In re Oil Spill by" Amoco Cadiz" off Coast of France

• Decision Date: 26 December 1979
• Docket Number: MDL No. 376,No. 78C3693.,78C3693.
• Citation: 491 F. Supp. 170
• Parties: In re OIL SPILL BY the AMOCO CADIZ OFF the COAST OF FRANCE ON MARCH 16, 1978. In the Matter of the COMPLAINT of AMOCO TRANSPORT COMPANY, Standard Oil Company (Indiana), Amoco International Oil Company, and Claude Phillips for Exoneration from or Limitation of Liability.
• Court: U.S. District Court — Northern District of Illinois

491 F. Supp. 170

In re OIL SPILL BY the AMOCO CADIZ OFF the COAST OF FRANCE ON MARCH 16, 1978 In the Matter of the COMPLAINT of AMOCO TRANSPORT COMPANY, Standard Oil Company (Indiana), Amoco International Oil Company, and Claude Phillips for Exoneration from or Limitation of Liability.

MDL No. 376, No. 78C3693.

United States District Court, N. D. Illinois, E. D.

December 26, 1979.

Frank Cicero, Jr., Samuel A. Haubold, Sydney Bosworth McDole, James A. Goold, Lawrence E. Strickling, Kirkland & Ellis, Chicago, Ill., for plaintiffs.

Edward S. Silber, Ward A. Meythaler, Robert E. Arroyo, Keck, Mahin & Cate, Chicago, Ill., Joseph Keig, Jr., Robert T. Palmer, McDermott, Will & Emery, Chicago, Ill., for defendant.

MEMORANDUM OPINION AND ORDER

McGARR, District Judge.

In each of several of the cases consolidated in this multidistrict proceeding, Astilleros Espanoles, S. A. ("Astilleros") has filed a motion to dismiss. Issues relative to the motions have been briefed by counsel in the context of the case first filed in this court, the limitation proceeding on behalf of Amoco Transport Company ("Transport"). This decision, therefore, relates only to the limitation action, though its reasoning may have broader application.

In that proceeding, the limitation plaintiff filed a third-party complaint against Astilleros, based upon the allegedly negligent manufacture of the M/V Amoco Cadiz, whose grounding and subsequent loss of cargo allegedly caused the damage upon which the parties base their claims.

In the motion to dismiss, Astilleros raises several arguments: 1) the court lacks personal jurisdiction over Astilleros; 2) the court lacks subject matter jurisdiction over the third-party complaint; and 3) the third-party complaint should be dismissed on the theory of forum non conveniens. The court will address these arguments seriatim.

I.

Because of the nature of several of the arguments raised, a brief recitation of certain pertinent facts would be helpful. Astilleros is a Spanish corporation in the business of ship construction and repair. Its principal corporate office and its five shipyards are located in Spain.

In 1970, Astilleros and Amoco Tankers Company conducted negotiations for the manufacture by the former and purchase by the latter of the Amoco Cadiz. These negotiations took place in Chicago and in Spain. In July, 1979, four representatives of Astilleros came to Chicago to meet with representatives of Amoco. A subject of the negotiations concerned "the technical plans and specifications for the ship." (Memorandum in Opposition, Wren Affidavit, ¶ 4.) On the other hand, Astilleros maintains that "no part of the design, manufacture, or installation of her steering gear took place in Illinois." (Martinez Affidavit filed July 23, 1979, ¶ 7.) Rather, the steering gear system was designed and manufactured in Spain and Germany. (Martinez Affidavit ¶ 8.) The contract for the construction of ship was executed in Chicago on July 31, 1970.

Subsequent to the execution of the contract, several representatives of Astilleros met with representatives of Amoco International Oil Company on at least two occasions in Chicago to discuss a variety of technical details for the Amoco Cadiz. (Wren Affidavit ¶¶ 5, 6.)

In May, 1974, Astilleros delivered the Amoco Cadiz to Amoco Tankers Company, which ultimately sold the tanker to Transport.

II.

Astilleros maintains that this court lacks personal jurisdiction over it. Rule 4(e), Fed.R.Civ.P., provides that service of summons on one not an inhabitant of or found within the state in which the federal district court sits may be made under the circumstances provided in and in the manner prescribed by a statute or rule of that state. In Illinois, the applicable statute is the statute popularly referred to as the "long-arm" statute, Ill.Rev.Stat. Ch. 110, §§ 16, 17 (1977).

Section 17 provides in pertinent part:

(1) Any person, whether or not a citizen or resident of this State, who in person or through an agent does any of the acts hereinafter enumerated, thereby submits such person, and, if an individual, his personal representative, to the jurisdiction of the courts of this State as to any cause of action arising from the doing of any such acts:

(a) The transaction of any business within this State;

(b) The commission of a tortious act within this State;

* * * * * *

(3) Only causes of action arising from acts enumerated herein may be asserted against a defendant in an action in which jurisdiction over him is based upon this Section. Ill.Rev.Stat. Ch. 110, § 17 (1977).

