh, Inc. v. Domanski,651 N.W.2d 470, 475
(Mich. Ct. App. 2002) (âA personal
jurisdiction analysis involves a two-fold inquiry.â).
Additionally, several Michigan courts have characterized Michiganâs personal-
jurisdiction analysis as involving two sequential steps. See, e.g., Starbrite Distrib., Inc. v.
Excelda Mfg. Co., 562 N.W.2d 640, 641(Mich. 1997) (stating that â[f]irst, we must decide whether . . . the long-arm statuteâ is satisfied and â[s]econd, if we find that [statute i]s satisfied, then we must also decideâ the due-process question (emphasis added)); Mallory,317 N.W.2d at 599
(âBefore any constitutional considerations are considered, it is necessary to determine whether Michigan has a statutory basis for exercising long-arm jurisdiction.â (emphasis added)); Yoost,813 N.W.2d at 791
(same); Metry v. Coastal Cmty. Fed. Credit Union, No. 354372,2021 WL 4005883
, at *2 (Mich. Ct. App. Sept. 2, 2021) (same). These cases instruct that the
determination of whether a court sitting in Michigan can exercise personal jurisdiction over a
defendant requires two separate analyses.
Our statement that âMichiganâs long-arm statute âextends to the limits imposed by federal
constitutional due process requirements and thus, the two questions become one,ââ AlixPartners,
836 F.3d at 549(quoting Mich. Coal., 954 F.2d at 1176)), and other similar statements,5 ultimately rely on cases that predate the Michigan Supreme Courtâs 1997 decision in Green. For instance, AlixPartners,836 F.3d at 549
, quoted Michigan Coalition, 954 F.2d at 1176, which we decided in 1992âfive years before the Michigan Supreme Court decided Green. The Michigan Court of Appeals has also done this. In 1999âoverlooking Green and citing a case that predated Greenâthe Michigan Court of Appeals stated that âwhere it is found that personal jurisdiction does not offend due process, it consequently cannot violate this stateâs long-arm statute.â Bell v. Mannausa, No. 209117,1999 WL 33434986
, at *3 (Mich. Ct. App. 1999)
5
See also MAG IAS Holdings, Inc. v. Schmuckle, 854 F.3d 894, 899(6th Cir. 2017) (âThe Michigan long- arm statute, however, âextends to the limits imposed by federal constitutional due process requirements and thus, the two questions become one.ââ (quoting AlixPartners,836 F.3d at 549
)); Adelson v. Ocwen Fin. Corp., No. 17-1917,2018 WL 7226966
, at *2 (6th Cir. Aug. 20, 2018) (order) (âBecause Michiganâs âlong-arm statute has been interpreted to grant the broadest basis for jurisdiction consistent with due process,â the two inquiries merge: If the exercise of personal jurisdiction âdoes not offend due process, it consequently cannot violate [Michiganâs] long-arm statute.ââ (alteration in original) (quoting Commâr of Ins. v. Arcilio,561 N.W.2d 412, 421
(Mich. Ct. App. 1997)). No. 22-1203 Sullivan v. LG Chem, Ltd. Page 16 (per curiam) (quoting Ins. Commâr of Mich. v. Arcilio,561 N.W.2d 412, 421
(Mich. Ct. App.
1997) (decided on Jan. 1, 1997)). But Green requires that we conduct two separate inquiries
when determining whether a court sitting in Michigan has personal jurisdiction over a defendant.
3. The Scope of § 600.715
We next consider the scope of Michiganâs long-arm statute and whether LG Chem and
Michigan had a sufficient relationship under § 600.715 to satisfy long-arm jurisdiction. We
return to the statute itself, which provides:
The existence of any of the following relationships between a corporation or its
agent and the state shall constitute a sufficient basis of jurisdiction to enable the
courts of record of this state to exercise limited personal jurisdiction over such
corporation and to enable such courts to render personal judgments against such
corporation arising out of the act or acts which create any of the following
relationships: (1) The transaction of any business within the state. (2) The doing
or causing any act to be done, or consequences to occur, in the state resulting in
an action for tort. . . .
