UPS Supply Chain Solutions, Inc. v. EVA Airways Corporation

Court of Appeals for the Second Circuit·Decided July 19, 2023·No. 21-2867·Published

Opinion

21-2867 UPS Supply Chain Solutions, Inc. v. EVA Airways Corporation

United States Court of Appeals For the Second Circuit

August Term 2022

Argued: November 18, 2022 Decided: July 19, 2023

No. 21-2867

NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA., Plaintiff,

v.

UPS SUPPLY CHAIN SOLUTIONS, INC., Defendant-Third-Party Plaintiff-Appellant, v.

EVA AIRWAYS CORPORATION,

Third-Party Defendant-Appellee, DOES 1–10,

Third-Party Defendants. ∗

Appeal from the United States District Court for the Southern District of New York No. 20-cv-2818, Edgardo Ramos, Judge.

The Clerk of the Court is respectfully directed to amend the caption accordingly.

Before: JACOBS, LOHIER, and NATHAN, Circuit Judges.

Appellant UPS Supply Chain Solutions, Inc. was sued in the Southern District of New York and filed a third-party complaint against Appellee EVA Airways Corporation, seeking indemnification and contribution. The district court granted EVA’s motion to dismiss for lack of personal jurisdiction. UPS now appeals, arguing that EVA was subject to specific personal jurisdiction based on both New York’s long-arm statute and the Montreal Convention. We hold that UPS has failed to allege the in-state injury required for specific jurisdiction in New York, that the Montreal Convention does not confer personal jurisdiction, and that the record does not establish that EVA consented to personal jurisdiction in light of the Convention or its contract with UPS. Accordingly, we AFFIRM.

Judge Lohier concurs in a separate opinion.

MARK P. ESTRELLA, Countryman & McDaniel, LLP, Los Angeles, CA, for Appellant.

CHRISTOPHER CARLSEN, Clyde & Co. US LLP, New York, NY, for Appellee.

NATHAN, Circuit Judge:

The Montreal Convention, a multilateral treaty which entered into force in 2003, governs claims arising out of the international transportation of persons, baggage, and cargo by air. 1 The treaty includes jurisdictional articles providing where such claims can be brought. This appeal presents a question of first

1Convention for the Unification of Certain Rules for International Carriage by Air, May 28, 1999, T.I.A.S. No. 13,038.

impression: whether the Montreal Convention confers personal jurisdiction. In particular, we must determine whether by enabling actions arising under the treaty to be brought in the courts of certain countries, the Montreal Convention provides those courts with personal jurisdiction over the parties. Consistent with our decisions interpreting the Montreal Convention’s predecessor, we conclude that it does not. The Montreal Convention’s jurisdictional provisions place a limit on when courts of the United States, as opposed to courts of other signatory nations, may exercise jurisdiction over a claim arising under the treaty. Under U.S. law, this is referred to as treaty jurisdiction, which is a form of subject-matter jurisdiction. The Montreal Convention does not, however, alter our domestic personal jurisdiction requirements, which must be independently established.

Because the Montreal Convention does not confer personal jurisdiction, and because Appellant has not otherwise established a basis for personal jurisdiction over Appellee in this action, we affirm the district court’s dismissal for lack of personal jurisdiction.

BACKGROUND

This case began with the shipment of 24 pallets of vitamins from Chicago to South Korea. National Union Fire Insurance Company of Pittsburgh, PA insured the vitamins, and UPS Supply Chain Solutions, Inc. contracted for them to be carried by EVA Airways Corporation, an airline headquartered in Taiwan. EVA carried the shipment on non-stop flights from Chicago to Taiwan and then from Taiwan to South Korea. The vitamins allegedly arrived damaged, and this litigation ensued.

In April 2020, National Union sued UPS in the Southern District of New York, asserting that UPS breached its duties as a common carrier under the Montreal Convention. UPS did not assert lack of personal jurisdiction as an affirmative defense against National Union’s action for damages. Facing a potential adverse judgment, UPS filed a third-party complaint against EVA in January 2021, seeking indemnity and contribution. EVA timely filed an answer in February 2021, in which it asserted lack of personal jurisdiction as an affirmative defense. EVA requested a pre-motion conference on the issue of personal

jurisdiction in March 2021, and then moved to dismiss for lack of personal jurisdiction in April 2021. In its opposition to the motion, UPS argued that the district court could assert specific personal jurisdiction over EVA either under New York’s long-arm statute, pursuant to the Montreal Convention, or pursuant to a consent theory of personal jurisdiction. In a footnote, UPS suggested that EVA’s delay in moving to dismiss may also constitute forfeiture. UPS conceded that the district court in New York lacked general jurisdiction over EVA.

