Vista Food Exchange, Inc. v. Champion Foodservice, LLC

124 F. Supp. 3d 301, 2015 U.S. Dist. LEXIS 110512, 2015 WL 5000863
CourtDistrict Court, S.D. New York
DecidedAugust 18, 2015
DocketNo. 14 Civ. 804
StatusPublished
Cited by22 cases

This text of 124 F. Supp. 3d 301 (Vista Food Exchange, Inc. v. Champion Foodservice, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vista Food Exchange, Inc. v. Champion Foodservice, LLC, 124 F. Supp. 3d 301, 2015 U.S. Dist. LEXIS 110512, 2015 WL 5000863 (S.D.N.Y. 2015).

Opinion

[305]*305OPINION

SWEET, District Judge.

Defendants BC & G Weithman Construction Co., Inc. (“BC & G”) Champion Foodservice, LLC (“Champion”), Tyrone Weithman (“Weithman”) and Ashley Simpson (“Simpson”) (collectively, the “Defendants”) have moved pursuant to Rules 12(b)(2) and 12(b)(6) of the Federal Rules of Civil Procedure to dismiss the Amended Complaint of plaintiff Vista Food Exchange, Inc. (“Vista” or the “Plaintiff’) alleging (1) breach of contract against BC & G, (2) breach of contract against Champion, (3) breach of guaranty against Weithman, (4) tortious interference with contract against Champion, (5) money had and received against Champion and BC & G, (6) unjust enrichment against BC & G, Champion and Weithman, and (7) fraud against all the Defendants. Vista has also moved for jurisdictional discovery. Based on the facts and conclusions set forth below, the Defendants’ motion is granted, the Amended Complaint is dismissed with prejudice and costs, and the Plaintiffs motion for jurisdictional discovery is denied.

Prior Proceedings

This ease is an outgrowth of Champion Foodservice, LLC v. Vista Food Exchange, Inc. et al., No. 13 Civ. 1195, a civil litigation before the Honorable Sara Lioi of the United States District Court for the Northern District of Ohio (the “Ohio Action”), in which Champion brought claims against Vista and two of its employees for misappropriation of Champion’s trade secrets, conversion, fraud, conspiracy, breach of fiduciary duty, and spoliation of evidence. Champion alleged that its former President, Matthew Gibson, worked on behalf of Vista while Champion employed him, that Gibson unlawfully took Champion’s trade secrets and business information with him to Vista, and that Vista and Gibson used Champion’s trade secrets and confidential business information to wrongfully compete against Champion in Ohio and secure a contract from one of Champion’s best customers. The docket of the Ohio Action is nearing its 500th entry, and as the parties remain in discovery, the case shows no signs of slowing. In addition, Gibson and Simpson are engaged in custody litigation in Michigan.

The instant action began on January 10, 2014, when Vista filed its original Complaint in the Supreme Court of the State of New York against Defendants Champion, BC & G, Weithman, Simpson, and Atkinson. Defendants removed the case to this Court on February 7, 2014. Vista responded with a motion to remand and Defendants moved for dismissal based on the lack of personal jurisdiction and failure to state a claim.

By an August 4, 2014 Opinion (the “August Opinion”), Vista’s motion to remand was denied, and the Defendants’ motion to dismiss was granted, Vista Food Exchange, Inc. v. Champion Foodservice, L.L.C., 124 F.Supp.3d 301, No. 14 Civ. 804, 2015 WL 5000863 (S.D.N.Y. Aug. 5, 2014). Judgment was thereafter issued.

By an opinion on November 3, 2014 (the “November Opinion”), Vista’s request to alter or amend the judgment was denied but Vista was granted leave to amend its Complaint. The Court stated that “defendants’ opposition constitutes fair warning to the Plaintiff that could give rise to sanctions should grounds for the Defendants’ opposition be established.” Vista Food Exchange, Inc. v. Champion Foodservice, L.L.C., No. 14 Civ. 804, 2014 WL 5557910 (S.D.N.Y. Nov. 3, 2014).