Mich. Comp. Laws § 600.715; see also Oberlies v. Searchmont Resort, Inc.,633 N.W.2d 408, 413
(Mich. Ct. App. 2001) (âWell-settled principles of statutory interpretation require us to look to the plain language of M.C.L. § 600.715(1) to determine whether defendant falls within the stateâs long-arm jurisdiction.â). The statute allows courts sitting in Michigan to exercise personal jurisdiction over a defendant when a âplaintiff[] . . . show[s] that their cause of action arose out of one of the relationships enumerated in the statute.â Schneider v. Linkfield,198 N.W.2d 834
, 835â36 (Mich. Ct. App. 1972) (âThe cause of action did arise out of the use of personal property constructively situated within the state of Michigan.â), affâd,209 N.W.2d 225
(Mich. 1973); see also Lanier v. Am. Bd. of Endodontics,843 F.2d 901, 905, 908
(6th Cir. 1988) (characterizing the existence of the relationship as criterion one, seeid. at 905
, and whether the claim arose of out the relationship as criterion two,id. at 908
); 1 Mich. Pl. & Pr. § 2:35 (2d ed.).
Here, Plaintiff argues that at least two subsections of § 600.715 support the exercise of personal
jurisdiction. Appellant Br. at 18â22. We examine each below.
Beginning with § 600.715(1), the statutory phrase âtransaction of any business within the
state,â Mich. Comp. Laws § 600.715(1), is broad and â[t]he word âanyâ means just what it says. It includes âeachâ and âevery.â It comprehends âthe slightest.ââ Sifers,188 N.W.2d at 624
n.2 No. 22-1203 Sullivan v. LG Chem, Ltd. Page 17 (citing Harrington v. Inter-State Bus. Menâs Accident Assân,178 N.W. 19
(Mich. 1920); Gibson v. Agric. Life Ins. Co. of Am.,276 N.W. 450
(Mich. 1937)). Thus, when a âdefendant conduct[s] even the slightest act of business in Michigan,â a sufficient transaction of business occurs under § 600.715(1). Lanier,843 F.2d at 906
. Here, LG Chemâs two shipments of its batteries and its two supplier contracts are sufficient evidence of transactions of business within Michigan, satisfying the first criterion of § 600.715(1); see also Oberlies,633 N.W.2d at 413
.
But the long-arm statute âexposes a non resident to suit in Michigan only for a cause
which arose out of the relationship serving as a basis for such jurisdiction.â Sifers, 188 N.W.2d
at 623(emphasis added); see also Electrolines, Inc. v. Prudential Assurance Co.,677 N.W.2d 874, 888
(Mich. Ct. App. 2003) (finding no personal jurisdiction under § 600.715(1) when, âeven assuming arguendo that [the defendant insurance company]âs registration with the Michigan Insurance Commissioner is an act that could constitute a âtransaction of any businessâ under MCL 600.715(1), plaintiffâs suit does not arise from [the defendant]âs registration, but from a fire of an insured building in Liberiaâ). We observe that Michigan courts have liberally construed the long-arm statuteâs arising-out-of language. For example, in Schneider, the Michigan Court of Appeals found that personal jurisdiction existed over a defendant who was a former Michigan resident in an action brought by a plaintiff for injuries that the plaintiff had suffered in a car accident with the defendant in Indiana. 198 N.W.2d at 834â36. Schneider examined the long-arm statuteâs third relationship:6 âThe ownership, use, or possession of any real or tangible personal property situated within the state.â Id. at 835 (quotingMich. Comp. Laws § 600.705
(3)). The court held that the plaintiffâs claim âdid arise out of the use of personal
property constructively situated within the state of Michiganâ because the defendantâs car was
titled in Michigan, even though the accident occurred in Indiana. Id. at 836.
Similarly, in Oberlies, the Michigan Court of Appeals considered whether it could assert
personal jurisdiction over a defendant in an action brought by a Michigan resident who suffered
injury at the defendantâs ski facility in Canada. 633 N.W.2d at 411. In Oberlies, the âdefendant engaged in widespread advertising that had a clear purpose of soliciting business from Michigan residents.âId. at 413
. Many of the advertisements âhighlighted the proximity of defendantâs ski
6
The Michigan Court of Appeals examined § 600.705(3), which is identical in this regard to § 600.715(3).
