Valspar Corporation was sued, along with Trinity Marine Products and others, in Plaquemines Parish, Louisiana, in connection with protective coatings that allegedly contributed to excessive corrosion on barges. The issue in this case is whether jurisdiction is proper in Louisiana for Valspar. Since Valspar has neither its principal place of business nor a principal business establishment there, the case should be sent to another jurisdiction, unless an exception applies.
One exception is when a defendant is jointly liable with a party for whom venue is proper. Plaintiffs argued that Valspar is jointly liable with other parties, but Valspar argued that those allegations are unsubstantiated with any facts.
In light of the Supreme Court's recent decision in the Twombly case to hold plaintiffs to somewhat more stringent pleading requirements, this is another case testing the propriety of a complaint that is not supported by sufficient factual allegations. While the remedy is simply transferring the case to a jurisdiction where venue is proper, the principle is similar, putting a reasonable burden on plaintiffs to sue in the right court using the right theories of liability.
Although the NAM and other business groups filed a motion to join as amici in support of Valspar, our motion was denied on December 21.