Hribar Transport LLC v. Slegers
2:20-cv-01255
E.D. Wis.Sep 29, 2021Background
- Hribar Transport (Wisconsin LLC) sued former owner/employee Michael Slegers (Florida resident) for breaching a 2014 employment agreement with a two-year post‑employment non‑compete after Slegers resigned August 15, 2019.
- Plaintiff alleges Slegers performed substantial work for Hribar in Wisconsin (supervisors in Caledonia; at least a dozen business trips with overnight stays 2017–2019; service orders, calls, emails with Wisconsin customers) and then solicited those customers for his new company and a competitor, causing >$1M in lost business.
- Slegers removed the state action to federal court and moved to dismiss for lack of personal jurisdiction under Fed. R. Civ. P. 12(b)(2); alternatively he sought transfer to the Northern District of Indiana under 28 U.S.C. §1404(a).
- The court analyzed Wisconsin’s long‑arm statute and federal due process for specific jurisdiction, considering the nature and relation of Slegers’ Wisconsin contacts to the non‑compete dispute.
- The court found jurisdiction under Wis. Stat. §801.05(5)(b) (suit arises out of services actually performed in Wisconsin) and concluded exercising jurisdiction comported with due process; it denied the alternative motion to transfer venue.
Issues
| Issue | Plaintiff's Argument (Hribar) | Defendant's Argument (Slegers) | Held |
|---|---|---|---|
| Personal jurisdiction—long‑arm statute | §801.05(5)(b) applies because action arises from services Slegers performed in Wisconsin for Hribar (meetings, service orders, customer contacts). | Wisconsin statute subsections (including §801.05(4)(a) and §801.05(5)(a)) do not apply; no promise to perform services in Wisconsin and solicitation/service activities within Wisconsin do not accompany the out‑of‑state acts causing injury. | Court: Jurisdiction under §801.05(5)(b) satisfied; statute does not require that the alleged injury itself arose from Wisconsin‑performed services. |
| Personal jurisdiction—due process / minimum contacts | Slegers’ repeated trips, work for Wisconsin supervisors, customer contacts, and post‑employment solicitation create fair warning and suit‑related contacts. | Contacts were prior to the alleged breach and occurred while employed; post‑employment breach occurred outside Wisconsin; finding jurisdiction would expose every multi‑state employee to suit in multiple fora. | Court: Due process satisfied — contacts were suit‑related and created substantial connection to Wisconsin; dismissal denied. |
| Venue under §1391(b) | Eastern District of Wisconsin proper because substantial part of events occurred there (Hribar HQ, meetings, customers, supervisors). | Slegers lives outside Wisconsin; alleged solicitations occurred in Indiana/Michigan/Florida; choice‑of‑law is Indiana. | Court: Venue proper in Eastern District of Wisconsin. |
| Transfer under §1404(a) | (Implicit) Hribar’s home forum is appropriate; transferring is unnecessary. | Northern District of Indiana is more appropriate for convenience and likely familiarity with Indiana law. | Court: Denied transfer—only party familiarity with Indiana law favored transfer; other §1404 factors did not. |
Key Cases Cited
- International Shoe Co. v. Washington, 326 U.S. 310 (established minimum contacts due process standard)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (purposeful availment/direction and fair warning analysis)
- Walden v. Fiore, 571 U.S. 277 (suit‑related conduct must create substantial connection to forum)
- Goodyear Dunlop Tires Operations, S.C. v. Brown, 564 U.S. 915 (general jurisdiction principles)
- Bristol‑Myers Squibb Co. v. Superior Court of Cal., 137 S. Ct. 1773 (specific jurisdiction requires affiliation between forum and underlying controversy)
- Purdue Research Found. v. Sanofi‑Synthelabo, S.A., 338 F.3d 773 (contracting alone insufficient; assess totality of contacts)
- RAR, Inc. v. Turner Diesel, 107 F.3d 1272 (cannot aggregate unrelated contacts to establish jurisdiction)
- Research Automation, Inc. v. Schrader‑Bridgeport Int'l, Inc., 626 F.3d 973 (§1404(a) transfer factors; flexible, case‑by‑case analysis)
- Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22 (§1404(a) permits discretionary transfer balancing convenience and justice)
- Felland v. Clifton, 682 F.3d 665 (Wisconsin long‑arm construed to reach full extent of due process)
