Sea-Land Service, Inc. v. J & W Import/Export, Inc.

976 F. Supp. 327, 1998 A.M.C. 1572, 1997 U.S. Dist. LEXIS 13987, 1997 WL 566331
CourtDistrict Court, D. New Jersey
DecidedSeptember 5, 1997
DocketCivil Action No. 96-1908
StatusPublished
Cited by13 cases

This text of 976 F. Supp. 327 (Sea-Land Service, Inc. v. J & W Import/Export, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sea-Land Service, Inc. v. J & W Import/Export, Inc., 976 F. Supp. 327, 1998 A.M.C. 1572, 1997 U.S. Dist. LEXIS 13987, 1997 WL 566331 (D.N.J. 1997).

Opinion

OPINION

WOLIN, District Judge.

J & W Import/Export, Inc. (“J & W”) hired Sea-Land Services, Inc. (“Sea-Land”) to ship containers of garlic for J & W from China to the United States and then to Puerto Rico. J & W claims that Sea-Land improperly stored the garlic and fraudulently misrepresented its ability and willingness to store the garlic properly. J & W filed its complaint in the Superior Court of New Jersey. Sea-Land removed the case to this Court based on the Carriage of Goods by Sea Act (“COGSA”), 46 U.S.CApp. § 1300, et seq. J & W demands that the case be tried before a jury. The question presented by J & W’s demand is whether J & W lost its right to a jury trial when Sea-Land removed the case to this Court.

BACKGROUND

On April 22,1996, J & W filed a Complaint and Jury Demand against Sea-Land in the Superior Court of New Jersey, Law Division, Union County. J & W is a corporation existing and organized under the laws of New Jersey and has its principal place of business in Roselle Park, New Jersey. Sea-Land is a corporation existing and organized under the laws of Delaware with its principal place of business in Dallas, Texas. J & W and Sea-Land entered into an agreement whereby Sea-Land would ship fresh containers of garlic from China to the United States and then to Puerto Rico.

The Complaint contains three counts. Counts I and II allege that Sea-Land breached the contract by improperly shipping the containers of garlic. Count III alleges that Sea-Land fraudulently misrepresented its ability and willingness to transport the garlic in ventilated containers. J & W claims that it suffered $405,000 in damages because of Sea-Land’s actions.

On or about April 23, 1996, Sea-Land filed a Complaint in admiralty in the United States District Court for the District of New Jersey pursuant to Rule 9(h) of the Federal Rules of Civil Procedure. Sea-Land claimed that J & W breached their contract by failing to pay the balance of $27,907.50 for services rendered.

On or about May 17, 1997, this Court granted Sea-Land’s petition to remove J & W’s case from the Superior Court of New Jersey to this Court. Following the removal of the state action, the cases were consolidated.

On July 24, 1997, Magistrate Judge Pisano signed a Final-Pre Trial Stipulation and Order directing the parties to submit briefs on [329]*329whether the case should be tried before a jury.

DISCUSSION

1. Federal Right to Jury Trial

The Seventh Amendment to the United States Constitution preserves the right to a jury trial in all suits at common law. This right is at the foundation of our judicial system and the Supreme Court has long endorsed it. See Dairy Queen, Inc. v. Wood, 369 U.S. 469, 82 S.Ct. 894, 8 L.Ed.2d 44 (1962); Beacon Theatres, Inc. v. Westover, 359 U.S. 500, 79 S.Ct. 948, 3 L.Ed.2d 988 (1959).

2. Right to Jury Trial in Admiralty Cases

a. Generally

“There is no right to jury trial on the admiralty side of the federal court, except as provided by Congress or as required by the Supreme Court in the exercise of its supervisory power over admiralty proceedings.” 9 Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 2315, at 116 (2d ed.1995); see, e.g., Simko v. C & C Marine Maintenance Co., 594 F.2d 960, 965 (3d Cir.1979) (same), cert. denied, 444 U.S. 833, 100 S.Ct. 64, 62 L.Ed.2d 42 (1979). Rule 38(e) of the Federal Rules of Civil Procedure provides: “These rules shall not be construed to create a right to trial by jury of the issues in an admiralty or maritime claim within the meaning of Rule 9(h).”

b. The “Savings to Suitors” Clause

Twenty-eight U.S.C. § 1333 provides the grant of jurisdiction in admiralty cases:

The district courts shall have original jurisdiction, exclusive of the courts of the States, of: (1) Any civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled.

Subsection (1) is referred to as the “saving to suitors” clause and permits plaintiffs who have in personam actions to file their claims as ordinary civil actions or as admiralty actions. See 14 Charles Alan Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice and Procedure § 3672, at 430 (2d ed.1985). Thus, a plaintiff who sues for breach of a maritime contract has two options: (1) invoke the federal courts’ original jurisdiction over admiralty and maritime claims; (2) sue under the “saving to suitors” clause in state court or in a United States district court.1 See id. at 430-33. A claim ■filed pursuant to the second option, unlike one filed under the first option, can be tried before a jury on demand. See id. at 433.

In this case, J & W filed its claim in state court pursuant to the “saving to suitors” clause. No one disputes that J & W had the right to a jury in that forum. The issue before this Court, however, is whether J & W lost its right to a jury trial when Sea-Land removed the case to federal court under the auspices of federal question jurisdiction.

c.Removal

Twenty-eight U.S.C. § 1441 permits defendants to remove cases from state courts to United States district courts. Subsection (b) provides in pertinent part: “Any civil action of which the district courts have original jurisdiction founded on a claim or right arising under the Constitution, treaties or laws of the United States shall be removable without regard to the citizenship or residence of the parties.”

Despite the broad language of the removal statute, it does not apply to all admiralty cases. In fact, if a plaintiff files a claim in state court pursuant to the “saving to suitors” clause, removal is permitted only if federal question or diversity jurisdiction exists. See Romero v. International Terminal Operating Co., 358 U.S. 354, 371-72, 79 S.Ct. 468, 479-80, 3 L.Ed.2d 368, (1959); 29 James Wm. Moore, et al., Moore’s Federal Practice § 704.04[2] (3d ed.1997). In other words, admiralty, in and of itself, does not create [330]*330federal question jurisdiction so that a claim filed in state court can be removed to a district court. In Romero, supra, the Supreme Court explained that permitting the unfettered removal of admiralty cases to federal courts “would make considerable inroads into the traditionally exercised concurrent jurisdiction of the state courts in admiralty matters.” 358 U.S. at 372, 79 S.Ct. at 480.

Twenty-eight § U.S.C.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
976 F. Supp. 327, 1998 A.M.C. 1572, 1997 U.S. Dist. LEXIS 13987, 1997 WL 566331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sea-land-service-inc-v-j-w-importexport-inc-njd-1997.