Art Technology Group, Inc. v. Puritan's Pride, Inc.

716 F. Supp. 2d 93, 2010 U.S. Dist. LEXIS 122867, 2010 WL 2292344
CourtDistrict Court, D. Massachusetts
DecidedMay 27, 2010
DocketCivil Action 09-11937-PBS
StatusPublished
Cited by3 cases

This text of 716 F. Supp. 2d 93 (Art Technology Group, Inc. v. Puritan's Pride, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Art Technology Group, Inc. v. Puritan's Pride, Inc., 716 F. Supp. 2d 93, 2010 U.S. Dist. LEXIS 122867, 2010 WL 2292344 (D. Mass. 2010).

Opinion

ORDER

PATTI B. SARIS, District Judge.

“After review of the objections, I adopt the Report and Recommendation and deny the Motion to Dismiss or to Transfer.”

REPORT AND RECOMMENDATION ON DEFENDANT’S MOTION TO DISMISS OR TO TRANSFER

DEIN, United States Magistrate Judge.

I. INTRODUCTION

In this action, the plaintiff, Art Technology Group, Inc. (“ATG”), claims that defendant, Puritan’s Pride, Inc. (“Puritan”), breached a contract between the two parties by failing to pay amounts due thereunder. Presently before the court is Puritan’s motion to dismiss for lack of personal jurisdiction and improper venue, pursuant to Fed.R.Civ.P. 12(b)(2) and 12(b)(3) and 28 U.S.C. § 1406(a), or alternatively, to transfer the case to the United States District Court for the Eastern District of New York, pursuant to 28 U.S.C. § 1404(a). (Docket No. 21). For the reasons detailed herein, this court finds that Puritan’s activities in connection with the contract between the parties are sufficiently purposeful and related to the Commonwealth of Massachusetts that this court’s assertion of specific jurisdiction over Puritan will not offend traditional notions of justice and fair play. 1 This court further finds that venue in this court is appropriate and that Puritan has not demonstrated that the action nevertheless should be transferred to New York. Therefore, and for the reasons detailed herein, this court recommends to the District Judge to whom this case is assigned that Puritan’s motion be DENIED.

II. STATEMENT OF FACTS

Standard of Review of Record

“On á motion to dismiss for want of in personam jurisdiction, Fed.R.Civ.P. 12(b)(2), the plaintiff ultimately bears the burden of persuading the court that jurisdiction exists.” Mass. Sch. of Law at Andover, Inc. v. Am. Bar Ass’n, 142 F.3d 26, 34 (1st Cir.1998), and cases cited; Adams v. Adams, 601 F.3d 1, 4 (1st Cir.2010) (same). “Faced with a motion to dismiss *98 for lack of personal jurisdiction, [this court] may choose from among several methods for determining whether the plaintiff has met its burden.” Adelson v. Hananel, 510 F.3d 43, 48 (1st Cir.2007) (internal quotation and citation omitted). “When a district court rules on a motion to dismiss for lack of personal jurisdiction without holding an evidentiary hearing, as in this case, the ‘prima facie’ standard governs its determination.” United States v. Swiss Am. Bank, Ltd., 274 F.3d 610, 618 (1st Cir.2001). To meet its burden, the plaintiff must “demonstrate the existence of every fact required to satisfy both the forum’s long-arm statute and the Due Process Clause of the Constitution.” Negron-Torres v. Verizon Commc’ns, Inc., 478 F.3d 19, 24 (1st Cir.2007). Under this standard, the court will “draw the facts from the pleadings and the parties’ supplementary filings, including affidavits.” Lyle Richards Intern., Ltd. v. Ashworth, Inc., 132 F.3d 111, 112 n. 1 (1st Cir.1997). The court will then “take specific facts affirmatively alleged by the plaintiff as true (whether or not disputed) and construe them in the. light most congenial to the plaintiff’s jurisdictional claim.” Mass. Sch. of Law, 142 F.3d at 34. It will then “add to the mix facts put forward by the defendants, to the extent that they are uncontradicted.” Id. However, the court will not “credit conclusory allegations or draw farfetched inferences.” Ticketmaster-New York, Inc. v. Alioto, 26 F.3d 201, 203 (1st Cir.1994). Applying this standard to the instant case, the relevant facts are as follows. 2

The Parties

Plaintiff ATG is a Delaware corporation with its principal place of business in Cambridge, Massachusetts. (Compl. ¶ 6). ATG is a software business that develops and distributes e-Commerce programs that “are used across web, e-mail, call-center, and mobile customer communication channels.” (Id. ¶ 11). ATG’s software programs were developed primarily in Massachusetts. (Brearley N.Y. Aff. ¶ 2). In addition to software, ATG offers technical support and various services including training, project management, consulting, and website development and configuration. (Compl. ¶ 11). ATG’s primary technical support call center is in Massachusetts. (Brearley N.Y. Aff. ¶ 3).

Puritan is a New York corporation with a principle place of business in Ronkonkoma, New York and an office in Holbrook, New York. (Compl. ¶ 7; Pappas Aff. ¶ 2). Puritan does not have an office, place of business or any employees in Massachusetts, nor has it placed or targeted any advertising to Massachusetts. (Pappas Aff. ¶ ¶ 4, 5). Puritan sells vitamins and various other nutritional supplements directly to consumers, primarily through telephone and internet sales. (Id. at ¶ 3). According to its website, Puritan produces over 2 billion pills and packages over 14 million bottles each month and has over six million customers. (Compl. ¶ 12).

Business Transaction between the Parties

During 2007, Puritan “began exploring the possibility of upgrading and transform *99 ing its existing e-commerce platform to an entirely new platform ... [which] would include new infrastructure, new software and reconfigured content” (the “Project”). (Pappas N.Y. Aff. ¶ 4). From April 29-May 2, 2007, ATG hosted a “customer conference” in South Carolina. (Id. at ¶ 5). Certain Puritan representatives attended this conference to obtain information about ATG and the services it could provide in connection with the Project. (Id.). ATG and Puritan subsequently embarked on negotiations spanning a number of months regarding the retention of ATG on the Project. (Brearley N.Y. Aff. at ¶ 5). These negotiations included approximately 20 phone calls and 50-75 e-mails between Puritan and ATG’s employees in Massachusetts. (Id.). Additionally, in April of 2008, Puritan representatives traveled to Massachusetts, where, over the course of three days, the parties discussed the potential agreement. (Id. at ¶ 6).

The extensive negotiations concluded when, on June 12, 2008, the parties entered into “Master License Agreement No.

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Bluebook (online)
716 F. Supp. 2d 93, 2010 U.S. Dist. LEXIS 122867, 2010 WL 2292344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/art-technology-group-inc-v-puritans-pride-inc-mad-2010.