Stalinski v. Bakoczy

41 F. Supp. 2d 755, 1998 U.S. Dist. LEXIS 21601, 1998 WL 1031423
CourtDistrict Court, S.D. Ohio
DecidedNovember 3, 1998
DocketC-1-97-1006
StatusPublished
Cited by8 cases

This text of 41 F. Supp. 2d 755 (Stalinski v. Bakoczy) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stalinski v. Bakoczy, 41 F. Supp. 2d 755, 1998 U.S. Dist. LEXIS 21601, 1998 WL 1031423 (S.D. Ohio 1998).

Opinion

*757 ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS

DLOTT, District Judge.

ORDER

This matter comes before the Court to consider the Defendants’ Motion to Dismiss. (Doc. # 25). For the reasons and analysis set forth below, the Defendants’ Motion is hereby GRANTED.

I. BACKGROUND FACTS

This action arose out of a commercial dispute that took place in Honduras during 1989 and 1990. In 1989, Plaintiff Ernst Otto Stalinski, a German citizen, was acting as the Honduran agent and representative of Fyffes PLC, an Irish banana company and one of Defendant Chiquita Brands International’s competitors in the banana export business. (A.C.1HI 5, 8.) Plaintiffs job was to procure fruit purchase contracts with independent banana growers in Central America for Fyffes and to oversee the shipment of bananas to Fyffes and its customers. (A.C^ 5.) Plaintiffs Amended Complaint states several causes of action against the Defendants: Tortious Interference with Business Relations, Malicious Prosecution, Abuse of Process, Violation of the Law of Nations, and Fraud. Plaintiff essentially asserts that the Defendants used fraudulent lawsuits and unlawfully obtained court orders to prevent Plaintiff from fulfilling his contract with Fyffes to supply Honduran bananas.

In 1989, Stalinski executed a contract with CAGSSA, an independent banana grower in Honduras, for the shipment of bananas to Fyffes. (A.C-¶ 8.) Between March 1990 and June 1990, Fyffes began to purchase and ship fruit from CAGSSA and Stalinski personally supervised the shipments. (A.C-¶ 18.) Defendants state that as of 1989, Chiquita, through its subsidiaries Tela Railroad Company (“Tela”) and Chiquita International Trading Company (“CITCO”), had fruit purchase contracts with various Honduran banana growers, including CAGSSA. (Def.’s Mem.Supp.Mot.Dism. at 3; see also A.C. ¶ 8.). According to Defendants, Chiquita’s fruit purchase agreement with CAGSSA obligated CAGSSA to sell its entire production of bananas to CITCO. The contract also required CAGSSA to give Chiquita two years notice before terminating the agreement and to repay any outstanding debt to Chiquita upon termination. Chiquita supplied financing to CAGSSA through a loan agreement Tela had with CAGSSA under which Tela had advanced $2.5 million to CAGSSA. (Def.’s Mem. Supp.Mot.Dism. at 3; see also A.C. ¶ 16.). Tela’s loan was secured by a mortgage on CAGSSA’s farms, a lien on CAGSSA’s fruit, and a requirement that CAGSSA’s fruit be delivered to Tela. (Id.)

On March 1, 1990 Defendant Chiquita filed a suit on the mortgage lien against CAGSSA in the Second Civil Court in San Pedro Sula, Honduras. (A.C.f 16.) The Plaintiffs Amended Complaint states that CAGSSA deposited payment of the lien with the court which was accepted by Tela. The court then entered an order canceling the lien.(Id.) Both Plaintiff and Defendants state that on March 21, 1990 CITCO filed a suit against CAGSSA in the Third Judicial Civil Court of San Pedro Sula. (A.C. ¶ 17; see also Def.’s Mem.Supp.Mot.Dism. at 4). Defendants state that this was an emergency civil complaint requesting an order to protect its contractual interests in the CAGSSA fruit that was being shipped to Fyffes. Plaintiff states that this suit was duplicative of the first suit in that it was for the same debt and lien, and was therefore, fraudulent and violated Honduran law.

In the second suit, the court appointed Amilcar Orellana as receiver for the bananas acquired by Plaintiff for shipment to Fyffes. (AC-¶ 17.) According to Plaintiff, Orellana acted on behalf of and under the direction of Defendants, and was represented by Defendants’ local attorney, Leonel Medrano Irías. (Id.) Plaintiff states in his Amended Complaint that from March *758 21, 1990 and June 8, 1990, Chiquita’s “paramilitary” agents boarded ships by Fyffes and destroyed banana cargo that was being loaded under the supervision of Plaintiff, subjecting Plaintiff to gun fire attack. (ACA 18.)

Defendants state that on April 27, 1990, Amilear Orellana filed a criminal complaint against Stalinski charging him with violating various court orders prohibiting the shipment of GAGSSA fruit to Fyffes and a warrant was issued for his arrest. (Def.’s Mem.Supp.Mot .Dism. at 4). Plaintiff asserts that on April 28, 1990, Defendant Bakoczy and Medrano went to Plaintiffs hotel, the Hotel Gran Sula in San Pedro Sula, Honduras, with several armed companions and insisted that the manager of the hotel give them access to Plaintiffs room. 1 (A.C-¶ 19.) The manager asked Medrano for a search or arrest warrant but none was produced. (A.CA 22.) Plaintiff claims that a hotel employee warned him that someone was “seeking Plaintiff in a menacing manner” and he escape through a back door of the hotel. Plaintiff ran to the residence of a friend and was never arrested. (A.CJ 21.) Defendants specifically deny that they ever undertook or authorized any attempt to physically detain or harm Plaintiff.

Finally, Plaintiff asserts that Medrano, Chiquita’s local attorney, filed a copy of the arrest order in a 1995 court proceeding. The arrest order was signed by Judge Galindo from a court in Puerto Cortes, approximately fifty miles from where the Plaintiffs hotel was located. (A.CA 25.) According to Plaintiff, the police department in San Pedro Sula is required by law to keep records of all arrest warrants, but there is no record of an arrest warrant for Plaintiff. (Id.) The above events are the allegations underlying Plaintiffs Amended Complaint.

Plaintiff filed a Honduran civil ■ action against Defendants CITCO and Tela in October 1994. In December 1995, Plaintiff brought Honduran criminal charges against former and current Chiquita employees, including Defendant Bakoczy. These suits still are pending and Defendants assert that the Honduran suits are based on the same allegations as Plaintiffs Amended Complaint in this Court.

II. DEFENDANT’S MOTION TO DISMISS

In their Motion to Dismiss, Defendants assert four separate grounds for dismissal — a) forum non conveniens, b) international abstention c) the “act of state doctrine,” and d) failure to state a claim upon which relief can be granted. After weighing the evidence presented by both Defendants and Plaintiff, the Court finds that Honduras is an adequate, alternative forum and more convenient than the Ohio forum. Consequently, the Court hereby grants Defendants’ Motion to Dismiss on grounds of forum non conveniens. 2

Forum Non Conveniens

“The principle of forum non conveniens comes down to this: a trial court may dismiss a suit over which it would normally have jurisdiction if it best serves the convenience of the parties and the ends of justice.” Kamel v. Hill-Rom Co., 108 F.3d 799 (7th Cir.1997). The defendant bears the burden of proof on all elements of the forum non conveniens analysis. See Torres v. Southern Peru Copper Corp., 965 F.Supp. 899, 902 (S.D.Tex.1996) affd.

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Cite This Page — Counsel Stack

Bluebook (online)
41 F. Supp. 2d 755, 1998 U.S. Dist. LEXIS 21601, 1998 WL 1031423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stalinski-v-bakoczy-ohsd-1998.