HEWLETT-PACKARD FINANCIAL SERVICES COMPANY v. NEW TESTAMENT BAPTIST CHURCH, INCORPORATED OF MIAMI, FLORIDA

CourtDistrict Court, D. New Jersey
DecidedAugust 13, 2019
Docket2:18-cv-10230
StatusUnknown

This text of HEWLETT-PACKARD FINANCIAL SERVICES COMPANY v. NEW TESTAMENT BAPTIST CHURCH, INCORPORATED OF MIAMI, FLORIDA (HEWLETT-PACKARD FINANCIAL SERVICES COMPANY v. NEW TESTAMENT BAPTIST CHURCH, INCORPORATED OF MIAMI, FLORIDA) 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
HEWLETT-PACKARD FINANCIAL SERVICES COMPANY v. NEW TESTAMENT BAPTIST CHURCH, INCORPORATED OF MIAMI, FLORIDA, (D.N.J. 2019).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

NOT FOR PUBLICATION

Civil Action No.

HEWLETT-PACKARD FINANCIAL SERVICES COMPANY, 2:18-CV-10230-MCA-SCM

Plaintiff, OPINION AND ORDER v. ON MOTION TO TRANSFER

[D.E. 25] NEW TESTAMENT BAPTIST

CHURCH, Defendant.

STEVEN C. MANNION, United States Magistrate Judge.

Before this Court is Defendant New Testament Baptist Church’s (“New Testament”) motion to transfer to the Southern District of Florida.1 Plaintiff Hewlett-Packard Financial Services (“Hewlett-Packard”) opposed the motion,2 and New Testament replied.3 The Honorable Madeline Cox Arleo, U.S.D.J., referred the motion to the undersigned for disposition.4 The Court has reviewed the parties’ submissions and heard oral argument on August 12, 2019. For the reasons stated below, New Testament’s motion to transfer is DENIED.

1 (ECF Docket Entry No. (“D.E.”) 25, Def.’s Mot. to Transfer). The Court will refer to documents by their docket entry number and the page numbers assigned by the Electronic Case Filing System. 2 (D.E. 26, Pl.’s Opp’n).

3 (D.E. 31, Def.’s Reply).

4 L. Civ. R. 72.1(a)(1). I. BACKGROUND AND PROCEDURAL HISTORY5 In this breach of contract action, Hewlett-Packard alleges that it “leased computer and computer-related equipment and financed certain software program license fees, maintenance fees, and certain equipment acquisition costs (the “Equipment”)” to New Testament pursuant to a lease and financing agreement (the “Master Lease”) and subsequent four schedules.6 Hewlett-Packard

alleges that New Testament failed to pay rent and finance charges in the amount of “more than 849,203.19.”7 Hewlett-Packard initially filed an action against New Testament in Florida state court before filing a voluntary dismissal without prejudice.8 Shortly thereafter, Hewlett-Packard filed this action in this District Court. Nearly two months after filing its Complaint, Hewlett-Packard requested, and the Clerk of Court entered, default against New Testament.9 Hewlett-Packard then moved for default judgment.10 On August 8, 2018, the Clerk of the Court entered default judgment against New Testament in the amount of $951,221.23, representing principal and pre-judgment late charges, and taxed costs of $400, plus post judgment interest.11

5 The allegations set forth within the pleadings and motion record are relied upon for purposes of this motion only. The Court has made no findings as to the veracity of the parties’ allegations. 6 (D.E. 1, Compl., at ¶¶ 3, 7–28).

7 (Id., at ¶¶ 3, 28).

8 (D.E. 25-2, Def.’s Mot., Ex. 1).

9 (D.E. 7, Pl.’s Req. for Default).

10 (D.E. 8, Pl.’s Mot. for Default J.).

