deREYES v. MARINE MGMT. & CONSULTING LTD.

568 So. 2d 128, 1990 WL 51773
CourtLouisiana Court of Appeal
DecidedDecember 14, 1990
Docket90-C-0009
StatusPublished
Cited by2 cases

This text of 568 So. 2d 128 (deREYES v. MARINE MGMT. & CONSULTING LTD.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
deREYES v. MARINE MGMT. & CONSULTING LTD., 568 So. 2d 128, 1990 WL 51773 (La. Ct. App. 1990).

Opinion

568 So.2d 128 (1990)

Gladis Ondina Aguilera deREYES, et al.
v.
MARINE MANAGEMENT & CONSULTING LTD., et al.

No. 90-C-0009.

Court of Appeal of Louisiana, Fourth Circuit.

April 26, 1990.
On Rehearing September 11, 1990.
Writ Granted December 14, 1990.

Robert H. Murphy, Douglas L. Grundmeyer, William A. McLellan, Chaffe, McCall, Phillips, Toler & Sarpy, New Orleans, for relator.

Bruce Waltzer, Paul S. Weidenfeld, Michael G. Bagneris, Waltzer & Bagneris, New Orleans, for respondent.

Before SCHOTT, C.J., and KLEES and ARMSTRONG, JJ.

SCHOTT, Chief Judge.

On the application of Wallem Shipmanagement, Ltd., relator, we granted certiorari in order to review a judgment of the trial court overruling relator's exception of lack of personal jurisdiction. The issue is whether there are sufficient contacts between relator, a foreign corporation, and the forum to support the legal conclusion that relator is subject to the general jurisdiction of the trial court here in Louisiana.

This case arises out of an action filed by plaintiff in New Orleans, seeking damages under the Jones Act and general maritime law of the United States, for the wrongful death of her husband on the high seas. The decedent, a Honduran seaman, died of asphyxiation while working aboard the *129 M/V Brassie, which was en route to Vancouver, Canada. Plaintiff, also a Honduran, filed this action for damages against several defendants, one of whom is relator, a Hong Kong corporation. Wallem was hired to manage the M/V Brassie by her owner Mamby Shipping, a Panamanian corporation.

According to relator's director, Patrick Taylor, relator was "to make the ship operate, supply the crew necessary (sic), arrange insurances, and generally arrange for the technical management of the ship as against the commercial management." This included responsibility for the maintenance and upkeep of the vessel. To accomplish this, relator had to supply a crew for the ship which resulted in relator's involvement with Louisiana. Relator's home office in Hong Kong hired Marine Consulting and Management (MCM) of New Orleans, Louisiana, to act as its crewing agent since MCM had could more readily recruit seamen there and had more connections in Honduras. Most of the time relator would issue crewing instructions to MCM by telex. Sometimes, however, it would send crewing orders through its affiliate field office located in New Orleans which would pass the orders on to MCM. Source of the crewing orders was always relator's Hong Kong office.

Relator's office in New Orleans was a specialized field office staffed by four people, two of whom were supervisory personnel. That office would carry out technical instructions and service and repair all technical problems occurring on any ship managed by relator and located in this hemisphere. The office maintained a bank account to pay for local operating costs incurred while doing business in New Orleans.

A Louisiana Court may exercise personal jurisdiction over a nonresident defendant under the conditions of the state's "long-arm" statute, LSA-R.S. 13:3201. Section (B) of the statute authorizes the exercise of personal jurisdiction over a nonresident to the limits allowed by constitutional due process. Superior Supply Co. v. Associated Pipe and Supply Co., 515 So.2d 790, 792 (La.1987). In deciding whether the long arm statute applies, the court must first determine whether it is being called upon to assert specific or general jurisdiction over the defendant. Specific jurisdiction attaches when the cause of action itself arises out of the defendant's activities within the forum state. While plaintiff argues that specific jurisdiction applies in this case we are not persuaded by this argument and conclude that personal jurisdiction may be gained only by way of general jurisdiction. For general jurisdiction to attach, due process considerations require that there be sufficient contacts between the forum state and the foreign defendant. The nature of the contacts must constitute continuous and systematic general business contacts, such as the type of contacts found to exist in Perkins v. Benquet Consolidated Mining Co., 342 U.S. 437, 72 S.Ct. 413, 96 L.Ed. 485 (1952).

In Perkins the Court specifically addressed the issue of subjecting a foreign corporation to the jurisdiction of the court when the cause of action does not arise within the forum or relate to the business or activities of the corporation within the forum state. It involved the exercise of jurisdiction by Ohio over a Philippine mining corporation. The corporation conducted its operations in the Philippines until it was forced to leave due to the Japanese occupation of that country during World War II. The general manager and principal stockholder of the corporation returned to Ohio where he maintained an office. The office files and bank accounts were kept in Ohio, and several directors' meetings took place there. From the Ohio office, correspondence was sent, and the general manager supervised the rehabilitation of the corporation's Philippine properties.

In upholding jurisdiction over the foreign corporation, the court reasoned that the essence of the exercise of jurisdiction is fairness to the defendant: "The amount and kind of activities which must be carried on by the foreign corporation in the state of the forum so as to make it reasonable and just to subject the corporation to the jurisdiction of that state are to be determined *130 in each case." Perkins, 72 S.Ct. at 418. Consideration of the circumstances is determinative and jurisdiction is inappropriate when the foreign defendant has no contacts, ties or relations with the forum state.

Helicopteros Nacionales De Columbia, S.A. v. Hall, 466 U.S. 408, 413, 104 S.Ct. 1868, 1872 & 1875, 80 L.Ed.2d 404 (1984), involved a helicopter accident in Peru, in which four United States citizens were killed. Neither the decedents nor their survivors, who filed suit in Texas, were Texas domicilliaries. Defendant, a Columbian corporation which owned the helicopter, was providing transportation for the decedents. They were employees of a Peruvian consortium which was the alter ego of a joint venture whose headquarters was in Houston, Texas. The Supreme Court held that Texas could not exercise personal jurisdiction over defendant because its contacts with Texas were not continuous or systematic. Its contacts consisted of sending its chief executive officer to Houston for a contract negotiation session; accepting into its New York bank account checks drawn on a Houston bank; purchasing helicopters, equipment, and training services from Bell Helicopter for substantial sums; and sending personnel to Bell's facilities in Fort Worth for training. All of this interchange resulted from only one purchase agreement for a fleet of helicopters.

The contacts between the defendant and the forum in the present case are more like those in Perkins than in Helicopteros. First, relator operated a physical office in New Orleans for approximately two years. This office provided technical supplies and repairs for this entire hemisphere. Although this office was initially instructed by the Hong Kong office, it conducted extensive business activity using Louisiana as its port of entry and exit and its hub where business was conducted and records were kept.

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Related

De Reyes v. Marine Mgt. and Consulting
586 So. 2d 103 (Supreme Court of Louisiana, 1991)
Dereyes v. Marine Mgmt. & Consulting, Ltd.
571 So. 2d 638 (Supreme Court of Louisiana, 1990)

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568 So. 2d 128, 1990 WL 51773, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dereyes-v-marine-mgmt-consulting-ltd-lactapp-1990.