Smirch v. Allied Shipyard, Inc.

164 F. Supp. 2d 903, 2001 U.S. Dist. LEXIS 15620, 2001 WL 1131316
CourtDistrict Court, S.D. Texas
DecidedSeptember 21, 2001
DocketCiv.A. G-01-057
StatusPublished
Cited by2 cases

This text of 164 F. Supp. 2d 903 (Smirch v. Allied Shipyard, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smirch v. Allied Shipyard, Inc., 164 F. Supp. 2d 903, 2001 U.S. Dist. LEXIS 15620, 2001 WL 1131316 (S.D. Tex. 2001).

Opinion

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION AND MOTION TO TRANSFER VENUE

KENT, District Judge.

Plaintiffs bring this admiralty suit in contract and tort seeking damages for breach of maritime contract, breach of warranty of workmanlike performance, negligent misrepresentation, and negligence. Now before the Court are Defendant’s Motion to Dismiss for Lack of Personal Jurisdiction and Motion to Transfer Venue. For the reasons elucidated below, Defendant’s Motions are GRANTED.

I. BACKGROUND

Plaintiffs Pete Smirch and Steve Koerul-ja are Texas residents who own and operate a shrimping vessel named “Two Didos” (formerly called “Audrey G”). Defendant Allied Shipyard, Inc. (“Allied”) is a Louisiana ship repair corporation, with its principal place of business in LaRose, Louisiana.

Plaintiffs allege the following set of facts. On or after May 24, 2000, Plaintiffs entered into a contractual agreement with Allied for the inspection and repair of Two Didos. Under the terms of the maritime agreement, Allied agreed to perform various inspection and repair services, including steering repairs. On or about July 6, 2000, Plaintiffs took delivery of Two Didos, based on Allied’s representations that the stipulated repairs had been completed and the vessel rendered seaworthy. Shortly after placing the vessel back into service, however, the vessel’s steering mechanism failed, causing it to run aground in Surf-side, Texas. As a result of the grounding, *906 Plaintiffs claim to have incurred damages totaling nearly a quarter of a million dollars. Plaintiffs filed suit in this Court on January 29, 2001, alleging that Allied’s faulty repair work caused the vessel’s grounding and subsequent damages.

Defendant Allied propounds two procedural challenges to Plaintiffs’ suit, in the form of a Motion to Dismiss for Lack of Personal Jurisdiction, and Motion to Transfer Venue. In the first instance, Allied contends that its contacts with Texas are insufficient to invoke a proper assertion of personal jurisdiction, thereby warranting a dismissal of Plaintiffs’ claims. In the alternative, Allied moves to transfer venue to the United States District Court for the Eastern District of Louisiana.

II. ANALYSIS

A. Motion to Dismiss for Lack of Personal Jurisdiction

Defendant seeks to dismiss Plaintiffs’ claims for lack of personal jurisdiction pursuant to Fed.R.Civ.P. 12(b)(2). In federal court, personal jurisdiction over a nonresident defendant is proper if: (1) the defendant is amenable to service of process under the forum state’s long-arm statute; and (2) the exercise of personal jurisdiction over the defendant is consistent with due process. See Stripling v. Jordan Prod. Co., L.L.C., 234 F.3d 863, 869 (5th Cir.2000); Jones v. Petty-Ray Geophysical Geosource, Inc., 954 F.2d 1061, 1067 (5th Cir.1992). The Texas long-arm statute authorizes service of process on a nonresident defendant if the defendant is determined to be “doing business” in Texas. See Tex.Civ.Prac. & Rem.Code Ann. § 17.042. Because the phrase “doing business” has been interpreted to reach as far as the United States Constitution permits, the jurisdictional inquiry under the Texas long-arm statute collapses into a single due-process inquiry. See Ruston Gas Turbines, Inc. v. Donaldson Co., 9 F.3d 415, 418 (5th Cir.1993).

Whether the exercise of personal jurisdiction over Defendants is consistent with the Due Process Clause of the United States Constitution likewise requires a two-pronged inquiry. First, the Court must conclude that Defendants have “minimum contacts” with Texas. See International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945). Second, the Court must determine that requiring Defendant to litigate in Texas does not offend “traditional notions of fair play and substantial justice.” Id.; see also Wilson v. Belin, 20 F.3d 644, 647 (5th Cir.1994); Ruston Gas Turbines, 9 F.3d at 418. The “minimum contacts” aspect of due process can be satisfied by either finding specific jurisdiction or general jurisdiction. See Wilson, 20 F.3d at 647. If the conduct of a defendant that supports personal jurisdiction is related to a stated cause of action, personal jurisdiction is known as “specific jurisdiction.” See Ruston Gas Turbines, 9 F.3d at 418-19. The minimum contacts prong for specific jurisdiction can be satisfied by a single act if the nonresident defendant “purposefully avails itself of the privilege of conducting activities within the forum state, thus invoking the benefit and protection of its laws.” Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475, 105 S.Ct. 2174, 2183, 85 L.Ed.2d 528 (1985) (holding that a defendant establishes minimum contacts by purposely engaging in conduct directed toward the forum state “such that [the defendant] should reasonably anticipate being haled into court there”); Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 1239-40, 2 L.Ed.2d 1283 (1958); see also Bullion v. Gillespie, 895 F.2d 213, 216 (5th Cir.1990) (“It is well settled that specific jurisdiction may arise without the nonresident defendant’s ever stepping foot *907 upon the forum state’s soil.... ”). Alternatively, if a defendant has insufficient contacts related to a stated cause of action to support specific jurisdiction, contacts unrelated to the cause of action may confer general jurisdiction. However, these contacts with the foreign state must be both “continuous and systematic” and “substantial.” Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 417, 104 S.Ct. 1868, 1873, 80 L.Ed.2d 404 (1984).

Generally, the plaintiff bears the burden of establishing the Court’s jurisdiction over a nonresident defendant. See Wilson, 20 F.3d at 648. However, a prima facie showing of jurisdiction is sufficient, and the plaintiffs allegations in this regard are to be taken as true unless controverted, with any conflicts to be resolved in the plaintiffs favor. See Asarco, Inc. v. Glenara, Ltd., 912 F.2d 784, 785 (5th Cir.1990).

1. Minimum Contacts

Plaintiffs argue that Allied’s contacts with Texas are sufficient to support the assertion of both specific and general in personam jurisdiction. Based on Fifth Circuit precedent directly contravening Plaintiffs’ propositions, hotvever, the Court disagrees on both counts.

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164 F. Supp. 2d 903, 2001 U.S. Dist. LEXIS 15620, 2001 WL 1131316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smirch-v-allied-shipyard-inc-txsd-2001.