DECISION AND ORDER
INTRODUCTION
Plaintiff Wilderness USA, Inc. (“Plaintiff’) commenced this action in New York State Supreme Court, Monroe County, seeking various forms of relief arising out of a contractual dispute with defendant DeAngelo Brothers LLC (“Defendant”). (Dkt. 1-1). On July 25, 2017, Defendant
Presently pending before the Court is Defendant’s motion to dismiss for lack of in personam jurisdiction and improper venue. (Dkt. 9). The central question governing the disposition of this motion is whether the Court has general jurisdiction over a party, such as Defendant, who is registered to do business as a foreign corporation in New York State, and, as such, has appointed the New York State Secretary of State as its agent for service process. See N.Y. Bus. Corp. Law §§ 1301, 1304(a)(6). Defendant rightly acknowledges that New York courts have permitted the exercise of general jurisdiction over a foreign corporation upon no other basis but compliance with the registration statute. See Steuben Foods, Inc. v. Oystar Grp., No. 10-CV-780S,
FACTUAL BACKGROUND
Plaintiff, a New York corporation maintaining its principal place of business within this district in Monroe County, New York (Dkt. 1-1 at ¶ 1), operates a business specializing in “vegetation management” {id. at 7). Plaintiff employs various individuals to assist in controlling overgrowth along highways and right-of-ways. {Id. at ¶8). According to Defendant’s notice of removal, Defendant is a Pennsylvania limited liability company and maintains its principal place of business in Pennsylvania.
On February 15, 2016, Plaintiff entered into a subcontract with a nonparty contractor known as Mercier, Inc. (“Mercier”) (Dkt. 1-1 at ¶ 9). Mercier agreed to bid on projects offered by the Georgia Department of Transportation (“GDOT”), and promised to assign Plaintiff as its sole subcontractor for vegetation management on any contracts it’was awarded by the State of Georgia. {Id. at ¶ 12). Mercier obtained three contracts for vegetation
On November 29, 2016, Plaintiff, Defendant, and Mercier entered into an “Assignment and Assumption and Release” agreement (the “Agreement”), which provided that Defendant would assume Mercier’s responsibilities under the subcontract with Plaintiff. (Id. at ¶ 21). The Agreement also prevented Defendant from interfering with Plaintiffs work under the GDOT Contract. (Id. at ¶ 22). Plaintiff alleges that it has been competently performing its obligations under the GDOT Contract for over a year and a half. (Id. at ¶ 35).
In June and July of 2017, Defendant allegedly sent its employees to antagonize GDOT personnel about Plaintiffs job performance under the GDOT Contract. (Id. at ¶ 42). Plaintiff notified Defendant that it was interfering with Plaintiffs obligations under the GDOT Contract, and Defendant responded by terminating the subcontract for several material breaches of the subcontract and the GDOT Contract. (Id. at ¶¶ 44-45). Plaintiff alleges that Defendant manufactured these various contractual breaches to “squeeze [Plaintiff] out of the GDOT Contract so that it can take over the work itself.” (Id. at ¶ 48). Plaintiff further alleges that it will suffer irreparable harm upon the termination of the subcontract, such as being forced to lay off 50 employees in Georgia, the loss of its goodwill and reputation with GDOT, and the loss of “substantial investments in acquiring materials and equipment” for the performance of the GDOT Contract. (See id. at ¶¶ 50-51, 53).
Plaintiff filed this action in New York State Supreme Court, Monroe County, seeking a declaration that it has not materially breached the subcontract or the GDOT Contract, a declaration that Defendant’s purported termination of the subcontract is void, injunctive relief enjoining Defendant from seeking to terminate the subcontract or otherwise interfere with Plaintiffs performance of the GDOT Contract, and, alternatively, monetary damages for Defendant’s alleged breach of the subcontract and the Agreement. (Id. at 10-12). On July 20, 2017, the state court entered a temporary restraining order preventing Defendant from terminating the subcontract or otherwise interfering with Plaintiffs performance of the GDOT Contract. (Dkt. 1-8).
Defendant has since filed a notice of removal (Dkt. 1), and a motion to dismiss/transfer of venue (Dkt. 9). Defendant claims that this Court does not have the authority to exercise either general or specific jurisdiction over Defendant, and thus, the action must be dismissed for lack of personal jurisdiction. (Dkt. 9-2 at 13-24). Plaintiff responds only to Defendant’s argument regarding general jurisdiction, and contends that personal jurisdiction has been established because Defendant has registered to do business in New York State as a foreign corporation and has appointed the New York State Secretary of State as its agent for service of process in the state. (Dkt. 13 at 6-17).
