B&C LUXURY AUTO, LTD. v. INTEX CARGO, INC.

CourtDistrict Court, D. New Jersey
DecidedMarch 17, 2023
Docket2:22-cv-03229
StatusUnknown

This text of B&C LUXURY AUTO, LTD. v. INTEX CARGO, INC. (B&C LUXURY AUTO, LTD. v. INTEX CARGO, INC.) 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
B&C LUXURY AUTO, LTD. v. INTEX CARGO, INC., (D.N.J. 2023).

Opinion

Not for Publication

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

B&C Luxury Auto, LTD.,

Plaintiff, Civil Action No.: 22-03229 (ES) (JRA)

OPINION v. Intex Cargo, Inc., et al.,

Defendants.

SALAS, DISTRICT JUDGE Plaintiff B&C Luxury Auto, Ltd. (“Plaintiff” or “B&C”) initiated this action against Defendants Intex Cargo, Inc. (“Intex” or “Defendant Intex”), Alejandrina Rosa (“Defendant Rosa”), and Francys Iliana Alvarez (“Defendant Alvarez”) (together the “Individual Defendants”), bringing contract and fraud claims. (D.E. No. 1-2 (“Complaint” or “Compl.”)). Before the Court is Defendants’ joint motion to dismiss Plaintiff’s Complaint for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2) and improper venue pursuant to Rule 12(b)(3), or alternatively to transfer venue to the Southern District of Texas-Houston Division pursuant to 28 U.S.C. § 1406(a) or § 1404(a). (D.E. No. 6). The motion is fully briefed. (D.E. No. 6-4 (“Mov. Br.”); D.E. No. 10 (“Opp. Br.”)). Having considered the parties’ submissions, the Court decides this matter without oral argument. See Fed. R. Civ. P. 78(b); L. Civ. R. 78.1(b). For the foregoing reasons, Defendants’ motion is GRANTED-in-part and DENIED-in-part. I. BACKGROUND A. Parties Plaintiff is a licensed shipping broker that specializes in transporting, storing, and shipping goods and vehicles internationally. (Opp. Br. at 2; Compl. ¶ 1). Plaintiff is incorporated in New

Jersey, and its principal place of business is in Newark, New Jersey. (Compl. ¶ 1). Defendant Intex is a corporation that is also in the business of shipping goods and vehicles overseas. (Id. ¶ 2). At all relevant times, Plaintiff was primarily in the business of transporting vehicles overseas, while Defendant Intex was primarily in the business of shipping parcels overseas. (Opp. Br. at 2). Defendant Intex is incorporated in Texas and its principal place of business is in Houston, Texas. (Compl. ¶ 2; D.E. No. 6-5 (“Alvarez Aff.”) ¶ 3). Defendant Alvarez is an officer, agent, employee and owner of Intex and is a citizen and resident of Texas. (Compl. ¶ 3; Alvarez Aff. ¶¶ 1–2). Defendant Rosa is an officer, agent, and employee of Intex and is a citizen and resident of Texas. (Compl. ¶ 4; Mov. Br. at 8, 13). B. Factual Background1

In November 2019, B&C contacted Fidel Rubio—an agent of one of B&C’s existing customers at the time, ATM Cargo—to solicit business. (Opp. Br. at 2). Rubio informed B&C that he was no longer working for ATM Cargo, but was working for a family business, Intex, which “was struggling financially” and “had an interesting business proposition for B&C Luxury that he wished to discuss in person.” (Id.). In or around November 2019, Rubio travelled to New Jersey on behalf of Intex to meet with the President of B&C, Sergiu Bejenari, and proposed a business relationship whereby B&C would open an office in Houston, Texas and “share the office

