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Posven, C.A. v. Liberty Mutual Insurance Co.

Court Transfers Action to Pennsylvania, Where Third-Party Defendant Maintained Office

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Plaintiff POSVEN, C.A. (“POSVEN”) commenced this diversity action seeking damages for breach of a $39,375,000 performance bond (“Performance Bond” or “Bond”) issued by defendant and third-party plaintiff Liberty Mutual Insurance Co. d/b/a Liberty Bond Services (“Liberty Mutual”). The Bond secured performance by Energy Overseas International, Inc. (“EOI”) and United Engineers, Inc. (“UEI”) on a series of contracts between POSVEN and EOI, UEI, and third-party defendant POSCO Engineering & Construction Co., Ltd. (“POSEC”). Liberty Mutual, in turn, brought a third-party complaint against POSEC for exoneration and quia timet, subrogation, contribution, reimbursement, restitution and indemnity. In response, POSEC now moves to dismiss the third-party complaint for lack of personal jurisdiction, pursuant to Rule 12(b)(2) of the Federal Rules of Civil Procedure. Liberty Mutual opposes the motion to dismiss and has filed a cross-motion to transfer the entire action to the Eastern District of Pennsylvania pursuant to 28 U.S.C. §1404(a). Both POSVEN and POSEC oppose transfer of venue. For the reasons set for below, the Court denies the motion to dismiss and grants the motion to transfer.

I. Background

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