Sierra Nevada Holdings, Inc. v. United Leasing Corporation et al

Filing 17

ORDER GRANTING IN PART and DENYING IN PART Ds' 4 Motion to Dismiss for Lack of Jurisdiction, or in the alternative, Motion to Transfer Venue : Ds' motion to dismiss is denied. Ds' motion to transfer to the United States District Court for the Eastern District of Virginia is granted. Signed by Judge Robert C. Jones on 7/15/2010. (Copies have been distributed pursuant to the NEF - DRM)

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at r a ie Mo in t Tr n f rVen e ( 4)fld b De en a t Uni d L asn Coror t n le n t , t o a s e v o u # i y f d n s t e ig p a i e e o (unied Leasig' and Edwar H. Shil (i hil't ol ct el rf red t her i as 't I n' ) d ed ' ed' c l i y e e r o en s l ev d een ans'on Mar h 1 , 0. Plit f e r Nev d Holig ,n . ' ira Ne a a' ' f d t' D ) c 5 201 an i Sira a a d n s Ic (s e r v d ' f I )
fld an Opposiin ( 11)onAprl14,2010,and Def ndant fld a Repl ( 14)on May3, i e to # i e si e y#
2010.

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Sierra Nevada Holdings, Inc. v. United Leasing Corporation et al Doc. 17

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The Cour hear or lar um enton t e m ateron June 11,2010,and now gr nt t e t dag h t a sh
M oton t Tr nsf rVenue. ioae

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BAC KG RO UND
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T hi case i vol es sever l r ud bas d cl i s arsi g fom a l an tansacton ent r d s nv a fa e am in r or i ee

it bewe n Plit an Deen an Untd L asng. Plit f i d a Compan ( 1 i t i no t e an i d f d t i e i l e an i fl fe lit # ) n hs
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acton on Januar 25,201 . Acc r i g t t e al gatons i t e Compl i t Pl i tf 's and i y 0 odn o h l i n h e a n , a n if ' i
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l m at ral her t , a c r or ton or ani ed under t e I w s of t e St t of Vigi i w ih is ei eo o p ai gz ha h ae r na t t 2 prnci alpl ce ofbusi ess I cat d i t e St t ofVigi i . .1sDe e d n Sheddsan wa , ip a n o e n h ae r na' # ' f n a t il ' d s i 3 atal tm es m at ralher t ,a r si entand cii en of and dom i i d i ,t e St t ofVigi i , Ii ei eo e d tz , cl n h e ae r na

4 andwasg nied Leasig'!Pr sient' .= ut n s e d . 1. 'j 5 Plitf al gest att e Coul hasj rs iton overt i materpur uantt 28 U. . . a n if l e hh ' t u idc i hs t s o SC 6 j 1332'nt att e amounti contoveryexc eds$75,00. 0'and 's bet eenciiensof 'h h i n rs e 0 0' ' w i tz 7 dif r nt s at s. 1sa 2. I a dion,Pli tfal ge t a v nu i p op ri t i dsr t fe e t e ' # t ' ndt i a n i l s h t e e s r e n hs iti fe c
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13 helcopt rw hi h needed a subst ntalover auland r f r i hm ent i or ert per or w or ie c ai h e u bs ndo fm k

1 f rt e Unied St ts For stSer ie. J. The costf rt eover auland rf r ihmentwas 4oh t ae e vc ' .. '4 oh h e u bs 1 appr xi at l $1, 00, 00, Pl i tf needed a I ant fnancet ewor .Pl i tf s at st at 5 o m e y 3 0 and a n if o oi h k a n if t e h

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1 prorbusi es deal g w ih Unied Leasi g,Pl i tf st t s t ati and i prnc pal Jon M ay r 7 i ns i nt t n a n if a e h t t ii , s e

