Rivera-Olivera v. Antares Oil Services, LLC

957 F. Supp. 2d 119, 2013 WL 3777097, 2013 U.S. Dist. LEXIS 101462
CourtDistrict Court, D. Puerto Rico
DecidedJuly 18, 2013
DocketCivil No. 10-2040 (FAB)
StatusPublished

This text of 957 F. Supp. 2d 119 (Rivera-Olivera v. Antares Oil Services, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rivera-Olivera v. Antares Oil Services, LLC, 957 F. Supp. 2d 119, 2013 WL 3777097, 2013 U.S. Dist. LEXIS 101462 (prd 2013).

Opinion

OPINION AND ORDER1

BESOSA, District Judge.

Before the Court are defendants Repsol Petróleo, S.A. (“RPSA”) and Repsol YPF Trading y Transporte, S.A.’s (“RYTTSA”) motions to dismiss for lack of personal jurisdiction and failure to state a claim upon which relief can be granted. (Docket No. 99; Docket No. 100.) For the reasons discussed below, the Court GRANTS the motions as to RPSA and RYTTSA.2

I. BACKGROUND

A. Factual History

At about 12:30 a.m. on October 23, 2009, multiple fuel storage tanks exploded at the Gulf Oil Facility in Bayamon, Puerto Rico. (Docket No. 1 at p. 2.) As the M/T Cape Bruny unloaded its cargo of unleaded gasoline at the Facility, it overfilled the storage tanks, allowing the gasoline to spread and find an ignition source. Id. The explosion and subsequent fire created a large plume of smoke and spread hazardous materials over Bayamon, San Juan, and other neighboring municipalities. Id. at p. 3. The explosion registered on the Richter scale. Id. at p. 8.

Repsol Petróleo, S.A. (“RPSA”) is a Spanish sociedad anónima, “akin to a cor[121]*121poration,” with its headquarters and principal place of business in Madrid, Spain. (Docket No. 99-1 at p. 1.) Repsol YPF, S.A. owns 99.97% of RPSA. Id. at p. 2. RPSA is not registered to do business in Puerto Rico; does not own or lease any real property in Puerto Rico; does not lease or maintain any office in Puerto Rico; has no employees, shareholders, officers, or directors in Puerto Rico; has no bank accounts in Puerto Rico; and has no telephone numbers listed in any directory in Puerto Rico. Id. RPSA does not advertise in Puerto Rico and has never filed a lawsuit in Puerto Rico. Id. at p. 3. RPSA shipped three deliveries of gasoline to Puerto Rico in 2009. Id. at p. 9. These deliveries totaled 772,766 barrels and generated $51,119,439 in gross revenue for RPSA. Id. at pp. 9-10.

RYTTSA is also a Spanish sociedad anónima with its headquarters and principal place of business in Madrid, Spain. (Docket No. 100-1 at p. 2.) Like RPSA, RYTTSA is not registered to do business in Puerto Rico; does not own or lease any real property in Puerto Rico; does not lease or maintain any office in Puerto Rico; has no employees, shareholders, officers, or directors in Puerto Rico; has no bank accounts in Puerto Rico; and has no telephone numbers listed in any directory in Puerto Rico. Id. RYTTSA has never filed a lawsuit in Puerto Rico. Id. at p. 3. Repsol YPF, S.A. owns 98.36% of RYTTSA and RPSA owns 1.64% of RYTTSA. Id. RYTTSA shipped four deliveries of gasoline to Puerto Rico in 2009. Id. at p. 15. These deliveries totaled 847,377 barrels and generated $57,692,228 in gross revenue for RYTTSA. Id. at pp. 16-18.

Plaintiffs allege that RPSA was the “voyage charterer” of the M/T Cape Bruny at the time of the explosion. (Docket No. 1 at p. 4.) Plaintiffs also allege that RYTTSA was acting as' RPSA’s agent when it chartered the M/T Cape Bruny to deliver unleaded gasoline to Puerto Rico. Id. at p. 6. RPSA denies that it was the voyage charterer of the M/T Cape Bruny and asserts that RYTTSA inadvertently used a form contract with RPSA’s name on it when negotiating the charter party.3 (Docket No. 99-1 at p. 2; Docket No. 137-1 at pp. 5-6.) RYTTSA also maintains that this was an oversight, and that it corrected the error over the phone while the tanker was en route to San Juan. (Docket No. 137-10 at pp. 17-18.) RYTTSA thus admits to being the voyage charterer of the M/T Cape Bruny at the time of the explosion but asserts that it was not involved with the discharge of the unleaded gasoline or the operation of the Gulf Oil Facility. (Docket No. 100-1 at pp. 4-5.)

