Wartsila NSD North America, Inc. v. Hill International, Inc.

269 F. Supp. 2d 547, 2003 WL 21492483
CourtDistrict Court, D. New Jersey
DecidedJune 19, 2003
DocketCivil Action 99-4565 (SSB)
StatusPublished
Cited by15 cases

This text of 269 F. Supp. 2d 547 (Wartsila NSD North America, Inc. v. Hill International, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wartsila NSD North America, Inc. v. Hill International, Inc., 269 F. Supp. 2d 547, 2003 WL 21492483 (D.N.J. 2003).

Opinion

OPINION REGARDING THIRD-PARTY DEFENDANTS’ MOTION TO DISMISS HILL INTERNATIONAL, INC.’S THIRD PARTY COMPLAINT FOR LACK OF PERSONAL JURISDICTION PURSUANT TO FED. R. CIV. P. 12(b)(2)

BROTMAN, District Judge.

DefendanVThird Party Plaintiff Hill International, Inc. (“Hill”) filed a third party complaint in this action on August 20, 2001, seeking contribution (Count I) and indemnification (Count II) from third party defendants, John H. Clegg, Esq.(“Clegg”), Daphne McNutt, Esq. (“McNutt”), and Chaffe, McCall, Phillips, Toler & Sarpy LLP (“Chaffe firm”). Each of the third party defendants now moves, pursuant to Federal Rule of Civil Procedure 12(b)(2), to dismiss Hill’s third party complaint based on this Court’s purported lack of personal jurisdiction. For the reasons set forth below, that motion will be denied.

I. FACTUAL AND PROCEDURAL BACKGROUND

In July 1994, Wartsila Diesel, Inc., an engineering and construction company and the predecessor to Plaintiff Wartsila NSD North America, Inc. (“Wartsila”), entered into a contract with Coastal Salvadorian Ltd. (“Coastal”), wherein Wartsila agreed to design, engineer, procure, construct, start up and test a diesel engine power plant in Nejapa, El Salvador (“the Project”). (PL’s First Supplemental & Amended Complaint at ¶ 6). Wartsila, whose business had up to that point focused primarily on the sale and maintenance of diesel engines, in turn subcontracted much of the plant’s construction to a variety of other entities, including Black & Veatch International (“BVI”). (Id. at ¶¶7-8). The Project quickly fell behind schedule, resulting in numerous contractual disputes between Wartsila, BVI, and Coastal. (Id. at ¶ 9). In an effort to get the project back on track, Wartsila sought the services of a construction consulting firm that could provide expert advice and management for the Project. (Id. at ¶ 10).

On January 18, 1995, Hill International, Inc. submitted a proposal for the consulting position. (Id. at ¶31). In its proposal, Hill recommended that Richard LeFebvre, one of the firm’s senior consultants, be assigned to the Project to “collect, organize and evaluate ... factual information and report., his findings as to the best way to proceed with the completion of the project.” (Id. at ¶ 33). Le-Febvre’s responsibilities were to include gathering information and materials related to the construction project, visiting the project site “to evaluate the adequacy of the plans and specifications,” and comparing the actual performance of the construction work to Wartsila’s obligations under its contract with Coastal. (Id.). Attached to the proposal was a copy of LeFebvre’s professional resume which represented that he: (a) had received a B.S. in electrical engineering from Penn State in 1966; (b) had earned a B.A. in business administration from Duquesne University in 1969; (c) had taken courses in business law at the University of North Florida in 1983; and (d) was registered and licensed as a professional en *550 gineer in Pennsylvania, New York, and Massachusetts. (Id. at ¶ 32).

On January 24, 1995, Wartsila and Hill entered into a written consulting agreement that incorporated by reference the January 18 proposal. (Id. at ¶ 34). Pursuant to the terms of the agreement, Hill assigned LeFebvre to work as a senior consultant on the Project. (Id. at ¶ 35). LeFebvre was quickly promoted by Wart-sila to the position of Project Manager and continued to work on the Project as a Hill employee until May 25, 1995. (Id. at ¶¶ 37, 40). Among his responsibilities was the task of analyzing issues bearing on potential claims and defenses in contractual disputes between Wartsila and BVI. (Id. at ¶¶ 38-39).

On June 1, 1995, with Hill’s approval, Wartsila hired LeFebvre “as an independent contractor to provide assistance with construction and claims management on the Project.” (Id. at ¶ 41). Based in part on LeFebvre’s analysis and recommendations, Wartsila in May 1996 decided to pursue claims against BVI before the American Arbitration Association and retained the Louisiana law firm of Chaffe, McCall, Phillips, Toler & Sarpy, L.L.P., and two of its attorneys, John H. Clegg, Esq., and Daphne McNutt, Esq., to initiate arbitration proceedings against BVI in Charlotte, North Carolina. (Id. at ¶ 43; Third Party Complaint at ¶ 11). Le-Febvre became a “key witness” in the proceedings due to his intimate and extensive knowledge of the facts underlying the points of contention between the two parties and his participation in the drafting of various “claim support” documents. (Pl.’s First Amended Compl. at ¶¶ 43^14).

At the arbitration proceedings in September 1997, LeFebvre offered testimony regarding the academic and professional credentials listed on his resume. (Id. at ¶ 47). On September 8, 1997, toward the end of his direct testimony, Wartsila became aware, “for the first time,” that there were questions concerning LeFebvre’s educational and professional credentials when counsel for BVI requested that Le-Febvre execute a release for background academic information. (Id. at ¶ 48). Later that day, after the proceedings had been adjourned, LeFebvre admitted to Wartsila’s attorneys that the statements on his resume concerning a business degree from Duquesne University were not accurate. (Id. at ¶ 49). He allegedly told Wartsila that Hill had asked him to overstate the extent of his training at Du-quesne. (Id.).

The next morning, LeFebvre requested and received from Hill a revised resume which omitted any reference to a business degree from Duquesne or business law courses at North Florida and modified the date on which he claimed to have received an electrical engineering degree from Penn State. (Id. at ¶ 50). When the proceedings resumed later that day, BVI’s attorneys subjected LeFebvre to a vigorous cross-examination, forcing him to acknowledge the obvious inconsistencies between the two resumes. LeFebvre nevertheless insisted that the revised resume was entirely accurate and truthful. (Id. at ¶ 50(b)). However, by the conclusion of the day’s proceedings, Wartsila’s attorneys were forced to concede that a hasty investigation into LeFebvre’s academic credentials had uncovered no evidence that he had ever received an engineering degree from Penn State or attended any of the other schools listed on his resume. (Id. at ¶ 51). Wartsila also found no evidence that LeFebvre had ever been licensed as a professional engineer in either New York, Pennsylvania, or Massachusetts. (Id.).

In light of LeFebvre’s perjury, Wartsi-la’s counsel withdrew his testimony, and *551 the arbitration panel granted Wartsila a short recess to restructure its case based on new witnesses. (Id. at ¶ 53). During that time, the company re-examined materials prepared by LeFebvre and discovered that he had improperly altered original “claim support” documents. (Id. at ¶ 53).

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269 F. Supp. 2d 547, 2003 WL 21492483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wartsila-nsd-north-america-inc-v-hill-international-inc-njd-2003.