The intent of this statute is to assert jurisdiction over nonresidents to the fullest permissible extent under the due process clause. Nelson v. Miller, 11 Ill.2d 378, 143 N.E.2d 673 (1957); Poindexter v. Willis, 87 Ill.App.2d 213, 231 N.E.2d 1 (5th Dist. 1967); Hutter Northern Trust v. Door County Chamber of Commerce, 403 F.2d 481 (7th Cir. 1968). The due process clause requires as a condition precedent to the exercise of jurisdiction over the person of a nonresident that the person have such "minimum contacts" with the forum state that "maintenance of the suit does not offend `traditional notions of fair play and substantial justice.'" International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945), quoting Milliken v. Meyer, 311 U.S. 457, 463, 61 S.Ct. 339, 343, 85 L.Ed. 278 (1940); McGee v. International Life Insurance Co., 355 U.S. 220, 78 S.Ct. 199, 2 L.Ed.2d 223 (1957); Hanson v. Denckla, 357 U.S. 235, 78 S.Ct. 1228, 2 L.Ed.2d 1283 (1958).

Whether there exist such minimum contacts so as to comport with the due process clause cannot be determined by a set formula or "rule of thumb," but must be determined from the particular facts of each case. Gray v. American Radiator & Standard Sanitary Corp., 22 Ill.2d 432, 176 N.E.2d 761 (1961); Braband v. Beech Aircraft Corp., 72 Ill.2d 548, 21 Ill.Dec. 888, 382 N.E.2d 252 (1978). The test is a flexible one which emphasizes the reasonableness of subjecting a defendant to suit in a foreign jurisdiction. Shaffer v. Heitner, 433 U.S. 186, 203-04, 97 S.Ct. 2569, 2579, 53 L.Ed.2d 683 (1977); First National Bank of Chicago v. Screen Gems, Inc., 40 Ill.App.3d 427, 352 N.E.2d 285 (1st Dist. 1976); Sears Bank and Trust Co. v. Luckman, 61 Ill.App.3d 260, 18 Ill.Dec. 520, 377 N.E.2d 1156 (1st Dist. 1978). There must be some conduct by virtue of which the defendant may be said to be transacting business within the forum state, thereby invoking the benefits and protection of its laws. Hanson v. Denckla, supra 357 U.S. at 253, 78 S.Ct. at 1239. Thus, it is the nature and quality of the defendant's conduct which must be examined in determining whether in personam jurisdiction exists. International Shoe Co. v. Washington, supra 326 U.S. at 319, 66 S.Ct. at 160; Honeywell, Inc. v. Metz Apparatewerke, 509 F.2d 1137 (7th Cir. 1975).

As a further limitation on the exercise of "long-arm" jurisdiction, subsection (3) of § 17 provides that only causes of action which arise from the jurisdictional conduct may be asserted against the defendant. The purpose of this provision is to ensure that a close relationship exists between the jurisdictional activity and the cause of action which the defendant must defend. See Ill.Ann.Stat. Ch. 110 § 17 (Smith-Hurd), Historical and Practice Notes. This requirement has been interpreted as mandating only that the plaintiff's cause of action "be one which lies in the wake of the commercial activities by which the defendants submitted to the jurisdiction of Illinois courts." Koplin v. Thomas, Haab & Botts, 73 Ill.App.2d 242, 219 N.E.2d 646, 651 (1st Dist. 1966).

The parties disagree as to whether this court can find that the transaction of business in this state was the jurisdictional act by Astilleros. Astilleros contends that because Transport's claim sounds in tort, this court's inquiry must be limited to whether a tortious act was committed in Illinois. This contention is based upon its belief that "the business allegedly transacted by Astilleros in Illinois, the partial negotiation and execution of a contract, does not establish the relationship with Illinois necessary to sustain a cause of action based on tort." (Reply Memorandum of Astilleros at p. 5.)

The statute itself belies this narrow interpretation. Subsection (1) of § 17 states that a person submits himself "to the jurisdiction of the courts of this State as to any cause of action arising from the doing of any" jurisdictional act. Ill.Rev.Stat. Ch. 110, § 17(1) (1977) (emphasis added). Subsection (3) permits causes of action arising from the jurisdictional acts to be asserted against the defendant. The statute does not foreclose suit in tort upon acts which constitute the transaction of business. The tort must simply "lie in the wake of such commercial activity."

Case law fully supports this proposition. See People ex rel. Scott v. Police Hall of Fame, 60 Ill.App.3d 331, 17 Ill.Dec. 519, 376 N.E.2d 665 (1st Dist. 1978) (where the case was based on the tort of common law fraud, yet the jurisdictional act was the transaction of business); Technical Publishing Co. v. Technology Publishing Corp., 339 F.Supp. 225 (N.D.Ill.1972) (where the case was based on the tort of unfair competition but the court's analysis focused primarily upon the defendant's transactions of business in this state, although the court also found the commission of a tortious act in this state); Continental Nut Co. v. Robert L. Berner Co., 345 F.2d 395 (7th Cir. 1965) (where plaintiff sued in tort but the court analyzed the jurisdictional question in terms of both the transaction of business and the commission of a tortious act); Insull v. New York World-Telegram Corp., 172 F.Supp. 615 (N.D.Ill.1959) (where the case was for defamation but the court found both the transaction of business and the commission of a tortious act); Dalton v. Blanford, 67 Ill. App.3d 91, 23 Ill.Dec. 39, 383 N.E.2d...