BESOSA, District Judge.
Before the Court are defendants Repsol Petroleo, S.A. ("RPSA") and Repsol YPF Trading y Transporte, S.A.'s ("RYTTSA") motions to dismiss for lack of personal jurisdiction and failure to state a claim upon which relief can be granted. (Docket No. 99; Docket No. 100.) For the reasons discussed below, the Court
At about 12:30 a.m. on October 23, 2009, multiple fuel storage tanks exploded at the Gulf Oil Facility in Bayamon, Puerto Rico. (Docket No. 1 at p. 2.) As the M/T Cape Bruny unloaded its cargo of unleaded gasoline at the Facility, it overfilled the storage tanks, allowing the gasoline to spread and find an ignition source. Id. The explosion and subsequent fire created a large plume of smoke and spread hazardous materials over Bayamon, San Juan, and other neighboring municipalities. Id. at p. 3. The explosion registered on the Richter scale. Id. at p. 8.
Repsol Petroleo, S.A. ("RPSA") is a Spanish sociedad anonima, "akin to a corporation,"
RYTTSA is also a Spanish sociedad anonima with its headquarters and principal place of business in Madrid, Spain. (Docket No. 100-1 at p. 2.) Like RPSA, RYTTSA is not registered to do business in Puerto Rico; does not own or lease any real property in Puerto Rico; does not lease or maintain any office in Puerto Rico; has no employees, shareholders, officers, or directors in Puerto Rico; has no bank accounts in Puerto Rico; and has no telephone numbers listed in any directory in Puerto Rico. Id. RYTTSA has never filed a lawsuit in Puerto Rico. Id. at p. 3. Repsol YPF, S.A. owns 98.36% of RYTTSA and RPSA owns 1.64% of RYTTSA. Id. RYTTSA shipped four deliveries of gasoline to Puerto Rico in 2009. Id. at p. 15. These deliveries totaled 847,377 barrels and generated $57,692,228 in gross revenue for RYTTSA. Id. at pp. 16-18.
Plaintiffs allege that RPSA was the "voyage charterer" of the M/T Cape Bruny at the time of the explosion. (Docket No. 1 at p. 4.) Plaintiffs also allege that RYTTSA was acting as RPSA's agent when it chartered the M/T Cape Bruny to deliver unleaded gasoline to Puerto Rico. Id. at p. 6. RPSA denies that it was the voyage charterer of the M/T Cape Bruny and asserts that RYTTSA inadvertently used a form contract with RPSA's name on it when negotiating the charter party.
The charter party is governed by English Law and required RYTTSA and the owners of the M/T Cape Bruny to submit all disputes to arbitration in London. (Docket No. 137-29 at p. 2.) The charter party required RYTTSA to ensure a safe berth for the M/T Cape Bruny at port but did not require RYTTSA to warrant the safety of the port. Id. at p. 3. None of the owners and operators of the M/T Cape Bruny is a Puerto Rico corporation. (See Civil No. 09-2092 at Docket No. 83 at pp. 10-12.)
RPSA and RYTTSA both deny owning any of the cargo on the M/T Cape Bruny. (Docket No. 99-1 at p. 2; Docket No. 100-1 at p. 2.) RYTTSA purchased the unleaded gasoline that was transported on the M/T Cape Bruny from Petrogal. (Docket No. 137-10 at p. 14.) The sale to RYTTSA was FOB (Free on Board) and, therefore, risk of loss passed to RYTTSA when the
Pursuant to the terms of the contract between RYTTSA and AOT, title to the cargo passed to AOT when RYTTSA accepted AOT's stand by letter of credit. (Docket No. 137-17 at p. 4.) The cargo was loaded on the M/T Cape Bruny at Sines before October 17, 2009, but RYTTSA did not accept AOT's stand by letter of credit until October 20, 2009. (Docket No. 100-1 at p. 4; Docket No. 137-18 at p. 1.) The contract between RYTTSA and AOT also provides that "THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE CONSTRUCTION, VALIDITY AND PERFORMANCE OF THE AGREEMENT," and the parties will submit all disputes to the exclusive jurisdiction of the New York courts. Id. at 6. After the explosion at the Gulf Oil Facility, RYTTSA ordered the M/T Cape Bruny to deliver the remaining cargo to Guayanilla, Puerto Rico at AOT's request. (Docket No. 137-32 at p. 1-2.) In March of 2010, more than four months after the explosion, Medco Tankers sent RYTTSA an email informing it that the charterers of the M/T Cape Bruny had assigned the charter party to RYTTSA. (Docket No. 137-7 at p. 1.)
