Mediterranean Shipping Company (USA) Inc. as agent for MSC Mediterranean Shipping Company S.A. v. Royal Halo LLC

CourtDistrict Court, S.D. New York
DecidedFebruary 20, 2026
Docket1:24-cv-02292
StatusUnknown

This text of Mediterranean Shipping Company (USA) Inc. as agent for MSC Mediterranean Shipping Company S.A. v. Royal Halo LLC (Mediterranean Shipping Company (USA) Inc. as agent for MSC Mediterranean Shipping Company S.A. v. Royal Halo LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mediterranean Shipping Company (USA) Inc. as agent for MSC Mediterranean Shipping Company S.A. v. Royal Halo LLC, (S.D.N.Y. 2026).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK MEDITERRANEAN SHIPPING COMPANY (USA) INC. as agent for MSC Mediterranean Shipping Company S.A., Plaintiff, 24-CV-2292 (JGLC) (HJR) -against- OPINION AND ORDER ROYAL HALO LLC, Defendant. JESSICA G. L. CLARKE, United States District Judge: Plaintiff Mediterranean Shipping Company (USA) Inc. (“Mediterranean” or “Plaintiff”), as an agent for MSC Mediterranean Shipping Company S.A (“MSC”), brings this action against Defendant Royal Halo LLC (“Royal Halo” or “Defendant”) for admiralty and maritime claims. Following a grant of default judgment, this matter was referred to Magistrate Judge Ricardo for an inquest into damages. Magistrate Judge Ricardo recommended that no default judgment be entered against Royal Halo, and that the case be dismissed for lack of personal jurisdiction. Mediterranean timely filed an objection to Magistrate Judge Ricardo’s report and recommendation (“R&R”). For the reasons set forth below, this Court adopts the R&R and dismisses this case for lack of personal jurisdiction. BACKGROUND The Court assumes familiarity with the underlying facts of this case, as set forth in the R&R. ECF No. 31 (“R&R”) at 4–6. On March 27, 2024, Mediterranean initiated this action against Royal Halo. ECF No. 1. Although Defendant filed an answer on May 22, 2024, Defendant appeared to be proceeding pro se. ECF No. 16. Because a corporate entity may only appear in federal court through counsel, this Court ordered Defendant to retain counsel. ECF No. 18 (citing Grace v. Bank Leumi Tr. Co. of N.Y., 443 F.3d 180, 192 (2d Cir. 2006)). However, Defendant failed to retain counsel, and this Court granted default judgment and referred the matter to Magistrate Judge Ricardo for an inquest into damages. ECF Nos. 20–21. On November 15, 2024, Magistrate Judge Ricardo entered a scheduling order for the

damages inquest. ECF No. 22. Plaintiff informed Magistrate Judge Ricardo of its intention to “rely on its prior submissions” for the purposes of the inquest. ECF Nos. 23–24. On February 6, 2025, Magistrate Judge Ricardo found Plaintiff’s prior submissions, on which Plaintiff relied, “wholly inadequate to establish damages with reasonable certainty,” and ordered Plaintiff to submit additional admissible evidence in support of its relief sought. ECF No. 25. On February 18, 2025, Plaintiff submitted an affidavit with attached copies of invoices and Bills of Lading (also referred to as “Sea Waybills”). ECF No. 26. Plaintiff’s affidavit also referenced attached booking confirmations that were not actually attached or filed with Plaintiff’s February 18 submission. ECF No. 28; see also ECF No. 26. Following Magistrate Judge Ricardo’s order that

Plaintiff file a full and complete copy of the affidavit, ECF No. 28, Plaintiff refiled its affidavit with the booking confirmations attached. ECF No. 29 at 26–35. On May 23, 2025, Magistrate Judge Ricardo issued an R&R recommending that “no default judgment be entered against Royal Halo, and that this case be dismissed for lack of personal jurisdiction.” R&R at 1. On June 2, 2025, Plaintiff timely objected to the R&R. ECF No. 33 (“Obj.”). LEGAL STANDARD In reviewing a Report and Recommendation, a district court “may accept, reject, or modify, in whole or in part, the findings or recommendations made by the magistrate judge.” 28 U.S.C. § 636(b)(1)(C). A district court “must determine de novo any part of the magistrate judge’s disposition that has been properly objected to.” Fed. R. Civ. P. 72(b)(3); see also United States v. Male Juvenile, 121 F.3d 34, 38 (2d Cir. 1997). To accept those portions of the report “to which no timely objection has been made,” however, “a district court need only satisfy itself that there is no clear error on the face of the record.” See, e.g., Wilds v. United Parcel Serv., Inc., 262 F. Supp. 2d 163, 169 (S.D.N.Y. 2003) (internal citation omitted). This clearly erroneous standard

