Alaskan Brewing, LLC v. Peakaso Partners, LLC

CourtDistrict Court, D. Alaska
DecidedNovember 22, 2019
Docket1:18-cv-00016
StatusUnknown

This text of Alaskan Brewing, LLC v. Peakaso Partners, LLC (Alaskan Brewing, LLC v. Peakaso Partners, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Alaska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alaskan Brewing, LLC v. Peakaso Partners, LLC, (D. Alaska 2019).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ALASKA

ALASKAN BREWING, LLC, an Alaska limited liability company,

Plaintiff,

v. Case No. 1:18-cv-00016-SLG PEAKASO PARTNERS, LLC, a Colorado limited liability company, Defendant.

ORDER RE MOTION TO DISMISS THE COMPLAINT OR, ALTERNATIVELY, TRANSFER THE ACTION TO THE PROPER FORUM Before the Court at Docket 27 is Defendant Peakaso Partners, LLC’s (“Peakaso”) Motion to Dismiss the Complaint or, Alternatively, Transfer the Action to the Proper Forum. Plaintiff Alaskan Brewing, LLC (“Alaskan Brewing”) responded in opposition at Docket 29. Peakaso replied at Docket 32. Alaskan Brewing filed supplemental materials at Docket 33, which Peakaso did not respond. Oral argument was not requested and was not necessary to the Court’s decision. BACKGROUND On November 20, 2018, Alaskan Brewing, a limited liability company headquartered in Juneau, Alaska,1 initiated this action by filing a complaint for

1 Docket 1 at 2, ¶ 4. breach of contract against Peakaso Partners, a limited liability company headquartered in Denver, Colorado.2 The complaint alleged the following facts: In 2016, Alaskan Brewing began looking for an enterprise resource planning

(“ERP”) software system to help manage its business operations.3 In early 2017, Peakaso contacted Alaskan Brewing to offer the brewery its “Crafted ERP” system.4 After a Peakaso representative traveled to Juneau to demonstrate the software on March 14, 2017,5 the parties reviewed “the functionality Alaskan Brewing required” and worked together for several months “to describe and

prioritize the specific items Alaskan Brewing would need in its ERP system.”6 On June 12, 2017, the parties signed several agreements that govern Peakaso’s implementation of Crafted ERP for Alaskan Brewing:7 An initial Statement of Work (“SOW”) that sets forth Peakaso’s obligation “to provide advisory services for the implementation of Crafted ERP,” identifies the specific

functions and modules to be included in the software package, and lays out the costs associated with the software’s implementation, support, and maintenance;8

2 Docket 1 at 2, ¶ 5. 3 Docket 1 at 2, ¶ 7. 4 Docket 1 at 2, ¶ 7. 5 Docket 31 at 1–2, ¶ 3 (Decl. of Linda Thomas). 6 Docket 1 at 3, ¶ 10. 7 Docket 1 at 3, ¶¶ 11–12. 8 Docket 1 at 3, ¶ 11; see also Docket 31-2 (SOW). Case No. 1:18-cv-00016-SLG, Alaskan Brewing, LLC v. Peakaso Partners, LLC Order re Motion to Dismiss the Complaint or, Alternatively, Transfer the Action to the Proper a General Business Terms (“GBT”) document that “govern[s] the services provided by Peakaso”;9 and a Master Services Agreement (“MSA”) that incorporates the GBT and defines the parties’ relationship at a broad level.10 The Court will refer

to these three agreements collectively as the “Implementation Agreement.” The MSA provides that “this [MSA], including the [GBT] and any Exhibit(s) attached hereto, and any [SOW(s)] issued hereunder . . . contain the sole and exclusive terms and conditions that will govern the rights, responsibilities and obligations of the parties with respect to the Services[11] to be provided by Peakaso

to [Alaskan Brewing].”12 The GBT establishes an initial one-year term for the Implementation Agreement, but provides for automatic annual renewal unless either party gives 30-day written notice of its intent to terminate.13 Neither party gave notice of termination prior to June 12, 2018, so the Implementation Agreement automatically

