Rexam Airspray, Inc. v. Arminak

471 F. Supp. 2d 1292, 2007 U.S. Dist. LEXIS 9216, 2007 WL 283438
CourtDistrict Court, S.D. Florida
DecidedJanuary 26, 2007
Docket06-61619CIV
StatusPublished
Cited by4 cases

This text of 471 F. Supp. 2d 1292 (Rexam Airspray, Inc. v. Arminak) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rexam Airspray, Inc. v. Arminak, 471 F. Supp. 2d 1292, 2007 U.S. Dist. LEXIS 9216, 2007 WL 283438 (S.D. Fla. 2007).

Opinion

ORDER GRANTING MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION

UNGARO-BENAGES, District Judge.

THIS CAUSE is before the Court upon the Verified Amended Complaint (D.E.# 17) and Motion for Temporary Injunction (D.E.# 4, 10/27/06). Defendants filed their Motion to Dismiss Plaintiffs Verified Amended Complaint for Lack of Personal Jurisdiction, for Failure to State a Claim, and Pursuant to the “First-filed Rule”, on December 7, 2006 (D.E.# 32). Plaintiff responded to the Motion on December 20, 2006 (D.E.# 37) and Defendants filed their corrected reply on January 3, 2007 (D.E.#53). The Defendants also filed an opposition to Plaintiffs request for a temporary injunction (D.E.12). The issues before this Court have been thoroughly briefed.

By way of introduction, Plaintiff Rexam Airspray, Inc. (“Airspray”) is a Florida-based manufacturer of foam dispensers used in cosmetic packaging, among other products. Defendant Helga Arminak is the President of Arminak & Associates, Inc. (“Arminak, Inc.”), a California-based provider of packaging, including pumps, for use in various cosmetic, beauty, personal care, automotive and cleaning products. On March 23, 1999, Airspray and Helga Arminak entered into an agreement pursuant to which Helga Arminak was to promote, market and sell Air-spray’s products in twelve western states. The agreement, as amended from time to time, contained, inter alia, non-compete and confidentiality provisions, and was re *1294 newable annually after its initial five-year term. In 2004, Arminak, Inc. replaced Helga Arminak as the contracting party.

On October 25, 2006, Airspray initiated this lawsuit by filing a verified complaint against Defendants alleging breach of contract, and requesting a declaratory judgment and injunctive relief with respect to the non-competition and confidentiality provisions contained in the agreement. Two days later, Airspray moved for entry of a temporary injunction enforcing the non-compete and confidentiality portions of the contract.

Defendants timely filed their response in opposition to the motion for temporary injunction. Subsequently, Airspray amended the complaint to add specific allegations of jurisdiction pursuant to Florida Statutes § 48.193(2). Defendants then moved to dismiss the Amended Complaint based on lack of personal jurisdiction, failure to state a claim, and based on the first filed rule. 1

The Court noticed and convened an evi-dentiary hearing to resolve Defendants’ motion to dismiss for lack of personal jurisdiction and Airspray’s motion for temporary injunction on January 11, 2007. At the hearing, the Court heard the testimony of Helga Arminak and Robert Brands, President of Airspray.

Based on the following Findings of Fact and Conclusions of Law, this Court finds that it lacks personal jurisdiction over both Defendants, and therefore it must dismiss the action.

FINDINGS OF FACT

Background Facts

1. On March 23, 1999 Helga Arminak and Airspray entered into an agreement whereby Helga Arminak became an independent sales representative of Airspray for an exclusive territory that included California and eleven other Western States. (Am. Compl., ¶ 12 and Ex. A thereto.)

2. The contract became effective in May 1999 for an initial period of five years to be renewed automatically on an annual basis. (Am. Compl., ¶ 12 and Ex. A thereto.) The contract was amended in December 2000 and June 2004. The 2004 Amendment made the contract between Airspray and Arminak, Inc. (Am. CompLEx. B.)

3. The contract contains a confidentiality clause, a disclosure clause regarding improvements or modifications, and a non-compete clause. The alleged breach of these provisions forms the basis of Plaintiffs claims for breach of contract, injunction and declaratory relief. (Am. Compl. and Ex. A thereto.)

4. The non-compete clause states:

In consideration of the compensation to be paid to Helga Arminak under this Agreement, as well as the wide access Airspray grants to Helga Arminak to review and become familiar with Air-spray’s business, including certain valuable trade secrets and other Airspray-information, and the opportunity provided to Helga Arminak by Airspray to develop substantial relationships with *1295 Airspray’s customers and potential clients in the Territory, Helga Arminak, as part of and ancillary to this Agreement, for a reasonable period of time following termination of this Agreement, for any reason directly or indirectly, by any means or device, for herself or on behalf of or in conjunction with any person, partnership or corporation, agrees not to:
(a) induce, entice or hire or attempt to hire any employee or authorised representative of Airspray; or
(b) compete in the Territory with Air-spray or solicit in the Territory any customers of Airspray in the products and services provided by Airspray
The parties agree that a reasonable period of time, for the purposes of this paragraph shall be one year.

(Am.Compl.Ex. A, Art. 9.6.)

5. The contract also contains the following forum selection clause:

This agreement shall be construed under, governed by and the legal relations between the parties shall be determined by, the laws of the State of Florida. Any controversy, claim or dispute between the Parties arising out of or relating to this Agreement shall be submitted to any competent Court in the State of Florida judging in first instance.

(Am.Compl.Ex. A, Art. 10.)

Jurisdictional Facts

6. Plaintiff alleges that “this Court has jurisdiction over the Defendants pursuant to § 48.193(2), Florida Statutes, as the Defendants are engaged in substantial and not isolated activity within Florida.” 2 (Am.Compl., ¶ 7.)

7. In its Amended Complaint, Plaintiff asserts three specific facts which allegedly permit the exercise of “general jurisdiction” pursuant to § 48.193(2):(1) that Defendants are engaged in substantial business activity in Florida through an agent, K.G. International, Inc.; (2) that Defendants advertised in the October 2006 issue of a trade journal that was circulated in Florida; and (3) that Defendants maintain a website which includes a catalog of Defendants’ products. (Am.Compl., ¶¶ 7, 27-28.)

8. Prior to the evidentiary hearing, Plaintiff submitted the Supplement Declaration of Barry Rothberg which identified three additional advertisements that ran in two nationally distributed trade journals in November and December, 2006. (Decl. Rothberg.)

9. Plaintiff also submitted the Affidavit of Odie Cernonok. The affidavit states that Mr. Cernonok is currently a Regional Sales Representative for Airspray and has served in that position since November 2004. (Aff. Cernonok ¶ 1.)

10. From 2003 until July 2006, Mr.

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Bluebook (online)
471 F. Supp. 2d 1292, 2007 U.S. Dist. LEXIS 9216, 2007 WL 283438, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rexam-airspray-inc-v-arminak-flsd-2007.