GRUPO HGM Tecnologias Submarina, S.A. v. Energy Subsea, LLC

CourtCourt of Appeals for the Eleventh Circuit
DecidedJanuary 18, 2023
Docket22-10425
StatusUnpublished

This text of GRUPO HGM Tecnologias Submarina, S.A. v. Energy Subsea, LLC (GRUPO HGM Tecnologias Submarina, S.A. v. Energy Subsea, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GRUPO HGM Tecnologias Submarina, S.A. v. Energy Subsea, LLC, (11th Cir. 2023).

Opinion

USCA11 Case: 22-10425 Document: 34-1 Date Filed: 01/18/2023 Page: 1 of 17

[DO NOT PUBLISH] In the United States Court of Appeals For the Eleventh Circuit

____________________

No. 22-10425 Non-Argument Calendar ____________________

GRUPO HGM TECNOLOGIAS SUBMARINA, S.A., Plaintiff-Appellee, versus ENERGY SUBSEA, LLC, ODDGEIR INGVARTSEN,

Defendants-Appellants,

INGVARTSEN AS, et al.,

Defendants. USCA11 Case: 22-10425 Document: 34-1 Date Filed: 01/18/2023 Page: 2 of 17

2 Opinion of the Court 22-10425

Appeal from the United States District Court for the Southern District of Alabama D.C. Docket No. 1:18-cv-00430-JB-N ____________________

Before JORDAN, NEWSOM, and BRANCH, Circuit Judges. PER CURIAM: This case arises from a contract dispute over salvaging plane wreckage from the ocean floor. Energy Subsea, LLC (Energy) ap- peals after a bench trial that resulted in a damages award to Grupo HGM Tecnologias Submarina (Grupo). Energy and its managing member, Oddgeir Ingvartsen, challenge five aspects of the district court’s order: They assert (1) that they did not breach their con- tract with Grupo, (2) that they did not commit fraud, (3) that En- ergy was not Ingvartsen’s alter ego, and (4) that they did not owe attorney’s fees to Grupo. Ingvartsen separately argues, for the first time on appeal, (5) that he was denied a fair trial when his counsel had to participate via video during the COVID pandemic. We af- firm the district court in all respects and deny Ingvartsen’s request for a new trial. I In July and August 2017, two small jets crashed into the sea off the coast of Venezuela while carrying high-ranking Venezuelan government officials. The Venezuelan Civil Authority hired USCA11 Case: 22-10425 Document: 34-1 Date Filed: 01/18/2023 Page: 3 of 17

22-10425 Opinion of the Court 3

Grupo to locate and recover the two planes. Grupo is a Panama- nian company with its principal place of business in Venezuela. An Energy employee who used to work for Grupo approached Grupo’s current management and offered to provide the necessary equipment and perform the work. Energy is a Florida-incorpo- rated LLC that operates from Mobile, Alabama. Grupo and Energy then negotiated a contract for $650,000; Grupo would pay $450,000 up front and $200,000 after the first 30 days of operation, alongside other fees and charges for additional work. The parties agreed that mobilization would begin as soon as they exchanged the first pay- ment. The parties soon realized that it would be difficult to transfer money from Venezuela to the United States. Oddgeir Ingvartsen was Energy’s managing LLC member, and he suggested using an- other company that he owned in Norway, Ingvartsen AS, to trans- fer funds through a European bank account to Energy. Grupo then signed another contract with Ingvartsen AS. Grupo wired the $450,000, and Ingvartsen AS transferred appropriate amounts to Energy and other companies to perform the job. Energy stated in an email to Grupo that it would have a ves- sel ready within five days of the first payment and that transit to Venezuela would take seven days, for a total of twelve days until arrival. Energy also represented that it was 90% sure that it would charter a vessel from another company called Laborde Marine. In reality, Ingvartsen opened the Energy bank account with only $100 just days before the transaction with Grupo. Ingvartsen also had USCA11 Case: 22-10425 Document: 34-1 Date Filed: 01/18/2023 Page: 4 of 17

4 Opinion of the Court 22-10425

not contacted Laborde Marine, had never hired one of its vessels, and did not obtain a quote from that company until May of the following year. A few weeks later, Energy told Grupo that the U.S. govern- ment had routed many vessels to assist with recovery from Hurri- cane Maria, creating difficulties for their project. They sent only sonar equipment and a team to use it, leaving Grupo to provide a vessel and other support equipment. Energy returned $100,000 of the original contract price to cover Grupo’s costs. This transaction only covered part of the contracted work—localizing the lost air- craft—and the rest of the recovery work remained. A few weeks later, Ingvartsen demanded an additional $200,000 from Grupo to charter a vessel. Though the contract did not require it, Grupo acquiesced. Still Energy did not perform. Grupo asked for some of its money back. In response, Ingvartsen presented an invoice for the side-scan sonar work it had already provided, showing well above the pricing that the contract quotes originally indicated.1 A few months later in January 2018, Ingvartsen again de- manded more money to charter a vessel. Grupo again complied, wiring about $256,000 to Energy. In February, Ingvartsen again asked for more money. Grupo delivered it in the form of fuel,

1The district court omitted $25,000 for sonar mobilization, but this omission has no effect on its conclusion of fact that the December 9, 2017 invoice from Ingvartsen AS far exceeded their original quotes for the work. USCA11 Case: 22-10425 Document: 34-1 Date Filed: 01/18/2023 Page: 5 of 17

22-10425 Opinion of the Court 5

which Energy promptly sold for $359,260. Energy still did not per- form. Finally, Grupo chartered another company’s vessel. Grupo sued for breach of contract, fraud, and unjust enrich- ment, and alleged that Ingvartsen had used Energy as his alter ego. Grupo won a damages award of $3,575,138.90 after a bench trial. The district court held that Oddgeir Ingvartsen had treated Energy and Ingvartsen AS like alter egos, so he and Energy were jointly and severally liable for breach of contract and fraud. 2 II Following a bench trial, we review the district court’s find- ings of fact for clear error and its conclusions of law de novo. Crys- tal Ent. & Filmworks, Inc. v. Jurado, 643 F.3d 1313, 1319 (11th Cir. 2011). We have maritime jurisdiction over a contract “for hire ei- ther of a ship or of the sailors and officers to man her.” Kossick v. United Fruit Co., 365 U.S. 731, 735 (1961); see also U.S. Const. art. III, § 2, cl. 1 (extending federal judicial power to “all Cases of admi- ralty and maritime jurisdiction”); 28 U.S.C. § 1333(1) (granting fed- eral district courts original jurisdiction over “[a]ny civil case of ad- miralty or maritime jurisdiction”). We may exercise supplemental jurisdiction over state-law claims that comprise “part of the same case or controversy” as admiralty-contract claims. 28 U.S.C. § 1367. Alternatively, claims relying on state law in this case are

2 The district court dismissed the unjust-enrichment claim on the ground that it was unavailable because the plaintiff “ha[d] an adequate remedy for breach of contract.” The parties do not raise this claim on appeal. USCA11 Case: 22-10425 Document: 34-1 Date Filed: 01/18/2023 Page: 6 of 17

6 Opinion of the Court 22-10425

covered by the grant of diversity jurisdiction because the amount- in-controversy here exceeds $75,000 and Grupo is a foreign corpo- ration. 28 U.S.C. § 1332(a)(2). III Energy and Ingvartsen raise five challenges to the district court’s order.

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GRUPO HGM Tecnologias Submarina, S.A. v. Energy Subsea, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grupo-hgm-tecnologias-submarina-sa-v-energy-subsea-llc-ca11-2023.