ULTRAFLEX SYSTEMS OF FLORIDA, INC. v. VERITIV OPERATING COMPANY

CourtDistrict Court, D. New Jersey
DecidedDecember 27, 2019
Docket2:19-cv-13308
StatusUnknown

This text of ULTRAFLEX SYSTEMS OF FLORIDA, INC. v. VERITIV OPERATING COMPANY (ULTRAFLEX SYSTEMS OF FLORIDA, INC. v. VERITIV OPERATING COMPANY) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ULTRAFLEX SYSTEMS OF FLORIDA, INC. v. VERITIV OPERATING COMPANY, (D.N.J. 2019).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY ____________________________________ : ULTRAFLEX SYSTEMS OF : FLORIDA, INC., d/b/a ULTRAFLEX : SYSTEMS, INC., : Civil Action No. 19-13308 (KM) (MAH) : Plaintiff, : : v. : : VERITEV OPERATING CO., : : OPINION Defendant. : ____________________________________:

I. INTRODUCTION This matter comes before the Court by way of Defendant/counterclaimant Veritiv Operating Co.’s (“Defendant”) motion to transfer this action to the United States District Court for the District of Delaware pursuant to 28 U.S.C. § 1404(a) or, in the alternative, to dismiss this action on forum non conveniens grounds. Def’s. Mot. to Transfer or Dismiss, June 27, 2019, D.E. 6. The Court has decided this motion without oral argument. See Local Civ. R. 78.1(b). For the reasons set forth below, the Court will deny Defendant’s motion. II. BACKGROUND This action arises out of allegedly unpaid invoices for the sale of commercial substrate materials for digital printing. Plaintiff/counter-defendant Ultraflex Systems of Florida, Inc. (“Plaintiff”) is a “worldwide distribution company of substrate fabrics and accessories used for digital printing” that is incorporated and headquartered in Florida. Compl. ¶ 2, June 3, 2019, D.E. 1. Plaintiff maintains a distribution warehouse and offices in Randolph, New Jersey. Id. ¶ 3. Defendant is a “business-to-business distributor of packaging, facility solutions, print and publishing products and services.” Id. ¶ 5. Defendant is a Delaware corporation with a principal place of business in Atlanta, Georgia, and conducts business in New Jersey from two offices located in this state. Id. ¶ 4. The parties have regularly done business together for the past decade. Id. ¶ 9. “At all times, the parties exchanged routine documents such as purchase orders, sales order confirmations,

and invoices.” Decl. of John E. Schleicher, Jr. in Opp’n to Def.’s Mot. to Transfer (“Schleicher Decl.”) ¶ 7, Aug. 5, 2019, D.E. 13-1. Defendant would initiate the parties’ transactions by electronically sending purchase orders that contained Defendant’s Terms and Conditions of Purchase (“Veritiv Terms and Conditions”). Decl. of Scott Dickerson in Supp. of Def.’s Mot. to Transfer (“Dickerson Decl.”) ¶¶ 4-5, Aug. 20, 2019, D.E. 19. Paragraph One of the Terms and Conditions prescribes: Acceptance; Entire Agreement – Unless otherwise agreed to in writing, these Terms and Conditions of Purchase (“Terms”) apply to all purchases by Veritiv Operating Company (“Buyer”) from the supplier of any goods and/or services (“Seller”) hereunder. These Terms constitute Buyer’s offer and may be accepted by Seller only in accordance with the terms hereof. Seller’s acceptance of these Terms and any order hereunder shall occur either through commencement of performance or acknowledgment of the order. By accepting an order hereunder, Seller waives all terms and conditions contained in its quotation, acknowledgment, invoice or other documents which are different from or additional to those contained herein and all such different or additional terms and conditions shall be null and void. No addition to, waiver or modification of, any provisions herein contained shall be of any force or effect unless made in writing and executed by Buyer’s authorized representative.

Dickerson Decl., Ex. A, D.E. 19-1. Paragraph Seventeen, titled “Miscellaneous,” contains both a choice-of-law provision and a forum-selection clause: These terms, any order hereunder, and the rights and obligations of the parties thereto, shall be governed by the laws of the State of Delaware, without giving effect to its principles of conflicts of law. Seller agrees to subject itself to the courts of Delaware and such venue shall be exclusive regarding disputes arising out of these Terms.

