Gulf Winds International Inc v. Almanzar

CourtDistrict Court, S.D. Texas
DecidedSeptember 29, 2021
Docket4:20-cv-04136
StatusUnknown

This text of Gulf Winds International Inc v. Almanzar (Gulf Winds International Inc v. Almanzar) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf Winds International Inc v. Almanzar, (S.D. Tex. 2021).

Opinion

September 29, 2021 Nathan Ochsner, Clerk UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION

GULF WINDS § CIVIL ACTION NO. INTERNATIONAL INC, § 4:20-cv-04136 Plaintiff, § § § vs. § JUDGE CHARLES ESKRIDGE § § RICARDO R. § ALMANZAR JR, et al, § Defendants. § § § vs. § § § FIRST BANK & Trust § d/b/a FIRSTLINE § FUNDING GROUP, § Third-Party Defendant. § OPINION AND ORDER GRANTING MOTION TO DISMISS The motion by Defendants Hydro Precision Tubing USA LLC, Hydro Precision Tubing Monterrey LLC, and Hydro Precision Tubing Monterrey Central LLC to dismiss the claims against them for lack of subject matter jurisdiction is granted. Dkt 16. 1. Background Plaintiff Gulf Winds International Inc alleges that Hydro USA, Hydro Monterrey, and Hydro Monterrey Central collectively failed to pay for services it rendered by transporting certain cargo on their behalf. Dkt 1. It refers to them collectively throughout its complaint simply as Hydro. Gulf Winds also refers to the other three Defendants—Ricardo R Almanzar Jr, Almanzar Enterprises National Inc, and Almanzar Enterprises LLC—collectively as Almanzar. This makes the narrative quite unclear as to what alleged conduct is attributable to any particular entity. Still, and of necessity, reference hereafter must be to the Hydro Defendants and the Alamanzar Defendants because there currently isn’t any way to distinguish between them. The Hydro Defendants (as shipper) contracted with the Almanzar Defendants (as freight forwarder/broker) to transport unidentified cargo arriving at the Port of Houston from Qatar to its facility in Pharr, Texas, which is inland from Brownsville. The Almanzar Defendants ultimately subcontracted with Gulf Winds to transport the cargo to Pharr. As such, Gulf Winds transported the cargo from the Port of Houston to Seabrook, Texas, and then further subcontracted with American National Logistics to transport the cargo from Seabrook to the Hydro Defendants’ facility in Pharr. Dkt 1 at ¶ 11. Upon delivery of the goods, Gulf Winds sent a number of invoices totaling nearly $100,000 to the Hydro and Almanzar Defendants for the transportation services. Id at ¶¶ 12−17. The Hydro Defendants apparently deny ever receiving any invoices, but the Almanzar Defendants evidently did receive them. See Dkt 32 at ¶ 12. According to Gulf Winds, the Almanzar Defendants then added their own fees to the invoices and separately billed the Hydro Defendants. Dkt 1 at ¶ 18. The Hydro Defendants contend that the Almanzar Defendants directed them to pay all the transportation fees to Defendant First Bank & Trust, doing business as FirstLine Funding Group, a third-party to which the Almanzar Defendants had assigned their accounts receivable. Dkt 32 at ¶¶ 18, 49. FirstLine agrees with this characterization. Dkt 35 at 3−4. The Hydro Defendants insist that they paid FirstLine and concede never paying Gulf Winds directly. Dkt 32 at ¶¶ 49–50. And it appears that FirstLine used the payment as “partial satisfaction of Almanzar’s debt” to it. Dkt 35 at 5. Gulf Winds alleges that it hasn’t received its invoiced amount for the transportation services provided to the Hydro Defendants. Dkt 1 at ¶ 17. It contends that the Hydro Defendants assumed the risk that their funds wouldn’t be distributed properly by choosing to pay FirstLine rather than make direct payment. Id at ¶ 18. The Hydro Defendants deny owing Gulf Winds anything and insist that they assumed no such risk. Dkt 18 at 6. Gulf Winds brought action against the Almanzar and Hydro Defendants in Texas state court in March 2020, asserting claims for breach of contract, unjust enrichment, fraud, conspiracy to defraud, and quantum meruit. Dkt 16-1. But it