1 (May r) dep s d s e ilr s an r l nc 'i Shil an Unt d L a ig..= 8 d e ',d o e p ca tu t d ei e'n ed d i e sn ! . d 'r a e # 1 9 Ac or ig t t e Complit 'in a t l phone c nveraton i eary 2005,Shi l (n c dn o h an , l l ee o si n l ed i
20 Vigii )spok t lphonial wih Sira Nev da' prncial Jon Mayer( ho i and was r na e ee c l t er y a s ip, ws 21 lcatdi Reno) idiat dt athe( hil)coul pr babl secur Ianfnancigf r i ra o en and n c e h S ed do y eo i n o ser 22 Nevada atei htper ent' 1. The complitassel t a a mont It r Shil t l May r g c .' j. la an ' ht t s h ae , ed od e
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i N evada. However t e Cour not s t at Pl i tf di pr vi e cvl ence of addii nalt l phone n ,h t eh an lf d o d d to ee w hle M ayerwasl cat d m Reno,N evada. l oe
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1 sever l occasi ns. I . l addii n,Pl i tl assers t at is r pr sen atves d pecii al a o 'd n to a ni t h t e e ti ' s fc l y 2 advi ed Def ndant t att e helcopt rwas f rUnied St t s For s Sen/ce oper tons but s e sh h ie o t ae et i ai 3 was on a st ndby capaciy untl cont act as s cur d , w hi h tm e any t m por r I an f om a t ia rw e e at c i e ay o r 4 Def ndant w oul be r fnanc d w ih a per anent I w er r t I an. I . Pl i t fst t s t at e s d ei e t m ,o - a e o ' d a n i a e h ' f

5 durng t i tm e, el madever al at m ent t Pl i tf' prnci alMayer t t e efect hat i h s i Shi d b st e s o a n if i p , s ,o h f t
6 Shi l ' oul t ke car or'Pl i tf,and so Pl i tf di contnued negotatons w ih ot er ed ' w da e a n if a n if s i ii th

7 pot ntalI nder and I ok d t Def ndan s t fnance t e I an. I . eie s oeo e t oi ho d 8 Ac or i g t Pl i tf, he I an pr cess w ih Def ndant ' r gged on f rm ont s, and c d n o a n if t o o t e s' a d o h' '

9 ev nt al t e i t r str t was r i ed t 15. 50 . I .at4. I addii n,Pl i tf asser s t at e u l h n e e ae y as o 1 : d n to a n if th
10 Def ndant neveradvi ed Pl i tf t ati woul have t pay any ' esi ual or' ary paym ent e s s a n if h t d o 'd''l r 'e

l1 penali s.z I te h d ' 1 2 I 2007, ai tf ' ecur d a fr fghtng cont act ih t e Uni d St t s For stSer i e n Pl n if' s e ie i i r wt h t e ae e vc

1 and,based upon t e guar nt ed i com e was abl t secur r gul rbank fnanci g atm or 3 h ae n eo ee a i n e
14 com pettve m ar etr t s. l .at5. As a r sul,one ofPl i tf s r pr sent tves ' ont ct d ii k ae ' d et a n ir e e ai ' ae c 15 t e Def ndant vi an i t r t t t l phone cal t advi e t em of Si r a N evada' new h e sa n e sae ee lo sh er s 16 fnanci g and is desie t pay- f t e out t ndi g I an bal nce.' I . A ccor i g t t e i n t ro of h sa n o a 'd dn o h

1 com pl i t dur ng a seres of t l phone cal r gar i g t e pay- f i sue, Def ndant 7 an , i i ee l e dn h s ofs e s 1 dem anded a subs antalpay- f penaly. Pl i tg s at s t ati pr t st d t e pay- f penal , 8 ti of t an i t e h t oe e h of t y

1 buthatheparisuli at l setldonademandof$285,08,3.Plitsas erst atihad 9 tt te tm e y te 53 an i s t h t
20 no choi e butt pay t i am ountot er i e Unied Leas ng woul notr l as t e Ien i hel c o hs h ws t i d ee e h i t d 21 agai s t e helc pt r t er by causi g cancel ton ofPl i tf' new , ow er r t l an . I .at n th io e , h e n li a an i s f I -a e o d
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23 24 aPl ai tf sc om pli talegcst atUnied Leasngw ass fcrngf anci l i culi sbet ee zoos n ir an l h t i ur i m a d o te w n

