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

CourtCourt of Appeals for the Second Circuit
DecidedJuly 19, 2023
Docket21-2867
StatusPublished

This text of UPS Supply Chain Solutions, Inc. v. EVA Airways Corporation (UPS Supply Chain Solutions, Inc. v. EVA Airways Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

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,

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.

2 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.

3 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

4 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.

5 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

6 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)).

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