Port Hamilton Refining and Transportation, LLLP v. National Industrial Services, LLC
1:24-cv-00023
D.V.I.Oct 2, 2024Background
- Port Hamilton Refining and Transportation (Port Hamilton) filed suit in the Virgin Islands Superior Court, claiming it purchased the right to repurchase millions of dollars of scaffolding assets (previously owned by Limetree Bay Refining, or LBR) as part of a bankruptcy sale authorized by the U.S. Bankruptcy Court for the Southern District of Texas.
- Port Hamilton alleges the repurchase right was fraudulently canceled by an LBR contractor, who sold the scaffolding to National Industrial Services (NIS) for $1, and that NIS is currently removing scaffolding Port Hamilton claims as its property.
- A Temporary Restraining Order (TRO) was initially granted by the Superior Court barring NIS from moving scaffolding offsite and requiring its safe storage.
- NIS removed the case to federal court, arguing it is related to federal bankruptcy proceedings and thus falls under federal jurisdiction per 28 U.S.C. § 1334.
- Multiple motions followed, including a motion to transfer venue to Texas, motions concerning the TRO, and a motion to remand back to the Superior Court.
- The case hinges on whether the dispute should be adjudicated in the Virgin Islands or Texas, where the relevant bankruptcy proceedings are centered.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Proper Venue/Transfer | Venue should remain in Virgin Islands | Case is related to TX bankruptcy; TX is proper | Transfer to S.D. Texas is warranted |
| Jurisdiction (bankruptcy-related) | Local court has jurisdiction | Federal court has jurisdiction under 1334 | Texas court best placed to decide jurisdiction |
| Extension of TRO | TRO should be extended | Opposes, pending venue determination | Denied as moot due to transfer |
| Motion to Remand | Case should return to local court | Removal was timely and proper | Denied as moot due to transfer |
Key Cases Cited
- Travelers Indem. Co. v. Bailey, 557 U.S. 137 (2009) (Bankruptcy courts are empowered to construe their own orders)
- In re Emerson Radio Corp., 52 F.3d 50 (3d Cir. 1995) (Section 1412 transfer analysis parallels 1404 factors)