Bass v. Energy Transportation Corp.

787 F. Supp. 530, 1992 A.M.C. 2325, 1992 U.S. Dist. LEXIS 3671, 1992 WL 59071
CourtDistrict Court, D. Maryland
DecidedMarch 24, 1992
DocketCiv. K-91-1283
StatusPublished
Cited by5 cases

This text of 787 F. Supp. 530 (Bass v. Energy Transportation Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bass v. Energy Transportation Corp., 787 F. Supp. 530, 1992 A.M.C. 2325, 1992 U.S. Dist. LEXIS 3671, 1992 WL 59071 (D. Md. 1992).

Opinion

FRANK A. KAUFMAN, Senior District Judge.

On May 9, 1991, Bass instituted this suit against Energy Transportation Corporation (ETC) 1 under the Jones Act, 46 U.S.C.App. 688 (1988) and under general admiralty law for injuries which Bass sustained on board one of ETC’s vessels, the S.S. LNG Aquarius, while employed by ETC as an unlicensed seaman. Plaintiff alleges that on February 11, 1989, when the S.S. LNG Aquarius was off the coast of Japan, he fell on his back while climbing down towards the deck, because the valve hand-wheel which he was gripping suddenly and *531 unexpectedly came loose from the valve bonnet. Plaintiff claims that the sole cause of his accident was ETC’s negligence and failure to provide a safe and seaworthy vessel for its employees. ETC, responding to plaintiffs complaint, seeks dismissal because of lack of personal jurisdiction and/or of service, or alternatively, transfer pursuant to 28 U.S.C. § 1406(a) to the United States District Court for the Southern District of New York. Subsequently, the parties agreed that limited discovery concerning the issue of personal jurisdiction would be conducted, and that plaintiffs service of its within complaint upon ETC’s resident agent in Delaware constituted appropriate and sufficient service. Accordingly, the sole issue now pending in this case is whether this Court has personal jurisdiction over ETC. 2 “When a court’s personal jurisdiction is properly challenged by a Rule 12(b)(2) motion, the jurisdictional question thus raised is one for the judge, with the burden on the plaintiff ultimately to prove the existence of a ground for jurisdiction by a preponderance of the evidence.” Combs v. Bakker, 886 F.2d 673, 676 (4th Cir.1989) (citations omitted). See also McNutt v. General Motors Acceptance Corp., 298 U.S. 178, 189, 56 S.Ct. 780, 785, 80 L.Ed. 1135 (1936).

FACTS 3

ETC, a closely held corporation with no resident Maryland shareholders, is in the business of shipping liquid natural gas between Indonesia and Japan. ETC’s vessels do not travel, and never have traveled, to or from the State of Maryland. Nor has ETC ever had any offices, sales representatives, employees or agents located in Maryland. ETC is not registered or qualified to do business in Maryland, does not operate or manage any ships in Maryland, and has no real or personal property, telephone listings, or bank accounts in Maryland. ETC has never filed suit in, or been held subject to the jurisdiction of, any state or federal court located in Maryland, has never authorized an agent to accept service of process in Maryland, and has never paid taxes to the State of Maryland. ETC has never solicited any, or advertised its, shipping business in Maryland. ETC hires all of its licensed marine personnel through the Marine Engineers’ Benefit Association (MEBA), headquartered in Jersey City, New Jersey, either by reviewing resumes placed on file in ETC’s New York office or by contacting the MEBA office in New Jersey.

ETC’s only contact with Maryland is through its collective bargaining agreement and its fifteen-year ongoing relationship with the Seafarer’s International Union (SIU),- which maintains its principal office in Camp Springs, Maryland, and its “manpower pool” and training center at Piney Point, Maryland. ETC first entered into a collective bargaining agreement with SIU in 1976 or 1977. Although apparently not bound in each and every circumstance to hire all of its unlicensed personnel 4 pursuant to that agreement, ETC recognized SIU in that agreement as the “sole and exclusive bargaining representative of all Unlicensed Personnel employed on board and [sic] all American flag vessels now owned or operated by [ETC].” 5 Moreover, since 1977 ETC has in fact hired all of its unlicensed seamen through SIU. In turn, SIU under the agreement agreed to fill all of ETC’s hiring needs. 6 The collective bar *532 gaining agreement is quite extensive and sets forth details of ETC’s employment relationship with its unlicensed seamen, including selection of personnel, wages, hours, medical benefits, working conditions, job descriptions and grievance procedures.

Typically in ETC’s hiring process of unlicensed personnel, the ETC marine personnel office telephones to the SIU manpower pool in Piney Point, Maryland, at the beginning of each month and states ETC’s anticipated needs for unlicensed crew for the next month. 7 The SIU manpower pool then recruits SIU seamen from all over the United States to fill ETC’s hiring needs. 8 Within a week, the SIU manpower pool calls the ETC marine personnel office in New York with the names of seamen who will fill ETC’s crew needs for the next month. 9 ETC forwards the identities of the seamen to its travel agent in New York City, which contacts the seamen directly to arrange for their transportation to Japan. 10 Pursuant to that hiring procedure, plaintiff Bass was dispatched from the SIU hiring hall in Norfolk, Virginia and was flown from Raleigh, North Carolina to Japan to board the LNG Aquarius. 11

Since 1977 until the present, the ETC-SIU agreement has been renegotiated and renewed every three years. 12 The negotiations for the agreements in 1984, 1987, and 1990 took place at Camp Springs, Maryland, or Piney Point, Maryland. 13 ETC and SIU spent a couple of months negotiating each new agreement. 14 Those negotiations entailed regular phone calls, letter exchanges and several personal visits by ETC personnel to Maryland. 15

The SIU not only provides unlicensed personnel for ETC, but also trains such personnel at Piney Point, Maryland. 16 After the training course is complete, each student seaman receives a certificate in the form of a seaman’s card. 17 Although not all of the seamen hired by ETC through SIU are trained in Maryland, a substantial number of them do receive certification from Piney Point. 18

Furthermore, ETC employees have visited the training center at Piney Point, Maryland to attend graduation ceremonies, to dedicate buildings for the training program, and to make monetary contributions. 19

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Bluebook (online)
787 F. Supp. 530, 1992 A.M.C. 2325, 1992 U.S. Dist. LEXIS 3671, 1992 WL 59071, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bass-v-energy-transportation-corp-mdd-1992.