Enviroplan, Inc. v. Western Farmers Electric Cooperative

900 F. Supp. 1055, 1995 WL 561524
CourtDistrict Court, S.D. Indiana
DecidedSeptember 19, 1995
DocketIP94-2061-C-B/S
StatusPublished
Cited by6 cases

This text of 900 F. Supp. 1055 (Enviroplan, Inc. v. Western Farmers Electric Cooperative) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Enviroplan, Inc. v. Western Farmers Electric Cooperative, 900 F. Supp. 1055, 1995 WL 561524 (S.D. Ind. 1995).

Opinion

ENTRY

BARKER, Chief Judge.

Defendant Western Farmers Electric Cooperative (“Western Farmers”) moves to dismiss this cause of action for lack of personal jurisdiction, improper venue, forum non con-veniens, and failure to state a claim, or in the alternative to transfer the ease to the Western District of Oklahoma. The Court denies Defendant’s motion in its entirety.

I. FACTUAL BACKGROUND

This diversity action is for breach of contract. Western Farmers is an Oklahoma cooperative that generates and distributes *1058 electricity to cooperative members in Oklahoma. (Def.’s Mot. to Dismiss at 1) Plaintiff Enviroplan, Inc. (“Enviroplan”), is a New Jersey corporation with places of business in Roseland, New Jersey, and in Indianapolis, Indiana. (Complaint ¶ 1) Western Farmers solicited bids for the design, manufacture, and installation of a so-called Continuous Emission Monitoring System (“OEMS”) and a so-called Data Acquisition System (“DAS”) at Western Farmers’ headquarters in Ana-darko, Oklahoma, and at its electrical generating plants in Mooreland and Hugo, Oklahoma. (Def.’s Reply at 5) The two systems would be designed to collect emission discharge from the stacks at Defendant’s Oklahoma plants, to analyze the emissions, to log the data results, to transmit the data from the plants to Defendant’s headquarters, and to generate an emissions data report for transmittal to the U.S. Environmental Protection Agency and the Oklahoma Department of Environmental Quality. (Def.’s Reply at 5) Western Farmers solicited a bid from Enviroplan and on May 24, 1993 entered into a contract with Enviroplan (“the Contract”) under which the New Jersey corporation would design, manufacture, and install both systems. (Complaint ¶¶ 4, 5) The contract price was $572,978. (Complaint, Exhibit A at 8A)

Enviroplan now alleges that it has fully performed under the terms and conditions of the Contract by providing all goods and services required thereunder, and that Defendant has breached the Contract by having failed to pay an amount of $126,450.38 plus interest after Plaintiff demanded such payment. (Complaint ¶¶4, 7, 10, 11)

II. PERSONAL JURISDICTION

A. Standard of Review

A federal district court sitting in diversity may exercise personal jurisdiction over a nonresident defendant only if a court of the state in which the district court sits would have such jurisdiction. Nucor v. Aceros Y Maquilas de Occidente, S.A. de C.V., 28 F.3d 572, 580 (7th Cir.1994); Wilson v. Humphreys (Cayman) Ltd., 916 F.2d 1239, 1243 (7th Cir.1990), cert. denied, 499 U.S. 947, 111 S.Ct. 1415, 113 L.Ed.2d 468 (1991); Fed. R.Civ.P. 4(e) (A federal court sitting in diversity can exercise personal jurisdiction only so far as allowed by the law of the state in which it sits). In the case of a defendant foreign corporation that is not generally doing business in Indiana, an Indiana court may exercise personal jurisdiction over the defendant where both of the following obtain: (1) Indiana’s long-arm statute authorizes the exercise of such jurisdiction; and (2) exercise of such jurisdiction complies with the due process clause of the fourteenth amendment to the United States Constitution. Nucor, 28 F.3d at 580; Wilson, 916 F.2d at 1243. In the case of Indiana’s long-arm statute, the twin inquiries collapse into a single due-process inquiry, because the scope of Indiana’s long-arm statute, Trial Rule 4.4(A), has been deemed to extend the State’s personal jurisdiction to the constitutional limit. 1 Wilson, 916 F.2d at 1243; Oddi v. Mariner-Denver, Inc., 461 F.Supp. 306, 308 (S.D.Ind.1978). See also Brokemond v. Marshall Field & Co., 612 N.E.2d 143, 145 (Ind.App.1993). Thus, we analyze whether personal jurisdiction over Defendant is permissible solely with regard to the due process clause.

The due process clause protects a defendant from being subject to binding judgments of a forum with which the defendant has established no meaningful “contact, ties or relations.” Burger King Corp. v. Rudzewicz, 471 U.S. 462, 471-72, 105 S.Ct. 2174, 2181, 85 L.Ed.2d 528 (1985) (quoting International Shoe Co. v. State of Washington, 326 U.S. 310, 319, 66 S.Ct. 154, 160, 90 L.Ed. 95 (1945)). The Supreme Court has construed the due process clause to entitle a person to “fair warning” as to what conduct will subject the person to a foreign jurisdic *1059 tion. Shaffer v. Heitner, 433 U.S. 186, 218, 97 S.Ct. 2569, 2587, 53 L.Ed.2d 683 (1977) (Stevens, J. concurring in judgment). The Supreme Court has stated that a defendant receives such “fair warning” so as to be amenable to specific jurisdiction of a foreign court where the defendant engages in some purposeful or deliberate activity effecting the forum, and where the litigation results from injuries that “arise out of or relate to” those activities. 2 Burger King, 471 U.S. at 472, 105 S.Ct. at 2182. The necessary contacts may not result solely from the unilateral activity of the plaintiff. Instead personal jurisdiction exists where the defendant “purposefully direct[s]” his activities at residents of the forum, Keeton v. Hustler Magazine, Inc., 465 U.S. 770, 774, 104 S.Ct. 1473, 1478, 79 L.Ed.2d 790 (1984); where the defendant engages in “some act by which [it] purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its law,” Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 1240, 2 L.Ed.2d 1283 (1958); and where the defendant “deliberately” engages in significant activities within the forum state that create a “substantial connection” with the forum, Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475-76, 105 S.Ct. 2174, 2183-84, 85 L.Ed.2d 528 (1985). See Nucor v. Aceros Y Maquilas de Occidente, S.A. de C.V., 28 F.3d 572, 580 (7th Cir.1994) (using “purposeful availment” wording as standard test for specific jurisdiction). This requirement of some deliberate or purposeful conduct or availment on the defendant’s part ensures that a defendant will not be hailed into a jurisdiction solely as a result of “random,” “fortuitous,” or “attenuated” contacts.

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Bluebook (online)
900 F. Supp. 1055, 1995 WL 561524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/enviroplan-inc-v-western-farmers-electric-cooperative-insd-1995.