Tjontveit v. Den Norske Bank ASA

997 F. Supp. 799, 1998 U.S. Dist. LEXIS 11930, 1998 WL 124516
CourtDistrict Court, S.D. Texas
DecidedMarch 2, 1998
DocketCivil Action H-96-3579
StatusPublished
Cited by11 cases

This text of 997 F. Supp. 799 (Tjontveit v. Den Norske Bank ASA) 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
Tjontveit v. Den Norske Bank ASA, 997 F. Supp. 799, 1998 U.S. Dist. LEXIS 11930, 1998 WL 124516 (S.D. Tex. 1998).

Opinion

MEMORANDUM AND ORDER

CRONE, United States Magistrate Judge.

Pending before the court is defendant Den norske Bank ASA’s (“DNB”) motion to dismiss for forum non conveniens, or in the alternative to stay the action (# 45). Having reviewed the motion, the submissions of the parties, the pleadings, and the applicable law, this court is of the opinion that DNB’s motion to dismiss should be granted and that Plaintiff Thor K. Tjontveit’s (“Tjontveit”) action against DNB should be dismissed on the grounds of forum non conveniens.

I. Background

A. Transactions at Issue

Tjontveit, a citizen and resident of Texas, was the owner of several international businesses. One of the corporations involved in this dispute, Nord Construction Scandinavia A/S (“Nord”), was a Norwegian corporation. Nord was owned equally by Tjontveit individually and another of his corporations, Wien Air Alaska, Inc. (“Wien”), an Alaska corporation with its principal place of business in Texas. At the time of the events giving rise to this action, Tjontveit was the sole shareholder of Wien. Wien is now owned entirely *801 by TTA Holding Company (“TTA”), a Texas corporation, of which Tjontveit is the sole shareholder. Tjontveit asserts that Nord’s principal place of business was Texas because it was headquartered and operated by him in Hurst, Texas. DNB maintains that Nord’s principal place of business was Norway and offers evidence that Nord’s registered address was in Kristiansand, Norway, its business operations were conducted in Norway, its assets (consisting primarily of heavy construction equipment) were located in Norway, its management staff resided in Norway, and it books and records were kept in Norway, where it was audited.

In 1990, Nord began negotiations with a citizen of Norway, Karstein Gjersvik (“Gjersvik”), for the purchase of certain shares of stock in a Norwegian corporation, Air Express. A final written agreement permitting Nord to purchase the stock for 9.287 million Norwegian Kroner (“NOK”) (approximately $1,527,466 U.S.), was executed in Norway on or about August 15, 1990. In compliance with the stock purchase agreement, Tjontveit, on behalf of Nord, entered into an agreement in Oslo, Norway, with DNB, a Norwegian bank, for the bank to act as trustee for the transaction. Specifically, DNB was to accept for deposit the Air Express shares and, upon receipt of confirmation by a specified date of a deposit by Nord of the full purchase price in Gjersvik’s account at ABC-Bank Norway (“ABC”), execute the paperwork necessary to transfer the stock certificates to Nord. The stock certificates were to be delivered to Nord’s registered address in Norway. The purchase agreement called for an initial down payment equaling one-half of the total purchase price, or 4.6485 million NOK (approximately $763,733 U.S.). Nord timely deposited this sum with DNB in August 1990.

Tjontveit claims that in September 1990, despite Nord’s compliance with all the terms of the stock purchase agreement, DNB failed to verify that the balance of the payment due for the shares had been transmitted to Gjersvik’s account at ABC from Tjontveit’s account at Deutsche Bank, a German Bank. Tjontveit asserts that, in violation of the terms of the trust, DNB refused to deliver the Air Express shares-to Nord, and, instead, on September 16, 1990, transferred title to a third-party purchaser, Eeco Corporation, a Norwegian corporation, upon its payment of the balance of 4.6435 million NOK (approximately $763,733 U.S.). Consequently, Gjersvik retained the down payment. Tjontveit maintains that, as a result of DNB’s actions, the down payment was forfeited, the Air Express transaction was aborted, and Nord was forced to cease operations. DNB, which had provided Tjontveit with overdraft funds for the down payment on the Air Express stock, sought collection of the debt. Nord, upon ceasing to do business, assigned its assets to Tjontveit, who brings this claim as successor-in-interest to Nord. •

In January 1991, in an unrelated transaction, German Express Luftfahrt Beteiligungs (“GMBH”), a German corporation, owned equally by Nord and Tjontveit, entered into a final written agreement for the purchase of a Boeing 707 aircraft from 707 Three Leasing Ltd. (“LTL”), a Cayman Islands corporation, headquartered in the Philippines. The contract, which was executed in England and designated English law as the governing law, called for GMBH to pay $5,350,000 U.S. to LTL and to deliver title to two Beech aircraft in exchange for the Boeing 707. GMBH paid $850,000 U.S. to LTL and delivered title to the two Beech airplanes. According to Tjontveit, unknown to GMBH and himself, DNB had a lien on the 707. In fact, DNB had a debenture on all of the otherwise unpledged assets of LTL. Tjontveit contends that although DNB knew of LTL’s purchase agreement with GMBH, neither the bank nor LTL notified GMBH of the existing lien.

The purchase contract called for payment of the balance owing on the Boeing 707 at a date after physical delivery of the aircraft. In February 1991, LTL delivered the 707, along with a purchase invoice, to GMBH in England. On its first take-off following delivery, an engine on the 707 failed, but the plane landed safely in Brussels, Belgium. GMBH obtained a replacement engine for $535,000 U.S. and installed it on the aircraft. While the 707 was in the possession of a lessee of GMBH, Mercury Airways, in Brussels, DNB seized the plane, claiming that *802 LTL had failed to perform certain of its obligations to DNB. In 1993, GMBH assigned its right to prosecute this action to Tjontveit.

Tjontveit initially brought this action pro se against DNB in Texas state court on August 26, 1996. After DNB removed the case to federal court on October 21, 1996, Tjontveit retained counsel and amended his complaint. In the amended complaint, Tjontveit seeks recovery for breach of contract, common law fraud, fraudulent inducement, civil conspiracy, fraudulent concealment, and breach of fiduciary duty. Tjontveit claims that in September 1990, DNB breached its fiduciary duiy to Nord as a beneficiary under the trust agreement by failing to deliver the Air Express stock to Nord. Tjontveit further complains that DNB failed to disclose the lien it held on the Boeing 707 and wrongfully seized the aircraft from GMBH’s lessee.

On May 9, 1997, DNB filed the instant motion to dismiss based on the doctrine of forum non conveniens, or alternatively, to stay, on the grounds that Norway is a more convenient forum. DNB contends that both of the claims now asserted by Tjontveit were released in a settlement agreement executed in Oslo, Norway, dated January 13, 1994. The settlement agreement contains a forum selection clause and a choice-of-law provision in which the parties agree to resolve any disputes concerning the agreement in the Oslo City Court in Oslo, Norway, under Norwegian law. DNB brought legal proceedings in Norway to foreclose liens on real estate that are also a subject of the agreement.

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997 F. Supp. 799, 1998 U.S. Dist. LEXIS 11930, 1998 WL 124516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tjontveit-v-den-norske-bank-asa-txsd-1998.