Federal Circuits, 11th Cir. (June 27, 1986)
Docket number: 85-5167
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U.S. Supreme Court - Helicopteros Nacionales de Colombia, S. A. v. Hall, 466 U.S. 408 (1984)
U.S. Supreme Court - Shaffer v. Heitner, 433 U.S. 186 (1977)
U.S. Supreme Court - Hanson v. Denckla, 357 U.S. 235 (1958)
U.S. Supreme Court - Perkins v. Benguet Consol. Mining Co., 342 U.S. 437 (1952)
U.S. Supreme Court - McGee v. International Life Ins. Co., 355 U.S. 220 (1957)
U.S. Court of Appeals for the 11th Cir. - American Charities v. Pinellas County (11th Cir. 2000)
U.S. Court of Appeals for the 11th Cir. - Associated Transport Line, Inc., Commercial Union Assurance Company, Plc, on Behalf of Certain Underwriters Institute of London Underwriters, Plaintiffs-Appellants, v. Productos Fitosanitarios Proficol El Carmen, S.A., Defendant-Appellee., 197 F.3d 1070 (11th Cir. 1999) Inc., Commercial Union Assurance Company, Plc, on Behalf of Certain Underwriters Institute of London Underwriters, Plaintiffs-Appellants, v. Productos Fitosanitarios Proficol El Carmen, S.A., Defendant-Appellee.
U.S. Court of Appeals for the 11th Cir. - Nippon Credit Bank v. Matthews (11th Cir. 2002)
Arthur Roth, Miami, Fla., for defendant-appellant.
C. Douglas Skinner, Jay M. Levy, Hershoff and Levy, P.A., Miami, Fla., for plaintiff-appellee.Appeal from the United States District Court for the Southern District of Florida.Before GODBOLD, Chief Judge, FAY, Circuit Judge, and PECK*, Senior Circuit Judge.GODBOLD, Chief Judge:This breach of contract case was tried in SD Florida. It was brought by a Florida plaintiff against a Costa Rican defendant and arose out of a contract to be performed by plaintiff for defendant in Costa Rica. The district court, 601 F.Supp. 457, held that its exercise of in personam jurisdiction over the defendant did not exceed the limits of due process. We hold to the contrary and reverse.Sea Lift, Inc., the plaintiff, is a Florida corporation engaged in the marine salvage business. Defendant Refinadora Costarricense de Petroleo, S.A. (RECOPE) is a state-owned Costa Rican company that refines petroleum. RECOPE does not maintain an office or generally conduct business in Florida.RECOPE owns the "booster barge" HC-24. It was using the HC-24 in a dredging operation to expand the harbor and build a new port facility at Port Moin, Costa Rica. The HC-24 took on water during a storm at Port Moin and subsequently capsized. The barge was insured through Instituto Nacional Seguros, which co-insured a portion of the coverage with Lloyd's of London. RECOPE reported the capsize to Instituto Nacional, which in turn reported to Lloyd's.Representatives of London Salvage, a New York affiliate of Lloyd's, went to Florida to solicit Sea Lift's services in the salvage of the HC-24. The district court found that these representatives were acting for RECOPE. Officials of Sea Lift then travelled to Costa Rica to look at the barge and to determine a reasonable price for its salvage. Sea Lift telexed the proposed price from Florida to Costa Rica.1 RECOPE signed the contract in Costa Rica and sent it to Miami, where it was signed by Sea Lift.The contract is a standard form "No Cure-No Pay" salvage agreement approved and published by Lloyd's. This standard agreement is, as the district court found, "the most widely used salvage contract in the world." The standard form was modified to include a fixed price of $265,000 for the salvage; the standard clause would have provided for arbitration to determine Sea Lift's compensation. There was also an added provision by which the parties agreed to form a separate contract after the salvage operation to restore the barge to operating condition for the sum of $105,000. The modification and the addition were the only substantive changes made on the standard form. The standard form provides that the agreement is to be governed by English law.Shortly after the contract was executed Sea Lift dispatched two vessels to Costa Rica to undertake the salvage. The operation did not go smoothly, however, and when it was complete RECOPE refused Sea Lift's demands for payment. Sea Lift brought suit against RECOPE and other parties in federal district court in Florida. The other defendants were dismissed and, after a bench trial, judgment was entered for Sea Lift.On this appeal RECOPE contends that the district court was without in personam jurisdiction, that venue was improper and that Sea Lift's representations about when work would begin were erroneously discounted by the district court. Because we conclude that the exercise of in personam jurisdiction over RECOPE exceeded the limits of due process,2 we do not reach RECOPE's other contentions.To determine whether the exercise of in personam jurisdiction is consistent with due process3 we must determine whether RECOPE