Plaintiffs allege that RPSA and RYTTSA were negligent in failing to take certain safety measures when offloading the cargo from the M/T Cape Bruny. (Docket No. 1 at pp. 20-24.) Plaintiffs also allege that RYTTSA negligently entrusted dangerous cargo to the M/T Cape Bruny and Gulf Oil Facility. Id. at pp. 24-25. Plaintiffs also bring claims against all defendants for trespass, nuisance, and failure to respond to an emergency. Id. at pp. 26-28.
Plaintiffs allege that the Court has admiralty jurisdiction pursuant to 28 U.S.C. § 1333 and the Extension of Admiralty Jurisdiction Act, 46 U.S.C. § 30101. (Docket No. 1 at p. 6.) Plaintiffs also invoke the Court's diversity jurisdiction "because the matter in controversy exceeds the sum or value of [$]75,000.00, exclusive of interests [sic] and costs, and the [p]laintiffs and/or [c]lass [m]embers are citizens of Puerto Rico and the defendants are citizens of different states or subjects of foreign States." Id. at p. 7. Plaintiffs also allege in the complaint that "[t]his Court's exercise of general [personal] jurisdiction is appropriate as to each of the defendants because they either have a principal place of business in Puerto Rico or have substantial or continuous physical contacts with Puerto Rico that approximate physical presence." Id. Plaintiffs subsequently modified their argument and now allege that the Court has specific personal jurisdiction over Repsol as voyage charterer and RYTTSA as Repsol's agent. (Docket No. 139 at p. 9.)
Plaintiffs filed their complaint against Antares Oil Services, LLC; Repsol Petroleo, S.A.; Mapfre; Astra Oil Company, LLC; Astra Oil Trading Limited, NV; Chevron Corporation; Vitol SA, Inc; Intertek Group; Intertek Oil Chemical & Agri; RYTTSA as agents of Repsol Petroleo,
On August 12, 2010, Caribbean Petroleum Corporation and Caribbean Petroleum Refining LP, defendants in a related case, filed voluntary petitions for bankruptcy pursuant to Chapter 11 of the United States Bankruptcy Code, 11 U.S.C. §§ 101 et seq. (Docket No. 70 at p. 1.) Finding unusual circumstances that would affect the bankruptcy debtors' ability to complete their reorganization, the Court extended the automatic stay to all defendants in the related case and this case. (Docket No. 172.) On February 8, 2013, the bankruptcy court approved a stipulation between the debtors, RPSA, and RYTTSA to lift the stay partially as to RPSA and RYTTSA. (Docket No. 178-1 at pp. 1-2.) RPSA and RYTTSA then moved to lift the stay partially in this Court so that the Court could rule on their motions to dismiss. (Docket No. 173.) On February 22, 2013, the Court granted the motion and partially lifted the stay in order to decide RPSA and RYTTSA's motions to dismiss for lack of personal jurisdiction and failure to state a claim. (Docket No. 178.) Intertek requested to join RPSA's motion to dismiss for failure to state a claim. (Docket No. 101.) The Court granted Intertek's motion. (Docket No. 102.) Plaintiffs subsequently opposed RPSA and RYTSSA's motions to dismiss. (Docket No. 139.) Defendants replied. (Docket No. 158; Docket No. 159.)
When a party submits "matters outside the pleading" in support of its motion to dismiss, the Court has the option of treating the motion to dismiss as a motion for summary judgment. Rodriguez v. Fullerton Tires Corp., 115 F.3d 81, 83 (1st Cir. 1997) (citing Fed.R.Civ.P. 12(d)). "All parties must be given a reasonable opportunity to present all the material that is pertinent to the motion." Fed.R.Civ.P. 12(d). RPSA and RYTTSA each submitted an affidavit in support of their motion to dismiss. (Docket No. 99-1; Docket No. 100-1.) Plaintiffs submitted 32 exhibits in opposition to RPSA and RYTTSA's motion to dismiss. (Docket No. 137-1-137-32.) Given that the movants and nonmovants have both submitted materials outside the pleadings in support of their positions, the Court will treat the motions to dismiss as motions for summary judgment.
The Court may grant a motion for summary judgment "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R.Civ.P. 56(a). "Only disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).
