Action Embroidery Corp. v. Atlantic Embroidery, Inc.

Appellants Action Embroidery Corp. (“Action”) and Vanguard Industries East, Inc. (“Vanguard”) appeal the district court’s dismissal of their federal antitrust and state-law suit against Wolcott, Rivers, Wheary, Basnight & Kelly, P.C. (“Wol-cott”), a Virginia professional corporation, for lack of personal jurisdiction. We decide two questions of first impression. First, we hold that venue and personal jurisdiction are independent requirements under Section 12 of the Clayton Act. Second, we join our sister circuits and adopt the doctrine of “pendent personal jurisdiction.” We hold in this case that the federal district court has personal jurisdiction over the federal antitrust claims, and that it may, in its discretion, exercise pendent personal jurisdiction over the state-law claims contained in the same complaint.

I. Background

Action, Vanguard, and Atlantic Embroidery, Inc. (“Atlantic”) are all in the business of providing embroidery services to the United States Armed Forces. In 1999, the United States Department of the Navy solicited bids from embroidery companies. Vanguard and Atlantic both submitted bids, but the Navy awarded the contract to Spur Laundry and Cleaners, Inc.…