Amoco Egypt Oil Co. v. Leonis Nav. Co., Inc.

Citation1 F.3d 848
Decision Date28 July 1993
Docket NumberNo. 91-35978,91-35978
PartiesAMOCO EGYPT OIL COMPANY; Egyptian General Petroleum Corporation, Plaintiffs-Appellants, v. LEONIS NAVIGATION COMPANY, INC., Defendant-Appellee.
CourtUnited States Courts of Appeals. United States Court of Appeals (9th Circuit)

Louis P. Sheinbaum, Waesche, Sheinbaum & O'Regan, New York City, for plaintiffs-appellants.

Graydon S. Staring, Lillick & Charles, San Francisco, CA, for defendant-appellee.

Appeal from the United States District Court for the Western District of Washington.

Before: BOOCHEVER, THOMPSON, and KLEINFELD, Circuit Judges.

BOOCHEVER, Circuit Judge:

This is an appeal from the district court's dismissal of an action against a foreign corporation for lack of personal jurisdiction. We affirm.

BACKGROUND

The Panay Sampaguita, a ship sailing from Singapore to France, collided with an oil platform in Egyptian waters. The ship was owned by a Panamanian corporation and bareboat chartered 1 by Leonis Navigation ("Leonis"), a Philippine corporation with its headquarters in Manila. The platform was jointly owned by Amoco Egypt Oil Company, a Delaware corporation with its principal offices in Egypt, and Egyptian General Petroleum Leonis' contacts with Washington derive from its bareboat chartering of the Panay Sampaguita and three other vessels. Leonis subchartered all four vessels to Leo Maritime Co., Ltd., which further subchartered one of the vessels, the Luzon Sampaguita, to Navix Line, Ltd. ("Navix"). At the direction of time charterer Navix, the Luzon sailed exclusively between Tacoma and Japan carrying Washington logs, making seven round trips between the date of Leonis' charter and the date the complaint was filed. The Panay and the two other vessels also called on Washington ports during the same period, but on a more random and infrequent basis.

Corporation ("EGPC"), an instrumentality of the Egyptian government charged with exploitation of its oil resources. Amoco Egypt and EGPC (together, "Amoco") filed suit against Leonis for $250,000,000 in damages in the United States District Court for the Western District of Washington.

Incident to its boat chartering, Leonis had some additional contacts with Washington. The bills of lading to which Leonis was a party were executed by Washington businesses and provided that disputes would be decided under United States law. Leonis paid the Luzon's crew with U.S. dollars that were purchased in Washington. An agent of Navix purchased supplies and services for Leonis crew members while the Luzon was in Washington. Leonis also obtained a certificate of financial responsibility for environmental claims from the United States Coast Guard in Washington, D.C., a requirement for any vessel entering United States waters.

The district court dismissed Amoco's complaint, ruling that because Leonis was not licensed to do business, had no offices or property, based no employees, sold no products, did not advertise, and had no shareholders in the State of Washington, the court could not exercise general jurisdiction over Leonis. See Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408, 411, 418-19, 104 S.Ct. 1868, 1870-71, 1874, 80 L.Ed.2d 404 (1984). Amoco timely appealed, claiming that Leonis' contacts were both purposeful and substantial enough to allow the district court to exercise jurisdiction over the claim.

STANDARD OF REVIEW

Because Amoco's factual assertions are essentially uncontroverted, we review the district court's ruling on personal jurisdiction de novo. Shute v. Carnival Cruise Lines, 897 F.2d 377, 380 (9th Cir.1990), rev'd on other grounds, 499 U.S. 585, 111 S.Ct. 1522, 113 L.Ed.2d 622 (1991). Where, as here, the district court bases its jurisdictional ruling on affidavits and discovery materials without holding an evidentiary hearing, dismissal is appropriate only if the plaintiff has failed to make a prima facie showing of personal jurisdiction. Fields v. Sedgwick Associated Risks, Ltd., 796 F.2d 299, 301 (9th Cir.1986); Data Disc, Inc. v. Systems Tech. Assocs., Inc., 557 F.2d 1280, 1285 (9th Cir.1977).

