Oscomp Systems, Inc. v. Bakken Express, LLC

930 F. Supp. 2d 261, 2013 WL 1001960, 2013 U.S. Dist. LEXIS 34073
CourtDistrict Court, D. Massachusetts
DecidedMarch 12, 2013
DocketCivil Action No. 12-11010-JGD
StatusPublished
Cited by8 cases

This text of 930 F. Supp. 2d 261 (Oscomp Systems, Inc. v. Bakken Express, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oscomp Systems, Inc. v. Bakken Express, LLC, 930 F. Supp. 2d 261, 2013 WL 1001960, 2013 U.S. Dist. LEXIS 34073 (D. Mass. 2013).

Opinion

MEMORANDUM OF DECISION AND ORDER ON PLAINTIFF’S MOTION TO REMAND AND ON DEFENDANT’S MOTION TO TRANSFER

DEIN, United States Magistrate Judge.

I. INTRODUCTION

This action arises out of two purchase order agreements (the “Contracts”) under which the plaintiff, OsComp Systems, Inc. (“OsComp”), agreed to provide equipment and services to the defendant, Bakken Express, LLC (“Bakken”), for use in connection with Bakken’s efforts to extract natural gas in North Dakota. By its complaint, OsComp is seeking damages for breach of contract and alleged violations of Mass. Gen. Laws ch. 93A, as well as an order directing Bakken to return certain equipment to the plaintiff and to comply with the confidentiality provisions of the parties’ Contracts. OsComp initially filed this action in Middlesex Superior Court on March 7, 2012. On June 6, 2012, Bakken removed the case to federal court based on diversity of citizenship.

[264]*264The matter is presently before this court on OsComp’s “Motion to Remand Action to State Court” (Docket No. 6) and on Bakken’s “Motion to Transfer Pursuant to 28 U.S.C. 1404(a)” (Docket No. 10). In support of its motion, OsComp argues that Bakken waived its right of removal, pursuant to the terms of a venue selection clause contained in the parties’ Contracts, which provides in relevant part that Bakken “hereby agrees ... to accept venue in the courts of Middlesex County, Massachusetts.” It contends that as a result of the defendant’s waiver, the matter must be remanded to the Middlesex Superior Court. Bakken disputes that the venue selection provision is mandatory or that it otherwise precludes venue in this court. It further maintains that under state law, venue is only proper in Suffolk County where this court sits, and that a remand to Middlesex Superior Court would not be appropriate.

By its motion to transfer, Bakken argues that the convenience of the parties and witnesses, as well as the interests of justice, would best be served if this action were tried in Texas, where Bakken already is pursuing a lawsuit against OsComp in state court. Accordingly, Bakken requests that this court transfer the matter to the United States District Court for the Southern District of Texas pursuant to 28 U.S.C. § 1404(a). OsComp disputes that a transfer to Texas would be convenient or just, particularly in light of the parties’ forum selection clause and the fact that Bakken concealed its Texas lawsuit from OsComp until after the instant case was filed, and it urges this court to defer to the plaintiffs choice of venue.

For all the reasons described below, this court finds that Bakken’s agreement to accept venue in the courts of Middlesex County, Massachusetts does not constitute a waiver of its right to remove this matter to federal court and does not warrant a remand of the litigation to the state superi- or court. This court farther finds that Bakken’s state court action in Texas is irrelevant to the transfer analysis, and that the interests of convenience and justice would best be served by keeping Os-Comp’s action in Massachusetts. Accordingly, and for all the reasons set forth herein, both of the parties’ motions are DENIED.

II. STATEMENT OF FACTS1

The Parties

The plaintiff, OsComp, is a Delaware corporation which is engaged in the business of developing and commercializing technologies and equipment for use in extracting and compressing natural gas. (Compl. ¶ 1; Santos Aff. ¶ 2). At the time the parties negotiated the Contracts at issue in this case, OsComp’s principal place of business was in Cambridge, Massachusetts. (Santos Aff. ¶ 21). Since that time, however, the plaintiff has moved its principal place of business to Boston, Massachusetts. (Id.).

OsComp opened a small office in Houston, Texas in June 2011, and it subsequently registered to do business in Texas. (Id.; Dwyer Aff. at Ex. 1). Nevertheless, Os-Comp’s operations remain concentrated in Massachusetts. (Santos Aff. ¶ 21). Moreover, as further detailed below, OsComp [265]*265maintains that the operative facts relevant to its claims in this case occurred in Massachusetts and elsewhere outside of Texas, and that none of the individuals whom OsComp would call as witnesses in this case reside in or are otherwise located in Texas. (See id. ¶¶ 2, 9-20, 23-25). Rather, according to OsComp, most of its witnesses are located here in Massachusetts. (See id. ¶¶ 2,12, 23-24).

The defendant, Bakken, is a Texas limited liability company, which maintains a principal place of business in Harris County, Texas. (Dwyer Aff. Ex. 2 at ¶ 2). During the relevant time period, Bakken was engaged in a project involving the extraction of natural gas in the Williston Basin area of North Dakota. (See Santos Aff. ¶ 5; Maloney Aff. ¶ 3). Bakken asserts that various meetings and events relating to this litigation occurred in Texas, and that its witnesses are largely located in that state. (See Maloney Aff. ¶¶ 2-6).

The Contracts

In late 2010 and early 2011, OsComp and Bakken entered into two Purchase Order Contracts. (Compl. ¶ 6; Compl. Exs. A & B). Pursuant to the Contracts, OsComp agreed to provide Bakken with five natural gas compressors, along with related equipment and services, in connection with Bakken’s natural gas operations in or around the Williston Basin in North Dakota. (Santos Aff. ¶ 5; Maloney Aff. ¶ 3). Bakken agreed to pay OsComp a base price of $381,460 under the first Contract, and a base price of $1,837,640 under the second Contract. (Compl. ¶ 9; Compl. Ex. A at 1; Compl. Ex. B at 1). Additionally, to the extent the defendant requested maintenance services beyond those included in the base rate, Bakken agreed to pay OsComp for those services at the plaintiffs prevailing service rate. (Compl. ¶ 10; Compl. Ex. A at 15; Compl. Ex. B at 15). In this action, OsComp is seeking to recover at least $965,788 from Bakken for services that it claims to have provided pursuant to the parties’ Contracts. (Santos Aff. ¶ 4).

The Contracts set forth various Terms and Conditions addressing such matters as payment terms and taxes, delays in delivery, regulatory compliance, and confidentiality. (See Compl. Ex. A at 17-19; Compl. Ex. B at 17-19). Significantly, paragraph 9 of the Terms and Conditions, entitled “DISPUTE RESOLUTION,” provided that

[t]his Agreement shall be governed by the laws of the Commonwealth of Massachusetts without respect to conflicts of law and may not be amended except in a writing signed by both parties. [Bakken] hereby agrees to waive any right to a trial by jury and to accept venue in the courts of Middlesex County, Massachusetts. If prevailing, OsComp shall recover all of its costs and expenses, including its attorney fees. No liability of OsComp to [Bakken] shall exceed the sum of payments made by [Bakken] to OsComp, nor include any incidental, consequential or punitive damages.

(Compl. Ex. A at 18 ¶ 9; Compl. Ex. B at 18 ¶ 9) (emphasis added). At issue is whether this provision constituted a waiver by Bakken of its right to remove this case from Middlesex Superior Court to federal court.

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Bluebook (online)
930 F. Supp. 2d 261, 2013 WL 1001960, 2013 U.S. Dist. LEXIS 34073, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oscomp-systems-inc-v-bakken-express-llc-mad-2013.