Morgan Trailer Mfg. Co. v. Hydraroll, Ltd.

759 A.2d 926, 2000 Pa. Super. 228, 2000 Pa. Super. LEXIS 2013
CourtSuperior Court of Pennsylvania
DecidedAugust 8, 2000
StatusPublished
Cited by32 cases

This text of 759 A.2d 926 (Morgan Trailer Mfg. Co. v. Hydraroll, Ltd.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morgan Trailer Mfg. Co. v. Hydraroll, Ltd., 759 A.2d 926, 2000 Pa. Super. 228, 2000 Pa. Super. LEXIS 2013 (Pa. Ct. App. 2000).

Opinion

OLSZEWSKI, J.:

¶ 1 Morgan Trailer Manufacturing Company (“Morgan”) appeals the order of the court below dismissing its action against all six appellees. We reverse and remand.

¶ 2 The trial court aptly summarized the facts:

Morgan ... is a New Jersey based corporation with its principal place of business at Morgantown, Berks County, Pennsylvania. Morgan is in the business of designing, manufacturing, marketing, selling and servicing truck bodies across the United States, Mexico and Canada. Hydraroll, Ltd., (“Hydraroll”) is a British corporation with its principal place of business at Forge House ... Great Britain. Hydraroll was the manufacturer of automated vehicle loading systems and ... ancillary equipment used in the loading and unloading of trailers.
Morgan entered into a contract on March 1, 1983 with Hydraroll, whereby Morgan became the exclusive distributor *928 of all Hydraroll systems and ancillary equipment in the United States, Caribbean Islands, Puerto Rico, Canada and Mexico (“North American Territory”) for a period of five years. On March 1, 1988, the parties signed a second five-year contract for Morgan to be the exclusive distributor of Hydraroll systems and ancillary equipment for the North American [T]erritory. The parties signed another exclusive distributorship agreement dated April 23, 1993, which the parties agreed commenced on March 1, 1993.... Upon expiration of this most recent five-year period, the contract was to continue until either party provided twelve months written notice of the agreement’s termination pursuant to clause 2.1 of the contract. Transpotech, Ltd., (“Transpotech”) also a British corporation, subsequently purchased the assets and liabilities of Hydraroll and continued to manufacture, market and sell products under the “Hydraroll” brand name.
In July 1999, Steven Turner, Managing Director of Transpotech[,] visited Morgan’s facilities to inspect the operation of a division of Morgan known as Advanced Handling Systems or AHS, which was the division of Morgan assigned the responsibility of distributing the Hydraroll products. Upon returning to Great Britain, Turner sent a letter to Morgan’s then President Peter Hunt dated July 19, 1999 expressing dissatisfaction with AHS’s distribution of Hydraroll’s products and provided Hunt with twelve months notice of Hydraroll’s intention to terminate the contract as provided by clause 2.1. Termination of the contract was to be effective on July 20, 2000. Turner also informed Hunt of several specific breaches of the contract committed by Morgan and advised if they were not cured within ninety (90) days of the date of the letter, the contract would be terminated “forthwith”, on October 18,1999.
On September 15, 1999, Hydraroll, LLC, a Pennsylvania limited liability corporation, was formed with Steve Turner as the Chief Executive Officer. Morgan alleges that Hydraroll LLC was formed as a business entity to distribute “Hydraroll” name brand products in North America. Also in September 1999, several Morgan and AHS employees resigned to work for Transpotech. On October 20, 1999, Transpotech representatives met with Morgan employees to inspect AHS facilities and personnel. Although disputed by Morgan, Transpo-tech subsequently decided that the breaches set forth in the July 19, 1999 letter had not been cured or were cured inadequately and by way of letter dated October 28, 1999, Turner informed Hunt that the contract was terminated immediately as of October 18,1999.
On November 3, 1999, Morgan filed a Complaint in equity and a Petition for Temporary Injunctive Relief alleging that Hydraroll, Transpotech, LLC[] (a Pennsylvania limited liability corporation) and the former Morgan and AHS employees hired by Transpotech had breached the contract and engaged in anti-competitive conduct as a result of the breach. On November 3, 1999, the emergency motions[ ] judge denied Morgan’s request for a Temporary Restraining Order. The Defendants filed numerous preliminary objections to the Complaint and the Petition for Temporary Injunctive Relief. It soon became apparent that the threshold issue to be decided was this court’s subject matter jurisdiction ... [because of a contract provision stating that the contract would be interpreted in accordance with English law and that the parties submitted themselves to the exclusive jurisdiction of the English courts.] Consequently, on November 23, 1999, the court ordered that the issue of jurisdiction be briefed by the parties and scheduled for the next available argument court. By way of order dated December 20, 1999, the court sustained defendants’ preliminary objections pursuant to Pa.R.C.P. *929 1028(a)(6) and dismissed the complaint and Petition for Injunctive Relief for lack of subject matter jurisdiction.

Trial Court Opinion, 2/16/00, at 1-3. This appeal followed. 1

¶ 8 Morgan raises three issues on appeal:

1. Whether this Court should reverse the Common Pleas Court’s decision declining to exercise jurisdiction over Morgan’s entire eleven count complaint involving all six Appellees simply because a forum selection clause in a canceled contract between Morgan and two of the Appellees states disputes concerning the sale of Hydraroll products should be litigated in England.
2. Whether this Court should reverse the Common Pleas Court’s decision declining to exercise jurisdiction over Morgan’s tort claims as alleged in its Complaint against all six Appellees.
3. Whether this Court should reverse the Common Pleas Court’s decision declining to grant Morgan a hearing upon its request for a preliminary injunction^]

Brief of Appellant at 2.

¶ 4 Our standard of review is clear:

When reviewing a decision granting preliminary objection in the nature of a demurrer, any doubt should be resolved in favor of overruling the demurrer. Preliminary objections should be sustained only in cases that are clear and free from doubt. The trial court must consider as true all well pleaded facts set forth in the complaint and all reasonable inferences drawn therefrom. If the facts pleaded state a claim for which relief may be granted under any theory of law, then there is sufficient doubt to require rejection of the demurrer.

Gaston v. Diocese of Allentown, 712 A.2d 757, 758 (Pa.Super.1998) (citations omitted).

¶ 5 We analyze appellant’s first two claims together since they are linked by the forum selection clause in the contract. Appellant claims that the court below erred in dismissing the action after finding that it was without subject matter jurisdiction for all of its claims and that, even if the contract claims must be litigated in England, the tort claims can be litigated in Pennsylvania.

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Bluebook (online)
759 A.2d 926, 2000 Pa. Super. 228, 2000 Pa. Super. LEXIS 2013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morgan-trailer-mfg-co-v-hydraroll-ltd-pasuperct-2000.