Stevens v. Meaut

264 F. Supp. 2d 226, 2003 U.S. Dist. LEXIS 9674, 2003 WL 21222924
CourtDistrict Court, E.D. Pennsylvania
DecidedMay 28, 2003
DocketCivil Action 02-7532
StatusPublished
Cited by1 cases

This text of 264 F. Supp. 2d 226 (Stevens v. Meaut) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stevens v. Meaut, 264 F. Supp. 2d 226, 2003 U.S. Dist. LEXIS 9674, 2003 WL 21222924 (E.D. Pa. 2003).

Opinion

MEMORANDUM

BAYLSON, District Judge.

The issue presented is whether this Court has personal jurisdiction over Defendant, against whom Plaintiffs claim damages for the tort of slander of title. The facts concern the attempted sale of the “Jealous Mistress”, 1 a sixty-five-foot Italian-built motor yacht. Defendant Robert J. Meaut (“Defendant”), a citizen of the U.S. Virgin Islands, moves to dismiss the Complaint filed by the yacht’s owners, plaintiffs Richard F. Stevens and Joanne T. Stevens (“Stevens”), citizens of Pennsylvania, and boat broker Ronald McTighe (“McTighe”), a citizen of Florida, (collectively “Plaintiffs”) for lack of personal jurisdiction. Oral argument was held on May 2, 2002. For the reasons that follow, Defendant’s Motion will be denied.

I. Background

Plaintiffs’ Complaint alleges that the Stevens own the “Jealous Mistress”, a 1997 Ferretti Motor Vessel (“yacht”), which is free and clear of all hens and encumbrances and documented by the United States Coast Guard (“Coast Guard”). (Pis.’ Compl. ¶¶7, 10). Defen *228 dant acted for several years as an independent contractor who captained the yacht, which the Stevens used for pleasure from its home port at the Green Cay Marina in St. Croix, U.S. Virgin Islands, id. ¶¶ 12,13, where the Stevens maintain a vacation home. (Def.’s Mem. Supp. Mot. Dismiss at 1).

In March 2002, the yacht experienced engine problems, and it was taken by Defendant and others to Fort Lauderdale, Florida for repair. (Pis.’ Compl. ¶¶ 15, 16). Following the repair, Plaintiffs allege that in June and July 2002, Defendant, who had been paid through July, refused to return the yacht to St. Croix because of poor weather conditions and because the yacht’s motors and other equipment were unsafe. Id. ¶¶ 17, 18, 21. The Stevens claim that Defendant told them that their only option was to sell the yacht and give up boating. Id. ¶ 19. The Stevens assert that Florida boat broker McTighe then made “considerable efforts” to sell the yacht. Id. ¶22. After McTigue failed to find any prospective buyers, he suggested that the Stevens donate the yacht to the American Institute of Marine Studies (“AIMS”) in Fort Laud-erdale, Florida in exchange for cash and a charitable deduction. Id. ¶¶ 24, 25. The Stevens and AIMS reached an agreement, and a documentation search conducted through the Coast Guard showed that there were no hens and encumbrances on the yacht. Id. ¶¶ 26-28.

In September 2002, Plaintiffs allege that Defendant informed AIMS that he had filed a lien against the yacht with the Coast Guard and that this statement was false. Id. ¶¶ 31-35. Upon receiving Defendant’s notice, AIMS sent the Stevens in Pennsylvania a written notice cancelling the transaction and requesting that the Stevens return by wire transfer the $550,000 that AIMS paid them for the yacht. Id. ¶¶ 36, 37, Ex. A. The Stevens, in Pennsylvania, returned the $550,000 to AIMS. Plaintiffs claim that Defendant’s statements to AIMS were false and fraudulent, that although Defendant attempted to file a notice of lien with the Coast Guard in July 2002, that notice was rejected and returned to him, which Defendant knew at the time he told AIMS a lien existed. Id. ¶¶ 39-42, Ex. B. Plaintiffs attached a copy of the Notice of Claim of Lien, which states in pertinent part:

Amount of Lien: $88,200.00
Nature of Lien: The hen is placed on July 13, 2002.
Robert J. Meaut, claimant, is the captain on the above documented vessel owned by Richard F. Stevens owner of the above documented vessel. Richard F. Stevens agreed to pay Robert J. Meaut, a bonus equal to 7% of the net selling price, at settlement, when the above documented vessel is sold by Richard F. Stevens to the next owner(s).

(Pis.’Compl. Ex. B).

Plaintiffs claim that the lien as well as the amount of the hen are fraudulent because no sale was contemplated as of July 13, 2002, and that when Defendant contacted AIMS about the hen he already knew from McTighe that the yacht was being donated to AIMS. (Pis.’ Compl. ¶ 51).

The Stevens claim damages in excess of $100,000 as a result of the loss of the donation as well as continued expenses for insurance, dockage, and maintenance, depreciation, a lost charter, and accountant’s and appraisal fees. Id. ¶ 52. Plaintiff McTighe claims damages for his lost commission in the amount of $60,000, and his loss of opportunity to represent AIMS in a future sale of the yacht, as well as damage to his reputation in the brokerage community. Id. ¶ 53. Plaintiffs seek $1 million in punitive damages. Id.

*229 II. Legal Standard

Fed.R.Civ.P. 4(e) allows a district court to assert personal jurisdiction over a nonresident to the extent allowed by the law of the state in which it sits. See Time Share Vacation Club v. Atlantic Resorts, 735 F.2d 61, 63 (3d Cir.1984). Pennsylvania’s long-arm statute provides that a court may exercise personal jurisdiction over non-residents “to the fullest extent allowed under the Constitution of the United States.” 42 Pa. Cons.Stat. § 5322(b). The statute also permits jurisdiction over a non-resident if the non-resident has “[cjaused harm or tortious injury by an act or omission in this Commonwealth” or “[c]aus[ed] any harm or tortious injury in this Commonwealth by an act or omission outside this Commonwealth.” § 5322(a)(3), (4).

Due process requires that the defendant have “minimum contacts” with the forum state, and that the exercise of jurisdiction comports with “traditional notions of fair play and substantial justice.” Remick v. Manfredy, 238 F.3d 248, 255 (3d Cir.2001) (quoting International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945)). “Minimum contacts must have a basis in ‘some act by which the defendant purposefully avails itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.’ ” Remick, 238 F.3d at 255 (quoting Asahi Metal Indus. Co., Ltd. v. Superior Court of California, 480 U.S. 102, 109, 107 S.Ct. 1026, 94 L.Ed.2d 92 (1987)) (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 475, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985)).

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Bluebook (online)
264 F. Supp. 2d 226, 2003 U.S. Dist. LEXIS 9674, 2003 WL 21222924, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-v-meaut-paed-2003.