Viracon, Inc. v. J & L Curtain Wall LLC

929 F. Supp. 2d 878, 2013 WL 885465, 2013 U.S. Dist. LEXIS 32271
CourtDistrict Court, D. Minnesota
DecidedMarch 8, 2013
DocketCiv. No. 12-2566 (RHK/JJK)
StatusPublished
Cited by10 cases

This text of 929 F. Supp. 2d 878 (Viracon, Inc. v. J & L Curtain Wall LLC) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Viracon, Inc. v. J & L Curtain Wall LLC, 929 F. Supp. 2d 878, 2013 WL 885465, 2013 U.S. Dist. LEXIS 32271 (mnd 2013).

Opinion

MEMORANDUM OPINION AND ORDER

RICHARD H. KYLE, District Judge.

INTRODUCTION

Plaintiff Viracon, Inc. (“Viracon”) is a Minnesota-based fabricator of architectural glass. In early 2009, a New York-based [880]*880company, Defendant J & L Curtain Wall LLC (“J & L”), agreed to purchase over $1 million worth of Insulated Glass Units (“IGUs”)1 from Viracon for use in the construction of a hotel in upstate New York.2 When J & L failed to pay for the IGUs, Viracon commenced the instant action; J & L now moves to dismiss for lack of personal jurisdiction and improper venue. For the reasons that follow, the Court concludes that it lacks personal jurisdiction over J & L and, accordingly, it will dismiss this action without prejudice.

BACKGROUND

The relevant facts are straightforward. J & L is a New York limited liability company that “specializes in building exterior curtain walls3 to be used in construction projects.” (Cappelli Deck ¶ 12.)4 It is headquartered in Valhalla, New York, and its primary business operations are in and around New York state. (Id. ¶¶ 12, 14.) It is not registered to do business in Minnesota; has no offices in this state; owns no Minnesota property; has no registered agents here; and has never paid Minnesota taxes. (Id. ¶ 14.)

In 2008, J & L was retained to build the curtain wall at the “Concord Project,” a hotel and casino development project in upstate New York. (Compl. ¶ 8; Cappelli Deck ¶ 4.) In response to a solicitation it had received from Viracon, on December 11, 2008, J & L faxed from its New York headquarters a “letter of intent” to purchase IGUs from Viracon for use at the Concord Project. (Simon Deck ¶ 4 & Ex. A.) The letter specified that the IGUs, which were to be manufactured at Viracon’s Minnesota factory in accordance with J & L’s specifications, were to be shipped to a J & L warehouse in Pennsylvania. (Id. Ex. A.)

Because the IGUs were to be shipped before Viracon received payment, it required J & L to submit a credit application. On December 17, 2008, J & L faxed that application to Viracon, providing information about its assets, equity, debts, and liabilities. (Id.) The application listed several “trade references,” one of which was a company located in Minnesota from which J & L previously had purchased products. (Id.; Second Cappelli Deck ¶¶ 4-5.)

Viracon approved J & L’s application, and on December 23, 2008, J & L faxed Viracon a purchase order for several thousand IGUs, at a total cost of approximately $1.5 million, to be delivered to J & L’s Pennsylvania warehouse over the course of several weeks in early 2009. (Simon Deck ¶ 8 & Ex. D.) The following day, Viracon [881]*881faxed back an “order confirmation,” confirming the purchase and incorporating its standard “terms of sale” into the transaction. (Id. ¶ 9 & Ex. E.) Among other things, those terms provided that (1) completed but unshipped orders were “subject to storage charges” by Viracon, (2) J & L could “arrange to inspect” the IGUs at Viracon’s factory before shipment, and (3) Minnesota law would govern the transaction. (Id. Ex. G.)5

Viracon then began manufacturing the IGUs and shipping them to J & L’s Pennsylvania warehouse. Between February and May 2009, it shipped 16 separate lots of IGUs for which it billed J & L approximately $960,000. (Id. ¶ 14 & Ex. J.) J & L accepted all of the IGUs and never informed Viracon they were unacceptable or failed to meet its specifications; however, it did not pay for them. (Id. ¶ 15.) Viracon later manufactured the remaining IGUs in J & L’s order, but because it had not been paid, it stored them in a Minnesota warehouse rather than shipping them to Pennsylvania. (Id. ¶¶ 21, 23.)

In September 2009, Viracon sent J & L an e-mail about its outstanding balance, and J & L responded that the Concord Project had “experienced a delay in obtaining construction financing,” but the financing was due to be completed shortly and it hoped to clear its outstanding debt to Viracon “within the next 3 weeks.” (Id. Ex. K.) When a month passed without payment, Viracon again e-mailed J & L and asked that at least some portion of the outstanding balance be paid. (Id. Ex. L.) J & L responded that it was “not in a position to make a payment at [the] time,” and it requested that Viracon continue to carry the outstanding balance until the expected financing was completed, which was supposedly “close” to occurring. (Id.) But “close” turned out to be an inaccurate description — more than a year passed without payment by J & L. During that time, Viracon e-mailed or telephoned J & L from time to time, reminding it of its outstanding balance. (Id. Ex. M.) Ultimately, financing for the Concord Project was never completed, and J & L failed to pay Viracon for the IGUs. (Cappelli Decl. ¶ 8.)

In 2011, “[s]everal parties, including Viracon, filed claims in New York state court” against the contractors involved in the Concord Project, including J & L, to recover damages “for materials that they [had] provided” on the project. (Id. ¶ 10.) Of particular relevance here, Viracon asserted claims against J & L due to its nonpayment for the IGUs. But in April 2012, rather than continuing to litigate in New York, Viracon voluntarily dismissed its claims. (Compl. ¶ 6; Carey Decl. ¶ 2.) It then filed the instant action in the Steele County, Minnesota District Court, asserting a host of contract and tort claims against J & L. J & L removed the action to this Court on diversity grounds and now moves to dismiss, inter alia, under Federal Rule of Civil Procedure 12(b)(2) for lack of personal jurisdiction.6 The Motion has been fully briefed and is now ripe for disposition.

[882]*882STANDARD OF REVIEW

To survive a motion to dismiss under Rule 12(b)(2), a plaintiff must make a prima facie showing that personal jurisdiction exists. E.g., Johnson v. Woodcock, 444 F.3d 953, 955 (8th Cir.2006); Lakin v. Prudential Sec., Inc., 348 F.3d 704, 706 n. 3 (8th Cir.2003). It can do so by proffering sufficient evidence “to support a reasonable inference that the defendant ] can be subjected to jurisdiction within the [forum] state.” K-V Pharm. Co. v. J. Uriach & CIA, S.A., 648 F.3d 588, 591-92 (8th Cir.2011) (internal quotation marks and citation omitted). The plaintiffs “showing must be tested, not by the pleadings alone, but by the affidavits and exhibits supporting or opposing the motion.” Id. at 592 (internal quotation marks and citations omitted). And where the Court has not held an evidentiary hearing (which no party has requested here), the evidence must be viewed in the light most favorable to the plaintiff. E.g., Pangaea, Inc. v. Flying Burrito LLC, 647 F.3d 741, 745 (8th Cir.2011); Digi-Tel Holdings, Inc. v. Proteq Telecomms.

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929 F. Supp. 2d 878, 2013 WL 885465, 2013 U.S. Dist. LEXIS 32271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/viracon-inc-v-j-l-curtain-wall-llc-mnd-2013.