Juan Melgarejo v. Pycsa Panama, S.A.

537 F. App'x 852
CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 17, 2013
Docket12-14858
StatusUnpublished
Cited by20 cases

This text of 537 F. App'x 852 (Juan Melgarejo v. Pycsa Panama, S.A.) 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
Juan Melgarejo v. Pycsa Panama, S.A., 537 F. App'x 852 (11th Cir. 2013).

Opinion

PER CURIAM:

Plaintiff-Appellant Juan Melgarejo appeals the dismissal of his complaint for lack of personal jurisdiction over Defendant-Appellee Pycsa Panama, S.A. After *854 careful review, and with the benefit of oral argument, we affirm.

I. FACTS AND PROCEDURAL HISTORY

This appeal involves Florida’s Long Arm Statute. See Fla. Stat. § 48.193. Under subsection (2), courts in Florida have “general jurisdiction” over a non-resident defendant if that defendant engages in “substantial and not isolated” activity in Florida, whether or not the cause of action arose from that Florida activity. Id. § 48.193(2). But, even if a defendant does not engage in substantial activity in Florida, Florida courts have specific jurisdiction over a defendant if the asserted cause of action “arises from” that defendant’s “conducting” or “carrying on” a business in Florida or having “an office or agency” in Florida. Id. § 48.193(1)(a)(1) (emphasis added).

With that background, we set forth some information about the parties and then describe the events that gave rise to Melgarejo’s cause of action here, highlighting the facts relevant to our personal jurisdiction analysis. 1

A. The Parties

Defendant Pycsa Panama, S.A. (“Pycsa”) is a Panamanian corporation whose headquarters are in Panama City, Panama. It is a wholly owned subsidiary of Pycsa International, Limited (“Pycsa International”), a Cayman Islands corporation. Pycsa International is owned by Mayford Development, Limited (“Mayford Development”), a Bahamas corporation.

In 1994, Panama’s Ministry of Public Works awarded a contract to defendant Pycsa to design, construct, maintain, and operate a tollway around Panama City, Panama. This project consisted of two segments — the Northern Corridor and the Panama-Colon Highway, also referred to as the Madden Segment. 2 All work for the project was to be conducted in Panama.

Plaintiff Melgarejo is a professional engineer who holds a Ph.D. from the University of Michigan. He became a full-time resident of Florida in 1989. From 1989 until 1996, Melgarejo lived in Orlando, Florida, and in 1996, Melgarejo moved to Singer Island, Florida. From 1991 until 2002, he also maintained a home in Mexico City, Mexico. Since 2002, Melgarejo has lived with his family in Weston, Florida.

B. The 1997 Employment Agreement

On October 6, 1997, plaintiff Pycsa hired defendant Melgarejo to serve as its “Di *855 rector” and to manage the Panama tollway project. Pycsa and Melgarejo entered into an employment agreement (the “agreement”), which required Melgarejo to “devote [his] time and effort to managing Construction of the Project ... necessary to efficiently bring the Project to Completion and into Operation.” The agreement defined “Completion” as “the later of Completion ... of the Northern Corridor and Completion ... of the Madden Segment.” The agreement required Melgarejo to “follow all directions of [Pycsa’s] board of directors” and “inform the board of directors of [Pycsa’s] affairs.” The agreement provided that Panamanian law governed.

Under the agreement, plaintiff Melgarejo was to receive $250,000 (in United States currency) upon completion of the Northern Corridor and that same amount upon completion of the Madden Segment. Additionally, Melgarejo was entitled to $500,000 (in United States currency) if other debt-service related criteria were met. The agreement required that defendant Pycsa provide Melgarejo with: (1) “an automobile in Panama”; (2) “air transport ... to and from [his] home to Panama”; (3) “lodging in Panama”; and (4) reimbursements for all “travel, business and other expenses reasonably incurred in connection with [his] services to [Pycsa].” Compensation under the agreement was to be “paid only from [bond] Distributions.”

It is undisputed that the parties signed the agreement at the Panamanian Consulate in New York, New York. However, there is conflicting evidence as to where the parties negotiated the agreement prior to signing it.

In affidavit testimony, plaintiff Melgarejo stated that he “negotiated [the agreement] in New York City, Palm Beach, Florida, and Panama in meetings and telephone conversations with Max Haddad, then President of PYCSA, and PYCSA’s New York counsel, David Spencer.” 3 Melgarejo stated that, during the course of these negotiations, he “met with Mr. Spencer in New York City (and not just at the Panamanian Consul, but on U.S. soil), with Max Haddad at his home in Palm Beach, Florida, and also in Panama.” Melgarejo claimed that he “spoke with Mr. Spencer many times by telephone from [Melgarejo’s] home in Singer Island, Florida, as well as from [his] home in Mexico City, Mexico.”

In contrast, Maximo Haddad stated that he, as Pycsa’s president, signed the employment agreement and never met “with [Melgarejo] in Florida or New York to discuss or negotiate the terms of the contract.” In particular, Haddad stated that “[a]ll negotiations between Pycsa and Melgarejo prior to the signing of the contract were conducted in Panama or Mexico City.” Haddad acknowledged that he had a home in Florida, but stated that his primary residence was in Panama City, Panama and that he spent only “limited time” at his Florida residence.

C. 2001 Termination of the Agreement and 2010 Panama Suit

From 1997 until 2001, plaintiff Melgarejo performed his work under the agreement. During that time, all of the work that Melgarejo did for defendant Pycsa occurred in either Panama or Mexico. On July 1, 2001, he voluntarily resigned his position with Pycsa. After Melgarejo did so, it is undisputed that Pycsa did not pay him any of the sums set forth in the agreement. At some point, Pycsa informed Melgarejo that it would not pay him for his work.

*856 On approximately July 30, 2010, over nine years after he voluntarily terminated the agreement, Melgarejo filed a complaint in Panamanian court (the “Panama suit”). In the Panama suit, Melgarejo claimed that Pycsa had breached the agreement. He sought to recover compensation allegedly owed under the agreement. As of 2012, that lawsuit remained pending in Panama and the parties had filed responses and begun discovery. However, Melgarejo testified in an affidavit that he “[did] not believe that [he] can obtain a fair hearing or justice from the Panamanian courts against PYCSA because [he] [is] not wealthy or as well-connected as ... PYCSA.”

D. Melgarejo’s 2011 Federal Complaint

Over a year after filing the Panama suit, on October 12, 2011, Melgarejo filed a complaint in the United States District Court for the Southern District of Florida (the “federal complaint”). Melgarejo’s federal complaint contained three anticipatory breach of contract claims, each one based on the agreement.

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Bluebook (online)
537 F. App'x 852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/juan-melgarejo-v-pycsa-panama-sa-ca11-2013.