Wednesday, February 15, 2012

Judge Nealon Analyzes Quality-Quantity Test for Proper Venue Over Corporate Defendant

In a January 23, 2012 Opinion in the Lackawanna County Court of Common Pleas case of Jacobson v. The Shay Agency, No. 2011-CV-5965 (C.P. Jan. 23, 2012 Nealon, J.), Judge Terrence R. Nealon addressed a challenge to proper venue asserted by the a business defendant in this breach of contract action arising out of an employment agreement between the Plaintiff and the Defendant.

The Defendants in this matter contended that venue was improper in Lackawanna County since the individual Defendant resided in Luzerne County, the agency Defendant maintained its registered office in Luzerne County, and since the agency Defendant did not regularly conduct business in Lackawanna County.

The Plaintiff countered that venue was proper in Lackawanna County as the agency Defendant regularly conducted business in Lackawanna County.

In his Opinion, Judge Nealon conducted a detailed review of the Rules of Civil Procedure pertaining to venue and also outlined the “quality-quantity” analysis adopted under Pennsylvania law to determine whether a corporation or a similar entity regularly conducted business in a given county.

The Court noted that the quality component of this test is satisfied if the actions that the business entity performs in the chosen forum further, or are directly related or essential to, its business objectives.

Under this "quality-quantity" analysis, quantity means that the acts are sufficiently continuous so as to be considered habitual for purposes of venue.

Applying the facts pertinent to the venue issue to the applicable law, Judge Nealon determined that the factual representations put forth by the Plaintiff adequately established that venue was indeed proper in Lackawanna County.

Anyone desiring a copy of this Opinion by Judge Nealon in the case of Jacobson v. The Shay Agency may click this link.

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