Bunge North America, Inc. v. Mickelson

CourtDistrict Court, E.D. Missouri
DecidedJanuary 28, 2022
Docket4:21-cv-00961
StatusUnknown

This text of Bunge North America, Inc. v. Mickelson (Bunge North America, Inc. v. Mickelson) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bunge North America, Inc. v. Mickelson, (E.D. Mo. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

BUNGE NORTH AMERICA, INC., ) ) Plaintiff, ) ) v. ) ) No. 4:21 CV 961 DDN DANIEL MICKELSON d/b/a SOURCE ) ENVIRONMENTAL AND ) AGRICULTURE; ) OAKLEY TRUCKING, INC.; and ) ARKANSAS LIME COMPANY, ) ) Defendants. )

MEMORANDUM AND ORDER This action is before the Court on the separate motions of defendants Oakley Trucking, Inc. and Arkansas Lime Company (movant-defendants) to dismiss Count 2 of the complaint under Fed. R. Civ. P. 12(b)(2) for lack of personal jurisdiction or, in the alternative, under Rule 12(b)(3) for improper venue, or under 28 U.S.C. § 1406(a) to transfer venue. (Docs. 10, 22.) The Court has subject matter jurisdiction over the action pursuant to 28 U.S.C. § 1332, due to the diversity of the parties’ citizenship and the amount in controversy. The parties have consented to the exercise of plenary authority by the undersigned United States Magistrate Judge under 28 U.S.C. § 636(c). For the reasons set forth below, defendant Oakley Trucking’s motion to dismiss is sustained and that of defendant Arkansas Lime is denied.

BACKGROUND Plaintiff Bunge North America, Inc., alleges the following in its complaint. Plaintiff Bunge, a New York corporation with its principal place of business in Missouri, is a participant in the domestic and global agricultural business. As part of its business, it “originates” soybeans to crush at its soybean processing facilities, including a facility in Destrehan, Louisiana (“the Destrehan facility” or “plaintiff’s facility”); the resulting soybean meal produced at plaintiff’s facility is used in various applications and is exported to foreign markets. Bunge uses bulk calcium carbonate limestone as an anti-caking mechanism in its manufacture of soybean meal. The calcium carbonate used by Bunge is procured for it by non-movant defendant Source Environmental and Agriculture, a Georgia entity; the calcium carbonate is manufactured by defendant Arkansas Lime Company, an Arkansas corporation; and it is transported from Arkansas Lime to plaintiff’s facility by defendant Oakley Trucking, Inc., an Arkansas corporation. Plaintiff regularly schedules shipments of calcium carbonate for delivery to the Destrehan facility twice a week, pursuant to a master purchase order (P.O.) between plaintiff and defendant Source Environmental. Among other terms, the P.O. contains a provision that, in the event of litigation, selects the substantive law to be applied and the forum for any judicial action arising out of the purchase order: 18. Governing Law. This Purchase Order shall be governed by the internal substantive laws of the State of Missouri, without regard to conflicts of law provisions. . . . Each party to this purchase order irrevocably submits to the jurisdiction of the United States District Court for the Eastern District of Missouri or the circuit courts located in St. Louis County, Missouri, and each party hereby waives, to the fullest extent permitted by applicable law, any objection to the laying of venue of any action arising out of this Purchase Order in such courts.

