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Flextronics da Amazonia Ltda. v. CRW Plastics USA Inc.

Default Judgment Denied, Court Lacks Jurisdiction Over Firm; Venue Lies in Detroit

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OPINION & ORDER DEFAULT JUDGMENT   Plaintiffs move for entry of default judgment against defendant CRW Plastics USA under Rule 55 (b) (2) of the Federal Rules of Civil Procedure and Local Rule 55.2. This action arises out of a guaranty agreement between the parties. Plaintiffs allege that defendant breached its obligation to guarantee the obligations of nonparty purchasers as set forth in the Sale of Asset and Lease Agreements. For the following reasons, the motion for default judgment is denied. FACTS The following facts are drawn from plaintiffs’ Complaint and are accepted as true for purposes of this motion.1 Plaintiffs are each companies engaged in the plastic molding business in Brazil. Dkt. No. 1 Ex. A at 2. Plaintiff Flextronics Da Amazonia Ltda. (“Masa”) is a limited liability company, organized under the laws of Brazil, with its principal place of business in Brazil. Dkt. No. 1 2. Plaintiff Flextronics Tecnologia Do Brasil Ltd. is a company incorporated in the Cayman Islands, with its principal place of business there. Id. at 3. Plaintiff Flextronics Industries Singapore Ltd. is a company incorporated in and has its principal place of business in Singapore. Id. at 4. Plaintiffs entered in an Asset Purchase and Sale Agreement and Lease Agreement with nonparties 4C Force Holding A.S. and MC Industria de Plasticos da Amazonia Ltda. Id. at 11. The Asset Purchase and Sale Agreement governed the sale of assets relating to plaintiffs’ manufacturing facility in Brazil. Dkt. No. 1 Ex. A. The Lease Agreement leased property to the nonparty purchasers to allow them to operate the manufacturing facility. Dkt. No. 1 Ex. B

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