CSX Transportation, Inc. v. Preussag International Steel Corp.

201 F. Supp. 2d 1228, 2002 U.S. Dist. LEXIS 8837, 2002 WL 1009177
CourtDistrict Court, M.D. Alabama
DecidedApril 23, 2002
DocketCIV.A. 01-D-1092-E
StatusPublished

This text of 201 F. Supp. 2d 1228 (CSX Transportation, Inc. v. Preussag International Steel Corp.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CSX Transportation, Inc. v. Preussag International Steel Corp., 201 F. Supp. 2d 1228, 2002 U.S. Dist. LEXIS 8837, 2002 WL 1009177 (M.D. Ala. 2002).

Opinion

MEMORANDUM OPINION AND ORDER

DE MENT, District Judge.

Before the court is a Motion To Dismiss which was filed by Defendant Stevedores, Inc. (“Stevedores”) on January 28, 2002. (Doc. No. 22.) In its Motion, Defendant challenges the court’s exercise of personal jurisdiction in the present matter. -Plaintiff CSX Transportation, Inc. (“CSX”) filed a Response to said Motion on February 1.3 (Doc. No. 27), and, after the court permitted limited discovery on the issue, CSX filed a Supplemental Response on March 15. (Doc. No. 81.) Stevedores filed a Reply on March 22. After careful consideration of the arguments of counsel, the relevant law, and the record as a whole, the court finds that Defendant’s Motion is due to be denied.

I. FACTS

Plaintiff filed the present diversity action under various contract and tort theories after one of its cargo trains derailed shortly before reaching its destination of Auburn, Alabama. The alleged cause of the derailment was related to the “improper loading, fastening, stowing and/or securing of ... steel coils in and onto Plaintiffs” rail cars. (Comply 14.) At the time of the derailment, Plaintiff was transporting the cargo of steel coils on behalf of *1230 Defendant Preussag International Steel Corporation (“Preussag”). In addition to Preussag, the present action also seeks legal remedies from Defendant Stevedores, the corporation responsible for loading the cargo in question, and from Defendant Intraha Shipping, Inc., the corporation serving as the intermediary between Stevedores and Preussag. (Id. at 8-14.) None of the parties are Alabama citizens. Indeed, arguing that Alabama’s interests are minimal, Stevedores has filed the present Motion asserting that the court’s exercise of jurisdiction would exceed the limits inherent in the Due Process Clause.

CSX and Stevedores have stipulated to the following series of facts in support of their competing arguments as to the propriety of the court’s exercise of jurisdiction. (Doc. No. 39.) For many years, Stevedores has engaged in the business of unloading cargo from ships in the Port of New Orleans and then loading such cargo onto trains. (Id. at 1-2.) Prior to accepting a particular assignment, Stevedores receives documentation detailing the cargo’s destination and its means of transport. (Id. at 4.) Stevedores does not decline work on the basis of this information; rather it accepts the work in accordance with the various different laws that might apply. (Id. at 3.) Recognizing that improper workmanship could lead to tort liability, Stevedores has procured liability insurance whose coverage applies to defense of claims in Alabama. (Id. at 6-7.) Indeed, when Stevedores agreed to load cargo onto Plaintiffs Alabama-bound train, it did so knowing that the work would involve neither the first nor the last cargo it handled that would pass through Alabama. (Id. at 2-4.)

Nonetheless, Stevedores points out that it is a Louisiana corporation registered to conduct business in New Orleans. (Doc. No. 24 at ¶ 1.) It owns no property in Alabama, has no agents in Alabama, and did no work in Alabama insofar as the present accident is concerned. (Id. at 2-4.) Moreover, Stevedores did not contract with any Alabama citizen in the underlying actions of the present lawsuit. (Id. at 5.) Indeed, all the work and the negotiating leading up to that work took place in the State of Louisiana. (Id. at 6.) Based on the foregoing facts, the court must determine whether Stevedores’ awareness that “if it failed to perform its work properly, it could be sued by those who suffered injury or damage,” in conjunction with its awareness that the cargo was destined for Alabama, constitutes a sufficient nexus with the State of Alabama so as to require Stevedores to defend itself in the present forum. For reasons to be discussed, the court answers the question in the affirmative.

II. DISCUSSION

The court’s power over one’s person derives from positive law and constitutional law. The Alabama long-arm statute authorizes personal jurisdiction to the fullest extent permitted by the United States Constitution. See Martin v. Robbins, 628 So.2d 614, 617 (Ala.1993). Accordingly, CSX’s burden of establishing a prima facie case of jurisdiction is satisfied to the extent that it demonstrates that the court’s exercise of jurisdiction would not offend due process. 1 The Due Process Clause *1231 protects one’s liberty interests by shielding the individual from binding judgments in a forum with which it has established no meaningful contacts, ties or relations. 2 Jurisdiction may be exercised over a defendant only where that Defendant has purposefully established minimum contacts within the forum state, and where the exercise of jurisdiction would comport with traditional notions of fair play and substantial justice. Burger King Corp. v. Rudzewicz, 471 U.S. 462, 476, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985).

A. Minimum Contacts

Stevedores’ only contacts with Alabama is the occasional passage of cargo it loads onto trains. The Eleventh Circuit follows a three-part test in analyzing whether such contacts with a given forum are sufficient to permit the assertion of jurisdiction:

First, the contacts must be related to the plaintiffs cause of action or have given rise to it. Second, the contacts must involve “some act whereby the defendant purposely avails itself of the privilege of conducting activities within the forum ..., thus invoking the benefits and protections of its laws.” Third, the defendant’s contacts with the forum must be “such that [the defendant] could reasonably anticipate being haled into court there.”

Vermeulen v. Renault U.S.A., Inc., 985 F.2d 1534, 1546 (11th Cir.1993) (internal citations omitted). It is undisputed that Stevedores loaded onto the CSX train the particular cargo which gave rise to the present cause of action. A more difficult question is whether handling such cargo with the knowledge that it will find its way into Alabama constitutes purposeful availment of the forum so as to invoke the benefits of Alabama law. Closely related to this discussion is whether Stevedores could have reasonably anticipated a lawsuit in Alabama on the basis of such contacts.

Courts have addressed these issues in cases involving the stevedore industry to conflicting results. Compare, e.g., Logwood v. Apollo Marine Specialties, No. 89-4785 Section “N”, 1992 WL 124812, 1992 U.S. Dist. LEXIS 7972 (E.D. La. June 4, 1992) (asserting jurisdiction over foreign stevedore) with Couch v. Cro-Marine Transp., 769 F.Supp. 285 (C.D.Ill.1991) (same). 3 To a large extent, the ful

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Bluebook (online)
201 F. Supp. 2d 1228, 2002 U.S. Dist. LEXIS 8837, 2002 WL 1009177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/csx-transportation-inc-v-preussag-international-steel-corp-almd-2002.