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Mai v. Krause11/1/2002
NOT TO BE PUBLISHED IN OFFICIAL REPORTS
California Rules of Court, rule 977(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 977(b). This opinion has not been certified for publication or ordered published for purposes of rule 977.
Plaintiff Hieu Mai was injured after falling off a defective ladder. He brought an action against defendant Krause, Inc., the manufacturer of the ladder. During the course of the trial, Krause, Inc. filed for protection in bankruptcy in Illinois . Mai then pursued an action against defendants Guenther Krause and Edward Hansen, who had not previously been named as defendants or served with process. The trial court granted Krause's and Hansen's motions to quash service of summons based on lack of personal jurisdiction. Mai appeals. For the reasons stated below, we affirm.
I. Statement of Facts
Krause is the president and sole shareholder of Krause, Inc. He is a German citizen and a resident of Alsfeld, Germany. Krause designed and patented the ladder that, after numerous design changes, was later placed into the stream of commerce by Krause, Inc., and purchased by Mai. Hansen works for Krause, Inc. at its offices in Roscoe, Illinois . Hansen handles the company's daily operations as its Director of Operations. Hansen is a resident of Illinois.
Neither Krause nor Hansen has ever resided or operated a place of business in California, has ever lived in California, or has ever owned property in California. Neither Krause nor Hansen has ever utilized the legal system in California or has been subject to a California court's jurisdiction. Neither individual has ever conducted any personal business in California. Krause visited California for a vacation in 1990, but he has never conducted business for Krause, Inc. in California. Hansen attended boot camp for the United States Navy in California. He also attended a business convention in California prior to his employment with Krause, Inc. Hansen has never conducted business for Krause, Inc. in California.
Krause was not involved in the daily operations of Krause, Inc. However, Hansen usually contacted him on a weekly basis. Krause also occasionally traveled to Illinois to conduct business. As Director of Operations, Hansen was involved in production, administration, and customer service, including safety issues, for Krause, Inc.
On February 24, 1997, the Consumer Product Safety Commission (CPSC) wrote to Krause, Inc. about a complaint it had received regarding a failed hinge in the model of ladder that later injured Mai. The letter stated, "The commission provides you with these reports because they often can serve as an early warning to companies that there may be a product safety problem." Krause, Inc. did not have a system with which to monitor non-injury claims involving defective ladders. These claims were handled by customer service, which usually replaced the defective ladder. However, the company tracked claims with injuries. Hansen referred these claims to Paul Junius, an attorney with Ladder Management Service, for adjustment and investigation.
Hansen first became concerned that there might be a problem with the ladder in April 1998. Hansen's concern was based on an increasing number of claims associated with the ladder. The ladder was not a new product, but it had undergone numerous design changes. Hansen was uncertain as to the nature or cause of that increase. He attributed some increase in claims to an increase in the volume of ladders produced and distributed by Krause, Inc. At that time, however, Hansen did not attribute the incr
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