Wilderness USA, Inc. v. DeAngelo Brothers LLC

265 F. Supp. 3d 301 (2017)

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Wilderness USA, Inc. v. DeAngelo Brothers LLC

United States District Court for the Western District of New York
265 F. Supp. 3d 301 (2017)

Facts

Wilderness USA, Inc. (Wilderness) (plaintiff), a New York corporation with its principal place of business in New York, had a contract with a general contractor, Mercier, Inc.. Under the contract, Mercier obtained its own contract with the Georgia Department of Transportation (GDOT) to clear vegetation overgrowth from the sides of highways, and Mercier agreed to subcontract with Wilderness to perform the work for the GDOT contract. Mercier was bought by DeAngelo Brothers LLC (DeAngelo) (defendant), a Pennsylvania limited-liability company with a Pennsylvania principal place of business. DeAngelo agreed to maintain Mercier’s GDOT subcontract with Wilderness. A year and a half into their relationship, however, DeAngelo terminated the subcontract with Wilderness, citing material breaches by Wilderness. Alleging that DeAngelo had manufactured the breaches so that DeAngelo could perform the work itself, Wilderness filed a diversity suit against DeAngelo in federal court in New York. DeAngelo moved to dismiss for lack of personal jurisdiction, among other reasons. Wilderness argued that the court had general jurisdiction over DeAngelo because DeAngelo had registered as a foreign corporation in New York and appointed the New York secretary of state as its agent for service of process, and New York courts had long held that this was sufficient for a court to exercise general jurisdiction over a defendant. DeAngelo argued that a recent United States Supreme Court had invalidated these cases.

Rule of Law

Issue

Holding and Reasoning (Wolford, J.)

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