On October 18, 2021, the district court (Ramos, J.) granted EVA’s motion to dismiss and terminated EVA as a third-party defendant. Nat’l Union Fire Ins. Co. of Pittsburgh, PA. v. UPS Supply Chain Sols., Inc., No. 20-cv-2818, 2021 WL 4868583 (S.D.N.Y. Oct. 18, 2021). The court reasoned that UPS did not establish jurisdiction under New York’s long-arm statute and that the Montreal Convention’s jurisdictional provisions relate to subject-matter jurisdiction, not personal jurisdiction. Id. at *2–3. The court also rejected UPS’s forfeiture argument because EVA promptly raised the issue of personal jurisdiction in its answer and requested a pre-motion conference. Id. at *1 n.1.

On November 17, 2021, UPS filed a notice of appeal from the October 18 order, which the district court docketed as a notice of interlocutory appeal. While this appeal was pending, UPS and National Union entered into a settlement agreement. On August 18, 2022, the district court entered a final order dismissing the case pursuant to a joint stipulation between National Union and UPS.

DISCUSSION

I. Appellate Jurisdiction Before deciding whether the district court had personal jurisdiction over EVA, we must address whether we have jurisdiction over this appeal. Following oral argument, we issued an order directing the parties to submit supplemental briefing addressing whether UPS appealed from a final decision of the district court, and if not, whether we could nevertheless exercise appellate jurisdiction. Both UPS and EVA maintain that we have appellate jurisdiction. We agree.

Generally, we may exercise jurisdiction only over appeals from “final decisions of the district courts.” 28 U.S.C. § 1291. “An order that adjudicates . . . the rights and liabilities of fewer than all of the remaining parties[] is not a final

order unless the court directs the entry of a final judgment as to the dismissed claims or parties ‘upon an express determination that there is no just reason for delay.’” Citizens Accord, Inc. v. Town of Rochester, 235 F.3d 126, 128 (2d Cir. 2000) (quoting Fed. R. Civ. P. 54(b)). The district court’s October 18 order granting EVA’s motion to dismiss was not a final order because it did not resolve National Union’s claims against UPS and the district court did not direct entry of a final judgment as to EVA under Rule 54(b). Accordingly, UPS’s appeal was premature. Nevertheless, the district court’s order of dismissal on August 18, 2022, prior to our hearing the appeal, adjudicated the rights of all remaining parties and thereby “cured any jurisdictional infirmity” under 28 U.S.C. § 1291. Smith ex rel. Smith v. Half Hollow Hills Cent. Sch. Dist., 298 F.3d 168, 171 (2d Cir. 2002).

Free access — add to your briefcase to read the full text and ask questions with AI

UPS Supply Chain Solutions, Inc. v. EVA Airways Corporation, (2d Cir. 2023).

UPS Supply Chain Solutions, Inc. v. EVA Airways Corporation (UPS Supply Chain Solutions, Inc. v. EVA Airways Corporation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Medellin v. Texas
552 U.S. 491 (Supreme Court, 2008)
Penguin Group (USA) Inc. v. American Buddha
609 F.3d 30 (Second Circuit, 2010)
Community Bank, N.A. v. Riffle
617 F.3d 171 (Second Circuit, 2010)
Edmund J. Smith v. Canadian Pacific Airways, Ltd.
452 F.2d 798 (Second Circuit, 1971)
Allan Campbell v. Air Jamaica, Ltd.
863 F.2d 1 (Second Circuit, 1988)
Licci Ex Rel. Licci v. Lebanese Canadian Bank, SAL
673 F.3d 50 (Second Circuit, 2012)
Porina Ex Rel. Porins v. Marward Shipping Co.
521 F.3d 122 (Second Circuit, 2008)
LaMarca v. Pak-Mor Manufacturing Co.
735 N.E.2d 883 (New York Court of Appeals, 2000)
Ingraham v. Carroll
687 N.E.2d 1293 (New York Court of Appeals, 1997)
Citizens Accord, Inc. v. Town of Rochester
235 F.3d 126 (Second Circuit, 2000)
Whitaker v. American Telecasting, Inc.
261 F.3d 196 (Second Circuit, 2001)
D.H. Blair & Co. v. Gottdiener
462 F.3d 95 (Second Circuit, 2006)