Savis, Inc. v. Warner Lambert, Inc.

967 F. Supp. 632, 1997 U.S. Dist. LEXIS 8879, 1997 WL 348482
CourtDistrict Court, D. Puerto Rico
DecidedJune 5, 1997
DocketCivil 96-1751 (JP)
StatusPublished
Cited by8 cases

This text of 967 F. Supp. 632 (Savis, Inc. v. Warner Lambert, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Savis, Inc. v. Warner Lambert, Inc., 967 F. Supp. 632, 1997 U.S. Dist. LEXIS 8879, 1997 WL 348482 (prd 1997).

Opinion

ORDER

PIERAS, Senior District Judge.

I. INTRODUCTION & BACKGROUND

The Court has before it defendant’s Motion to Dismiss for Lack of Subject Matter Jurisdiction (docket No. 10). For the reasons set forth below, the Court has not jurisdiction to adjudicate this case. The defendant’s motion is hereby GRANTED motion this case is hereby and DISMISSED. The Court briefly sets forth the procedural and factual backdrop of this case.

The defendant, Warner-Lambert, Inc. (“WLI”) a wholly-owned subsidiary of Warner-Lambert Company (“WLC”) 1 organized under the laws of the State of Nevada, manufactures pharmaceutical, health care and confectionary products. It maintains several manufacturing plants in Puerto Rico. In August 1993, the Food and Drug Administration (“FDA”) issued regulations requiring 100% electronic label verification in packaging control procedures by August 3, 1994 and which applied to three of WLI’s packaging lines in Puerto Rico. See 21 C.F.R. parts 210-211. Spurred by these regulations, WLI entered into a series of contracts with the plaintiff, Savis, Inc., (“Savis”), a corporation existing under the laws of the Commonwealth of Puerto Rico, whereby Savis agreed to design and produce a system, incorporating computer hardware and software, that would enable WLI to comply with the FDA regulations on its three lines in Puerto Rico. For various reasons, which are in dispute but with which the Court is not herein concerned, the contract was never completed. Savis brings this action for breach of contract, invoking the Court’s jurisdiction based on 28 U.S.C. § 1332, alleging diversity of citizenship. In the motion now before the Court, WLI seeks dismissal of the action, alleging that the parties are both citizens of Puerto Rico and that the Court therefore lacks jurisdiction over the subject matter of the suit.

The parties have provided the Court with numerous submissions on the issue of subject matter jurisdiction. Following the defendant’s initial Motion to Dismiss for Lack of Subject Matter Jurisdiction, the plaintiff filed an opposition (docket No. 14); 2 next, the defendant rejoined with an Opposition to Plaintiffs Request of Discovery and Reiterating Motion to Dismiss for Lack of Subject Matter Jurisdiction 3 (docket No. 15); then the plaintiff tendered a Motion in Reply to Defendant’s Opposition to Motion to Dismiss 4 (tendered, but not filed or docketed); the plaintiff next filed a motion styled, Motion Requesting Leave of this Honorable Court to File a Reply to Defendant’s Motion Titled Opposition to Plaintiffs Request for Discovery and Reiterating Motion to Dismiss for Lack of Subject Matter Jurisdiction (docket No. 16); and finally (we hope) the defendant filed a Motion Under Local Rule 311.7 or in the Alternative Submitting SurReply (docket No. 17). As an initial matter, the Court GRANTS all motions for leave to file and accepts and will consider all submissions. The Clerk of Court SHALL docket the plaintiffs March 18, 1997 Motion in Reply to Defendant’s Opposition to Motion to *635 Dismiss. The Court will not regard any further submissions on this issue.

II. ARGUMENTS OF THE PARTIES

The defendant argues that both it and the plaintiff are residents of Puerto Rico and that their citizenships are therefore not diverse for the purposes of 28 U.S.C. § 1332, the statute by which Congress defines diversity jurisdiction in federal district courts. Thus, according to the defendant, the Court has no jurisdiction and must dismiss the case. In particular, the defendant has alleged, through the affidavit of Mr. Robert J. Janosky, president of WLI, that Puerto Rico is WLI’s principle place of business. In support of that contention, Mr. Janosky swears to the following facts (among others): (1) he, as president of WLI, “control[s] and direct[s] WLI’s activities, along with WLI’s management team,” and that he and the management team, as well as WLI’s plant managers, directors of finance, human resources, information services, and manufacturing technology and the manager of environmental affairs are all residents of Puerto Rico; (2) WLI owns and operates three manufacturing plants and a sales office in Puerto Rico, but that WLI does not own or operate facilities outside of Puerto Rico; (3) WLI’s headquarters are in Vega Baja, Puerto Rico; (4) decisions on the employment and discharge of WLI employees are made by WLI’s management in Puerto Rico; (5) all of WLI’s gross manufacturing income is generated in Puerto Rico; (6) WLI is responsible for the preparation, filing and payment of its own taxes and Social Security contributions, records of which are kept in its offices in Vega Baja, Puerto Rico; (7) WLI has its own accounting system operated from its principal offices in Vega Baja, Puerto Rico; (8) WLI’s general ledger is kept in Vega Baja, PR; (9) all of WLI’s bank accounts, are maintained in banks located in Puerto Rico; (10) WLI does not have corporate offices, personnel, records, factories, warehouses, sales offices, or any corporate activity in any place outside of Puerto Rico, where the business activity and day-to-day management of WLI are performed.

The plaintiff, in its initial response, first argues that even if Mr. Janosky’s assertions are credited, the defendant has not “provided [any evidence] as to defendant’s relation with its parent company, Warner Lambert Corporation, 5 with whom many of the pre-contract negotiations were conducted, as well as key decisions and instruction at all stages of the execution of the contract object of this case.” Moreover, the plaintiff asserts that “[t]he parent company’s involvement in the contract object of this case as well as in defendant’s business operation, are primary issues in the determination by this Court as to defendant’s principal place of business for diversity jurisdiction purposes.” The plaintiff, citing Media Duplication Services v. HDG Software, 928 F.2d 1228, 1235-1237 (1991), in which the United States Court of Appeals for the First Circuit discussed the “nerve center” test for the determination of a corporation’s principle place of business, contends that the defendant’s principle place of business is outside of Puerto Rico. In support of its contention, the plaintiff has appended to its opposition various correspondence between the defendant, the defendant’s parent corporation, and the plaintiff, as “evidence that the parent company, which by defendant’s own admission is a publicly held corporation with principal offices in New Jersey, is the ‘nerve center’ of WLI and intervenes [sic] a substantial part of its operations was outside Puerto Rico.” 6

*636 The defendant’s reply argues that the plaintiff has failed to provide competent evidence to establish jurisdiction.

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Cite This Page — Counsel Stack

Bluebook (online)
967 F. Supp. 632, 1997 U.S. Dist. LEXIS 8879, 1997 WL 348482, Counsel Stack Legal Research, https://law.counselstack.com/opinion/savis-inc-v-warner-lambert-inc-prd-1997.