Sun Trust Bank v. Sun International Hotels, Ltd.

184 F. Supp. 2d 1246, 2001 U.S. Dist. LEXIS 23350, 15 Fla. L. Weekly Fed. D 58
CourtDistrict Court, S.D. Florida
DecidedDecember 10, 2001
Docket00CV3741
StatusPublished
Cited by35 cases

This text of 184 F. Supp. 2d 1246 (Sun Trust Bank v. Sun International Hotels, Ltd.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sun Trust Bank v. Sun International Hotels, Ltd., 184 F. Supp. 2d 1246, 2001 U.S. Dist. LEXIS 23350, 15 Fla. L. Weekly Fed. D 58 (S.D. Fla. 2001).

Opinion

ORDER DENYING DEFENDANTS’ MOTION TO DISMISS

HUCK, District Judge.

BACKGROUND

Plaintiff, Sun Trust Bank, Miami, as the personal representative of the Estate of Chad Humphreys, has sued defendants Sun International Hotels Limited and Sun International Bahamas Limited for damages arising out of the death of twelve-year old Chad Humphreys, who was killed while snorkeling in a recreational lagoon at the Atlantis Hotel on Paradise Island, in the Bahamas. Defendants have filed a Motion to Dismiss predicated upon (1) lack of personal jurisdiction; (2) improper venue; and (3) forum non conveniens. For the reasons that follow, the Motion to Dismiss [DE # 15-1] IS DENIED.

FACTS

The resort

The Atlantis resort where this tragic accident occurred is located on Paradise Island, in the multi-island nation of the Bahamas. Tourism is the Bahamas’ largest industry and provides 75% of that country’s work force with jobs. Bethell Dec., ¶ 7. And Atlantis is indeed an international tourist attraction. Sun Hotels maintains addresses in France, Germany, Japan, Maritius, the United Kingdom, South Africa and Ft. Lauderdale, Florida. Complaint, ¶ 17F. Visitors from around the world can make reservations through the Atlantis website. H. Karawan Dep., p. 17; P. O’Neil, pp. 8, 15, ex. 2. Of the 85% of Atlantis visitors that come from the *1252 United States, 14% are from Florida. H. Karawan 1996 Dep., pp. 32-35, 41-42. Events relating to the trip and the incident

Ms. Humphreys reserved her family’s stay at the Atlantis in advance from the United States, by using an interactive website. When the family arrived at the Atlantis, Ms. Humphreys was presented with a Guest Registration Form to sign at the front desk. The backside of this form contains a forum-selection clause laying venue in the Bahamas for any action arising out of events occurring there. When she made her reservations, Ms. Hum-phreys was not informed that she would be asked to sign a forum-selection clause upon her arrival in the Bahamas. Indeed, it is undisputed that the forum-selection clause was presented to her for the first time when she arrived to check in at the hotel, after she had traveled from South Florida to the Bahamas with her two children.

The Guest Registration Form is presented to the guest with the forum-selection clause facing up. Conway Dep., pp. 22-23. The guest is asked to verify the departure date, read the printed language, and then sign the form. Id. at 12, 20, 23. It is undisputed that the desk clerk is not trained to explain the forum-selection clause, and that Ms. Humphreys was not told that she was signing one. Plaintiff admits that she was aware that there was printed language above her signature, but did not read it.

The Court need not detail the tragic event causing Chad’s death. Suffice it to say that Chad was killed instantly when sucked into an intake pipe while snorkeling in Atlantis’ “Paradise Lagoon.” 1 Atlantis personnel coordinated the recovery efforts and freed Chad’s body from the pipe. Bahamian police investigated the incident, interviewed witnesses, and prepared reports. Chad’s body was taken to a local Bahamian hospital. Chad’s uncle, Greg Labosky, flew from his home in South Florida to identify it. The coroner’s report lists the cause of death as “a direct result of blunt trauma.” See, generally, Plaintiff’s Answers to Defendant’s First Interrogatories (“Plaintiffs First Answers ”).

Atlantis guests from Washington State and New Jersey witnessed the rescue/recovery efforts and Ms. Humphreys’ condition during the episode. Two Florida residents snorkeled in the lagoon in the days before the event and observed that portions of a protective grate in the vicinity of the intake pipes was missing. Plaintiff’s Answers, at 34, 68-69, 70-71.

The defendants

Defendants Sun International Hotels Limited (“Sun Hotels”) and Sun International Bahamas Limited (“Sun Bahamas”) are corporations organized under the laws of the Bahamas. Sun Hotels is the sole shareholder and owner of Sun Bahamas. Both are holding companies and neither directly owns nor operates the Atlantis Hotel. The Atlantis Hotel is owned and operated by two of Sun Bahamas’ wholly-owned Bahamian subsidiaries, Island Hotel Company, Ltd. (“Island Hotel”) and Paradise Island, Ltd. (“Paradise Island”).

Sun Hotels is also the sole shareholder and owner of Sun International North America, Inc. (“Sun North America”), a Delaware corporation with its principal place of business in Florida. Sun North America and its Florida subsidiaries, Sun International Resorts, Inc. (“Sun Resorts”) and Paradise Island Vacations, Inc. (“Island Vacations”), provide a variety of financial, administrative, marketing and reservations services to Sun Hotels and Sun Bahamas in Florida. Each defendants’ *1253 contacts with this forum are detailed separately below, but the following schematic is initially useful in understanding the various Sun entities’ relationships with each other:

THE SUN CORPORATE NETWORK

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i Sun Hotels

Sun Hotels is a public corporation, traded on the New York Stock Exchange. As a public corporation, Sun Hotels is required to have an authorized representative in the United States. J. Allison Dep., p. 22. John Allison is the Executive Vice-President and CFO of Sun Hotels. Id. at 5. He is identified on SEC filings as the principal financial and accounting officer and authorized representative of Sun Hotels in the United States. Id. at pp. 18-20. SEC filings from 1999 and 2000 reflect that Sun Hotels’ has an executive office located at 1415 East Sunrise Boulevard, in Ft. Lauderdale, Florida. Id.; see also Exhibits to J. Allison Dep.. Mr. Allison maintains an office at this address in his capacity as CFO of Sun Hotels. Id. at 6. In addition to being the CFO of Sun Hotels, Mr. Allison is also a salaried employee of Sun North America. Sun North America’s offices are located in the same building as Sun Hotels’ executive office in Ft. Lauderdale, and Mr. Allison also maintains an office there in his capacity as an employee of Sun North America. Id.

Sun Hotels has a written Services Agreement with Sun North America. Pursuant to the agreement, Sun North America provides Sun Hotels with certain financial services, such as the preparation of consolidated financial reports and SEC filings. Sun North America also employs an investor relations manager to provide services to Sun Hotels’ shareholders. Id. at 13, 15, 30, 32, 64-65, 67, 72. Sun North America receives a fee for the services it performs for Sun Hotels. Sun North America is the only entity that renders these services to Sun Hotels, and it does so from the Sun North America offices in Ft. Lauderdale, Florida.

Sun Hotels has guaranteed the lease for 1415 East Sunrise Boulevard, the ten-story building in Ft.

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Cite This Page — Counsel Stack

Bluebook (online)
184 F. Supp. 2d 1246, 2001 U.S. Dist. LEXIS 23350, 15 Fla. L. Weekly Fed. D 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sun-trust-bank-v-sun-international-hotels-ltd-flsd-2001.