Heidmar, Inc. v. Anomina Ravennate Di Armamento Sp.A.

993 F. Supp. 990, 1998 A.M.C. 47, 1997 U.S. Dist. LEXIS 21969, 1997 WL 834548
CourtDistrict Court, S.D. Texas
DecidedJune 20, 1997
DocketC.A. No. C-97-151
StatusPublished

This text of 993 F. Supp. 990 (Heidmar, Inc. v. Anomina Ravennate Di Armamento Sp.A.) 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
Heidmar, Inc. v. Anomina Ravennate Di Armamento Sp.A., 993 F. Supp. 990, 1998 A.M.C. 47, 1997 U.S. Dist. LEXIS 21969, 1997 WL 834548 (S.D. Tex. 1997).

Opinion

ORDER GRANTING PLAINTIFFS’ MOTION FOR LEAVE TO FILE THIRD AMENDED COMPLAINT, ORDER GRANTING DEFENDANTS’ MOTION FOR PARTIAL SUMMARY JUDGMENT, AND ORDER SUSTAINING DEFENDANTS’ OBJECTIONS TO MAGISTRATE ORDER DENYING DEFENDANTS’ FIRST AMENDED MOTION TO VACATE ARREST AND DEFENDANTS’ MOTION TO RECONSIDER

JACK, District Judge.

On this date came on to be considered Defendants Anomina Ravennate Di Armamento Sp.A. of Ravenna and A.R.A. Anomina Ravennate Di Armamento Sp.A. in person-am (“Ravennate”) and M/V PEGASUS ERRE, her hull, engines, machinery, tackle, apparel, furniture, etc., in rem’s (“PEGASUS ERRE”) Motion for Partial Summary Judgment against Plaintiffs Heidmar, Inc. and Heidenreich Marine, Inc. (“Plaintiffs”); Defendants’ Objections to Magistrate Order Denying Defendants’ First Amended Motion to Vacate Arrest and Defendants’ Motion to Reconsider; and Plaintiffs’ Motion for Leave to File Third Amended Complaint.

I. JURISDICTION

The Court has jurisdiction pursuant to 28 U-S.C. § 1333.

II. FACTS & PROCEEDINGS

Plaintiffs are in the business of ocean transportation; approximately half of Plaintiffs’ business is derived from the carriage of oil products for petroleum companies. (Heidenreich Aff.' Ex. ¶¶2, 5.) Plaintiffs do not own any vessels, and therefore, charter ships under a variety of arrangements. (Id. ¶ 2.)-

In May 1995, Plaintiffs negotiated a time charter party (“Charter Party”) dated June 12, 1995, with Ravennate for the PEGASUS ERRE, a vessel owned by Defendants. (Second Aff. Heidenreich at 2.; Charter Party at 1.) The Charter Party contained a choice of law provision stating that it “shall be construed and the relations between the parties determined in accordance with the laws of [992]*992England.” (Id. at Cl. 41(a).) This agreement further provided that at the date of delivery of the PEGASUS ERRE, this vessel shall be fit to carry crude petroleum and/or its products; classed; tight, staunch, in good order and condition, and in every way fit for service; fitted for burning at sea fueloil with a maximum viscosity; oil tight; and in compliance with certain other requirements. (Charter Party at Cl. 1.) The Charter Party also required Ravennate to obtain this vessel’s inspection and approval from various oil companies until the charter’s conclusion. (Time Charter Terms at Cl. 36; Second Aff. Heidenreieh at 2.)

Delivery of the PEGASUS ERRE occurred in November 1995. (Id. at 2.) However, in October 1996, Plaintiffs returned the vessel to Ravennate, complaining that Ravennate did not meet the requirements imposed by the Charter Party. (Id. at 3-4.) Specifically, Plaintiffs claim that the PEGASUS ERRE was involved in a pollution incident in December 1995. (Id.) In addition, in January 1996, the vessel allegedly experienced inconsistency with maintaining cargo temperatures, difficulty reporting fuel figures, and inoperative fuel heating coils. (Id.) Further, Plaintiffs complain that the vessel failed inspections and lost approvals with various oil companies, including Amoco in March 1996, May 1996, and September 1996.