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 18
facility to Michigan, provided detailed directions to the facility from Michigan, and highlighted
the apparent benefits of skiing in Ontario as opposed to Michigan.â Id. at 414. According to the
plaintiff, the âdefendantâs advertisement led her to establish a business relationship with
defendant.â Id. The Michigan Court of Appeals found that the advertisements âconstituted the
transaction of business in Michiganâ and concluded that, â[u]nder these circumstances,â
§ 600.715(1) permits the exercise of personal jurisdiction. Id. Yetâdespite finding
§ 600.715(1) satisfiedâthe court then determined that due-process principles nonetheless
prohibited the exercise of personal jurisdiction because the plaintiffâs claim was too âattenuatedâ
from the defendantâs advertising in Michigan and thus did not âarise from the circumstances
creating the jurisdictional relationship between the defendant andâ Michigan. Id. at 416 (quoting
Rainsberger v. McFadden, 436 N.W.2d 412, 413(Mich. Ct. App. 1989)); see alsoid. at 417
.
Oberliesâs determination that § 600.715(1) allowed for what the Due Process Clause
prohibitedâthe exercise of personal jurisdiction when the plaintiffâs claim âwas merely
tangentially related toâ the defendantâs transaction of business in Michiganâspeaks to the
breadth of Michiganâs long-arm statute and its arising-out-of language. Id. at 417. In this
particular instance, it is arguable that Plaintiff can show that his action arises from LG Chemâs
transaction of business in Michigan. Because we conclude, however, that Plaintiff satisfies the
long-arm statute under § 600.715(2), we need not decide whether Plaintiff also satisfies
§ 600.715(1).
According to Plaintiff, a second enumerated relationship between LG Chem and
Michiganâcreated by â[t]he doing or causing any act to be done, or consequences to occur, in
the state resulting in an action for tortâ gives rise to personal jurisdiction. See Mich. Comp.
Laws § 600.715(2). âA plain language reading of these words reveals that either the tortious conduct or the injury must occur in Michigan.â Green,565 N.W. 2d at 817
(emphasis added) (finding no jurisdiction where neither the act nor the consequence occurred in Michigan). Thus, Michigan courts tell us that, under § 600.715(2), when a âdefendantâs tortious conduct [or] the consequent injury to [a] plaintiff[] occur[s] in Michigan, [a] defendant bec[o]me[s] subject to the exercise of personal jurisdiction by Michigan courts.â See W.H. Froh,651 N.W.2d at 477
; see also Dobronski v. United Final Expense Servs., Inc., No. 357057,2022 WL 1194419
, at *3 (Mich. Ct. App. Apr. 21, 2022), appeal denied,979 N.W.2d 832
(Mich. 2022) (âMichiganâs No. 22-1203 Sullivan v. LG Chem, Ltd. Page 19 long-arm statutes bring within their grasp individuals and corporations who, personally or through their agents . . . commit a tort in Michigan[] or cause an act to be done that results in an action for tort in Michigan.â (emphasis added)). Thus, § 600.715(2) encompasses a defendantâs âacts outside the state which have consequences inside the state.â Dornbos v. Kroger Co.,157 N.W.2d 498, 500
(Mich. Ct. App. 1968); see also 1 Mich. Pl. & Pr. § 2:38 (2d ed.) (explaining
that § 600.715(2) covers âacts outside [Michigan] that have consequences inside [Michigan]â); 6
Mich. Civ. Jur. Corps. § 538 (â[Section 600.715(2)] applies to situations in which the act or
conduct of the foreign corporation outside of Michigan leads to an event in Michigan that gives
rise to the tort claimâ).
Here, Plaintiff contends that Defendantâs alleged out-of-state acts (negligently making
the 18650 battery) caused a consequence to occur (the explosion of the battery in Plaintiffâs
pocket)âin Michigan, which gives rise to his negligence action. The facts before us differ from
Green. The Green court asked (1) where the act itself occurred and (2) where the consequences
of the act occurred. 565 N.W. 2d at 817. Because the act of dangerously driving occurred in Canada and â[t]he consequences of the actââthe plaintiffâs injuryââalso occurred in Canada,â the defendantâs âacts d[id] not fit under the . . . long-arm statute.âId.
