Kirby v. Norfolk Southern Railway Co.

71 F. Supp. 2d 1363, 1999 U.S. Dist. LEXIS 20597, 1999 WL 1023346
CourtDistrict Court, N.D. Georgia
DecidedNovember 8, 1999
Docket1:98-cv-02939
StatusPublished
Cited by8 cases

This text of 71 F. Supp. 2d 1363 (Kirby v. Norfolk Southern Railway Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kirby v. Norfolk Southern Railway Co., 71 F. Supp. 2d 1363, 1999 U.S. Dist. LEXIS 20597, 1999 WL 1023346 (N.D. Ga. 1999).

Opinion

ORDER

THRASH, District Judge.

This is an action in tort, bailment, and for breach of a shipping contract to recover damages for equipment damaged during shipping. It is before the Court on Defendant’s Motion to Enjoin Plaintiffs From Pursuing a Parallel Cause of Action in Australia [Doc. 12]. At issue is the standard by which the Court should issue an antisuit injunction against prosecution of a parallel foreign in personam action. For the reasons set forth below, the Court will deny the motion.

I. BACKGROUND

Plaintiff Kirby Engineering is an Australian engineering firm. It is the owner of various equipment which was shipped by sea and land from Australia to Alabama. MMI General Insurance Limited (“MMI”), also a plaintiff and an Australian citizen, is Kirby’s insurer for the equipment. Defendant Norfolk Southern is a Virginia corporation which operates a railroad in Georgia and Alabama, among other states. Norfolk Southern entered into a contract with a third-party whereby Norfolk Southern agreed to transport Kirby’s equipment from Savannah, Georgia to Alabama. The case arises from the derailment of Norfolk Southern’s train in Alabama. The derailment caused nearly $2 million in damages to Kirby’s equipment. Kirby contends that Norfolk Southern was negligent or otherwise responsible for its loss under the applicable contracts of carriage. In Australia, Kirby is suing additional parties that contracted to ship the same cargo involved in the present suit. The defendants in the Australian ease have cross-claimed against Norfolk Southern. Thus, Norfolk Southern is litigating related issues in separate actions on two continents. Norfolk Southern seeks to enjoin Plaintiffs from pursuing simultaneously the Australian action and the instant case.

Underlying this suit are contracts Kirby entered into in Australia. Kirby contracted with International Cargo Control, Pty Ltd. (“ICC”), a cargo broker, to ship eight containers of equipment to the General Motors Plant in Huntsville, Alabama. ICC then contracted with Hamburg Sü-damerikanische Dampfschifahrts-Geseils-chaft Eggert and Amsinck (“Hamburg Süd”), an ocean carrier, to transport the equipment by ship from Australia to Savannah, Georgia. Hamburg Sud used one of its subsidiaries, Columbus Line, Inc., for the ocean carriage. In Savannah, Columbus Line sub-contracted with Norfolk Southern for rail carriage to Alabama. Thus, there is no direct contractual relationship between Kirby and Norfolk Southern.

On October 9, 1997, the train carrying Kirby’s equipment derailed in Alabama before reaching its destination. Kirby suffered more than $2 million in damage to its equipment. Seeking damages for its loss, Kirby first sued ICC in Australia. ICC cross-claimed against Hamburg Süd, and Kirby amended its claim to include Hamburg Sud. Kirby also filed suit in this Court against Norfolk Southern. Ham-bürg Sud then brought a cross-claim against Norfolk Southern in the Australian action. Norfolk Southern contests jurisdiction in the Australian action. Norfolk Southern has moved to stay that action due to the pendency of this case. The Australian court recently denied the motion to stay.

Relevant to the matter of jurisdiction are several forum selection clauses contained within the parties’ agreements. ICC’s bill of lading with Kirby provides:

Actions against the freight forwarder [ICC] may be instituted only in the place where the freight forwarder has his place of business as stated on the reverse of the FBL [indicated as Bank- *1366 smeadow, New South Wales, Australia] and shall be decided according to the law of the country in which that place of business is situated.

[Doc. 13, Exh. D, Clause 19]. Hamburg Süd, through its Columbus Line subsidiary, also entered into a contract with a forum selection clause. The Columbus Line bill of lading for ICC provides:

Any suit to recover on any claim for loss or damage to the Goods ... shall be brought only in the country where the Goods are received for transportation [here, Australia] or where the Contract calls for delivery [here, the United States], the country to be chosen by the party making the claim [here, ICC].

[Doc. 13, Exhibit E, Clause 22],

Norfolk Southern contends that the Court should enjoin Kirby from proceeding with its Australian action. Norfolk Southern argues that a district court has discretion to enjoin parties before it from pursuing a parallel foreign in personam action if that action would cause unfair hardship and delay the speedy and efficient determination of the cause. [Doc. 12, p. 4]. Norfolk Southern characterizes the Australian and instant suits as parallel actions involving common parties, claims and issues. [Doc. 12, p. 3]. Norfolk Southern contends that its interests will be impaired if it is forced to litigate in Australia. The purported impairment results from the fact that all of Norfolk Southern’s liability witnesses are located in the United States. Additionally, Norfolk Southern contends that Australian procedural rules restrict live witness testimony, further hampering its defense. [Doc. 12, p, 7]. Thus, Norfolk Southern contends that allowing the Australian action to proceed hinders its ability to obtain a fair trial, thereby contravening an important public policy in this country. Also, Norfolk Southern contends that the burden of persuasion should fall on the party opposing the motion to enjoin. Under this view, to avoid an injunction Kirby would have to demonstrate that enjoining the Australian action would impair relations between that country and the United States. [Doc. 12, p. 4].

In response, Kirby contends that the Australian suit is not a parallel action with the instant case because the Australian suit involves parties and claims not before this Court. Kirby contends that separate suits are required because of forum selection clauses in its contract with ICC and in the contract between ICC and Columbus Line. Kirby also argues that an antisuit injunction by this Court would deprive Kirby of, or at least forestall, its claims against ICC and Hamburg Süd. The injunction could also result in a stalemate of both suits if the Australian court took similar action. Kirby argues that international comity compels the Court to allow both suits to proceed. Finally, Kirby maintains that even under the liberal approach some circuits employ in granting antisuit injunctions, the forum selection clauses here warrant a denial of the injunction. As to the burden of persuasion, Kirby contends the movant must demonstrate that the foreign proceeding would be so manifestly inconvenient that the movant will be effectively deprived of a fair resolution. [Doc. 13, p. 6],

II. DISCUSSION

It is undisputed that federal courts possess the discretionary power to enjoin parties subject to their jurisdiction from pursuing parallel in personam litigation before foreign tribunals. See Kaepa, Inc. v. Achilles Corp., 76 F.3d 624, 627 (5th Cir.1996); Gau Shan Co. v. Bankers Trust Co., 956 F.2d 1349 (6th Cir.1992); Laker Airways Ltd. v. Sabena, Belgian World Airlines,

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Bluebook (online)
71 F. Supp. 2d 1363, 1999 U.S. Dist. LEXIS 20597, 1999 WL 1023346, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kirby-v-norfolk-southern-railway-co-gand-1999.