Source: http://www.leagle.com/decision/19871697657FSupp1040_11520
Timestamp: 2013-12-09 00:35:11
Document Index: 100487316

Matched Legal Cases: ['§ 1351', '§ 301', '§ 302', '§ 1965', '§ 1965', '§ 301', '§ 1965', '§ 1965', '§ 1965', '§ 1965', '§ 1965', '§ 1404', '§ 1404']

ROLLS-ROYCE MOTORS, INC. v. CHARLES SCHMITT & CO. | Leagle.com Home
Citing Case ROLLS-ROYCE MOTORS, INC. v. CHARLES SCHMITT & CO.No. 85 Civ. 5078 (PKL). 657 F.Supp. 1040 (1987) ROLLS-ROYCE MOTORS, INC., Plaintiff,
April 3, 1987. Schnader, Harrison, Segal & Lewis, Donald H. Rivkin, W. Michael Garner, Marjorie L. Cohen, New York City (William P. Kennedy, General Counsel Rolls-Royce Motors, Inc., of counsel), for plaintiff.Jacob, Medinger & Finnegan, New York City, for defendants. LEISURE, District Judge:
FootNotes1. Nor have the parties engaged in the type of substantial discovery which would justify holding plaintiff to a higher standard of proof at this stage of the litigation. See Volkswagenwerk A.G. v. Beech Aircraft Corp., 751 F.2d 117, 120 (2d Cir.1984). In particular, discovery was limited pursuant to a hearing before this Court. The plaintiff eventually must prove jurisdiction, as well as all the elements of its cause of action, by a preponderance of the evidence. Visual Sciences, supra, 660 F.2d at 59. However, because the Court believes that defendant's motion can be decided at this point, it is not necessary to hold this decision in abeyance pending additional discovery by the parties. See 5 C. Wright & A. Miller, Federal Practice & Procedure § 1351 at 566 (1969).2. Plaintiff does not allege that Schmitt Co. has violated RICO, barring subject matter jurisdiction over the corporate defendant pursuant to a federal question. While the Amended Complaint is unclear as to whether the RICO claim is asserted against both defendants, see Amended Complaint at ¶¶ 12-16, 17-18, it is clear from Plaintiff's Memorandum in Opposition to Defendant's Motions ("P. Memo") that no jurisdictional argument is made regarding Schmitt Co. via RICO. This is proper. Since Schmitt Co. is identified as the "enterprise" under the RICO claim, it cannot also be a party defendant as to that claim. See Bennett v. United States Trust Co., 770 F.2d 308, 315 (2d Cir.1985), cert. denied, ___ U.S. ___, 106 S.Ct. 800, 88 L.Ed.2d 776 (1986).3. Plaintiff does, however, allege that Schmitt Co. has held itself out as maintaining an office in New York. The Court discusses this claim infra.4. The Court notes that plaintiff did not deal in any manner with Wolf or Shane. Therefore, there can be no agency by estoppel because plaintiff had no occasion to rely on Wolf and Shane's supposed agency status. See, e.g., Dero supra, 598 F.Supp. at 322. Indeed plaintiff's complaints as to defendants' advertising mentioning these representatives clearly show that plaintiff was never misled as to Wolf and Shane's actual status.5. The Court, after reviewing the copies of the advertisements, has found only one instance, a July 21, 1985 advertisement for sale of a 1983 Excalibur, where Wolf was advertised as Schmitt Co.'s New York representative for a sale of a car. Plaintiff's Exhibit 5.6. Shane's name was advertised in lieu of Wolf's for approximately one month in the Spring of 1985 in the same manner as described above.7. In the interest of completeness, the Court notes that the seventh factor relied upon by plaintiff, the meetings between Schmitt and Rolls-Royce in New York, fall far short of the sort of contact required under § 301. See Hoffritz, supra, 763 F.2d at 59.8. Plaintiff also cites Schwartz Aff. at ¶ 10 in support of its argument with respect to this issue. The Court has reviewed that paragraph of the document and does not perceive its relevance to the question of whether Schmitt has committed torts in New York.9. This is not a case analogous to Hargrave v. Oki Nursery, Inc., 636 F.2d 897 (2d Cir.1981) where the