Icon Industrial Controls Corp. v. Cimetrix, Inc.

921 F. Supp. 375, 1996 U.S. Dist. LEXIS 4468, 1996 WL 161724
CourtDistrict Court, W.D. Louisiana
DecidedApril 5, 1996
DocketCivil Action 95-1669
StatusPublished
Cited by9 cases

This text of 921 F. Supp. 375 (Icon Industrial Controls Corp. v. Cimetrix, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Icon Industrial Controls Corp. v. Cimetrix, Inc., 921 F. Supp. 375, 1996 U.S. Dist. LEXIS 4468, 1996 WL 161724 (W.D. La. 1996).

Opinion

MEMORANDUM RULING

PAYNE, United States Magistrate Judge.

I. OVERVIEW

This antitrust action brought by Icon Industrial Controls Corporation (“ICON”) raises intriguing issues of personal jurisdiction and venue. It is not seriously contended that any of the defendants, Cimetrix, Inc. (“Cimetrix”), American Robot Corporation (“ARC”), Delta Tau Data Systems, Inc. (“Delta”) and Brigham Young University (“BYU”) — all foreign corporations — have significant contacts with Louisiana. It is also apparent that few, if any, of the events giving rise to this dispute occurred in this state. In response to the defendants’ motions to dismiss for lack of personal jurisdiction and improper venue, however, plaintiff ICON, a Louisiana corporation whose principal place of business is located in Shreveport, Louisiana, contends that personal jurisdiction and venue are present in this district, as well as in each and every other judicial district in the United States, through a combined application 15 U.S.C. § 22 (Section 12 of the Clayton Act) and the general venue provisions of 28 U.S.C. § 1391(c).

For the reasons which follow, the court concludes that ICON’S position with respect to personal jurisdiction and venue is correct: this action literally may be brought in any judicial district. The worldwide service of process provision contained in Section 12 of the Clayton Act permits the exercise of personal jurisdiction anywhere in the country, and the existence of personal jurisdiction makes venue appropriate in any district under 28 U.S.C. § 1391(c). The result seems to depart from the traditional notion that the district where an action is litigated, if not a district where any defendant resides, should have some connection to the events giving rise to the underlying controversy. Nevertheless, ICON’S position is supported both by the wording of the referenced statutes and by the pertinent jurisprudence. Accordingly, the defendants’ motions to dismiss for lack of personal jurisdiction and/or improper venue are denied.

Defendants BYU and Cimetrix alternatively seek a transfer of the action to the United States District Court for the District of Utah. They rely on 28 U.S.C. § 1404(a), which provides that “[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.” Having requested supplemental briefing on the § 1404(a) issue, the court concludes that the moving defendants have not made the showing necessary to warrant a transfer. Therefore, the motions to transfer are also denied.

II. PERTINENT FACTS

In its first amended complaint, ICON describes the factual basis of its claims as follows:

10.
Plaintiff and defendants are competitors in the sale of operating systems to control robotics and machine tools. They also compete in the research and development of new technology of computer operating systems to control robotics and machine tools.
11.
Defendants have entered into a contract, combination or conspiracy with each other to stop or slow ICON’S development and sale of a new open architecture computer operating system to control robotics and machine tools.
*377 12.
As part of the contract, combination or conspiracy, defendants have knowingly disseminated false information about the new open architecture computer operating system to control robotics and machine tools being developed by ICON. Furthermore, as part of the contract, combination or conspiracy, the defendants have told at least one potential purchaser and collaborator that entering into any relationship with ICON would be unethical.
13.
As a result of defendants’ contract, combination or conspiracy, ICON’S employees have had to expend large numbers of hours and money responding to the false information disseminated by the defendants. Furthermore, upon information and belief, collaborators who ICON has identified as being necessary to the long-term financial success of the project have refused to be involved in the development of the new open architecture computer system to control robotics and machine tools.
14.
Defendants’ purpose in acting together clearly is to injure competition and to crush ICON. To the extent that research and development is stymied, consumers and competition lose.

Based on these allegations, ICON asserts a federal antitrust claim under Section One of the Sherman Act, as well as state law claims for unfair trade practices (La.R.S. 51:1401), antitrust violations (R.S. 51:122), “injurious falsehood,” and “abuse of rights.” •

ICON does not allege in any detail where the defendants engaged in the alleged wrongful conduct. The court infers from ICON’S silence as to that issue in its memorandum in opposition to the pending motions that, with one possible exception, it is not ICON’S position that any acts taken in furtherance of the “contract, combination or conspiracy” occurred in Louisiana. 1 All moving defendants deny that they have undertaken any significant activity in Louisiana of any kind.

BYU is a Utah nonprofit corporation with campuses at Provo, Utah and Laie, Hawaii. Cimetrix is a Nevada corporation which maintains its principal place of business in Provo, Utah. Delta is a California corporation, and ARC is domiciled in Pennsylvania. In support of their pending motions, BYU, Cimetrix and Delta have submitted affidavits indicating that they do not transact business in Louisiana, own property in Louisiana or otherwise have any significant contacts with this state. 2 Plaintiff has presented no evidence to the contrary.

III. LAW AND ANALYSIS

(A) Personal Jurisdiction

Consideration of the issues presented by the defendants’ motions brings to mind the insoluble question of whether the chicken or the egg comes first. Seemingly it is proper to first determine whether there is personal jurisdiction over the defendants in Louisiana, and then to move to the narrower question of whether the Western District of Louisiana is an appropriate venue under the applicable federal statutes. In this case, however, the two issues are not easily separated, largely because the asserted basis for *378 personal jurisdiction is contained within a statute that provides special venue and service of process rules for antitrust actions.

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Bluebook (online)
921 F. Supp. 375, 1996 U.S. Dist. LEXIS 4468, 1996 WL 161724, Counsel Stack Legal Research, https://law.counselstack.com/opinion/icon-industrial-controls-corp-v-cimetrix-inc-lawd-1996.