NANKO SHIPPING, USA, PARENT COMPANY OF NANKO SHIPPING GUINEA, ET AL., APPELLANTS v. ALCOA, INC. AND ALCOA WORLD ALUMINA, LLC, APPELLEES
No. 15-7070
United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT
Argued September 23, 2016 Decided March 10, 2017
Appeal from the United States District Court for the District of Columbia (No. 1:14-cv-01301)
Thomas E. Birsic argued the cause for appellees. With him on the brief were Matthew J. Louik and David T. Case.
Before: ROGERS, BROWN and PILLARD, Circuit Judges.
Opinion for the Court filed by Circuit Judge PILLARD.
Dissenting opinion filed by Circuit Judge BROWN.
The district court granted Alcoa‘s motion to dismiss the complaint under
I.
On review of the order granting the motion to dismiss, we assume—as did the district court—the truth of the facts alleged in Nanko‘s proposed Second Amended Complaint. According to that complaint, in 1963 the Republic of Guinea and the Harvey Aluminum Company of Delaware (now Halco) signed an agreement establishing the Compagnie des Bauxites de
Under Article 9 of the CBG Agreement, Guinea reserved the right to require that up to 50 per cent of the Republic‘s bauxite be shipped on vessels flying the Guinean flag or chartered by the Guinean government, provided that the freight rates those Guinean shippers offered are no higher than, and the services equal to, those otherwise available on the international shipping market. That clause presumably was designed to ensure that some of the business generated by the bauxite mines would go to qualified Guinean shipping firms and thereby benefit the Guinean economy.
Nanko alleges that, in August 2011, Guinea entered into a Technical Assistance Agreement (TAA) with Nanko. That document is neither quoted in nor attached to the pleadings, nor is it otherwise in the record. Pursuant to the TAA, Nanko alleges, it “assumed Guinea‘s rights” under Article 9 of the CBG Agreement “to manage, control and ship” up to 50 per cent of Guinean-produced bauxite. Prop. Second Am. Compl. at 2.
Later in 2011, CBG‘s Board of Directors allegedly invited its constituent corporations, including Halco and Alcoa, to contact Nanko to make shipping arrangements. Nevertheless,
In this action, Nanko initially brought two claims: one for breach of the CBG Agreement, asserting that it is a third-party beneficiary thereof, and another for racial discrimination in violation of
The district court dismissed the case under
The district court alternatively noted that if Guinea could be joined the case “would have to be dismissed so that the parties could proceed to mandatory arbitration.” Nanko I, 107 F. Supp. 3d at 182 n.7. Because it is not clear on the present record that Alcoa (as distinct from Halco and CBG) bound itself to the relevant arbitration agreement, and because the parties have not briefed the issue, we do not here address that ground.
Nanko timely appealed and simultaneously moved the district court to reconsider its dismissal of the discrimination claim. The district court denied the reconsideration motion in an order that postdates Nanko‘s notice of appeal. See Nanko Shipping, USA v. Alcoa, Inc., 118 F. Supp. 3d 372 (D.D.C. 2015) (”Nanko II“). In that order, the district court said that it had dismissed the discrimination claim for failure to state a claim, though its original dismissal rested exclusively on
II.
We review the district court‘s application of
The district court determined that Guinea is a potential party required to be joined if feasible. Guinea is a necessary party under
The district court further held that Guinea could not be joined involuntarily on the ground that it is entitled to sovereign immunity under the Foreign Sovereign Immunities Act (FSIA),
Nanko and Alcoa sparsely briefed the immunity issue before the district court. That court‘s immunity holding rested exclusively on Nanko‘s failure to “contest” Alcoa‘s bare assertion that the court lacked jurisdiction over Guinea. See Nanko I, 107 F. Supp. 3d at 181 n.6. But Nanko did contest the point. See Opp‘n to Mot. to Dismiss at 24 (characterizing as “a red herring and meritless” Alcoa‘s argument that “because Guinea is a foreign sovereign this Court lacks jurisdiction“). And Nanko‘s motion for reconsideration argued that the court was “not in [a] position to resolve,” absent discovery, what Nanko identified as the “fact question” whether Guinea “enjoys
Before this Court, Alcoa argues in a footnote that Nanko “has utterly failed to allege any facts” establishing a FSIA exception, thus failing to overcome the “presumption of immunity.” Appellee Br. at 35 n.54 (citing Bell Helicopter Textron, Inc. v. Islamic Republic of Iran, 734 F.3d 1175, 1183 (D.C. Cir. 2013)). That is not necessarily so. Most notably, Nanko alleges that the CBG Board—of which Guinea is a member—hosted a 2011 meeting in New York City at which Guinea “announced its authorization and contract award to [Nanko] regarding shipment of bauxite.” Prop. Second Am. Compl. ¶ 22. That alleged authorization appears to be central to Nanko‘s theory of the case. For instance, it is that authorization on which Nanko rests its claim that defendants knew of but disregarded their contractual responsibility to deal with Nanko to ship bauxite out of Guinea. The facts as Nanko alleges them suggest that Guinea‘s participation in the shipping of bauxite falls within the FSIA‘s commercial-activity exception.
