PARKWAY-KEW CORPORATION v. HARRIS MACHINE TOOLS, INC.

CourtDistrict Court, D. New Jersey
DecidedOctober 30, 2020
Docket3:20-cv-06044
StatusUnknown

This text of PARKWAY-KEW CORPORATION v. HARRIS MACHINE TOOLS, INC. (PARKWAY-KEW CORPORATION v. HARRIS MACHINE TOOLS, INC.) 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.

Bluebook
PARKWAY-KEW CORPORATION v. HARRIS MACHINE TOOLS, INC., (D.N.J. 2020).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

PARKWAY-KEW CORPORATION, a New Jersey corporation,

Plaintiff, Civ. No. 20-6044

v. OPINION

HARRIS MACHINE TOOLS, INC., a Texas corporation, and JEAN HARRIS, JR., jointly and severally,

Defendants.

THOMPSON, U.S.D.J. INTRODUCTION This matter comes before the Court upon the Motion to Dismiss for Lack of Personal Jurisdiction or, in the Alternative, to Transfer filed by Defendants Harris Machine Tools, Inc. (“HMT”) and Jean Harris, Jr. (“Harris”) (collectively, “Defendants”). (ECF No. 12.) Plaintiff Parkway-Kew Corporation (“Plaintiff”) opposes the Motion. (ECF No. 15.) The Court has decided the Motion based on the written submissions of the parties and without oral argument, pursuant to Local Civil Rule 78.1(b). For the reasons stated herein, Defendants’ Motion (ECF No. 12) is denied. BACKGROUND I. Factual Background This case arises out of Plaintiff’s purchase of a cylindrical grinder. Defendant HMT sells industrial equipment. (Harris Decl. ¶ 4, ECF No. 12-1.) Plaintiff’s business operation involves 1 the grinding of hard coatings, such as tungsten carbide. (Compl. ¶ 21, ECF No. 1-2.) On October 29, 2019, Defendant HMT sent an e-mail to Eugene E. Klein, Jr., Plaintiff’s Vice President of Engineering, promoting for sale, among other things, a “Landis O.D. Cylindrical Grinder.” (Klein Decl. ¶¶ 1, 5, ECF No. 15-1.)1 Defendant HMT sent the e-mail to approximately 6,000

other recipients. (Harris Decl. ¶ 11.) The e-mail described the grinder has having a “MAXIMUM GRINDING WHEEL DIAMETER: 30 [INCHES].” (Harris Decl. Ex. A-1, ECF No. 12-2.) Approximately one hour after the e-mail was sent, Mr. Klein contacted Defendant HMT to inquire about the Landis Grinder. (Harris Decl. ¶ 12.) Defendant HMT’s receptionist e-mailed Defendant Harris, the president of Defendant HMT, with Mr. Klein’s phone number. (Id. ¶¶ 1, 12.) Defendant Harris called Mr. Klein. (Id.) During that conversation, Mr. Klein requested a quote for the Landis Grinder. (Id.) On October 31, 2019, Defendant Harris e-mailed Plaintiff a quote. (Id. ¶ 13.) The quote contained a link directing Plaintiff to financing through Direct Capital. (Klein Decl. Ex. B.) The quote noted that “[a]ll transactions will be deemed made and governed by the laws of the State of

Texas, with payment in Houston, Harris County, Texas.” (Id.) Defendant Harris also sent Mr. Klein three emails with photos of the Landis Grinder. (Harris Decl. ¶ 13.) After receiving the quote, Plaintiff arranged to purchase the grinder from Defendant HMT for the quoted price of $49,500. (Compl. ¶ 15.) Plaintiff sought financing through Direct Capital. (Id. ¶¶ 16–19.) On November 5, 2019, Defendant Harris received an e-mail confirming that Plaintiff had paid for the grinder in full. (Defs.’ Ex. A-7, ECF No. 12-4.) Because the

1 Mr. Klein has received e-mails from Defendant HMT “for a long time before the transaction at issue,” but he claims to be “almost certain [he] did not sign up for [Defendant] HMT’s email distribution list.” (Klein Decl. ¶ 7, ECF No. 15-1.) 2 grinder was in California at the time, Plaintiff arranged for a rigger to deliver it to New Jersey. (Klein Decl. ¶ 19.) After the sale, between November 12, 2019 and November 15, 2019, Defendant Harris and Mr. Klein exchanged e-mails regarding the size and weight of the Landis Grinder. (Harris Decl. ¶ 15.)

