Skelton v. Lowen

665 F. Supp. 469, 1987 U.S. Dist. LEXIS 6799
CourtDistrict Court, E.D. Virginia
DecidedJuly 29, 1987
DocketCiv. A. 86-855-N
StatusPublished
Cited by3 cases

This text of 665 F. Supp. 469 (Skelton v. Lowen) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Skelton v. Lowen, 665 F. Supp. 469, 1987 U.S. Dist. LEXIS 6799 (E.D. Va. 1987).

Opinion

CLARKE, District Judge.

ORDER

This matter comes before the Court on defendant’s Motion to Dismiss the Complaint for lack of personal jurisdiction over the defendant and improper venue. The Complaint alleges that the Masters, Mates & Pilots Health & Benefit Plan (the Plan) wrongfully denied medical and disability benefits to plaintiff’s deceased husband, a participant in the Plan. Jurisdiction of this Court is invoked pursuant to the Labor Management Relations Act, 29 U.S.C. § 186 (1978).

Plaintiff alleges that the decedent became a member of the International Organization of Masters, Mates and Pilots, AFL/CIO in 1964. Under the provisions of a collective bargaining agreement between the union and decedent’s employers, decedent was entitled to benefits under the terms of the Plan. Plaintiff’s decedent worked in covered employment, as defined by the Plan, until June 1970 at which time he becamp involuntarily disabled. . The decedent returned to active employment in December 1973 and continued working until he became totally disabled in April 1982 following a diagnosis of Hodgkins disease. Plaintiff’s husband died on June 12, 1985. According to plaintiff, the defendant wrongfully refused to pay medical and surgical expenses and disability benefits to the decedent subsequent to the diagnosis of Hodgkins disease.

Plaintiff states by way of affidavit that she is a resident of Chesapeake, Virginia and that her husband lived in the Tidewater area of Virginia throughout his adult life. All of decedent’s employment and medical records are located in this area.

According to the affidavit of Mr. John Sokolowski, Administrator of the Plan, the Plan was established in 1957 by agreement between the union and employers pursuant to Section 302(c) of the Labor Management Relations Act of 1947, as amended, 29 U.S.C. § 186(c). The Plan provides coverage for individuals employed as licensed deck officers on ocean-going vessels. The Plan is administered from an office in Linthicum Heights, Maryland. All claims for medical benefits under the Plan are processed by this office. The office also receives contributions from employers and makes payments to beneficiaries.

Mr. Sokolowski states that no contributing employer under the Plan is located in Virginia, and the Plan is not licensed to do business in the Commonwealth. Neither the Plan’s trustees nor its employees have ever made decisions regarding any Plan business in Virginia, including the decision regarding the decedent’s claim for benefits. The Plan has no office, records, employees, bank accounts, property, or telephone list *471 ing. in Virginia. The Board of Trustees the Plan has never met in Virginia, and defendant’s only contact with the Commonwealth was the mailing of notice of a denial of benefits and related eligibility materials to decedent’s home address. of

By way of a supplemental affidavit, Mr. Sokolowski further states that plaintiff’s decedent worked as a licensed deck officer and obtained employment through a union hiring hall in Norfolk, Virginia. During the course of his career, the decedent worked for seventeen different employers, none of which is based in Norfolk, although vessels of these employers would call at the Port of Norfolk to load and unload cargo, refuel or pick up a crew. Based upon records used to compute decedent’s eligibility for benefits, approximately ninety percent of decedent’s employment time was spent at sea.

Defendant argues that this Court lacks personal jurisdiction because the Plan is not “present” in Virginia and has not performed acts within the Commonwealth that would permit application of the Virginia long-arm statute or satisfy due process requirements of the United States Constitution.

At the outset, the Court notes an apparent confusion as to the proper name of the defendant in this case. The Complaint names as defendant “Robert J. Lowen, Chairman of the Board of Trustees of the Master, Mates & Pilots Health & Benefit Plans.” It appears from a reading of the file that only one plan is at issue. Furthermore, in its responsive pleadings and memoranda to the Court, defendant has added “A Maryland Corporation” to the style of the case, although the Complaint does not allege that the Plan is incorporated and defendant’s arguments with regard to venue appear to indicate that the Plan is an unincorporated entity. The Court need not resolve these discrepancies. Defendant does not allege that plaintiff has failed to name or serve notice upon a proper party defendant. Accordingly, the Court finds that any objection as to the naming of a proper party defendant has been waived, and plaintiff will be permitted to amend the Complaint as necessary. .

The Court’s exercise of personal jurisdiction over a nonresident defendant requires compliance with constitutional due process requirements. The defendant contends that constitutional prerequisites for jurisdiction are not present in this case because the defendant lacks “minimum contacts” with Virginia, International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945), sufficient to support a finding that defendant “purposefully availfed]” itself of the privilege of conducting business in the Commonwealth. Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 1239, 2 L.Ed.2d 1283 (1958). Defendant argues that the “incidental contact” with Virginia through mailings sent to plaintiff does not support a finding that the Plan engaged in purposeful business activity here, and that defendant’s due process rights would be violated by a finding of jurisdiction based upon the “unilateral” decision of plaintiff’s decedent to reside in Virginia. Id.; Worldwide Volkswagen Corp. v. Woodson, 444 U.S. 286, 100 S.Ct. 559, 62 L.Ed.2d 490 (1980). The Court disagrees with defendant’s constitutional analysis as applied to the facts of this case.

Plaintiff’s claim for relief arises out of a contract between her husband’s employers and the union to which her deceased husband belonged. In Burger King Corp. v. Rudzewicz, 471 U.S. 462, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985), the Supreme Court held that in a diversity action involving a contract dispute, due process requires that a defendant receive “fair warning” that he may be subjected to the jurisdiction of a foreign sovereign and that this requirement is satisfied if the defendant has “purposefully directed” his activities to the residents of the forum. Id. at 472,105 S.Ct. at 2182 (citations omitted). The Court further held that where a defendant “reaches out beyond one state” and creates “continuing obligations” between himself and residents of another state, the defendant “manifestly has availed himself of the privilege of conducting business there” so that it is not presumptively unreasonable to require him to submit to the burden of litigation in that *472

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Bluebook (online)
665 F. Supp. 469, 1987 U.S. Dist. LEXIS 6799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skelton-v-lowen-vaed-1987.