had "certain minimum contacts with [the forum state] such that the maintenance of the suit does not offend 'traditional notions of fair play and substantial justice.' " Borg-Warner Acceptance Corp. v. Lovett & Tharpe, Inc., 786 F.2d 1055 (11th Cir.1986), quoting International Shoe v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945). The due process clause permits a state to exercise "general jurisdiction" over the person of a foreign corporation "if there are continuous and systematic general business contacts between the state and the foreign corporation, even if the cause of action does not relate to [the defendant's] activities in the forum state." Borg-Warner, 786 F.2d at 1057; Helicopteros Nacionales de Columbia, S.A. v. Hall, 466 U.S. 408, 413-14 & n. 9, 104 S.Ct. 1868, 1872 & n. 9, 80 L.Ed.2d 404 (1984); Perkins v. Benguet Consol. Mining Co., 342 U.S. 437, 72 S.Ct. 413, 96 L.Ed. 485 (1952); see also, McGee v. International Life Ins. Co., 355 U.S. 220, 223, 78 S.Ct. 199, 201, 2 L.Ed.2d 223 (1957). Here the district court found that RECOPE does not engage in general business activity in Florida. Sea Lift does not contest this finding. Therefore RECOPE is not constitutionally subject to "general" in personam jurisdiction in Florida.We must also determine whether the person of RECOPE is within the "specific jurisdiction" of Florida courts. This inquiry involves the question whether the case "arises out of" or "relates to" RECOPE's contacts with the state of Florida. See Helicopteros, 466 U.S. at 414 n. 8, 104 S.Ct. at 1872 n. 8. If the case does so arise and relate, we must then consider " 'the relationship among the defendant, the forum, and the litigation' to determine whether the exercise of jurisdiction [is] consistent with due process." Borg-Warner, 786 F.2d at 1057, quoting Shaffer v. Heitner, 433 U.S. 186, 204, 97 S.Ct. 2569, 2580, 53 L.Ed.2d 683 (1977). This relationship will not support the exercise of in personam jurisdiction unless it includes "some act by which the defendant purposely avails itself of the privilege of conducting activities within the forum state, thus invoking the benefits and protections of its laws." Elkhart Eng'g Corp. v. Dornier Werke, 343 F.2d 861, 866 (5th Cir.1965), quoting Hanson v. Denckla, 357 U.S. 235, 253, 78 S.Ct. 1228, 1239, 2 L.Ed.2d 1283 (1958).4 "Considerations such as the quality, nature, and extent of the activity in the forum, the foreseeability of consequences within the forum from activities outside it ... relate to whether it can be said that the defendant's actions constitute 'purposeful availment.' " Prejean v. Sonatrach, Inc., 652 F.2d 1260, 1268 (5th Cir.1981).The district court considered the following to be relevant contacts between RECOPE and Florida: the solicitation of Sea Lift by RECOPE agents present in Florida for that specific purpose, the sending of the standard form contract to Sea Lift in Florida to be signed and executed, and RECOPE's failure "to perform an act required by the contract to be performed in Florida," i.e., failure to pay Sea Lift in U.S. dollars. We agree that this case arises out of and relates to these contacts, but we cannot conclude that they show that RECOPE has invoked the benefits and protections of Florida law.The mere "foot-fall" of the defendant's agents "on the State's soil" does not in the relevant sense invoke the benefits and protections of the laws of the forum. Wisconsin Elec. Mfr. Co. v. Pennant Prods., Inc., 619 F.2d 676, 678 n. 8 (7th Cir.1980), quoting Erlanger Mills, Inc. v. Cohoes Fibre Mills, Inc., 239 F.2d 502, 509 (4th Cir.1956). Nor does the existence of a contract between the foreign defendant and a resident of the forum state automatically amount to "purposeful availment." See Afram Export Corp. v. Metallurgiki Halyps, S.A., 772 F.2d 1358, 1362 (7th Cir.1985), citing Burger King Corp. v. Rudzewicz, --- U.S. ----, 105 S.Ct. 2174, 2185, 85 L.Ed.2d 528 (1985). A contract is "ordinarily but an intermediate step serving to tie up prior business negotiations with future consequences which themselves are the real object of the business transaction." Burger King, 105 S.Ct. at 2185, quoting Hoopeston Canning Co. v. Cullen, 318 U.S. 313, 316-17, 63 S.Ct. 602, 604-05, 87 L.Ed. 777 (1943). This case thus raises the often difficult question of what, beyond the bare contract, must be present to satisfy the "minimum contacts" rule? See Burger King, 105 S.Ct. at 2185 & n. 21 (citing discussions).A meeting in the forum state may constitute "purposeful availment" if it involves "significant negotiations of important terms." Neiman v. Rudolf Wolff & Co., 619 F.2d 1189, 1194 & n. 5 (7th Cir.1980); see also Hydrokinetics, Inc. v. Alaska Mechanical, Inc., 700 F.2d 1026, 1029 (5th Cir.1983), cert. denied,Try vLex for FREE for 3 days
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