DISCUSSION

To establish jurisdiction, Amoco must show that Washington's jurisdictional statute confers jurisdiction over Leonis and that the exercise of jurisdiction accords with federal constitutional principles of due process. Shute, 897 F.2d at 380; Haisten v. Grass Valley Med. Reimbursement Fund, Ltd., 784 F.2d 1392, 1396 (9th Cir.1986). Because Amoco's claim against Leonis did not arise out of, and is unrelated to, Leonis' contacts with Washington, Amoco concedes that the district court may only hear the claim if Washington can exercise "general jurisdiction" over Leonis. See Helicopteros, 466 U.S. at 414 n. 9, 104 S.Ct. at 1872 n. 9.

A. Washington's Jurisdictional Statute

The district court dismissed concerns with Washington law by stating that Washington's long-arm statute, Wash.Rev.Code Sec. 4.28.185, is coextensive with constitutional standards. See Shute, 897 F.2d at 380. Section 4.28.185, however, deals only with specific jurisdiction. General jurisdiction is authorized by Sec. 4.28.080(10), which provides for service of summons on a foreign corporation "doing business" in Washington. Washington courts have interpreted this section as conferring general jurisdiction over nonresident defendants who conduct "substantial" and "continuous" business in the state "of such a character as to give rise to a legal

                obligation."  Crose v. Volkswagenwerk Aktiengesellschaft, 88 Wash.2d 50, 558 P.2d 764, 766-67 (1977) (en banc);  see Hein v. Taco Bell, Inc., 60 Wash.App. 325, 803 P.2d 329, 331 (1991).  Although the Washington Supreme Court has never explicitly so stated, courts of appeal have consistently held that the "doing business" and due process inquiries are the same.  See MBM Fisheries, Inc. v. Bollinger Mach. Shop & Shipyard, Inc., 60 Wash.App. 414, 804 P.2d 627, 630-31 (1991);  Hein, 803 P.2d at 332.   Thus " 'the statutory and constitutional standards merge into a single due process test,' " Shute, 897 F.2d at 380 (quoting Pedersen Fisheries, Inc. v. Patti Indus., 563 F.Supp. 72, 74 (W.D.Wash.1983)), and we turn to the question of whether general jurisdiction over Leonis comports with due process requirements
                
B. Due Process

"Due process requirements are satisfied when in personam jurisdiction is asserted over a nonresident corporate defendant that has 'certain minimum contacts with [the forum] such that the maintenance of the suit does not offend "traditional notions of fair play and substantial justice." ' " Helicopteros, 466 U.S. at 414, 104 S.Ct. at 1872 (quoting International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945)). The Supreme Court has bifurcated this due process determination into two inquiries, requiring, first, that the defendant have the requisite contacts with the forum state to render it subject to the forum's jurisdiction, and second, that the assertion of jurisdiction be reasonable. See Asahi Metal Indus. Co. v. Superior Court, 480 U.S. 102, 107 S.Ct. 1026, 94 L.Ed.2d 92 (1987) (majority agreeing on dismissal because assertion of jurisdiction was unreasonable, but disagreeing on whether minimum contacts existed). 2 Because we conclude that the exercise of personal jurisdiction over Leonis would be unreasonable, we need not address the issue of contacts. 3 See FDIC v. British-American Ins. Co., Ltd., 828 F.2d 1439, 1442 (9th Cir.1987); Fields, 796 F.2d at 302.

We have listed the following factors to be balanced in determining reasonableness in a specific jurisdiction context:

the extent of purposeful interjection, the burden on the defendant to defend the suit in the chosen forum, the extent of conflict with the sovereignty of the defendant's state, the forum state's interest in the dispute; the most efficient forum for judicial resolution of the dispute; the importance of the chosen forum to the plaintiff's interest in convenient and effective relief; and the existence of an alternative forum.