Under the summary judgment standard, the Court must view the evidence in the light most favorable to the non-moving party and give that party the benefit of any and all reasonable inferences. Id. at 255, 106 S.Ct. 2505. The Court does not make credibility determinations or
Plaintiffs allege in the complaint that "[t]his Court's exercise of general [personal] jurisdiction is appropriate as to each of the defendants because they either have a principal place of business in Puerto Rico or have substantial or continuous physical contacts with Puerto Rico that approximate physical presence." Id. Plaintiffs subsequently modified their argument and now allege that the Court has specific personal jurisdiction over Repsol as voyage charterer and RYTTSA as Repsol's agent. (Docket No. 139 at p. 9.) RPSA argues that it was not the voyage charterer, but even if it were the voyage charterer it did not purposefully avail itself of the privilege of conducting business in Puerto Rico and subjecting RPSA to the personal jurisdiction of this Court does not comport with "fair play and substantial justice." (Docket No. 99 at pp. 9-15.) RYTTSA echoes RPSA's argument that it has not purposefully availed itself of the privilege of conducting business in Puerto Rico and subjecting RYTTSA to the personal jurisdiction of this Court does not comport with "fair play and substantial justice." (Docket No. 100 at pp. 10-18.) As discussed below, the Court finds that neither RPSA nor RYTTSA has established minimum contacts with Puerto Rico. Accordingly, it lacks personal jurisdiction over RPSA and RYTTSA, and the case against both of them must be dismissed.
A court may exercise specific personal jurisdiction over a defendant when the forum state has a long-arm statute that authorizes jurisdiction over the defendant and the defendant "has certain minimum contacts with [the forum] such that maintenance of the suit does not offend traditional notions of fair play and substantial justice." Int'l. Shoe Co. v. Wash., 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945) (citations omitted) (internal quotation marks omitted). Puerto Rico's long-arm statute provides personal jurisdiction "to the full extent of constitutional authority," and, therefore, the Court proceeds to the due process analysis. Dalmau Rodriguez v. Hughes Aircraft Co., 781 F.2d 9, 12 (1st Cir.1986) (citing A.H. Thomas Co. v. Super. Ct. of Puerto Rico, 98 P.R.R. 864, 870 n. 5 (1970)).
"Like any standard that requires a determination of `reasonableness,' the `minimum contacts' test of International Shoe is not susceptible of mechanical application; rather, the facts of each case must be weighed to determine whether the requisite `affiliating circumstances' are present." Kulko v. Super. Ct. of Cal., 436 U.S. 84, 92,
Burger King Corp. v. Rudzewicz, 471 U.S. 462, 478-79, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985) (internal citations omitted).
The First Circuit Court of Appeals conducts a three-part minimum contacts analysis:
United Elec., Radio and Mach. Workers of Am. v. 163 Pleasant Street Corp., 960 F.2d 1080, 1089 (1st Cir.1992). The Gestalt
Based on the facts supported by the record, the Court is unable to find that plaintiffs' claims arise out of defendant RPSA or RYTTSA's contacts with Puerto Rico, or that either of the defendants purposefully availed itself of the privilege of conducting business in Puerto Rico. First, defendants' only contacts with the forum of Puerto Rico consist of sporadic shipments to Puerto Rico pursuant to contracts that call for delivery in San Juan. Although RPSA and RYTTSA contracted to deliver unleaded gasoline in San Juan, there is no allegation that they breached this duty.
Plaintiffs argue that RYTTSA breached its duty to provide a safe berth for the M/T Cape Bruny. The safe berth clause in the charter party, however, only requires that RYTTSA ensure that the M/T Cape Bruny could "always lie safely afloat at such port." There is no support in the record for plaintiffs' allegation that RYTTSA breached this duty. Plaintiffs have not alleged that the M/V Cape Bruny ran aground. Rather, they allege that the operators of the M/T Cape Bruny and Gulf Oil Facility negligently caused a fire and explosion by overfilling the storage tanks with unleaded gasoline, thereby causing property damage and personal injuries in Puerto Rico. Plaintiffs' claims do not arise out of RYTTSA's alleged breach of its duty to provide a safe berth for the vessel, and thus do not support a finding of personal jurisdiction over the defendants under the first element of the First Circuit Court of Appeals' test.
Second, the contracts do not demonstrate that defendants RPSA and RYTTSA purposefully availed themselves of the privilege of conducting business in Puerto Rico; these contacts are best characterized as AOT's unilateral action rather than defendants' purposeful availment of the privilege of conducting business in Puerto Rico. See Thypin Steel Co., Inc. v. M/V Mikhail Strekalovskiy, No. Civ. A. 96-1799, 1997 WL 169437, at *4 (E.D.Pa. Apr. 3, 1997) (finding a voyage charterer was not subject to personal jurisdiction in the forum because chartering a vessel to deliver goods in the forum at the purchaser's request is the unilateral action of the purchaser). The charter party did not reference Puerto Rico at all. Neither the contract for sale of the unleaded gasoline nor the charter party were negotiated in Puerto Rico or entered into with Puerto Rico corporations. Pursuant to the terms of the sales contract, the law of New York governed the contract, and the parties had to submit all disputes to the exclusive jurisdiction of the courts of New York. The parties to the charter party were required to submit all disputes to arbitration in London, England and English law governed the charter party.
