Wilkinson v. Carnival Cruise Lines, Inc.

645 F. Supp. 318, 1986 A.M.C. 2322, 1985 U.S. Dist. LEXIS 15932
CourtDistrict Court, S.D. Texas
DecidedSeptember 17, 1985
DocketCiv. A. C-84-217
StatusPublished
Cited by5 cases

This text of 645 F. Supp. 318 (Wilkinson v. Carnival Cruise Lines, Inc.) 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
Wilkinson v. Carnival Cruise Lines, Inc., 645 F. Supp. 318, 1986 A.M.C. 2322, 1985 U.S. Dist. LEXIS 15932 (S.D. Tex. 1985).

Opinion

ORDER GRANTING DEFENDANT’S MOTION TO TRANSFER

HEAD, District Judge.

This Court has diversity jurisdiction over Plaintiff’s suit for personal injuries sustained while she was a passenger on one of Defendant’s cruise ships. Plaintiff is a resident of Oklahoma. The M/V TROPI-CALE is a ship registered in the country of Panama. Plaintiff’s injury occurred on the M/V TROPICALE in the waters of the Pacific off the Mexican coast. The M/V TROPICALE sailed from California. Defendant is a Panama corporation. Defendant has filed a motion to dismiss or transfer.

The first issue to be decided is whether subjecting Defendant Carnival Cruise Lines, Inc., to in personam jurisdiction in Texas is constitutionally permissible. Texas’s Long-Arm Statute, TEX.REV. CIV.STAT.ANN., art. 2031b (Vernon 1964 and Supp. 1964-1985), reaches as far as the Due Process Clause of the Fourteenth Amendment permits. Hall v. Helicopteros Nacionales de Colombia, S.A., 638 S.W.2d 870, 872 (Tex.1982), rev’d., 466 U.S. 408, 104 S.Ct. 1868, 80 L.Ed.2d 404 (1984). The due process test is two-fold: (1) the nonresident must have certain minimum contacts with the forum state; and (2) subjecting the non-resident to jurisdiction within the forum must be consistent with traditional notions of fair play and substantial justice. Thompson v. Chrysler Motors Corp., 755 F.2d 1162, 1168-69 (5th Cir. 1985).

Defendant maintains no offices and has no bank accounts in Texas. No Carnival ship has ever sailed into or out of Texas ports. There is no evidence that Defendant has entered into a written contract with any Texas business in the last five years. Defendant’s contacts with Texas arise from its relationship with various local travel agencies and from electronic and print advertising in Texas, including advertisements in the local Corpus Christi newspaper.

Tickets for Carnival cruises are reserved by travel agents nationwide and are approved and finally issued by Carnival Cruise Lines in Miami. Plaintiff submitted four depositions of local travel agents whose descriptions of the booking procedure used by Carnival concurred. When a client wants to take a cruise, the agents *320 call Carnival in Miami to make the booking. Carnival sends back confirmation, the agents send money directly to Carnival, and Carnival sends back the documents for the cruise. The agents are not provided with ticket stubs and are not authorized to issue tickets. The travel agencies act as independent contractors and take a percentage commission from each ticket. No other type of payment is received from Carnival. Each agent recalled receiving promotional materials from Carnival through the mail. None of the agents could recall having been approached by a Carnival salesperson.

Defendant Carnival’s advertising agency in charge of national advertising estimates the following expenditures for both electronic and print advertising in Texas: 1982 —$377,410; 1983 — $488,993; 1984 — $288,-887.

Plaintiff submitted an advertisement by Defendant which appeared in the local newspaper in January, 1985. The ad describes cruises which depart from Miami and Los Angeles and directs the reader to “See your travel agent.” Below the ad are two business cards of local travel agencies indicating that information and reservations can be obtained through the agencies. One of the travel agents deposed by Plaintiff indicated that “Carnival advertises in Corpus Christi all the time. For the last couple of months, Carnival has been advertising every Sunday on the travel page in The Caller-Times.’’ Carnival’s national advertising agency distributes materials to newspapers and arranges for publication and payment. Local travel agents are permitted at their own cost, to “tag” such advertising by placing their business cards in the same column.

Plaintiff submitted the deposition of a Houston Chronicle travel writer, who wrote a feature story in August, 1985, on one of Carnival’s new cruise ships. The writer indicated that the mailed invitation from Carnival participate in a travel agent’s preview of the new ship was accepted because the Chronicle determined that the story would be of interest to its readers and because the writer wanted to do the story. The writer was not paid by Carnival for the article.

Plaintiff relies on language in World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 100 S.Ct. 559, 566, 62 L.Ed.2d 490 (1984), indicating that “advertising reasonably calculated to reach the state” is one of many factors which could support the exercise of jurisdiction. The Fifth Circuit has held that this language does not mean that advertising reasonably calculated to reach the state, would, without more, permit assertion of personal jurisdiction over the advertiser. Growden v. Ed Bowlin and Associates, Inc., 733 F.2d 1149, 1151 (5th Cir.1984), citing Loumar v. Smith, 698 F.2d 759, 763-64 (5th Cir.1983). The Fifth Circuit has not addressed local advertising except to imply that the result might be different if there were local advertising. Id. In Loumar, the Fifth Circuit indicated that advertising in nationally circulated trade publications may be sufficient to constitute a purposeful availment of the facilities of the state in which the publication circulates if there is evidence about what products are advertised, how widely the publications are circulated in the state, and the amount of business obtained from the advertisements.

A relationship identical to that of Defendant with local travel agencies has been held not to be a sufficient basis for the assertion of in personam jurisdiction. Mulhern v. Holland-America Cruises, 393 F.Supp. 1298, 1302 (D.N.H.1975). The Mulhem holding is based on the status of the travel agencies, which is akin to independent contractors. Id., at 1302. See Stanga v. McCormick Shipping Corp., 268 F.2d 544, 551 (5th Cir.1959). In addition to its relationship with local travel agents through which Defendant indirectly serves and seeks to serve the Texas market, Defendant regularly advertises in Texas media. World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286, 100 S.Ct. 559, 566, 62 L.Ed.2d 490 (1984). Defendant spent $1,150,000 in 1982 through 1984 on electronic and print advertising in Texas. The *321

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Bluebook (online)
645 F. Supp. 318, 1986 A.M.C. 2322, 1985 U.S. Dist. LEXIS 15932, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilkinson-v-carnival-cruise-lines-inc-txsd-1985.