Keystone Technologies’ Motion to Dismiss Lacks Merit, Signify Argues
As your humble editor reads the motion from Signify, B&B is acting as a stocking rep—nothing more, nothing less. The question boils down to whether a stocking rep constitutes a regular and established place of business.
Keystone Technologies, LLC filed a Motion to Dismiss in the Northern District of Georgia in August. Signify Holding B.V., in a motion filed on 28 OCT, believes the motion should be denied, arguing that Keystone’s presence in the district is substantial and well-documented. Although Keystone has Pennsylvania roots, it has long established a significant footprint in Georgia. Keystone’s leased and dedicated shelf space in its stocking representative’s warehouse, Bishop & Brogdon, functions as a major hub for storing, selling, and delivering products throughout the Southeast.
Signify contends that Keystone’s operations in Atlanta constitute a regular and established place of business. Under Federal Circuit law, Keystone’s leased space and control over its inventory in the Atlanta facility meet the necessary criteria for venue in the district. The facility serves as a fulfillment center for Keystone’s Southeast operations, and the company exercises clear control over its products stored there.
Background on Keystone’s Southeast Operations
Keystone’s website states that Keystone operates “21 distribution centers across the nation,” including one in Atlanta, Georgia. Keystone partners with Bishop & Brogdon to provide warehousing, fulfillment, and regional sales support in Georgia and surrounding states.
Through a formal agreement, Keystone designates B&B as its “sales arm” in the Southeast, granting B&B the right to market and promote Keystone products. However, Keystone retains ownership of all products stored at the Atlanta warehouse until sold. B&B acts as Keystone’s agent, receiving and processing orders on behalf of Keystone. Keystone sets the terms, prices, and even the packaging and shipping guidelines for all products sold in the region.
Keystone’s Control Over Bishop & Brogdon Operations
Signify’s filing highlights Keystone’s extensive control over B&B’s activities. Keystone limits B&B’s sales territory to the Southeast and specifies which customers they may serve. Moreover, Keystone controls the pricing of all products sold through B&B, providing training modules to ensure consistency in sales practices. Keystone also directs B&B in warehousing and order fulfillment, specifying packaging and shipping standards and preferred carriers.
Keystone’s inventory occupies approximately 5,000 square feet in the Atlanta warehouse. This arrangement includes a dedicated shelving system, which allows Keystone to inspect, count, and manage its inventory on-site.
Keystone’s Public Representation and Customer Perception
Before submitting its Motion to Dismiss, Keystone frequently advertised its Atlanta operations. The company’s blog posts have highlighted the Atlanta center as part of its distribution network. Customers in the Northern District often direct orders and communications to Keystone at the Atlanta address, further underscoring Keystone’s local presence. Several clients mistakenly assumed that B&B employees work directly for Keystone, illustrating the perception that the Atlanta location functions as part of Keystone.
Legal Justification for Denying the Motion
According to 28 U.S.C. § 1400(b), venue is proper if the defendant has a “regular and established place of business” in the district. Signify argues that the Atlanta warehouse meets these criteria. Though operated by B&B, the facility serves as an integral part of Keystone’s distribution network in the Southeast. Signify emphasizes that Keystone’s control over the Atlanta operations renders it a “place of Keystone” under legal precedent.
Signify asserts that Keystone’s substantial activities in the Northern District of Georgia support the case proceeding in this venue. Keystone’s arguments to distance itself from its Atlanta operations contradict its established practices. The Court should deny Keystone’s Motion to Dismiss and allow the case to move forward in the Northern District of Georgia.
Read EdisonReport’s previous article on this subject: Keystone Fights Back: Georgia Salesman Location Sparks Venue Dispute