Danka Funding, L.L.C. v. Page, Scrantom, Sprouse, Tucker & Ford, P.C.

21 F. Supp. 2d 465, 1998 U.S. Dist. LEXIS 15214, 1998 WL 682312
CourtDistrict Court, D. New Jersey
DecidedSeptember 28, 1998
DocketCivil Action 98-1288
StatusPublished
Cited by41 cases

This text of 21 F. Supp. 2d 465 (Danka Funding, L.L.C. v. Page, Scrantom, Sprouse, Tucker & Ford, P.C.) 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
Danka Funding, L.L.C. v. Page, Scrantom, Sprouse, Tucker & Ford, P.C., 21 F. Supp. 2d 465, 1998 U.S. Dist. LEXIS 15214, 1998 WL 682312 (D.N.J. 1998).

Opinion

OPINION

WOLIN, District Judge.

This case is here on the motion of defendant, Page, Scrantom, Sprouse, Tucker & Ford, P.C. (“Page, Scrantom”), for the following relief: (1) dismissal of the claims of plaintiff, Danka Funding Company, L.L.C. (“DFC”), for lack of personal jurisdiction under Federal Rule of Civil Procedure 12(b)(2); (2) dismissal of plaintiffs claims for failure to comply with N.J.S.A. 42:2B-57.a, requiring registration in New Jersey of foreign limited liability companies doing business in this state desiring to bring suit in New Jersey; or, in the alternative, (3) transfer of venue, under 28 U.S.C. § 1404, to the United States District Court for the Middle District of Georgia. The Court has considered these matters under Federal Rule of Civil Procedure 78. For the reasons stated herein, defendant’s motion will be denied.

BACKGROUND

The Parties

Page, Scrantom is a law firm with its sole office in Columbus, Georgia. (George Scran-tom Cert. ¶ 1). It does no business in New Jersey and has no ties to New Jersey other than this lawsuit. {Id. ¶ 2).

DFC is a New York limited liability company engaged in the business of acquiring, pledging, holding, and disposing of certain *468 leases and equipment or interests, issuing non-recourse obligations, and related acts. (Michael Quiat Aff., Ex. D). It claims its principle place of business in New Jersey. (Nancy Bosch Aff. ¶ 1; Michael Quiat Aff., Ex. B). DFC was registered in New Jersey from December 21, 1995, until May 15, 1997, at which point the registration lapsed or was withdrawn. (Bosch Aff. ¶ 12; See David Ko-hane Cert., Ex. A). Due to the lapse, it appears that DFC was unregistered at the time it filed its complaint in New Jersey; it has since re-registered on May 7, 1998. (Bosch Aff. ¶ 12; Quiat Aff., Ex. D).

The Lease

On January 29, 1997, Page, Scrantom entered into a lease to rent two Konica copiers and related equipment (“the Lease”). (Scrantom Cert., Ex. A.) The Lease was signed in Georgia, and its terms required Page, Scrantom to keep and use the equipment only at the firm’s Columbus, Georgia address. (Id.).

The supplier on the Lease is listed as “DANKA”, with an address in Columbus, Georgia. This Court understands that “DANKA” stands for Danka Industries and/or DANKA OFFICE IMAGING COMPANY (hereinafter “Danka”), a Delaware corporation. (See Davis Laney Aff., Ex. A; Defendant’s Reply Brief, p. 1). The Lessor is listed as “American Business Credit Corporation” (“ABCC”), with an address in St. Petersburg, Florida. (Laney Aff., Ex. A). ABCC is identified on the Lease’s letterhead as “A Danka Company”, and the copyright of the Lease identifies the lease-form as created and used by ABCC. (See Id.). Both ABCC and Danka are alleged to have them principle places of business in Florida; Page, Scran-tom, however, did business with those companies through a Columbus, Georgia office. (Defendant’s Reply Brief, p. 1).

The Lease contains a choice of law/forum-selection clause on its back, where the following language is printed in bold:

CHOICE OF LAW: THIS RENTAL AND EACH SCHEDULE SHALL BE GOVERNED BY THE INTERNAL LAWS FOR THE STATE IN WHICH OUR OR OUR ASSIGNEE’S PRINCIPAL CORPORATE OFFICES ARE LOCATED. YOU CONSENT TO THE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURT LOCATED WITHIN OUR OR OUR ASSIGN-EE’S STATE, AND WAIVE ANY OBJECTION RELATING TO IMPROPER VENUE. (Scrantom Cert., Ex. A).

Subsequent to the execution of the Lease, it was assigned to DFC. (Quiat Aff., Ex. B).

New Jersey Lawsuit

On January 14, 1998, DFC filed a complaint in the Superior Court of New Jersey, Bergen County, alleging that the assignor of the Lease had delivered to Page, Scrantom certain office equipment. (Id.). Page, Scrantom filed a removal to this Court based on diversity of citizenship.

DFC alleges that defendant has defaulted on its obligations by failing to make regular monthly payments due on the Lease. (Id.). Under the terms of the Lease, DFC argues that all obligations of the defendant are now accelerated and currently due, plus an additional one and one-third percent per month additional interest on all monies due. (Id.). DFC calculates the total amount owed to it as $112,452.71, in addition to other costs relating to this litigation. (Id.).

It is undisputed that all of the witnesses Page, Scrantom will likely call to testify are from Georgia. Nancy Bosch, Vice President of a company that acts as servicing manager for DFC, states in her affidavit that DFC will require “at least one, and perhaps as many as three witnesses from its home office in New Jersey” to testify in this case. (Bosch Aff. ¶ 10).

Georgia Lawsuit

On February 12, 1998, Page, Scrantom filed suit against Danka and ABCC in the United States District Court for the Middle District of Georgia, Columbus Division, Case No. 9:98-CV-32 (JRE). Page, Scrantom had learned of the New Jersey filing, but had not been served. Service of process in the Georgia lawsuit was performed on February 13, 1998, before service of this lawsuit on February 19, 1998. (Defendant’s Brief, p. 5). In the Georgia lawsuit, Page, Scrantom seeks rescission of the Lease and refund of Lease *469 payments it made for the equipment. (Scrantom Cert., Ex. B). It bases its claims for rescission in the Georgia lawsuit on its allegations that the copiers leased to it were defective upon delivery, that the defects were beyond cure, and that Page, Scrantom had justifiably rejected tender of the machines and communicated this rejection immediately. (Id.). Page, Scrantom avers through the certification of its President, W.G. Scrantom, Jr., that it filed the Georgia lawsuit “in order to protect itself from the consequences of the defective merchandise leased to it and from efforts to drag Page Scrantom into the courts of New Jersey over a transaction relating only to Georgia.” (Scrantom Cert. ¶ 6).

For purposes of the Georgia lawsuit, Page, Scrantom has. identified eight witnesses of its firm with particular knowledge of the facts; all are from Georgia. (Laney Aff. ¶ 7). Dan-ka and ABCC have identified seven individuals, six identified as Georgia residents, and a seventh who’s address is listed as “unknown.” (Laney Aff., Ex. A).

DISCUSSION

A. Motion to Dismiss for Lack of Personal Jurisdiction

Defendant first moves to dismiss plaintiffs complaint under Federal Rule of Civil Procedure 12(b)(2) for lack of personal jurisdiction.

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Bluebook (online)
21 F. Supp. 2d 465, 1998 U.S. Dist. LEXIS 15214, 1998 WL 682312, Counsel Stack Legal Research, https://law.counselstack.com/opinion/danka-funding-llc-v-page-scrantom-sprouse-tucker-ford-pc-njd-1998.