World Energy Alternatives, LLC v. Settlemyre Industries, Inc.

671 F. Supp. 2d 215, 2009 U.S. Dist. LEXIS 112524, 2009 WL 4363213
CourtDistrict Court, D. Massachusetts
DecidedNovember 16, 2009
DocketCivil Action 09-10480-NMG
StatusPublished
Cited by4 cases

This text of 671 F. Supp. 2d 215 (World Energy Alternatives, LLC v. Settlemyre Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
World Energy Alternatives, LLC v. Settlemyre Industries, Inc., 671 F. Supp. 2d 215, 2009 U.S. Dist. LEXIS 112524, 2009 WL 4363213 (D. Mass. 2009).

Opinion

GORTON, District Judge.

This case arises from a contract dispute between Plaintiff World Energy Alternatives, LLC (‘World Energy”), a Delaware corporation with its principal place of business in Massachusetts, and Defendant Settlemyre Industries, Inc. (“Settlemyre”), an Ohio corporation. Currently before the Court is Settlemyre’s motion to transfer the action to the Southern District of Ohio to be consolidated with a case currently pending before that court.

I. Background

On or about January 21, 2008, Settlemyre and World Energy entered into a contract whereby Settlemyre agreed to provide World Energy with 630,000 gallons of biodiesel fuel at a cost of $3.45 per gallon to be shipped between February 1 and March 31, 2008 (“the World Energy Contract”).

On the same day it contracted with World Energy, Settlemyre entered into an independent contract with E-Biofuels, LLC (“E-Biofuels”) for the purchase of 630,000 gallons of biodiesel fuel at $3.28 per gallon (“the E-Biofuels Contract”). The E-Biofuels Contract included a list of quality requirements and specifications that the product had to satisfy before Settlemyre would accept delivery. Although it appears that Settlemyre simply intended to act as a middleman between E-Biofuels and World Energy, Settlemyre’s obligations to World Energy were not contingent upon E-Biofuels’ performance.

In early February, 2008, E-Biofuels notified Settlemyre that it would be unable to deliver fuel meeting the required specifications. On March 12, 2008, after E-Biofuels’ default, Settlemyre sued it for breach of contract in the United States District Court for the Southern District of Ohio.

World Energy alleges that Settlemyre supplied it with only 62,024 gallons of biodiesel fuel during the months of February and March, 2008, and 116,009 gallons thereafter. As a result, World Energy was forced to cover its contract by the purchase of fuel from other sources, causing it to incur $807,740 of additional expenses. Nonetheless, it appears that from March to June, 2008, World Energy con *217 tinued to accept deliveries of fuel from Settlemyre beyond the contract period.

In December, 2008, however, World Energy informed Settlemyre that it would no longer accept delivery under the World Energy Contract and, in January, 2009, sent Settlemyre a letter demanding reimbursement for the cost of its cover. In response, on February 4, 2009, Settlemyre filed an amended complaint in its pending action in the Southern District of Ohio, adding World Energy as a defendant and seeking a declaratory judgment setting forth World Energy’s rights and remedies under the E-Biofuels Contract.

One month later, on March 5, 2009, World Energy filed the instant action against Settlemyre in the Massachusetts Superior Court Department for Suffolk County, alleging: 1) breach of contract (Count I), 2) breach of the implied covenant of good faith and fair dealing (Count II), 3) promissory estoppel (Count III), 4) negligent misrepresentation (Count IV) and 5) violation of the Massachusetts Consumer Protection Act, M.G.L. c. 93A (Count V). Settlemyre removed the action to this Court on March 30, 2009, and now moves to transfer the action to the United States District Court for the Southern District of Ohio and consolidate it with the case currently pending in that court.

II. Analysis

A. Legal Standard

Section 1404(a) of Title 28 of the United States Code states

For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.

28 U.S.C. § 1404(a). Accordingly, a court must determine first whether the case “might have been brought” in the suggested transferee district and, if so, whether convenience and the interest of justice favor transfer. In making that determination, the Court is mindful that the statute’s purpose is

to prevent the waste of time, energy and money and to protect litigants, witnesses and the public against unnecessary inconvenience and expense.

Van Dusen v. Barrack, 376 U.S. 612, 616, 84 S.Ct. 805, 11 L.Ed.2d 945 (1964) (citations omitted). Although the decision to transfer a case under § 1404 lies solely in the discretion of the trial court, there is a strong presumption in favor of the plaintiffs choice of forum and the burden of proof rests with the party seeking transfer. Holmes Group, Inc. v. Hamilton Beach/Proctor Silex, Inc., 249 F.Supp.2d 12, 16 (D.Mass.2002)

B. Application

1. The Action Could Have Been Brought In Ohio

In a civil action founded on diversity of citizenship, jurisdiction is proper in any judicial district where a defendant resides. 28 U.S.C. § 1391(a)(1). Settlemyre is an Ohio corporation with its principal place of business in Clinton County, Ohio. Accordingly, the action could have been brought in the Southern District of Ohio.

2. Whether Transfer is Warranted

Transfer of venue to the Southern District of Ohio is appropriate if it would serve the interests of justice. In making that determination, the Court must weigh several factors, including the order in which the Court obtained jurisdiction, the availability of documents, the convenience of parties and witnesses and the possibility of consolidation. Coady v. Ashcraft, 223 F.3d 1, 11 (1st Cir.2000).

*218 a. Applicability of the First-Filed Rule

Under the “first-filed rule,”

[w]here identical actions are proceeding concurrently in two federal courts, the first filed action is generally preferred, even if it is a request for a declaratory judgment.

Holmes Group, 249 F.Supp.2d at 15 (emphasis added); see also Cianbro Corp. v. Curran-Lavoie, 814 F.2d 7, 11 (1st Cir.1987). Settlemyre contends that the “first-filed rule” weighs in favor of transfer because Settlemyre filed a declaratory judgment against World Energy in Ohio one month before World Energy brought claims against Settlemyre in Massachusetts.

The Court disagrees. Because the “first-filed rule” is only implicated when two competing suits are “identical,” it is not applicable in the instant situation. In the Ohio action, Settlemyre seeks a declaration “setting forth what, if any, remedies or damages Defendant World Energy [is] entitled to” in the matter “arising out of’ Settlemyre’s contract with E-Biofuels.

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Bluebook (online)
671 F. Supp. 2d 215, 2009 U.S. Dist. LEXIS 112524, 2009 WL 4363213, Counsel Stack Legal Research, https://law.counselstack.com/opinion/world-energy-alternatives-llc-v-settlemyre-industries-inc-mad-2009.