Mason Sales, LLC v. Talent Creation, LTD, and Mornington Corp., aka Mornington Corporation

CourtDistrict Court, M.D. Tennessee
DecidedMarch 17, 2026
Docket3:24-cv-00092
StatusUnknown

This text of Mason Sales, LLC v. Talent Creation, LTD, and Mornington Corp., aka Mornington Corporation (Mason Sales, LLC v. Talent Creation, LTD, and Mornington Corp., aka Mornington Corporation) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mason Sales, LLC v. Talent Creation, LTD, and Mornington Corp., aka Mornington Corporation, (M.D. Tenn. 2026).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF TENNESSEE NASHVILLE DIVISION

MASON SALES, LLC, ) ) Plaintiff, ) ) v. ) No. 3:24-cv-00092 ) TALENT CREATION, LTD, and ) MORNINGTON CORP., aka ) MORNINGTON CORPORATION, ) ) Defendants. )

MEMORANDUM OPINION Mason Sales, LLC (“Mason Sales”) claims that Talent Creation, LTD (“Talent Creation”)—a Chinese manufacturer—and Mornington Corp. (“Mornington”)—the New York- based subsidiary—owe it $750,000 in unpaid sales commissions. Talent Creation and Mornington move to dismiss the First Amended Complaint (Doc. No. 63) (“FAC”) for insufficient service, lack of personal jurisdiction, improper venue, and failure to state a claim. (Doc. No. 64). The motion is ripe for decision. (Doc. Nos. 65, 69, 71). For the reasons set forth below, the motion will only be granted in part under Rule 12(b)(6). I. FACTUAL ALLEGATIONS A. The Dispute Mason Sales is a Tennessee company that served as a commission-based sales representative for Defendants from approximately 2004 to 2023. (FAC ¶¶ 42-46, 64-65; Doc. No. 65-2 ¶¶ 21-23). Mornington is a wholly owned subsidiary of Talent Creation. (Doc. No. 65-2 ¶¶ 3-4). Kelvin Chao, also known as Renyu Cao, controls both companies. (FAC ¶¶ 36-37). In April 2014, Mason Sales and Talent Creation memorialized their oral arrangement in a one-page memorandum providing that Mason Sales will receive “a 3% commission on net receivables from Rawlings Sporting Goods US, Southeastern Shirt, and any future customers,” and a “2% commission on net receivables from Rawlings Japan,” with commissions “paid quarterly.” (Doc. No. 63-1). Mason Sales alleges an oral agreement with Mornington on the same terms. (FAC ¶¶ 16-17). Mason Sales performed, but Defendants stopped paying commissions

after the first quarter of 2022, and Talent Creation terminated the relationship in June 2023. (Id. ¶¶ 78-79, 89). To recover the sales commissions due, Mason Sales asserts five claims: breach of contract, promissory estoppel, quantum meruit, equitable accounting, and breach of fiduciary duty. (Id. ¶¶ 73-158). B. Procedural History This is Mason Sales’s second lawsuit against Defendants. In February 2023, Mason Sales sued in the Western District of Texas. The court dismissed Mornington for lack of subject matter jurisdiction and both parties for lack of personal jurisdiction. (See Doc. No. 65-5). Mason Sales then refiled in this District on January 29, 2024. (Doc. No. 1). Defendants moved to dismiss the original Complaint in April 2024 for insufficient service, lack of personal jurisdiction, improper venue, and failure to state a claim. (Doc. No. 23). The

Magistrate Judge allowed the parties in May 2024 to engage in threshold jurisdictional discovery limited to the issue of personal jurisdiction. (Doc. No. 34). Over the next several months, the parties engaged in a series of jurisdictional discovery disputes. (See Doc. Nos. 35, 39, 40, 41, 49, 50, 51, 56, 57, 58). Jurisdictional discovery concluded in January 2025, and Mason Sales moved for leave to amend (Doc. No. 59), which the Magistrate Judge granted on March 4, 2025. (Doc. No. 62). Mason Sales filed the FAC that same day. Defendants moved to dismiss again on March 18, 2025, (Doc. No. 64), and briefing concluded on April 8, 2025, (Doc. No. 71). In June 2025, after briefing closed, Mason Sales filed affidavits of service for both Defendants through the Tennessee Secretary of State. (Doc. Nos. 72, 73). In the more than two years since Mason Sales brought this case, no scheduling order has been entered; no deadlines for discovery, dispositive motions, or trial have been set; and neither party has requested a scheduling conference or otherwise sought to advance the case toward resolution on the merits. No further filings have been made by either party since June 2025 (and

