Redline Steel LLC v. Nukon Lazer Makine Metal Sanayi ve Tic AS

CourtDistrict Court, N.D. Alabama
DecidedMay 14, 2020
Docket5:19-cv-01445
StatusUnknown

This text of Redline Steel LLC v. Nukon Lazer Makine Metal Sanayi ve Tic AS (Redline Steel LLC v. Nukon Lazer Makine Metal Sanayi ve Tic AS) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Redline Steel LLC v. Nukon Lazer Makine Metal Sanayi ve Tic AS, (N.D. Ala. 2020).

Opinion

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ALABAMA NORTHEASTERN DIVISION

REDLINE STEEL, LLC, } } Plaintiff, } } v. } Case No.: 5:19-cv-01445-MHH } NUKON LAZER MAKINE } METAL SANAYO ve TIC AS, et al., } } Defendants. }

MEMORANDUM OPINION AND ORDER1 Defendants Nukon Lazer Makine Metal Sanyai ve Tic, A.S. (Nukon Turkey), NukonUS, LLC, and Moore Machine Tools, LLC move, under Federal Rule of Civil Procedure 12(b)(2), to dismiss plaintiff Redline Steel’s claims against Nukon Turkey for lack of personal jurisdiction. (Doc. 8). For the reasons below, the Court denies the motion. I. STANDARD OF REVIEW

1 The Court is issuing this opinion during a declared national emergency concerning COVID- 19. To enable parties to pursue their rights during this emergency, the Court is continuing its work. For information about the timing of appeals, please review the information provided in the conclusion of this opinion. The Court is including this procedural information in each opinion that it issues during the national emergency. A plaintiff who sues a non-resident defendant “‘bears the initial burden of alleging in the complaint sufficient facts to make out a prima facie case of [personal]

jurisdiction.’” Louis Vuitton Malletier, S.A. v. Mosseri, 736 F.3d 1339, 1350 (11th Cir. 2013) (quoting United Techs. Corp. v. Mazer, 556 F.3d 1260, 1274 (11th Cir. 2009)). A court must accept as true the jurisdictional allegations in the plaintiff’s

complaint unless “a defendant challenges personal jurisdiction ‘by submitting affidavit evidence in support of its position.’” Mosseri, 736 F.3d at 1350 (quoting Madara v. Hall, 916 F.2d 1510, 1514 (11th Cir. 1990) (internal quotation marks omitted)). If that happens, then the burden shifts back to the plaintiff to provide

evidence supporting the court’s exercise of jurisdiction over the defendant “unless the defendant’s affidavits contain only conclusory assertions that the defendant is not subject to jurisdiction.” Stubbs v. Wyndham Nassau Resort & Crystal Palace

Casino, 447 F.3d 1357, 1360 (11th Cir. 2006). When the parties present conflicting evidence, a court “must construe all reasonable inferences in favor of the plaintiff.” Stubbs, 447 F.3d at 1360. II. FACTUAL AND PROCEDURAL BACKGROUND

Nukon Turkey, a Turkish company, manufactures industrial steel-fabrication equipment in Turkey and sells and delivers the equipment to buyers in the United States through Nukon-US, Nukon Turkey’s exclusive U.S. distributor. (Doc. 20-1,

p. 2 – SEALED). Nukon-US’s CEO is Matt Moore, and he “is responsible for all sales of Nukon [Turkey] equipment in the United States.” (Doc. 1-1, p. 4, ¶ 14). Mr. Moore is also the managing member of Moore Machine Tools, LLC. (Doc. 22-

1, p. 14). Redline Steel is an Alabama company specializing in “custom metal décor.” (Doc. 1-1, p. 3, ¶ 8). To manufacture its metal products, Redline uses industrial laser

machinery. (Doc. 1-1, p. 3, ¶ 9). In April 2017, Redline “began discussions with Nukon[US] to purchase two new Nukon NF Pro Vento 4 Kilowat Fiber Lasers . . . along with a Compact Lift Load/Unload Automatic System with 10-Shelf Tower . . . .” (Doc. 1-1, p. 4, ¶ 15). Mr. Moore negotiated the terms of the sale. On June 15,

