Gorton v. Nordlund12/6/2005
In this appeal from an order denying their motions to dismiss for lack of personal jurisdiction, appellants Dorel Industries, Inc. and Dorel U.S.A., Inc. assert that when personal jurisdiction is based on imputation of contacts, an actual agency relationship or manifest corporate wrongdoing must be demonstrated and that respondent did not make this showing. We affirm.
FACTS
Jayson Gorton, who weighed less than 40 pounds, was restrained by a Grand Explorer low-shield booster seat when he was injured in a two-vehicle accident while riding in the rear seat of a car being driven by his father. The booster seat was purchased at a Target store in St. Louis Park, Minnesota.
Respondent Colie Gorton (Gorton), individually and as Jayson's parent and natural guardian, brought this products-liability action against appellant Dorel Industries, Inc. (Dorel), appellant Dorel U.S.A., Inc. (Dorel U.S.A.), Dorel Juvenile Group, Inc. (DJG), and Cosco, Inc., alleging that the Grand Explorer provided inadequate upper-torso and head restraint for children weighing less than 40 pounds,
Dorel is a Canadian corporation with its principal office in Montreal, Quebec. In 1988, Dorel acquired Cosco, a company involved in the production of children's furniture and accessories, and in 2000, Dorel acquired Safety 1st, a company involved in the child-safety segment of the juvenile industry. In 2001, Cosco and Safety 1st were merged to create DJG, a Massachusetts corporation. Dorel U.S.A. is a holding company incorporated in Delaware. Dorel owns 100% of Dorel U.S.A., and Dorel U.S.A. owns 100% of DJG. The principal offices of both Dorel U.S.A. and DJG are located at 2525 State Street, Columbus, Indiana.
Three brothers, Martin, Jeffrey, and Alan Schwartz, and their relative by marriage, Jeff Segal, have served as Dorel directors since 1987. Martin Schwartz is Dorel's president and chief executive officer, Jeffrey Schwartz is Dorel's chief financial officer, and Alan Schwartz and Jeff Segal are executive vice presidents of Dorel. Martin and Jeffrey Schwartz are also Dorel U.S.A. officers and the only directors of DJG. In DJG organizational charts for 2000 and 2001, Martin Schwartz and Pierre Dupuis, the chief operating officer for Dorel, are identified as DJG executive staff.
Dorel's 2002 annual report states:
DOREL INDUSTRIES INC. is a global manufacturer of consumer products. It specializes in two market segments: juvenile products and home furnishings. Dorel's extensive product offering includes juvenile products such as infant car seats, strollers, high chairs, toddler beds, cribs, infant health and safety aids, play-yards and juvenile accessories . . . .
Dorel employs approximately 4,500 people in fourteen countries. Major North American facilities are located in Montreal, Quebec; Cornwall, Ontario; Columbus, Indiana; Wright City, Missouri; Tiffin, Ohio; Dowagiac, Michigan; and Canton, Massachusetts. The Company's major divisions in the United States include . . . the Dorel Juvenile Group (DJG USA), which incorporates the Cosco and Safety 1st brand names.
Dorel's 2002 annual report also states, "We made a number of key moves this past year. During the second quarter a new president was named to head our largest division, the Dorel Juvenile Group USA."
Dorel Industries' goal is to be one of the premier consumer products companies in North America and Europe. The Company carries out its business in three distinct product areas; Juvenile Products, Ready-to-Assemble (RTA) Furniture and Home Furnishings. These segments consist of several operating divisions or subsidiaries. Each is managed independently by
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