Reliable Tool & MacHine Co. v. U-Haul International, Inc.

837 F. Supp. 274, 1993 U.S. Dist. LEXIS 15965, 1993 WL 462413
CourtDistrict Court, N.D. Indiana
DecidedNovember 10, 1993
Docket1:93-cv-00106
StatusPublished
Cited by6 cases

This text of 837 F. Supp. 274 (Reliable Tool & MacHine Co. v. U-Haul International, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reliable Tool & MacHine Co. v. U-Haul International, Inc., 837 F. Supp. 274, 1993 U.S. Dist. LEXIS 15965, 1993 WL 462413 (N.D. Ind. 1993).

Opinion

WILLIAM C. LEE, District Judge.

ORDER

This matter is before the court on defendant’s Motion to Dismiss pursuant to Fed. R.Civ.P. 12(b)(2) for lack of personal jurisdiction, and defendant’s Motion to Transfer Venue in the Alternative. For the following reasons the motions are DENIED.

Procedural Background

On January 28, 1993, U-Haul International, Inc. (hereinafter: UHI) filed a Complaint against Rehable Tool & Machine Company, Inc. (hereinafter: Rehable) in the Superior Court of Arizona, Maricopa County, seeking damages arising out of Rehable’s neghgence and failure to perform certain obhgations pursuant to the U-Haul/Vender agreement executed by the parties. Rehable was served with the Summons and Complaint of the Arizona State Court Action on April 28,1993. In the interim, and without apparent knowledge of the Arizona Action, Rehable filed the Complaint in the present action against UHI on April 21, 1993. The present action states a claim against UHI for the failure to make payments on its accounts arising out of the U-Haul/Vender agreement. The two actions arise out of the same agreement and the same set of facts.

On May 13, 1993, in the present action, UHI filed its Motion to Dismiss pursuant to Fed.R.Civ.P. 12(b)(2), or in the Alternative to Stay. Shortly thereafter, on May 16, 1993, Rehable removed the Arizona Action from the Arizona State Court to the United States District Court for the District of Arizona.

In an Order dated June 15,1993, this court granted UHI’s Motion to Stay in the Alternative. Specifically this court held “[T]he court will grant UHI’s motion to stay pending a ruling by the Arizona District Court on Rehable’s Motion to Transfer. If the Motion to Transfer is granted, the eases will be consolidated in this court.” UHI also filed a Reply Brief in Support of Motion to Dismiss and Brief in Support of Alternative Motion to Transfer on June 29, 1993.

The United States District Court for the District of Arizoná granted Rehable’s Motion to Transfer on September 9, 1993. United States Magistrate Judge Roger B. Cosbey of the Northern District of Indiana lifted the stay in the present action on October 21, 1993. Therefore, the issue of whether this court has personal jurisdiction over UHI is now ripe for decision as is UHI’s Motion to Transfer the case to the United States District Court for the District of Arizona. Ah of the issues have been fully briefed.

Factual Background

UHI is a Nevada corporation with its principal place of business in Phoenix, Arizona. UHI is in the business of renting and selling equipment to the general pubhc for do-it-yourself moving. UHI does not now have nor has it ever had any office or place of business in Indiana. Rehable is an Indiana corporation with its principal place of business in Kendahville, Indiana. Rehable operates a machine shop with approximately one hundred (100) employees. Rehable does not now nor has it ever had any office or place of business in Arizona.

Sometime in the fall of 1991, UHI and Rehable entered into negotiations to have Rehable manufacture replacement hub and *277 axle assemblies for UHI. These negotiations occurred by phone, facsimile and the mails. Sometime during the contract negotiations, Reliable sent two representatives to Arizona in order to facilitate the negotiation process. Concurrent with these negotiations, UHI began sending to Reliable samples, component parts, drawings, prints and instructions detailing the desired product. After various modifications were made as requested by UHI and prototypes reflecting the changes were accepted by UHI, UHI and Reliable entered into a standard, unilaterally drafted U-Haul/Vendor agreement dated March 25, 1992. 1 The agreement drafted by UHI does not specify which state’s law is to govern the agreement.

UHI then authorized Reliable to begin the tooling necessary to manufacture the hub and axle assemblies in April and May of 1992. Initially, UHI ordered 7,500 hub assemblies and 7,500 axle assembles. However, Reliable received additional orders from UHI bringing the totals to approximately 15,000 axle assemblies and approximately 30,0000 hub assemblies.

During the course of performance of the agreement, certain problems arose with respect to the products delivered by Reliable. These problems manifested themselves in the months of August, September and November of 1992. U-Haul sent representatives to Reliable in September and December in order to resolve the problems amicably, but were unsuccessful.

Although UHI has made partial payment toward the invoices of Reliable, since January 1993, UHI has been unresponsive to Reliable’s demands for payment. There remains an outstanding balance of $905,793.84. UHI asserts that it assumed the responsibility of curing the alleged defects in the assemblies and to date the cost to do so has reached $500,000.00. UHI expects the total cost of repairing all of the allegedly defective parts to exceed one million dollars.

Personal Jurisdiction

Due process requires that a trial court acquire personal jurisdiction over a non-resident defendant before it can render a valid judgment against the defendant. Kulko v. California Superior Court, 436 U.S. 84, 98 S.Ct. 1690, 56 L.Ed.2d 132 (1978). The due process requirements are that the defendant be given adequate notice of the pending suit, Mullane v. Central Hanover Trust Co., 339 U.S. 306, 70 S.Ct. 652, 94 L.Ed. 865 (1950), and that the defendant be subject to the personal jurisdiction of the court, International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95 (1945).

Before a court can exercise personal jurisdiction over a non-resident defendant, it must determine that “minimum contacts” exist between the forum state and the nonresident defendant which comport with due process. Asahi Metal Ind. v. Super. Ct. of Cal., Solano Cty., 480 U.S. 102, 107, 107 S.Ct. 1026, 1030, 94 L.Ed.2d 92 (1987). The test is essentially a determination by the forum court as to whether it is reasonable, due to the non-resident defendant’s conduct in connection with the forum state, for the nonresident defendant to anticipate being haled into court in the forum state. World Wide Volkswagen v. Woodson, 444 U.S. 286, 100 S.Ct. 559, 62 L.Ed.2d 490 (1985). A further inquiry is whether the non-resident defendant purposefully availed himself or itself of the privilege of conducting activities within the forum state. Burger King Corporation v. Rudzewicz,

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837 F. Supp. 274, 1993 U.S. Dist. LEXIS 15965, 1993 WL 462413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reliable-tool-machine-co-v-u-haul-international-inc-innd-1993.