Benz v. Bulkfleet Marine Corp.

675 F. Supp. 19, 128 L.R.R.M. (BNA) 3032, 1987 U.S. Dist. LEXIS 12168, 1987 WL 26626
CourtDistrict Court, D. Maine
DecidedDecember 18, 1987
DocketCiv. No. 87-0100-P
StatusPublished

This text of 675 F. Supp. 19 (Benz v. Bulkfleet Marine Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benz v. Bulkfleet Marine Corp., 675 F. Supp. 19, 128 L.R.R.M. (BNA) 3032, 1987 U.S. Dist. LEXIS 12168, 1987 WL 26626 (D. Me. 1987).

Opinion

[20]*20MEMORANDUM OF DECISION AND ORDER ON PENDING MOTIONS

GENE CARTER, District Judge.

In this action, Plaintiff is suing Defendant Bulkfleet Marine Corporation (“Bulk-fleet”) for breach of contract and for slander. He is suing Defendant Seafarers’ International Union (“the Union”) under section 301 of the Labor Management Relations Act, 29 U.S.C. 185, for breach of the duty of fair representation as the result of its decision not to arbitrate Plaintiffs grievance with Bulkfleet.

Defendant Seafarers’ has filed a motion to dismiss the complaint for want of personal jurisdiction. Although so labeled, the motion and accompanying memorandum actually raise two separate issues — personal jurisdiction and venue — for in addition to setting forth traditional arguments related to its contacts with the forum state, Defendant also argues that it does not meet the requirements of 29 U.S.C. § 185(c) and, therefore, is not subject to suit in this district.

Section 185(c), while labeled as a jurisdiction provision, has consistently been construed to be a venue statute. See, e.g., Central Operating co. v. Utility Workers, 491 F.2d 245, 250 n. 6 (4th Cir.1974); Barefoot v. International Brotherhood of Teamsters, 424 F.2d 1001 (10th Cir.1970); Dixie Carriers v. National Maritime Union, 35 F.R.D. 365 (S.D.Texas 1964). Plaintiff argues that because Defendant did not recognize section 185(c) as a venue provision and argued it only under the rubric of jurisdiction, that it should not be considered to have raised adequately a venue defense. The Court finds, however, that Defendant, however inartfully, has brought to the Court’s attention the possibility that section 185(c) precludes the bringing of this case in this district and that that possibility should be seriously examined. Since Plaintiff did not respond to the 185(c) argument, but asserts generally in a footnote that the case law supports his position that venue is proper in Maine, the Court will permit him to brief the issue. The Court will also order Plaintiff to amend his May 1987 affidavit to state with specificity when the events in paragraph 9 are supposed to have taken place.

Personal Jurisdiction

The record before the Court shows that Defendant’s headquarters is in Maryland and that it has no union hall, office, officers, or agents permanently within the state of Maine. The Union does, however, represent members in Maine. These number less than twenty-five, out of a total membership of over twenty thousand. The members resident in Maine conduct some of their business with the Union, whether concerning grievances, insurance claims, or other Union matters, by mail and phone, and the Union conveys information to them in like fashion. Under the Union’s constitution there is a vice president in charge of “activities of all the points and personnel thereof on the Atlantic coast,” including Maine. The preamble to the constitution notes that its members are migratory.

Under the Maine long-arm jurisdictional statute, 14 M.R.S.A. § 704A, the doing of a number of enumerated acts in, or having an effect on Maine, may subject a defendant to jurisdiction in the state.1 Included among these acts are contracting to insure any person in the state and contracting to supply services within the state. Although the Union’s relationship to its Maine members might be squeezed uncomfortably into one of these two categories, the statute provides a broad residual category which appears more apt: “maintainpng] any other relationship to persons within the state which affords a basis for the exercise of jurisdiction by the courts consistent with the Constitution.” The Union has established an ongoing relationship with Maine residents, as part of which it represents them in labor-management relations. This relationship will make Defend[21]*21ant amendable to suit here as long as due process standards are met.2

The Supreme Court has repeatedly emphasized that due process requires that “a defendant’s conduct and connection with the forum State [must be] such that he should reasonably anticipate being haled into court there.” World-Wide Volkswagen v. Woodson, 444 U.S. 286, 297, 100 S.Ct. 559, 567, 62 L.Ed.2d 490 (1980). The Court explained this requirement for cases of specific jurisdiction3 in Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472-73, 105 S.Ct. 2174, 2182, 85 L.Ed.2d 528 (1985):

Where a forum seeks to assert specific jurisdiction over an out-of-state defendant who has not consented to suit there, this ‘fair warning’ requirement is satisfied if the defendant has ‘purposefully directed’ his activities at residents of the forum, Keeton v. Hustler Magazine, Inc., 465 U.S. 770, 774 [104 S.Ct. 1473, 1478, 79 L.Ed.2d 790] (1984), and the litigation results from alleged injuries that ‘arise out of or relate to’ those activities,’ Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408 [104 S.Ct. 1868, 80 L.Ed.2d 404] (1984).

The Court went on to say that “with respect to interstate contractual obligations, we have emphasized that parties who ‘reach out beyond one state and create continuing relationships and obligations with citizens of another state’ are subject to regulations and sanctions in the other state for the consequences of their activities.” Id. 471 U.S. at 473, 105 S.Ct. at 2182 (quoting Travelers Health Ass’n v. Virginia, 339 U.S. 643, 647, 70 S.Ct. 927, 929, 94 L.Ed. 1154 (1950).

Here, Plaintiff’s injury allegedly results from a breach of Defendant’s duty of fair representation, and it is Defendant’s representation of its members in Maine which provides the contact with Maine needed for application of the long-arm statute. The question then remains whether Defendant has purposefully directed its activities at residents of the forum. Defendant has tried to paint a picture of itself as operating exclusively outside the forum, asserting that its union halls and offices are outside the state, its collective bargaining agreements are with non-Maine employers, its members do not ship out of or receive payoffs in Maine, and its members’ voyages do not originate or terminate in Maine.4 Affidavit of Angus Campbell, May 6,1987. Finally, Defendant asserts that “if any member is a resident of the State of Maine, he or she must utilize a Seafarers’ Hiring Hall out of State and must also travel out of State to obtain any services from the Seafarers’ International Union, Atlantic, Gulf, Lakes and Inland Water District.” Id., ¶ 16. Plaintiff disputes this, and letters in the file from Defendant to Plaintiff in Maine concerning both his grievance and his health benefits support his analysis.

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Related

World-Wide Volkswagen Corp. v. Woodson
444 U.S. 286 (Supreme Court, 1980)
Keeton v. Hustler Magazine, Inc.
465 U.S. 770 (Supreme Court, 1984)
Helicopteros Nacionales De Colombia, S. A. v. Hall
466 U.S. 408 (Supreme Court, 1984)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Labbe v. Nissen Corp.
404 A.2d 564 (Supreme Judicial Court of Maine, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
675 F. Supp. 19, 128 L.R.R.M. (BNA) 3032, 1987 U.S. Dist. LEXIS 12168, 1987 WL 26626, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benz-v-bulkfleet-marine-corp-med-1987.