Federal Circuits, 11th Cir. (January 14, 1983)
Docket number: 81-6188
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U.S. Supreme Court - Montana v. United States, 440 U.S. 147 (1979)
U.S. Supreme Court - McGee v. International Life Ins. Co., 355 U.S. 220 (1957)
U.S. Supreme Court - Milliken v. Meyer, 311 U.S. 457 (1940)
U.S. Supreme Court - International Shoe Co. v. Washington, 326 U.S. 310 (1945)
U.S. Supreme Court - American Surety Co. v. Baldwin, 287 U.S. 156 (1932)
Jawdet I. Rubaii, Alan K. Smith, Clearwater, Fla., for plaintiff-appellant.
Donald M. Hunt, Carr, Evans, Fouts & Hunt, Lubbock, Tex., for defendant-appellee.Appeal from the United States District Court for the Middle District of Florida.Before VANCE and ANDERSON, Circuit Judges, and JONES, Senior Circuit Judge.R. LANIER ANDERSON, III, Circuit Judge:Dr. I.H. Rubaii ("Rubaii") challenges the district court's order dismissing his lawsuit without prejudice for lack of personal jurisdiction over Lakewood Pipe of Texas ("Lakewood Pipe"). We affirm the district court. Applying the doctrine of res judicata, we hold that previous Florida state court decisions preclude relitigation of the jurisdictional issue related to Rubaii's contract claims. As for Rubaii's tort claims, we rely on the relevant minimum contacts standards to uphold the district court's determination that it lacks personal jurisdiction over Lakewood Pipe.1I.Although some facts are disputed, the background essential to adjudicating this lawsuit seems clear. On September 12, 1974, Rubaii entered into a contract with Federal Supply, a Florida corporation. This contract provided that Rubaii would assist Federal Supply to obtain contracts with Arab oil-producing nations in exchange for 50% of the gross profits thereby received. On January 29, 1975, Federal Supply, with Rubaii's assistance, entered into a contract with the Iraqi Ministry of Agriculture and Agrarian Reform to sell piping to Iraq. Under the terms of this contract, the Iraqi Ministry agreed to pay for the piping by a letter of credit in favor of Federal Supply. Because of difficulties in performing its part of the bargain, Federal Supply entered into an agreement with Lakewood Pipe on February 8, 1975. This agreement assigned to Lakewood Pipe the rights and obligations of Federal Supply as set forth in the contract between Federal Supply and the Iraqi Ministry. Lakewood Pipe agreed to supply the piping to Iraq. Lakewood Pipe also specifically agreed "to guarantee brokerage commissions due in connection with the performance of obligations of Federal." Record, vol. I, at 18.Thereafter, Federal Supply filed a Chapter 11 bankruptcy petition. As Rubaii describes it, the bankruptcy court sustained Federal Supply's obligation to him, but he was unable to collect payment despite his best efforts. As a result, Rubaii instituted a lawsuit against Lakewood Pipe in the Florida state courts. Lakewood Pipe raised the defense of personal jurisdiction. At first, the Florida trial court ruled that Lakewood Pipe's guarantee of brokerage commissions justified Florida jurisdiction. The Florida appellate court reversed and remanded so that the trial court could determine if Lakewood Pipe had other contacts with Florida which would enable the state courts to exercise jurisdiction. Lakewood Pipe of Texas, Inc. v. Rubaii, 379 So.2d 475, 478 (2d Fla.Dist.Ct.App.1979). On remand, the trial court decided that it lacked jurisdiction over Lakewood Pipe under Florida's long-arm statute, Fla.Stat.Ann. Sec. 48.193(1)(g) (West Supp.1981).2 The action was therefore dismissed. Technical Consultant Services v. Lakewood Pipe of Texas, Inc., No. 79-3836-7 (Fla.Cir.Ct. Apr. 11, 1980) (order on jurisdiction). Later, the trial court denied Rubaii's motion for rehearing. In its order denying rehearing, the trial court specified that its dismissal was without prejudice, so that Rubaii could bring an action in the appropriate forum. Technical Consultant Services v. Lakewood Pipe of Texas, Inc., No. 79-3836-7 (Fla.Cir.Ct. Apr. 30, 1980) (order on motion for rehearing), aff'd per curiam sub nom., Rubaii v. Lakewood Pipe of Texas, 394 So.2d 1160 (2d Fla.Dist.Ct.App.1981).Rubaii then brought this action to the federal courts. The U.S. District Court for the Middle District of Florida held that Lakewood Pipe did not have sufficient minimum contacts with Florida. Thus, the court dismissed the action without prejudice. Rubaii v. Lakewood Pipe of Texas, No. 80-910 (M.D.Fla. Nov. 4, 1981) (order of dismissal). Rubaii's appeal to this court followed.II.With respect to Rubaii's contract claims, we hold that the doctrine of res judicata bars further litigation on the question whether there is personal jurisdiction over Lakewood Pipe in Florida. Under the doctrine of res judicata, "a final judgment on the merits bars further claims by parties or their privies on the same cause of action." Montana v. United States, 440 U.S. 147, 153, 99 S.Ct. 970, 973, 59 L.Ed.2d 210 (1979). Here, all requisites for applying res judicata have been satisfied. It is well-settled that res judicata applies to jurisdictional questions. Underwriters National Assurance Co. v. North Carolina Life & Accident & Health Insurance Guaranty Association, --- U.S. ----, ----, 102 S.Ct. 1357, 1366, 71 L.Ed.2d 558, 571 (1982) (quoting American Surety Co. v. Baldwin, 287 U.S. 156, 166, 53 S.Ct. 98, 101, 77 L.Ed. 231 (1932)). In this case, the Florida trial court's order dismissing for want of personal jurisdiction operates as a final judgment on the merits. The Florida trial court ruled that Florida does not have personal jurisdiction over Lakewood Pipe under Fla.Stat.Ann. Sec. 48.193(1)(g) (West Supp.1981) (action for breach of contract). Technical Consultant Services v. Lakewood Pipe of Texas, Inc., No. 79-3876-7 (Fla.Cir.Ct. Apr. 11, 1980) (order on jurisdiction). Florida's Second District Court of Appeals affirmed the trial court's denial of rehearing.3 A federal district court sitting in diversity has personal jurisdiction over the defendant to the extent permitted by state law. Moore v. Lindsey, 662 F.2d 354, 357-58 (5th Cir.1981);4 Gold Kist, Inc. v. Baskin-Robbins Ice Cream Co., 623 F.2d 375, 377 (5th Cir.1980); Washington v. Norton Manufacturing, Inc., 588 F.2d 441, 444 (5th Cir.), cert. denied,Try vLex for FREE for 3 days
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