The present circumstances also differ from Metry, where the Michigan Court of Appeals found that a Michigan court could not exercise personal jurisdiction over the defendants because their acts occurred outside of Michigan and âit [wa]s difficult to conclude that the effects of the alleged act were felt in Michigan,â2021 WL 4005883
, at *3, see also id. at *4. In Woods v. Edgewater Amusement Park, where a Florida corporation manufactured an amusement-park ride in Florida and sold it to an individual in âNew Jersey for installation at Haslett, Michigan,â the Michigan Supreme Court found that both § 600.715(1) and (2) were satisfied because the plaintiff was injured on the ride in Michigan. See165 N.W.2d 12, 14
(Mich. 1969); see alsoid.
at 13â17 (considering the long-
arm statute and the Due Process Clause together).
LG Chem asks us to interpret § 600.715(2) in a manner that limits specific personal
jurisdiction to instances in which a defendant causes a consequence to occur in Michigan that
results in a tort action only when the âdefendant has some role in causing its product to be used
in Michigan.â Appellee Br. at 26. LG Chem contends that Woods found personal jurisdiction
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 20
under § 600.715(2) only because the Woods defendant sold the injuring product âto a New Jersey
individual specifically âfor installation at Haslett, Michigan.ââ Appellee Br. at 25 (quoting
Woods, 165 N.W.2d at 14). But such an interpretation lacks support in the reasoning of Woodsâs
§ 600.715(2) holding or the text of § 600.715(2) itself. Because Woods, which was decided
before Green, addressed § 600.715(2) and the Due Process Clause together, we must look with a
careful eye to its § 600.715 analysis only, and not incorporate its due-process analysis into our
interpretation of § 600.715.
In Woods, when describing the facts of the case, the Michigan Supreme Court noted that
the manufacturing defendant from Florida had sold the injuring ride âto a Roger Haney in the
State of New Jersey for installation at Haslett, Michigan; that said Roger Haney sold said
amusement ride to Harry Stahl, individually, and in July 1959, and subsequently as an
accommodation to Roger Haney who had purchased said ride on installment contract, B. A.
Schiff & Associates, Inc., refinanced the ride at the Coral Gables First National Bank in Coral
Gables, Florida, to assist Harry Stahl to acquire same.â 165 N.W.2d at 14. The court never emphasized that the defendant was specifically aware of the Michigan location of the installation, seeid.,
and never relied on the fact that the defendant perhaps acknowledged the
productâs installation location in reaching its § 600.715(2) holding that the record âsatisfies the
Michigan statutory requirement that defendant [had] . . . caus[ed] an act to be done or a
consequence to occur resulting in the present actions for tort,â id. at 17 (emphasis in original);
see also id. at 15â16.
LG Chem points to what it believes is a similar factual distinction in Behlke v.
Metalmeccanica Plast, S.P.A., 365 F. Supp. 272(E.D. Mich. 1973). Appellee Br. at 25. Here, too, Behlke does not support LG Chemâs position. In Behlke, the district judge in the Eastern District of Michigan determined that the court could exercise personal jurisdiction over an Italian company that manufactured a product that it sold to a Canadian distributor that then sold it to a company that resold it to a Michigan company whose employee was injured by the product.Id. at 273
. After noting the âbroad[ness]â of Michiganâs long-arm statute and discussing the Woods holding, it concludedâvery emphaticallyâthat â[i]t is quite apparent that the Michigan Supreme Court would hold the Italian defendant . . . to be properly before this court on the No. 22-1203 Sullivan v. LG Chem, Ltd. Page 21 negligence count, it certainly having been properly alleged that the defendant caused a consequence to occur within this state.âId. at 274
. Behlke makes no mention of the defendantâs ârole in causing its product to be used in Michigan.â Appellee Br. at 26; see generally365 F. Supp. 272
.
