46 F.4th 127
2d Cir.2022Background
- V&A bought a 50% interest in Wade Guyton’s painting (the Guyton) in 2013; Inigo Philbrick (through entities he controlled) represented the seller.
- In June 2017 Philbrick-controlled IPL entered a $6M agreement with Guzzini to transfer three artworks (including the Guyton and a Rudolf Stingel painting); the agreement is styled as a sale but V&A alleges it functioned as a loan with artworks as collateral.
- In 2019 Guzzini sued in rem in New York state court to quiet title to the Stingel (located in New York); V&A’s motion to intervene was denied and the state court suggested V&A bring a separate action about the Guyton.
- V&A then sued Guzzini for conversion over the Guyton (located in Switzerland); Guzzini removed to federal court and moved to dismiss for lack of personal jurisdiction.
- The district court held it lacked personal jurisdiction because Guzzini’s in rem suit over the Stingel did not constitute consent to litigate a separate dispute over the Guyton in New York; the Second Circuit affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Guzzini consented to NY personal jurisdiction by filing the in rem Stingel action | Filing the Stingel action under the June 2017 Agreement waived jurisdictional objections for related litigation, including the Guyton dispute | Consent by suing in one case is limited to that action; the Stingel in rem case concerns a different res and different parties | No. Filing the Stingel in rem action did not waive objections to jurisdiction for this separate suit over the Guyton |
| Whether the Interpole rule (waiver extends to separate suits arising from same transaction) applies here | Interpole supports extending consent because both works were covered by the June 2017 Agreement | Interpole is inapplicable: the in rem action concerned a different artwork located in NY and did not involve V&A; forum choice driven by res location | Court declined to adopt Interpole for this case and found it inapplicable in any event |
| Whether the conversion claim depends on resolution of the June 2017 Agreement such that jurisdiction in the Stingel Action would cover it | Title under the June 2017 Agreement is the threshold issue common to both cases | Conversion focuses on V&A’s possessory interest and Guzzini’s dominion over the Guyton, issues that survive a separate disposition of the Stingel | The claims are distinct; a ruling on the Stingel’s ownership would not resolve V&A’s conversion claim over the Guyton |
Key Cases Cited
- Ins. Corp. of Ireland, Ltd. v. Compagnie des Bauxites de Guinee, 456 U.S. 694 (1982) (discusses consent and waiver of personal jurisdiction)
- Klinghoffer v. S.N.C. Achille Lauro, 937 F.2d 44 (2d Cir. 1991) (consent in one suit generally does not extend to unrelated suits)
- Leman v. Krentler-Arnold Hinge Last Co., 284 U.S. 448 (1932) (plaintiff’s suit submits it to jurisdiction for counterclaims)
- Adam v. Saenger, 303 U.S. 59 (1938) (plaintiff’s voluntary suit can subject it to jurisdiction for purposes of justice to defendant)
- Gen. Contracting & Trading Co. v. Interpole, Inc., 940 F.2d 20 (1st Cir. 1991) (extends waiver to separate suits arising from same transaction)
- Thyroff v. Nationwide Mut. Ins. Co., 460 F.3d 400 (2d Cir. 2006) (sets out New York conversion elements)
- Charles Schwab Corp. v. Bank of Am. Corp., 883 F.3d 68 (2d Cir. 2018) (standard of review for personal jurisdiction dismissals)
