Miller v. Berman

289 F. Supp. 2d 1327, 2003 U.S. Dist. LEXIS 23507, 2003 WL 22462296
CourtDistrict Court, M.D. Florida
DecidedJuly 23, 2003
Docket6:03-cv-00293
StatusPublished
Cited by11 cases

This text of 289 F. Supp. 2d 1327 (Miller v. Berman) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Berman, 289 F. Supp. 2d 1327, 2003 U.S. Dist. LEXIS 23507, 2003 WL 22462296 (M.D. Fla. 2003).

Opinion

ORDER

ANTOON, District Judge.

This case involves the purchase of a highly customized catamaran sailboat in *1329 South Africa. Plaintiff James Miller (“Mr. Miller”) has filed a four-count complaint against Defendants Phillip Berman (“Mr. Berman”) and The MultiHull Company, Inc. (“TMC”) (collectively “Defendants”) alleging negligent misrepresentation, breach of express warranty, false advertising and joint venture liability. Defendants have moved to dismiss the complaint for lack of personal jurisdiction and improper venue pursuant to Federal Rule of Civil Procedure 12(b)(2) and (3) or, in the alternative, to transfer the case pursuant to 28 U.S.C. § 1406(a). In accordance with Venetian Salami Co. v. J.S. Parthenais, 554 So.2d 499 (Fla.1989), a limited evidentiary hearing was held before this Court on June 30, 2003 in order to resolve the factual issues relating to jurisdiction and venue. Upon consideration of the parties’ submissions and oral argument, the Court shall grant Defendants’ motion to dismiss for lack of personal jurisdiction and transfer this case to an appropriate venue.

I. Factual Background

Mr. Berman is the President of TMC, a corporation organized under the laws of the State of Ohio with its principal place of business in Montgomery County, Pennsylvania. (Doc. 6 at 2). TMC is a broker for new and used multihull catamarans and markets its brokering services via internationally-read trade magazines and an Internet website that it maintains in Pennsylvania. TMC does not regularly conduct business in the State of Florida. In fact, Mr. Berman does not hold a Florida Yacht Brokers License, and thus cannot directly broker the sale of used yachts in Florida. However, Mr. Berman does attend a boat show in Miami at least once a year.

On September 25, 2001, TMC entered into an agreement with Cougar Marine CC (“Cougar Marine”), a South African yacht builder located in Durban, South Africa. Under the agreement, TMC agreed to become the sole North American distributor of the F-41 Catamaran. As the exclusive distributor of the F-41 Catamaran, Defendants would advertise Cougar Marine’s product in trade magazines and on TMC’s website for a commission on the sale of a Cougar Marine boat.

On February 27, 2002, Mr. Miller sent Defendants an unsolicited e-mail expressing an interest in purchasing a used catamaran sailboat. Mr. Miller expressed a particular interest in the F-41 Catamaran built by Cougar Marine. After an exchange of several e-mails and telephone conversations, it became clear to Defendants that Mr. Miller was a professional boat builder seeking to purchase an extensively customized sailboat that was significantly different from the standard F-41 Catamaran constructed by Cougar Marine and advertised by Defendants. (Pi’s Ex. 5 at 3). As a result, Mr. Berman explained to Mr. Miller that TMC could not negotiate such a customized deal, but advised Mr. Miller to consult with Jim Morrow (“Mr. Morrow”), President of Cougar Marine, to determine whether Mr. Morrow could build a catamaran according to Mr. Miller’s highly customized specifications (Decl. of Mr. Berman, Doc. 5 at ¶ 9). During these initial communications with Defendants, Mr. Miller was a resident of the State of Florida.

Over the past twenty years, Mr. Miller, an engineer, has been actively involved in the boat making industry. For example, Mr. Miller has spent approximately ten years as a sail maker and has also spent a substantial part of his career involved in building molds and working on the internal systems of boats, including engine installation, electrical wiring and plumbing. Mr. Miller has built dagger boards and center boards and has built an entire tooling for a *1330 thirty-two foot catamaran including cross arms, hulls, and decks. Additionally, Mr. Miller is an avid sailor and concedes that he has sailed most of his life. 1 In sum, Mr. Miller has extensive knowledge with regard to the intricacies of boat making and is a sophisticated sailor.

On May 8, 2002, Mr. Miller traveled to South Africa to meet with Mr. Morrow and discuss the purchase of a customized Cougar Marine boat. While in South Africa, Mr. Miller toured the Cougar Marine factory and met with Mr. Morrow. Based upon Mr. Miller’s experience in South Africa and his expertise in the boat industry, Mr. Miller engaged in negotiations with Mr. Morrow regarding the customized sailboat. After extensive negotiations with Mr. Morrow, Mr. Miller drafted in part and signed a contract for the purchase of a highly customized catamaran to be built by Cougar Marine for $297,000. 2

There were many special features that Mr. Miller insisted be included in the design and manufacture of his boat. For instance, Mr. Miller contracted for an epoxy boat that was spray-painted, rather than the balsa core boat initially advertised by TMC. 3 He also requested a 44-foot boat rather than the 41-foot boat originally offered by Cougar Marine. In addition, Mr. Miller wanted customized dag-gerboards built to his own design and also insisted on designing the extended stems of the sailboat. Last, Mr. Miller wanted his boat to be “CE certified,” a European classification. 4 Overall, the catamaran sailboat Mr. Miller agreed to buy from Mr. Morrow was significantly different from the catamaran sailboat advertised by TMC on behalf of Cougar Marine.

Defendants were not present and did not participate in the negotiations preceding the contract between Mr. Miller and Mr. Morrow. Also, Defendants are not in any way a party to the purchase agreement. In fact, while Mr. Miller was negotiating the contract with Mr. Morrow in South Africa, Mr. Berman was traveling in France and was unavailable for discussion regarding the conditions of the contract and the purchase of the customized catamaran. (Def.’s Ex. 6). In sum, Defendants’ participation in the transaction merely involved introducing Mr. Miller to Mr. Morrow and accepting a fifteen percent commission on the sale of the Cougar Marine catamaran sailboat.

Soon after the signing of the purchase agreement with Cougar Marine, Mr. Miller and his family relocated to South Africa in order to oversee the construction of the boat. During that time, a number of formal and informal sub-agreements were *1331 made between Mr. Morrow and Mr. Miller with regard to the construction of the catamaran. Defendants were not a party and had no further knowledge of these additional sub-agreements. On September 12, 2002, a fire occurred in the Cougar Marine factory which resulted in the end of construction of Mr. Miller’s catamaran and the rapid demise of the business relationship between Mr. Miller and Mr. Morrow.

In late October, Mr. Miller wanted to rescind his contract with Cougar Marine and requested the return of approximately $103,950 that he had already paid as a deposit and in progress payments for the construction of his boat. (Naidu Deck, at 3).

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Bluebook (online)
289 F. Supp. 2d 1327, 2003 U.S. Dist. LEXIS 23507, 2003 WL 22462296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-berman-flmd-2003.