JMR Capital Holdings, Inc., et al. v. MDR United, LLC, et al.

District Court, D. New Jersey·Decided August 31, 2026·No. 2:25-cv-18583·Unknown

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

JMR CAPITAL HOLDINGS, INC., et al.,

Plaintiffs, Civil Action No. 25-18583

v. OPINION

MDR UNITED, LLC, et al., August 31, 2026

Defendants. SEMPER, District Judge. THIS MATTER comes before the Court on Defendant Mighty Dog Roofing United, LLC (“MDR”), Josh Skolnick (“Skolnick”), Turp Ricketts (“Ricketts”), Brandon Zurek (“Zurek”), Chris Phalen (“Phalen”), Luke Schwartz (“Schwartz”), and Joshua Hoffmann’s (“Hoffmann”) (collectively, “Defendants”) Motion to Transfer Venue, or in the alternative, Motion to Dismiss the Complaint filed by Plaintiffs JMR Capital Holdings, Inc. (“JMR”), MSG Contracting, Corp. (“MSG”), Scale Beyond, LLC (“Scale”), and On Top Roofing, Corp. (“On Top Roofing”) (collectively, “Plaintiffs”). (ECF 9, “Motion” or “Mot.”) Plaintiffs opposed the Motion. (ECF 22, “Opposition” or “Opp.”) Defendants filed a reply. (ECF 24, “Reply.”) Defendants subsequently filed a Motion for Leave to File Supplemental Authority in support of its Motion to Dismiss. (ECF 26.) The Court has decided the Motions upon the submissions of the parties, without oral argument, pursuant to Federal Rule of Civil Procedure 78 and Local Civil Rule 78.1. For the reasons stated below, Defendants’ Motion to Transfer Venue is GRANTED, and Defendants’ Motion to Dismiss and Motion for Leave to File Supplemental Authority are DISMISSED as moot. I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY1 A. Factual Background

This matter arises out of various franchise agreements made between Plaintiffs and Defendants. Plaintiffs are an assortment of New Jersey corporations and limited liability companies that entered into Franchise Agreements with Defendants to operate roofing businesses. (Compl. ¶¶ 2-5.) Defendant MDR is a Pennsylvania limited liability company that maintains its principal place of business in Nebraska. (Id. ¶ 6.) Defendant Hoffman is a senior MDR executive and a citizen of Illinois. (Id. ¶ 7.) Defendants Zurek, Skolnick, Schwartz, Ricketts, and Phalen are agents of MDR and citizens of Nebraska. (Id. ¶¶ 8-12, 15.) Plaintiffs allege that they learned about and became interested in investing in the Mighty Dog Roofing franchise system from 2021 to 2022. (Id. ¶ 28.) According to Plaintiffs, Defendants fraudulently induced them to invest in the franchise system by disseminating falsified financial

performance figures and fabricating a proprietary business model in violation of the FTC Franchise Rule. (Id. ¶¶ 17, 30-54.) Plaintiffs claim that the false information induced them into signing Franchise Agreements. (Id. ¶ 31.) JMR acquired three territories from MDR by executing three Franchise Agreements between March 11, 2022 and June 19, 2023. (Id. ¶¶ 2, 51; Ex. A.) Scale acquired three territories from MDR by executing three Franchise Agreements on July 28, 2022. (Id. ¶¶ 3, 52; Ex. B.) MSG acquired five territories from MDR by executing five Franchise

1 The facts and procedural history are drawn from the Complaint, (ECF 1, “Complaint” or “Compl.”), and documents integral to or relied upon by the First Amended Complaint. See In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (3d Cir. 1997). For the purposes of a motion to dismiss, the facts drawn from the Complaint are accepted as true. See Fowler v. UMPC Shadyside, 578 F.3d 203, 210-11 (3d Cir. 2009). Agreements on November 9, 2022. (Id. ¶¶ 4, 53; Ex. C.) On Top Roofing acquired three territories from MDR by executing three Franchise Agreements on June 19, 2023. (Id. ¶¶ 5, 54; Ex. D.) Relevant here are the Franchise Agreements’ forum selection clauses. JMR’s Franchise Agreements indicate that the parties agreed to personal jurisdiction in the United States District Court for the Eastern District of Pennsylvania.2 (Ex. A § 18.4 (“The parties expressly agree to the

jurisdiction and venue of any court of general jurisdiction in Bucks County, Pennsylvania and the jurisdiction and venue of the United States District Court for the Eastern District of Pennsylvania.”).) Alternatively, Scale, MSG, and On Top Roofing’s Franchise Agreements indicate that the parties agreed to personal jurisdiction in the United States District Court for the District of Nebraska. (Ex. B § 18.4 (“The parties expressly agree to the jurisdiction and venue of any court of general jurisdiction in Douglas County, Nebraska and the jurisdiction and venue of the United States District Court for the District of Nebraska.”); Ex. C § 18.4 (same); Ex. D § 18.4 (same).) Also relevant here are the Franchise Agreements’ choice of law provisions, which all

provide that Pennsylvania law governs all disputes arising out of the agreements. (See Ex. A § 18.1 (“This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without reference to its conflict of laws principals.”); Ex. B §

