Resource Ventures, Inc. v. Resources Management International, Inc.

42 F. Supp. 2d 423, 1999 U.S. Dist. LEXIS 4083, 1999 WL 182203
CourtDistrict Court, D. Delaware
DecidedMarch 23, 1999
DocketCiv.A. 96-491-JJF
StatusPublished
Cited by58 cases

This text of 42 F. Supp. 2d 423 (Resource Ventures, Inc. v. Resources Management International, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Resource Ventures, Inc. v. Resources Management International, Inc., 42 F. Supp. 2d 423, 1999 U.S. Dist. LEXIS 4083, 1999 WL 182203 (D. Del. 1999).

Opinion

MEMORANDUM OPINION

FARNAN, Chief Judge.

Presently before the Court is the Defendants’ Motion to Dismiss (D.I.32). The Defendants argue that because Defendant Resources Management International, Inc.' is a dissolved company, the Plaintiffs claims against it are untimely. (D.I.32). The Defendants also contend: 1) that the Court lacks personal jurisdiction over the other Defendants; 2) that service as to those Defendants was improper; 3) that the Plaintiffs claims are time-barred; and 4) that Plaintiff fails to state a claim upon which relief can be granted. (D.I.33). ■ The Plaintiff has filed an Answering Brief (D.I.41) and the Defendants have filed a Reply (D.I.47). The Plaintiff has also filed a Supplemental Response (D.I.53). For the reasons discussed below, the Defendants’ Motion to Dismiss (D.I.32) will be granted in part and denied in part.

BACKGROUND

Plaintiff Resource Ventures, Inc. (“RVI”) is a Maryland company that develops technology related to the recapture and refining of “flare gas” burned off as a waste product during the processing of petroleum. (D.I. 28 at ¶¶ 3 and 10). The Defendant Resources Management International, Inc. (“RMI”) is a Delaware company that operates as an oil service contractor and business consulting firm in Southeast Asia. (D.I. 28 at ¶ 4). The Defendant P.T. Resources Jaya Technic Man *428 agement Indonesia (“PT-RMI”) and Defendant P.T. Sumber Daya Kelola (“SDK”) are Indonesian companies affiliated with RMI. (D.I. 28 at ¶¶ 5 and 6). Defendants Walter Frost and Harvey Goldstein, both citizens of the United States, and Defendant David Salman, a citizen of Indonesia, have all served as directors, officers and employees of RMI and PT-RMI. (D.I. 28 at ¶¶ 7, 8 and 9).

In August, 1985, Plaintiff RVI and Defendant RMI entered into an agreement regarding a joint venture involving natural gas recovery and processing in Indonesia. (D.I. 33 at Exh. C). It is certain disagreements that arose between the parties as to the interpretation of that agreement which form the basis of this lawsuit. 1

DISCUSSION

I. Timing of Claim Against RMI

RMI contends that the Complaint as it relates to RMI should be dismissed because RMI was dissolved at the time the Plaintiff commenced this action against RMI. (D.I. 33 at 11). Title 8, Section 278 of the Delaware Code permits an action 'against a dissolved corporation only if it is brought before the expiration of three years from the date of dissolution. Del. Code Ann. tit. 8, § 278 (1997). According to RMI, it dissolved on December 22,1993, and therefore, the three year period in which it can be sued expires on December 22, 1996. (D.I. 33 at 11). Although the Plaintiff filed the original complaint in this matter on October 11,1996, RMI contends that the Plaintiff initially sued a Defendant company called Resource Management International, and not RMI. (D.I. 33 at 11). RMI contends that it was not named as a party until March 19, 1997 and not served through the Secretary of State until March 24, 1997, which was after December 22, 1996. (D.I. 33 at 12). RMI contends that the Plaintiff could have easily ascertained the proper identity of RMI, and therefore the Amended Complaint, which adds RMI as a Defendant to this litigation, should not relate back to the date of the Original Complaint. (D.I. 47 at 4-5).

In response, the Plaintiff contends that the designation of Resource Management, Inc. as a Defendant in the Original Complaint was a result of a typographical error, and that such an error should not mandate dismissal of the action against RMI. (D.I. 41 at 14). The Plaintiff contends that the error was inadvertently carried over from RMI’s own document, and that the Original Complaint sufficiently identified RMI. (D.I. 41 at 15).

The Court agrees with the Plaintiff that the typographical error which occurred should not result in the dismissal of RMI from this action. The fact that RMI itself made similar typographical errors on documents exchanged with the Plaintiff demonstrates the reasonableness of the Plaintiffs mistake. Additionally, although service on RMI occurred dutside of the 120-day period dictated by Federal Rule of Civil Procedure 4(m), the Court concludes that the requirements for relation back to the Original Complaint have been met under Federal Rule of Civil Procedure 15(c).

In order for an amendment that changes the name of the defendant to relate back to the filing date of the Original Complaint, the claim must have arisen out of the same transaction as that set forth in the original complaint, and,

within the period provided by Rule 4(m) for service of the summons and complaint, the party to be brought in by amendment (A) has received such notice *429 of the institution of the action that the party will not be prejudiced in maintaining a defense on the merits, and (B) knew or should have known that, but for a mistake concerning the identity of the proper party, the action would have been brought against the party.

Fed.R.Civ.P. 15(c). Courts have interpreted the notice requirement under Rule 15(c) broadly, to include actual, constructive, or imputed notice, through formal or informal channels. See e.g., Wine v. EMSA Ltd., 167 F.R.D. 34, 37-38 (E.D.Pa.1996); Kinnally v. Bell of Pennsylvania, 748 F.Supp. 1136,1141 (E.D.Pa.1990); James Wm. Moore, 3 Moore’s Federal Practice § 15.19[3][c] (3d ed.1997). RMI concedes that service was made on the remaining Defendants on January 28, 1997, which was within the 120-day period required by Rule 4(m). (D.I. 33 at 12); Fed.R.Civ.P. 4(m). Given the relationships between the Plaintiff and RMI and among the other Defendants, the Court finds it reasonable that RMI had notice of the instant lawsuit, and knew or should have known that the action would have been brought against it in the absence of the typographical error made by the Plaintiff. RMI does not deny it had notice, but only contends that it was not served within the requisite time. Further, the Court finds that RMI has not demonstrated that it will be unduly prejudiced by the late service in maintaining a defense. Therefore, because RMI had notice and is not prejudiced, the Court concludes that Plaintiffs typographical error will not result in the dismissal of the claims against RMI.

II. Service of Process upon the Indonesian Defendants

The Indonesian Defendants, PT-RMI, SDK and David Salman contend that the Complaint as it pertains to them should be dismissed because of the Plaintiffs failure to properly complete service. (D.I. 33 at 28-29). In response, the Plaintiff contends that proper service was effected upon all the Indonesian Defendants pursuant to

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42 F. Supp. 2d 423, 1999 U.S. Dist. LEXIS 4083, 1999 WL 182203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/resource-ventures-inc-v-resources-management-international-inc-ded-1999.