Quikrete Companies, Inc. v. NOMIX CORPORATION

705 F. Supp. 568, 1989 U.S. Dist. LEXIS 937, 1989 WL 7606
CourtDistrict Court, N.D. Georgia
DecidedJanuary 5, 1989
DocketCiv. A. 1:88-CV-1080-JTC
StatusPublished
Cited by3 cases

This text of 705 F. Supp. 568 (Quikrete Companies, Inc. v. NOMIX CORPORATION) 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
Quikrete Companies, Inc. v. NOMIX CORPORATION, 705 F. Supp. 568, 1989 U.S. Dist. LEXIS 937, 1989 WL 7606 (N.D. Ga. 1989).

Opinion

ORDER

CAMP, District Judge.

Presently before this Court is defendant NOMIX Corporation’s (hereinafter “NO-MIX”) Motion to Dismiss for lack of personal jurisdiction. Fed.R.Civ.P. 12(b)(2). Further, NOMIX moves pursuant to Fed.R. Civ.P. 12(b)(3) that Count II of plaintiff’s Complaint be dismissed for lack of venue. For the reasons detailed below, defendant’s Motion to Dismiss for lack of personal jurisdiction is DENIED. Defendant’s Motion to Dismiss for lack of venue is also DENIED.

This action arises out of the ownership by defendant NOMIX of two United States’ patents: U.S. Patent Nos. 4,732,781 and 4,732,782. Plaintiff Quikrete Companies, Inc. (hereinafter “Quikrete”) has for many years, manufactured and sold packaged concrete and related products. Defendant NOMIX is in the business of selling certain fast-setting cementitious products which do not require a mixture with water prior to placement around objects to be held in a vertical position, e.g., a fence post. Defendant’s disputed patents relate to the use of those products.

In its Complaint, Quikrete seeks a declaratory judgment that both NOMIX patents are invalid and that plaintiff has not infringed on those patents. See Complaint Count I. Quikrete also alleges three other counts in its Complaint: Count II-Violations of Antitrust Laws, Count Ill-Unfair Competition, and Count IV-Tortious Interference with Contract. Defendant NOMIX now seeks a dismissal for lack of personal jurisdiction and venue.

I. THE PARTIES

Plaintiff Quikrete is an Ohio corporation with its principal place of business in Georgia. Plaintiff is headquartered in Atlanta, Georgia, and sells concrete products in *570 Georgia and throughout the United States. Plaintiff also has business relationships with licensees who manufacture and sell Quikrete products. Defendant NOMIX is a Connecticut corporation with its principal place of business in Connecticut.

II. STATEMENT OF FACTS

In ruling on defendant’s Motion to Dismiss for lack of personal jurisdiction, this Court must first determine the extent to which defendant had contact with the State of Georgia. The facts pertinent to this threshold issue of jurisdiction have been extracted from the pleadings of record, the affidavit and deposition of Roger P. Pratt, Vice President of Sales and Marketing for NOMIX, and the deposition of H. Nash Babcock, President of NOMIX.

NOMIX is not incorporated in Georgia, has no office in Georgia, is not authorized to do business in Georgia, has no employees operating or domiciled in Georgia, has no mailing address or telephone number in Georgia, has no bank account in Georgia, and does not own any property in Georgia. Pratt Affidavit ¶ 3. However, the evidence has established that the following contacts do exist between NOMIX and the State of Georgia:

1. Periodically, until early 1988, NO-MIX orally contacted independent marketing representatives whose territories included Georgia. These representatives were to be paid on a commission basis. Each of those arrangements was eventually terminated before any sale of NOMIX products had been generated. Id. II5.

2. “In January, 1988, a written agreement was entered into between NOMIX Corporation and Marketing Group South, a manufacturers' sales representative which is headquartered in Tuscaloosa, Alabama. Within a four-state territory which includes the State of Georgia, Marketing Group South is to solicit orders on a pure commission basis for NOMIX Corporation’s products, subject to acceptance or rejection by NOMIX Corporation in Connecticut.... Marketing Group South has not generated any sales of NOMIX Corporation products in the State of Georgia.” Id. If 6.

3. NOMIX is also a party to an agreement with an Atlanta corporation, L & M Manufacturing, Inc., pursuant to which the manufacturer will mix, bag, store, and ship NOMIX products as specified by NOMIX. To date, L & M Manufacturing has not yet processed any NOMIX orders and has not been compensated. Id. II7.

4. One shipment of NOMIX PostSet, for $731.20, was sent into Georgia. Id. ¶ 8.

5. Mr. Pratt, NOMIX’ Vice-President for Sales and Marketing, twice visited Georgia in 1987 in order to sales-train employees of the independent sales representatives. Id. ¶ 10.

6. In February, 1988, NOMIX’ National Sales Manager spent two days in Georgia. His activities included accompanying representatives of Marketing Group South on their visits to four prospective customers in Georgia. Id. 1Í10.

7. On April 8, 1987, NOMIX sent Qui-krete a letter suggesting that Quikrete’s products may be infringing NOMIX’ patents. See Attachment 3 to Plaintiff’s Memorandum of Law in Response to Defendant’s Motion to Dismiss.

8. On May 9, 1988, NOMIX sent Qui-krete a letter alleging patent infringement and threatening litigation. See Attachment 3 to Plaintiff’s Supplemental Memorandum of Law in Response to Defendant’s Motion to Dismiss.

9. In May, 1988, NOMIX mailed a series of letters to members of the trade in Georgia and throughout the United States, including Quikrete and several of its licensees, informing them of its intention to sue Quikrete for patent infringement. Pratt Affidavit II12. See also Attachment 3 to Plaintiff’s Memorandum of Law in Response to Defendant’s Motion to Dismiss. The following letter typifies those mailed by NOMIX:

Mr. R.C. White, Jr.

Associated Dist. Inc.

P.O. Box 7187

Atlanta, GA 30309

*571 Quikrete has also been put on notice that upon successful completion of the litigation against the American Stone-Mix Corporation, NOMIX will commence action against Quikrete and will seek an amount for damages and infringements committed against our patent.

We will, of course, be happy to supply your company with our fine “NOMIX”. Just give me a call at (203) 366-5600.

Very truly yours, NOMIX CORPORATION H. Nash Babcock President

See Attachment 3 to Plaintiffs Memorandum of Law in Response to Defendant’s Motion to Dismiss.

III. CONCLUSIONS OF LAW

A. STANDARD FOR GRANTING A MOTION TO DISMISS

The standard for granting a Motion to Dismiss for lack of personal jurisdiction made near the institution of the litigation and before substantial discovery, is clearly established in this circuit. A Motion to Dismiss for lack of personal jurisdiction “should be denied if plaintiff alleges sufficient facts to support a reasonable inference that defendant can be subjected to jurisdiction of the court.” Jackam v. Hospital Corporation of America Mideast, Ltd.,

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Bluebook (online)
705 F. Supp. 568, 1989 U.S. Dist. LEXIS 937, 1989 WL 7606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quikrete-companies-inc-v-nomix-corporation-gand-1989.