CooperVision, Inc. v. Inter Integration Technologies, Inc.

7 Misc. 3d 592
CourtNew York Supreme Court
DecidedFebruary 2, 2005
StatusPublished
Cited by7 cases

This text of 7 Misc. 3d 592 (CooperVision, Inc. v. Inter Integration Technologies, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CooperVision, Inc. v. Inter Integration Technologies, Inc., 7 Misc. 3d 592 (N.Y. Super. Ct. 2005).

Opinion

[593]*593OPINION OF THE COURT

Kenneth R. Fisher, J.

Defendant, Intek Integration Technologies, Inc., moves to dismiss plaintiffs complaint pursuant to CPLR 3211 (a) (1) on the ground that the parties’ software license agreement contained a forum selection clause requiring that the action be brought in the State of Washington. Intek also moves to dismiss because plaintiff failed to serve the summons and complaint in the manner required by CPLR 306-b. Plaintiff, CooperVision, Inc., cross-moves for an order pursuant to CPLR 306-b validating plaintiff’s second attempted service on defendant, or authorizing such other and further service as the court may direct.

The Software Licensing and Implementation Agreements

In early September 2003, CooperVision contracted with Intek Integration Technologies, a specialist in the design, development and implementation of warehouse management systems software, to purchase software and to provide services in connection with an automation project designed to modernize its distribution process at its facility in Henrietta, New York. Before contracting with Intek, CooperVision hired a warehouse management consultant who prepared a request for information, and directed it to several vendors, including Intek. Intek responded in May 2003, stating that its product warehouse librarian WMS software would meet CooperVision’s needs. In July 2003, CooperVision requested a proposal for Intek’s product, and in August 2003, Intek sent CooperVision its so-called RFP response. The RFP response sent to CooperVision by Intek provided: “The responses provided in this RFP process will be made part of the final contract between the winning company and CooperVision. Any changes to those responses after the contract award will be made only if authorized by CooperVision in writing.” (RFP response § 1.9 at 9.) Intek then drafted and sent to CooperVision a “Letter of Commitment.” Joseph E Stannard, the vice-president of Logistics for CooperVision, maintains in his affidavit that the letter of commitment was executed by both parties (the exhibit contained in CooperVision’s motion papers, however, is in blank). The letter of commitment contemplated that the parties would “enter into an agreement to procure a Warehouse Management System from Intek Integration Technologies, as proposed in Intek’s RFF response dated August 13, 2003, to CooperVision’s RFF dated July 24, [594]*5942003.” The letter of commitment provided that that agreement would be entered into “by September 26, 2003.”

Thereafter, in September 2003, the parties executed the two agreements which are at issue on this motion. The first was a warehouse librarian software license agreement, executed by Intek on September 4, 2003, and by CooperVision on September 8, 2003. This agreement contained the disputed forum selection clause. The second agreement was the warehouse librarian implementation agreement, also executed by Intek on September 4, 2003, and by CooperVision on September 8, 2003. The parties also executed a contract addendum on September 11, 2003, which CooperVision contends called for still more agreements, which would be executed in the future during the so-called initial warehouse analysis phase of the project. The addendum contemplated that “final software functionality requirements, implementation requirements, vendor and customer responsibilities, test plan methodology, and schedules will be established” during the warehouse analysis phase and that these several requirements and responsibilities “must be agreed to,” and “will be guided by the original RFP Response submitted by Intek.”

The implementation agreement, which did not contain the forum selection clause, provided that Intek would provide CooperVision “with the hardware, software and services” defined in the agreement, and that “Intek will configure, integrate, implement, and test the hardware, 3rd Party Software, and warehouse librarian product (collectively referred to as the ‘Warehouse Librarian System’)” for CooperVision at CooperVision’s Henrietta facility The implementation agreement also provided that Intek would “provide services to assist” Cooper-Vision “in the data conversion, system training and system start up to put the Warehouse Librarian System into production.”

The software license agreement, on the other hand, granted to CooperVision certain nonexclusive rights or a license to use the software programs identified in section 14 of the agreement, and more particularly in schedule A. The software license agreement defined the permissible uses that CooperVision may make of the software program, restricted CooperVision from transferring its rights in the product to a third party, and prohibited CooperVision from making copies or otherwise transferring the program to any computer system other than the designated server. The agreement identified Intek’s proprietary rights and [595]*595claims of confidentiality, provided a warranty, and gave Cooper-Vision rights to enter into future agreements to obtain updates and maintenance. The software license agreement was, without question, designed to protect Intek’s intellectual property rights in the software programs. It provided that upon breach Cooper-Vision agrees that Intek would suffer irreparable damage and would be entitled to preliminary injunctive relief as well as other remedies.

The software license agreement also contained a choice of law provision (laws of the State of Washington), and a forum selection clause: “The parties agree that King County in the State of Washington shall be the proper forum for any action, including arbitration, brought under this Agreement.” The same clause provided that, if Intek requested, CooperVision would “certify under oath that you have fully and faithfully observed all the terms and conditions of this agreement,] ” and that Intek could “at reasonable times and upon 24 hours notice, inspect your premises and equipment to verify that all of the terms and conditions of this agreement are being observed.”

The Forum Selection Clause

The issue before the court is whether the defendant is entitled to dismissal of the complaint pursuant to CPLR 3211 (a) (1) on the ground that the software license agreement contains a forum selection clause requiring the action to be brought in the State of Washington. On any motion to dismiss under CPLR 3211 the pleading is afforded a liberal construction and the facts as alleged are presumed to be true. (Leon v Martinez, 84 NY2d 83, 87 [1994].) Dismissal is warranted under paragraph (1) of subdivision (a) of CPLR 3211 “only if the documentary evidence submitted conclusively establishes a defense to the asserted claims as a matter of law.” (Leon, 84 NY2d at 88; see Goshen v Mutual Life Ins. Co., 98 NY2d 314, 326 [2002] [“motion may be appropriately granted only where the documentary evidence utterly refutes plaintiffs factual allegations, conclusively establishing a defense as a matter of law”]; 511 W. 232nd Owners Corp. v Jennifer Realty Co., 98 NY2d 144, 152 [2002].)

Intek contends that the implementation agreement incorporates the software license agreement by reference, and that therefore the forum selection clause in the latter applies to the entirety of the parties’ dealings. We start with some first principles. Forum selection clauses are “prima facie valid and should be enforced unless enforcement is shown by the resisting [596]*596party to be ‘unreasonable’ under the circumstances.” (M/S Bremen v Zapata Off-Shore Co., 407 US 1, 10 [1972];

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Bluebook (online)
7 Misc. 3d 592, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coopervision-inc-v-inter-integration-technologies-inc-nysupct-2005.