presumably, the parties have not conducted further discovery) despite there being no stay. II. ANALYSIS Defendants move to dismiss on several grounds. The Court will address each. For the reasons set forth below, the Court finds that service of process was proper, that the Court has personal jurisdiction over Defendants, and that venue is proper. Several of Mason Sales’s legal claims, however, fail to state a claim and will be dismissed. A. Service of Process Defendants first argue that Mason Sales failed to properly serve them. (Doc. No. 65 at 2- 6; Doc. No. 71 at 1-4). The Court disagrees. Though the initial service on the receptionist was insufficient, service on the Tennessee Secretary of State was sufficient. 1. Mason Sales’s Efforts to Serve Defendants The record reflects the following timeline and service efforts.

January 29, 2024: Mason Sales sues. (Doc. No. 1).

February 8, 2024: Mason Sales files a “corrected” original Complaint. (Doc. No. 9).

March 25, 2024: A process server serves Sharissa James at 173 Huguenot Street, Suite 200, New Rochelle, New York (Mornington’s listed address). (Doc. No. 20). Ms. James is not affiliated with Mornington—she is a receptionist at the Regus office where Mornington lists its address. (Doc. No. 65-2 ¶¶ 16-24). This is Mason Sales’s only attempt to personally serve either Defendant.

April 9, 2024: Mason Sales requests waiver of service under Rule 4(d). (Doc. No. 69-19). Defendants decline. April 15, 2024: Defendants move to dismiss the original Complaint, raising insufficient service as a ground. (Doc. No. 23).

March 4, 2025: Mason Sales files the FAC. (Doc. No. 63).

March 18, 2025: Defendants again move to dismiss, raising insufficient service of process. (Doc. No. 65).

April 1, 2025: Mason Sales, for the first time, raises service on the Tennessee Secretary of State in its opposition to the motion to dismiss. (Doc. No. 69 at 7). That same day, Mason Sales sends copies of the summons and Complaint for both Defendants to the Secretary of State. (Doc. Nos. 72, 73).

April 17, 2025: The Secretary of State mails certified copies to the Defendants at Mornington’s Address in New York. (Doc. Nos. 72, 73).

May 22, 2025: The Secretary of State receives return receipts. (Doc. Nos. 72, 73).

June 9, 2025: Mason Sales files the service affidavits. (Doc. Nos. 72, 73).

2. Service of Process Legal Standard Rule 12(b)(5) permits the Court to dismiss an action for “insufficient service of process.” Fed. R. Civ. P. 12(b)(5); see also King v. Taylor, 694 F.3d 650, 655 (6th Cir. 2012). On a Rule 12(b)(5) motion, the “plaintiff bears the burden of proving that service was proper.” Savoie v. City of E. Lansing, No. 21-2684, 2022 WL 3643339, at *2 (6th Cir. Aug. 24, 2022) (quoting Breezley v. Hamilton Cnty., 674 F. App’x 502, 505 (6th Cir. 2017)). “Courts may look to record evidence and uncontroverted affidavits in determining whether plaintiffs have met this burden.” Spencer v. Caracal Int’l, LLC, 516 F. Supp. 3d 755, 758 (M.D. Tenn. 2021) (cleaned up). Rule 4(m) requires service “within 90 days after the complaint is filed.” Fed. R. Civ. P. 4(m). Absent a showing of good cause, the Court “must dismiss the action without prejudice or order that service be made within a specified time.” Id. 3. Mason Sales Properly Served Defendants Through the Tennessee Secretary of State Mornington and Talent Creation are foreign companies. Rule 4(h)(1) provides that service on a foreign company in the United States must be made by following state law or by delivering process to “an officer, a managing or general agent, or any other agent authorized by appointment or by law to receive service of process.” Fed. R. Civ. P. 4

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Mason Sales, LLC v. Talent Creation, LTD, and Mornington Corp., aka Mornington Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mason-sales-llc-v-talent-creation-ltd-and-mornington-corp-aka-tnmd-2026.