ADAM TECHNOLOGIES LLC v. DONGGUAN WELL SHIN ELECTRONIC PRODUCTS CO., LTD.

CourtDistrict Court, D. New Jersey
DecidedAugust 13, 2019
Docket2:18-cv-10513
StatusUnknown

This text of ADAM TECHNOLOGIES LLC v. DONGGUAN WELL SHIN ELECTRONIC PRODUCTS CO., LTD. (ADAM TECHNOLOGIES LLC v. DONGGUAN WELL SHIN ELECTRONIC PRODUCTS CO., LTD.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ADAM TECHNOLOGIES LLC v. DONGGUAN WELL SHIN ELECTRONIC PRODUCTS CO., LTD., (D.N.J. 2019).

Opinion

Not for Publication UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

ADAM TECHNOLOGIES LLC, Plaintiff, Civil Action No. 18-cv-10513

y OPINION

WELL SHIN TECHNOLOGY CO., LTD.; DONGGUAN WELL SHIN ELECTRONIC PRODUCTS CO., LTD.; WELL SHIN USA; and XYZ Companies 1-4, Defendants.

John Michael Vazquez, U.S.D.J. This matter comes before the Court on the motion to dismiss filed by Defendants Well Shin Technology Co., Ltd. (“Well Shin Taiwan”); Well Shin Electronics Products Co., Ltd. (“Dongguan Well Shin”); and Conntek Integrated Solutions, Inc. (improperly named as “Well Shin USA”)! (individually “Conntek” and collectively “Defendants”). D.E. 11. Plaintiff Adam Technologies, LLC (“Adam Tech”) filed a brief in opposition to the motion (D.E. 27), to which Defendants replied (D.E. 28).” For the reasons set forth below, Defendants’ motion is GRANTED IN PART and DENIED IN PART.

' Defendants explain that although Plaintiff named “Well Shin USA” as a Defendant in its complaint, to their knowledge, there is no such entity by that name. Defendants continue that the two addresses that Plaintiff attributes to Well Shin USA correspond with Conntek Integrated Solutions, Inc., which is a subsidiary of Well Shin Taiwan. Def. Br. at i n.i. 2 In this Opinion, Defendants’ brief in support of their motion to dismiss (D.E. 11-1) will be referred to as “Defs. Br.”; Plaintiffs brief in opposition (D.E. 27) will be referred to as “Pif. Opp.” and Defendants’ reply (D.E. 28) will be referred to as “Defs. Reply.” On November 30, 2018, Plaintiff filed a second opposition brief. D.E. 32. There does not appear to be any differences

I. BACKGROUND? AND PROCEDURAL HISTORY Adam Tech is located in Union, New Jersey, and is a manufacturer and seller of specialized electronic components made or produced by its Taiwan branch, Adam Technologies Int., Ltd. Adam Tech had a contract with General Electric Appliances (““GE”) to design and create a custom connector for a wire harness to be used for GE washing machines and other appliances. Compl. { 2, D.E. 1. On or about July 29, 2014, Conntek executive Mack Davis contacted Adam Tech via email and telephone calls. Mr. Davis’ contact allegedly pertained to the purchase of the custom connector for “Well Shin USA,” and Conntek’s involvement in the GE project. Declaration of Vincent De Vito (“De Vito Decl.”) 2-3, D.E. 27-1. Mr. Davis informed Plaintiff that he was part of the “WellShin Group,” which includes Wellshin Taiwan,’ Dongguan Wellshin, and several offices in the United States. Jd. | 2. Mr. Davis’ email address is “mack@welishinusa.com.” □□□□ Ex. B. Dongguan Well Shin is based in Guangdong, China and also incorporated there.