The charter party is governed by English Law and required RYTTSA and the owners of the M/T Cape Bruny to submit all disputes to arbitration in London. (Docket No. 137-29 at p. 2.) The charter party required RYTTSA to ensure a safe berth for the M/T Cape Bruny at port but did not require RYTTSA to warrant the safety of the port. Id. at p. 3. None of the owners and operators of the M/T Cape Bruny is a Puerto Rico corporation. (See Civil No. 09-2092 at Docket No. 83 at pp. 10-12.)

RPSA and RYTTSA both deny owning any of the cargo on the M/T Cape Bruny. (Docket No. 99-1 at p. 2; Docket No. 100-1 at p. 2.) RYTTSA purchased the unleaded gasoline that was transported on the M/T Cape Bruny from Petrogal. (Docket No. 137-10 at p. 14.) The sale to RYTTSA was FOB (Free on Board) and, therefore, risk of loss passed to RYTTSA when the [122]*122cargo was loaded onto the M/T Cape Bruny in Sines, Portugal. Id. at p. 12. RYTTSA then sold the unleaded gasoline to defendant Astra Oil Trading Limited (“AOT”), a Florida corporation, while the cargo was aboard the M/T Cape Bruny. (Docket No. 137-10 at p. 13, Docket No. 1 at p. 4.) The sale to AOT was CFR (Cost and Freight) and RYTTSA agreed to deliver the cargo to the Gulf Oil Facility in San Juan, Puerto Rico as part of the contract. (Docket No. 137-17 at p. 2.) CFR means that RYTTSA paid the costs and freight to deliver the cargo to the destination — San Juan — but the title and risk of loss passed to AOT at the loading port— Sines. (Docket No. 100-1 at p. 4.)

Pursuant to the terms of the contract between RYTTSA and AOT, title to the cargo passed to AOT when RYTTSA accepted AOT’s stand by letter of credit. (Docket No. 137-17 at p. 4.) The cargo was loaded on the M/T Cape Bruny at Sines before October 17, 2009, but RYTTSA did not accept AOT’s stand by letter of credit until October 20, 2009. (Docket No. 100-1 at p. 4; Docket No. 137-18 at p. 1.) The contract between RYTTSA and AOT also provides that “THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND PERFORMANCE OF THE AGREEMENT,” and the parties will submit all disputes to the exclusive jurisdiction of the New York courts. Id. at 6. After the explosion at the Gulf Oil Facility, RYTTSA ordered the M/T Cape Bruny to deliver the remaining cargo to Guayanilla, Puerto Rico at AOT’s request. (Docket No. 137-32 at p. 1-2.) In March of 2010, more than four months after the explosion, Medco Tankers sent RYTTSA an email informing it that the charterers of the M/T Cape Bruny had assigned the charter party to RYTTSA. (Docket No. 137-7 at p. 1.)

Plaintiffs allege that RPSA and RYTTSA were negligent in failing to take certain safety measures when offloading the cargo from the M/T Cape Bruny. (Docket No. 1 at pp. 20-24.) Plaintiffs also allege that RYTTSA negligently entrusted dangerous cargo to the M/T Cape Bruny and Gulf Oil Facility. Id. at pp. 24-25. Plaintiffs also bring claims against all defendants for trespass, nuisance, and failure to respond to an emergency. Id. at pp. 26-28.

B. Procedural History

Plaintiffs allege that the Court has admiralty jurisdiction pursuant to 28 U.S.C. § 1333 and the Extension of Admiralty Jurisdiction Act, 46 U.S.C. § 30101. (Docket No. 1 at p.

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Bluebook (online)
957 F. Supp. 2d 119, 2013 WL 3777097, 2013 U.S. Dist. LEXIS 101462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rivera-olivera-v-antares-oil-services-llc-prd-2013.