Legacy Hemp LLC v. Terramax Holdings Corporation
3:20-cv-00303
W.D. Wis.May 27, 2020Background
- Plaintiff Legacy Hemp LLC (Anderson) entered a 2016 distributor/license agreement with defendant Terramax Holdings Corp., a Saskatchewan, Canada seed company, to distribute X-59 hemp seed in specified U.S. states; the contract identified Legacy’s address as Kentucky and did not list Wisconsin among the specified states.
- Anderson conducted negotiations and regular communications from his home in Prescott, Wisconsin; Legacy registered to do business in Wisconsin in April 2018 and later informed Terramax of a Prescott address by email.
- Legacy purchased large quantities of X-59 (over 322,890 lbs.) and claims most 2018 sales were to Wisconsin farmers; Legacy arranged pickup of seed in Saskatchewan and received royalty checks in Wisconsin.
- Terramax is not registered to do business in Wisconsin, denies marketing, shipping, or directing sales into Wisconsin, and says it never authorized or invoiced Legacy for in-state services.
- Procedural posture: Terramax moved to dismiss for lack of personal jurisdiction; Legacy sought a preliminary injunction. The court granted Terramax’s motion to dismiss for lack of specific jurisdiction and denied the injunction as moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Wisconsin courts have specific personal jurisdiction over Terramax | Terramax contracted with and repeatedly communicated with Legacy (whose principal acted from Wisconsin), built a market and sold seed in Wisconsin, and thus directed activities at Wisconsin | Terramax’s contacts were with Legacy (a separate entity), contract listed Kentucky and other states not Wisconsin, Legacy picked up seed in Canada, and Terramax neither marketed nor shipped to Wisconsin | No: Legacy failed to make a prima facie showing of purposeful availment or minimum contacts with Wisconsin; dismissal for lack of personal jurisdiction granted |
| Plaintiff’s motion for preliminary injunction | Legacy sought to enjoin termination of distributor rights pending litigation | Terramax argued lack of jurisdiction and opposed relief | Denied as moot after dismissal for lack of personal jurisdiction |
Key Cases Cited
- Purdue Research Foundation v. Sanofi–Synthelabo, S.A., 338 F.3d 773 (7th Cir. 2003) (prima facie standard for jurisdictional facts)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (1985) (purposeful availment and foreseeability analysis)
- International Shoe Co. v. Washington, 326 U.S. 310 (1945) (minimum contacts and fair play standard)
- Walden v. Fiore, 571 U.S. 277 (2014) (contacts must be with the forum state itself)
- Felland v. Clifton, 682 F.3d 665 (7th Cir. 2012) (merger of state long-arm and due process analysis)
- Lakeside Bridge & Steel Co. v. Mountain State Construction Co., 597 F.2d 596 (7th Cir. 1979) (no jurisdiction where contacts are solely plaintiff’s unilateral activity)
- Northern Grain Mktg., LLC v. Greving, 743 F.3d 487 (7th Cir. 2014) (contracting alone insufficient for jurisdiction)
- Philos Techs., Inc. v. Philos & D, Inc., 802 F.3d 905 (7th Cir. 2015) (foreign party’s contract with in-state party alone does not establish jurisdiction)