Defendant also contends that the complaint should be dismissed because the Western District of New York is an improper venue for this action and, alternatively, even if this Court chooses not to dismiss this action, the matter should be transferred to the State of Georgia as a matter of convenience. (Dkt. 9-2 at 24-29). Plaintiff opposes Defendant’s venue arguments, claiming that the Western District
DISCUSSION
I. Personal Jurisdiction
A. Legal Standard
“The requirement that a court have personal jurisdiction flows not from Art. Ill, but from the Due Process Clause. ... It represents a restriction on judicial power not as a matter of sovereignty, but as a matter of individual liberty.” Ins. Corp. of Ir., Ltd. v. Compagnie des Bauxites de Guinee,
“In general, • a ‘district court’s personal jurisdiction is determined by the law of the state in which the court is located.’” Mrs. U.S. Nat'l Pageant, Inc. v. Miss U.S. Org., LLC,
B. General Jurisdiction
The Supreme Court has held that “[a] court may assert general jurisdiction over foreign (sister-state or foreign-country) corporations to hear any and all claims against them when their affiliations with the State are so ‘continuous and systematic’ as to render them essentially at home to the forum State.” Goodyear Dunlop Tires Operations, S.A. v. Brown,
1. Prevailing Principles Pre-International'Shoe
Plaintiff contends that Defendant is subject to the reach of this Court’s general-jurisdiction by the sole fact that Defendant has registered to do business within the State of New York pursuant to N.Y. Bus. Corp. Law § 1301, This registration statute requires that foreign corporations receive explicit authorization to do business in New York before they may lawfully transact business in New York State. Id. § 1301(a), To receive this authorization, a foreign corporation must submit an application that includes, among other things, “[a] designation. of the secretary of state [of New York] as its agent upon whom process against it may be served. ...” Id. § 1304(a)(6).
Before International Shoe and its progeny ushered in the modem era of personal jurisdiction jurisprudence, the principles of this legal doctrine were governed primarily by the physical geographic limits of a state. See Pennoyer v. Neff,
2. The. Legal Landscape Post-Ihtemational Shoe
International Shoe broadened the authority of state courts to exercise in per-
It is not hyperbolic to suggest-that the prevailing case law relating .to personal jurisdiction today has undergone drastic and doctrinal changes over the past century. As the Second Circuit articulated in Brown',
Pennsylvania Fire is now simply too much at odds with the approach to general jurisdiction adopted in Daimler ... ; in our view, the Supreme Court’s analysis in recent decades, and in particular in Daimler and Goodyear, forecloses such an easy use of Pennsylvania Fire to establish general jurisdiction over a corporation based solely on the corporation’s registration to do business and appointment of an agent under a state statute lacking explicit reference to any jurisdictional implications.
The fact that corporations did do business outside their originating bounds made intolerable their immunity from suit in the states of their activities. And so they were required by legislatures to designate agents for service of process in return for the privilege of doing local business. That service upon such an agent, in conformity with a valid state statute, constituted consent to be sued in the federal court and thereby supplanted the immunity as to venue. ...
Neirbo,
International Shoe “cast doubt on the continued viability of [Pennsylvania Fire and Neirbo].” Cognitronics Imaging Sys, Inc. v. Recognition Research Inc.,
In Daimler, the Supreme Court rejected the view that general jurisdiction could be found “in every State in which a corporation engages in a substantial, continuous, and systematic course of business.” Daimler,
3. Application to the Instant Matter
a. Defendant is Not “Essentially at Home” in New York
Defendant argues that this Court cannot exercise general jurisdiction pursuant to Daimler and its progeny because it is not incorporated under the laws of New York State and it .does not maintain its principal place of business in this state. (Dkt. 9-2 at 13-15). Defendant submitted an affidavit of William Hartman (“Hartman”), Defendant’s Executive Vice President, who averred that Defendant is not incorporated in New York and does not maintain its principal place of business in this state, and further, that Defendant “has no agents or subsidiaries located in New York” or any other business office. (Dkt. 9-3 at 1). Plaintiff does hot controvert these assertions; rather, Plaintiff focuses solely upon an alternative consent-by-registration theory of personal jurisdiction. (Dkt. 13).
There is no denying that Daimler affected a substantial change of law relating to the doctrine of general jurisdiction. See, e.g., Bertolini-Mier v. Upper Valley Neurology Neurosurgery, P.C., No. 16-cv-35,
It is undisputed that Defendant is not a New York corporation and does not maintain its principal place of business in this state; thus, this matter must represent an “exceptional case” in order for Defendant to be found “essentially at home” in New York. See Daimler,
In Perkins, the defendant’s principal place of business had temporarily shifted to Ohio — where the defendant’s president maintained his home — to permit the corporation to carry on its “wartime activities.” Perkins,
Here, Plaintiff alleges that Defendant “regularly does business across” New York, and derives “substantial revenue from services rendered in” this state. (Dkt. 1-1 at ¶ 2). Plaintiff relies upon what appears to be a record from the New York State Office of the State Comptroller, which indicates that Defendant contracted with the New York Department of Transportation on seven occasions to perform various road and bridge maintenance duties. (Dkt. 1-3 at 1, 4-5). Most of these contracts awarded hundreds of thousands of dollars for project completion, and one contract was' valued at over one million dollars. (Id. at 4-5). These contractual relationships span time periods beginning on March, 17, 2008, and ending on June 30, 2017. (Id.). However, consistent with Hartman’s averments, there appears to be no current contractual arrangement between Defendant and the New York Department of Transportation. (See id.-, Dkt. 9-3 at ¶ 9). In addition, Plaintiff has not controverted Hartman’s further averment that only two percent of Defendant’s revenue from last year arose from any work it performed in New York State. (Dkt. 9-3 at ¶8). In Daimler, the percentage of the defendant’s subsidiary’s sales that arose from the subsidiary’s transactions in California constituted just 2.4% of the defendant’s worldwide sales volume. Daimler,
Even viewing Plaintiffs allegations about Defendant’s activities in New York State in the light most favorable to Plaintiff, the Court concludes that this case is simply not an “exceptional case” as contemplated by the Supreme Court in Daimler, and as such, because Defendant does not maintain its principal place of business in New York and is not a New York corporation, Defendant is not “essentially at home” in this state and is not subject to general jurisdiction pursuant to Daimler1 s framework.
b. Consent-By-Registration Theory of General Jurisdiction
. As noted above, Plaintiff asserts only one argument in support of its position that the exercise of general jurisdiction is warranted in this case. Plaintiff argues that because Defendant is a foreign corporation that is registered tó do business in New York and has appointed the New York State Secretary of State as its agent for service of process, Defendant has consented to the exercise of general jurisdiction. (Dkt. 13 at 6-17). It appears that every other federal district court in New York to squarely address whethér a foreign corporation’s registration with the secretary of state constitutes consent to general jurisdiction has held that this doctrine has been invalidated by the Supreme Court’s decision in Daimler. See, e.g., Famular v. Whirlpool Corp., No. 16 CV 944 (VB),
In its opposition papers, Plaintiff points to several more recent state trial court opinions and a federal district court decision in support of its position. (Id. at 14-15). Specifically, Plaintiff relies upon Beach v. Citigroup Alternative Invs. LLC, No. 12 CIV. 7717 (PKC),
Similarly, the Court does not find the state trial court opinions cited by Plaintiff to be persuasive given their brief and incomplete, analytical treatment of this issue. See, e.g., Serov ex rel. Serova v. Kerzner Int’l Resorts, Inc.,
Plaintiff also relies upon Gucci Am., Inc. v. Weixing Li,
Had it been otherwise, the Second Circuit would have faced the legal issues that arose in Brown two years later, and then, even had it found that New York’s registration statute could be interpreted to warrant the exercise of general jurisdiction post -Daimler, the Second Circuit would have had to square this construction with the strictures of constitutional due process. See Brown,
Plaintiff further contends that Brown does not completely foreclose its argument, and in fact, actually bolsters its position. In Brown, the Second Circuit distinguished the Connecticut registration statute from Pennsylvania’s registration statute. See Brown,
Here, it is clear that New York’s registration statute does not provide an express requirement of consent to general jurisdiction as a condition for a foreign corporation to become authorized to transact business within the state. See N.Y. Bus. Corp. Law §§ 1301, 1304; Minholz,
Plaintiff cites to no case decided by the New York Court of Appeals in recent years that squarely addresses this issue,' let alone a decision post-dating Daimler. Moreover, the two New York Court of Appeals cases Plaintiff relies upon predate International Shoe and its progeny, and interpret an earlier version of New York’s business registration statute. See Pohlers,
Furthermore, the Supreme Court’s shift from the more forgiving “minimum contacts” analysis of International Shoe “to the more demanding ‘essentially at home’ test enunciated in Goodyear and Daimler[, ]suggests that federal due process rights likely constrain an interpretation that transforms a run-of-the-mill registration and appointment statute into a corporate ‘consent’ — perhaps unwitting — to the exercise of general jurisdiction by state courts. ...” Brown,
The Court acknowledges that Plaintiffs argument is not without some support. Preceding Daimler, the decisions issued by the courts of New York and this Circuit indicated that consent-by-registration was a viable theory upon which to assert general jurisdiction. See STX Panocean (UK) Co., Ltd. v. Glory Wealth Shipping Pte Ltd.,
Lastly, at oral argument counsel for Plaintiff produced two additional post-Daimler federal district court cases in support of Plaintiffs position. However, Plumbers’ Local Union No. 690 Health Plan v. Apotex Corp., No. 16-665,
Therefore, because Defendant does not maintain its principal place of business in New York and is not incorporated under the laws of New York, the Court concludes that the exercise of general jurisdiction would be inappropriate as Defendant cannot be considered “essentially at home” in New York. See Daimler,
II. Venue
Since Defendant’s motion to dismiss has been granted and the complaint dismissed for lack'of personal jurisdiction, it is unnecessary to determine the merits of Defendant’s' argument that the case should be dismissed for improper venue. Nonetheless, the Court may still exercise
Here, Defendant argues, in the alternative, that should the Court not dismiss this action outright, the case should be transferred to a federal court in Georgia. (Dkt. 9-2 at 26-29). Plaintiff argues that the Court should not transfer the . case to Georgia (Dkt. 13 at 19-21); however, Plaintiff does not make any argument as to why the case should or should not be transferred in the event this Court determines that it lacks personal jurisdiction over Defendant. Since Defendant argues for transfer in the alternative only, and Plaintiff does not seek transfer in the event the Court finds that it lacked personal jurisdiction over Defendant, the Court chooses to dismiss the' complaint and declines to exercise its discretion to transfer the case to a federal court in Georgia.
CONCLUSION
For the foregoing reasons, Defendant’s motion to dismiss (Dkt. 9) is granted, and Plaintiffs complaint (Dkt. 1-1) is dismissed without prejudice. To be clear, because the case is dismissed, the temporary restraining order issued by New York State Supreme Court, Monroe County, (Dkt. 1-8), is vacated. The CleA of Court is directed to close this case.
SO ORDERED.
Notes
. The following facts are taken from the complaint unless otherwise specified.
. The matter was properly removed to federal court on the basis of diversity jurisdiction because Defendant has alleged an amount in controversy that exceeds $75,000, (Dkt. 1 at ¶ 20); Colavito v. N.Y. Organ Donor Network, Inc.,
. It is clear that the Court does not have specific jurisdiction over Defendant. The complaint alleges that the asserted causes of action arise from conduct occurring in Georgia, not New York. (Dkt. 1-1 at 9-12). Indeed, Plaintiff does not even respond to Defendant’s argument that specific jurisdiction does not exist in this matter. (Dkt. 13). As Plaintiff fails to allege that its causes of action arise out of any conduct by Defendant in New York State, the Court cannot exercise specific jurisdiction over Defendant pursuant to CPLR 302(a)(1). See, e.g., Stroud v. Tyson Foods, Inc.,
. Notably, Pennsylvania appears to be the sole jurisdiction that has enacted an express statutory provision admonishing foreign corporations that registration of the secretary of state as an agent for service process carries with it consent to personal jurisdiction by the courts of that state. See Tanya J. Monestier, Registration Statutes, General Jurisdiction, and the Fallacy of Consent, 36 Cardozo L. Rev. 1343, 1414 n.2 (2015); see also 42 Pa. Cons. Stat. § 5301(a)(2)(i)-(ii) ("The existence of any of the following relationships between a person and this Commonwealth shall constitute a sufficient basis of jurisdiction to enable the tribunals of this Commonwealth to exercise general personal jurisdiction over such person[:] ... Incorporation under or qualification as a foreign corporation under the laws of this Commonwealth ... Consent, to the extent authorized by the consent. ...”), Moreover, it further appears that the New York State legislature attempted to pass a bill containing similar language, but that bill failed to become enacted into law. Monestier,
. Notably, both cases predate Daimler. See Bane v. Netlink, Inc.,
. In its opposition papers and at oral argument, Plaintiff underscores the fact that New York's business registration statute requires the designation of the secretary of state as the foreign corporation’s agent for "any process against it served upon him.” N.Y. Bus. Corp. Law § 1304(a)(6) (emphasis added); (see Dkt. 13 at 10). The Court finds that this statutory language is neither sufficiently clear nor definitive to constitute an “explicit reference to any jurisdictional implications1' of designating the secretary of state as Defendant’s agent for service of process. Brown,
. The Court notes that the Supreme Court of Delaware, in light of Daimler and Goodyear, has recently overruled its longstanding precedent that held foreign corporations to have implicitly consented to the exercise of general jurisdiction through its business-registration statute. See Genuine Parts Co. v. Cepec,