nonsuited that action in December 2021 and brought this one instead. It reasserts claims for breach of contract, quantum meruit, and unjust enrichment against the Hydro and Almanzar Defendants, while separately asserting a fraud claim against the Almanzar Defendants and a claim under 49 USC § 13706 against the Hydro Defendants. Dkt 1 at ¶¶ 21–26. Ricardo Almanzar was served but never answered or otherwise defended in this action. The Clerk entered a default against him in July 2021. Dkts 36, 37. Gulf Winds has provided no return of service of summons as to other two Almanzar entities, but it asserts that they were served through the Texas Secretary of State. Dkt 24 at 3. The Hydro Defendants moved to dismiss the claims against them for lack of subject matter jurisdiction in February 2021. Dkt 16. 2. Legal standard Federal courts are ones of limited jurisdiction. Howery v Allstate Insurance Co, 243 F3d 912, 916 (5th Cir 2001), citing Kokkonen v Guardian Life Insurance Co of America, 511 US 375, 377 (1994). Rule 12(b)(1) of the Federal Rules of Civil Procedure permits a defendant to seek dismissal of an action for lack of subject matter jurisdiction. The Fifth Circuit holds that such a dismissal is appropriate ‘“when the court lacks the statutory or constitutional power to adjudicate the claim.’” In re Federal Emergency Management Agency Trailer Formaldehyde Products Liability Litigation, 668 F3d 281, 286 (5th Cir 2012), quoting Home Builders Association Inc v City of Madison, 143 F3d 1006, 1010 (5th Cir 1998). The burden is on the party asserting jurisdiction to establish by a preponderance of the evidence that subject matter jurisdiction is proper. New Orleans & Gulf Coast Railway Co v Barrois, 533 F3d 321, 327 (5th Cir 2008), citing Howery, 243 F3d at 919; Paterson v Weinberger, 644 F2d 521, 523 (5th Cir 1981). Indeed, a presumption against subject matter jurisdiction exists that “must be rebutted by the party bringing an action to federal court.” Coury v Prot, 85 F3d 244, 248 (5th Cir 1996). Section 1331 of Title 28 provides, “The district courts shall have original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.” The well- pleaded complaint rule determines whether a particular case arises under federal law. PCI Transportation Inc v Fort Worth & Western Railroad Co, 418 F3d 535, 543 (5th Cir 2005) (citation omitted). By this, federal jurisdiction exists “only when a federal question is presented on the face of plaintiff’s properly pleaded complaint.” Ibid (quotation omitted). And a “federal question exists only where ‘a well-pleaded complaint establishes either that federal law creates the cause of action or that the plaintiff’s right to relief necessarily depends on resolution of a substantial question of federal law.’” Board of Commissioners v Tennessee Gas Pipeline Co LLC, 850 F3d 714, 721 (5th Cir 2017), quoting Singh v Duane Morris LLP, 538 F3d 334, 337–38 (5th Cir. 2008). Federal courts should therefore “apply the well-pleaded complaint rule first” before assessing “the substantiality and centrality of the federal issues.” Charles Alan Wright and Arthur R. Miller, Federal Practice and Procedure, § 3566 (West 3d ed April 2021 Update). An important corollary to the well-pleaded complaint rule is the complete preemption doctrine. Federal preemption is “generally a defensive issue” that doesn’t authorize federal question jurisdiction. Willy v Coastal Corp, 855 F2d 1160, 1165 (5th Cir 1988); see also Metropolitan Life Insurance Co v Taylor, 481 US 58, 63 (1987). But Congress may so completely preempt “a particular area that any civil complaint raising this select group of claims is necessarily federal in character.” Ezell v Kansas City Southern Railway Co, 866 F3d 294, 297 n 2 (5th Cir 2017), quoting Gutierrez v Flores, 543 F3d 248, 252 (5th Cir 2008).

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Bluebook (online)
Gulf Winds International Inc v. Almanzar, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-winds-international-inc-v-almanzar-txsd-2021.