LEAVITT v. SKY WARRIOR BAHAMAS LIMITED
1:24-cv-00886
| D.N.J. | May 5, 2025Background
- Abraham Leavitt, a self-described skilled gambler and card counter, filed suit in New Jersey state court after being removed from the Baha Mar Resort casino in the Bahamas, owned by Chow Tai Fook Enterprises Ltd. (CTFEL) and operated by Sky Warrior Bahamas Limited.
- The case was removed to federal court in New Jersey by the defendants.
- The court previously dismissed Leavitt's case for improper service, finding that Leavitt did not validly serve defendants, as service was rejected and Leavitt concealed this from the state court when obtaining a default judgment.
- At a hearing, Leavitt's account of how he received rejection letters changed multiple times, and it became clear he proceeded despite knowing service was deficient.
- The court also questioned whether it could exercise personal jurisdiction over the Bahamas-based defendants, especially in light of the credit agreement's terms.
- The order ends with dismissal without prejudice and a requirement for Leavitt to show cause why he should not be sanctioned for his conduct.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper service of process | Leavitt claimed he properly served defendants via registered agent | Defendants argued service was rejected by agent and not effected | Dismissed: Service was improper |
| Personal jurisdiction | Leavitt alleged defendants consented via a credit agreement and NJ connections | Defendants denied consent and contacts with NJ sufficient for PJ | Dismissed: Personal jurisdiction lacking |
| Good faith/litigation conduct | Leavitt maintained he acted properly in seeking default judgment | Defendants alleged Leavitt concealed service rejections, acted in bad faith | Order to show cause re: sanctions |
| Forum non conveniens | Not developed | Defendants requested dismissal on FNC grounds | Dismissed: Also without prejudice on FNC |
Key Cases Cited
- Shaffer v. Heitner, 433 U.S. 186 (relationship among defendant, forum, and litigation key to personal jurisdiction)
- Chambers v. NASCO, Inc., 501 U.S. 32 (federal courts' inherent authority to sanction bad faith conduct)
- Republic of Philippines v. Westinghouse Elec. Corp., 43 F.3d 65 (sanctions for abuse of judicial process)
- Sinochem Int'l Co. v. Malaysia Int'l Shipping Corp., 549 U.S. 422 (forum non conveniens as grounds for dismissal)