R&B Splicer Systems, Inc. v. Woodland Industries, Inc.
Filing
21
Judge George A. OToole, Jr: OPINION AND ORDER entered. I conclude that this Court lacks personal jurisdiction over the defendant. Since there is a genuine controversy that needs resolution, rather than dismiss this case and force a refilling in Geor gia, alternate relief is appropriate. This case shall be transferred forthwith to the Northern District of Georgia, pursuant to 28 USC Sec. 1404(a). Motions terminated: 6 MOTION to Dismiss for Lack of Jurisdiction filed by Woodland Industries, Inc..(Lyness, Paul) [Transferred from Massachusetts on 3/26/2013.]
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
CIVIL ACTION NO. 12-11081-GAO
R&B SPLICER SYSTEMS, INC.,
Plaintiff,
v.
WOODLAND INDUSTRIES, INC.,
Defendant.
OPINION AND ORDER
March 26, 2013
O’TOOLE, D.J.
This case arises out of a contractual dispute between the two parties. The plaintiff, based
in Avon, Massachusetts, is a manufacturer of machinery that automates the process of splicing
paper together. The defendant manufactures asphalt-saturated felt in Griffin, Georgia. Defendant
has moved to dismiss pursuant to Rule 12(b)(2) and Rule 12(b)(3) of the Federal Rules of Civil
Procedure for lack of personal jurisdiction and improper venue, respectively.
The relevant history of the controversy is this: In 2009, the defendant’s president
contacted the plaintiff seeking to purchase a splicer and roll stand for his manufacturing facility
in Georgia. The facility employs approximately 25 people and its products are sold to customers
in the Southeast and Midwest United States. The plaintiff’s president, Ernest Rowe, traveled to
the plant in Georgia to meet with defendant and see the machinery. After his visit, the parties
negotiated by phone a contract for the purchase of two splicers; they sent documents back and
forth to each other by mail. Their contract specified that defendant was responsible for arranging
the shipment of the machinery to its plant and paying for any local contractors necessary to
install it.
After installation, the machinery did not function properly. As a result, Rowe traveled to
Georgia frequently to try to fix it. Between January 2010 and June 2012, Rowe spent
approximately 80 days in Georgia servicing the machinery. Ultimately, the plaintiff did not get
the equipment function to the contract’s specifications. As a result, the defendant requested a
refund of the payments for the machinery. The plaintiff declined to refund the payments and
instituted the present action for breach of contract in this court.
The exercise of personal jurisdiction over a defendant must be authorized by the
Massachusetts Long Arm Statute, Mass. Gen. Laws ch. 223A, § 3, and must be consistent with
the requirements of due process. United States v. Swiss Am. Bank, Ltd., 274 F.3d 610, 618 (1st
Cir. 2001). The plaintiff bears the burden of establishing personal jurisdiction over the defendant.
Daynard v. Ness, Motley, Loadhold, Richardson & Poole, P.A., 290 F.3d 42, 50 (1st Cir. 2002).
The scope of the Massachusetts long-arm statute is construed as “coextensive with the
limits permitted by the Constitution.” Adelson v. Hananel, 652 F.3d 75, 80 (1st Cir. 2011).
Accordingly, the relevant analysis is the constitutional test for specific jurisdiction. To determine
if the exercise of personal jurisdiction comports with due process, the plaintiff must establish
three elements: (1) relatedness, (2) “purposeful availment”, and (3) reasonableness. Hannon v.
Beard, 524 F.3d 275, 282 (1st Cir. 2008).
There is no question that the controversy is related to the contract between the parties,
which is the only basis for the defendant’s contact with Massachusetts, but the other two
requirements are not met.
A single commercial contract is often not sufficient to establish purposeful availment of
the forum state. See Bond Leather Co. v. Q.T. Shoe Mfg. Co., Inc., 764 F.2d 928, 933 (1st Cir.
1985). That is the case here. The defendant wanted to buy machinery for its plant in Georgia. So
2
far as appears from the facts proffered by the parties, it was a matter of complete indifference to
the defendant whether the supplier of the desired machinery was located in Massachusetts or
elsewhere. The only “business” the defendant proposed to “transact” in Massachusetts was to
send payment for the machinery to the plaintiff here.
In any interstate transaction, it is
conceivable that one party might later invoke the jurisdiction of the courts in the State where the
other party is found, but that mere possibility cannot be enough to justify a conclusion of
“purposeful availment.” Rather, the “availment” must be “of the privilege of conducting
activities in the forum state, thereby invoking the benefits and protections of that state’s laws and
making the defendant’s involuntary presence before the state’s courts foreseeable.” Northern
Laminate Sales, Inc. v. Davis, 403 F.3d 14, 25 (1st Cir 2005) (quoting Whittaker Corp. v. United
Aircraft Corp., 482 F.2d 1079, 1089 (1st Cir. 1973)). An out of state defendant must be an active
participant rather than a mere passive purchaser, who does no more than “place an order with an
out of state merchant and await delivery.” Bond Leather, at 933. In this case, the defendant did
not solicit, regularly visit, or supervise the plaintiff during the manufacturing process. To be sure
there were interstate communications by phone and mail, but no representative of the defendant
ever visited Massachusetts. The parties’ contract was drafted by the plaintiff and sent to the
defendant in Georgia, where it was accepted by the defendant. All personal meetings between
company representatives were conducted in Georgia.
The so-called “gestalt factors” also argue against subjecting the defendant to this Court’s
jurisdiction. Because of its incidental connection with the controversy, Massachusetts does not
have an especially strong interest in adjudicating this dispute. There is no doubt that there would
be a significant burden placed on the defendant to marshal its defense here, as opposed to
Georgia. Most of the witnesses would be from Georgia, and it would be an imposition to require
3
them to travel to Massachusetts for trial. Moreover, this Court’s subpoena power could not
compel reluctant non-party witnesses resident in Georgia to appear here. The interest of the
judicial system in an efficient and effective resolution of the controversy counts against
Massachusetts as a forum.
Accordingly, I conclude that this Court lacks personal jurisdiction over the defendant.
Since there is a genuine controversy that needs resolution, rather than dismiss this case and force
a refilling in Georgia, alternate relief is appropriate. This case shall be transferred forthwith to
the Northern District of Georgia, pursuant to 28 U.S.C. § 1404(a).
It is SO ORDERED.
/s/ George A. O’Toole, Jr.
United States District Judge
4
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?