Rule 25(c) extends personal jurisdiction to substituted defendant

Quinstreet Inc. v. Parallel Networks, LLC, Civ. No. 06-495-SLR, May 28 , 2009.

Robinson J.  Third-party defendant’s motion to dismiss the third-party complaint is denied; defendant’s motion to dismiss third-party defendant’s declaratory judgment claims for lack of jurisdiction over the person is denied; and plaintiff’s and defendant’s joint motion to dismiss the claims between them is granted.

Plaintiff seeks a declaration that it does not infringe the patents-in-suit which disclose systems for efficiently managing dynamic web page generation requests.  Defendant counterclaimed for infringement and, in addition, filed an unopposed motion to substitute the real party in interest consented to jurisdiction.  Thereafter, plaintiff filed a third party complaint seeking indemnification from the third-party defendant based on a previous agreement to defend any patent infringement claims on plaintiff’s behalf (the “Agreement”).  Third-party defendant moved to dismiss the indemnification claims and simultaneously filed for a declaratory judgment of patent invalidity and noninfringement.  Plaintiff and defendant’s joint motion to dismiss the claims between them with prejudice is granted.  Third-party defendant’s motion to dismiss the indemnity complaint on the basis of a forum selection clause is denied as the complaint states a basis upon which relief may be granted and the dispute is properly framed as a transfer motion.  Plaintiff is directed to address its intent to pursue the indemnity claim.  Defendant’s motion to dismiss the third-party claims for lack of personal jurisdiction is denied.  Rule 25 provides that where in personam jurisdiction has been previously acquired of the original party, the in personam jurisdiction continues over the substituted party.  Moreover, defendant’s concessions to personal jurisdiction in its answers to plaintiff’s amended complaints would have extended to third-party defendant’s declaratory judgment action as well since personal jurisdiction is not claim-specific.

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