Herbal Brands, Inc. v. Photoplaza, Inc., No. 21-17001 (9th Cir., July 5, 2023)(J. Graber) https://cdn.ca9.uscourts.gov/datastore/opinions/2023/07/05/21-17001.pdf
SALE OF PRODUCT IN REGULAR COURSE OF BUSINESS VIA INTERACTIVE WEBSITE AND DELIVERY OF PRODUCT IN FORUM CREATES PERSONAL JURISDICTION
Herbal Brands, an Arizona business sued certain New York residents for the unauthorized sale of its product to Arizona residents, via Amazon in violation of the Latham Act and Arizona State law. The Arizona District Court dismissed the matter for lack of personal jurisdiction. Then Ninth Circuit Court of Appeals reversed and remanded.
Applying the three prong test for personal jurisdiction the ninth circuit found that first, the defendants availed themselves of the benefits and protections of Arizona law by directly marketing to, selling and delivering product to Arizona residents through an interactive website, all within the regular course of the defendants' businesses.
Second, the alleged harm clearly arose out of defendants' contacts with Arizona.
Lastly, exercise of personal jurisdiction is reasonable under these circumstances.