Shute, 897 F.2d at 386; see Insurance Co. of N. Am. v. Marina Salina Cruz, 649 F.2d 1266, 1270 (9th Cir.1981). We apply these same factors to the present general jurisdiction analysis. The burden is on the defendant to " 'present a compelling case' that the

exercise of jurisdiction would, in fact, be unreasonable." Shute, 897 F.2d at 386 (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 477, 105 S.Ct. 2174, 2185, 85 L.Ed.2d 528 (1985)).

1. Extent of Purposeful Interjection

This factor parallels the question of minimum contacts, which we have declined to decide. Sinatra v. National Enquirer, Inc., 854 F.2d 1191, 1199 (9th Cir.1988). We similarly put it aside here because the remaining six factors present a compelling case for unreasonableness.

2. Burden on Defendant

"The unique burdens placed upon one who must defend oneself in a foreign legal system should have significant weight in assessing the reasonableness of stretching the long arm of personal jurisdiction over national borders." Asahi, 480 U.S. at 114, 107 S.Ct. at 1033. The burden on Leonis of defending the suit in Washington is considerable. Leonis' base of operations is in Manila. The company presently has no connections with Washington, nor does it have an agent or office anywhere else in the United States. See Roth v. Garcia Marquez, 942 F.2d 617, 623 (9th Cir.1991). Potential witnesses and evidence are not located in Washington. Although Amoco suggests that Egypt would be an equally burdensome forum for Leonis, the burden on the defendant is not a forum non conveniens question, but a function of due process requirements.

3. Conflict with Sovereignty of Defendant's State

Where, as here, the defendant is from a foreign nation rather than another state, the sovereignty barrier is high and undermines the reasonableness of personal jurisdiction. Pacific Atl. Trading Co. v. M/V Main Express, 758 F.2d 1325, 1330 (9th Cir.19...

To continue reading

Request your trial
100 cases
  • Whatsapp Inc. v. NSO Grp. Techs. Ltd.
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Northern District of California
    • July 16, 2020
    ...Co., where the court stated that the plaintiff "Amoco has the burden of proving the unavailability of an alternative forum." 1 F.3d 848, 853 (9th Cir. 1993) (citing Pac. Atl. Trading Co. v. M/V Main Exp., 758 F.2d 1325, 1331 (9th Cir. 1985) ). Both Sinatra, 854 F.2d at 1201, and Harris Ruts......
  • In re Packaged Seafood Prods. Antitrust Litig., Case No.: 15-MD-2670 JLS (MDD)
    • United States
    • United States District Courts. 9th Circuit. United States District Court (Southern District of California)
    • September 5, 2018
    ...whether general or specific, over a defendant, such assertion of jurisdiction must be "reasonable." Amoco Egypt Oil Co. v. Leonis Navigation Co. , 1 F.3d 848, 851 (9th Cir. 1993). The defendant has the burden of making a "compelling case" that the exercise of jurisdiction is not reasonable.......
  • Gator.Com Corp. v. L.L. Bean, Inc., 02-15035.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • February 15, 2005
    ...See, e.g., Theo H. Davies & Co., Ltd. v. Republic of the Marshall Islands, 174 F.3d 969 (9th Cir.1998); Amoco Egypt Oil Co. v. Leonis Nav. Co., Inc., 1 F.3d 848 (9th Cir.1993); Shute v. Carnival Cruise Lines, Inc., 897 F.2d 377 (9th Cir.1990) overruled on other grounds by Carnival Cruise Li......
  • Daimler AG v. Bauman
    • United States
    • United States Supreme Court
    • January 14, 2014
    ...213–214 (C.A.4 2002) ; Trierweiler v. Croxton & Trench Holding Corp., 90 F.3d 1523, 1533 (C.A.10 1996) ; Amoco Egypt Oil Co. v. Leonis Navigation Co., 1 F.3d 848, 851, n. 2 (C.A.9 1993) ; Donatelli v. National Hockey League, 893 F.2d 459, 465 (C.A.1 1990) ; Bearry v. Beech Aircraft Corp., 8......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT