LEO T. SOROKIN, District Judge.
Plaintiff Copia Communications, LLC, is suing AMResorts, L.P. and Seawind Key Investments Limited, for breach of contract and related claims arising out of Internet services Copia supplied to Seawind at two resort hotels in Jamaica. Both Defendants have moved to dismiss for lack of personal jurisdiction and assert that Jamaica is the appropriate forum for this litigation.
For the reasons that follow, both motions to dismiss are ALLOWED.
The following facts are drawn from the Complaint and the parties' factual submissions. Because this motion concerns whether the Court has personal jurisdiction over the defendants, the Court may consider facts beyond those alleged in the complaint.
Plaintiff, Copia, is a Massachusetts limited liability company, which provides Internet services to resort hotels. Docket #1 ¶¶ 4, 10. Defendant, AMResorts, L.P., is a Pennsylvania limited partnership, which provides "brand licensing, hotel management assistance services, and online distribution and sales services for all-inclusive hotels located in the Caribbean and Central America." Docket #30 at 4. Defendant, Seawind, is a Jamaican corporation, which owns the two resort hotels in Jamaica central to this case. Docket #22 at 4.
Neither Defendant is registered to do business in Massachusetts, pays taxes in Massachusetts, employs anyone in Massachusetts, nor has an office, a bank account, or property in Massachusetts. Docket #25 ¶¶ 6-9; Docket #29-1 ¶¶ 5-10. AMResorts maintains a website that allows people internationally to view its hotel brands and make reservations. Docket #29-1 ¶ 4. Darryl Wehmeyer, Copia's manager, attests that he "understand[s] that the Defendants advertise heavily in the United States, and including in the Commonwealth of the [(sic)] Massachusetts." Docket #29-2 ¶ 7.
In approximately April 2009, Wehmeyer "began negotiations with the Defendants for customer Internet services" at two new Jamaican resorts owned by Seawind. Docket #1 ¶¶ 6, 10. Copia previously had submitted a quote for complete wireless coverage of the resorts in November 2008. Docket #28 ¶ 12; Docket #28-2 at 2. In January 2009, not having received any feedback, Wehmeyer wrote to Seawind's Michael McMorris seeking help in overcoming possible language barriers with certain individuals, and asking him to "communicate with them the great importance Copia has put on this project and that we want to be sure that we are getting across all the information for our services." Docket #28 ¶ 12; Docket #28-2 at 2.
Negotiations continued through June and July of 2009. Docket #1 ¶ 13. Wehmeyer received emails in the course of the negotiations (and later the relationship) some of which he may have read at Copia's principal place of business in Massachusetts. Docket #1 ¶ 4; see, e.g., Docket #1-1 at 2-14. Copia also had offices in Jamaica and sent a proforma invoice to Seawind with an estimate of costs on its Jamaican office letterhead. Docket #1-1 at 5; Docket #1-2 at 2. Several in-person meetings took place in Jamaica during the negotiations, Docket #25 ¶ 23, and Wehmeyer maintained both a Massachusetts and a Jamaican cell phone. Docket #28-2 at 2; Docket #49-2 ¶ 11. It is undisputed that no meetings took place in Massachusetts during the negotiations.
On June 29, 2009, Copia and Seawind entered into the contract for Copia to provide the Internet services at the two Jamaican resorts. Docket #1-2 at 2. Salvador Luque Garcia, Seawind's current Chairman, attests that the contract "was first drafted by Copia[,]" and that "Copia sent a draft of the Contract to Seawind and AM Jamaica employees in Jamaica to review during the negotiations." Docket #25 ¶¶ 24, 25. This testimony is supported by the contract itself, which identifies the parties as "COPIA" and "Customer," "Customer" being Seawind, thus reflecting Copia as the author. Docket #1-2 at 2.
