Praetorian Specialty Insurance v. Auguillard Construction Co.

829 F. Supp. 2d 456, 2010 U.S. Dist. LEXIS 49819, 2010 WL 2026655
CourtDistrict Court, W.D. Louisiana
DecidedMay 20, 2010
DocketCivil Action No. 09-1108
StatusPublished
Cited by11 cases

This text of 829 F. Supp. 2d 456 (Praetorian Specialty Insurance v. Auguillard Construction Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Praetorian Specialty Insurance v. Auguillard Construction Co., 829 F. Supp. 2d 456, 2010 U.S. Dist. LEXIS 49819, 2010 WL 2026655 (W.D. La. 2010).

Opinion

MEMORANDUM RULING

TOM STAGG, District Judge.

Before the court is a motion to dismiss for lack of personal jurisdiction and improper venue or, in the alternative, to transfer venue filed under Rules 12(b)(2) and (3) of the Federal Rules of Civil Procedure and 28 U.S.C. § 1404 by the defendants Celena Sprinkle and Breana Faith Stewart, through their guardians and conservators David Stewart, Patricia Stewart and Tracey Stewart (these parties will be collectively referred to herein as the “Stewarts”). See Record Document 11. The plaintiff in the instant case, Praetorian Specialty Insurance Company (“Praetorian”), has filed a motion in opposition. See Record Document 15. For the reasons which follow, the Stewarts’ motion to dismiss or to transfer venue is DENIED.

I. BACKGROUND

According to the Stewarts, on July 11, 2007, Joe Edward Johnson (“Johnson”) ran through a red light in Baldwin County, Alabama, and hit an automobile driven by Tracey Stewart. See Record Document 11 at 1. At the time of this automobile accident, there were two passengers in the vehicle with Tracey Stewart; Celena Sprinkle was in the front passenger seat, and her daughter, Breana Faith Stewart, was in the back seat in a child’s seat. See id. While Tracey Stewart was hurt during this incident, it seems that Celena Sprinkle and Breana Faith Stewart incurred the greater injuries. See id. at 1-2. The Stewarts represent that as a result of the accident Celena Sprinkle sustained a brain injury and is now mentally incapacitated, and Breana Faith Stewart was rendered quadriplegic. See id.

The Stewarts initiated litigation concerning this matter in Alabama, asserting claims against several parties, including Auguillard Construction Company (“Auguillard”). See id. at 2. At or around the time of the accident described above, Auguillard was one of several general contractors hired to remove debris remaining from Hurricane Katrina in Jefferson Parish, Louisiana. See Record Document 1 at 3. It appears that the Stewarts believe that at the time of the accident at issue, John[460]*460son was either employed by Auguillard or had some other legally significant connection to Auguillard. See Record Document 11 at 2. Accordingly, the Stewarts asserted that Auguillard was liable for Johnson’s actions due to negligent hiring and retention practices with respect to its subcontractors and workers. The Stewarts filed a motion which, when granted, dismissed Auguillard without prejudice from the Alabama lawsuit in July of 2009.1 The Stew-arts then filed a separate, similar civil lawsuit against Auguillard and another defendant in the Civil District Court for the Parish of Orleans on August 24, 2009. The Orleans Parish suit was subsequently removed to the Eastern District of Louisiana. See id.

At the time of the automobile accident at issue, Praetorian had issued two policies of liability insurance to Auguillard, a commercial auto policy and a commercial general liability policy, establishing Praetorian’s interest in this suit and all related lawsuits. See Record Document 1. According to Praetorian, Johnson was an employee of another contractor performing work in south Louisiana at the time of the accident, not an employee of Auguillard. Praetorian further argues that Johnson’s presence in Alabama at the time of the auto accident was not related to any activity of Auguillard, ie., he was not an employee of Auguillard or on a mission for Auguillard at the time of the accident. Moreover, Praetorian asserts the vehicle driven by Johnson at the time of the accident was not owned by Auguillard. Accordingly, Praetorian initiated the instant case in this court on July 6, 2009, seeking a declaratory judgment recognizing that the policies of insurance issued by Praetorian to Auguillard provide no coverage for damages and losses arising from and/or related to the vehicular accident involving the Stewarts and Johnson. See id. at 2-8. Subsequently, the Stewarts filed the pending motion to dismiss or to transfer venue. See Record Document 11.

II. LAW AND ANALYSIS

In their present motion, the Stewarts ask that this court dismiss Praetorian’s lawsuit for lack of personal jurisdiction and improper venue, or, in the alternative, to transfer this action to the Eastern District of Louisiana. See Record Document 11. Each of these arguments will be considered in turn.

A. Personal Jurisdiction.

When nonresident defendants, like the Stewarts, move to dismiss for lack of personal jurisdiction under Rule 12(b)(2) of the Federal Rules of Civil Procedure, the plaintiff bears the burden of demonstrating the district court’s jurisdiction over the defendants. See Gardemal v. Westin Hotel Co., 186 F.3d 588, 592 (5th Cir.1999). “When, as in this ease, the district court rules on the motion without an evidentiary hearing, the plaintiff may satisfy its burden by presenting a pñma facie case for jurisdiction.” See id. “In [461]*461deciding whether a prima facie case has been made, uncontroverted allegations in the plaintiffs complaint must be taken as true, and conflicts between the facts contained in the parties’ affidavits must be resolved in the plaintiffs favor.” Id. (citation and quotations omitted).

The requirement that a court have personal jurisdiction over a defendant is intended to protect a defendant’s individual liberty interests. See Ins. Corp. of Ireland, Ltd. v. Compagnie des Bauxites de Guinee, 456 U.S. 694, 702, 102 S.Ct. 2099, 2104, 72 L.Ed.2d 492 (1982). Because the requirement of personal jurisdiction represents an individual right, it can, like other such rights, be waived. See id., at 703, 102 S.Ct. at 2105. “A variety of legal arrangements have been taken to represent express or implied consent to the personal jurisdiction of the court.” Id. Thus, one method of establishing a prima facie case of personal jurisdiction is for the plaintiff to establish that the defendant has waived objection to or consented to the personal jurisdiction of the court.2

In the absence of evidence of the defendant’s consent, a federal court sitting in diversity may determine whether personal jurisdiction exists by ascertaining:

[I]f (1) the state’s long-arm statute applies, as interpreted by the state’s courts; and (2) if due process is satisfied under the fourteenth amendment to the United States Constitution. A district court must determine whether both the forum state’s long-arm statute and federal due process permit the court to exercise personal jurisdiction.

Johnston v. Multidata Sys. Intern. Corp., 523 F.3d 602, 609 (5th Cir.2008) (citations and quotations omitted).

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Bluebook (online)
829 F. Supp. 2d 456, 2010 U.S. Dist. LEXIS 49819, 2010 WL 2026655, Counsel Stack Legal Research, https://law.counselstack.com/opinion/praetorian-specialty-insurance-v-auguillard-construction-co-lawd-2010.