Milne v. Catuogno Court Reporting Services, Inc.

239 F. Supp. 2d 195, 2002 U.S. Dist. LEXIS 25212, 2002 WL 31947494
CourtDistrict Court, D. Connecticut
DecidedNovember 19, 2002
Docket3:02CV660 (GLG)
StatusPublished
Cited by17 cases

This text of 239 F. Supp. 2d 195 (Milne v. Catuogno Court Reporting Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milne v. Catuogno Court Reporting Services, Inc., 239 F. Supp. 2d 195, 2002 U.S. Dist. LEXIS 25212, 2002 WL 31947494 (D. Conn. 2002).

Opinion

Memorandum Decision

GOETTEL, District Judge.

I. BACKGROUND/FACTS

The plaintiff, Robert Milne, brought this, action against the defendants, Catuogno *197 Court Reporting Services, Inc. (CCRS), Sten Tel, Inc. (Sten-Tel), and Raymond F. Catuogno for money damages arising from accounting services he provided to the defendants, for which he allegedly has not been paid. Additionally, he asserts claims against the defendants for negligent infliction of emotional distress, fraud and negligent misrepresentation. In accordance with Fed.R.Civ.P. 12(b)(2), the defendants have moved to dismiss [Doc. 5] the plaintiffs complaint for lack of personal jurisdiction. The defendants claim that this Court lacks personal jurisdiction over them because they do not have the requisite minimum contacts with the state of Connecticut. We DENY the defendants’ motion in part, and GRANT it in part.

After a review of the affidavits that the parties submitted, the Court determined that an evidentiary hearing should be held on the matter of personal jurisdiction. The following relevant facts were obtained from the complaint and all documents submitted therewith, as well as our previous decision dated July 18, 2002 [Doc. 16], and from the evidentiary hearing held on September 80, 2002.

Mr. Catuogno is the owner, President, and Chief Executive Officer of CCRS. Also, he owns Sten-Tel partially with his son, and is its Chief Executive Officer. The plaintiff, a certified public accountant, alleges that, from 1986 to 2001, he provided accounting services to the defendants and is owed $31,223.25 in unpaid fees for such services. 1 He claims further that the defendants breached an agreement to pay him a bonus or end-of-service fee of $40,000 upon the sale of CCRS.

Presently, the plaintiff resides in West Hartford, Connecticut. He is an accountant licensed to practice in both Massachusetts and Connecticut. At the time he began doing business with the defendants, the plaintiffs office was located in Springfield, Massachusetts. He later closed that office and provided accounting services to the defendants mostly at their places of business, as well as from his home in Connecticut.

Mr. Milne and Mr. Catuogno were very good friends until the fall of 2001. At that time, their friendship had been irretrievably broken. Consequently, Mr. Catuogno fired Mr. Milne by letter sent to his Connecticut residence dated November 17, 2001. Mr. Catuogno testified that at the time he terminated Mr. Milne’s employ with defendant companies, he owed him an estimated $25,000 in unpaid fees for accounting services rendered. This law suit followed. Additional facts will be set forth as necessary.

II. DISCUSSION

We set forth first the legal principles that guide our resolution of the defendants’ motion to dismiss. This diversity case presents a question of personal jurisdiction over a nonresident individual and two foreign corporations. Whether such entities are amenable to suit in federal court is determined by the law of the state in which the court sits. Fed.R.Civ.P. 4(k)(l)(A); see also Bank Brussels Lambert v. Fiddler Gonzalez & Rodriguez, 305 F.3d 120, 124 (2d Cir.2002). Our resolution of the jurisdictional issue involves a two-part analysis. See Knipple v. Viking Communications Ltd., 236 Conn. 602, 607, 674 A.2d 426 (1996). As a threshold matter, the Court must determine whether Connecticut’s applicable long-arm statute reaches a particular defendant. 2 Because *198 this case involves a nonresident defendant and foreign corporate defendants, two separate long-arm statutes must be considered: Conn. Gen.Stat. § 52-59b (2002), which applies to nonresident defendants, and Conn. Gen.Stat. § 33-929 (2002), which applies to foreign corporate defendants. Only if the court finds the state long-arm statute to be applicable does it reach the second part of the analysis, which examines whether asserting jurisdiction violates constitutional principles of due process. Lombard Bros., Inc. v. General Asset Mgmt. Co., 190 Conn. 245, 250 460 A.2d 481 (1983).

The defendants challenge the Court’s jurisdiction in this case. It is, therefore, the plaintiffs burden to prove facts establishing that jurisdiction is proper. Rosenblit v. Danaher, 206 Conn. 125, 130, 537 A.2d 145, 147 (1988). Ordinarily, the plaintiff would have to make only a prima facie showing that jurisdiction is proper. When, as here, an evidentiary hearing has been conducted, the plaintiffs burden increases such that he must prove jurisdictional facts by a preponderance of the evidence. See Ball v. Metallurgie Hoboken-Overpelt, S.A., 902 F.2d 194, 198 n. 3 (2d Cir.) cert. denied, 498 U.S. 854, 111 S.Ct. 150, 112 L.Ed.2d 116 (1990).

A. Long-arm Jurisdiction under Conn. Gen.Stat. § 33-929.

There are two subsections that provide long-arm jurisdiction over foreign corporations in section 33-929: subsections 33-929(e) and (f). Subsection 33-929(e) provides in relevant part: “Every foreign corporation which transacts business in this state in violation of section 33-920 ... shall be subject to suit in this state upon any cause of action arising out of such business.” Subsection 33-929(f) provides in relevant part:

Every foreign corporation shall be subject to suit in this state, by a resident of this state or by a person having a usual place of business in this state, whether or not such foreign corporation is transacting or has transacted business in this state and whether or not it is engaged exclusively in interstate or foreign commerce, on any cause of action arising ... (2) out of any business solicited in this state by mail or otherwise if the corporation has repeatedly so solicited business, whether the orders or offers relating thereto were accepted within or without the state ....

We consider now whether either of these statutes applies to Sten-Tel and OCRS.

1. Jurisdiction as to Sten-Tel

In accordance with subsection 33-929(e), we may assert jurisdiction over a foreign corporation only upon proof of “two conditions: the transaction of business in this state, and a cause of action arising out of the transaction of such business.” Wilkinson v. Boats Unlimited, Inc., 236 Conn.

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239 F. Supp. 2d 195, 2002 U.S. Dist. LEXIS 25212, 2002 WL 31947494, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milne-v-catuogno-court-reporting-services-inc-ctd-2002.