At bottom, Defendant points to no authority that suggests that § 600.715(2)
independently7 requires that a defendant specifically contemplate the forum state when engaging
in acts that cause the consequence to occur in Michigan. It has not provided us with any
authority, and we have found none, to support its bold claim that personal jurisdiction under
§ 600.715(2) exists only when a defendantâs product reaches the intended recipient rather than an
unintended recipient. As Behlke described, § 600.715 is âbroadâ and the Michigan courts have
interpreted it liberally to permit a wide-ranging exercise of personal jurisdiction. 365 F. Supp. at
274. Pursuant to the plain meaning of § 600.715(2), the consequences of LG Chemâs alleged
negligent manufacture or design of the 18650 batteries occurred in Michigan when LG Chemâs
18650 batteries exploded in Plaintiffâs pocket, resulting in an action in tort. Because Plaintiffâs
Complaint contains sufficient allegations that Plaintiff suffered an injury in Michigan due to LG
Chemâs allegedly tortious conduct, we conclude that Plaintiff has carried his statutory burden
under § 600.715(2). See Peters, 40 F.4th at 437â38. Therefore, we hold that the district court,
sitting in Michigan, has the power under Michiganâs long-arm statute to exercise personal
jurisdiction over LG Chem.
B. THE DUE PROCESS CLAUSE
âThe Fourteenth Amendmentâs Due Process Clause limits a state courtâs power to
exercise jurisdiction over a defendant.â Ford, 141 S. Ct. at 1024. We apply âa three-part test to determine whether the exercise of personal jurisdiction . . . comports with constitutional due process.â AlixPartners,836 F.3d at 549
. âFirst, the defendant must purposefully avail himself of the privilege of acting in the forum state or causing a consequence in the forum state.âId.
(emphasis in original) (quoting Air Prods.,503 F.3d at 550
). Second, the claims ââmust arise out of or relate to the defendantâs contactsâ with the forum.â Ford,141 S. Ct. at 1025
(quoting
7
Of course, the defendantâs contacts with Michigan and its relation to the plaintiffâs claims must still
comport with the Due Process Clause, which we address below.
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 22
Bristol-Myers, 137 S. Ct. at 1780); see also AlixPartners,836 F.3d at 549
. Third, âthe acts of the defendant or consequences caused by the defendant must have a substantial enough connection with the forum state to make the exercise of jurisdiction over the defendant reasonable.â AlixPartners, 836 F.3d at 549â50 (quoting Air Prods.,503 F.3d at 550
).
Without conceding that the district court properly determined that LG Chem purposefully
availed itself of the privileges of conducting activities in Michigan, LG Chem does not make any
argument challenging purposeful availment. See Appellee Br. at 29, 33. Under the Due Process
Clause, LG Chem must have âtake[n] âsome act by which [it] purposefully avails itself of the
privilege of conducting activities within the forum State.â The contacts must be the defendantâs
own choice and not ârandom, isolated, or fortuitous.ââ Ford, 141 S. Ct. at 1024â25 (second
alteration in original) (quoting Hanson v. Denckla, 357 U.S. 235, 253(1958); Keeton v. Hustler Magazine, Inc.,465 U.S. 770, 774
(1984)). This requires a showing âthat the defendant deliberately âreached out beyondâ its homeâby, for example, âexploi[ting] a marketâ in the forum State or entering a contractual relationship centered there.â Id. at 1025 (alteration in original) (quoting Walden v. Fiore,571 U.S. 277, 285
(2014)); see also Burger King Corp. v. Rudzewicz,471 U.S. 462
, 475â76 (1985). The purposeful-availment requirement prevents the exercise of jurisdiction over a defendant âsolely as a result of . . . the âunilateral activity of another party or a third person.ââ Burger King,471 U.S. at 475
(quoting Helicopteros Nacionales de Colombia, S.A. v. Hall,466 U.S. 408, 417
(1984)). ââIt is the quality of [the] contacts,â and not their number or status, that determines whether they amount to purposeful availment.â CompuServe, Inc. v. Patterson,89 F.3d 1257, 1265
(6th Cir. 1996) (emphasis and alteration in original) (quoting Reynolds v. Intâl Amateur Athletic Fedân,23 F.3d 1110, 1119
(6th
Cir. 1994)).
Based on LG Chemâs direct shipments of the 18650 batteries into Michigan and its
supplier contracts, LG Chem purposefully availed itself of the benefits of doing business in
Michigan and the protections of Michigan law. See Burger King, 471 U.S. at 476; cf. J. McIntyre Mach., Ltd. v. Nicastro,564 U.S. 873, 878
(2011) (finding no personal jurisdiction under a stream-of-commerce theory where the defendant never shipped its product into or marketed its goods in the forum state). LG Chem shipped 18650 batteries into Michigan under No. 22-1203 Sullivan v. LG Chem, Ltd. Page 23 one agreement and entered into another âcontract made and to be performed in the State of Michiganâ and has a Michigan forum-selection clause.â Sullivan, 585 F. Supp. 3d at 1003 (quoting R. 24-7 (Ex. 6, Automaker-product Manufacturer Contract at 20) (Page ID #945)). Entering into contracts in the forum state subject to the forum-stateâs laws that create an ongoing relationship, alongside placing oneâs products directly into the forum state, can satisfy purposeful availment. See CompuServe,89 F.3d at 1265
. LG Chemâs contacts, as the district court found, demonstrate deliberateness; it made deliberate contact with Michigan. See Sullivan, 585 F. Supp. 3d at 1003â04. Thus, LG Chem could âreasonably have anticipated being haled into a[]â Michigan court. See CompuServe,89 F.3d at 1264
. Accordingly, LG Chem purposefully availed itself âof the privilege of conducting businessâ in Michigan and having its âactivities . . . shielded by âthe benefits and protectionsâ of [Michigan]âs laws.â Burger King,471 U.S. at 476
.
The Due Process Clause next requires that the plaintiffâs claim ââarise out of or relate to
the defendantâs contactsâ with the forumâ state. Ford, 141 S. Ct. at 1025(quoting Bristol-Myers,137 S. Ct. at 1780
). The Constitution requires âan affiliation between the forum and the underlying controversy.âId.
(quoting Bristol-Myers,137 S. Ct. at 1780
); see also MAG IAS,854 F.3d at 903
(âThis requires that [defendant]âs contacts be ârelated to the operative facts of the controversy.ââ (quoting Bird v. Parsons,289 F.3d 865, 875
(6th Cir. 2002))). â[S]pecific jurisdiction is confined to adjudication of issues deriving from, or connected with, the very controversy that establishes jurisdiction.â Bristol-Myers,137 S. Ct. at 1780
(quoting Goodyear,564 U.S. at 919
). â[T]his is a âlenient standard,â requiring only that the cause of action have a âsubstantial connectionâ to the defendantâs activity in the state.â MAG IAS,854 F.3d at 903
(quoting Bird,289 F.3d at 875
). The Sixth Circuit, even before Ford, âexplained that the cause of action need not âformallyâ arise from defendantâs contacts.â Air Prod.,503 F.3d at 553
(quoting Bird,289 F.3d at 875
).
The Supreme Court recently rejected a âcausation-only approachâ when interpreting the
ârequirement of a âconnectionâ between a plaintiffâs suit and a defendantâs activities.â Ford, 141
S. Ct. at 1026(âNone of our precedents has suggested that only a strict causal relationship between the defendantâs in-state activity and the litigation will do.â). Rather, the standardââthat the suit âarise out of or relate to the defendantâs contacts with the forumââcontains two parts No. 22-1203 Sullivan v. LG Chem, Ltd. Page 24 separated by a disjunctive conjunction.Id.
(quoting Bristol-Myers,137 S. Ct. at 1780
); see also
id. at 1034 (Gorsuch, J., concurring). âThe first half of that standard asks about causation; but
the back half, after the âor,â contemplates that some relationships will support jurisdiction
without a causal showing.â Id. at 1026 (majority opinion). The Court stated that â[i]n the sphere
of specific jurisdiction, the phrase ârelate toâ incorporates real limits, as it must to adequately
protect defendants foreign to a forum.â Id. But it does not require âproof that the plaintiffâs
claim came about because of the defendantâs in-state conduct.â Id. The Due Process Clause
does not limit specific jurisdiction over a defendant to the states only where a product âwas
designed, manufactured, or first sold.â Id. at 1028.
