Hassanin Aly v. Hanzada Import & Export, etc.
2017 U.S. App. LEXIS 5183
| 8th Cir. | 2017Background
- Aly (dual Egyptian–U.S. citizen domiciled in Ohio) worked to secure U.S. beef suppliers for Hanzada, an Egyptian importer/exporter owned by Shaheen.
- In 2006 Shaheen and Aly met at National Beef’s Missouri headquarters; Aly alleges an oral agreement that Hanzada would pay him $10 per metric ton if he secured National Beef as a supplier.
- National Beef began selling to Hanzada in 2008; Hanzada refused to pay under the alleged oral agreement.
- Aly sued Hanzada in Missouri in 2012 for breach of contract; the district court denied Hanzada’s motions to dismiss for lack of subject-matter and personal jurisdiction and denied summary judgment based on Missouri’s statute of frauds.
- A jury awarded Aly $1,591,286.60. Hanzada appealed challenging diversity jurisdiction, personal jurisdiction, and the statute of frauds.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Subject-matter jurisdiction (diversity) | Aly: He is a U.S. citizen domiciled in Ohio; diversity exists against foreign defendant. | Hanzada: Aly’s Egyptian citizenship destroys diversity. | Court: Diversity exists under 28 U.S.C. § 1332(a)(2); Aly’s U.S. citizenship and Ohio domicile control (Sadat rule alternative). |
| Personal jurisdiction | Aly: Hanzada (through Shaheen) formed the contract in Missouri and repeatedly met there; minimum contacts exist. | Hanzada: Contacts with Missouri were minimal and insufficient. | Court: Personal jurisdiction proper—contacts with Missouri were purposeful and related to the contract; three of five Due Process factors (nature, quantity, and relation of contacts) favor jurisdiction. |
| Missouri statute of frauds | Aly: He fully performed; statute of frauds inapplicable. Alternatively, contract could be performed within one year. | Hanzada: Oral, long-term agreement falls within statute of frauds and must be in writing. | Court: Statute of frauds inapplicable—Aly fully performed; even absent full performance, contract was possibly performable within one year under Missouri law. |
Key Cases Cited
- Newman-Green, Inc. v. Alfonzo-Larrain, 490 U.S. 826 (domicile controls state citizenship for diversity)
- Wachovia Bank v. Schmidt, 546 U.S. 303 (individual with multiple residences is citizen of single domicile for jurisdiction)
- Sadat v. Mertes, 615 F.2d 1176 (dual nationals treated as U.S. citizens only for diversity purposes)
- Walden v. Fiore, 134 S. Ct. 1115 (the defendant’s forum contacts must be the defendant’s own; physical entry is a relevant contact)
- Koman v. Morrissey, 517 S.W.2d 929 (statute of frauds does not bar suit where one party has fully performed)
- Vess Beverages, Inc. v. Paddington Corp., 886 F.2d 208 (contract of indefinite term may not fall within statute of frauds under Missouri law)