between the November 30, 2018 submission and Plaintiff's initial opposition brief so the Court does not consider the November 30 filing. Then on December 3 and 4, 2018, Plaintiff filed what appears to be two copies of the same sur-reply brief without leave of Court. D.E. 33, 34. Sur- replies are not permitted without first obtaining leave of court. L. Civ. R. 7.1(d)(6). “Accordingly, the Court typically will not consider sur-replies that parties have filed without seeking and receiving leave to do so.” Roofers’ Pension Fund vy, Perrigo Co., PLC, No. 16-2805, 2017 WL 3579208, at *3 (D.N.J. Aug. 18, 2017). Because Plaintiff failed to obtain the necessary leave, the Court will not consider Plaintiff's sur-reply. 3 The factual background is taken from Plaintiff's Complaint (and attached exhibits) and the parties’ declarations submitted in connection with this motion to dismiss pursuant to Rule 12(b)(2). See Dayhoff Inc. v. HJ. Heinz Co., 86 F.3d 1287, 1302 (3d Cir. 1996) (“In deciding a motion to dismiss for lack of personal jurisdiction, we take the allegations of the complaint as true. But once a defendant has raised a jurisdictional defect, a plaintiff bears the burden of proving by affidavits or other competent evidence that jurisdiction is proper.” (internal citations omitted)). 4 Well Shin Taiwan is incorporated and based in Taipei City, Taiwan. Declaration of Tim Liu □□ 3-6, D.E. 14. While named as a Defendant, Wellshin Taiwan’s involvement in the alleged wrongdoing is not clear from the allegations in the Complaint.

Declaration of Ouyang Dong {ff 4-6, D.E. 15. Conntek is incorporated, and has its principal place of business, in Wisconsin. Declaration of Drew Sying Liu {4 3-4, D.E. 11-2. Conntek also appears to have a factory in Kentucky, in addition to offices in California, Wisconsin, Kentucky and Tennessee. De Vito Decl., Ex. D. As the connector was a custom design, Adam Tech CEO Vincent De Vito informed Mr. Davis that certain non-Disclosure and non-Compete terms had to be met before further conversations occurred. /d. 4. Mr. Davis agreed and indicated that he would confirm that his Wellshin colleagues in China and Taiwan accepted the terms. /d. In furtherance of such an agreement, Mr. De Vito went to China, toured the Dongguan Wellshin facility and met with three employees. /d. [5. While in China, Mr. De Vito emphasized that Adam Tech had to protect its intellectual property and sought to ensure that Wellshin would not compete or use the information against Plaintiff with respect to the GE project. /d. Plaintiff alleges that Dongguan Well Shin’s Vice President of Sales, James Ouyang, suggested a written agreement, which would be enforceable in New Jersey, to allay Plaintiffs fears. Jd. { 6. Mr. De Vito drafted the Non-Disclosure/Non-Compete Agreement (the “Agreement”) upon his return to New Jersey. Mr. De Vito sent the Agreement to Mr. Davis, who forwarded it to a Wellshin legal representative, Jui-Hsiung, who was presumably located in China, for signature. Mr. De Vito received an executed copy of the Agreement from Mr. Davis. fd. § 6, Ex. C. Subsequently, Dongguan Well Shin began sending purchase orders to Plaintiff who then sent mass quantities of the connector directly to Dongguan Well Shin. /d. 97. Dongguan Well Shin continued to purchase the connector from Plaintiff for approximately two years. Compl. § 23. In 2017, Dongguan Well Shin began to complain about the quality of the connector and allegedly refused to pay for delivered stock and outstanding invoices. /d. §24. Adam Tech alleges

that these were false and unsubstantiated claims. fd. {J 24-25. Adam Tech appears to allege that Dongguan Well Shin began making the false claims because it was manufacturing the connector part itself or through other vendors or manufacturers. Jd. | 26. Adam Tech subsequently brought suit, asserting claims for patent infringement, breach of contract, Lanham Act violations, and New Jersey unfair competition violations. In response, Defendants filed this motion to dismiss for lack of jurisdiction, insufficient service of process, and failure to state a claim. D-.E. 11. Il. ANALYSIS A. Lack of Personal Jurisdiction 1. Legal Standard Defendants bring their motion in part pursuant to Fed. R. Civ. P. 12(b)(2), which permits a party to move to dismiss a case for lack of personal jurisdiction. In such a motion, the plaintiff bears the burden of demonstrating “sufficient facts to establish that jurisdiction is proper.” Mellon Bank PSFS Nat'l Ass’n v. Farino, 960 F.2d 1217, 1223 Gd Cir. 1992). In reviewing a motion to dismiss for lack of personal jurisdiction, a court “must accept all of the plaintiff's allegations as true and construe disputed facts in favor of the plaintiff.’ Carteret Sav. Bank, FA v. Shushan, 954 F.2d 141, 142 n.1 (3d Cir. 1992).

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ADAM TECHNOLOGIES LLC v. DONGGUAN WELL SHIN ELECTRONIC PRODUCTS CO., LTD., Counsel Stack Legal Research, https://law.counselstack.com/opinion/adam-technologies-llc-v-dongguan-well-shin-electronic-products-co-ltd-njd-2019.