renewed for a second one-year term.14

9 Docket 1 at 3, ¶ 12; Docket 31-1 at 6–9 (GBA). 10 Docket 1 at 3, ¶ 12; see also Docket 31-1 at 2–5 (MSA). 11 The MSA defines “Services” as “various systems, accounting, financial, risk management, or other consulting services . . . as [Alaskan Brewing] may request from time to time as more fully described in a written [SOW] agreed to and signed by the parties.” Docket 31-1 at 2. 12 Docket 31-1 at 2; Docket 1 at 3, ¶ 12. 13 Docket 1 at 3–4, ¶ 13; Docket 31-1 at 7. 14 Docket 1 at 4, ¶ 14. Case No. 1:18-cv-00016-SLG, Alaskan Brewing, LLC v. Peakaso Partners, LLC Order re Motion to Dismiss the Complaint or, Alternatively, Transfer the Action to the Proper The SOW established a “go-live date” of November 1, 2017 for the Crafted ERP system, but the system was not online by that date.15 Alaskan Brewing gave written notice of non-conformance to Peakaso, and the parties agreed to move the

go-live date to January 1, 2018.16 A version of Crafted ERP went live on January 1, 2018, but Alaskan Brewing maintains that it “did not meet the requirements set forth in the . . . [Implementation] Agreement.”17 Alaskan Brewing notified Peakaso that implementation of the software was deficient, but “the deficiencies identified by Alaskan Brewing ha[d] not been rectified” by the date the complaint was filed.18

The complaint identifies a “non-exhaustive” of 12 functions or modules “set forth in the SOW that have not been implemented or have only been partially implemented.”19 It seeks a “judicial declaration” that Peakaso has breached the Implementation Agreement by failing to deliver those modules and by assigning its responsibilities to a third party—Doozy Solutions, LLC—without Alaskan Brewing’s

consent.20 The complaint also seeks “an order compelling Peakaso to remedy its

15 Docket 1 at 4, ¶ 16; see also Docket 31-2 at 2 (“Peakaso has been engaged to provide advisory services throughout Client’s implementation of NetSuite and Crafted, with a targeted go-live date of November 1, 2017 for the initial phase . . . .”). 16 Docket 1 at 4, ¶ 17. 17 Docket 1 at 4, ¶ 18. 18 Docket 1 at 4, ¶ 18. 19 Docket 1 at 5–6, ¶ 24. 20 Docket 1 at 7. The complaint alleges that Doozy Solutions “had deployed a Crafted ERP release automatically in Alaskan Brewing’s system” in violation of the GBT’s provision that “[n]either party may assign or transfer this Agreement without the other party’s prior written Case No. 1:18-cv-00016-SLG, Alaskan Brewing, LLC v. Peakaso Partners, LLC Order re Motion to Dismiss the Complaint or, Alternatively, Transfer the Action to the Proper breach and deliver the deliverables set forth in the Agreement at its sole expense,” an “order compelling Peakaso to assign all right title and interest in the deliverables and the software,” and an award of “damages caused by Peakaso’s

breaches.”21 The complaint was brought pursuant to this Court’s diversity jurisdiction.22 It alleged that venue was proper in the District of Alaska pursuant to 28 U.S.C. § 1391(b)(2) “because a substantial part of the events and omissions giving rise to [Alaskan Brewing’s] claims occurred in this district.”23

As its first responsive filing, on July 12, 2019, Peakaso filed the instant Motion to Dismiss the Complaint or, Alternatively, Transfer the Action to the Proper Forum.24 The parties had executed a separate series of agreements on June 12, 2017, which were not mentioned in the complaint, to “govern the subscription

consent.” Docket 1 at 5, ¶¶ 20, 23; Docket 31-1 at 8. 21 Docket 1 at 7. 22 Docket 1 at 2, ¶ 2; see also 28 U.S.C. § 1332(a)(1). 23 Docket 1 at 2, ¶ 3. In a declaration filed in support of Alaskan Brewing’s opposition to the instant motion, Linda Thomas, the brewery’s CEO, states: Peakaso came to Alaskan in Juneau on at least seven occasions to implement its Crafted ERP software according to the specifications in the agreed [SOW]. The work was conducted onsite in Juneau during multi-day visits by Peakaso representatives in March, June, July, August, September, and October 2017 and in January of 2018. Docket 31 at 2, ¶ 4. 24 Docket 27. Case No. 1:18-cv-00016-SLG, Alaskan Brewing, LLC v.

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Alaskan Brewing, LLC v. Peakaso Partners, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alaskan-brewing-llc-v-peakaso-partners-llc-akd-2019.