Yates Industries South, LLC v. Edison Chouest Offshore, Inc.

CourtDistrict Court, E.D. Michigan
DecidedSeptember 25, 2025
Docket4:25-cv-10339
StatusUnknown

This text of Yates Industries South, LLC v. Edison Chouest Offshore, Inc. (Yates Industries South, LLC v. Edison Chouest Offshore, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yates Industries South, LLC v. Edison Chouest Offshore, Inc., (E.D. Mich. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

YATES INDUSTRIES SOUTH, LLC, Case No. 25-10339

Plaintiff, F. Kay Behm v. United States District Judge

EDISON CHOUEST OFFSHORE, INC, et al.,

Defendants. ___________________________ /

OPINION AND ORDER ON DEFENDANTS’ MOTION TO DISMISS (ECF No. 25)

I. PROCEDURAL HISTORY Plaintiff, Yates Industries South, LLC (Yates South) filed this breach of contract complaint against Defendants on February 5, 2025. (ECF No. 1). Plaintiff filed an amended complaint on May 20, 2025 (FAC). (ECF No. 15). On June 18, 2025, Defendants filed a motion to dismiss the FAC based on lack of personal jurisdiction. (ECF No. 25). This matter is fully briefed. (ECF Nos. 28, 30). The court held a hearing on September 24, 2025. For the reasons set forth below, the motion to dismiss based on lack of personal jurisdiction is GRANTED. II. FACTUAL BACKGROUND

Yates South is apparently a Michigan corporation with its headquarters located in Michigan; however its relevant facility is located in Mobile, Alabama. Further, its parent company, Yates Industrial, is located in Michigan. Yates South

has sued Edison Chouest Offshore, Inc., Edison Chouest Offshore LLC, Offshore Services Vessels, LLC, Island Ventures 6, LLC, LaShip, LLC, and G-Boats, Inc. based on allegedly unpaid invoices. Those invoices were billed to G-Boats/LaShip at

their Louisiana address. (ECF No. 15, Exs. A-C, PageID.163-170). The corresponding purchase orders were issued by Island Ventures 6, LLC on “Edison Chouest Offshore” letterhead and sent to Yates Industrial in Michigan. (ECF No.

15, PageID.183-185). According to Defendants, “Edison Chouest Offshore” (ECO) is not an entity,

but is instead a tradename associated with several separate entities who have an organizational affiliation with various business purposes. (ECF No. 25-2, Declaration of Brian J. Engeron, ¶¶ 5-6). Offshore Service Vessels, LLC (OSV) is an

ECO-affiliated company. Id. at ¶ 6. OSV is a Louisiana LLC with its sole place of business located in Cut Off, Louisiana. Id. at ¶ 3. OSV is primarily engaged in the ownership and commercial operation of certain offshore vessels. Id. at ¶ 7.

Edison Chouest Offshore, LLC, is a prior name of OSV, and is not a separately existing entity. Id. at ¶ 4. Edison Chouest Offshore, Inc. has not existed as a

corporate entity since 1996. It was previously incorporated and had its principal place of business in Cut Off, Louisiana. Id. at ¶ 5. Island Ventures 6, LLC (Island Ventures) is a separate ECO-affiliated company. Id. at ¶ 10. Island Ventures is a

Louisiana limited liability company with its sole place of business in Cut Off, Louisiana. Id. Island Ventures owns and operates an offshore vessel known as the “M/V Island Performer” (the Vessel). Id. LaShip, LLC (LaShip) is a separate

ECO-affiliated company. Id. at ¶ 11. LaShip is a Louisiana limited liability company with its registered address in Cut Off, Louisiana and shipyard operations in Houma, Louisiana. Id. LaShip’s principal business concerns operating a

shipyard. Id. G-Boats, Inc. (G-Boats) is another separate ECO-affiliated company, incorporated and having its principal place of business in Guyana. Id. at ¶ 12. G-

Boat’s business involves vessel operations in Guyana. Id. Defendants maintain that neither LaShip nor G-Boats owns or operates the Vessel nor contracted with Plaintiff regarding the relevant repair work to the Vessel. Id. at ¶¶ 11-12.