1 The facts are drawn primarily from Plaintiff’s opposition brief, as the Complaint is almost entirely devoid of facts pertaining to the alleged business relationship between B&C and Intex which forms the basis of Plaintiff’s claims. On a 12(b)(2) motion, courts look outside the pleadings for support for personal jurisdiction. See Miller Yacht Sales, Inc. v. Smith, 384 F.3d 93, 101 n.6 (3d Cir. 2004). space, warehouse space and operating expenses” with Intex. (Id. at 2–3). The proposed business relationship was intended “to alleviate Intex from the financial pressure” it was experiencing and “provide B&C Luxury with an expansion opportunity.” (Id. at 3). Pursuant to the initial proposal, the companies would otherwise operate independently. (Id.). B&C accepted Intex’s initial

proposal and opened an office at Intex’s location in Houston, Texas in December 2019. (Id.). B&C took over rent payments and Intex reimbursed B&C for a portion of the rent. (Id.). Between December 2019 and December 2021, while the parties were sharing office space in Texas, Intex routinely asked B&C to ship vehicles overseas on behalf of Intex without requiring pre-payment of the shipping costs, though pre-payment is typical in the industry. (Id. at 4). B&C agreed, and pursuant to this agreement, B&C shipped “hundreds” of vehicles overseas for Intex without requiring any pre-payment from Intex, and Intex agreed to pay for B&C’s services after receiving payment from its customers. (Id.). Intex allegedly agreed to reimburse “all costs to Plaintiff[] plus a modest profit of 10%.” (Compl. ¶ 8). To date, Defendants allegedly owe B&C $238,196.68, which includes outstanding shipping costs and rent payments. (Id. ¶ 9; Id.

Exhibit A). C. Procedural History Plaintiff initiated this action in the Superior Court of New Jersey Law Division: Essex County on April 26, 2022, bringing seven counts against all Defendants for (i) breach of contract; (ii) breach of implied covenant of good faith and fair dealing; (iii) unjust enrichment; (iv) quantum meruit; (v) book account; (vi) promissory estoppel; and (vii) common law fraud. (See Compl. ¶¶ 10–40). On May 27, 2022, Defendants removed the action to this Court. (D.E. No. 1). On June 3, 2022, Defendants filed the instant motion to dismiss, which is fully briefed. (D.E. No. 6; Mov. Br.; Opp. Br.). Plaintiff did not request any jurisdictional discovery to oppose the motion. II. LEGAL STANDARD To withstand a motion to dismiss under Federal Rule of Civil Procedure 12(b)(2), a plaintiff bears the burden of establishing the court’s personal jurisdiction over the moving defendant by a preponderance of the evidence. D’Jamoos ex rel. Estate of Weingeroff v. Pilatus Aircraft Ltd., 566

F.3d 94, 102 (3d Cir. 2009). “[W]hen the court does not hold an evidentiary hearing on the motion to dismiss, the plaintiff need only establish a prima facie case of personal jurisdiction and the plaintiff is entitled to have its allegations taken as true and all factual disputes drawn in its favor.” Miller Yacht Sales, 384 F.3d at 97 (citations omitted). Still, the plaintiff must establish the “jurisdictional facts through sworn affidavits or other competent evidence . . . . [A]t no point may a plaintiff rely on the bare pleadings alone in order to withstand a defendant’s Rule 12(b)(2) motion to dismiss for lack of in personam jurisdiction.” Id. at 101 n.6 (citation and internal quotation marks omitted). III. DISCUSSION A federal court has jurisdiction over a nonresident defendant to the extent authorized by

the law of the state in which the court sits, so long as the exercise of jurisdiction comports with the Due Process Clause of the Fourteenth Amendment. Fed. R. Civ. P. 4(e); Vetrotex Certainteed Corp. v. Consol. Fiber Glass Prods. Co., 75 F.3d 147, 150 (3d Cir. 1996). “Since New Jersey’s long-arm statute allows ‘the exercise of personal jurisdiction to the fullest limits of due process,’ we ‘look to federal law for the interpretation of the limits on in personam jurisdiction.’” Malik v. Cabot Oil & Gas Corp., 710 F. App’x 561, 563 (3d Cir. 2017) (citing IMO Indus., Inc. v. Kiekert AG, 155 F.3d 254, 259 (3d Cir. 1998)); N.J.

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B&C LUXURY AUTO, LTD. v. INTEX CARGO, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/bc-luxury-auto-ltd-v-intex-cargo-inc-njd-2023.