Boone v. Oy Partek Ab
| Decision Date | 04 September 1997 |
| Citation | 724 A.2d 1150 |
| Parties | Annabelle BOONE, Ronald Boyce, Gary L. Cole, Thelma Clark, John Cumens, Scott B. Derr, Claude Dupree, John Gebhart, Jerry Ginn, George Harrigan, Bernice Hayman, Mary A. Hirneisen, Morris Hitchens, James Hudson, Paul Huff, Richard L. Hunter, Jr., Mildred Jackson, Walter Janowski, Richard Jenkins, Michael Joswick, Edwin P. Mampe, Earl Marshall, Philip Mitchener, Doris Moyer, Ellis Peirson, Delores Pierce, Edith B. Rathbone, Robert Rosenberger, Wayne R. Warrington, Eugene Weber, George Wilfong, Addison Williams v. OY PARTEK AB, a Finnish Corporation, et al. |
| Court | Delaware Superior Court |
Thomas C. Crumplar, Vincent J.X. Hedrick, II, Jacobs & Crumplar, P.A., Wilmington, Delaware, for plaintiffs.
Michael Evan Jaffe, Jill R. Newman, Arent Fox Kintner Plotkin & Kahn, Washington, DC, Warren B. Burt, Michael F. Duggan, Warren B. Burt & Associates, Wilmington, DE, for defendant, Oy Partek Ab. BABIARZ, Judge.
This is the Court's opinion regarding Oy Partek Ab's motion to dismiss for lack of personal jurisdiction. Oy Partek Ab argues that Delaware's long arm statute, 10 Del.C. § 3104, and the Due Process Clause of the Constitution do not support the exercise of jurisdiction in this matter. In accordance with this opinion Oy Partek Ab's motion is DENIED.
This lawsuit arises from the plaintiffs' alleged exposure to asbestos in Delaware. All of the plaintiffs worked at either Haveg Industries in Marshallton, Delaware or Amoco/Avisun in New Castle, Delaware. The asbestos used in these plants, known as anthophyllite asbestos, was produced by defendant Oy Partek Ab (hereinafter "Partek"), a Finnish corporation.
Partek acquired its asbestos mine in Paakkila, Finland in 1959 and mined the anthophyllite asbestos until 1975 when the mine was closed for economic reasons. Partek, itself, did not sell or distribute the asbestos to Delaware. Instead, Partek had a contract with Huxley Development Corporation, a New York firm (hereinafter "Huxley"), which gave Huxley the exclusive right to sell Partek's asbestos in the United States. Huxley was an independent company over which Partek had no control. Huxley would purchase asbestos from Partek, already bagged and labeled, F.O.B. Helsinki. Huxley would then ship the asbestos to ports in New York, Baltimore or Philadelphia. Huxley was the entity that found customers for Partek's asbestos and any inquiries made to Partek from United States buyers regarding its asbestos were turned over the Huxley. Huxley distributed asbestos to approximately ten customers in the United States including Haveg and Avisun.
As a result of contracting illnesses related to asbestos, plaintiffs brought suit against several parties including Oy Partek Ab. Specifically, plaintiffs allege that Partek, the manufacturer of the asbestos, failed to properly label the asbestos by warning of its dangerous propensities. In addition, plaintiffs charge the bags that the asbestos was shipped in were defective in that they easily broke causing excess exposure to the asbestos fibers. In response, Partek has raised the defense of lack of personal jurisdiction. According to Partek, personal jurisdiction over them is barred by both Delaware's long arm statute, 10 Del.C. § 3104,1 and the Fourteenth Amendment of the United States Constitution.
Before this Court may address the merits of Partek's motion, the Court must first determine whether Partek is collaterally estopped from asserting lack of personal jurisdiction in this case. In 1985, during an unrelated asbestos law suit involving different plaintiffs, Partek filed a similar motion to dismiss for lack of personal jurisdiction. Merganthaler v. Asbestos Corp. of America, Del.Super., C.A. No. 81C-OC-104, Poppiti, J. (Aug. 30, 1985). In that case, the court determined that personal jurisdiction over Partek was proper under 10 Del.C. § 3104(c)(4) and that the exercise of such jurisdiction did not offend the due process clause. Plaintiffs argue that since neither the facts nor the law has changed since the Merganthaler decision, Partek is collaterally estopped from re-litigating the issue of personal jurisdiction.