2 a d2 0 . Asarsl Plitfasrsta Dee d nstace ash mewhrb te d cd dt 5 n 07 eut ani sek h t fn at t thd c e j ft ,h eey h y eie jo snlt r tela t ( litfla a e uime tla e be a s ta sr cur e tte te t de v t cu e h o n o anir s n q p n e s c u e h t tu t e nild h m o r e ;5 c rantxa dohrma caa vna e. l.Plitrsctta S ilifn e Mae ta bc ue ! eti a n tef n ild atg s' d ani asrsh t hedno n d yrh t ea s t ' f
27 i cl di g avenuepr vi l n whi h s at d t atany actonsi lw orequiyr ltng t t eI as s oul be nu n o so c te h i na t ea i o h e e h d com m enced andm ai t i edilkheGener lDit itCour orCicui Cour f rHanove Count , igi i n an r : t a s rc t rt to r y V r na

t e ta s ci n wa sr jt r d a a $ea e, Pli tf c ul inor t e ; onta ts b ie plt tr s, h r n a to s tu u e s l s ,, an if o d g e h ç r c . o lr a e e m y, c ,

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2 faudul nt r e conceal entf l e pr m ie/ c nom i dur s , r ud/ i r pr sent ton, onst uc i e m ,a s o s e o c e s fa m s e e ai c r tv 3 faud ,ci i ex ori n,c nver i n,and ci i RI O r gar i g t e I an tansac i n and pay- f r v l t to o so vl C e d n h o r to of 4 penal , t y
5 Def ndant have now fl d a M oton t Di m i s f rLack ofPer onalJursdi ton,ori e s ie iosso s i ci n

6 t ealer atve,Motont Tr nsf rVenue( 4) Accor igt Def ndant ,he cai sassered h tn i ioae #, dn o e st lm t

7 agaisttem shoul bedimisedpur uantoRul 1 ( )2) nh d ss s t e 2 b ( becauset ec mplit'sdev i h o an i od

8 o an f c u l lg t n t a e t bl hp r o a jrs ito o e et er ef n a t' ( o in f y a t a al a i s h t sa i e s n lu idcin v r ih d e d n . M t eo s ' o 9 t Dimis ( 4)at3) Mor over Def ndant st t t atneiherUni d L asig norShil o ss# . e ,e s ae h t t en e ed 1 ' aveanycont ct wih Nevadat atwoul jstf t eass din ofper onalursditon, . s 0' h as t h d u iy h eo s j i ci ' ! . (
l1 at 3, I t e aler atve,Def ndant seek an or er tansf r i g venue t t e Unied St t s nh tn i e s d r e rn oh t ae

1 D i ti tCour f rt e Eas er Di ti tofVigi i . .$.at De e d n sn t ta b t Uni d 2 s rc to h t n s rc r na . 4. f n a t o e h t c h t e 1 Leasi g and Shi l ar r si ent ofV igi i . Def ndant f rher not t atPl i tf i a New 3 n ed e e d s r na e s ut eh a n if s 1 Ham ps ie cor or ton, and was neiher r gi t r d nor qual i d t conduct busi es i 4 hr p ai t e se e ie o f n sn

l Ne a a a te r lva tt e, vn Ne ad v r lt it r s i t i dipu e,!.a 4- . 5 v d t h ee n i giig v a e y i l ne e tn hs s t # t 5 m te
1 6 l r sponse, aitfasserst atperonalursditonexit overDef ndant because ne Pl n if th s j i ci ss e s
l Shi l ,' er onaly and on behal ofUnied Leasi g . . ade a num berof i r pr sent tons, 7 ed p s l f t n ,m m se e ai

1 omi si ns and ext ri ns i muli l t l phone cal ,m aii gs and e- ais wih M r Mayer 8 so o to n tp e e e l s l n ml t .

1 whie( ayer r sied, wasIcat d i,Nevada. ( pposiint Motont Dimis( 11) 9 lM ) e d and oen 'O ' to o i o s s # 2 at2) l addiin,Plit:as erst atdespiet eal gatonsi t ec mplitt atPlitf i 0 . n to an i s t h t h l i n h o a n h an ifs e
21 a New Ham pshie cor or ton, Pl i tf i ac ualy a r si e nt of Nevada:' i ra Nevada, r p ai a n if s t l ed Se r 22 alhough i cor or t d i New Ham pshie and m ai t i i g a m er ofi e pr senc t er i t n p ae n r n a nn e fc e eh en

2 or ert c m py wi Ne Hamp hi Iw,i acu l a Nev da r sde t( rct e )a i 3 d oo l t w h s r a s tal e y a e i n o iz n s t i s
24 ' el e c nt r and t usprnci alpl ce ofbusi ess,i I cat d her .3 1aPlitfas a g e n ' e e' v h ip a n so e e ' # a nif lo r u s
.

