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Power Paragon, Inc. v. Precision Technology USA, Inc.

United States District Court for the Eastern District of Virginia
605 F.Supp. 2d 722 (2008)


L-3, a parent company of Power Paragon, Inc. (Power Paragon) (plaintiff) entered an agreement with Precision Technology USA, Inc. (Precision) (defendant), under which Power Paragon would deliver a motor controller to Precision and install it on a ship. Initial negotiations began with an inquiry from Precision around October 5, 2005. L-3 made a formal proposal on December 20, 2005. The terms of the proposal stated that the offer would be valid for 45 days. The proposal also required that all disputes arising out of the contract be settled by arbitration, and conditioned acceptance of the proposal upon assent to its terms. Additional discussions regarding the contract continued. Precision submitted a Purchase Order on March 10, 2006. The Purchase Order stated that all disputes would be heard in the appropriate state or federal court in Roanoke, Virginia. Around September 11, 2006, Power Paragon delivered the motor controller. Precision failed to make payments as required. Power Paragon brought suit alleging breach of contract and unjust enrichment. Precision brought a motion to dismiss for improper venue.

Rule of Law


Holding and Reasoning (Jackson, J.)

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