2 The Court notes that Defendants contend JMR’s Franchise Agreements contain a forum selection clause establishing personal jurisdiction in the United States District Court for the District of Nebraska. (See Mot. 9.) However, as discussed, the forum selection clause in the agreements establishes personal jurisdiction in the United States District Court for the Eastern District of Pennsylvania. (See Ex. A § 18.4; ECF 9-8, Ex. C § 18.4.) Further, in a subsequently filed letter, Defendants clarified that they still seek to transfer the entire case to the District of Nebraska. (See ECF 29.) As such, as the parties agree, the Court’s analysis does not change. (See id.; ECF 30.) 18.1 (same); Ex. C § 18.1 (same); Ex. D § 18.1 (same).) 1. Procedural History Plaintiffs initiated this suit on December 12, 2025, asserting five causes of action: fraudulent and negligent misrepresentation (Counts I-II) and violations of the New Jersey

Consumer Fraud Act (Count V) and Pennsylvania Unfair Trade Practices and Consumer Protection Law (Count VI) against all Defendants, and breaches of contract (Count III) and the implied covenant of good faith and fair dealing (Count IV) against MDR. (See Compl. ¶¶ 62-88). Defendants filed the present Motion to Transfer Venue, or in the alternative, Motion to Dismiss, on February 20, 2026. (Mot.) Plaintiffs opposed on March 27, 2026. (Opp.) Defendants filed a reply on April 10, 2026. (Reply.) Defendants also filed a Motion for Leave to File Supplemental Authority in support of their Motion to Dismiss on July 31, 2026. (ECF 26.) II. LEGAL STANDARDS A. 28 U.S.C. § 1404(a) “Section 1404(a) permits a district court to transfer a case to any other district court where

Free access — add to your briefcase to read the full text and ask questions with AI

JMR Capital Holdings, Inc., et al. v. MDR United, LLC, et al., (D.N.J. 2026).

JMR Capital Holdings, Inc., et al. v. MDR United, LLC, et al. (JMR Capital Holdings, Inc., et al. v. MDR United, LLC, et al.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Stewart Organization, Inc. v. Ricoh Corp.
487 U.S. 22 (Supreme Court, 1988)
Goodyear Dunlop Tires Operations, S. A. v. Brown
131 S. Ct. 2846 (Supreme Court, 2011)
Plum Tree, Inc. v. Stockment
488 F.2d 754 (Third Circuit, 1973)
Budget Blinds, Inc. v. White
536 F.3d 244 (Third Circuit, 2008)
Fowler v. UPMC SHADYSIDE
578 F.3d 203 (Third Circuit, 2009)
Yocham v. Novartis Pharmaceuticals Corp.
565 F. Supp. 2d 554 (D. New Jersey, 2008)
Park Inn International, L.L.C. v. Mody Enterprises, Inc.
105 F. Supp. 2d 370 (D. New Jersey, 2000)
Santi v. National Business Records Management, LLC
722 F. Supp. 2d 602 (D. New Jersey, 2010)
Cadapult Graphic Systems, Inc. v. Tektronix, Inc.
98 F. Supp. 2d 560 (D. New Jersey, 2000)
Daimler AG v. Bauman
134 S. Ct. 746 (Supreme Court, 2014)
Dolores Dawes v. Publish America LLLP
563 F. App'x 117 (Third Circuit, 2014)
In Re Howmedica Osteonics Corp.
867 F.3d 390 (Third Circuit, 2017)
Ina Collins v. Mary Kay Inc
874 F.3d 176 (Third Circuit, 2017)
Ferratex, Inc. v. U.S. Sewer & Drain, Inc.
121 F. Supp. 3d 432 (D. New Jersey, 2015)
Nitterhouse Concrete Prods., Inc. v. Dobco Grp., Inc.
305 F. Supp. 3d 580 (D. New Jersey, 2018)