On March 7, 1997, Plaintiffs commenced suit against Defendants, asserting a claim for a maritime lien against the PEGASUS ERRE arising from Ravennate’s alleged breach of the time charter with Plaintiffs for this vessel, and seeking the arrest of the PEGASUS ERRE pursuant to Supp.R.Fed. R.Civ.P. C. Defendants answered, counterclaimed for breach of contract and wrongful arrest, and moved to dismiss Plaintiffs’ complaint for failure to state a claim pursuant to Fed.R.Civ.P. 12(b)(6).

On March 7, 1997, the magistrate entered an Order for the arrest and seizure of the PEGASUS ERRE. The PEGASUS ERRE was arrested on March 10,1997.

On March 14,1997, the magistrate entered an Order setting the security to obtain release of the PEGASUS ERRE at $839,078 plus interest at —per annum. This Order provided that such security shall be posted by bond, unless Plaintiffs agree to an alternative form of security. On March 19, 1997, Defendants furnished a bond to secure the release of the PEGASUS ERRE.

On March 12, 1997, the PEGASUS ERRE moved to vacate the arrest, contending that Plaintiffs’ arrest of the PEGASUS ERRE was improper and wrongful on the ground that English law governs the charter party at issue and English law does not provide a maritime lien for breach of a charter party. At a hearing on March 12, 1997, the magistrate denied the motion to vacate without prejudice. Defendants thereafter filed a first amended motion to vacate on March 14,1997, and a motion for reconsideration on March 25,1997.

In an Order entered March 31, 1997, the magistrate denied the motion for reconsideration and denied the first amended motion to vacate the arrest. Defendants filed Objections this Order on April 4,1997.

The Court converted Defendants’ Motion to Dismiss into a Motion for Summary Judgment on April 9, 1997. Defendants filed a Supplement to Motion for Summary Judgment on May 1, 1997. Plaintiffs responded to the Motion on May 13,1997.

On May 15, 1997, the parties appeared for the Initial Pretrial Conference. During this hearing, the Court ruled that Plaintiffs could not proceed against the PEGASUS ERRE, her hull, engines, machinery, tackle, apparel, furniture, etc., in rem, under Supp.R.Fed. R.Civ.P. C, and converted Plaintiffs’ arrest of this vessel into a temporary attachment pursuant to Supp.R.Fed.R.Civ.P. B, pending further summary judgment briefing on the following issues: (1) whether Ravennate has sufficient minimum contacts for the purposes of Supplemental Rule B, (2) whether Ravennate can be found within the geographical confines of this district for service of process for the purposes of Supplemental Rule B, and (3) whether Ravennate waived its right to contest arrest under Supplemental Rule C. Regarding the service of process issue, the Court indicated that the parties should address whether Ravennate must be found within the district when the action was filed [993]*993or prior to attachment. Plaintiffs and Defendants filed said briefing with the Court on May 27, 1997, and submitted reply briefing with the Court on June 3,1997.

Plaintiffs filed a Motion for Leave to Pile Third Amended Complaint on June 3, 1997. Plaintiffs seek leave to amend to include a request to proceed by attachment under Supplemental Rule B and to assert a claim that Defendants waived their objections to the vessel’s arrest. The Court finds that Plaintiffs’ Motion for Leave to File Third Amended Complaint should be granted.

III. DISCUSSION

A. STANDARDS OF REVIEW

The Court may consider Defendants’ objections to the magistrate’s order pursuant to Fed.R.Civ.P. 72(a). A district judge, will modify or set aside a magistrate judge’s order if the district judge finds the order “clearly erroneous or contrary to law.” Fed. R.Civ.P. 72(a); Alldread v. City of Grenada, 988 F.2d 1425, 1434 (5th Cir.1993).

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993 F. Supp. 990, 1998 A.M.C. 47, 1997 U.S. Dist. LEXIS 21969, 1997 WL 834548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heidmar-inc-v-anomina-ravennate-di-armamento-spa-txsd-1997.