Plaintiff alleges that it purchased the Landis Grinder because it “could take a 30-inch diameter wheel.” (Compl. ¶ 20.) Plaintiff uses thirty-inch-diameter wheels on its grinders because smaller wheels “fail to remove stock” after they wear down. (Id. ¶ 21.) When the Landis Grinder was delivered, however, Plaintiff discovered that it could only incorporate a twenty- inch-diameter wheel. (Id. ¶ 24.) Defendant HMT is a Texas corporation with its principal place of business in Houston, Texas. (Harris Decl. ¶ 1.) Its twenty employees work in Houston, Texas. (Id. ¶ 4.) Defendant HMT does not have offices or property in New Jersey. (Id. ¶ 9.) From 2016 to 2019, Defendant HMT made two sales to customers in New Jersey, one of which was the sale at issue in this case. (Id. ¶ 10.) Defendant Harris lives in Texas. (Id. ¶ 3.) Plaintiff is a New Jersey corporation with its

principal place of business in North Brunswick, New Jersey. (Compl. ¶ 1.) II. Procedural History Plaintiff filed the Complaint in the Superior Court of New Jersey in Middlesex County on April 7, 2020. (Compl. at 1.) Plaintiff alleges five counts: (1) violations of New Jersey’s Consumer Fraud Act, N.J. Stat. Ann. § 56:8-1 et seq. (id. ¶¶ 28–38); (2) fraudulent misrepresentations (id. ¶¶ 39–46); (3) negligent misrepresentations (see id. ¶¶ 47–55); (4) breach of the implied warranty of fitness for a particular purpose (id. ¶¶ 56–61); and (5) rescission of the parties’ agreement because of a mutual mistake of fact (id. ¶¶ 62–66). Defendants removed the case to federal court. (ECF No. 1.) On June 8, 2020, Defendants 3 filed a Motion to Dismiss for Lack of Personal Jurisdiction or, in the Alternative, to Transfer. (ECF No. 12.) Plaintiff filed an Opposition (ECF No. 15), and Defendants filed a Reply (ECF No. 16). Defendants’ Motion is presently before the Court. LEGAL STANDARDS

I. Personal Jurisdiction “A federal court sitting in New Jersey has jurisdiction over parties to the extent provided under New Jersey state law.” Miller Yacht Sales, Inc. v. Smith, 384 F.3d 93, 96 (3d Cir. 2004) (citing Fed. R. Civ. P. 4(e)). New Jersey’s long-arm statute permits the exercise of personal jurisdiction “to the uttermost limits permitted by the United States Constitution.” Mesalic v. Fiberfloat Corp., 897 F.2d 696, 698 (3d Cir. 1990). Therefore, for a New Jersey court to exercise jurisdiction over a non-resident defendant, the defendant must have “certain minimum contacts with [New Jersey] such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.” See Int’l Shoe Co. v. Washington, 326 U.S. 310, 316 (1945) (citations and internal quotations omitted). There are two types of personal jurisdiction: general

and specific. See Daimler AG v. Bauman, 571 U.S. 117, 118 (2014). “General jurisdiction is based upon the defendant’s ‘continuous and systematic’ contacts with the forum and exists even if the plaintiff’s cause of action arises from the defendant’s non-forum related activities.” Remick v. Manfredy, 238 F.3d 248, 255 (3d Cir. 2001) (citation omitted). “[S]pecific jurisdiction is present only if the plaintiff’s cause of action arises out of a defendant’s forum-related activities.” Id. When a defendant moves to dismiss a complaint for lack of personal jurisdiction under Rule 12(b)(2) of the Federal Rules of Civil Procedure, “the plaintiff bears the burden of showing that personal jurisdiction exists.” Marten v. Godwin, 499 F.3d 290, 295–96 (3d Cir. 2007); see 4 also Cerciello v. Canale, 563 F. App’x 924, 925 n.1 (3d Cir. 2014) (quoting Carteret Sav. Bank, FA v. Shushan, 954 F.2d 141, 142 (3d Cir. 1992)) (noting that the plaintiff bears the burden to demonstrate that personal jurisdiction is proper by a preponderance of the evidence). Where the court does not hold an evidentiary hearing, “the plaintiff need only establish a prima facie case of

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