McNulty v. J.H. Miles & Co.

913 F. Supp. 2d 112, 2012 WL 6652824, 2012 U.S. Dist. LEXIS 179899
CourtDistrict Court, D. New Jersey
DecidedDecember 19, 2012
DocketNo. 12-2390 (NLH/KMW)
StatusPublished
Cited by13 cases

This text of 913 F. Supp. 2d 112 (McNulty v. J.H. Miles & Co.) 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.

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McNulty v. J.H. Miles & Co., 913 F. Supp. 2d 112, 2012 WL 6652824, 2012 U.S. Dist. LEXIS 179899 (D.N.J. 2012).

Opinion

OPINION

HILLMAN, District Judge.

This matter comes before the Court by way of Defendant J.H. Miles and Company, Inc.’s motion [Doc. No. 3] to transfer this action to the United States District Court for the Eastern District of Virginia, Norfolk Division, pursuant to 28 U.S.C. § 1404(a). Also before the Court is Defendant’s motion [Doc. No. 4] seeking to partially dismiss Plaintiffs’ complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). The Court has considered the parties’ submissions and decides this matter pursuant to Federal Rule of Civil Procedure 78.

For the reasons expressed below, Defendant’s motion to transfer venue to the United States District Court for the Eastern District of Virginia, Norfolk Division is granted. In light of this transfer, Defendant’s motion to partially dismiss will be referred to the transferee court for resolution.

I. JURISDICTION

The Court exercises jurisdiction over this matter pursuant to 28 U.S.C. § 1332 based on complete diversity of citizenship between the parties and an amount in controversy in excess of $75,000. Plaintiff Thomas E. McNulty (“McNulty”) is a citizen of the state of New Jersey. Plaintiff Ocean Bay Harvesters, Inc. (“Ocean Bay”) is incorporated and maintains its principal place of business in the state of New Jersey and is therefore deemed to be a citizen of the state of New Jersey. Defendant J.H. Miles and Company, Inc. (“J.H. Miles”) is incorporated, and maintains its principal place of business, in Virginia. Therefore, complete diversity of citizenship exists between the parties. The amount in controversy is met because the allegations contained in Plaintiffs’ complaint sufficiently demonstrate that the damages sought in this action are in excess of $75,000, exclusive of interest and costs.

II. BACKGROUND

As alleged in the complaint, McNulty and Ocean Bay are engaged in the business of commercial clamming operations whereby Plaintiffs harvest surf clams for sale to consumers by virtue of their own[114]*114ership of several fishing vessels and allocation permits issued by the federal and state ■ governments. (Pis.’ Compl. [Doc. No. 1] ¶¶ 1-2.) .Defendant J.H. Miles is similarly engaged in the business of commercial clamming operations for the harvesting of surf clams. (Id. ¶ 3.) In approximately January of 2006, the parties entered into a contract entitled the “Surf Clam Shell Stock Supply Agreement” (hereinafter, “the Contract”), whereby Defendant allegedly “agreed to buy clams from the Plaintiffs in the minimum amount of 136,640 bushels per calendar year during the term of the Contract ... [from] January 1, 2006 through December 31, 2010.” (Id. ¶ 4; see generally Surf Clam Shell Stock Supply Agreement, Ex. A. to Aff. of John R. Miles [Doc. No. 3-2].) Plaintiffs allege that the Contract set forth an agreed upon price per bushel for the surf clams based on the prevailing market price. (Pls.’s Compl. ¶ 5; see also Surf Clam Shell Stock Supply Agreement, Ex. A. to Aff. of John R. Miles [Doc. No. 3-2] 5.)

According to Plaintiffs, for the calendar years 2009 and 2010, Defendant J.H. Miles “failed to purchase the minimum amount of clams pursuant to the Contract and, despite due demand therefore made by Plaintiffs ..., the Defendant ... failed to pay the balance owed to the Plaintiffs[.]” (Pls.’s Compl. ¶¶ 6-7.) Based on this alleged failure, Plaintiffs seek damages in the aggregate amount of $1,375,712.00 for the 2009 and 2010 calendar years. (Id.) Additionally, Plaintiffs also seek damages in the amount of $1,139,424.00 for Defendant’s alleged failure to purchase the required minimum amount of clams for the 2011 calendar year under a theory that the Contract was “tacitly renewed” beyond the initial term ending on December 31, 2010. (Id. ¶ 8.) Plaintiffs contend that because Defendant purchased surf clams from Plaintiffs pursuant to the terms of the Contract in the 2011 calendar year, Defendant “tacitly renewed” the contract for an additional five year term from January 1, 2011 through December 31, 2015'. (Id.) Finally, Plaintiffs further maintain that because the Contract was renewed by Defendant’s 2011 purchase of clams, “Defendant continues to breach [the] Contract by failing to purchase the minimum number of clams” for the 2012 and that “Defendant has a continuing obligation to buy clams from the Plaintiffs.” (Id. ¶ 9.)

Based on these allegations, Plaintiffs bring claims against J.H. Miles for breach of contract, unjust enrichment, detrimental reliance, and material misrepresentation. (Id. ¶¶ 10-20.) Plaintiffs originally filed suit in the Superior Court of New Jersey Law Division for Cape May County on March 19, 2012. On April 23, 2012, Defendant removed the action to United States District Court for the District of New Jersey pursuant to 28 U.S.C. §§ 1441, 1446. Subsequently, Defendant filed the pending motions seeking to transfer venue in this action to the Eastern District of Virginia, Norfolk Division and to partially dismiss Plaintiffs’ complaint.

III. DISCUSSION

In the present motion, Defendant J.H. Miles seeks to transfer this action to the Eastern District of Virginia pursuant to 28 U.S.C. § 1404(a). Section 1404(a) provides in pertinent part 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 or to any district or division to which all parties have consented.” 28 U.S.C. § 1404(a).

As the Supreme Court has recognized, Section 1404(a) “is intended to place discretion in the district court to adjudicate [115]*115motions for transfer according to an individualized, case-by-case consideration of convenience and fairness.” Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29, 108 S.Ct. 2239, 101 L.Ed.2d 22 (1988). Not only are “Section 1404(a) transfers ... discretionary determinations made for the convenience of the parties[, but they] ... presuppose that the court has jurisdiction and that the case has been brought in the correct forum.” Lafferty v. St. Riel, 495 F.3d 72, 76 (3d Cir.2007) (citing Jumara v. State Farm Ins. Co., 55 F.3d 873, 878 (3d Cir.1995); 17A Moore’s Federal Practice, § 111.02 (Matthew Bender 3d ed.2006)).

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913 F. Supp. 2d 112, 2012 WL 6652824, 2012 U.S. Dist. LEXIS 179899, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcnulty-v-jh-miles-co-njd-2012.