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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 (E.D. Va. 2008)


Facts

Power Paragon, Inc. (Power) (plaintiff) is an engineering firm incorporated in Delaware with its principal place of business in Anaheim, California. Precision Technology USA, Inc. (Precision) (defendant) is a manufacturer and supplier incorporated in Virginia with its principal place of business in Roanoke, Virginia. L-3, Power’s parent company, in Anaheim negotiated a contract with Precision in Roanoke to deliver a motor controller to for installation on a navy ship in Newport News, Virginia and provide ongoing support services there. Precision was to pay $464,962 for the controller and $78,908 for support. The contract’s choice of law provision indicated that Virginia law controlled and its forum selection provision stated that venue would lie in Roanoke. The controller was shipped to Michigan and New York for functional testing before being shipped to Newport News for installation, where it remains. Power sued Precision for breach of contract in the United States District Court for the Eastern District of Virginia stemming from Precision’s failure to pay $260,000 of the purchase price or any of the field support price. Precision moved to dismiss for improper venue.

Rule of Law

Issue

Holding and Reasoning (Jackson, J.)

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