Petro Welt Trading ges.M.B.h v. Edward Brinkmann

CourtDistrict Court of Appeal of Florida
DecidedNovember 8, 2024
Docket6D2023-0446
StatusPublished

This text of Petro Welt Trading ges.M.B.h v. Edward Brinkmann (Petro Welt Trading ges.M.B.h v. Edward Brinkmann) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petro Welt Trading ges.M.B.h v. Edward Brinkmann, (Fla. Ct. App. 2024).

Opinion

SIXTH DISTRICT COURT OF APPEAL STATE OF FLORIDA _____________________________

Case No. 6D2023-0446 Lower Tribunal No. 2018-CA-002531-XX _____________________________

PETRO WELT TRADING GES.M.B.H, PETRO WELT TECHNOLOGIES GMBH f/k/a PETRO WELT TECHNOLOGIES AG, TRADING HOUSE KATOIL, LLC, KATKONEFT, LLC, KATOBNEFT, LLC, and KATOIL-DRILLING, LLC,

Appellants,

v. EDWARD BRINKMANN, MAJAB DEVELOPMENT, LLC, and DOES 1–10,

Appellees. _____________________________

Appeal from the Circuit Court for Collier County. Elizabeth V. Krier, Judge.

November 8, 2024

MURPHY, J.L., Associate Judge.

Edward Brinkmann is accused of embezzling millions of euros from foreign

oil companies.1 After a hostile takeover and some jousting in foreign arenas, the oil

companies filed suit in Collier County, where Brinkmann lived. The trial court

eventually granted summary judgment in favor of Brinkmann and his real estate

1 This case was transferred from the Second District Court of Appeal to this Court on January 1, 2023. company, Majab Development, LLC, for lack of “jurisdiction” and forum non

conveniens—even though neither Brinkmann nor Majab raised those arguments.

The trial court also granted summary judgment for Brinkmann and Majab on the

merits of counts I through IX of the complaint. Damages were a focus, with the trial

court concluding it was “impossible” for the appellants to prove compensable harm.

Finally, the trial court dismissed count X for forum non conveniens, finding “Florida

is not the most convenient forum” for the claim.

The oil companies raise fifteen points of error. We agree with many of them.

Because the trial court deprived the oil companies of due process, weighed evidence

on summary judgment, canonized a foreign criminal investigative report, and abused

its discretion by dismissing count X for forum non conveniens, we reverse.2

I

A

Brinkmann’s mother founded Petro Welt Technologies AG, an Austrian

holding company.3 AG hired Brinkmann in 2006, eventually promoting him to

2 Because Brinkmann and Majab did not cross-appeal the order granting summary judgment on their counterclaims, we do not address that portion of the order. The same goes for the trial court’s dismissal of the Doe defendants. 3 Petro Welt Technologies AG was formerly known as C.A.T. Oil AG. The parties have referred to the entity as “AG” or “PeWeTe.” For ease and consistency, we refer to it as “AG.” Because we generally need not distinguish between the 2 create and oversee a new international asset procurement process for AG’s operating

subsidiaries, which are Russian oil-drilling companies. Brinkmann designed the new

procurement process, which AG’s boards approved, and he exercised almost

unilateral control over the purchasing decisions and mechanics of the deals.

Those mechanics are complicated, but the minutiae are unnecessary to

resolving this appeal. Essentially, Brinkmann would negotiate the terms of an asset

acquisition and arrange for the asset’s delivery to the appropriate operating

subsidiary through a number of hand-offs between corporate affiliates and

consultants. Each hand-off involved an additional markup over the originally

negotiated price. Despite the many markups, the new procurement process was

profitable.

In 2014, ownership of the oil companies changed hands in a hostile takeover.

The new owners alleged that the Brinkmann-designed markups were created to

siphon millions of euros in corporate profits to shell companies controlled by his

mother. Around this time, Brinkmann moved to Collier County and opened Majab,

a Florida limited liability company—ostensibly for real estate development. But the

oil companies argued that Brinkmann and his mother used it to launder the

procurement scheme’s ill-begotten proceeds. Their experts pointed to large

appellants to resolve this appeal, we refer to them collectively as the “oil companies.”

3 transactions between Majab and Brinkmann’s mother, Brinkmann’s personal use of

Majab’s funds, and other indicia of fraud.

After the hostile takeover, Brinkmann resigned from AG. Though his

employment contract required him to return company property, Brinkmann deleted

his AG emails to prevent the new owners from reviewing them. He also instructed

subordinates to delete other AG email accounts. Among the data wiped from

company servers were two files titled “Hard Sun – Cat Gmbh us$ EB 280113.doc”

and “Hard Sun – Cat Gmbh us$ EB 300113.doc.” Hard Sun was one of the

companies allegedly used to impose unnecessary markups.

Unsurprisingly, the international intrigue spawned international litigation. Of

note, an Austrian criminal prosecutor conducted a three-year investigation of the

procurement scheme and related conduct. Brinkmann contended this investigation

was retribution from the oil companies’ new owners. Eventually, the Austrian

prosecutor issued a report declining to bring criminal charges.

B

In 2018, the oil companies sued Brinkmann and Majab in circuit court. The

third amended complaint contained ten claims alleging fraudulent and criminal

conduct.4 Early on, Brinkmann and Majab moved to dismiss the first nine claims for

4 The ten claims are (1) fraud; (2) unjust enrichment; (3) conversion; (4) civil theft under section 772.11 of the Florida Statutes; (5) fraudulent transfer; (6) violation of the Florida Racketeer Influenced and Corrupt Organization Act, sections 4 forum non conveniens. The trial court denied the motion. When the oil companies

added the final claim for breach of contract in the third amended complaint,

Brinkmann again moved to dismiss it for forum non conveniens. About the same

time, Brinkmann and Majab also moved for summary judgment on the original nine

claims.

Three months before the first summary judgment hearing, the oil companies

filed a spoliation motion alleging Brinkmann intentionally destroyed evidence. One

of the oil companies’ expert reports concluded that Brinkmann and other associates

intentionally wiped 71,000 files and 37 email accounts from servers. Though set for

hearing in early 2022, the trial court canceled the spoliation hearing after granting

summary judgment for Brinkmann and Majab on all ten claims and alternatively

dismissing count X for forum non conveniens.

The order covers much ground. At the outset, the trial court determined it

lacked “jurisdiction” over the claims—an argument neither party had raised—

because the claims “belong in Austria and/or Germany.” The basis for this

jurisdictional finding was murky, though it contained hallmarks of a forum non

conveniens analysis. The trial court next found the oil companies waived their

895.01 to 895.06 of the Florida Statutes; (7) conspiracy to commit civil violations of Florida RICO; (8) violation of the Florida Civil Remedies for Criminal Practices Act, section 772.103 of the Florida Statutes; (9) conspiracy to commit violations of the FCRCPA; and (10) breach of contract.

5 objection to the Austrian prosecutor’s report by “fil[ing] and encourag[ing] the Court

to rely on evidence and statements made by various witnesses clearly taken and

considered by this prosecutor in said [r]eport.” Over the oil companies’ objection,

the trial court elected to “consider” the report, finding it “well researched and

valuable to the Court” because its findings “impact certain of Plaintiffs’ causes of

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