POWER PARAGON, INC. V. PRECISION TECHNOLOGY USA, INC. 605 F.Supp.2d 722 (2008) CASE BRIEF

POWER PARAGON, INC. V. PRECISION TECHNOLOGY USA, INC.

605 F.Supp.2d 722 (2008)

NATURE OF THE CASE: Precision (D) moved to dismiss Power's (P) lawsuit for improper venue.

FACTS: P alleged a breach of contract and unjust enrichment due to D's alleged failure to pay certain amounts due under a contract entered into by D and P's parent company. This action arises out of the delivery of a single Motor Controller for an Aircraft Barricade Stanchion from P to D. The contract specified that the Product was to be delivered to D on July 31, 2006 and installed on a U.S. Navy ship. D's Purchase Order established a contract price of $464,962 for the Product and $78,908 for related field support. The Purchase Order provides that the laws of Virginia govern any disputes upon which the parties cannot reach a settlement and provide that 'venue shall be the applicable state or federal court in Roanoke, Virginia.' On September 11, 2006, the Product was initially shipped from P's facility to Michigan for functional testing; the Product was then shipped to New York for additional testing. P later performed the field services specified under the contract. On May 30, 2008, the Product was shipped to the Navy Shipyard in Newport News, Virginia for installation on board the Ship. The Product remains in Newport News. P was to be paid for the product in seven monthly payments. D paid $205,000 and failed to pay the remaining four milestone payments, totaling $260,000 and D refused to pay the $78,900 in invoices for post-delivery field support provided by P. P sued for breach of contract and unjust enrichment to recover the unpaid costs.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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