Ragner Tech. Corp. v. Berardi
287 F. Supp. 3d 541
D.N.J.2018Background
- Plaintiffs (Ragner Technology and Tristar) allege defendants (National Express; Michael and Cheryl Berardi; Blue Gentian; Berardi Productions) misappropriated patented "Microhose" technology disclosed at an August 23, 2011 meeting and later obtained related patents and commercial rights.
- Mr. Berardi filed patent applications and is managing member of Blue Gentian; Blue Gentian assigned exclusive marketing rights to National Express. Berardi Productions produced ads for National Express's Xhose product.
- Plaintiffs sued in S.D. Fla.; the case was transferred to D.N.J. because related patent cases were pending there. The transfer order did not expressly decide personal jurisdiction.
- Plaintiffs amended to plead personal jurisdiction; claims: conspiracy/attempt to monopolize, common law fraud, breach of contract. Defendants moved to dismiss raising lack of personal jurisdiction (among other defenses).
- The court found (a) it has personal jurisdiction over Michael Berardi based on his role in filing New Jersey suits and meeting in New Jersey, and (b) it lacks personal jurisdiction over Cheryl Berardi because allegations about advertising were not specific and her declaration denies directing NJ-targeted advertising.
- The court declined to resolve other Rule 12(b)(6) arguments pending resolution of jurisdictional issues and invited supplemental briefing on whether to dismiss Cheryl without prejudice, sever/transfer claims, or proceed with remaining defendants in D.N.J.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction over Cheryl Berardi | Cheryl solicits business and directs anticompetitive marketing that airs in New Jersey | Cheryl did not direct NJ-targeted advertising; contacts are corporate and insufficient for individual jurisdiction | D.N.J. lacks personal jurisdiction over Cheryl; allegations too conclusory and her declaration denies NJ-specific conduct; dismiss Cheryl without prejudice contemplated |
| Personal jurisdiction over Michael Berardi | Michael directs Blue Gentian to sue and threaten customers in NJ and solicits business in NJ | Michael's contacts are corporate acts not imputable to him individually | Court finds sufficient minimum contacts: Michael directed NJ lawsuits and met in NJ; specific actions support individual jurisdiction |
| Venue in D.N.J. | Substantial events (NJ lawsuits and related conduct) occurred in New Jersey | Transferor court did not decide jurisdiction; venue improper if jurisdiction lacking | Venue is proper: substantial part of events (NJ suit filings and related matters) supports D.N.J. venue; not clear error to transfer |
| Case disposition re: Cheryl | Plaintiffs prefer to proceed in D.N.J. against all defendants | Defendants seek dismissal or transfer for lack of jurisdiction | Court inclined to dismiss Cheryl without prejudice (retain claims vs. National Express and Michael) and requested supplemental briefing on final disposition |
Key Cases Cited
- Christianson v. Colt Indus. Operating Corp., 486 U.S. 800 (law-of-the-case and when transferee court may revisit transferor court's determinations)
- Int'l Shoe Co. v. Washington, 326 U.S. 310 (establishes minimum contacts/due process standard for personal jurisdiction)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (purposeful availment and reasonableness factors for personal jurisdiction)
- World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (contacts must not be random or fortuitous; foreseeability limits jurisdiction)
- Hayman Cash Register Co. v. Sarokin, 669 F.2d 162 (3d Cir.) (transferor court's venue/jurisdiction decision becomes law of the case)
- Miller Yacht Sales, Inc. v. Smith, 384 F.3d 93 (3d Cir.) (plaintiff bears burden to establish personal jurisdiction; prima facie standard on pretrial motions)
- Sunbelt Corp. v. Noble Denton & Assocs., Inc., 5 F.3d 28 (3d Cir.) (§1404(a) cannot transfer to forum lacking personal jurisdiction)
- Cottman Transmission Sys. v. Martino, 36 F.3d 291 (3d Cir.) (venue proper where a substantial part of events giving rise to the claim occurred)
