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JB Aviation v. R Aviation Charter Services, LLC

Citations: 143 F. Supp. 3d 37; 2015 U.S. Dist. LEXIS 153207; 2015 WL 7009191Docket: No. 14 CV 5175(DRH)(AKT)

Court: District Court, E.D. New York; November 11, 2015; Federal District Court

Narrative Opinion Summary

The case involves a dispute between plaintiffs, a New York-based aviation entity and its member, and defendants, a Florida-based aviation service and its manager, concerning alleged breaches of a Brokerage Agreement and a Project Management Agreement. The plaintiffs accuse the defendants of breach of contract, unjust enrichment, and misrepresentation, related to aircraft brokerage services and employment promises. The defendants moved to dismiss the case citing lack of personal jurisdiction, improper venue, and failure to state a claim, or alternatively to transfer the case to Florida. The court ruled partially in favor of the defendants by dismissing claims against the corporate defendant RACS for lack of jurisdiction, as it lacked sufficient contacts with New York. However, the court asserted jurisdiction over Rosatti due to his business activities in New York, denying the motion to transfer venue. The court also addressed the statute of frauds, determining the Brokerage Agreement could be performed within a year, thus not subject to the statute. The misrepresentation claim was dismissed as redundant, while other claims were dismissed without prejudice, allowing plaintiffs to replead. The motion to transfer venue was denied as defendants failed to demonstrate greater convenience in Florida. The case will proceed in New York, focusing on claims against Rosatti under the Brokerage Agreement.

Legal Issues Addressed

Breach of Contract and Statute of Frauds

Application: The court held that the alleged Brokerage Agreement does not violate the statute of frauds as it could potentially be performed within one year, negating the necessity for a written contract.

Reasoning: The court clarifies that even if the agreement was not documented, it does not violate the statute since agreements for compensation related to the sale of goods, like airplanes, do not require written form.

Dismissal for Lack of Personal Jurisdiction

Application: The court dismissed claims against RACS for lack of personal jurisdiction, as it was incorporated after the events in question and had no relevant contacts with New York.

Reasoning: In contrast, RACS was incorporated in 2011 and had no contacts with New York related to the 2010 Brokerage Agreement; thus, it cannot be held liable for its breach.

Motion to Dismiss under Rule 12(b)(6)

Application: The court partially granted the motion to dismiss, finding that the misrepresentation claim was redundant and not distinct from the breach of contract claim.

Reasoning: The plaintiffs’ misrepresentation claim was dismissed because it was found to be redundant with their breach of contract claim, as it only added the allegation of the defendants' lack of intent to fulfill the contract promises.

Personal Jurisdiction under New York's Long-Arm Statute

Application: The court found personal jurisdiction over Rosatti, as he transacted business in New York related to the Brokerage Agreement through meetings and contractual negotiations.

Reasoning: Plaintiffs argue that the defendants are subject to specific jurisdiction under New York’s long-arm statute, specifically citing the 'transacting business' provision that permits jurisdiction over non-domiciliaries engaging in business within the state.

Venue Appropriateness and Transfer of Venue

Application: The court denied the motion to transfer venue to Florida, affirming that significant events related to the Brokerage Agreement occurred in New York, thus establishing proper venue.

Reasoning: The plaintiffs argued that a substantial part of the events occurred in New York, specifically citing that the Brokerage Agreement was negotiated and executed in Brooklyn, thus establishing a prima facie case for venue in the Eastern District of New York under 28 U.S.C. § 1391(b)(2).