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28 t a t i wy ame eç ve sg t'a dr gitr dwiht eNe a aSe r t r ofStt i 201 bef r fln h t h s s r i rih , n e se e t h v d c e a y o ' ae n 0 o e i g i
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1 t att e c se shoul not be tans ered t Vigi i because i woul be iconveni ntf r hha d r f r o r na t d n eo
2 Pl i tf s prnci al M ayer t tavelt Vigi i fom Nevada t I i at t e cl i s. a n ir i p , ,o r o r na r o ig e h a m t 3 As w i be di cussed i t e f l w i g, he Cour fnds t ati i appr prat t t ans ert i l l s n h ol n t o ti h ts o i e o r f hs

4 case t t e Unied St t s Di t i tCour f rt e East r Di ti tofV igi i , oh t ae s rc to h e n s rc r na 5 D I C U SS I N S O

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8 w her i m i hthave been br ught' Ac or i g t t e Unied St t s Supr m e Coul,secton et g o . c dn o h t ae e ' t i

f 1 O4( )'sit nded t plcedicr toni t edititcour t adjdiat motonsf rtanser ) 4 a ' ne i o a s e i n h src to u c e i o r f
1 accor i g t an d di i ual ed,c se- y- ase consi er ton ofc nveni nce and f iness.' 0 dn o i vd i n z a bc d ai o e ar '

l Stwa t q.Ic. . c hCo p.487U. . 2, 9( g 8lqu tn Va Du e v. r c , 6 j e r Or ,n v Rio r , S 2 2 l 8 t o ig n s n Bara k 37 1 U. . 2, 2 ( 9 4).A mo int tan f ru d rs cin 1 O ( )'al ont e dsr tc u 2 S 61 62 1 6 ) to o r se n e e t 4 4 a ' l h iti o d o cs c 1? t w ei h i t e bal nce a num berofcase- pecii f ct r , !z I t eNit Cic i,h fcor o g nh a s fc a o s ' # .n h n h r utt e a t s 1 t consiericlde:( )te Ic ton wher te r lvantagr ement wer negotat d and 4o d nu 1 h o ai e h ee e se ie l e ec td,2)hesaet a i mos f m iar t t eg v r igIw,3) h pan i sc oieo 5 x u e ( t t t h ts t a l wi h o e nn a ( t e lit r h c f ih f 1 f r m,( )t e r spectve paris'c nt ct wih t e f r m,( )t e cont ct r ltng t t e 6 ou 4 h e i te o a s t h o u 5 h a s eai o h
.

1 plitf c u e o a t n i t ec os nf r m ,6)t edier n esi t e c sso lia in i 7 a ni ' a s f ci n h h e o u ( h f e c n h o t f ig t n fs o f to ) t e t o f r ms ( )t e a albit o c m p lo ypr c s t c mpe at n a c o un iig g h w o u , 7 h v i ly f o us r o e s o o l t d n e f w ln ai e l 1 non- ady winess s,and ( ) t e ease ofacc ss t s ures of pr of Jones v.GNC 9 p te 8h e ooc o.
at Fr nchiig,ncs211F.d495, 99( t Ci, l a sn I , 3 498- 9 h r2000) Addiinal ,tepr senc ofaf r m , to l 'h e e y ou zj selcin cluse i a 'iniiantf cor i t e cour' secton 1 O4( )analsi. .s(iig e to a s sg fc a t 'n h ts i4a y s' 1 ctn . ( 22 Stwar, U. . 29) e t487 S at .
2 3 I t i c se,upon a r vi w oft e af r m entoned f ct r ,t e Cour fnds t att e n hs a ee h oe i a os h ti hh
: Unied St t s Di t i tCour f rt e East r Di t i tofV igi i i t e mostappr prat f r m 4 t ae s rc to h e n s rc r na s h o ie ou

2j f rt i ac i n. Def ndant have s ow n t atVigi i i t e mostconveni ntf r m based on o h s to e s h h r na s h e ou
26 t e ease ofac es t w iness s and evi ence, wel as t e r spectve pari s cont c s wih h c so t e d as l h e i te at t gy Vig i i . I t i r gar ,tappear t ataI t e r l vantw inesses,besi es Pl i tf' prnc pal r na n hs e d i sh Ih ee t d an i s i i f

