Brink v. Ecologic, Inc.

987 F. Supp. 958, 1997 U.S. Dist. LEXIS 20097, 1997 WL 781603
CourtDistrict Court, E.D. Michigan
DecidedNovember 14, 1997
DocketCivil Action 97-40209
StatusPublished
Cited by4 cases

This text of 987 F. Supp. 958 (Brink v. Ecologic, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brink v. Ecologic, Inc., 987 F. Supp. 958, 1997 U.S. Dist. LEXIS 20097, 1997 WL 781603 (E.D. Mich. 1997).

Opinion

MEMORANDUM OPINION AND ORDER DENYING MOTION TO DISMISS FOR LACK OF IN PERSONAM JURISDICTION AND GRANTING MOTION TO TRANSFER VENUE

GADOLA, District Judge.

On June 17, 1997, plaintiff, Lawrfence R. Brink, instituted this action against defendants Eeologie, Inc. and Stephen V. Lee, alleging copyright infringement in violation of 17 U.S.C. § 101 et seq., as well as breach of contract and unjust enrichment. Presently before this court is defendants’ motion to dismiss for lack of in personam jurisdiction or in the alternative to transfer venue, which was filed on August 18,1997. For the following reasons, defendants’ motion to dismiss will be denied, but defendants’ motion to transfer venue will be granted.

FACTS

Eeologie, Inc. was incorporated in 1992 to design and manufacture university residence hall furniture. Ecologic’s furniture is constructed from E columber,TM an extruded material made of recycled milk cartons. Ecologic’s President, Stephen V. Lee (“Lee”), designed and created the prototypes of the furniture Eeologie sells and has sold. Initially, Lee built Ecologic’s furniture in his garage. In 1994, Eeologie opened a factory in Illinois where Eeologie manufactured its furniture from prototypes Lee built.

In 1991, Lee met plaintiff, Lawrence R. Brink, on a sailboat in Illinois. Plaintiff is an architect who does business as “Lawrence Brink and Associates” in Ann Arbor, Michigan. Lee and plaintiff discussed Lee’s furniture designs and the general business of Eeologie.

Lee had aspirations that Eeologie would grow in sales to a point where Eeologie would need to mass produce its furniture. To prepare for this possibility, Lee asked plaintiff if he could prepare shop drawings from prototypes Lee created and designed. Brink delivered the first drawings to Lee in Illinois in 1993. While he was in Illinois, plaintiff inquired how he was to be paid. Brink was verbally advised that he would be paid four percent of Ecologic’s gross sales or net profits, 1 if any, from future sales of Ecologic’s furniture for the drawings he had prepared and would prepare for Eeologie. In 1994, Lee allegedly “upped the ante,” so to speak, promising to give plaintiff not only 4% of Ecologic’s gross sales or net profits, but also 10% of Ecologic’s stock.

In July, 1997, plaintiff instituted this action claiming that defendants Lee and Eeologie used his copyrighted furniture designs 2 without paying him a percentage of Eeologie gross sales and stock as .promised. Shortly thereafter, on August 18, 1997, defendants Eeologie and Lee filed the instant motion contending that this action should be dismissed, or in the alternative transferred to the Northern District of Illinois.

ANALYSIS

1. Defendants’ Motion to Dismiss for Lack of In Personam Jurisdiction

Defendants’ first argument is that this court should dismiss the action pursuant to Federal Rule of Civil Procedure 12(b)(2) because it lacks in personam jurisdiction over defendants. This motion will be denied.

Plaintiff bears the burden of establishing in personam jurisdiction. Theunissen v. Matthews, 935 F.2d 1454, 1458 (6th Cir.1991). To satisfy this burden, “plaintiff may not stand on his pleadings but must, by affidavit or otherwise, set forth specific facts showing that the court has [personal] jurisdiction.” Id . (citing Weller v. Cromwell Oil Co., 504 F.2d 927, 930 (6th Cir.1974)).

Where the jurisdictional issue is decided pursuant to Federal Rule of Civil Procedure 12(b)(2) without an evidentiary hearing and solely on the basis of written *961 materials, the plaintiff is only required to make a prima facie showing of jurisdiction. Theunissen, 935 F.2d at 1458. The pleadings are considered in a light most favorable to the plaintiff and the court does not weigh controverting assertions of the party seeking dismissal. Id. at 1459.

In diversity cases, such as the instant ease, courts look to the law of the forum state to determine whether personal jurisdiction exists. Nationwide Mutual Ins. Co. v. Tryg Int’l. Ins. Co., Ltd., 91 F.3d 790, 793 (6th Cir.1996). Under Michigan law, the determination of in personam jurisdiction over a nonresident defendant requires a two-part analysis. Jeffrey v. Rapid American Corp., 448 Mich. 178, 529 N.W.2d 644 (1995). First, plaintiff must demonstrate that the exercise of in personam jurisdiction is consistent with the requirements of Due Process under the Fourteenth Amendment of the Constitution of the United States. Id., 529 N.W.2d at 648-49. Second, plaintiff must show defendants fall within the reach of Michigan’s long-arm statutes. Id. The analysis “begin[s] by examining the relevant Due Process considerations, recognizing that a defect of this type would foreclose the exercise of personal jurisdiction even where a properly construed provision of the long-arm statute would permit it.” Theunissen v. Matthews, 935 F.2d 1454, 1458 (6th Cir.1991). 3

A. Defendant Lee

In this ease, plaintiff asserts that this court has specific (a.k.a. “limited”) in person-am jurisdiction over defendant Lee pursuant to Section 600.705 of Michigan Compiled Laws, which provides as follows:

The existence of any of the following relationships between an individual and his agent and the state shall constitute a sufficient basis of jurisdiction to enable a court of record of this state to exercise limited personal jurisdiction over the individual and to enable the court to render personal judgments against the individual or his representative arising out of an act which creates any of the following relationships:
(1) The transaction of any business within the state.
(2) The doing or causing of any act to be done, or consequences to occur, in the state resulting in an action for tort.

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Bluebook (online)
987 F. Supp. 958, 1997 U.S. Dist. LEXIS 20097, 1997 WL 781603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brink-v-ecologic-inc-mied-1997.