Vista filed its Amended Complaint on December 5, 2014 (Dkt. No. 29), and Defendants responded with the instant motion to dismiss under Rules 12(b)(2) and 12(b)(6). (Dkt. No. 31.) Vista moved for a [306]*306Motion for Jurisdictional Discovery and for Continuance of Motion to Dismiss (Dkt. No. 35, the “Discovery Motion”).

The motions were heard and marked fully submitted on February 11,2015.

Background

The facts underlying the dispute at issue in this case were laid out in detail in the August' Opinion, Vista Food, 2014 WL 3857053 at *1-3, familiarity with which is assumed. As to the jurisdictional questions at issue here, the. Complaint and exhibits indicate the following:

BC & G and Champion are both organized in Ohio and have their principal place of business there. (AC 114, 6; Affidavit of Tyrone Weithman (the “Weithman Aff”), Dkt. No. 31-5, ¶¶ 5, 6.) Although Vista is based in New York (AC ¶3), BC & G has never bought or sold any products or services to Vista or any other New York-based company. (Weithman Aff. ¶ 30-32.) BC & G’s only contact with Vista or with New York is the Credit Application, in which it applied for an account with Vista where it could purchase wholesale food (AC ¶ 16; Weithman Aff. ¶ 33), several orders of food products from Vista (AC ¶ 22; Orders, Dkt. Nos. 24-5 & 24-8), and an alleged oral contract- with Vista and Champion where Vista agreed to sell food products to BC & G at a discounted price in exchange for BC & G’s agreement to purchase food from Vista exclusively. (AC ¶ 19.) The Credit Agreement included a choice of law provision specifying that New York law would apply and a fórum provision specifying that any litigation related to the agreement would take place in Manhattan." (AC ¶ 17, Credit Agreement, Dkt. No. 31-10.)

As to Champion, since February 2012, the company has had only one supplier based in New York other than Vista. Champion purchased two online orders from Worldlabel.com in Peekskill, New York, in August 2012. (Affidavit of Linda Atkinson (the “Atkinson Aff”), Dkt. No. 31-5, ¶ 13.) Champion has never had any customer in New York other than Vista. (Weithman Aff. ¶ 26; Atkinson Aff. ¶ 14; Affidavit of Ashley Simpson (the “Simpson Aff.”) Dkt. No. 31-9, ¶ 15.) Champion never shipped any products to New York or provided any services to any entity based in New York. Champion’s only contact with Vista in New York related to sending invoices there. (Weithman Aff. ¶¶ 27-29; Invoices, Dkt. No. 29-10.) .

Defendant Tyrone Weithman, the President of both Champion and BC & G, is a citizen and resident of Ohio. He owns no property in New York and has never visited the state. (Weithman Aff. ¶¶. 3,19, 20.) While working for Champion, Weithman spoke on the telephone with one Vista employee in New York on one occasion. He may have received one e-mail from a Vista employee in New York on one occasion, although he has never sent any emails to any Vista employee in New York. (Id. ¶¶ 21,22.) Weithman executed a Con-, tinuing Guaranty on June 20, 2012, personally guaranteeing all debts to Vista owed by. BC & G and Champion. (AC. ¶ 43; Weithman Aff. ¶ 34.) That document also contains New York choice of law and forum provisions. (Continuing Guaranty, Dkt. No. 29-8.) .

Defendant Ashley Simpson is a citizen and resident of Michigan. She owns no property in New York and has never traveled to New York for business. . (Simpson Aff. ¶¶ 3, 12-14.) She did visit a friend in New York in 2009, but the trip had no business purpose. (See id. ¶ 14.) While working for Champion, Simpson sent invoices for payment, either via e-mail or via United States mail, to Vista employees in California. (Id. ¶.)

[307]*307Applicable Standard

As the plaintiff, Vista bears the burden of demonstrating personal jurisdiction over each defendant. Troma Entm’t, Inc. v. Centennial Pictures Inc., 729 F.3d 215, 217 (2d Cir.2013); Vista Food Exchange, Inc. v.

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124 F. Supp. 3d 301, 2015 U.S. Dist. LEXIS 110512, 2015 WL 5000863, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vista-food-exchange-inc-v-champion-foodservice-llc-nysd-2015.