Metcalfe v. Renaissance Marine, Inc.

566 F.3d 324, 51 V.I. 1219, 2009 U.S. App. LEXIS 10715, 2009 WL 1408523
CourtCourt of Appeals for the Third Circuit
DecidedMay 21, 2009
Docket08-1720
StatusPublished
Cited by436 cases

This text of 566 F.3d 324 (Metcalfe v. Renaissance Marine, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metcalfe v. Renaissance Marine, Inc., 566 F.3d 324, 51 V.I. 1219, 2009 U.S. App. LEXIS 10715, 2009 WL 1408523 (3d Cir. 2009).

Opinions

FISHER, JORDAN and STAPLETON, Circuit Judges

OPINION OF THE COURT

(May 21, 2009)

FISHER, Circuit Judge

This appeal involves a dispute as to whether the District Court of the Virgin Islands erred in dismissing the plaintiffs’ complaint for lack of personal jurisdiction after determining that the Virgin Islands Long-Arm Statute did not reach the defendant and that constitutional due process was not satisfied. Because the District Court failed to construe disputed facts in favor of the plaintiffs, as it was required to do at the motion to dismiss stage, we conclude that it erred in ruling that the plaintiffs were [1223]*1223unable to demonstrate a prima facie case in support of the exercise of personal jurisdiction over the defendant. Therefore, we will reverse and remand to the District Court with instructions that it allow the plaintiffs an opportunity to conduct jurisdictional discovery.

I.

A. Factual History

Richard and Cynthia Metcalfe are residents of the United States Virgin Islands. In April 2006, the Metcalfes purchased a Renaissance Prowler 246 powerboat, two engines, and other equipment from Renaissance Marine, Inc. (Renaissance) for approximately $85,000. Renaissance is a corporation organized under the laws of Florida with its principal place of business in Miami, Florida.

Beyond the aforementioned facts, the parties offer materially different versions of the events that led to this current lawsuit. The Metcalfes allege that they became familiar with Renaissance boats by renting them from See & Ski, a powerboat rental company located on St. Thomas. They aver that See & Ski has at least four boats in its rental fleet that it purchased from Renaissance within a period of six years. Additionally, they contend that Renaissance advertises on its website that its boats can be rented from See & Ski in the Virgin Islands. According to the Metcalfes, Renaissance has sold at least seven boats to Virgin Islands residents in the past few years. The Metcalfes state that while they were in St. John, they negotiated the sale of the Prowler 246 with Renaissance by telephone, fax, and the internet. They assert that Renaissance was fully aware that the ultimate destination of the Prowler 246 was the Virgin Islands and that Renaissance shrink-wrapped the boat for shipping and took it to the shipper for the Metcalfes.

In contrast, Renaissance contends that the Metcalfes traveled to Miami where they purchased the Prowler 246. Renaissance also states that all of its sales, including this one, are governed by a ten-year limited warranty and a purchase agreement with additional terms and conditions. Renaissance specifically notes that the warranty contains a forum selection clause which provides that the interpretation and enforcement of [1224]*1224the warranty is governed by Florida law and that any action shall be brought in Miami-Dade County.1

Concerning the warranty, the Metcalfes assert that Renaissance contacted them in the Virgin Islands one month after they received delivery of the Prowler 246 in an effort to have them sign the warranty, which they refused to do. The Metcalfes state that the warranty was never presented to them until after the sale was complete and that one reason why they did not sign it is because they did not agree with the forum selection clause.

On December 25, 2006, the Metcalfes discovered that the Prowler 246 had partially sunk. They had a marine surveyor assess the defects in the Prowler 246 and the likely cause of the sinking. The Metcalfes shared the findings in the surveyor’s report with Renaissance, and although the company initially proposed to cure the problems with the Prowler 246 in the Virgin Islands and subsequently offered to transport it to Florida to make the necessary repairs, no remedy was ultimately provided.

B. Procedural History

On October 15, 2007, the Metcalfes brought suit in the District Court of the Virgin Islands alleging breach of express warranty, breach of implied warranties, breach of the covenant of good faith and fair dealing, misrepresentation, and liability under the Magnuson-Moss Warranty — Federal Trade Commission Improvement Act. On November 29, 2007, Renaissance moved to dismiss the matter for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure 12(b)(2). On December 13, 2007, the parties stipulated to an extension of time for the Metcalfes to oppose the motion to dismiss, giving them until December 21,2007, to do so. The parties orally stipulated to an additional extension of time on December 20, 2007, allowing the Metcalfes until January 9, 2008, to file an opposition to the motion to dismiss, but counsel for the Metcalfes [1225]*1225neglected to file this stipulation with the District Court. Consequently, on January 2, 2008, the District Court issued an order dismissing the matter because of the Metcalfes’ failure to meet their burden of establishing the District Court’s jurisdiction over Renaissance.

Notwithstanding the District Court’s order, on January 9, 2008, the Metcalfes filed an opposition to Renaissance’s motion to dismiss and also filed a motion for reconsideration arguing that the order should be vacated to correct clear error and prevent manifest injustice. Renaissance subsequently filed a reply to the opposition to the motion to dismiss and an opposition to the motion to reconsider. Renaissance also filed a motion to supplement its original motion to dismiss.

In an effort to prevent further overlapping and conflicting pleadings, the District Court held a status conference on February 6, 2008. The District Court determined that it would consider the Metcalfes’ opposition to Renaissance’s motion to dismiss because, despite the oversight by the Metcalfes’ counsel, ignoring their opposition would prejudice them. Thus, the District Court decided to reopen the case to determine whether dismissal of the complaint was appropriate; however, the District Court concluded that it would not consider any filings submitted after the status conference and instead would rule directly on the motion to dismiss, giving consideration to the Metcalfes’ opposition to the motion.2

Following the status conference, the Metcalfes and Renaissance nonetheless both continued to submit filings to the District Court. Specifically, the Metcalfes filed a reply to Renaissance’s opposition to the motion for reconsideration and a document entitled a “Notice of Filing of Supplemental Declaration of Richard Metcalfe with Previously Omitted Exhibits.” Renaissance filed a motion to amend its opposition to the motion for reconsideration.

On February 15, 2008, the District Court ruled on Renaissance’s motion to dismiss, and indicated in a footnote in its memorandum opinion that it did not consider these additional filings. The District Court determined that the Metcalfes failed to meet their burden of showing that jurisdiction over Renaissance was appropriate under the Virgin Islands Long-Arm Statute and, even if the statute was somehow satisfied, failed [1226]*1226to show that the exercise of jurisdiction over Renaissance would comport with constitutional due process.

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Bluebook (online)
566 F.3d 324, 51 V.I. 1219, 2009 U.S. App. LEXIS 10715, 2009 WL 1408523, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metcalfe-v-renaissance-marine-inc-ca3-2009.