Beatty Caribbean, Inc. v. Viskase Sales Corp.

241 F. Supp. 2d 123, 2003 U.S. Dist. LEXIS 610, 2003 WL 136199
CourtDistrict Court, D. Puerto Rico
DecidedJanuary 10, 2003
DocketCIV.99-2345 (RLA)
StatusPublished
Cited by3 cases

This text of 241 F. Supp. 2d 123 (Beatty Caribbean, Inc. v. Viskase Sales Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beatty Caribbean, Inc. v. Viskase Sales Corp., 241 F. Supp. 2d 123, 2003 U.S. Dist. LEXIS 610, 2003 WL 136199 (prd 2003).

Opinion

ORDER DENYING MOTION TO DISMISS

ACOSTA, District Judge.

Defendant VISKASE SALES CORPORATION (“VISKASE”) has moved the Court to dismiss the claims asserted against it in these proceedings on three distinct grounds. These are: improper venue, lack of in personam jurisdiction and failure to state a claim upon which relief can be granted. The Court having reviewed the memoranda and documents submitted by the parties hereby finds as follows.

PROCEDURAL BACKGROUND

Plaintiff BEATTY CARIBBEAN, INC. (“BEATTY”) filed the instant complaint claiming that VISKASE is liable under Puerto Rico’s Law 75 of 1964, Tit. 10 Laws of P.R. Ann. § 278 et seq. (1997) because it unilaterally and without just cause terminated BEATTY’s right to distribute VIS-KASE’s products in the Dominican Republic. The complaint alleges, and defendant *125 so concedes, that the parties relationship is governed by a Distributor Agreement (“the Agreement”) entered into by BEAT-TY and VISKASE’s assignor, UNION CARBIDE CORPORATION, on May 20, 1983.

Pursuant to our standing order procedure for filing dispositive motions VIS-EASE filed a “Dispositive Motion Package”, which included its Motion to Dismiss Pursuant to Rule 12(b)(2), (3) and (6) of the Federal Rules of Civil Procedure (“VISKASE’s motion”), BEATTY’s opposition thereto, VISKASE’s reply and BEAT-TY’s sur-reply. Inasmuch as the parties have included matters outside the pleadings together with the aforementioned filing, to wit copies of the Agreement, Puerto Rico State Department Certifications, correspondence and an affidavit, pursuant to Rule 12(b)(6), Fed.R.Civ.P., the Court will treat Viskase’s motion to dismiss for failure to state a claim, as one for summary judgment, to be disposed of as provided by Rule 56 Fed.R.Civ.P. See Boateng v. Inter-American Univ., Inc., 210 F.3d 56 (1st Cir.2000).

VENUE

Defendant challenges venue in this jurisdiction and seeks dismissal in accordance with 28 U.S.C. § 1406(a) and Rule 12(b)(3) Fed.R.Civ.P. However, pursuant to 28 U.S.C. § 1391(a)(2) actions based on diversity jurisdiction such as the one presently before us may be brought in “a judicial district in which a substantial part of the events or omissions giving rise to the claim occurred”.

As further described below the issue present in this litigation arose from a commercial relationship that originated, subsequently developed and eventually partially concluded in Puerto Rico. Therefore, venue in this jurisdiction is proper inasmuch as there is a substantial connection between plaintiffs cause of action and this forum.

IN PERSONAM JURISDICTION

Defendant having challenged our authority to exercise personal jurisdiction it becomes plaintiffs burden to prove the necessary facts to establish that defendant is indeed amenable to judicial proceedings in this forum. Jet Wine & Sprits, Inc. v. Bacardi & Co., 298 F.3d 1, 7 (1st Cir.2002); Daynard v. Ness, Motley, Loadholt, Richardson & Poole, 290 F.3d 42, 50 (1st Cir.2002)

Absent an evidentiary hearing the court may determine in personam jurisdiction based on a prima facie review of the properly documented jurisdictional facts as presented by plaintiff. Jet Wine & Spirits, Inc., 298 F.3d at 7. “[I]n evaluating whether the prima facie standard has been satisfied, ‘the district court is not acting as a factfinder; rather, it accepts properly supported proffers of evidence by a plaintiff as true and makes its ruling as a matter of law.’ ” United States v. Swiss Am. Bank, Ltd., 274 F.3d 610, 619 (1st Cir.2001) (citing United Elec. Radio & Mach. Workers of Am. v. 163 Pleasant St. Corp., 987 F.2d 39, 43 (1st Cir.1993)). See also Daynard, 290 F.3d at 51 (court need not resolve disputed facts but rather accepts plaintiffs proffer in ascertaining adequacy of prima facie showing).

In diversity suits in personam jurisdiction over a non-resident defendant is determined according to the forum’s applicable statute, Jet Wine & Spirits, Inc., 298 F.3d at 7; Daynard, 290 F.3d at 51, which in this particular case is the Puerto Rico long-arm statute. Pizarro v. Hoteles Concorde Int’l, 907 F.2d 1256, 1258 (1st Cir.1990); Am. Express Int’l, Inc. v. MendezCapellan, 889 F.2d 1175, 1178 (1st Cir.1989); Rosich v. Circus & Circus Enter., Inc., 3 F.Supp.2d 148, 149 (D.P.R.1998).

*126 In pertinent part, the local long-arm provision reads as follows:

(a) Whenever the person to be served is not domiciled in Puerto Rico, the [courts] shall take jurisdiction over said person if the action or claim arises because said person:
(1) Transacted business in Puerto Rico ...; or
(2) Participated in tortious acts within Puerto Rico....

P.R. Laws Ann. tit. 32, app. Ill, Rule 4.7(a)(1983).

Rule 4.7 expressly mandates that the claim asserted in the complaint “arise” from the contacts of the non-domiciled defendant with the forum. Escude Cruz v. Ortho Pharm., Corp., 619 F.2d 902, 905 (1st Cir.1980). See also Redondo Constr. Corp. v. Banco Exterior de España, S.A, 11 F.3d 3, 5 (1st Cir.1993) (specific jurisdiction over defendant present inasmuch as claim resulted from defendant’s acts within forum); Am. Express, 889 F.2d at 1179 (defendant corporation’s activities within Puerto Rico unrelated to the causes of action asserted); Rosich, 3 F.Supp.2d at 150 (plaintiffs injuries must be “connected with defendant’s contacts with Puerto Rico”); Pou v. Am. Motors Corp., 127 D.P.R. 810, 819 (1991) (in personam jurisdiction requires minimum contacts with the forum and that the claim be related to or arises from those contacts).

In other words, there must be a causal relationship between the defendant’s activities within the forum and the claims asserted in the pleadings.

Whether certain events “arise out of’ a nonresident defendant’s actions within Puerto Rico is comparable or analogous to whether certain actions can be said to be the legal, or proximate cause of the injuries suffered by a plaintiff. This court has previously commented on the concept of legal causation.

Pizarro v. Hoteles Concorde Int’l,

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241 F. Supp. 2d 123, 2003 U.S. Dist. LEXIS 610, 2003 WL 136199, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beatty-caribbean-inc-v-viskase-sales-corp-prd-2003.