The contract identifies Copia as a Massachusetts corporation "with offices in Jamaica[,]" and Seawind as a Jamaican corporation. Docket #1-2 at 2. Copia's Massachusetts address appears only at the end of the contract just above the signature line. Docket #1-2 at 12. The address(es) of Copia's "Jamaican offices" is not listed. The contract established that: 1) Copia "will configure and install the [Internet services] Solution at the Installed Property[;]" 2) "Products contained in the Solution shall remain the absolute property of Copia[;]" and 3) "The Solution [the means of delivering Internet services to Seawind and its guests] shall at all times remain the exclusive and absolute property of COPIA and the Solution is provided to CUSTOMER for use by CUSTOMER exclusively in connection with its business." Docket #1-2 ¶¶ 2.1(k), 3.1-3.3. It further obligates Copia to "provide on-going technical support, maintenance and services . . . for each Solution . . . [and to] provide bandwidth for guest connectivity at the Installed Property to the Internet, equipment associated with Internet connectivity throughout the property and software on the guest network needed to provide the solution." Docket #1-2 ¶¶ 4.1-4.3. The contract states that the "Installed Property" is described in "Project Schedule 1 hereto." Docket #1-2 at 3 ¶ 2.1(h). Such schedule is not in the record. The parties do not dispute, however, that "Installed Property" refers to the two resort hotels in Jamaica at issue: Secrets St. James Montego Bay and Secrets Wild Orchid Montego Bay, both owned by Seawind. Furthermore, while evidence indicates that AMResorts may have operated some hotels in the Caribbean, there is no evidence that AMResorts operates these two hotels owned by Seawind.
Seawind was to pay Copia "the percentage of Revenue Share as identified in each Project Schedule[,]" and "COPIA [would] also accept payments directly from the end users of the solution." Docket #1-2 ¶ 6.1. Payment was required in United States dollars, Docket #1-2 ¶ 6.5, but no term required that payment be sent to a particular address.
The contract prohibited Seawind from removing "any Equipment or Products from the Installed Property for any reason without the prior written consent of COPIA." Docket #1-2 ¶ 8.0. An "EXPORT CONTROL" clause provided that "[t]he parties acknowledge that any Products and technical information (including, but not limited to, services and training) provided under this Agreement are subject to United States export laws and regulations and any use or transfer of such Products and technical information must be authorized under those regulations." Docket 1-2 ¶ 9.0. Nothing in the contract, however, specified that any equipment or component of the solution would be manufactured in, or originate specifically from Massachusetts.
A notice provision required that "[s]ervice of any legal proceedings concerning or arising out of this Agreement shall be effected by causing the same to be delivered to the statutory agent or company secretary of the party to be served at its registered office, or at such other address as may from time to time be notified in writing by the party concerned. Until further notice, the respective addresses for the parties shall be as first set forth above." Docket #1-2 ¶ 18.3. A choice of law clause specifies that the "Agreement shall be governed by and construed in all respects in accordance with the laws of Jamaica, W.I. and each party hereby submits to the nonexclusive jurisdiction of the Courts of Jamaica W.I." Docket #1-2 ¶ 17.0.
Manuel Garcia, a Seawind employee at the time, attests that "[p]ursuant to [his] written request, and consistent with the ongoing negotiations occurring in Jamaica, Wehmeyer, on behalf of Copia, executed the Contract at Seawind's office in Jamaica." Docket #26 ¶ 9; Docket #1-2 at 14. This is undisputed in the record.
During the contractual relationship Copia shipped telecommunications equipment to Jamaica from Massachusetts in order for Copia to perform. Docket 49-2 ¶ 7. "Payments under the contract and for equipment were made by the Defendants to Copia, in Massachusetts."
7. While "[t]he address of the check payments [was] [Copia's] Massachusetts business address],]"
Performance took place entirely in Jamaica. Copia's obligations under the contract were to provide for "Internet access and computer equipment rentals and an Internet Café to [Seawind's] guests at the [Jamaican resorts]." Docket #1-2 at 2 ¶ 1.2. Copia installed the equipment at the Jamaican resorts, Docket #26 ¶ 13, provided service and maintenance at the resorts, Docket #27 ¶ 8, daily made available several Copia employees on-site to assist with any maintenance and performance issues, Docket #27 ¶ 9, and "consistently maintained at least two, if not three, employees on-site at the Resorts' Business Center." Docket #27 ¶ 10. In or around May 8, 2010, Wehmeyer responded to a resort guest's complaint about the Internet service saying, "were you ever made aware that we have technicians on property seven days a week in order to assist you in connecting to the Internet[?]" Docket #26-5 at 2.
On April 28, 2014, Seawind's Emilio Huhn notified Wehmeyer by email and attached letter that Seawind had decided not to renew the contract. Docket #1-3 at 7-8. Huhn offered to "meet to discuss next time you [Wehmeyer] come to the island."
