Fidelity Bank PLC v. Northern Fox Shipping N.V.

242 F. App'x 84
CourtCourt of Appeals for the Fourth Circuit
DecidedJuly 13, 2007
Docket06-1299
StatusUnpublished
Cited by25 cases

This text of 242 F. App'x 84 (Fidelity Bank PLC v. Northern Fox Shipping N.V.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fidelity Bank PLC v. Northern Fox Shipping N.V., 242 F. App'x 84 (4th Cir. 2007).

Opinion

PER CURIAM:

The defendants Eres N.V. Belgium (Eres) and Northern Fox Shipping N.V. (Northern Fox) appeal the voluntary dismissal of a complaint filed by Fidelity Bank PLC (Fidelity) against them for breach of contract and conversion. Eres and Northern Fox also appeal the forum non conveniens dismissal of the counterclaim that they filed against Fidelity. We affirm the Fed.R.Civ.P. 41(a)(2) dismissal of Fidelity’s complaint because we conclude that dismissal did not cause Eres and Northern Fox to suffer plain legal prejudice. While we also affirm the forum non conveniens dismissal of two of the three counts in the counterclaim, we vacate the district court’s dismissal of the count alleging the wrongful arrest of the TABORA, a cargo vessel. On the record before us, it is not possible to determine whether Nigeria provides an adequate alternative forum for adjudication of this claim. Moreover, the relevant public and private interest factors with respect to whether the wrongful arrest counterclaim is subject to a forum non conveniens dismissal require further consideration and weighing by the district court.

I.

In September 2002 Eres, a Belgian company, entered into a contract to sell 25,000 metric tons of bitumen to Chief Pius Akinyelure of Nigeria. The bitumen was shipped to Nigeria on the TABORA, a vessel owned by Northern Fox, a Netherlands Antilles company. The sale was financed by Fidelity, a Nigerian bank that held the bills of lading as security.

On October 30, 2002, the TABORA began unloading the bitumen by ship-to-ship transfer off the coast of Lagos, Nigeria. This work was stopped after only 3,740 tons were unloaded, allegedly because the TABORA and its crew were attacked by armed marauders. On December 23, 2002, Eres and Northern Fox notified Fidelity that it was unsafe to discharge the cargo to Lagos and requested the designation of an alternate port. Because Fidelity did not name an alternate port, the TABORA sat in international waters for 118 days. As a result, Eres and Northern Fox contend that demurrage and cargo heating charges of $32,000 per day accrued, totaling $3,776,000. Ultimately, Eres and Northern Fox put a lien on the bitumen and sold it for $2,800,000 in partial satisfaction of the unpaid charges.

Fidelity disputes the assertion that the TABORA and its crew were attacked by marauders. Instead, Fidelity contends that the ship was boarded by the Nigerian police after Chief Akinyelure, the purchaser of the bitumen, made an allegation of fraud against members of the TABORA’s crew. According to Fidelity, there is no reason why any police investigation should have prevented the TABORA from com *87 pleting delivery of the bitumen. In any case, on December 17, 2002, after the TAB ORA’s full cargo had not been unloaded, Fidelity filed an in rem action in the Federal High Court of Nigeria, seeking an order of arrest against the ship. Although an arrest order was issued, it was not served because the ship had left Nigerian waters. The Nigerian statement of claim (complaint) also names Eres and Northern Fox as in personam defendants, but they have never been successfully served.

On March 17, 2005, more than two years after the aborted delivery, Fidelity had the TABORA arrested in Curacao, Netherlands Antilles. Eres and Northern Fox had the arrest vacated the next day after convincing a Netherlands Antilles court that Fidelity’s claim was barred by the one-year statute of limitations, which was fixed by a bill of lading provision that incorporates the Hague Rules (rules adopted by the country from which the cargo was shipped, the Netherlands Antilles in this case). Specifically, the court concluded that Fidelity failed to show that it had lawfully initiated proceedings in Nigeria on its claim for non-delivery of cargo. After the Netherlands Antilles court vacated the Curacao arrest of the TABORA, Fidelity attempted to revive its 2002 Nigerian action. On March 23, 2005, Fidelity filed an application with the Federal High Court in Nigeria seeking reassignment of the case to a new Justice and the issuance of an order authorizing substituted service of process.

In the meantime, Fidelity learned that the TABORA had arrived in the Port of Baltimore. Thus, on March 31, 2005, Fidelity filed a verified complaint in the District of Maryland seeking a warrant for the arrest of the TABORA. The complaint also included claims for $8,871,076 in damages against Eres and Northern Fox for breach of contract and conversion. The warrant was issued and served on the same day the complaint was filed, but five days later, on April 5, 2005, the district court vacated the arrest. The district court concluded, like the Netherlands Antilles court, that the in rem claim was time-barred because Fidelity had not offered sufficient proof that it had a pending claim against Eres and Northern Fox in Nigeria or anywhere else.

On April 8, 2005, three days after the Baltimore arrest was vacated, the Federal High Court in Nigeria issued an ex parte order authorizing Fidelity to serve by courier outside the jurisdiction an amended statement of claim on Eres and Northern Fox. Fidelity promptly filed a motion asking the district court in Maryland to reconsider its order vacating the arrest of the TABORA. Fidelity argued that the recent order of the Nigerian court conclusively established that the Baltimore arrest had been timely and should therefore be reinstated. The district court denied Fidelity’s motion to reconsider on May 11, 2005. Fidelity then filed an interlocutory appeal that this court dismissed on October 3,2005.

In the meantime, on the same day (April 8, 2005) that the Nigerian court had revived Fidelity’s case in that country, Eres and Northern Fox answered Fidelity’s complaint in this action and asserted a counterclaim. In their three-count counterclaim, Eres and Northern Fox sought a declaratory judgment that Fidelity’s claims are time-barred, $200,000 in damages for wrongful arrest in Baltimore, and $1.5 million in demurrage costs on the original 2002 contract of carriage.

No discovery was conducted while this case was pending in the district court. A pretrial order was submitted that included lists of lay witnesses, experts, and exhibits. On September 23, 2005, Eres and Northern Fox filed a motion for summary judg *88 ment. While that motion was pending, Fidelity moved on October 12, 2005, to dismiss its complaint without prejudice pursuant to Fed.R.Civ.P. 41(a)(2) and to dismiss the entire action under the doctrine of forum non conveniens. Fidelity made this motion in district court immediately after this court dismissed its interlocutory appeal. The district court on December 9, 2005, granted Fidelity’s Rule 41(a)(2) motion to dismiss its complaint. In the same order the court dismissed Eres and Northern Fox’s entire counterclaim on forum non conveniens grounds. The district court concluded that the claims asserted in the counterclaim could be adjudicated in Nigeria where “Fidelity’s breach of contract claim, involving the same facts, is currently pending in a Nigerian court.” J.A. 757.

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Cite This Page — Counsel Stack

Bluebook (online)
242 F. App'x 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelity-bank-plc-v-northern-fox-shipping-nv-ca4-2007.