2017, Redline agreed to purchase the first laser (“Alpha”) for $560,000 and the Tower for $293,000. (Doc. 22-1, p. 185; Doc. 1-1, p. 4, ¶ 20). The sale terms were memorialized in an invoice providing that Alpha and the Tower were to be delivered

to Redline’s facility “within 7 days of October 7, 2017.” (Doc. 1-1, p. 5, ¶ 28). “To provide capacity while Redline waited for Alpha, NukonUS loaned Redline a Nukon Turkey-manufactured laser . . . .” (Doc. 22-1, p. 58). Nukon Turkey sent an employee, Furkan Aydin, to Redline’s Alabama facility to oversee

the loaner laser’s installation and to train Redline’s employees on its use. (Doc. 22- 1, p. 78). Around the time of the loaner laser’s installation, Redline agreed to purchase from NukonUS a second laser (“Bravo”). (Doc. 22-1, p. 189). According to Redline, it communicated with Nukon Turkey employees “regarding when the Equipment would be delivered, installed, and fixed.” (Doc. 1-

1, p. 11, ¶ 74). Redline alleges that Martin Ertufan misrepresented, on several occasions, the delivery date for Bravo and the Tower. (Doc. 1-1, p. 15, ¶ 119). Alpha was delivered to Redline’s facility on October 26, 2017, and Bravo was

delivered on November 24, 2017. (Doc. 22-1, pp. 82, 205; Doc. 22-3, p. 223). As with the loaner laser, Mr. Aydin traveled from Turkey to Redline’s facility to oversee Alpha and Bravo’s installations and to train Redline’s employees on their use. (Doc. 22-1, pp. 78–79, 82). According to Mr. Moore, “we would do the

installation – a lot of the installation. And then when it came to the really technical things, then we would have Furkan [Aydin], you know, get more involved to make sure that we were picking up everything about the – you know, the more technical

side of the machine to make sure weren’t any mistakes made.” (Doc. 22-1, p. 83). During both lasers’ installations, Mr. Aydin and a Redline employee, Mr. Whyte, signed a machine delivery letter providing that the “machine[s] [are] under 2 (Two) year warrant[ies] against manufacturer defects from delivery by NUKON LAZER

MAKINA METAL SAN VE TIC., A.S.” (Doc. 22-1, p. 205 (emphasis in original)). According to Redline, the company experienced post-installation issues with

both lasers. Redline contends that Nukon Turkey employees misrepresented “when the Equipment would be . . . fixed.” (Doc. 1-1, p. 15, ¶ 119). Specifically, Redline alleges that Nukon Turkey and NukonUS employees made “vague promises to

perform maintenance and repair[,]” maintenance and repair that Redline alleges was never performed. (Doc. 1-1, pp. 6–8, ¶¶ 39, 51). After the parties unsuccessfully tried to resolve the issues regarding the

equipment, on June 19, 2019, Redline filed suit in the Circuit Court of Limestone County, Alabama. (Doc. 1-1). Nukon Turkey removed the case to federal court on September 2, 2019. (Doc. 1). III. ANALYSIS

A federal district court’s exercise of personal jurisdiction must comply with the long-arm statute of the state in which the federal court sits and with the Due Process Clause of the Fourteenth Amendment of the United States Constitution.

Here, “the two inquiries merge, because Alabama’s long-arm statute permits the exercise of personal jurisdiction to the fullest extent constitutionally permissible.” Sloss Indus. Corp. v. Eurisol, 488 F.3d 922, 925 (11th Cir. 2007) (citing Ala. R. Civ. P. 4.2(b); Sieber v. Campbell, 801 So. 2d 641, 644 (Ala. 2001)).

For specific personal jurisdiction, due process requires that the defendant have “minimum contacts” with the forum state—here, Alabama; that the plaintiff’s claims “arise out of or relate to” those contacts; and that maintenance of the suit not violate notions of fair play and substantial justice. Waite v. All Acquisition Corp., 901 F.3d 1307, 1313 (11th Cir. 2018) (citing Mosseri, 736 F.3d at 1355).

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