EMANUEL v. CARDIS ENTERPRISES INTERNATIONAL (USA), INC.
2:15-cv-07843
D.N.J.Aug 5, 2016Background
- Plaintiffs Josh Emanuel (New Jersey resident) and JECO Technologies, Inc. (Florida LLC) sued Cardis Enterprises International (USA), Inc. (Delaware corporation) in D.N.J. alleging breach of a June 25, 2013 consulting agreement, unjust enrichment, and conversion for unpaid fees of ~$43,000.
- The Agreement paid JECO $30,000/month and contemplated Emanuel performing services; it contained §5.9: "This Agreement...shall be construed and governed in accordance with the law of the State of Delaware and the courts of Delaware shall have exclusive jurisdiction."
- Cardis moved to dismiss for lack of personal jurisdiction under Rule 12(b)(2) or, alternatively, to transfer venue to the District of Delaware under 28 U.S.C. §1404(a).
- Cardis submitted a CEO declaration denying systematic contacts with New Jersey (no NJ clients, revenues, bank accounts, certificate to do business, or NJ-hosted website).
- Plaintiffs disputed some factual points (where negotiations occurred, whether Cardis operated through Emanuel in NJ) but provided no affidavits resolving the jurisdictional facts.
- The Court found the personal-jurisdiction record unclear and instead enforced the Agreement’s exclusive Delaware-jurisdiction clause, transferring the case to the District of Delaware.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether D.N.J. has personal jurisdiction over Cardis | JECO/Emanuel contend Cardis contracted with a NJ-based consultant and solicited clients nationwide (including NJ), supporting jurisdiction | Cardis says it is Delaware-incorporated with principal place of business in NY and lacks continuous/systematic contacts with NJ beyond dealings with JECO/Emanuel | Court found jurisdictional facts murky and did not decide jurisdiction; declined to adjudicate jurisdiction given transfer clause |
| Whether the forum-selection clause §5.9 (Delaware courts have exclusive jurisdiction) is enforceable, permitting transfer under §1404(a) | Plaintiffs argued the clause is boilerplate/choice-of-law titled and not explicit forum-selection, and transfer would be inconvenient and unjust | Cardis argued clause is clear and mandatory; forum clause should be enforced and case transferred to Delaware | Court enforced the exclusive Delaware-jurisdiction clause and transferred the action to the District of Delaware under §1404(a) |
Key Cases Cited
- Daimler AG v. Bauman, 571 U.S. 117 (general-jurisdiction standard; corporation "at home")
- Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915 (distinguishing general and specific jurisdiction)
- Int’l Shoe Co. v. Washington, 326 U.S. 310 (minimum contacts/due process framework)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (purposeful availment/specific jurisdiction analysis)
- Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408 (specific jurisdiction principles)
- Atlantic Marine Construction Co. v. U.S. District Court, 571 U.S. 49 (forum-selection clauses ordinarily enforced; transfer under §1404(a))
- M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (forum-selection clause enforceability principles)
- Jumara v. State Farm Ins. Co., 55 F.3d 873 (private and public factors for §1404(a) transfer analysis)