LG Chem argues that because ânone of [its] contacts [with Michigan] involved serving a
consumer market for standalone 18650 batteries,â its contacts cannot relate to Plaintiffâs claims.
Appellee Br. at 32. Specifically, it contends that â[n]one of [its] limited contacts with Michigan
had anything to do with Plaintiffâs claims for personal injury from use of an 18650 lithium-ion
battery cell as a standalone battery for his vaping device.â Id. at 33. Thus, according to LG
Chem, â[a]ny connections that exist between Michigan and this lawsuit were formed entirely by
Plaintiff, Montrose Smokers Palace, and other third parties; none by LG Chem.â Id. at 31. This
is too narrow a framing, and one disguising the rejected causation analysis. LG Chem, in
essence, asks us to hold that the only way a court could have personal jurisdiction over LG Chem
when a consumer plaintiff suffers an injury from one of LG Chemâs 18650 batteries is if LG
Chem served the consumer market for 18650 batteries in the forum state, even if it distributes
that same injuring product within the forum state for a different market. It offers no authority in
support of that bold assertion. And none exists. To reach this holding, we would need to require
âproof that the plaintiffâs claim came about because of the defendantâs in-state conduct.â Ford,
141 S. Ct. at 1026. That we cannot do.8
LG Chem suggests that Ford does not apply here because, unlike LG Chem, Ford
marketed the exact same vehicles that injured the plaintiffs to consumers in the forum states even
though it had not shipped those specific injuring vehicles into the forum states. Appellee Br. at
8
Whether LG Chem sold its batteries for limited types of commercial use as opposed to individual use may
be relevant to liability, but LG Chem cites no authorities suggesting that this factor would implicate jurisdiction.
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 25
30â31. This argument is misplaced and confuses the standard. The caselaw requires deliberate
acts by the defendant to establish the minimum contacts required to demonstrate purposeful
availment. See Ford, 141 S. Ct. at 1027. But, when next looking for the requisite connection between the claims and the defendantâs contacts under the second prong, our caselaw does not require that courts examine why that connection exists, so long as it sufficiently exists. Cf. Bristol-Myers,137 S. Ct. at 1781
(finding the court lacked personal jurisdiction where nonresidents had not been injured by a defendantâs product in the forum state and explaining that âa defendantâs relationship with a . . . third party, standing alone, is an insufficient basis for jurisdictionâ (alterations in original) (quoting Walden v. Fiore,571 U.S. 277, 286
(2014))). It is true that Bristol-Myers had extensive contacts with California, including selling the drug in California, yet the nonresident plaintiffs âwere not prescribed Plavix in California, did not purchase Plavix in California, did not ingest Plavix in California, and were not injured by Plavix in California.âId.
Here, however, Plaintiff is a Michigan resident who was injured by
Defendantâs product in Michiganâthe same type of product that LG Chem shipped into
Michigan around this time period.