Plaintiffs' choice of precedent does also not support a finding of personal jurisdiction
Second, many of the cases that plaintiffs cite involve claims arising out of damaged or lost cargo and are brought by parties to the contracts that required delivery in the forum. Plaintiffs in this case are not parties to the contract that required RYTTSA to deliver cargo to San Juan, and this case does not arise out of RYTTSA's breach of contractual obligations to be performed in San Juan or damage to the cargo delivered to San Juan.
Plaintiffs assert that this case is similar to Kanematsu (USA), Inc. v. M/V Hua Guang, No. 95-2504, 1996 WL 764106 (E.D.La. Aug. 15, 1996), where the district court found that it had personal jurisdiction over the charterers. The Court finds Kanematsu similarly inapposite to this case. In Kanematsu, the owner of the M/V Hua Guang time chartered the vessel to a Panamanian corporation, who then subchartered it to Showa Line Ltd. Id. at *1. Showa then subchartered the vessel to Toko Line Ltd. Id. A provision of the charter party provided that the "Master will authorize Charterers or their agents to sign Bills of Lading on his behalf provided the Bills are made up in accordance with mate's and tally clerk's receipts." Id. at *1-2. Kanematsu filed suit in Louisiana, alleging that a fire caused by "the owner's design and neglect, the vessel's unseaworthiness, and the defendants' fault,
Id. at *2 (emphasis added).
The Court has studied the charter party in this case and has found no similar provision granting RYTTSA and RPSA the authority to issue bills of lading, which undermines plaintiffs' argument that defendants purposefully availed themselves of the privilege of conducting business in Puerto Rico simply by contracting to deliver cargo in San Juan. (Docket No. 137-29.) The absence of this provision, moreover, has little impact because, as previously discussed, this case does not arise out of a breach of the charter party. Therefore, plaintiffs' claims do not arise out of RPSA and RYTTSA's contacts with the forum and plaintiffs have failed to satisfy the first two elements of the First Circuit Court of Appeals test.
Third, plaintiffs rely on a case where the voyage charterer was a plaintiff, which does not necessarily show that personal jurisdiction attaches over voyage charterer defendants. Plaintiffs' reference to Francosteel is also not suitable in this case. In Francosteel, Unimetal was the party whose role most closely resembled the role that RPSA and RYTTSA allegedly played in this case. Unimetal was a plaintiff in that case, however, and, therefore, the Eleventh Circuit Court of Appeals did not analyze whether the district court could exercise personal jurisdiction over Unimetal consistent with Due Process. Deciding that the defendants had not established minimum contacts with the forum because the plaintiff had chartered the vessel to go to the forum does not necessarily lead to the conclusion that any defendant who has chartered a vessel to go to the forum has established minimum contacts. The Court must still employ a fact-specific analysis of the contacts in each case. In view of the Supreme Court's "highly realistic" analysis in Burger King, the Court holds that RPSA and RYTTSA have not established minimum contacts with Puerto Rico.
Because it finds that plaintiffs' claims do not arise out of defendants RPSA and RYTTSA's contacts with Puerto Rico, and that RPSA and RYTTSA have not purposefully availed themselves of the privilege of conducting business in Puerto Rico, the Court
Plaintiffs allege that even if defendants RPSA and RYTTSA have not established minimum contacts with Puerto Rico, the Court may still exercise personal jurisdiction pursuant to Fed.R.Civ.P. 4(k)(2). (Docket No. 139 at pp. 17-18.) This rule allows the Court to exercise personal jurisdiction over defendants who have established minimum contacts with the United States but not with any one State in particular if the claim arises from federal law. Plaintiffs allege that Fed.R.Civ.P. 4(k)(2) applies to this case because "[p]laintiffs have alleged maritime claims." (Docket No. 139 at p. 17.) The Court disagrees. "The mere fact that a ship is involved will not bring the cause within the jurisdiction of the admiralty court." Richard Bertram & Co. v. The Yacht Wanda, 447 F.2d 966, 967-68 (5th Cir.1971). Plaintiffs' causes of action against RPSA and RYTTSA are for negligence on the part of the operators of the Gulf Oil Facility, "liability for things under one's control," liability for dangerous cargo, negligent entrustment, trespass, nuisance, failure to respond to an emergency, res ipsa loquitur, and liability pursuant to article 1802 of the Civil Code. (Docket No. 1 at pp. 20, 24, 26-29.) These are not maritime claims; rather, they are claims sounding in tort, brought pursuant to state law. Accordingly, Fed.R.Civ.P. 4(k)(2) does not apply, and the Court will not grant jurisdiction over plaintiffs' claims against defendants RPSA and RYTTSA.
For the foregoing reasons, the Court