Ingram Barge Co., LLC v. Zen-Noh Grain Corp.

3 F.4th 275
CourtCourt of Appeals for the Sixth Circuit
DecidedJune 28, 2021
Docket20-5514
StatusPublished
Cited by18 cases

This text of 3 F.4th 275 (Ingram Barge Co., LLC v. Zen-Noh Grain Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ingram Barge Co., LLC v. Zen-Noh Grain Corp., 3 F.4th 275 (6th Cir. 2021).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 21a0145p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ INGRAM BARGE COMPANY, LLC, │ Plaintiff-Appellant, │ │ v. > No. 20-5514 │ │ ZEN-NOH GRAIN CORPORATION, │ Defendant-Appellee. │ │ ┘

Appeal from the United States District Court for the Middle District of Tennessee at Nashville. No. 3:19-cv-01025—Aleta Arthur Trauger, District Judge.

Decided and Filed: June 28, 2021

Before: SILER, WHITE, and STRANCH, Circuit Judges. _________________

COUNSEL

ON BRIEF: David Reisman, Raymond T. Waid, Kathryn Z. Gonski, Trinity Morale, LISKOW & LEWIS, New Orleans, Louisiana, W. Brantley Phillips, Jr., BASS, BERRY & SIMS PLC, Nashville, Tennessee, for Appellant. Jason P. Waguespack, Fredric B. Eisenstat, GALLOWAY, JOHNSON, TOMPKINS, BURR & SMITH, New Orleans, Louisiana, Kenneth M. Bryant, BURR & FORMAN LLP, Nashville, Tennessee, for Appellee.

SILER, J., delivered the opinion of the court in which STRANCH, J., joined. WHITE, J. (pp. 7–11), delivered a separate dissenting opinion. _________________

OPINION _________________

SILER, Circuit Judge. Typically, only parties to a contract are bound to its terms. This case is no exception. Zen-Noh Grain Corporation was neither a party to nor consented to Ingram No. 20-5514 Ingram Barge Co. v. Zen-Noh Grain Corp. Page 2

Barge Company’s contract for the transportation of goods (a bill of lading) and thus is not bound to the contract’s forum selection clause. Therefore, the district court did not have jurisdiction over Zen-Noh, and we AFFIRM the district court’s dismissal for lack of personal jurisdiction.

I

Zen-Noh purchased shipments of grains from several companies. The sellers were required to prepay the barge freight and deliver the product to Zen-Noh’s grain trading terminal in Convent, Louisiana. But the sellers were not required to use any specific company to deliver the goods. Plaintiff Ingram was chosen.

Ingram then issued a contract to the sellers for the transportation of goods—a negotiable bill of lading in industry parlance. A bill of lading defines the relationships of the parties: the consignor (company arranging shipment); the consignee (company which is owed delivery); and the carrier (company that carries the goods).1 After the goods have arrived, a consignee presents the bill of lading to receive the goods. See Evergreen Marine Corp. v. Six Consignments of Frozen Scallops, 4 F.3d 90, 92 n.1 (1st Cir. 1993). A negotiable bill of lading is a document of title, which is “vested in the holder of the bill.” Id. at 96.

All the bills issued by Ingram are essentially identical, except two. In most of these bills: “the grain seller (or affiliate) is the consignor; the consignment is to the order of the consignee; Zen-Noh is included as a ‘notify’ party ‘A/C’[2] the consignor/consignee; the freight is described as prepaid; and the signature blocks are for Ingram and the consignor/consignee.” In the two exceptions, Zen-Noh is not mentioned at all or is mentioned in the field for consignee.

Printed on each bill was an agreement to the “Carrier’s Grain Transportation Terms” and a link to the Terms on Ingram’s website. Importantly, the Terms: (1) purport to bind any entity that has an ownership interest in the goods; and (2) include a forum selection provision selecting the U.S. District Court for the Middle District of Tennessee.

1Parties can have multiple roles. 2“A/C” means “on account of.” No. 20-5514 Ingram Barge Co. v. Zen-Noh Grain Corp. Page 3

Ingram updated its Terms in April 2019. Ingram alleges that it notified Zen-Noh of the Terms through an email to CGB Enterprises, Inc. In a declaration, a representative of Ingram says, “to the best of his knowledge, information and belief,” that “CGB is a company closely connected with Zen-Noh and Zen-Noh is a part-owner of CGB.” The representative also says, again on information and belief, “CGB receives many of Zen-Noh’s consigned grain cargos on the Lower Mississippi River and often acts on Zen-Noh's behalf in commercial dealings related to grain transportation.” Ingram’s email to CGB was sent prior to the use of the invoices at issue in this case.

About three weeks later, Zen-Noh “sent an email to Ingram complaining that Zen-Noh had received invoices for which it did not believe it was liable.” Ingram responded that the invoices were “per [the] grain contract.” When Zen-Noh requested the grain contract for its review, Ingram replied with a link to the Grain Transportation terms. Zen-Noh finally answered that it was “not party to the barge affreightment contract as received in your previous email, and as such, is not liable for nor will be paying these invoices.”

No one complains that the grains were not shipped and received by Zen-Noh. Instead, Ingram alleges it incurred costs that it claims Zen-Noh must pay. Zen-Noh has already paid Ingram demurrage charges— “penalties related to delayed loading or unloading of goods”—but has not paid for “unrelated expenses that Ingram incurred en route involving ‘fleeting,’ ‘wharfage,’ and ‘shifting.’” Those costs it says it does not owe. As a result, Ingram filed this lawsuit against Zen-Noh in the Middle District of Tennessee, but the district court dismissed the case for lack of personal jurisdiction.

II

We have jurisdiction over this appeal under 28 U.S.C. § 1291. We review de novo the district court’s dismissal for lack of personal jurisdiction under Fed. R. Civ. P. 12(b)(2). Air Products and Controls, Inc. v. Safetech Intern., Inc., 503 F.3d 544, 549 (6th Cir. 2007). The plaintiff carries the burden of establishing the existence of personal jurisdiction, but that burden is relatively slight where, as here, the district court “relies solely on written submissions and affidavits” to resolve the issue. Id. Nonetheless, the plaintiff must meet its prima facia showing. No. 20-5514 Ingram Barge Co. v. Zen-Noh Grain Corp. Page 4

Id. The court must view the pleadings and affidavits in a light most favorable to the plaintiff and not weigh “the controverting assertions of the party seeking dismissal.” Id. (quoting Theunissen v. Matthews, 935 F.2d 1454, 1458 (6th Cir. 1991)).

III

Ingram does not allege that Zen-Noh is subject to the court’s jurisdiction through general or specific jurisdiction. Rather, it relies on a forum selection clause linked to its bills of lading. And a forum selection clause allows a party to agree “to the jurisdiction of a particular court.” Preferred Capital, Inc. v. Assocs. in Urology, 453 F.3d 718, 721 (6th Cir. 2006) (citing M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (1972)).

But a bill of lading is a contract.3 See Wemhoener Pressen v. Ceres Marine Terminals Inc., 5 F.3d 734, 738 (4th Cir. 1993). “When a contract is a maritime one, and the dispute is not inherently local, federal law controls the contract interpretation.” Dynamic Worldwide Logistics, Inc. v.

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