China Company, Other Defendants Escape (For Now) Libertad Act Lawsuit Due To Court Finding Lack Of Jurisdiction. "...conspiracy claim, even if viable, does not provide a basis to establish..."

NORTH AMERICAN SUGAR INDUSTRIES INC., V. XINJIANG GOLDWIND SCIENCE & TECHNOLOGY CO., LTD., GOLDWIND INTERNATIONAL HOLDINGS (HK) LTD., DSV AIR & SEA INC., BBC CHARTERING USA, LLC, and BBC CHARTERING SINGAPORE PTE LTD., [1:20-cv-22471; Southern Florida District].

Gibson, Dunn & Crutcher (plaintiff)
Mandel & Mandel (plaintiff)
Morgan, Lewis & Bochius (defendant)
Akerman (defendant)
Hogan Lovells LLP (defendant)

Link To Report And Recommendation (8/30/22)
Link To Motion Of BBC Chartering Singapore Pte Ltd. To Dismiss The First Amended Complaint For Lack Of Personal Jurisdiction And Memorandum Of Law (12/6/21)
Link To Defendant DSV Air & Sea, Inc.’s Motion To Dismiss Plaintiff’s Amended Complaint For Lack Of Personal Jurisdiction And Memorandum Of Law (Including Exhibits A & B) (12/6/21)
Link To Libertad Act Lawsuit Filing Statistics

Excerpts From Report And Recommendation:

Plaintiff also alleges that the Court has specific personal jurisdiction over all Defendants pursuant to Fla. Stat. § 48.193(1)(a)(2). Id. at 9. As to the Goldwind Defendants, Plaintiff argues that they affirmatively approved the Jade’s and Moonstone’s stops in Miami; and actively participated in acquiring insurance and other documentation to facilitate the ships’ compliance with United States regulatory requirements. Id. at 10–11, 22–24. As to DSV US, Plaintiff argues that: DSV US “analyzed, agreed to, and facilitated the Miami stops”, as evidenced by its Miamibased employee, Carol Scheid’s (“Scheid”), participation in email correspondence regarding matters of customs compliance and Witkowski’s regulatory analysis of the Miami stops; and DSV US prepared, filed, and furnished customs forms for the ships bearing its Miami office’s address. Id. at 11–15. As to BBC Singapore, Plaintiff argues that it participated in securing legal approval of documentation for the ships, corresponded with Miami-based port agents about the Jade’s stop in Miami, and concealed the Moonstone’s stop in Cuba from McDermott and United States authorities. Id. at 15–19. As to BBC USA, Plaintiff argues that its employees reviewed and approved customs and port documentation for the ships’ stops in Miami; and engaged in discussions about logistics at the Property and concealment of the Moonstone’s stop in Cuba. Id. at 19–22. In sum, Plaintiff argues that, in undertaking these activities, Defendants committed tortious acts within Florida, thereby subjecting themselves to specific personal jurisdiction in this forum under the state’s long-arm statute’s tortious act prong. Alternatively, Plaintiff argues that BBC Singapore’s and Goldwind’s general contacts with the United States subject them to personal jurisdiction in the United States under Rule 4(k)(2); and that jurisdiction over all Defendants is otherwise proper via its conspiracy claim. Id. at 9, 18, 24. Conversely, Defendants contend that this Court lacks personal jurisdiction over them because they are non-resident defendants that did not take any actions in this forum with respect to the Jade and Moonstone shipments, including their stops in Miami. BBC USA argues that it “had no involvement at all” in the Jade voyage and “no involvement in the cargo on the Moonstone [that was] delivered to Cuba”. See BBC USA’s Motion to Dismiss [D.E. 197 at 6]. BBC Singapore argues that it “merely monitored the voyages after they left [China]” so that it could keep DSV Denmark apprised of their progress. See BBC Singapore’s Motion to Dismiss [D.E. 198 at 6–7]. DSV US argues that it was “not a carrier for or a party to either of the two shipments at issue” and “did not take any actions in Florida or direct any activity at Florida that was related in any way to Plaintiff’s claims”. See DSV US’ Motion to Dismiss [D.E. 201 at 7]. Finally, the Goldwind Defendants argue that they have no presence or contact with Florida, had no control over the decision to have the ships stop in the Port of Miami, and were otherwise uninvolved in the logistics of the Jade and Moonstone voyages. See Goldwind’s Post-Hearing Brief [D.E. 264 at 3–8].

Therefore, Plaintiff has failed to establish that this Court has personal jurisdiction over DSV US based on the Florida long-arm statute’s business activity prong.

Alternatively, Plaintiff argues that it need not have suffered an injury in Florida because Defendants committed a substantial aspect of the alleged tort in Florida, “meaning that those activities were essential to the success of the tort.” See Response [D.E. 218 at 82] (citing Williams Elec., 854 F.2d at 394). However, the record does not support a finding that “a substantial aspect of [the] Helms-Burton Act violation” occurred in Florida. Id. at 83. Rather, the record reflects that neither the Goldwind Defendants nor BBC USA engaged in any Florida-based activities with respect to the alleged trafficking violation, much less any that were “essential to the success of the tort”. Cf. Plaintiff’s Post-Hearing Brief [D.E. 260 at 9–11, 19–24]. As for BBC Singapore, its few communications with Port of Miami agents about the Jade’s stop in Miami do not amount to a “substantial aspect” of the alleged trafficking violation; nor can it be said that these communications were “essential to the success of” the alleged trafficking in Cuba. Id. at 15–19. With respect to DSV US, the record likewise establishes that Scheid’s sparse email activity from her office in Miami, coupled with DSV US’ instruction to furnish certain customs forms in Miami upon the ships’ arrival, do not amount to a “substantial aspect” of the alleged trafficking violation or constitute “activities that were essential to” its success. Id. at 11–15.

Accordingly, Plaintiff’s conspiracy claim, even if viable, does not provide a basis to establish this Court’s personal jurisdiction over Defendants.