Amusement Equipment, Inc. v. Carl Heinz Mordelt, Heinz Mordelt Gmbh and Co. K.G. "Heimo", Defendants

779 F.2d 264, 1985 U.S. App. LEXIS 25639
CourtCourt of Appeals for the Fifth Circuit
DecidedDecember 31, 1985
Docket84-3571
StatusPublished
Cited by13 cases

This text of 779 F.2d 264 (Amusement Equipment, Inc. v. Carl Heinz Mordelt, Heinz Mordelt Gmbh and Co. K.G. "Heimo", Defendants) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amusement Equipment, Inc. v. Carl Heinz Mordelt, Heinz Mordelt Gmbh and Co. K.G. "Heimo", Defendants, 779 F.2d 264, 1985 U.S. App. LEXIS 25639 (5th Cir. 1985).

Opinion

GOLDBERG, Circuit Judge.

It all started out innocently enough with a contract to deliver a mechanical display elephant and four remote control cars. The German engineering of appellee Heimo Heinz Mordelt GMBH & Co. K.G. (“Heimo”) would boost the efforts of Florida’s Amusement Equipment, Inc. (“Amusement”) to amuse and entertain for profit. But where Hannibal’s elephants managed to cross the snowy Alps with relative ease, this elephant and its vehicular entourage had an unexpected layover in a London airport on the way to their new world. Thus, for want of a transatlantic flight, Amusement’s waiting truck left Florida for New Orleans without its prized quarry, which Amusement had hoped to display there at the convention of the International Association of Amusement Parks and Attractions (“IAAPA”), an Illinois corporation.

Heimo, however, is a member in good standing of the IAAPA, and its general manager, appellee Karl Heinz Mordelt (“Mordelt”) attended the convention. Perhaps with visions of Grace v. MacArthur 1 dancing through its corporate head, Amusement hunted Mordelt down, found him at the Marriot Hotel, served him and Heimo with process, and plunged the district court and us into the purgatory of transient jurisdiction. Finding that the rule of transient jurisdiction has suffered a fate akin to that of the once proud but now extinct dinosaurs, the district court, 595 F.Supp. 125, dismissed as to both defendants. Because we are unwilling, absent explicit instructions from above, to ferry this rule across the river Styx, we reverse and remand as to Mordelt. However, we find that jurisdiction over the corporation is not proper under Louisiana law, and we therefore affirm the district court’s dismissal of Heimo.

THE FACTS

During September of 1983, the owner of Amusement, John Bond, visited Heimo’s factory in West Germany and purchased some remote controlled boats for exhibition at an amusement industry trade show to be held in Jacksonville, Florida. Bond also discussed with representatives of Heimo the possibility of acquiring certain of Heimo’s products for exhibition at the Sixty-Fifth Annual Convention and Trade Show of the IAAPA, to be held in New Orleans from November 17 through 20, 1983.

Bond was satisfied with the Heimo equipment exhibited at the Florida trade show. Consequently, on October 25, 1983, Bond contacted Mordelt by telephone to procure additional products for exhibition at the New Orleans trade show. Amusement Equipment agreed to purchase from Heimo one animated display elephant, four remote controlled automobiles, and certain accessory equipment for a price of DM 37,130, which, at the time, equalled U.S. $14,- *266 295.00. Heimo understood that Amusement intended to display the products at the New Orleans trade show scheduled to begin on November 17, 1983. Amusement needed the products delivered to Miami in sufficient time before the trade show so that they could be transported by its truck to New Orleans. Accordingly, Bond demanded that the products be delivered to Miami by November 12, 1983. Heimo required prepayment before it would ship the merchandise overseas.

On November 3, 1983, Amusement sent Heimo a telex stating that payment had been made by wire transfer on November 2, 1983, but that such payment was conditioned upon delivery of the products in Miami by November 12, 1983. If delivery of the goods could not be accomplished by that time, Amusement directed that its order be cancelled and that the funds be returned. On November 4, 1983, Heimo telexed Amusement that if the funds were received by its bank by November 7, 1983, Heimo could “guarantee [compliance with Amusement’s] delivery requirements.” On November 7, 1983, Heimo learned from its bank that Amusement’s payment had been received. Heimo then arranged for the shipment of the merchandise by a German freight forwarder, Max Grunht, an independent contractor. Grunht received the merchandise at the Stuttgart Airport on November 9, 1983. Heimo directed that the goods be shipped to London on November 10, 1983, for immediate transfer to a Miami bound flight departing later the same day. Heimo telexed the shipping information to Amusement the same day. Also on November 9, 1983, Heimo sent Amusement an order confirmation, which provided that the merchandise was shipped C.I.F. “C.I.F.” is the same as “F.O.B.,” which means that title and the risk of loss passed to the purchaser upon delivery of the merchandise to the freight forwarder.

On November 12, 1983, Amusement telephoned Heimo that the merchandise had not yet arrived in Miami. Upon investigating the matter, Heimo learned that the airline departing London had refused to accept the shipment, since an earlier flight had been cancelled and freight from that flight had been given priority. The airline allowed the merchandise to remain in London without informing the freight forwarders, Heimo, or Amusement. Later on the 12th of November, Amusement telexed Heimo that the contract was cancelled and requested return of the funds. Heimo refused to return the funds.

Heimo is a member of the International Association of Amusement Parks and Attractions, the sponsor of the New Orleans trade show. Consequently, on November 20, 1983, Mordelt arrived in New Orleans to attend the show. Amusement alleges that Mordelt attended the show as a representative of Heimo. Thus, on November 21, 1983, Mordelt was personally served in New Orleans for himself and for his employer, Heimo.

Other than their presence at the trade show and their knowledge that Amusement needed the goods for display at the show, Mordelt and Heimo had no prior connection to New Orleans or Louisiana. They have no representatives of any sort in Louisiana, nor have they ever paid taxes to Louisiana. They have no assets in Louisiana, they have not advertised in any Louisiana news media, they are not listed in any Louisiana telephone directory, and they did not display any products at the trade show.

DISPOSITION BELOW

The district court assumed for the sake of argument that both Mordelt and Heimo had been properly served under both La. Code Civ.Proc. art. 6(1) 2 and the Louisiana Long-Arm Statute, La.Rev.Stat.Ann. § 13:3201. 3 Finding that the rule of tran *267 sient jurisdiction — under which a court gains personal jurisdiction over any defendant who has been served with process while present within the forum state—has, however, been fatally undermined by Shaffer v. Heitner, 438 U.S. 186, 97 S.Ct. 2569, 53 L.Ed.2d 683 (1977), the court proceeded to dispose of the jurisdictional question with a minimum contacts analysis under the Due Process Clause. This analysis produced the conclusion that both Mordelt and Heimo lacked those minimum contacts, without which the court’s assertion of jurisdiction would offend due process. 4

DISCUSSION

“[T]he power of a federal court entertaining a suit based on diversity of citizenship to exercise jurisdiction over the persons of non-resident defendants turns on two independent considerations.

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779 F.2d 264, 1985 U.S. App. LEXIS 25639, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amusement-equipment-inc-v-carl-heinz-mordelt-heinz-mordelt-gmbh-and-co-ca5-1985.