Columbia Strategic Counsel, Inc. v. Innovative Rail Technologies, LLC, Ira Dorfman, Rick Herndon, and Mike Nicoletti

CourtDistrict Court, D. Oregon
DecidedDecember 11, 2025
Docket3:25-cv-00832
StatusUnknown

This text of Columbia Strategic Counsel, Inc. v. Innovative Rail Technologies, LLC, Ira Dorfman, Rick Herndon, and Mike Nicoletti (Columbia Strategic Counsel, Inc. v. Innovative Rail Technologies, LLC, Ira Dorfman, Rick Herndon, and Mike Nicoletti) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Columbia Strategic Counsel, Inc. v. Innovative Rail Technologies, LLC, Ira Dorfman, Rick Herndon, and Mike Nicoletti, (D. Or. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

COLUMBIA STRATEGIC COUNSEL, INC., Case No.: 3:25-cv-00832-AN

Plaintiff, v. OPINION AND ORDER INNOVATIVE RAIL TECHNOLOGIES, LLC, IRA DORFMAN, RICK HERNDON, and MIKE NICOLETTI,

Defendants.

Plaintiff Columbia Strategic Counsel ("CSC") brings this tort and breach of contract action against defendants Ira Dorfman ("Dorfman"), Rick Herndon ("Herndon"), and Mike Nicoletti ("Nicolletti") (with Dorfman and Herndon, the "individual defendants"), and Innovative Rail Technologies, LLC ("IRT") (collectively, "defendants"). Specifically, plaintiff alleges claims for securities fraud, misrepresentation (together, the "tort claims"), and quantum meruit against all defendants, as well as claims for breach of contract and breach of the duty of good faith and fair dealing (together with the quantum meruit claim, the "contract claims") against IRT. Defendants move to dismiss the action in its entirety for lack of personal jurisdiction, or in the alternative, to transfer venue to the Western District of Texas. For the reasons stated herein, defendant's motion to dismiss is GRANTED. LEGAL STANDARD A. Motion to Dismiss for Lack of Personal Jurisdiction Federal Rule of Civil Procedure 12(b)(2) allows a party to move for dismissal based on a lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2). When evaluating a motion brought under Rule 12(b)(2), a "court may consider evidence presented in affidavits to assist it in its determination and may order discovery on the jurisdictional issues." Doe v. Unocal Corp., 248 F.3d 915, 922 (9th Cir. 2001) (per curiam), overruled on other grounds by Daimler AG v. Bauman, 571 U.S. 117 (2014). If a "court decides the motion without an evidentiary hearing, . . . then 'the plaintiff need only make a prima facie showing of the jurisdictional facts.'" Boschetto v. Hansing, 539 F.3d 1011, 1015 (9th Cir. 2008) (quoting Sher v. Johnson, 911 F.2d 1357, 1361 (9th Cir. 1990)). While a "plaintiff may not simply rest on the bare allegations of the complaint[,] uncontroverted allegations must be taken as true, and conflicts between parties over statements contained in affidavits must be resolved in the plaintiff's favor." Ranza v. Nike, 793 F.3d 1059, 1073 (9th Cir. 2015) (citation modified). B. Motion to Transfer Venue A party may only bring a case where venue is proper. 28 U.S.C. § 1391(a)-(b). Under 28 U.S.C. § 1391(b), venue is proper (1) in a judicial district where any defendant resides, if all defendants reside in the same state; (2) in a judicial district where "a substantial part of the events or omissions giving rise to the claim occurred"; or (3) "if there is no district in which an action may otherwise be brought . . . , [in] any judicial district where any defendant is subject to personal jurisdiction." As the plain language of the statute indicates, "[t]he first two paragraphs of [Section] 1391(b) define the judicial districts for venue in a typical case," while "the third paragraph provides a fallback option." Atl. Marine Constr. Co. v. U.S. Dist. Ct. for the W. Dist. of Tex., 571 U.S. 49, 56-57 (2013). For the purposes of venue, a defendant corporation is deemed to reside "in any judicial district in which such defendant is subject to the court's personal jurisdiction with respect to the civil action in question[.]" 28 U.S.C. § 1391(c)(2). A plaintiff bears the burden of demonstrating that venue is proper. See Piedmont Label Co. v. Sun Garden Packing Co., 598 F.2d 491, 496 (9th Cir. 1979). If venue is improper, the court has discretion to decide whether to dismiss or transfer the case. See King v. Russell, 963 F.2d 1301, 1304 (9th Cir. 1992) (per curiam) ("Even though the federal defendants originally requested transfer rather than dismissal, the district court did not abuse its discretion by dismissing."). 1. Transfer or Dismissal Under Section 1406(a) "When venue is challenged, the court must determine whether the case falls within one of the three categories . . . . If it does, venue is proper; if it does not, venue is improper, and the case must be dismissed or transferred under [28 U.S.C.] § 1406(a)." Atl. Marine Constr., 571 U.S. at 56. Section 1406(a) provides that when a case is brought in an improper venue, a court "shall dismiss, or if it be in the interest of justice, transfer such case to any district or division in which it could have been brought." 28 U.S.C. § 1406(a). Transfer is thus required when it is (1) to a court where the case "could have been brought" initially and (2) "in the interest of justice." Id. The first requirement is straightforward: a case could have been brought in any forum with proper venue and personal jurisdiction. Van Dusen v. Barrack, 376 U.S. 612, 623 (1964) ("There is no valid reason for reading the words 'where it might have been brought' to narrow the range of permissible federal forums beyond those permitted by federal venue statutes[.]"), superseded by statute on other grounds as stated in Ross v. Colo. Outward Bound Sch., 822 F.2d 1524, 1527 (10th Cir. 1987). The second requirement, that the transfer is in the interest of justice, aims to prevent a plaintiff from being penalized by "'time-consuming and justice-defeating technicalities'" such as the uncertainties of proper venue. Goldlawr, Inc. v. Heiman, 369 U.S. 463, 467 (1962) (citation omitted). In the Ninth Circuit, "transfer will generally be in the interest of justice, unless it is apparent that the matter to be transferred is frivolous or was filed in bad faith." Amity Rubberized Pen, 793 F.3d at 996 (drawing from collected cases). This analysis purposefully entails a narrow and "limited inquiry by the transferring court" because "the interest of justice will rarely be served by one court engaging in a lengthy pre-transfer analysis, only ultimately to send the case to a new court that must start afresh." Id. 2. Transfer Under Section 1404(a) Alternatively, "[u]nder [28 U.S.C.] § 1404(a), [a] district court has discretion 'to adjudicate motions for transfer according to an individualized, case-by-case consideration of convenience and fairness.'" Jones v. GNC Franchising Inc., 211 F.3d 495, 498 (9th Cir. 2000) (quoting Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29 (1988)). A court considering a Section 1404(a) motion to transfer must "weigh the relevant factors and decide whether, on balance, a transfer would serve the convenience of parties and witnesses and otherwise promote the interest of justice." Atl. Marine Constr., 571 U.S. at 62- 63 (internal quotation marks and citation omitted).

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Bluebook (online)
Columbia Strategic Counsel, Inc. v. Innovative Rail Technologies, LLC, Ira Dorfman, Rick Herndon, and Mike Nicoletti, Counsel Stack Legal Research, https://law.counselstack.com/opinion/columbia-strategic-counsel-inc-v-innovative-rail-technologies-llc-ira-ord-2025.