Second Circuit held that defendant's contract breach also constituted the independent tort of fraudulent misrepresentation. The Circuit Court in Hargrave found jurisdiction pursuant to § 302(a)(3). Id. at 900. In this case, there is no allegation defendant made misrepresentations, intending that plaintiff rely on them, or indeed, that the plaintiff did in fact rely on any such statements. See MIJE Assocs., supra, 552 F.Supp. at 420 n. 5.10. Defendants, citing no case law, claim that nationwide service of process is only authorized under RICO if a judicial determination is made that the "ends of justice" so require. D. Reply Memo at 40. Defendants have misconstrued the statute, by confusing personal jurisdiction with venue. The language upon which defendants rely is found in § 1965(b). This subsection comes into play if a court determines that venue is proper as to one or more defendants in a RICO case pursuant to § 1965(a), but not as to other defendant(s). In that case, a court can assert venue as to the remaining defendant(s) if "justice so requires." See Soltex, supra, 590 F.Supp. at 1459 (E.D.N.Y.1984); Miller Brewing Co. v. Landau, 616 F.Supp. 1285, 1290 (D.Wis. 1985). At this juncture, this Court is limiting its inquiry to a determination of whether personal jurisdiction is proper.11. If the federal claim is dismissed at any point, then the Court loses jurisdiction over the pendent state law claims. See Gibbs, 383 U.S. at 726, 86 S.Ct. at 1139. The Court does not, however, reach the question as to whether there is an independent basis for personal jurisdiction over defendant Schmitt based on diversity of citizenship and CPLR §§ 301 or 302 with regard to the state law claims.12. Moreover, the Court notes that it is undisputed that Schmitt is a resident of Missouri.13. 18 U.S.C. § 1965(b) provides an alternative venue provision. The Court can cause a party to be summoned before it where the "ends of justice" so require. Plaintiff has not attempted to make such a showing here. In any case, use of § 1965(b) is predicated on the presence of at least one other defendant being properly before the Court. Without Schmitt, as to who venue is challenged, there would be no defendant properly venued pursuant to § 1965(a). See Soltex, 590 F.Supp. at 1459. Moreover, the fact that both the corporate and individual defendant can be sued in another district, e.g., the Eastern District of Missouri, suggests that the "ends of justice" may not require an order by the Court under § 1965(b). But see Miller Brewing, supra, 616 F.Supp. at 1290 (finding "ends of justice" require venue under § 1965(b) even though venue would be proper as to all defendants in another district, due to extraordinary delay that would ensue).14. The "first-filed" rule is generally implicated in cases where one party, because of a similar suit pending elsewhere, seeks a stay of proceedings, or in the alternative, a transfer under § 1404(a). Defendants, in the instant action, have only moved for transfer. However, defendants suggest that plaintiff brought this action in the Southern District of New York in order to undercut defendants' efforts to have their antitrust claim heard in the Eastern District of Missouri. Nevertheless, the Court discusses the first-filed rule now, because, as the discussion in the text indicates, the clear practice is for the courts to look to underlying considerations of fairness and convenience, applying basically the same factors relevant to transfer under § 1404(a), rather than treating it as a talismanic principle of decision. See, e.g., Kerotest Mfg. Co. v. C-0-Two Fire & Equip. Co., 342 U.S. 180, 183, 72 S.Ct. 219, 221, 96 L.Ed. 200 (1952); Factors, supra, 579 F.2d at 218-19.15. Judge Newman, commented, in the context of the forum non conveniens doctrine, that:
Calavo Growers v. Belgium, 632 F.2d 963, 969 (2d Cir.1980) (Newman, J., concurring). Comment