New Jersey federal judge enforces contract clause, sending utility dispute over Hurricane Isaias repairs to Ohio
NEWARK, NJ – A federal judge in New Jersey has ordered that a contract dispute between Primoris T&D Services, LLC and FirstEnergy Corp. be transferred to an Ohio federal court, citing a binding forum selection clause in the companies’ agreement.
U.S. District Judge Julien X. Neals ruled that the lawsuit — originally filed in New Jersey — must proceed in the Northern District of Ohio, as stipulated in the purchase order governing the parties’ storm restoration work. The judge granted FirstEnergy’s motion to transfer venue and denied its motion to dismiss as moot.
Key Points
- Primoris sued FirstEnergy over payments tied to storm repair work after Hurricane Isaias.
- Judge Julien Neals ruled the case belongs in Summit County, Ohio, per the contract’s forum clause.
- The motion to dismiss was denied as moot after the transfer order.
Dispute over Hurricane Isaias restoration contract
Primoris, a Texas-based construction firm specializing in electrical and telecommunications infrastructure, entered into an agreement in 2018 to provide storm restoration services for FirstEnergy’s subsidiaries in several states, including New Jersey. The work was performed to repair extensive power damage following Hurricane Isaias.
According to court documents, the parties’ purchase order included specific provisions on labor rates and a governing law clause that required all disputes to be resolved under Ohio law and litigated in Summit County.
When the companies’ relationship later soured over alleged payment and contract performance issues, Primoris filed suit in New Jersey federal court. FirstEnergy, headquartered in Akron, moved to transfer the case, arguing that the contract’s forum selection clause clearly required litigation in Ohio.
Forum clause enforced
Judge Neals agreed, stating that the contractual language was “broad and unequivocal,” leaving no basis for the case to remain in New Jersey. The ruling sends the dispute to the U.S. District Court for the Northern District of Ohio, Eastern Division.
The decision emphasizes the enforceability of forum selection provisions in multi-state commercial agreements — particularly when both parties are sophisticated corporate entities.
The case will now continue in Ohio, where FirstEnergy and its subsidiaries are based. No trial schedule has been set.