When the use of collateral estoppel advances the claims of the plaintiff as opposed to the defendant it is known as offensive collateral estoppel. Chrysler Corp. v. New Castle County, Del.Super., 464 A.2d 75, 81 (1983). Offensive collateral estoppel is designed to protect parties from having to relitigate identical issues and thereby promote judicial economy. Id. (citing Parklane Hosiery Co. v. Shore, 439 U.S. 322, 99 S.Ct. 645, 58 L.Ed.2d 552 (1979)). However, there are several considerations that may militate against the use of this doctrine, including issues of fairness. Chrysler Corp., 464 A.2d at 82. As a result, the use offensive collateral estoppel is left to the broad discretion of the trial court. Id. In instances where there have been changes in the controlling legal principles surrounding the controversy, the court should decline to exercise this discretion. Id. at 83 (citing Montana v. U.S., 440 U.S. 147, 161, 99 S.Ct. 970, 977, 59 L.Ed.2d 210 (1979)).
The parties cite a plethora of factors that courts have considered when addressing collateral estoppel. However, it is unnecessary to delve into these because this Court determines that the use of offensive collateral estoppel is inappropriate in this instance. This is so because Partek's arguments arise from changes in the legal principles surrounding personal jurisdiction that occurred post Merganthaler. Thus, in the interest of fairness this Court finds it is necessary to address Partek's jurisdictional arguments.
In a motion to dismiss for lack of in personam jurisdiction the plaintiffs bear the burden of showing the basis for jurisdiction. Greenly v. Davis, Del.Supr., 486 A.2d 669, 670 (1984); Harmon v. Eudaily, Del.Super., 407 A.2d 232, 233 (1979). This burden is satisfied if the plaintiffs make a prima facie showing that Delaware's long-arm statute confers jurisdiction. Outokumpu Engineering Enterprises, Inc. v. Kvaerner Enviropower, Inc., Del.Super., 685 A.2d 724 (1996). In assessing whether the exercise of jurisdiction is appropriate, the duty of the Court is two fold. First, it must determine whether jurisdiction is appropriate under Delaware's long arm statute. And, second, it must evaluate whether asserting such jurisdiction would offend the Due Process Clause of the Constitution. Carlton Investments v. TLC Beatrice International Holdings, Inc., Del. Ch., C.A. No. 13950, Allen, C., 1996 WL 608492 (Oct. 16, 1996); Mumford v. Mumford, Del.Super., C.A. No. 93C-06-032, Terry, J., 1995 WL 108885 (Feb. 6, 1995). In making this determination the Court must view all factual disputes in a light most favorable to plaintiff. Outokumpu, supra.
603 F.Supp. at 327 n. 2. In this circumstance, jurisdiction is based on the relationship between the forum and the controversy. Macklowe v. Planet Hollywood, Inc, Del.Ch., C.A. No. 13689, Steele, V.C., at 7-8, 1994 WL 586838 (Oct. 13, 1994) (citation omitted).
Section 3104(c)(4), on the other hand, has been deemed a general jurisdiction provision. Outokumpu, 685 A.2d at 727-28; Mayhall v. Nempco, Inc, Del.Super., 91C-10-018, Steele, V.C., 1994 WL 465545 (July 29, 1994); Chaplake Holdings, Ltd. v. Chrysler Corp., Del.Super., C.A. No. 94C-04-164, Babiarz, J., 1995 WL 653510 (Aug. 11, 1995). General jurisdiction is at issue when the plaintiff's claims are unconnected with the nonresidents' activities. Chaplake, supra; Mayhall, supra. In this instance jurisdiction is based on the relationship between the forum and one of the parties; the forum's connection with the controversy is immaterial. Macklowe, supra (citation omitted).
Applying the specific and general jurisdiction dichotomy to the facts of this case leads Partek to conclude that Delaware's long arm statute does not confer jurisdiction over it in this case. Partek argues that the Merganthaler decision, which found that jurisdiction was appropriate under § 3104(c)(4), is flawed. This is so, according to Partek, because § 3104(c)(4) is deemed to be a "general jurisdiction" statute. General jurisdiction, Partek continues, requires that the defendant's contacts with the state be "current" in order to properly exercise personal jurisdiction. Because Partek maintained no contacts with Delaware at the time this suit was initiated, it argues that jurisdiction under § 3104(c)(4) is inappropriate. Instead, Partek suggests the Merganthaler rationale is more consistent with a "stream of commerce" theory. According to Partek, jurisdiction based on a stream of commerce is specific rather than general jurisdiction. While § 3104(c)(1) is Delaware's most analogous specific jurisdiction section, Partek argues, it requires that Partek itself have contacts with Delaware. Because Partek's...
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