EXTERNETWORKS, INC. v. THINK ANEW, LLC

CourtDistrict Court, D. New Jersey
DecidedDecember 21, 2021
Docket2:20-cv-03334
StatusUnknown

This text of EXTERNETWORKS, INC. v. THINK ANEW, LLC (EXTERNETWORKS, INC. v. THINK ANEW, LLC) 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
EXTERNETWORKS, INC. v. THINK ANEW, LLC, (D.N.J. 2021).

Opinion

Not for Publication

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

EXTERNETWORKS, INC.,

Plaintiff,

v. Civil Action No. 20-3334

THINK ANEW, INC., OPINION Defendant.

John Michael Vazquez, U.S.D.J.

This action arises out of Defendant’s alleged breach of a Master Services Agreement (“MSA”) entered into by the parties. Currently pending is Defendant’s motion to dismiss Plaintiff’s Complaint (“Compl.”) for lack of personal jurisdiction, or in the alternative, to dismiss, transfer, or stay the case for improper venue. D.E. 7. The Court reviewed the parties’ submissions1 in support and in opposition and decided the motion without oral argument pursuant to Fed. R. Civ. P. 78(b) and L. Civ. R. 78.1(b). For the reasons stated below, Defendant’s motion is DENIED. I. BACKGROUND Plaintiff Externetworks, Inc. (“Externetworks”) is a New Jersey corporation. Compl. ¶ 1. Defendant Think Anew, Inc. (“Think Anew”) is a Mississippi corporation. Id. ¶ 2. Defendant was retained to perform a project, and subsequently had discussions with Plaintiff about retaining

1 Defendant’s motion to dismiss, D.E. 7 (“Br.”); Plaintiff’s opposition, D.E. 10 (“Opp.”); and Defendant’s reply in further support of their motion to dismiss, D.E. 18 (“Reply”). Plaintiff to assist with the project. Br. at 2-3. In October 2019, Plaintiff and Defendant entered into a Business Associate Agreement, Confidentiality and Non-Disclosure Agreement, and Covenant Not to Complete as part of their discussions regarding Plaintiff’s potential provision of services. Id. at 3. Each of the agreements included a choice-of-law and choice-of-forum provision mandating that all disputes between Externetworks and Think Anew arising from the agreements

be brought exclusively in Mississippi state or federal court. Id.; D.E. 7-4 at 10, 12, 22. On November 18, 2019, Plaintiff and Defendant entered into the MSA, pursuant to which Plaintiff agreed to provide services and personnel to Defendant in connection with the project. Compl. ¶ 1; Br. at 5. The MSA contains a clause (the “Forum Selection Clause”), which provides as follows: The MSA is to be governed by and construed in accordance with the laws of the State of New Jersey. Jurisdiction and venue for any action arising under this MSA is exclusively in the state or federal courts located in Middlesex County, New Jersey. The parties waive any other choice of venue.

Compl. ¶ 3. The MSA also contains a clause (the “Merger Clause”) which provides as follows: The MSA and the Service Attachments set forth the entire understanding of the parties with respect to the subject matter hereof and is binding upon both parties in accordance with its terms. There are no understandings, representations or agreements other than those set forth herein and in the Service Attachments. Each party, along with its respective legal counsel, has had the opportunity to review and modify this MSA. Accordingly, in the event of any ambiguity, such ambiguity will not be construed in favor of, or against either party.

Id. Plaintiff alleges that it provided the services as required under the MSA. Id. ¶ 4. Plaintiff further alleges that Defendant breached the MSA and owes Plaintiff money due for the services provided under the MSA. Id. ¶ 5. On February 20, 2020, Plaintiff’s counsel sent Defendant a demand letter stating that Defendant owed $178,675.00 and “[u]nless payment is received within five (5) days from the date hereof, ExterNetworks will proceed with the filing of a lawsuit in New Jersey to collect the monies due and owing to it, including attorneys’ fees, interest, and other expenses.” Opp. at 4; D.E. 10-8 at 3 (emphasis in original). On February 24, 2020, one day prior to the deadline set forth in the demand letter, Think Anew filed suit in Mississippi state court. Br.

at 6; D.E. 7-5. The Mississippi suit has since been removed to federal court in the Southern District of Mississippi. Br. at 6; D.E. 7-7. On February 25, 2020, Plaintiff filed the present action in the Superior Court of New Jersey, Middlesex County. D.E. 1. On March 27, 2020, Defendant removed the action to federal court. Id. Plaintiff’s Complaint states counts for breach of contract, quantum meruit, failure to pay a book account balance, and breach of the duty of good faith and fair dealing. Id. at 5-6. The current motion followed. II. STANDARD OF REVIEW In a motion to dismiss for lack of personal jurisdiction, the plaintiff “bears the burden of

demonstrating the facts that establish personal jurisdiction.” Pinker v. Roche Holdings Ltd., 292 F.3d 361, 368 (3d Cir. 2002). Initially, a court “take[s] the allegations of the complaint as true.” Dayhoff Inc. v. H.J. Heinz Co., 86 F.3d 1287, 1302 (3d Cir. 1996). However, once a defendant raises a jurisdictional defense, “a plaintiff bears the burden of proving by affidavits or other competent evidence that jurisdiction is proper.” Id.; see also Time Share Vacation Club v. Atl. Resorts, Ltd., 735 F.2d 61, 66 n.9 (3d Cir. 1984). Plaintiff must establish “with reasonable particularity sufficient contacts between the defendant and the forum state.” Otsuka Pharm. Co. v. Mylan Inc., 106 F. Supp. 3d 456, 462 (D.N.J. 2015) (citing Mellon Bank (E) PSFS, Nat’l Ass’n v. Farino, 960 F.2d 1217, 1223 (3d Cir. 1992)). Yet, in reviewing the evidence, a court must “accept all of the plaintiff’s allegations as true and construe disputed facts in favor of the plaintiff.” Carteret Sav. Bank v. Shushan, 954 F.2d 141, 142 n.1 (3d Cir. 1992); see also Metcalfe v. Renaissance Marine, Inc. 566 F.3d 324, 330 (3d Cir. 2009) (“[I]t is well established that in deciding a motion to dismiss for lack of jurisdiction, a court is required to accept the plaintiff’s allegations as true, and is to construe disputed factors in favor of the plaintiff”) (internal quotation

marks omitted). Therefore, in determining whether personal jurisdiction exists, the Court looks beyond the pleadings to all relevant evidence and construes all disputed facts in favor of the plaintiff. Defendant argues in the alternative that the case should be dismissed, transferred, or stayed based on improper venue, pursuant to Fed. R. Civ. P. 12(b)(3). D.E. 7 at 1. Federal Rule of Civil Procedure 12(b)(3) permits a motion to dismiss for improper venue. The “defendant[s]…bear the burden of showing improper venue.” Myers v. Am. Dental Ass’n, 695 F.2d 716, 724-25 (3d Cir. 1982). When deciding a motion for improper venue, the Court “accepts the plaintiffs[’] well-pled allegations regarding venue as true, . . . draws all reasonable inferences from those allegations in

the plaintiffs[’] favor, and . . . resolves any factual conflicts in the plaintiffs[’] favor[.]” Shah v. Centurum, Inc., Civ. No. 10-2015, 2011 WL 1527334, at *2 (D.N.J. Apr. 20, 2011) (quoting Quarles v. Gen. Inv. & Dev. Co., 260 F. Supp. 2d 1, 8 (D.D.C. 2003)) (internal quotation marks omitted). But “[a] court need not accept the plaintiff’s well-pled factual allegations when they are contradicted by the defendant’s affidavits.” Id.

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