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Resource Associates Grant Writing & Evaluation Services, Inc. v. Southampton Union Free School District

Citations: 193 F. Supp. 3d 1200; 2016 U.S. Dist. LEXIS 96782; 2016 WL 3996383Docket: No. CIV 15-1132 JB/SCY

Court: District Court, D. New Mexico; June 15, 2016; Federal District Court

Narrative Opinion Summary

This case involves a dispute between Resource Associates, a New Mexico corporation, and Southampton Union Free School District, a New York entity, over a breach of contract and quantum meruit claim related to grant-writing services. The primary legal issue centered on whether the New Mexico court had personal jurisdiction over the New York-based defendant. The Reciprocal Agreement between the parties did not include a forum selection clause, and the Court determined that Southampton Union did not have sufficient contacts with New Mexico to establish personal jurisdiction under the Due Process Clause. The Court's analysis concluded that both general and specific jurisdiction were lacking, as the defendant's contacts were limited to email and phone communications and did not meet the threshold for minimum contacts. Consequently, the Court granted the defendant's motion to dismiss for lack of personal jurisdiction and ordered a transfer of venue to the Eastern District of New York under 28 U.S.C. § 1631, which allows for such a transfer when the original court lacks jurisdiction. The decision underscores the importance of establishing clear jurisdictional grounds in contractual disputes, particularly in cases involving parties from different states.

Legal Issues Addressed

Choice of Forum in Contractual Agreements

Application: Resource Associates claimed jurisdiction in New Mexico based on the location of its offices, but the Court found that the Reciprocal Agreement lacked a choice-of-law or forum selection clause.

Reasoning: Southampton Union contends that the plaintiff's assertion of jurisdiction is insufficient, noting that the Reciprocal Agreement cited by the plaintiff does not contain a choice-of-law provision.

Personal Jurisdiction Requirements

Application: The Court concluded that it lacked personal jurisdiction over the defendant due to the insufficient contacts with New Mexico, as the defendant's interactions were limited to email and telephone communications.

Reasoning: The Court determined it lacked personal jurisdiction over the defendant, concluding that the plaintiff, Resource Associates Grant Writing and Evaluation Services, Inc., failed to demonstrate that the school district's contacts with New Mexico were sufficiently continuous and systematic to establish general jurisdiction.

Prima Facie Showing of Personal Jurisdiction

Application: The Court noted that the plaintiff must make a prima facie showing of personal jurisdiction using affidavits or written materials when opposing a motion to dismiss.

Reasoning: The Court noted that a plaintiff only needs to make a prima facie showing of personal jurisdiction to oppose a motion to dismiss, using affidavits or written materials to establish jurisdictional facts.

Specific Jurisdiction and Minimum Contacts

Application: The Court found that specific jurisdiction was not applicable because the defendant did not maintain the requisite minimum contacts with New Mexico, as required under the Due Process Clause.

Reasoning: Additionally, the Court found that specific jurisdiction was not met, as the school district did not possess the requisite minimum contacts with New Mexico under the Due Process Clause.

Transfer of Venue under 28 U.S.C. § 1631

Application: The case was transferred to the Eastern District of New York because the Court lacked personal jurisdiction over the defendant, making the transfer necessary to serve the interest of justice.

Reasoning: Consequently, the Court granted the motion to dismiss and ordered the transfer of the case to the Eastern District of New York in accordance with 28 U.S.C. § 1631.