11 (D.E. 10). On August 27, 2018, New Testament entered its Notice of Appearance,12 and filed a Motion to Vacate Default Judgment and Default.13 On March 7, 2019, Judge Arleo granted New Testament’s motion and ordered that “any motion to transfer shall be filed within 30 days.”14 Shortly thereafter, New Testament filed its Answer and Counterclaim against Hewlett-Packard.15 On April 3, 2019, New Testament filed the instant Motion to Transfer to the Southern

District of Florida.16 New Testament alleges that transfer should be granted because, among other reasons, Hewlett-Packard waived its rights to the forum selection clause in the Master Lease when Hewlett-Packard filed an action against New Testament in Florida; New Testament is a not-for- profit corporation of Florida; all discussions involving the Master Lease took place in Miami, Florida; all documents involving this transaction are located in Miami; key potential witnesses are located in Florida; and Hewlett-Packard regularly conducts business in Florida.17 Hewlett-Packard opposes by arguing that New Testament consented to New Jersey’s jurisdiction through the Master Lease’s forum selection clause and that New Testament fails to carry its burden for transfer.18

12 (D.E. 12, Notice of Appearance).

13 (D.E. 13 & D.E. 14, Def.’s Mot. to Vacate Default J.).

14 (D.E. 20, Order).

15 (D.E. 21, Answer & Countercl.).

16 (D.E. 25, Def.’s Mot. to Transfer).

17 (D.E. 25-6, Def.’s Mot. to Transfer Br.).

18 (D.E. 26, Pl.’s Opp’n). II. MAGISTRATE JUDGE AUTHORITY

Magistrate judges are authorized to decide any non-dispositive motion designated by the Court.19 This District specifies that magistrate judges may determine all non-dispositive pre-trial motions which include motions to transfer.20 Decisions by magistrate judges must be upheld unless “clearly erroneous or contrary to law.”21 However, decisions whether to transfer are within “the sound discretion of the trial court.”22 III. ANALYSIS AND DISCUSSION New Testament moves to transfer venue to the Southern District of Florida pursuant to 28 U.S.C. § 1404(a), which provides, “[f]or the convenience of parties and witnesses, in the interest

of justice, a district court may transfer any civil action to any other district or division where it might have been brought.”23 New Testament explains that although the Master Lease contains a forum selection clause wherein the parties consented to any court in the State of New Jersey, Hewlett-Packard waived its right to invoke this provision.24 A. Forum Selection Clause The Court must first consider the applicability of the parties’ forum selection clause before turning to Section 1404. Hewlett-Packard brought this breach of contract action in this District

19 28 U.S.C. § 636(b)(1)(A). 20 L. Civ. R. 72.1(a)(1). 21 28 U.S.C. § 636(b)(1)(A). 22 Cadapult Graphic Sys., Inc. v. Tektronix, Inc., 98 F. Supp. 2d 560, 564 (D.N.J. 2000).

23 28 U.S.C. § 1404(a).

24 (D.E. 25-6, Def.’s Mot. Br., at 6–7). Court pursuant to the forum selection clause in the Master Lease.25 However, New Testament contests the applicability of the forum selection clause.26 The forum selection clause states: (b) Consent to Jurisdiction. Lessor and Lessee consent to the jurisdiction of any local, state or Federal court located within the State of New Jersey and waive any objection relating to improper venue or forum non-conveniens to the conduct of any proceeding in any such court.27

New Testament posits that because Hewlett-Packard initially filed suit against it in Florida, Hewlett-Packard waived its right to invoke the forum selection clause.28 Hewlett-Packard disagrees by relying on the plain language of the clause, and argues that the clause does not specify that a previous filing impacts the parties’ consent to jurisdiction in New Jersey and waiver to any objection.29 In diversity cases, like here, “federal law governs enforcement of a contractual forum selection clause.”30 This is so because “[q]uestions of venue and the enforcement of forum selection clauses are essentially procedural, rather than substantive, in nature.”31 Forum selection clauses are presumed to be valid, but that presumption may be overcome upon a showing that

25 (D.E. 1, Compl., at ¶ 5).

26 (D.E. 21, Answer, at ¶ 5).

27 (D.E. 1-1, Compl., Ex. 1, at ¶ 26(b)).

28 (D.E. 25-6, Def.’s Mot. Br., at 6–7).

29 (D.E. 26, Pl.’s Opp’n, at 12).

30 Everbank Commer. Fin., Inc. v. Neighbors Glob. Holdings, LLC, 2017 WL 5598216, at * 2 (D.N.J. Nov. 21, 2017).

31 Jumara v. State Farm Ins.

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HEWLETT-PACKARD FINANCIAL SERVICES COMPANY v. NEW TESTAMENT BAPTIST CHURCH, INCORPORATED OF MIAMI, FLORIDA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hewlett-packard-financial-services-company-v-new-testament-baptist-church-njd-2019.