Peridyne Technology Solutions, LLC v. Matheson Fast Freight, Inc.

117 F. Supp. 2d 1366, 2000 U.S. Dist. LEXIS 19947, 2000 WL 1539072
CourtDistrict Court, N.D. Georgia
DecidedOctober 16, 2000
DocketCiv.A.1:00CV1587CAP
StatusPublished
Cited by5 cases

This text of 117 F. Supp. 2d 1366 (Peridyne Technology Solutions, LLC v. Matheson Fast Freight, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peridyne Technology Solutions, LLC v. Matheson Fast Freight, Inc., 117 F. Supp. 2d 1366, 2000 U.S. Dist. LEXIS 19947, 2000 WL 1539072 (N.D. Ga. 2000).

Opinion

ORDER

PANNELL, District Judge.

The plaintiff brought the instant action, alleging eight (8) claims for relief based upon Federal Computer Fraud, 18 U.S.C. § 1030; Federal RICO, 18 U.S.C. § 1962; Georgia Computer Systems Protection Act, O.C.G.A. § 16-9-90; Georgia RICO, O.C.G.A. § 16-14-3; Georgia Trade Secrets Act of 1990, O.C.G.A. § 10-1-760; breach of contract; quantum meruit, O.C.G.A. § 9-2-7; and Attorney’s Fees, O.C.G.A. § 13-6-11. The matter is currently before the court on the defendants’ motion to dismiss for lack of jurisdiction, lack of venue, and/or alternatively to transfer venue.

I. BACKGROUND FACTS AND PROCEDURAL HISTORY

The plaintiff is a limited liability company organized and existing under the laws of Nevada with its principal place of business in Atlanta, Georgia. The corporate defendants are organized and exist under the laws of California with their principal places of business in Elk Grove, California. Mr. Antoniou is, and was at all relevant times, domiciled in, and a citizen of, California, and an employee of the corporate defendants (the “individual defendant”).

On March 31, 1999, the plaintiff and the corporate defendants entered into a consulting agreement whereby the plaintiff agreed to provide computer consulting services and materials to the corporate defendants (the “Contract”). In connection with *1369 the performance of the Contract, the plaintiff provided several computer consultants to the corporate defendants in California and Georgia. The parties repeatedly used their respective computer systems to interface and exchange information. These interfaces included the plaintiff providing the defendants with password access to limited directories containing certain data and software applications on one of the plaintiffs servers located in Georgia. After the plaintiff demanded payment of its invoiced work, the corporate defendants terminated the plaintiffs services in accordance with the Contract.

Subsequent to this termination, the individual defendant, while in California, acting within the scope of his employment with the corporate defendants, on one or more occasions illegally hacked into several of the plaintiffs servers and directories in Georgia in order to download files, directory listings, proprietary source code, software, CMSJXML technology, financial records and books, research and development, white papers, and personal directories of the plaintiffs employees. Further, he deleted files, cleaned up logs, installed foreign programs, and accessed plaintiffs repository of source code for its commercial clients, located on the plaintiffs main servers in Georgia.

II. LEGAL DISCUSSION

A. Personal Jurisdiction

The defendants contend that they are not subject to personal jurisdiction in Georgia and therefore the plaintiffs claim must be dismissed. The plaintiff bears the burden of establishing jurisdiction in this court. See Francosteel Corp. v. M/V Charm, 19 F.3d 624, 626 (11th Cir.1994). Where, as here, an evidentiary hearing is not held on a motion to dismiss for lack of personal jurisdiction, a plaintiff must establish a prima facie case of jurisdiction to survive a motion to dismiss, by presenting sufficient evidence to withstand a motion for directed verdict. See id. The court construes the allegations in the Complaint as true to the extent that they are uncontroverted by the defendants’ evidence. See Morris v. SSE, Inc., 843 F.2d 489, 492 (11th Cir.1988). Where there are conflicts between the parties’ evidence, the court makes all reasonable inferences in favor of the plaintiff. See id.

The basic test utilized in the Eleventh Circuit for determining the existence of personal jurisdiction requires the court to conduct a two-part inquiry to determine whether personal jurisdiction exists under Georgia’s long-arm statute and the Due Process Clause of the United States Constitution. See Robinson v. Giarmarco & Bill, P.C., 74 F.3d 253, 256 (11th Cir.1996).

Where a state’s long-arm statute confers personal jurisdiction to the limits of Due Process, the court may pass over analysis of the statute and exercise jurisdiction where the constitutional requirements are satisfied. See Allegiant Physicians Serv., Inc. v. Sturdy Memorial Hosp., 926 F.Supp. 1106, 1112 (N.D.Ga.1996). Although there has been some disagreement as to whether the Georgia long-arm statute extends to the maximum extent of due process for all claims, numerous district courts in the Eleventh Circuit have held in recent decisions that the Georgia long-arm statute confers personal Jurisdiction to the full extent permitted by the Due Process Clause of the United States Constitution. See Maxwell Chase Technologies, L.L.C. v. KMB Produce, Inc., 79 F.Supp.2d 1364, 1367 (N.D.Ga.1999) (citing Francosteel Corp., 19 F.3d at 627). Accordingly, the court proceeds directly to the consideration of whether the exercise of personal jurisdiction over the defendants is consistent with the Due Process Clause.

“[D]ue [P]rocess requires ... that in order to subject a defendant to a judgment in personam, if he be not present within the territory of the forum, he have certain minimum contacts with it such that maintenance of the suit does not offend ‘traditional notions of fair play and substantial justice.’ ” International Shoe Co. v. *1370 Washington, 326 U.S. 810, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945) (citations omitted). Subsequent to International Shoe, the Supreme Court has clarified that these “contacts” must be purposeful contacts made by the non-resident defendant and not the result of unilateral activity by another. See e.g. Burger King Corp. v. Rudzewicz, 471 U.S. 462, 474, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985). This requirement of purposeful contacts ensures that the nonresident defendant has fair warning that a particular activity may subject her to litigation within the forum. See Burger King Corp., 471 U.S. at 472, 105 S.Ct. 2174, 85 L.Ed.2d 528.

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Bluebook (online)
117 F. Supp. 2d 1366, 2000 U.S. Dist. LEXIS 19947, 2000 WL 1539072, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peridyne-technology-solutions-llc-v-matheson-fast-freight-inc-gand-2000.