The parties were unable to reach agreement on their dispute. Plaintiff brought this action asserting claims for breach of contract, breach of the implied covenant of good faith and fair dealing, promissory estoppel, unjust enrichment, fraud and deceit, negligent misrepresentation, civil conspiracy, and violations of Mass. Gen. Laws ch. 93A, § 11. Both Defendants have moved to dismiss.
A "plaintiff bears the burden of proving the court's personal jurisdiction over the defendant."
The First Circuit has "construed the Massachusetts long-arm statute as being coextensive with the limits permitted by the Constitution."
"Personal jurisdiction may be either general or specific."
For specific jurisdiction the minimum contacts analysis is divided into the three categories of relatedness, purposeful availment, and reasonableness as follows:
The purposeful availment requirement "ensures that jurisdiction is not based on merely `random, isolated or fortuitous' contacts with the forum state."
Finally, whether the assertion of jurisdiction is reasonable and fair depends on consideration of five factors know as the "Gestalt factors."
Copia has not met its burden to establish all three preconditions for the exercise of specific jurisdiction. To support the exercise of personal jurisdiction, Copia points to 1) the payment checks with Copia's Massachusetts address, 2) the telephone calls and emails Wehmeyer received on occasion while he was in Massachusetts, 3) the contract clause indicating that notice be given to Copia in Massachusetts, 4) the equipment that was shipped from Massachusetts to Jamaica, and 5) Defendants' marketing efforts in Massachusetts. These contacts fail to establish specific jurisdiction on relatedness and purposeful availment grounds.
"[T]he relatedness requirement is not met merely because a plaintiff's cause of action arose out of the general relationship between the parties; rather, the action must directly arise out of the specific contacts between the defendant and the forum state."
First, the contract was not "formalized and entered into" in Massachusetts. In
Second, the parties did not contemplate future consequences within Massachusetts in their prior negotiations, their course of dealing, or through the terms of the contract.
Third, the contract did not subject Defendants to "substantial control and ongoing connection to" Massachusetts.
Finally, Copia's claims do not arise out of any marketing efforts Defendants made in Massachusetts. Copia states in its complaint, "Upon information and belief, the Defendants market and advertise their Secrets Resorts brand in the Commonwealth and conduct their tourism business with Massachusetts residents." Docket #1 ¶ 7. Copia attaches to its opposition "Various Web Pages of Secrets Resorts and AM Resorts," intended to support its contention that Defendants advertise to tourists and travel agents, potentially within Massachusetts.
Nothing about the limited contacts Defendants did have with Massachusetts — payments addressed to, and potentially mailed to Massachusetts, or the possibility that Wehmeyer might read emails or receive phone calls here — constitutes purposeful availment of the privilege of conducting business in Massachusetts, invoking the benefits and protections of its laws.
As with the relatedness analysis, the First Circuit considers "contemplated future consequences" in the purposeful availment calculus.
This is in stark contrast to
The First Circuit reasoned that the genesis of the parties' relationship, plaintiff learning of the sale in its Boston offices from defendant, supported purposeful availment.
We have no such circumstances here, where Copia initiated contact with Seawind, the center of gravity of the entire relationship was in Jamaica, and Defendants had no reason to expect any performance to occur in Massachusetts.
Finally, the Gestalt factors weigh against the exercise of jurisdiction. Neither Defendant has any operations or activities in Massachusetts, either related to this contract or not, thus imposing a burden on appearance. Massachusetts has little or no interest in adjudicating a dispute concerning a contract negotiated in Jamaica, executed in Jamaica, calling for performance in Jamaica, requiring the application of Jamaican law, and where virtually the entire course of conduct occurred in Jamaica. The Plaintiff can obtain convenient and effective relief in Jamaica — all the parties are subject to jurisdiction there and Plaintiff itself recognized the possibility of suit there by signing the contract with a provision providing for Jamaican jurisdiction. The final two factors also weigh in favor of not exercising jurisdiction largely for the same reasons.
For the foregoing reasons, Seawind Key Investments Limited's Motion to Dismiss (Docket #21) and AMResorts, L.P.'s Motion to Dismiss (Docket #29) are both ALLOWED.
SO ORDERED.