Jose Carmona v. Leo Ship Management, Inc.
Opinion
Jose Carmona was injured while unloading cargo from a vessel docked outside Houston. He sued Leo Ship Management, Inc. ("LSM"), a foreign corporation that managed the ship. Noting that LSM had no control over the ship's ports of call, the district court dismissed for want of personal jurisdiction, holding that the company did not purposely avail itself of the privilege of conducting activities in Texas. We affirm in part, vacate in part, and remand.
I.
As a stevedore, Carmona was tasked with unloading cargo from the M/V Komatsushima Star in April 2014. While he was rigging a bundle of pipes in the ship's hold, the pipes fell and injured his ankle and lower leg.
LSM is a Philippine corporation with its principal place of business in Manila. None of its employees, officers, shareholders, or directors has ever resided in Texas, and the company does not own or rent property in the state. LSM solicits no business in Texas and has never contracted with a Texas resident to render performance there.
In 2009, LSM contracted with the owners of the M/V Komatsushima Star to serve as the ship manager. In that capacity, LSM supplied and supervised the crew and arranged for necessary repairs and maintenance to ensure compliance with the laws "of the places where [the vessel] trades." The contract was freely terminable with two months' notice. Under the agreement, LSM did not have an ownership interest in the ship and could not direct where it traveled, what it carried, or for whom it worked. Rather, the charterer or subcharterer possessed the sole authority to set the ship's course. Nonetheless, the agreement required the ship's owners and LSM "to maintain close communication with each other and [to] share relevant information regarding [the] ship's schedule" and "port information." In fact, LSM had advance notice that the ship would be docking in Texas to discharge the pipes.
Although a third party had loaded the pipes aboard the ship outside the United States, Carmona sued LSM in state court, claiming negligence under general maritime law and the Longshore and Harbor Workers' Compensation Act ("LHWCA").
See
The district court granted the motion, finding that LSM did not purposely avail itself of the benefits and protections of Texas. The court reasoned that because LSM had no control over the itinerary, any contact with the state was "merely fortuitous or random." This appeal followed.
II.
We review a ruling on personal jurisdiction
de novo
.
Sangha v. Navig8 ShipManagement Private Ltd.
,
There is personal jurisdiction if the forum state's long-arm statute extends to the nonresident defendant and the exercise of jurisdiction comports with due process.
Sangha
,
(1) whether the defendant has minimum contacts with the forum state, i.e., whether it purposely directed its activities toward the forum state or purposefully availed itself of the privileges of conducting activities there; (2) whether the plaintiff's cause of action arises out of or results from the defendant's forum-related contacts; and (3) whether the exercise of personal jurisdiction is fair and reasonable.
A.
For there to be minimum contacts, a defendant must have "purposefully availed himself of the benefits and protections of the forum state"
2
"such that he should reasonably anticipate being haled into court there."
3
That requirement is the "constitutional touchstone" of personal jurisdiction.
Burger King
, 471 U.S. at 474,
The parties do not dispute that LSM made contacts with the forum when the vessel, containing its employees, docked outside Houston. 4 Instead, they disagree as to (1) whether a defendant's contacts with a forum and the purposefulness of those contacts are independent inquiries and (2) if so, whether LSM's presence in Texas was purposeful.
1.
According to Carmona, knowing and voluntary entry into a forum state, coupled with commission of a tort inside that state, is sufficient to support specific jurisdiction, irrespective of whether the defendant purposely availed itself of the privilege of conducting activities there. Carmona posits that purposeful availment is analytically useful only in "effects" cases in which a defendant's
out-of-state
conduct inflicted injury within the forum. He suggests that in such cases, purposeful availment operates as a "conceptual tool" for determining whether the defendant's contacts with the forum "are such that he should reasonably anticipate" litigation there.
Burger King
, 471 U.S. at 474,
In most cases, the defendant's commission of a tort while physically present in a state will readily confer specific jurisdiction.
5
"Generally, the commission of an intentional tort in a forum state is a purposeful act that will satisfy the purposeful availment prong ...." 16 JAMES WM. MOORE ET AL. , MOORE'S FEDERAL PRACTICE § 108.42[3][a], at 108-70 (3d ed. 2019). Nonetheless, while recognizing that a defendant's physical entry into a forum "is certainly a relevant contact,"
6
the Supreme Court has never held that such presence is dispositive in the "minimum contacts" analysis.
7
Instead, the Court has stressed that "where the defendant
deliberately
has engaged in significant activities within a State, ... he manifestly has availed himself of the privilege of conducting business there."
Id.
at 475-76,
Purposeful availment is a constitutional prerequisite for jurisdiction, regardless of where the tortious conduct occurred. In
*195
Elkhart Engineering Corp. v. Dornier Werke
,
Similarly, in
Jones v. Petty-Ray Geophysical Geosource, Inc.
