Ove Akerblom v. Ezra Holdings Limited

509 F. App'x 340
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 28, 2013
Docket12-20182
StatusUnpublished
Cited by15 cases

This text of 509 F. App'x 340 (Ove Akerblom v. Ezra Holdings Limited) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ove Akerblom v. Ezra Holdings Limited, 509 F. App'x 340 (5th Cir. 2013).

Opinion

PER CURIAM * :

Ove William Akerblom contests the district court’s dismissing, on the following grounds, his action against Defendants: Ernas Subsea Services, L.L.C., for failure to state a claim; Ezra Holdings Limited, Ezra Energy Services PTE Limited, and Ernas Offshore Limited, for lack of personal jurisdiction; and Lee Chye Tek Lionel, for forum non conveniens. Primarily at issue is the court’s denying Akerblom’s motion to remand, pursuant to its ruling Subsea was improperly joined. Other issues include the denial of his motions to amend his complaint and to conduct additional personal-jurisdiction discovery against Holdings, Energy, and Offshore. Essentially for the reasons stated in the district court’s three extremely detailed and comprehensive opinions, discussed infra, the judgment is AFFIRMED.

I.

Akerblom, a Texas citizen, is the former majority shareholder and president of Intrepid Global Pte. Ltd. Lee, a citizen of Singapore, is managing director of Holdings. Lee maintains a residence in Texas and resides there occasionally.

Energy and Offshore are subsidiaries of Holdings. Holdings, Energy, and Offshore are foreign corporations with principal places of business in Singapore. None maintain Texas offices, are registered to do business in Texas, provide goods or services in Texas or its territorial waters, or pay Texas taxes. Subsea, a Delaware corporation, with its principal place of business in Houston, Texas, is a subsidiary of Energy.

The following facts are taken primarily from Akerblom’s state-court petition and post-removal, federal-court amended complaint (pleadings). In July 2009, Lee approached Akerblom, regarding Holdings’ acquiring Intrepid. Akerblom rejected a verbal and subsequent written offer, but Lee and Holdings’ chief financial officer (CFO) continued to pursue acquisition of Intrepid. In October'2009, Lee proposed *342 Akerblom sell 90 percent of his Intrepid stock (with his retaining the remaining 10 percent) in exchange for: Holdings stock and cash; and a salaried, five-year employment contract with Intrepid/Subsea (the companies were to be integrated). Lee also promised Intrepid would be capitalized as necessary, and projected not only that Intrepid would realize nearly $300 million in revenue growth, but also that Akerblom’s retained Intrepid stock would generate $22 million in annual profit over a five-year period. Despite other potential acquirers of Intrepid, Akerblom agreed to these terms. (In response to the court’s requiring supplemental briefing for, and in support of, Lee’s motion to dismiss for forum non conveniens, discussed infra, Lee provided as exhibits three contracts signed by Akerblom in Singapore, all of which included Singaporean choice-of-law and venue clauses, stating the terms of Akerblom’s employment and the stock swap. At the time these contracts were signed, Defendants allege Akerblom was residing in Singapore; he does not dispute that allegation.)

For 18 months thereafter, Akerblom and Intrepid employees supported Holdings’ subsidiaries, but Akerblom’s and Lee’s relationship deteriorated. Akerblom identified, and recommended, various business opportunities for Intrepid, including expansion into West Africa; but, Lee declined them all, causing Intrepid’s $400 million revenue loss. In Spring 2010, Holdings began diverting business from Intrepid to Subsea (integration was apparently incomplete). Soon after, Lee stated Akerblom would be the principal for global marine construction, yet stated later he would be only the operations manager. (It is unclear from Akerblom’s pleadings whether he would hold this position for Intrepid, Subsea, or the joint venture once integration was completed.)

Dissatisfied, and seeking to unwind the transaction, Akerblom made clear his desire to part ways with Holdings and Lee. During late 2010, Lee pressured Akerblom to repurchase his Intrepid stock for $650,000 and return his Holdings shares, threatening his financial ruin if he refused; Holdings’ general counsel later echoed that threat. Lee also caused the termination of Akerblom’s service agreement with Intrepid, caused a Holdings subsidiary to breach a contract with a separate company owned by Akerblom, and directed Holdings personnel to fire Akerblom from that separate company. (Holdings’ relationship with this separate company is unclear.) Finally, Lee threatened to initiate legal proceedings against Akerblom in Singapore and prevent Akerblom’s defending them, by causing his visa to be revoked.

In January 2011, Akerblom sued Defendants in Texas state court, asserting myriad contract and tort claims. In response, Defendants removed this action under 28 U.S.C. § 1441, invoking alienage jurisdiction under 28 U.S.C. § 1332(a)(2); Subsea moved to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim; Holdings, Energy, and Offshore moved to dismiss, inter alia, for lack of personal jurisdiction; and Lee moved to dismiss for forum non conveniens.

In reply to Defendants’ papers, Aker-blom: amended his state-court petition (complaint), pursuant to Federal Rule of Civil Procedure 15(a)(1) (one amendment without leave of court); and moved to remand, contending Subsea’s being a defendant divested the district court of removal (28 U.S.C. § 1441(b)(2)) and subject matter (28 U.S.C. § 1332(a)(2)) jurisdiction. He supplemented that motion with an affidavit, which presented additional facts supporting his claims.

*343 In opposition to the remand motion, Defendants invoked improper joinder. In support, they asserted Akerblom included Subsea as a defendant only in an attempt to keep this action in state court.

In the above-referenced, three extremely detailed and comprehensive opinions, the district court ruled in favor of Defendants, as follows. In July 2011, the court ruled Subsea improperly joined and, therefore, denied Akerblom’s motion to remand. Akerblom v. Ezra Holdings, Ltd., No. 4:11-CV-00694, 2011 WL 2960162 (S.D. Tex. 19 July 2011). Following oral argument in December 2011, the court in January 2012: granted Subsea’s Rule 12(b)(6) motion, and denied Akerblom’s motion to amend his complaint a second time; and granted Holdings’, Energy’s, and Offshore’s motion to dismiss, based on lack of personal jurisdiction, and denied Aker-blom’s request for additional personal-jurisdiction discovery. Akerblom v. Ezra Holdings, Ltd., 848 F.Supp.2d 673 (S.D.Tex.2012). At the hearing in December 2011, the court also heard argument on Lee’s forum non conveniens motion, but postponed ruling on it, pending receipt of the above-described, then-ordered supplemental briefing on Singapore’s being an alternative and adequate forum.

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509 F. App'x 340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ove-akerblom-v-ezra-holdings-limited-ca5-2013.