(Doc. 1-1 ¶ 18.) Relevant to the motions to dismiss is the language selecting the judicial venue for this action (“forum selection clause”). On or about August 18, 2020, Bunge received a delivery at the Destrehan facility of product purporting to be calcium carbonate, ordered under the P.O., procured by Source, manufactured by Arkansas Lime, and transported by Oakley Trucking. Bunge unloaded the product into the Destrehan facility and began using it in its soybean meal manufacturing process. Approximately one week later, on or about August 25, 2020, Bunge discovered that the product delivered to the facility on August 18 was not calcium carbonate, but calcium oxide. Calcium oxide is not acceptable in all countries where plaintiff sells its soybean meal and is “nonconforming” to many of plaintiff’s customers. Because it was manufactured with calcium oxide instead of calcium carbonate, the soybean meal produced at the Destrehan facility between August 18 and August 25, 2020, is alleged to have been “contaminated.” On August 25, 2020, upon discovery of the contaminated meal, Bunge ceased its soybean processing operations at that facility and ceased loading soybean meal onto oceangoing vessels there. Plaintiff Bunge put defendant Source on notice upon learning of the contamination. In addition, Bunge notified Source on September 17, 2020, that the delivered product was defective and nonconforming with plaintiff’s order and/or specifications, and that it would hold Source responsible for its damages. Bunge alleges upon information and belief that Source then put Arkansas Lime and Oakley Trucking on notice of the claim. Plaintiff Bunge alleges that, as a result of all three defendants’ actions and inactions, it suffered damages in excess of $1.6 million, which include lost production time, diminution in value of the contaminated meal, barge and vessel demurrage costs, lost value of the calcium carbonate that was mixed with the calcium oxide upon delivery, administrative fees, labor, attorneys’ fees, and costs. Plaintiff alleges three claims: breach of contract against defendant Source (Count 1); negligence against all defendants (Count 2); and breach of express and implied warranties against defendant Source (Count 3). In Count 2, plaintiff alleges defendant Oakley Trucking negligently used inaccurate destination information which caused calcium oxide to be delivered to Bunge’s facility; and it alleges defendant Arkansas Lime negligently failed to ensure that calcium carbonate was manufactured and delivered to plaintiff. Defendants Oakley Trucking and Arkansas Lime each moves to dismiss Count 2 for lack of personal jurisdiction or, in the alternative, for improper venue; in the further alternative they seek a transfer of venue. (Docs. 10, 22.) Relevant legal principles The movant-defendants argue the Court does not have personal jurisdiction over them. Personal jurisdiction over the parties “flows not from Art. III, but from the Due Process Clause. The personal jurisdiction requirement recognizes and protects an individual liberty interest. . . . Thus, the [ultimate] test for personal jurisdiction requires that the maintenance of the suit . . . not offend traditional notions of fair play and substantial justice.” Insurance Corp. of Ireland, Ltd. v. Compagnie des Bausites de Guinee, 456 U.S. 694, 702-03 (1982) (internal quotation marks and citations omitted). There are “two broad types of personal jurisdiction: specific jurisdiction and general jurisdiction. Specific jurisdiction refers to jurisdiction over causes of action that ‘arise out of’ or ‘relate to’ a defendant’s activities within a state. General jurisdiction, on the other hand, refers to the power of a state to adjudicate any cause of action involving a particular defendant, regardless of where the cause of action arose.” Lakin v. Prudential Sec., Inc., 348 F.3d 704, 707 (8th Cir. 2003) (citing and quoting Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 414 nn. 8-9 (1984); Burger King Corp. v. Rudzewicz, 471 U.S.

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326 U.S. 310 (Supreme Court, 1945)
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407 U.S. 1 (Supreme Court, 1972)
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)
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487 U.S. 22 (Supreme Court, 1988)
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Mark Myers v. Casino Queen, Inc.
689 F.3d 904 (Eighth Circuit, 2012)
Daimler AG v. Bauman
134 S. Ct. 746 (Supreme Court, 2014)
Dominium Austin Partners, L.L.C. v. Emerson
248 F.3d 720 (Eighth Circuit, 2001)
Lakin v. Prudential Securities, Inc.
348 F.3d 704 (Eighth Circuit, 2003)
Synthes, Inc. v. Emerge Medical, Inc.
887 F. Supp. 2d 598 (E.D. Pennsylvania, 2012)

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Bluebook (online)
Bunge North America, Inc. v. Mickelson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bunge-north-america-inc-v-mickelson-moed-2022.