Silver Lining Enterprises LLC v. Worldwise Fashion Consulting LLC

CourtDistrict Court, W.D. Oklahoma
DecidedDecember 18, 2023
Docket5:21-cv-00112
StatusUnknown

This text of Silver Lining Enterprises LLC v. Worldwise Fashion Consulting LLC (Silver Lining Enterprises LLC v. Worldwise Fashion Consulting LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Silver Lining Enterprises LLC v. Worldwise Fashion Consulting LLC, (W.D. Okla. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF OKLAHOMA

SILVER LINING ENTERPRISES, LLC, ) ) Plaintiff, ) ) v. ) Case No. CIV-21-00112-JD ) WORLDWISE FASHION ) CONSULTING, LLC, a Connecticut ) limited liability company; NEW GEN ) ENTERPRISES, LLC, a New Jersey ) limited liability company; and ) ERIC MATRULLO, an individual, ) ) Defendants. )

ORDER Before the Court is the Motion to Dismiss (“Motion”) [Doc. No. 12] filed by Worldwise Fashion Consulting, LLC (“Worldwise”), New Gen Enterprises, LLC (“New Gen”), and Eric Matrullo (“Matrullo”) (collectively, “Defendants”). The Motion seeks dismissal of Silver Lining Enterprises, LLC’s (“SLE”) Amended Complaint [Doc. No. 10] under Federal Rule of Civil Procedure 12(b)(2) for lack of personal jurisdiction. SLE filed a response opposing the Motion (“Response”) [Doc. No. 17], and Defendants filed a reply (“Reply”) [Doc. No. 18]. Upon careful consideration, and for the reasons stated below, the Court grants the Motion. I. BACKGROUND SLE is an Oklahoma limited liability company with its principal place of business in Oklahoma. The sole member of SLE is Cindy Keathly (“Keathly”), a citizen of Oklahoma. SLE buys luxury products, verifies their authenticity, then sells them to third- party vendors such as Costco. To facilitate the sale of its products to third-party buyers, SLE provides certain assurances regarding the products’ authenticity, such as an open “invoice trail” that allows third-party buyers to trace the origins of the products.

Worldwise is a Connecticut limited liability company with its principal place of business in Connecticut. Matrullo is the sole member. New Gen is a New Jersey limited liability company with its principal place of business in New Jersey. It has three members: Matrullo, Nicole Dragona (“Dragona”), and Gina Johnson (“Johnson”). Matrullo, Dragona, and Johnson are citizens of Connecticut, New Jersey, and Illinois,

respectively. In early 2020, Worldwise, via Matrullo, reached out to SLE about doing business together. SLE responded by sending Matrullo a “wish list” of brands it was interested in selling to its vendors. Matrullo replied regarding the availability of Gucci products. Around this time, SLE entered a Non-Circumvention, Non-Disclosure & Working

Agreement (“NDA”) with Worldwise. Although not entirely clear, it appears New Gen was formed in May 2020 for the purpose of facilitating this transaction. See Am. Compl. ¶¶ 11–12; Keathly Aff. ¶ 7. SLE began negotiating with Matrullo1 regarding the purchase of various Gucci products including belts, shoulder bags, and top handle bags. Matrullo told SLE that he

1 Keathly’s affidavit is not entirely clear which LLC Matrullo was acting on behalf of whenever he contacted her. Although both parties seem to agree that New Gen was the primary facilitator of the Gucci products sale as evidenced by Dragona’s and Keathly’s numerous text messages and the actual contracts, it also looks like Matrullo emailed Keathly about the Gucci products from his Worldwise email address. was looking forward to “working on exciting business opportunities.” Keathly Aff. ¶ 10. Dragona contacted SLE about the possibility of sending it samples of the Gucci products. SLE was sent a package of sample scarves. Matrullo also coordinated the delivery of

additional Gucci samples. On all documentation that included SLE’s address, it showed that SLE was located in Edmond, Oklahoma. Accordingly, all samples sent to SLE were sent to this Oklahoma address. The parties primarily communicated by email. However, they also used a conference call line and text messaging. Dragona and Keathly texted about the details of

the transaction. The texts focused on how the parties could work together, specifics of the Gucci deal, other possible products and deals, and the authenticity of the Gucci products. Via numerous emails, Matrullo and SLE discussed the shipment and cost of the Gucci products. When the parties finally agreed on terms, Matrullo, acting on behalf of New Gen,

forwarded SLE an open invoice trail for the Gucci products. SLE e-mailed Matrullo regarding concerns with the open invoice trail, specifically the purported invoice from Gucci. New Gen sent SLE an allegedly corrected invoice trail. In September, SLE sent two purchase orders to New Gen to officially buy the Gucci products. SLE wired New Gen $239,265.30 as a deposit. SLE’s deposit contract

and purchase orders were with New Gen. Under the terms of the purchase orders, the goods were to be delivered “FOB Amsterdam.” SLE was to take delivery of the product in the Netherlands and then ship it to SLE’s third-party buyer in South Korea and the state of Washington. No part of either contract was to be performed in Oklahoma. Costco rejected the goods, telling SLE that the paper trail provided by New Gen was not acceptable. SLE, claiming New Gen violated the terms and conditions of their agreement, requested a refund. New Gen refused.

This action by SLE followed. II. LEGAL STANDARDS A. Standard for 12(b)(2) Motion “[W]hen the court’s jurisdiction is contested, the plaintiff has the burden of proving jurisdiction exists.” Wenz v. Memery Crystal, 55 F.3d 1503, 1505 (10th Cir.

1995). In the absence of an evidentiary hearing,2 “the plaintiff need only make a prima facie showing of personal jurisdiction.” OMI Holdings, Inc. v. Royal Ins. Co. of Can., 149 F.3d 1086, 1091 (10th Cir. 1998). “The plaintiff may make this prima facie showing by demonstrating, via affidavit or other written materials, facts that if true would support jurisdiction over the defendant.” Id. “The allegations in the complaint must be taken as

true to the extent they are uncontroverted by the defendant’s affidavits.” Wenz, 55 F.3d at 1505 (quotation marks and citation omitted). “However, only the well pled facts of plaintiff’s complaint, as distinguished from mere conclusory allegations, must be accepted as true.” Id. “If the parties present conflicting affidavits, all factual disputes must be resolved in the plaintiff’s favor, and the plaintiff’s prima facie showing is

sufficient notwithstanding the contrary presentation by the moving party.” Id. (quotation

2 “District courts have discretion to hold or deny an evidentiary hearing to determine personal jurisdiction.” Fireman’s Fund Ins. Co. v. Thyssen Mining Constr. of Can., Ltd., 703 F.3d 488, 494 (10th Cir. 2012). Here, neither party has requested an evidentiary hearing on this issue, so the Court sees no reason to hold one. marks and citation omitted). “In order to defeat a plaintiff’s prima facie showing of jurisdiction, a defendant must present a compelling case demonstrating ‘that the presence of some other considerations would render jurisdiction unreasonable.’” OMI Holdings,

149 F.3d at 1091 (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 477 (1985)). B. Principles of Personal Jurisdiction “The law of the forum state and constitutional due process limitations govern personal jurisdiction in federal court.” Old Republic Ins. Co. v. Cont’l Motors, Inc., 877 F.3d 895, 903 (10th Cir. 2017). Oklahoma’s long-arm statute provides that Oklahoma

courts may “exercise jurisdiction on any basis consistent with the Constitution of this state and the Constitution of the United States.” Okla. Stat. tit.

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