Because due process requires that Plaintiffâs claims âarise out of or relate to the
defendantâs contacts with the forum,â Ford, 141 S. Ct. at 1026(quoting Bristol-Myers,137 S. Ct. at 1780
), we look under this prong at a defendantâs specific contacts with the state and consider their connection to a plaintiffâs claim. LG Chem conducted business with Michigan companies regarding its 18650 batteries and shipped its 18650 batteries into Michigan, and Sullivan suffered injury from LG Chemâs 18650 battery in Michigan. See Tieszen,2021 WL 4134352
, at *1, *5â6 (finding that a plaintiffâs claim stemming from his injury allegedly caused by LG Chemâs 18650 batteries sufficiently related to LG Chemâs contacts with South Dakota because LG Chem sells its 18650 batteries to commercial customers in South Dakota, the plaintiff is a South Dakota resident, the plaintiff purchased the injuring batteries in South Dakota, and the batteries exploded in the plaintiffâs pocket in South Dakota); cf. McLaughlin, 599 S.W.3d at 903â04 (â[Plaintiff] alleged only that LG Chemâs model 18650 batteries made their way into Missouri by way of an independent, third-party distributor that sold the batteries into Missouri. While [Plaintiff] alleged LG Chem designed, manufactured, and sold the subject battery, [Plaintiff] did not allege LG Chem sold its batteries directly into Missouri.â). Either Plaintiff ultimately purchased an No. 22-1203 Sullivan v. LG Chem, Ltd. Page 26 18650 battery that LG Chem directly shipped into Michigan, or the battery came from another state at the same time that LG Chem was contracting for and and shipping that same type of battery in Michigan. Either way, LG Chem had fair notice that it could be sued in Michigan for the Michigan consequences of defects relating to its 18650 battery, and even agreed with one company to be governed by Michigan law regarding the 18650 batteries. See, e.g., Tieszen,2021 WL 4134352
, at *6 (considering Ford and finding relatedness and explaining that the plaintiff âalleges that: (1) LG Chem sells and distributes 18650 lithium-ion cell batteries in South Dakota, (2) [plaintiff] purchased such a battery online while in South Dakota, and (3) [plaintiff] was injured by an 18650 lithium-ion cell battery in South Dakota. Thus, [plaintiff]âs claim and LG Chemâs contact with South Dakota both revolve around the 18650 lithium-ion battery.â). Because due process does not require a causal showing, Ford,141 S. Ct. at 1026
, the district
court correctly determined that Plaintiffâs claims related to LG Chemâs contacts with Michigan.
âLastly, we consider whether exercising personal jurisdiction over [LG Chem] would be
reasonable, i.e., whether it would âcomport with âtraditional notions of fair play and substantial
justice.ââ CompuServe, 89 F.3d at 1267â68 (quoting Reynolds, 23 F.3d at 1117). When a defendant âavail[s] himself of the privilege of conducting businessâ in the forum state and âhis activities are shielded by âthe benefits and protectionsâ of the forumâs laws it is presumptively not unreasonable to require him to submit to the burdens of litigation in that forum as well.â Burger King,471 U.S. at 476
. Put another way, when we find purposeful availment and relatedness, âan inference arises that this third factor is also present.â CompuServe,89 F.3d at 1268
. We âmust consider several factors in this context, including âthe burden on the defendant, the interest of the forum state, the plaintiffâs interest in obtaining relief, and the interest of other states in securing the most efficient resolution of controversies.ââId.
(quoting Am. Greetings Corp. v. Cohn,839 F.2d 1164
, 1169â70 (6th Cir. 1988)).
The district court correctly determined that the exercise of personal jurisdiction would be
reasonable and would not offend the âtraditional notions of fair play and substantial justice.â
CompuServe, 89 F.3d at 1267â68 (quoting Reynolds, 23 F.3d at 1117); see also Sullivan, 585 F.
Supp. 3d at 1006â07. LG Chem has already contracted in Michigan; has agreed to litigate in its
courts; and has litigated other lawsuits in Michigan, suggesting that doing so again is not too
No. 22-1203 Sullivan v. LG Chem, Ltd. Page 27
burdensome. See Sullivan, 585 F. Supp. 3d at 1007. Michiganâwhose laws govern a LG Chem
contract for 18650 batteries and who received shipments of 18650 batteriesâhas a strong
interest in providing a forum for lawsuits relating to their residentsâ injuries allegedly caused by
these products. Plaintiff suffered severe injuries and has a strong interest in adjudicating LG
Chemâs liability. Ultimately, the district court properly determined that the Constitution permits
a court sitting in Michigan to exercise personal jurisdiction over LG Chem. The district court
did not err in reaching this constitutional determination.
IV. CONCLUSION
Michigan law requires that courts separately analyze whether a court sitting in Michigan
can properly exercise personal jurisdiction over a defendant under the stateâs long-arm statute
and under the Due Process Clause. Though the two questions may often rise and fall together
because of Michiganâs broad interpretation of its long-arm statutes, parties should not presume
that the two inquiries are always coextensive and should independently address each. Because of
LG Chemâs contacts with Michigan, we hold that the district court sitting in Michigan has
personal jurisdiction over LG Chem under Michiganâs long-arm statute and that the exercise of
jurisdiction comports with the Due Process Clause. Accordingly, we REVERSE the district
courtâs judgment and REMAND for further proceedings.