Zveiter v. Brazilian National Superintendency of Merchant Marine

833 F. Supp. 1089, 1993 WL 409665
CourtDistrict Court, S.D. New York
DecidedOctober 14, 1993
Docket92 Civ. 3548 (SS)
StatusPublished
Cited by22 cases

This text of 833 F. Supp. 1089 (Zveiter v. Brazilian National Superintendency of Merchant Marine) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zveiter v. Brazilian National Superintendency of Merchant Marine, 833 F. Supp. 1089, 1993 WL 409665 (S.D.N.Y. 1993).

Opinion

AMENDED OPINION AND ORDER

SOTOMAYOR, District Judge.

Defendants Brazilian National Superintendency of Merchant Marine (“BNSMM”), now known as the Brazilian National Department of Waterway Transportation, and Lloyd Bra-sileiro (“Lloyd”) move for summary judgment to dismiss this sexual harassment action. For the reasons stated below, the motion is DENIED.

I. Background

Defendant Lloyd is a navigational shipping corporation established under the laws of Brazil. As Brazilian law requires, Brazil owns a majority of Lloyd’s shares. Defendant BNSMM is a regulatory agency of Bra *1091 zil, established pursuant to executive decrees of the Brazilian government, and charged with jurisdiction over navigational waterways.

Lloyd and BNSMM share a combined New York office, which is headed by a Delegate and an Assistant Delegate. During the times relevant to this action, the Delegate was Jose Vinhae, and then Juca Colagrossi. The Assistant Delegate was Edward Crouch.

Plaintiff Clara Zveiter was a secretary to the Delegate and Assistant Delegate. One week after Mr. Colagrossi took over as Delegate, Ms. Zveiter asked for a twenty day vacation, and while she was on vacation, Irene Romanelli substituted for her as a secretary. One week after plaintiff returned from vacation, she was permanently replaced by Ms. Romanelli and was reassigned to serve as a receptionist, without diminution in salary or benefits. Subsequently, plaintiff and three other male employees were terminated.

Plaintiff brought this suit claiming sexual harassment, in violation of the New York Human Rights Law. She also alleged discrimination on the basis of her religion, but she has withdrawn that claim. She has also withdrawn her claim for intentional infliction of emotional distress. The status of an additional claim, for overtime compensation, is unclear, but appears to have been abandoned.

Defendants move for summary judgment dismissing the action on the grounds that they are immune from.suit by virtue of the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. §§ 1830, 1602-1611; that plaintiff has failed to state a claim for sexual harassment; and that plaintiff released the defendants from suit by signing a waiver shortly after she was terminated.

II. Discussion

A. Subject Matter Jurisdiction and The Foreign Sovereign Immunities Act

Defendants argue first that this Court lacks subject matter jurisdiction over plaintiffs claims because the defendants are immune from suit by virtue of the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S:C. §§ 1330, 1602-1611.

The FSIA “provides the sole basis for obtaining jurisdiction over a foreign state in the courts of this country.” Argentine Republic v. Amerada Hess Shipping Corp., 488 U.S. 428, 443, 109 S.Ct. 683, 693, 102 L.Ed.2d 818 (1989); 28 U.S.C. § 1330. The jurisdiction created by the FSIA, however, extends only to those claims “with respect to which the foreign state is not entitled to immunity either under [28 U.S.C. §§ 1605-1607] or under any applicable international agreement.” 28 U.S.C. § Í330(a). Thus, defendants’ motion presents an inquiry that must be addressed in two steps: first, I must determine whether the defendants are a “foreign state” within the meaning of the FSIA. If so, section 1330(a) is the exclusive means by which this Court may exercise subject matter jurisdiction over the action, and defendants are presumptively immunized from suit by virtue of 28 U.S.C. § 1604. Saudi Arabia v. Nelson, — U.S.-, 113 S.Ct. 1471, 123 L.Ed.2d 47 (1993). That leads to the second question: whether this action comes within one of the exceptions to immunity provided by 28 U.S.C. § 1605.

Are the Defendants a Foreign State?

Under 28 U.S.C. § 1603(a), a “foreign state” is defined to include its agencies and instrumentalities. An “agency or instrumentality of a foreign state” is any entity

(1) which is a separate legal person, corporate or otherwise, and
(2) which is an organ of a foreign state or political subdivision thereof, or a majority of whose shares or other ownership interest is owned by a foreign state or political subdivision thereof, and
(3) which is neither a citizen of a State of the United States as defined in section 1332(c) and (d) of this title, nor created under the laws of any third country.

28 U.S.C. §'1603(b).

Defendant Lloyd is a navigational shipping corporation organized by the Federal Government of Brazil pursuant to executive decrees, and the Brazilian government owns at *1092 least 51% of its shares, as required by Brazilian law. As an individual corporate entity “a majority of whose shares or other ownership interest is owned by a foreign state,” 28 U.S.C. § 1603(b)(2), and as plaintiff concedes in her Rule 3(g) statement, Lloyd is an agency or instrumentality of Brazil.

Defendant BNSMM, now known as the Brazilian National Department of Waterway Transportation, 1 is a regulatory agency of the federal government of Brazil with jurisdictional authority over navigational and merchant marine affairs on the high seas. As such, it is an agency or instrumentality of Brazil.

Thus, I conclude that there is no disputed question of material fact regarding the status of the defendants. As a matter of law, they are agencies or instrumentalities of Brazil and a “foreign state” within the meaning of the FSIA, and therefore 28 U.S.C. § 1330(a) provides the exclusive basis for this Court’s exercise of subject matter jurisdiction over the action.

The sole allegation of subject matter jurisdiction in the complaint, however, refers to diversity jurisdiction pursuant to 28 U.S.C. § 1332. Although Fed.R.Civ.P. 8

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833 F. Supp. 1089, 1993 WL 409665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zveiter-v-brazilian-national-superintendency-of-merchant-marine-nysd-1993.