Manufacturing & Marketing Concepts, Inc. v. Southern California Carbide

920 F. Supp. 116, 1996 U.S. Dist. LEXIS 3837, 1996 WL 146226
CourtDistrict Court, N.D. Illinois
DecidedMarch 28, 1996
Docket95 C 5704
StatusPublished
Cited by5 cases

This text of 920 F. Supp. 116 (Manufacturing & Marketing Concepts, Inc. v. Southern California Carbide) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Manufacturing & Marketing Concepts, Inc. v. Southern California Carbide, 920 F. Supp. 116, 1996 U.S. Dist. LEXIS 3837, 1996 WL 146226 (N.D. Ill. 1996).

Opinion

MEMORANDUM OPINION AND ORDER

ALESIA, District Judge.

Before the court are plaintiff Manufacturing & Marketing Concepts, Inc.’s (“MMCI”) motion to remand this case to state court and defendants Southern California Carbide’s (“Carbide”) and Harjeet Singh’s (“Singh”) (collectively, “defendants”) motion for change of venue. For the reasons that follow, the court grants MMCI’s motion to remand and denies defendants’ motion for change of venue.

I. BACKGROUND

MMCI, an Illinois corporation with its principal place of business in Hoffman Estates, Illinois, manufactures custom machinery. Carbide, a California corporation with its principal place of business in San Diego, California, supplies component parts of the type that MMCI uses in its machines. Singh, a California resident, is the president of Carbide.

In May 1995, MMCI placed two purchase orders (“Purchase Orders 507 and 508”) with Carbide, specifying that Carbide was to deliver the items purchased by July 1995. Both purchase orders included terms and conditions, which provided for such things as damages for breach of the purchase orders and choice of forum for resolution of any disputes arising out of the purehasé orders.

*118 Carbide faded to deliver the items by the dates specified in the purchase orders. On August 9, 1995, MMCI informed defendants that it intended to sue defendants because of their failure to make timely delivery. However, on August 29, 1995, Carbide filed a four-count lawsuit against MMCI in the United States District Court for the Southern District of California. In that lawsuit, Carbide alleges that MMCI has not paid it for various goods, wares, and merchandise that Carbide sold and delivered to MMCI, including the items named in Purchase Orders 507 and 508.

On August 31, 1995, unaware of Carbide’s lawsuit, MMCI filed a lawsuit against Carbide and Singh in the Circuit Court of Cook County based on Carbide’s breach of Purchase Orders 507 and 508. On October 5, 1995, defendants removed MMCI’s case to this court. On October 11,1995, MMCI filed its motion to remand the case to the circuit court. Two days later, defendants filed their motion to transfer, which was styled as a motion for a change of venue, seeking to have this ease transferred to the district court in the Southern District of California.

II. DISCUSSION

A. Motion to Remand to State Court

MMCI moves to remand its cause of action to the Circuit Court of Cook County on the ground that the terms and conditions accompanying Purchase Orders 507 and 508 provide that lawsuits arising out of the purchase orders are to be brought in an Illinois court. Though MMCI does not specify, the court assumes that MMCI’s motion is pursuant to 28 U.S.C. § 1447(c).

Defendants contend that they never saw the terms and conditions that supposedly accompanied the purchase orders, and never agreed to such terms and conditions. Defendants also contend that the forum selection clause designates only a geographic location, and does not preclude defendants from removing this action to federal court. The court finds both arguments without merit, and finds the forum selection clause valid and enforceable.

1. Defendants’ lack of knowledge of the forum selection provision

Defendants apparently seek to create a question of fact regarding the validity of the forum selection clause by asserting that they never saw the forum selection clause and never agreed to it. Defendants contend that they received Purchase Orders 507 and 508 by fax, that each fax transmission had only one page, and that the purchase orders made no reference to terms and conditions. Defendants argue that throughout the entire relationship between the parties, MMCI had never appended a separate page for terms and conditions on its purchase orders. Singh filed an affidavit to this effect. {See Def.’s Mem. in Resp. to Pl.’s Mot. to Remand at 2-3; id. Aff. of Harjeet Singh.)

However, MMCI’s president, Roger C. Shekhar, counters Singh’s affidavit with his own, explaining the relationship between Carbide and MMCI. {See PL’s Reply Mem. in Supp. of its Mot. to Remand Ex. A.) According to Shekhar, in May 1995, MMCI began to require Carbide to comply with new terms and conditions because Carbide continually breached the delivery terms of past purchase orders. {Id. Ex. A ¶¶6-7.) On May 23, 1995, Shekhar sent a cover letter, Purchase Order 507, and the new terms and conditions by fax and by United States mail to Singh. {Id. Ex. A ¶ 7, Ex. D.) On May 25, 1995, Shekhar also sent to Singh by mail Purchase Order 508 and its terms and conditions. {Id. Ex. A ¶ 8, Ex. D.)

Defendants did not reject the purchase orders or their terms and conditions. {Id. Ex. A ¶ 9.) Defendants missed the July delivery deadline specified in both purchase orders, but made a partial, though late, delivery on August 8, 1995. {Id. Ex. A ¶ 10, Ex. F, Ex. G, Ex. H.) On August 9, 1995, after Carbide failed to meet the delivery terms specified in Purchase Orders 507 and 508, Shekhar mailed another letter to Singh informing him that MMCI intended to file a lawsuit seeking damages as specified in the terms and conditions of the purchase orders. {Id. Ex. A ¶ 11, Ex. H.)

Based on the foregoing, the court finds that the parties’ submissions to the court show unequivocally that the terms and condi *119 tions, including the forum selection clause, accompanied Purchase Orders 507 and 508, and that MMCI mailed the purchase orders and terms and conditions to defendants. Because the court finds that MMCI mailed the purchase orders and terms and conditions to defendants, it presumes that defendants received them. See, e.g., Haag v. Comm’r of Internal Revenue, 59 F.2d 516, 517 (7th Cir.1932); In re Nimz Transp., Inc., 505 F.2d 177, 179 (7th Cir.1974); Hagner v. United States, 285 U.S. 427, 430, 52 S.Ct. 417, 419, 76 L.Ed. 861 (1932).

Accordingly, the court finds no merit in defendants’ contention that they did not agree to the terms and conditions that included the forum selection clause.

2. Defendants’ right to remove action to federal court sitting in Illinois

Defendants contend that, even if they agreed to the terms and conditions in the purchase orders, they never waived their right to remove this case to federal court because the forum selection clause encompasses this court. The forum selection clause in the terms and conditions of the purchase orders states: “Any dispute arising out of this [sic] Terms & Conditions and the Purchase Orders could [sic] be settled only in an ILLINOIS COURT, the State where the customer MMCI operates her business.” (PL’s Mem.

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920 F. Supp. 116, 1996 U.S. Dist. LEXIS 3837, 1996 WL 146226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/manufacturing-marketing-concepts-inc-v-southern-california-carbide-ilnd-1996.