Specialized Freight Forwarders v. Dragone Classic Motorcars, Inc.

49 A.3d 798, 137 Conn. App. 623, 2012 WL 3569156, 2012 Conn. App. LEXIS 397
Connecticut Appellate Court·Decided August 28, 2012·No. AC 33768·Published

Opinion

[625] Opinion

ROBINSON, J.

The defendant, Dragone Classic Motorcars, Inc., appeals from the judgment of the trial court in favor of the plaintiff, Specialized Freight Forwarders. On appeal, the defendant claims that the court (1) did not have subject matter jurisdiction over the case, (2) improperly determined that the plaintiff could recover against the defendant for shipping costs despite the fact that the term “freight collect” was used on the bill of lading1 and (3) improperly determined that the plaintiff has recourse against the defendant for shipping charges incurred under the air waybill2 when the plaintiff should have recouped those charges from the purchaser. We affirm the judgment of the trial court.

The trial court found the following facts. The plaintiff is a business based in the Netherlands that forwards freight internationally. The plaintiff was introduced to the defendant through the owner of the plaintiff, David Freriks, when Freriks was employed with another shipper, Mission Freight. During Freriks’ employment with Mission Freight, he observed a series of shipping transactions between Mission Freight and the defendant, all of which involved the defendant paying euros for shipping services. Freriks later started Specialized Freight Forwarders and began shipping vehicles for the defendant, using the same arrangements as were used between Mission Freight and the defendant.

The plaintiff shipped five vehicles from the United States to Europe for the defendant in 2009. The invoices [626] provided to the court demonstrate that a 1929 Alfa Romeo was shipped by air and that a 1915 Metz, a 1932 Chrysler, a 1908 Buick and a 1932 Lincoln were shipped by ocean freight from New York City to the Netherlands. The business relationship between the parties deteriorated after the defendant failed to pay for the shipment of these vehicles. The plaintiff filed this action on July 12, 2010, and filed an amended complaint on August 10, 2010, alleging that it had not been paid for the services rendered to the defendant and that the defendant was unjustly enriched as a result.

A two day bench trial was held on July 14 and July 15, 2011. The court heard testimony from only Freriks and the defendant’s president, Emanuel G. Dragone.3 At the conclusion of trial, the court issued an oral decision finding in favor of the plaintiff. The court determined that it was understood between the parties that payment was to be made in euros and that the plaintiff was to determine the fees and expenses associated with the shipment of goods and notify the defendant of the itemized value and total amount prior to making actual shipping arrangements. The court determined that this procedure was the “usual and customary way that all shipping arrangements were handled by the parties” and that the plaintiff would advance all sums for the shipment and would be reimbursed for all such advancements by the defendant. The court further determined that despite the defendant’s argument that the buyer of the vehicles was responsible for shipping fees, that was not the arrangement that the parties had used in the past. The court, therefore, awarded the plaintiff €26,560.59, plus prejudgment interest under General Statutes § 37-3a, for a total of €33,138.45, which converted to $46,877.60. The court also ordered legal interest of 8 percent to be paid from the date of the [627] judgment until the unsatisfied amounts have been paid. This appeal followed.

I

The defendant’s first claim on appeal is that the trial court did not have subject matter jurisdiction over the plaintiffs case because it is an admiralty action over which the federal courts have exclusive jurisdiction. “A determination regarding a trial court’s subject matter jurisdiction is a question of law and, therefore, we employ the plenary standard of review and decide whether the court’s conclusions are legally and logically correct and supported by the facts in the record. . . . [I]t is well established that a reviewing court properly may address [subject matter jurisdiction] claims that neither were raised nor ruled on in the trial court. Indeed, [o]nce the question of lack of [subject matter] jurisdiction of a court is raised, [it] must be disposed of no matter in what form it is presented. . . . The court must fully resolve it before proceeding further with the case.” (Citation omitted; internal quotation marks omitted.) Warner v. Bicknell, 126 Conn. App. 588, 594, 12 A.3d 1042 (2011).

The defendant argues that the federal courts have exclusive jurisdiction over admiralty actions under the constitution of the United States4 and federal law, and, that therefore the court lacked subject matter jurisdiction. Section 1333 of title 28 of the United States Code provides: “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 [628] they are otherwise entitled. (2) Any prize brought into the United States and all proceedings for the condemnation of property taken as prize.”

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Specialized Freight Forwarders v. Dragone Classic Motorcars, Inc., 49 A.3d 798, 137 Conn. App. 623, 2012 WL 3569156, 2012 Conn. App. LEXIS 397 (Colo. Ct. App. 2012).

49 A.3d 798 (Specialized Freight Forwarders v. Dragone Classic Motorcars, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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