According to Defendants, neither Island Ventures nor the other Defendants have offices, employees, or agents in Michigan. Id. at ¶ 19. None of the Defendants own bank accounts, real estate, or other property in Michigan. Id. at ¶ 20. And none carry out a continuous and systematic part of their general business in Michigan. Id. at ¶ 21.

Plaintiff performed certain repairs to components of a crane system on the Vessel pursuant to purchase orders submitted by Island Ventures in May 2024.

(ECF No. 15, Ex. F to FAC, PageID.183-185). According to Defendants, none of the other Defendants contracted with Plaintiff for the repair work. Id.; see also ECF No. 25-2, ¶¶ 9, 11-12. Defendants maintain that no ECO-affiliated company

personnel dealt with any personnel of Plaintiff in Michigan in connection with the request for the repairs. (ECF No. 25-2, ¶ 13). Rather, they contend that Island Ventures’ representatives communicated with Chris Buss, a Regional Sales

Manager for Plaintiff who is located in the Mobile, Alabama metropolitan area and who has a phone number with an Alabama area code, and personnel at Yates’

Decatur, Alabama location, including Deana Harris and Doug Helfrich, in connection with the request for the repairs. Id. ¶ 14. Island Ventures submitted purchase orders to Plaintiff for this repair work. (ECF No. 15, Ex. F to FAC,

PageID.183-185). According to Defendants, those purchase orders contain the “Edison Chouest Offshore” tradename logo, but were issued by Island Ventures, and also list the Vessel under the “ship to” address and Island Ventures under the “bill to” address. Id. None of the other Defendants are referenced in the purchase orders. Id.

Although invoices and sales orders that Plaintiff attach to the FAC have references to the “Edison Chouest Offshore” tradename, they all reference the

Vessel owned by Island Ventures. (ECF No. 15, Exs. A-C & F to FAC, PageID.163- 170, 183-185). Defendants also point out that these invoices and sales orders all originate from Plaintiff’s Decatur, Alabama location—not Michigan. Id. According

to Plaintiff, while the first invoice was paid, the remaining three invoices remain outstanding, necessitating this lawsuit. Island Ventures transported the items that Plaintiff worked on to and from

Plaintiff’s Decatur, Alabama location for servicing. (ECF No. 25-2, ¶ 15). The items did not originate from Michigan, were not serviced in Michigan, and were

not delivered or installed in Michigan. Id. at ¶¶ 15-16. The items originated in Tampa, Florida, where the Vessel was located at the time the items were removed for servicing, and were reinstalled on the Vessel in Port Fourchon,

Louisiana once the work was complete. Id. at ¶ 16. None of the contemplated work was performed in Michigan. Id. at ¶ 17. No personnel of any of the ECO- affiliated companies travelled to Michigan in connection with the relevant

transaction. Id. at ¶ 18. III. ANALYSIS

A. Standard of Review Fed. R. Civ. P. 12(b)(2) allows a defendant to move for dismissal of a case for lack of personal jurisdiction. When considering a motion under Rule 12(b)(2),

the court may: (1) decide the motion upon the affidavits alone; (2) permit discovery in aid of deciding the motion; or (3) conduct an evidentiary hearing to resolve any apparent factual questions.” Theunissen v. Matthews, 935 F.2d 1454,

1458 (6th Cir. 1991). Regardless of which method the court chooses, the plaintiff bears the burden of establishing that the court can exercise personal jurisdiction over the defendant. Neogen Corp. v. Neo Gen Screening, Inc., 282 F.3d 883, 887

(6th Cir. 2002). The weight of this burden, however, depends on whether the court decides to rule on the parties’ written submissions alone or to hear

evidence. Id. Where, as here, the court decides a motion without an evidentiary hearing, the plaintiff must make only a prima facie showing that personal jurisdiction exists in order to defeat dismissal.

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Yates Industries South, LLC v. Edison Chouest Offshore, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/yates-industries-south-llc-v-edison-chouest-offshore-inc-mied-2025.