also applies when a party makes only conclusory or general objections, or simply reiterates his original arguments. See, e.g., Ortiz v. Barkley, 558 F. Supp. 2d 444, 451 (S.D.N.Y. 2008). Additionally, “new arguments and factual assertions cannot properly be raised for the first time in objections to the report and recommendation, and indeed may not be deemed objections at all.” Gagliardi v. Prager Metis CPAs LLC, 738 F. Supp. 3d 469, 475 (S.D.N.Y. 2024) (quoting Piligian v. Icahn Sch. of Med. at Mount Sinai, 490 F. Supp. 3d 707, 716 (S.D.N.Y. 2020) (cleaned up)). DISCUSSION Magistrate Judge Ricardo’s R&R determined that there is no personal jurisdiction over

Defendant because the forum selection clause contained in the Sea Waybills was not enforceable against Royal Halo. R&R at 11. Plaintiff does not object to Magistrate Judge Ricardo’s conclusion that there is no other basis for personal jurisdiction over Defendant, such as general or specific personal jurisdiction. See Obj.; R&R at 10–11. “The Second Circuit has established a four-part analysis to determine whether a forum-selection clause is enforceable: (1) whether the clause was reasonably communicated to the party resisting enforcement; (2) whether the clause is mandatory or permissive; (3) whether the claims and parties involved in the suit are subject to the forum selection clause; and (4) if the first three inquiries are satisfied and the forum selection clause is presumptively enforceable, whether the resisting party has rebutted the presumption of enforceability.”

R&R at 8 (citing Phillips v. Audio Active, Ltd., 494 F.3d 378, 383–84 (2d Cir. 2007)). Here, Magistrate Judge Ricardo determined that the forum selection clause was not enforceable against Defendant because Plaintiff offered “no evidence that [the forum selection clause,] Section 10.3 of the Sea Waybills[,] was reasonably communicated to Royal Halo.” R&R at 10. As this element is dispositive, Magistrate Judge Ricardo declined to analyze the other elements of the Second Circuit’s four-part analysis of forum selection clauses’ enforceability. Id.

Plaintiff does not object to Magistrate Judge Ricardo’s legal analysis. See Obj. Further, Plaintiff does not object to Magistrate Judge Ricardo’s conclusion that Defendant “is not a direct party to the Sea Waybills,” and “did not sign the Sea Waybills.” R&R at 8–9; see Obj. However, Plaintiff provides new evidence in arguing that the Sea Waybills, and thereby the forum selection clause, were communicated to Defendant via email. Obj. ¶¶ 27–28. To support its argument, Plaintiff attached to its objection correspondence between the parties. See ECF No. 33-3. This mainly entailed an email chain, purportedly between MSC and Royal Halo personnel, dated from February 6, 2023 through August 22, 2023. ECF No. 33-3 at 1–42. Specifically, a February 9, 2023 email from Wendy White, whose signature block indicates

that she is a representative of MSC, sent to Ricardo Hernandez, Managing Director of Royal Halo, states that “MSC has fulfilled all its due diligence under the Terms and Conditions of its Bill of Lading / Sea Waybill (available at www.msc.com).” ECF No. 33-3 at 11; ECF No. 33-2 ¶ 3 (identifying a participant in the email chain as Ricardo Hernandez, “Managing Director of Defendant”).

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Related

United States v. Male Juvenile (95-Cr-1074)
121 F.3d 34 (Second Circuit, 1997)
Grace v. Bank Leumi Trust Company Of New York
443 F.3d 180 (Second Circuit, 2006)
Phillips v. Audio Active Ltd.
494 F.3d 378 (Second Circuit, 2007)
Ortiz v. Barkley
558 F. Supp. 2d 444 (S.D. New York, 2008)
Wilds v. United Parcel Service, Inc.
262 F. Supp. 2d 163 (S.D. New York, 2003)
Hubbard v. Kelley
752 F. Supp. 2d 311 (W.D. New York, 2009)
Forman v. Artuz
211 F. Supp. 2d 415 (S.D. New York, 2000)

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Bluebook (online)
Mediterranean Shipping Company (USA) Inc. as agent for MSC Mediterranean Shipping Company S.A. v. Royal Halo LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mediterranean-shipping-company-usa-inc-as-agent-for-msc-mediterranean-nysd-2026.