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Reefer Tek LLC v. El Dorado Trailer Leasing LLC

Wisconsin Judgment Vacated; Issues Exist if Firm Subject to State's Long-Arm Law

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OPINION AND ORDER   This action stems in large part from a default judgment entered against one of the Plaintiffs, Reefertek USA Corp. (the “Corporation”), and in favor of Defendant, El Dorado Trailer Leasing, LLC (“El Dorado”), in the District Court for the Eastern District of Wisconsin (the “Wisconsin Judgment”). See Eldorado Trailer Leasing LLC v. ReeferTek USA Corp., 14 Civ. 1199 (LA), 2015 WL 13173096 (E.D. Wis. May 29, 2015). Plaintiffs Reefer Tek LLC (the “LLC”) and the Corporation (together, “Plaintiffs”) bring three causes of action: two claims for breach of contract on behalf of the LLC; and an action to vacate the Wisconsin Judgment or, in the alternative, for injunctive relief on behalf of the Corporation. Doc. 1, Ex. A. This action was initially filed in Bronx Supreme Court and was subsequently removed to this Court. Doc. 1. This Court has diversity jurisdiction. 28 U.S.C. §1441(a)-(b).1 Before the Court is Plaintiffs’ motion to vacate the Wisconsin Judgement due to a lack of personal jurisdiction and to subsequently lift the restraining notices issued in connection with said judgment, or, in the alternative, to enjoin enforcement of the judgment. Doc. 5, Ex. B (“Order to Show Cause”); see also Doc. 10. For the reasons set forth below, the motion is Court GRANTED. I. BACKGROUND A. Factual Background Plaintiffs produce refrigerated vans. Doc. 5, Ex. C (“Leibman Affidavit”)

5-6. The LLC is “in the business of custom up-fitting motor vehicles for use in the refrigerated vehicle industry.” Id. 5. And the Corporation “is in the business of providing, marketing, website support and purchasing for independent Reefertek dealers.” Id. 6. The Corporation, which is incorporated and headquartered in New York, does not perform up-fitting. Id; Doc. 1, Ex. A 10. Furthermore, the LLC and the Corporation have different tax identification numbers and purport to be “two separate and distinct entities.” Doc. 6, Ex. J (“Leibman Reply Affidavit”)

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