2g Mayerar Icat di Vigii .I addiin,hecontac wasexecutdi Vigii and i subec , e o e n r na n to t rt e n r na s jt
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l t a f r m sel cton cl use pr vi i g t atcl i s arsi g undert e I ase agr em entm ay be o ou ei a o dn h am in he e 2 br ughti t e c urs ofVigi i . o nh o t r na

3

Al oughPlitf' ch ieoff r m i Nev da, t h an i s o c o u s a NevadahasIteit r sti adjdiatng f il ne e n u c i t

4 t e m ert oft i di put . Fist t e pari s ar notcii ens of N evada, Second,Pl i tf h i s hs s e r ,h te e tz 4 a n if 5 c ncedest atiappr ac ed Def ndant i V igi i t i ii t t e busi esstansacton en er d o ht oh e s n r n a o n ta e h n r i te
6 i t bet een t e pari s. Thid ,t e helcopt ratt e cent roft e I ase agr em entw as not no w h te rh ie h e he e

7 I cat d i Nevada durng t e c ntactnegotatons and ex cuton. I f c , he pur ose of he o en i h or ii ei n a tt p t 8 I as agr em entw as t fnance r pais t t e hel opt roccur i g i Canada -notNev da. ee e oi e r oh ie c rn n as 9 A s such, based on t e f r goi g, he Coud fnds t at ort e conveni nce oft e pari s h oe n t i hfh e h te

l andwiness s,and i te it r s ofjsie,t i case shoul be tanseredt t e East r 0 te n h ne e t u tc hs d r fr oh en
11 D i t i tofVigi i , s rc r na 1 2 l 3 C O N C LU S I N O For t e f r goi g r asons,I I O R D E R E D t at Def ndant 'M oton t D i m i s f r h oe n e TS h e s i osso

1 Lac of PeronalJursditon,or i t e aler atve, Moton t Tr nsf rVenue (/ ) i 4 k s i ci n h tn i ioae /4 s
1 G R A NT E D I PART and DEN I D I PART. Def ndant 'm oton t di m i s i deni d. 5 N EN e s i osss e
1 D ef ndant 'm oton t tansf rt t e Unied St t s Di ti tCour East r Di ti tofVigi i 6 e s i or e oh t ae s rc t e n s rc r na

1 i gr nt d , 7 s ae l 8
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4pl i tf- l i st ati i now acii enofN evadabecaus ispri ci al l ce ofbusnes i Re o. a n ilc a m h t s tz e t n p pa i ss n

24 Howe e ,a t etm et ealge urllf l ve t o c re 7Plitf wa notr yitr dwiht eNe a a v r t h i h l d ta u e n s c u r d an i s e e se e t h v d Se r t r ofStt a et e a e tt mco por t d i Ne a aora e tt r glt r d t d b sne si c ea y a e s ih r n n ly r a e n v d n n i e se e o o u i s n y 25 Ne a a Plitf di n tr git rwih teNe ad Se r tr ofS a eu tl i 7 201 -t r ewee s v d . an if d o e se t h v y c ea y t t n lAprl , 0 h e k

atrDee da t fldtermotont dimisi tl matr ( pp stont Motont Dimis( l1 a fe fn n s i h i i o s s n hs te . O o ii o i o s s # ) t e 26 Ex.l p.2) ,.

11

5Plitfsatsta Ne a aha a itrs i tesbe t te ofhiltgainbe a s Plitt anir t c h t v d s n nee tn h u jc matr t sii to c u e anir :
tmet el a ta s ginoc uredi 20 5.( omplit( 1 a 5) l wan'untl200 ta Plitf l h o n rn a to c r n 0 C an # ) t . t s t i 7 h t anir
's cur d a fre fghtng cont actw ih t e Unied St t s For stSe vi e' t use t e helcopt r ilt e 'e e lil r th t ae e r c 'o h i e rh N evadar gi n. I . eo d
6

it n q t us t eheio t ri Ne q aunde agove une tc n r c t fghtf r s fr s Howe e , n e d d o e h lq p e p v d r n n o ta t o i o e t ie . vr 28 y c r lgt t ec mplmt Plm tf dl no ha eac n r c wiht eUniedSt t sFor s Se viea t e c o dn o h o a , a if d t v o ta t t h t ae e t r c t h