A federal court in Arizona has delivered a victory to Lewis & Lin’s client, denying a motion for a preliminary injunction seeking to transfer a domain name to the plaintiff in a breach of contract dispute.
Plaintiff alleged to have entered into a contract to buy the domain name on Sedo, the online domain name marketplace. Claiming that it did not receive the domain name after tendering the purchase price, plaintiff sued in Arizona, the state of its principal place of business. Lewis & Lin opposed, arguing that its client, a resident of Lebanon, did not have sufficient contacts with Arizona related to the case to support the exercise of jurisdiction over him.
Plaintiff asserted that our client purposely availed himself to the privilege of doing business in Arizona by (1) registering the domain name with GoDaddy, which is based in Arizona; (2) engaging in contract negotiations with plaintiff, who was based in Arizona; and (3) engaging in various post-complaint activities after knowing that plaintiff was based in Arizona.
Lewis & Lin argued that none of these contacts satisfied the inquiry required to assert jurisdiction over the defendant. First, the registration of the domain name with GoDaddy was not a “but for” cause of the lawsuit. Second, the defendant could not be said to have “purposely availed” himself to Arizona by negotiating through Sedo’s double-blind sales platform. And third, the lawsuit did not arise out of the alleged post-complaint activities.
The court agreed with Lewis & Lin on all of our points. In a nine-page opinion, the court ruled that the plaintiff “has not shown a likelihood of success on the merits or the existence of serious questions because Defendant is not subject to personal jurisdiction in this Court.” The case is Inter123 Corporation v. Ghaith, 2014 WL 1343508, No. CV-14-00463 (D. Ariz. Apr. 4, 2014).