K & R Robinson Enterprises Ltd. v. Asian Export Material Supply Co.

178 F.R.D. 332, 1998 U.S. Dist. LEXIS 4086, 1998 WL 151775
CourtDistrict Court, D. Massachusetts
DecidedMarch 13, 1998
DocketCiv.A. No. 96-10899-RGS
StatusPublished
Cited by1 cases

This text of 178 F.R.D. 332 (K & R Robinson Enterprises Ltd. v. Asian Export Material Supply Co.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
K & R Robinson Enterprises Ltd. v. Asian Export Material Supply Co., 178 F.R.D. 332, 1998 U.S. Dist. LEXIS 4086, 1998 WL 151775 (D. Mass. 1998).

Opinion

ORDER ON MAGISTRATE-JUDGE’S REPORT AND RECOMMENDATION

STEARNS, District Judge.

After consideration of the plaintiff’s objections, I ADOPT the Report and Recommendation of Magistrate-Judge Karol. The Clerk will schedule a conference to discuss an expeditious resolution of all outstanding matters.

SO ORDERED.

REPORT AND RECOMMENDATION REGARDING PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT AS TO COUNT I AND COUNTERCLAIM (DOCKET NO. 23)

KAROL, United States Magistrate Judge.

The plaintiff, K & R Robinson Enterprises Ltd. (“K & R”), is a corporation organized under the laws of, and with a registered place of business in, the province of British Columbia, Canada. It is in the business of buying and selling scrap metal. In the summer of 1993 it sold several thousand tons of scrap metal to defendant Asian Export Material Supply Co., Inc. (“Asian Export”), a Massachusetts corporation. Late in 1993, after Asian Export had taken delivery of the scrap metal, K & R brought an action in British Columbia against Asian Export and its two principals, John S.C. Wong (“Wong”) and Wong’s wife, Sally B. Lim (“Sally”). K & R claimed 1) that Asian Export had not made full payment for the scrap metal and 2) that Wong, with Sally’s assistance, had tortiously induced K & R to make delivery by falsely claiming that the proceeds of a certain letter of credit, which Asian Export had assigned to K & R as security, were sufficient to cover the full purchase price. K & R ultimately obtained default judgments in British Columbia against Asian Export, Wong, and Sally. It then commenced the present lawsuit against those same defendants seeking, among other things, to domesticate the default judgments under Mass.Gen.Laws ch. 235, § 23A K & R has now moved for summary judgment to establish, inter alia, the validity and enforceability of those judgments under Massachusetts law. Because I conclude that factual disputes exist as to all [334]*334defendants regarding the sufficiency of service of process and that, in any event, Sally is not amenable to process, I recommend that K & R’s motion be DENIED.

I. BACKGROUND AND UNDISPUTED FACTS

Based upon the memoranda and exhibits submitted by the parties, it appears, unless otherwise noted, that the following facts are undisputed.

In early 1993, an Asian Export employee named Lilly Lim (“Lilly”), from Massachusetts, called K & R in British Columbia to discuss the possible purchase of scrap metal. (Affidavit of John S.C. Wong (‘Wong Aff.”) ¶2, Ex. 9, Docket No. 32.) Lilly, also by telephone from Massachusetts, later conducted price negotiations on behalf of Asian Export with K & R’s principal, Reg Robinson (“Robinson”). (Id. at 114.) At some point between May 30 and June 7, 1993, K & R and Asian Export entered into a written agreement for the sale of scrap metal by K & R to Asian Export. (Affidavit of Reg Robinson (“Robinson Aff.”), Ex. A, Docket No. 7.)1 The written agreement included a broad arbitration clause (Section 9.04) and a clause pursuant to which both parties “irrevocably attorn[ed] to the exclusive jurisdiction of the courts of British Columbia” (Section 10.02). The written agreement was orally amended after it was signed.2 In August 1993, under Wong’s supervision, the scrap was loaded onto ships in the waters off British Columbia and transported to China for resale by Asian Export to one of its customers.

In November 1993, K & R brought suit in the British Columbia Supreme Court against Asian Export for breach of contract. It also asserted claims against Wong and Sally individually for misrepresentation. An action in British Columbia is commenced by filing a document called a statement of claim (corresponding to the document we know as the complaint) and a writ of summons (corresponding to the document we know as the summons).3 K & R’s statement of claim alleged, inter alia, that 1) on June 30, 1993, K & R had entered into an agreement (“partly written and partly oral”) with Asian Export, whereby K & R would sell to Asian Export and Asian Export would purchase from K & R approximately 10,000 metric tons of scrap metal at a price of $80 (U.S.) per ton; 2) under the agreement as originally written, Asian Export was to provide to K & R, as security for payment, an irrevocable letter of credit issued by a Canadian bank; 3) Wong later asked K & R to accept instead an assignment of an existing letter of credit in Asian Export’s favor drawn on The Bank of China in New York City, New York; 4) to induce K & R to accept the substitute security, Wong fraudulently represented that the proceeds of the substitute letter of credit were sufficient to satisfy Asian Export’s payment obligation in full, and that K & R’s claim would have priority over claims by any other creditors of Asian Export against those proceeds; 5) to induce K & R to make delivery, Wong repeated those false representations to K & R while Robinson was in British Columbia in August 1993 to oversee the delivery of the scrap metal to Asian Export; 6) Sally knew that Wong had made false representations about the adequacy of the substitute security and of K & R’s reliance thereon, but, in violation of her duty under British Columbia law to expose Wong’s misrepresentations, she remained silent; 7) in reliance on Wong’s representations and Sally’s silence, K & R agreed to accept the substitute security and made delivery of the scrap metal to [335]*335Asian Export in the waters off British Columbia in August 1993; and 8) the proceeds of the substitute security were not sufficient to cover the full purchase price. K & R sought liquidated damages against Asian Export for breach of contract in the amount of $343,616.33 (Cdn.), or $367,140.73 (Cdn.) including freight, and damages in an unstated sum against Wong and Sally for intentional or negligent misrepresentation.

On December 9, 1993, counsel for K & R mailed a Notice of Request for Arbitration to Asian Export “pursuant to the agreement dated May 30,1993.” (Notice of Request for Arbitration, Ex. A, Docket No. 8.) By letter dated January 28,1994, Asian Export, by its Massachusetts attorney, David Leland (“Leland”), declined to participate in the arbitration, stating that the contract containing the arbitration clause was rendered “null and void by the express term[s] of [a] second contract” between the parties, and, further, that the sale of scrap “took place totally within the terms of the second contract.” (Letter from David Leland to Cecil Branson dated January 29, 1994, Ex. B, Docket No. 8.)

While the parties were exchanging correspondence about arbitration, events were also taking place on the litigation front in British Columbia. On or about December 28, 1993, Leland, on behalf of Asian Export, filed a pleading in the Supreme Court of British Columbia entitled “Application to Set Aside Service of Process” (the “Application”).4 (Affidavit of James A Hall (“Hall Aff.”) ¶ 8, Docket No. 8; Application, Ex. G, Docket No.

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178 F.R.D. 332, 1998 U.S. Dist. LEXIS 4086, 1998 WL 151775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/k-r-robinson-enterprises-ltd-v-asian-export-material-supply-co-mad-1998.