MUDDUSETTI V. PAX ASSIST, INC.
July 29, 2024
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On May 29, 2024, the District Court for the Southern District of Texas, Houston Division granted defendant Pax Assist’s motion to dismiss. This dispute stems from an incident that took place at John F. Kennedy International Airport. After arriving on a United Airlines flight, a passenger fell and sustained injuries while being transferred via a wheelchair operated by an alleged agent company of United Airlines. As a result, the passenger sued both United Airlines and Pax Assist in the state of Texas. Pax Assist, the wheelchair service company who allegedly harmed the customer, filed a motion to dismiss, arguing that the Court did not have personal jurisdiction. The Court agreed, explaining that the venue is improper because Pax Assist is incorporated in New York, had no contacts with Texas, and did not consent to being sued in Texas. The Court also clarified that although an agent company’s actions usually impute to the principal company, the principal company’s minimum contacts cannot establish jurisdiction over the agent company. However, instead of dismissing the passenger’s claim for lack of jurisdiction and improper venue, the Court recommended that the case be transferred to the proper venue, the Eastern District of New York, which was accepted by the Federal Judge and transferred on June 26, 2024.
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