National Union Fire Insurance Co. of Pittsburgh, PA v. BP Amoco P.L.C.

319 F. Supp. 2d 352, 2004 U.S. Dist. LEXIS 1258, 2004 WL 203109
CourtDistrict Court, S.D. New York
DecidedJanuary 30, 2004
Docket03 Civ. 0200(GEL)
StatusPublished
Cited by22 cases

This text of 319 F. Supp. 2d 352 (National Union Fire Insurance Co. of Pittsburgh, PA v. BP Amoco P.L.C.) 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
National Union Fire Insurance Co. of Pittsburgh, PA v. BP Amoco P.L.C., 319 F. Supp. 2d 352, 2004 U.S. Dist. LEXIS 1258, 2004 WL 203109 (S.D.N.Y. 2004).

Opinion

OPINION AND ORDER

LYNCH, District Judge.

Plaintiffs National Union Fire Insurance Company of Pittsburgh, PA (“National Union”), and Associated Electric & Gas Insurance Services Ltd. (“AEGIS”) seek a declaratory judgment either finding certain insurance contracts void ab initio, because defendants misrepresented their eligibility for coverage, or finding claims made under them not covered. Defendants removed this action from Supreme Court, New York County, pursuant to 28 U.S.C. § 1441(a), and the Court denied plaintiffs’ motion to remand. Nat’l Union Fire Ins. Co. v. BP Amoco P.L.C., 03 Civ. 0200, 2003 WL 1618534 (S.D.N.Y. Mar. 27, 2003) (“Nat’l Union I”). Defendants then moved to dismiss based on forum non conveniens, which the Court also denied. Nat’l Union Fire Ins. Co. v. BP Amoco P.L.C., No. 03 Civ. 0200, 2003 WL 21180421 (S.D.N.Y. May 20, 2003) (“Nat’l Union II”). Various subcategories of defendants now bring a number of motions to dismiss for lack of personal or subject matter jurisdiction pursuant to Rules 12(b)(2) and 12(b)(1), respectively, of the Federal Rules of Civil Procedure. For the reasons that follow, the motion of the self- *356 styled “Wrongly Named Defendants” to dismiss for lack of subject matter jurisdiction will be granted and the other motions denied.

BACKGROUND

Nat’l Union II sets forth most of the relevant facts, see 2003 WL 2118042Í, at *1-3, and they will be recited here only to the extent necessary to the disposition of this motion. In 1998, BP 1 devised an “Open Cover” insurance policy for itself, its subsidiaries, affiliates, joint-venture partners, and associated entities involved in oil and gas projects worldwide. Id. at *1. (Carcich Aff., Ex. 2 at 2 ¶ 4.) The Open Cover allowed BP to “declare” certain projects that BP selected for coverage within a specified period of time. 2 Id. It covered, as “Principal Insureds,” BP, its subsidiaries, affiliates, associates, and “interrelated companies of every tier,” as well as, at BP’s option but subject to the filing of the proper declaration, joint-venturers, project managers, and financiers. (Carcich Aff., Ex. 2 at 000116.) The Open Cover also gave BP the right to extend its coverage to contractors, architects, engineers, consultants, suppliers, agents, manufacturers, vendors, and licensors, again provided that BP named such entities in the underlying declarations at the time it made those declarations. (Id.) Under the Open Cover, BP declared about thirty projects worldwide. (Wrongly Named Ds. Br. 1.)

BP enlisted “Aon Risk Services (‘Aon’), an insurance broker with offices in London and the United States, to identify insurers willing to participate in the Open Cover and to coordinate project declaration and claims processing.” Nat’l Union II, 2003 WL 21180421, at *1. BP gave Aon information about the projects BP wanted to declare, and employees of Aon then solicited insurers to participate in the Open Cover. According to plaintiffs, “Aon solicited National Union in New York, and all negotiations for the National Union policy were conducted with National Union in New York, either in person, via e-mail, telefax or over the phone with National Union’s New York office”; and “National Union’s underwriters executed and issued the policy in New York and delivered the policy to Aon either by hand in New York or by mail from National Union’s New York office to Aon in Chicago.” (Ps. Br. in Opp. to P.J. Mots. 4.) Moreover, BP’s employee William Siebenaler, who bears responsibility for administering the Open Cover, met with National Union representatives in New York on at least one occasion. (Sie-benalef Aff. ¶ 5.)

National Union and AEGIS, two of the fifteen insurers that comprise the international consortium that subscribed to the Open Cover (Foreign BP Ds. Br. 3), allege that certain projects declared by defendants-an assortment of BP subsidiaries, affiliates, joint-venturers, and entities unaffiliated with BP except through their alleged work on BP-affiliated oil and gas projects-do not qualify for coverage because of. misrepresentations in certain declarations filed by BP. In the alternative, plaintiffs allege that certain claims, even if arising out of valid, covered projects, do not fall within the scope of the Open Cover *357 policy. Nat’l Union II, 2003 WL 21180421, at *2.

For purposes of the present motions, defendants fall into three principal categories: (1) BP subsidiaries and affiliates (“the Foreign BP Defendants”), (2) non-BP joint-venturers or co-owners of projects declared for coverage by BP (“the Non-BP Defendants”), and (3) present and former BP entities and other business entities allegedly related to' BP, but which claim no interest, either as participant or owner, in any declared project and do not claim to be insured by the Open Cover (“the Wrongly Named Defendants”). 3 The former two categories of defendants move to dismiss for lack of personal jurisdiction, arguing that New York’s long-arm statute does not reach them, and in the alternative, that even if it does, to exercise personal jurisdiction over them under the circumstances would violate the Due Process Clause. The latter category of defendants move to dismiss for lack of subject matter jurisdiction, arguing that, as between them and plaintiffs, no case or controversy exists.

DISCUSSION

I. The Motions to Dismiss for Lack of Personal Jurisdiction

A. Standard on a Motion to Dismiss Pursuant to Fed.R.Civ.P. 12(b)(2)

On a motion to dismiss pursuant to Fed. R.Civ.P. 12(b)(2), the plaintiff bears the burden to establish jurisdiction. In re Magnetic Audiotape Antitrust Litigation, 334 F.3d 204, 206 (2d Cir.2003). Where no jurisdictional discovery has been conducted, allegations of jurisdictional fact must be construed in the light most favorable to the plaintiff, CutCo Indus., Inc. v. Naughton, 806 F.2d 361, 365 (2d Cir.1986), and the motion must be denied if those allegations suffice as a matter of law. In re Magnetic Audiotape, 334 F.3d at 206; PDK Labs, Inc. v. Friedlander, 103 F.3d 1105, 1108 (2d Cir.1997) (“A plaintiff facing a Fed.R.Civ.P. 12

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Bluebook (online)
319 F. Supp. 2d 352, 2004 U.S. Dist. LEXIS 1258, 2004 WL 203109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-union-fire-insurance-co-of-pittsburgh-pa-v-bp-amoco-plc-nysd-2004.