Maroc Fruit Board S.A. v. M/V Almeda Star
Maroc Fruit Board S.A. v. M/V Almeda Star
Opinion of the Court
Before the court is an emergency motion by Plaintiffs Maroc Fruit Board S.A. (“Maroc”) and Wafa Assurance, S.A. for an international antisuit injunction.
In brief, Plaintiffs commenced this action against Star Reefers Shipowning, Inc. (“Star Reefers”) and its vessel, the Almeda Star, in November 2011. Maroc enlisted Star Reefers and the Almeda Star to ship thousands of boxes of fruit from Agadir, Morocco, to New Bedford, Massachusetts. Star Reefers accepted the shipment on November 13, 2011.
When the Almeda Star arrived in New Bedford on November 23, 2011, Plaintiffs learned that a portion of the fruit had been contaminated by an oil leak aboard the vessel. They initiated this suit two days later, claiming damages of approximately $930,000 for oil contamination and $4,000 for short delivery of cargo.
The case proceeded to discovery, which has involved vigorous motion practice. On June 19, 2013, this court allowed Plaintiffs to amend their complaint to add a new claim against additional Defendants Gard P & I (Bermuda) Ltd. and Assuranceforeningen Gard-Gjensidig. Plaintiffs completed service of process on Star Reefers, in personam, on July 5, 2013, and Star Reefers filed an answer to the amended complaint on July 26, 2013. This answer for the first time asserted mandatory arbitration in London, England, as an affirmative defense.
According to the affidavit of Brad Gandrup, Jr., submitted in support of Plaintiffs’ motion, Star Reefers, acting through its London solicitor Kevin Sach, emailed arbitration demands on July 25, 2013.
Plaintiffs then filed this motion for an international antisuit injunction. They believe, based on prior experiences with Sach in unrelated matters involving different parties, that Star Reefers may ask the English Commercial Court to enjoin this litigation in favor of arbitration. Plaintiffs understand from their past experiences that Sach could apply ex parte for an injunction that could then issue within one or two days. The injunction could prohibit Plaintiffs from taking any action in this lawsuit. Star Reefers responds that it has done nothing before the English Commercial Court regarding this matter, though it acknowledges an intention to ask the U.S. District Court to stay proceedings against Star Reefers in favor of London arbitration.
Plaintiffs face a very high bar in seeking an international antisuit injunction: they are “rarely issued.”
The First Circuit has instructed the district courts to examine the totality of the circumstances.
The court concludes that Plaintiffs have made the threshold showing for an injunction. Certainly, both proceedings involve the same issues, namely, Star Reefers’ liability to Plaintiffs for the alleged oil contamination of the Almeda Star’s cargo. The parties’ similarity presents a closer question. Courts usually require only “substantial similarity” between the parties,
The court nevertheless recognizes Plaintiffs’ concerns. Plaintiffs have invested almost two years in this suit and undertaken extensive and costly discovery, often with stiff resistance from Star Reefers. The court “has a right — indeed, a duty — to preserve its ability to do justice between the parties in cases that are legitimately before it.”
ORDER
For the reasons stated, Plaintiffs’ Emergency Motion for Issuance of an International Antisuit Injunction [# 66] is DENIED WITHOUT PREJUDICE. Plaintiffs may renew their motion if warranted by future developments.
IT IS SO ORDERED.
. Gandrup Aff. ¶ 4 [# 68],
. Routhier Aff. ¶ 5 [# 70]; Sarraino Aff. ¶ 5[# 71],
. Gandrup Aff. Exs. A, B.
. Athina Invs. Ltd. v. Pinchuk, 443 F.Supp.2d 177, 180 (D.Mass. 2006).
. Quaak v. Klynveld. Peat Marwick Goerdeler Bedrijfsrevisoren, 361 F.3d 11, 16-17 (1st Cir. 2004).
. Id. at 19. In considering a motion for an international antisuit injunction, "district courts have no obligation to employ [the traditional four-part test for preliminary injunctions]." Id.
. Id. at 18.
. Id.
. Id. at 19.
. Id. at 18. "Comity” is an "elusive concept” referring to “the recognition which one nation allows within its territory to the legislative, executive or judicial acts of another nation, having due regard both to international duty and convenience, and to the rights of its own citizens or of other persons who are under the protection of its laws." Id. at 18-19 (quoting Hilton v. Guyot, 159 U.S. 113, 164, 16 S.Ct. 139, 40 L.Ed. 95 (1895)).
. In re Vivendi Universal, S.A. Sec. Litig., No. 02 CIV.5571 RJH HBP, 2009 WL 3859066, at *5 (S.D.N.Y. Nov. 19, 2009).
. Athina Invs. Ltd. v. Pinchuk, 443 F.Supp.2d 177, 180 (D.Mass. 2006) ("[Pjerfect identity of parties is not necessarily required to meet the threshold inquiry....”).
. See id. at 180-81 (finding sufficient similarity where parallel proceedings involved corporations and individuals with ownership interests in those corporations); In re Vivendi Universal, 2009 WL 3859066, at *5 (determining the "real parties in interest”).
. Athina Invs. Ltd., 443 F.Supp.2d at 181 (“To find otherwise would allow form to trump substance, an approach the Court of
. See Athina Invs. Ltd., 443 F.Supp.2d at 181 (citing cases where court faced direct threat to its jurisdiction).
. "A foreign action is considered 'interdictory' if it was instituted for the sole purpose of terminating an action in the United States.” Id. at 181 n. 4 (citing Gau Shan Co., Ltd. v. Bankers Trust Co., 956 F.2d 1349, 1356 (6th Cir. 1992)).
. See Laker Airways Ltd. v. Sabena, Belgian World Airlines, 731 F.2d 909, 927 (D.C.Cir. 1984) ("The mere filing of a suit in one forum does not cut off the preexisting right of an independent forum to regulate matters subject to its prescriptive jurisdiction.”).
. Id.
. Quaak v. Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren, 361 F.3d 11, 20 (1st Cir. 2004).
Reference
- Full Case Name
- MAROC FRUIT BOARD S.A. and Wafa Assurance, S.A. v. M/V ALMEDA STAR, Her Engines, Machinery, Tackle, Apparel, Appurtenances, etc., in rem, Star Reefers Shipowning, Inc., in personam, Gard P & I (Bermuda) Ltd., in personam, Assuranceforeningen Gard-Gjensidig, in personam
- Cited By
- 2 cases
- Status
- Published