Reyes Welding Contractors LLC v. Pilgrim’s Pride Corporation

District Court, N.D. Alabama·Decided August 7, 2026·No. 4:24-cv-01800·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ALABAMA MIDDLE DIVISION

REYES WELDING CONTRACTORS LLC, Plaintiff,

v. Case No. 4:24-cv-1800-CLM

PILGRIM’S PRIDE CORPORATION, Defendant. MEMORANDUM OPINION Plaintiff Reyes Welding Contractors, LLC (“Reyes”) contracted with Pilgrim’s Pride Corporation (“Pilgrim’s”) to perform welding work at Pilgrim’s Athens, Georgia plant location. Reyes sued Pilgrim’s for breach of contract, alleging the company failed to pay multiple invoices for sums owed totaling $1,679,690. Pilgrim’s now moves to dismiss Reyes’ claims or, in the alternative, transfer this litigation to the Middle District of Georgia, Athens Division. (Doc. 16). For the reasons explained below, the court DENIES Defendant Pilgram’s Pride Corporation’s motion to dismiss for lack of jurisdiction, or in the alternative, to transfer venue. (Doc. 16). BACKGROUND A. General Allegation: Breach of Contract Pilgrim’s is a Colorado corporation that produces chicken products, and Reyes is an Alabama LLC that performs welding services. This case stems from Pilgrim’s contract with Reyes to manufacture, fabricate, and install metal objects on a Pilgrim’s plant in Athens, Georgia. Reyes says Pilgrim’s still owes an outstanding balance of $1,679,690.00 that Pilgrim’s denies owing Reyes. B. The Lawsuit Reyes sued Pilgrim’s in Alabama state court for five counts of Breach of Contract. (Doc. 1-1, pp. 4-5). Pilgrim’s then removed the case to this court based on diversity jurisdiction under 28 U.S.C. § 1332. (Doc. 1). And following the removal, Pilgrim’s challenged (1) the court’s personal jurisdiction over it, and (2) venue being proper in the Northern District of Alabama. (Doc. 4). The court could not determine, based on the limited information it had, whether it had personal jurisdiction over Pilgrim’s. So on September 25, 2025, the court ordered the parties to engage in jurisdictional discovery and asked the parties to focus on (1) all work Reyes Welding did for Pilgrim’s, regardless of location, and (2) any ‘prefatory’ work Reyes performed in Alabama before completing an assignment at a Pilgrim’s facility outside Alabama. (Doc. 15). The parties completed the jurisdictional discovery, and Pilgrim’s now renews its motion to dismiss or, in the alternative, to transfer venue. (Doc. 16). C. Jurisdictional Facts In response to the court’s order, the parties submitted declarations, answers to interrogatories, and a string of messages between employees of Reyes and Pilgrim’s. (See 16-1, 16-2, 16-3, 16-4, 20-1, 20-2). Based on these submissions, the court finds these facts for the limited purpose of deciding whether it has personal jurisdiction over Pilgrim’s: Reyes Welding is based in Marshall County, Alabama. Before 2016, Reece Smith worked for Tyson’s (another chicken producer) in Marshall County. Reyes welded for Tyson’s while Smith worked for Tyson’s. Reece Smith left Tyson’s to become Pilgrim’s Regional Maintenance Director for plants in Georgia, Tennessee, Kentucky, and Texas. Upon arriving at Reyes, Smith told Bobby Owsley (and almost certainly others) about Reyes’ welding work. Since then, Pilgrim’s has paid Reyes to weld at Pilgrim’s plants in Athens, Georgia; Canton, Georgia; Elberton, Georgia; Live Oak, Florida; Lufkin, Texas; and, Morefield, West Virginia. Bobby Owsley was Pilgrim’s Athens plant manager. Owsley called Reyes to invite Reyes’s owner and employees to the Athens plant to discuss possible welding work. According to Yonathan Reyes, Reyes Welding performed work for Pilgrim’s in Athens, Georgia every week after that first meeting until Pilgrim’s refused to pay its outstanding balance— a period that ran from approximately 2020 to 2023. When Pilgrim’s needed Reyes, Bobby Owsley (in Georgia) would call or text Luis Reyes (in Alabama) to tell Reyes what work was to be done and how many men to bring. Luis Reyes would then email a quote for the work to Pilgrim’s, which Pilgrim’s would approve. If Reyes needed materials for the job, Reyes would order them from a different company in Georgia, Stewart Stainless, have the materials shipped to Reyes’ shop in Alabama, and send the invoice to Pilgrim’s. In his declaration, Yonathan Reyes did not address how often Reyes prefabricated these materials at his Alabama shop before taking them to Georgia, versus taking the raw materials to Georgia and completing all fabrication work on site. But one email exchange between Luis Reyes and a Pilgram’s manager shows that Reyes prefabricated hangers at its Alabama shop before driving them to a Pilgrim’s facility in Elberton, Georgia, where Reyes was to perform work on a freezer. (Doc. 20-2, pp. 34-37). So the court finds that sometimes Reyes prefabricated materials that Pilgrim’s paid for in Alabama before moving them to Georgia for installation.1 Once the materials were ready, Reyes would collect the needed men and equipment, including welding machines, grinders, cutting discs, buffing pads, casters, chain hoists, and argon bottles, and drive to Athens to perform the agreed-upon work. Once Reyes finished its works, Reyes would bill Pilgrim’s, and Pilgrim’s would direct payment to Reyes’ bank, Wells Fargo.

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Reyes Welding Contractors LLC v. Pilgrim’s Pride Corporation, (N.D. Ala. 2026).

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