Id.; see also Def.’s Answer & Countercls. ¶ 16, June 27, 2019, D.E. 4. Upon receipt of a purchase order, Plaintiff would promptly transmit to Defendant a sales order confirmation that included a copy of its own terms and conditions of sale (“Ultraflex Terms and Conditions”). See Schleicher Decl. ¶ 8; Dickerson Decl. ¶¶ 7-8. The final provision of the Ultraflex Terms and Conditions prescribes: MISCELLANEOUS: This agreement is effective upon shipment of the Product by Ultraflex. This agreement is governed by New Jersey law and Purchaser agrees that in the event of any dispute arising under or relating to this purchase and sale agreement that Purchaser shall submit to the exclusive personal jurisdiction of the state and federal courts situated in the State of New Jersey.

Schleicher Decl., Ex. 1, D.E. 13-2. Defendant submitted multiple purchase orders for substrate materials to Plaintiff between September 2018 and March 2019. See Compl. ¶ 10; Schleicher Decl. ¶ 2. Following delivery, Plaintiff issued invoices to Defendant from its New Jersey office. Compl. ¶¶ 11-13. However, Defendant refused to pay those invoices on the basis that an October 2017 order was deemed defective by one of Defendant’s customers, Circle Graphics, Inc. See id. ¶ 14-15; Schleicher Decl. ¶¶ 3-4. Plaintiff avers that it provided an appropriate credit for the allegedly defective shipment towards Defendant’s unpaid balance from the 2018-19 purchases. Compl. ¶¶ 16-17. As a result, Plaintiff filed this breach-of-contract action seeking the unpaid balance plus interest, attorneys’ fees, and late charges pursuant to the Ultraflex Terms and Conditions. Id. ¶¶ 18-26. Defendant filed three counterclaims arising from the October 2017 order of allegedly defective goods. Answer & Countercls., ¶¶ 28-43. Defendant alleges that it ordered 239 rolls of graphic printing product from Plaintiff for the purpose of resale to one of its own customers. Id. ¶ 17. Defendant’s customer “experienced immediate printing failures” with respect to thirty of the first sixty printing rolls shipped. Id. ¶ 18. “As a result, [Defendant’s] customer returned the remaining 30 rolls from [Defendant’s] 60-roll delivery and refused to receive any further deliveries from that same batch of rolls provided by [Plaintiff].” Id. ¶ 19. Despite continued efforts by

Defendant to obtain a full refund, Plaintiff only issued Defendant a credit for twelve of the 239 printing rolls. Id. ¶¶ 20-22. Defendant seeks money damages, lost profits, and other relief in conjunction with the defective sale from Plaintiff. Id. ¶¶ 23-27. Defendant submits that the Veritiv Terms and Conditions supplies many of its remedies it seeks by way of its counterclaims. See id. ¶¶ 2-4, 11-15, 24-26, 33, 39. Defendant now moves to have this case transferred to the United States District Court for the District of Delaware pursuant to the forum-selection clause in the Veritiv Terms and Conditions or, in the alternative, dismissed on the grounds of forum non conveniens. See generally Mot. to Transfer or Dismiss, June 27, 2019, D.E. 6. III. DISCUSSION

a. Battle of the Forms Relying on their respective term sheets, the parties dispute whether New Jersey or Delaware law applies to this action and whether Plaintiff properly filed suit in this forum. To ultimately determine whether this case must be transferred to the District of Delaware, this Court must first resolve a “battle of the forms” under Section 2-207 of the Uniform Commercial Code (“U.C.C.”).1

1 Both New Jersey and Delaware have adopted identical forms of U.C.C. § 2-207. Compare N.J. Stat. Ann. § 12A:2-207 with Del. Code Ann. tit. 6, § 2-207. Accordingly, this Court will cite to the U.C.C. directly when appropriate. See Step-Saver Data Sys., Inc. v. Wyse Tech., 939 F.2d 91

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ULTRAFLEX SYSTEMS OF FLORIDA, INC. v. VERITIV OPERATING COMPANY, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ultraflex-systems-of-florida-inc-v-veritiv-operating-company-njd-2019.