,
In an effort to show otherwise, Carmona cites
Burnham v. Superior Court of California
,
Invoking Moncrief Oil , Carmona yet insists that "[w]hen a nonresident defendant commits a tort within the state ... [,] that tortious conduct amounts to sufficient minimum contacts with the state" to allow the assertion of jurisdiction. 10 But nothing in that statement abrogates the constitutional requirement that a defendant deliberately make those contacts. Indeed, we began our analysis in Moncrief Oil by pronouncing that a defendant must "purposefully ... establish[ ] minimum contacts with the forum state." 11 And one of the corporate *196 defendants had done so. 12
In sum, a defendant's contacts with a forum and the purposefulness of those contacts are distinct-though often overlapping-inquiries. Although tortious conduct within a forum ensures the existence of contacts, see Moncrief Oil , 481 F.3d at 314, it does not always guarantee that such contacts were deliberate. Accordingly, LSM is subject to jurisdiction only if it has purposely directed its activities to the forum state or purposely availed itself of its protections.
2.
LSM purposely availed itself of Texas when its employees voluntarily entered the jurisdiction aboard the vessel. Although LSM had no control over the vessel's course, the ship management agreement contemplated that the ship would travel to locations throughout the world.
13
Moreover, the contract required the ship's owners "to maintain close communication with" LSM, "shar[ing] relevant information regarding [the] ship's schedule" and "port information." Notably, LSM received actual notice that the ship would be departing for Texas. Especially considering that the contract was freely terminable with two months' notice, LSM was hardly compelled to travel to Texas against its will. Rather, it made a deliberate choice to keep its employees aboard a ship bound for Texas. LSM thus purposely availed itself of the benefits and protections of the forum state because it reasonably should have anticipated being haled into court for torts committed there.
See
Burger King
, 471 U.S. at 474,
LSM misconstrues
Asarco, Inc. v. Glenara, Ltd.
,
We disagreed. In light of the "uncontroverted evidence negating the existence of any such contract," the defendants did not establish minimum contacts.
This case is plainly distinguishable from
Asarco
in that LSM engaged in purportedly tortious conduct while present in the forum state. Unlike the litigants in
Asarco
, the parties do not contest that LSM made
*197
forum contacts that gave rise to at least some of Carmona's claims.
Asarco
thus sheds little light on the question whether LSM purposely availed itself of Texas by allowing its agents to enter the forum and allegedly commit a tort therein. Additionally, the fact that LSM did not seek to abrogate its contract despite knowing that the ship was en route to Texas "impl[ies] an agreement ... to deliver cargo there."
LSM's reliance on
Nuovo Pignone, SpA v. STORMAN ASIA M/V
,
That by far is not the situation here. The location of the vessel was the product of neither compulsion nor surprise. Instead, with full knowledge of the intended destination, LSM deliberately permitted its employees to enter Texas. It may not now escape liability resulting from its considered commercial decision.
B.
For specific jurisdiction, Carmona's claims still must stem from LSM's contacts with Texas.
See
LSM concedes that most of Carmona's claims result from its conduct in Texas after the ship's arrival there. But it maintains that Carmona adduced no evidence showing that LSM's alleged failure to minimize cargo hazards or to take safety precautions occurred in Texas. Not so: Carmona averred that while the ship was docked in Texas, LSM's crewmember had inspected the pipe bundles but failed to ensure that they were properly stacked for discharge. When viewed in Carmona's favor, such allegations are sufficient to establish that those two claims arise out of LSM's forum contacts.
*198 Nevertheless, LSM presented undisputed evidence that a third party had stowed the pipes aboard the ship while it was outside the United States. Unlike Carmona's other allegations, the claim that the pipes were improperly stowed does not stem from LSM's activities in Texas. Instead, the alleged tortious conduct occurred outside the United States at the hands of a third party. As a result, the district court correctly dismissed, for want of personal jurisdiction, the claim of failure to load the pipes properly. 16
C.
Finally, we ask whether the exercise of personal jurisdiction accords "with traditional notions of fair play and substantial justice."
Sangha
,
The dismissal, for want of personal jurisdiction, of the claim that LSM negligently stowed the pipes is AFFIRMED. Dismissal of the remaining claims is VACATED and REMANDED for proceedings as needed. We express no view on what decisions the district court should make on remand or on what matters it may consider.
Sangha
,
Moncrief Oil Int'l Inc. v. OAO Gazprom
,
Burger King
,
See
Trois v. Apple Tree Auction Ctr., Inc.
,
We are aware of no example-and LSM has cited none-in which a court lacked jurisdiction under those circumstances.
Walden
,
See
Burger King
,
See
Burnham
,
See
Moncrief Oil
,
See
id.
at 311 (cleaned up). The other cases Carmona raises all recite that same test
ad nauseum
.
See
Streber v. Hunter
,
See
Moncrief Oil
,
For instance, the contract authorized LSM to incur necessary expenditures to ensure compliance with the "laws ... of the places where [the vessel] trades."
Nuovo Pignone
was abrogated on grounds not relevant here by
Water Splash, Inc. v. Menon
, --- U.S. ----,
The defendant at issue, Fagioli, never was physically present in the forum-an important distinction vis-à-vis LSM.
Carmona suggests that because he has raised only one
type
of claim-i.e., negligence-the court need not analyze specific jurisdiction on a claim-by-claim basis. But it matters not that Carmona's allegations all sound in negligence; the court must separately consider specific jurisdiction for each claim that arises from different forum contacts.
See
Seiferth
,
Reference
- Full Case Name
- Jose CARMONA, Plaintiff-Appellant, v. LEO SHIP MANAGEMENT, INCORPORATED, Defendant-Appellee.
- Cited By
- 109 cases
- Status
- Published