Michael Aquino v. Michael Breede

CourtCourt of Appeals for the Third Circuit
DecidedJuly 23, 2025
Docket24-2941
StatusUnpublished

This text of Michael Aquino v. Michael Breede (Michael Aquino v. Michael Breede) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michael Aquino v. Michael Breede, (3d Cir. 2025).

Opinion

NOT PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT _______________

No. 24-2941 _______________

MICHAEL AQUINO, M.D., Appellant

v.

MICHAEL EDWARD BREEDE _______________

On Appeal from the United States District Court for the District of New Jersey (D.C. No. 3:23-cv-02459) District Judge: Honorable Michael A. Shipp _______________

Submitted Under Third Circuit L.A.R. 34.1(a) on July 8, 2025

Before: RESTREPO, BIBAS, and CHUNG, Circuit Judges

(Filed: July 23, 2025) _______________

OPINION* _______________

* This disposition is not an opinion of the full Court and, under I.O.P. 5.7, is not binding precedent. BIBAS, Circuit Judge.

Corporate breakups can be ugly. Frustration can spill from the boardroom into the

courthouse. But it cannot be just any courthouse; it must be one with proper jurisdiction.

Dr. Michael Aquino has tried to sue multiple times in courthouses on both coasts. But the

New Jersey District Court properly held that Aquino’s third bid to find the right court fails.

Because the proper court is in Connecticut, not New Jersey, we will affirm.

Integrated Surgical LLC is a medical-device company formed in Connecticut and head-

quartered in California. It sought to develop a surgical pencil that doctors could use to

remove smoke and fluid during surgery. Michael Breede, a Connecticut resident, was

Integrated Surgical’s CEO and managing member. Aquino, a New Jersey resident, was a

member of another LLC that owned 8% of Integrated Surgical.

Integrated Surgical tried to sell its intellectual-property rights in the surgical pencil. A

New York company was the only one to make an offer: $350,000. Breede emailed the

board of Integrated Surgical, saying that Integrated Surgical would accept the offer. Aquino

responded, offering to buy it himself for $360,000. After some back and forth, Breede

signed the sale agreement but put the signature pages into escrow until Aquino could sign

the agreement and wire the money into escrow. That evening, Breede sent an email saying,

“I don’t have confirmation of the wire, but I think the deal is done.” JA 108 ¶ 62. Yet

Aquino did not send the money or sign and return the agreement that day, as he was in the

Adirondacks. Four hours later, Breede’s lawyer emailed Aquino’s lawyer to warn him

“there is no agreement to sell the assets to Mike Aquino at this point” “since we didn’t get

the wire or signature pages today.” JA 109–10 ¶ 66.

2 The next morning, Aquino faxed over the signed agreement. His lawyer then followed

up, explaining that Aquino remained ready to close the deal. But Aquino still did not wire

the money. For six more days, the lawyers exchanged emails and phone calls about the

deal. Aquino never wired the money. Then Integrated Surgical sold the intellectual prop-

erty to the original bidder.

Aquino first sued Breede, Integrated Surgical, and Integrated Surgical’s CFO and coun-

sel in California state court. After jurisdictional discovery, the court dismissed Breede for

lack of personal jurisdiction.

A month later, Aquino sued Breede again in California federal court. That court like-

wise dismissed him from the suit for lack of personal jurisdiction.

More than three years later, Aquino sued Breede a third time in New Jersey federal

court, alleging that Breede had tortiously interfered with his buying the intellectual prop-

erty. The District Court dismissed without prejudice for lack of personal jurisdiction,

explaining that Breede’s knowledge of Aquino’s residence was not enough to show that

Breede aimed his allegedly tortious conduct at New Jersey. Aquino v. Breede, 2023 WL

7195173, at *3 (D.N.J. Nov. 1, 2023). Aquino amended his complaint, and the District

Court again dismissed without prejudice for the same reason.

We review the dismissal de novo and the denial of jurisdictional discovery for abuse of

discretion, accepting Aquino’s allegations as true. Control Screening LLC v. Tech. Appli-

cation & Prod. Co. (Tecapro), HCMC-Vietnam, 687 F.3d 163, 167 (3d Cir. 2012); Toys

“R” Us, Inc. v. Step Two, S.A., 318 F.3d 446, 455 (3d Cir. 2003).

3 New Jersey’s long-arm statute lets courts exercise personal jurisdiction over non-

residents as far as allowed by federal due process. N.J. Rev. Stat. § 2A:4-30.68 (2016).

Aquino does not contend that New Jersey has general jurisdiction over Breede. In any

event, the District Court rightly held that it did not. Breede resides in Connecticut and does

not have continuous or systematic contacts with New Jersey. Daimler AG v. Bauman, 571

U.S. 117, 127 (2014).

That leaves specific personal jurisdiction. Aquino does not argue that Breede satisfied

the traditional specific-personal-jurisdiction test, which focuses on whether Breede had

enough minimum contacts with New Jersey. See Ford Motor v. Mont. Eighth Jud. Dist. Ct.

592 U.S. 351, 359 (2021). Instead, Aquino relies on the “effects” test from Calder v. Jones,

465 U.S. 783, 789 (1984). He claims that the court had specific personal jurisdiction

because (1) Breede had committed an intentional tort; (2) Aquino felt the brunt of the harm

in New Jersey, where he lives; and (3) Breede had “expressly aimed” his tortious conduct

at New Jersey such that New Jersey was “the focal point of the tortious activity.” IMO

Indus. v. Kiekert AG, 155 F.3d 254, 265 (3d Cir. 1998).

The third prong is often fatal. And it is fatal here too. Calder’s effects test does not

“carve out a special intentional torts exception … so that a plaintiff could always sue in his

or her home state.” Id. Instead, it asks whether the state was expressly targeted more than

other jurisdictions. See Hasson v. FullStory, Inc., 114 F.4th 181, 190 (3d Cir. 2024). So we

ask not just whether there were some contacts with New Jersey, but whether New Jersey

was the focus of the alleged tortious interference. IMO Indus., 155 F.3d at 268. It was not.

4 The focus of the alleged tort was Connecticut. Aquino accuses Breede of tortiously

interfering with the sale of the surgical-pencil patents. For ownership of intangible rights

like patents, we look to the state where the patent holder resides. Freres v. SPI Pharma,

Inc., 629 F. Supp. 2d 374, 387 (D. Del. 2009). Here, the patents were owned by a business

run out of Connecticut by a Connecticut-resident defendant.

Plus, though this is a tort case, “it is necessarily related to the contract … which is the

subject of the alleged tortious interference.” Remick v. Manfredy, 238 F.3d 248, 260 (3d

Cir. 2001). The focal point of that contractual interference was not New Jersey. The alleged

contract between Aquino and Breede was accepted in Connecticut. See First Camden Nat.

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Related

Calder v. Jones
465 U.S. 783 (Supreme Court, 1984)
Imo Industries, Inc. v. Kiekert Ag
155 F.3d 254 (Third Circuit, 1998)
Marten v. Godwin
499 F.3d 290 (Third Circuit, 2007)
Freres v. SPI Pharma, Inc.
629 F. Supp. 2d 374 (D. Delaware, 2009)
Daimler AG v. Bauman
134 S. Ct. 746 (Supreme Court, 2014)
Ford Motor Co. v. Montana Eighth Judicial Dist.
592 U.S. 351 (Supreme Court, 2021)
Kenneth Hasson v. Fullstory Inc
114 F.4th 181 (Third Circuit, 2024)

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