At this preliminary stage, based only on the pleadings, we see no adequate basis for the district court‘s dismissal of the complaint under
III.
Our dissenting colleague would hold that the complaint failed to state a section 1981 claim sufficient to withstand a motion to dismiss under
Section 1981 protects the right “to make and enforce contracts” free from racial discrimination,
We do not reach any of the other grounds, such as the applicability of a mandatory arbitration clause in the CBG Agreement, on which Alcoa moved to dismiss. The absence of a putative required party is not a jurisdictional question. Ilan-Gat Eng‘rs, 659 F.2d at 240. The district court accordingly may decide to address those other grounds on remand before or in tandem with further consideration of the
* * *
For the foregoing reasons, we reverse the district court‘s dismissal of the complaint and remand for further proceedings.
So ordered.
NANKO SHIPPING, USA, PARENT COMPANY OF NANKO SHIPPING GUINEA, ET AL., APPELLANTS v. ALCOA, INC. AND ALCOA WORLD ALUMINA, LLC, APPELLEES
No. 15-7070
United States Court of Appeals FOR THE DISTRICT OF COLUMBIA CIRCUIT
I.
The district court specifically noted, “Plaintiffs do not contest the assertion that Guinea is protected from suit by sovereign immunity.” Nanko Shipping, 107 F. Supp. 3d at 181 n.6 (citing Nanko‘s opposition to Alcoa‘s motion to dismiss). We, therefore, review Nanko‘s filings in the district court to determine whether the court abused its discretion in finding the argument forfeited. See GSS Grp. Ltd. v. Nat‘l Port Auth., 680 F.3d 805, 812 (D.C. Cir. 2012). It did not.
Nanko‘s brief opposing the motion to dismiss contains two relevant statements:
- “Defendants claim that Guinea is an indispensable party and further allege that because Guinea is a foreign sovereign this Court lacks jurisdiction under the Foreign Soverign [sic] Immunities Act, unless a specified exception applies. This argument is a red herring and meritless. Contrary to Defendants’ contention, there is no basis for Guinea involvement given the Technical Assistance Agreement . . . ,” and
- “[w]hile Defendants may be correct in its [sic] view that this Court lacks jurisdiction over Guinea, Defendants miss two critical facts; as plead, the CBG and the TAA are valid legal contracts.”
The majority points to Nanko‘s Motion for Reconsideration filed before the district court, Op. 8–9, which does appear to discuss the FSIA. Nonetheless, “[Federal] Rule [of Civil Procedure] 59(e) motions are aimed at reconsideration, not initial consideration.” GSS Grp., 680 F.3d at 812. Accordingly, a “Rule 59(e) motion may not be used to . . . raise arguments or present evidence that could have been raised prior to the entry of judgment.” 11 CHARLES ALAN WRIGHT ET AL., FEDERAL PRACTICE & PROCEDURE § 2810.1, at 163–64 (3d ed. 2012). Since Nanko could have raised its FSIA argument earlier, but chose not to do so, the argument is forfeited. See District of Columbia v. Doe, 611 F.3d 888, 896 (D.C. Cir. 2010).
II.
The district court also properly dismissed Nanko‘s claims pursuant to
I agree with the Court‘s starting premise: “Nanko alleges that Alcoa, aware of Diané‘s race, treated the company he
But, as the majority also notes, a Section 1981 claim cannot “reach[] more than purposeful discrimination.” Gen. Bldg. Contractors Ass‘n v. Pennsylvania, 458 U.S. 375, 388, 391 (1982) (emphasis added). Accordingly, to plead a prima facie case, a plaintiff must show the defendant intended to discriminate against the plaintiff on the basis of race. See Williams v. Lindenwood Univ., 288 F.3d 349, 355 (8th Cir. 2002); Mian v. Donaldson, Lufkin & Jenrette Secs. Corp., 7 F.3d 1085, 1087 (2d Cir. 1993).
Nanko has failed to plead sufficient facts to carry that burden here. In fact, no facts presented in the complaint suggest Alcoa intentionally discriminated against Nanko on account of race. Rather, Nanko states it is an African-American owned company, see Prop. Second Am. Compl. ¶¶ 78–79, alleges Alcoa had done business with white-owned Klaveness, id. ¶¶ 17, 80, and asserts “[Alcoa] imposed certain unreasonable requirements, offered multiple limited shipping opportunities in 2012 after telling Nanko that all such bid opportunities had been contracted out and expressly stated that their decision making process would be arbitrary and subjective,” id. ¶ 82. Further, Nanko claims it used the “same exact shipping companies” as Alcoa and also “attained equal or lower shipping prices and similar assurances regarding shipping security.” Id. ¶ 87. Indeed, all of Nanko‘s factual allegations are consistent with an arbitrary, but not racially discriminatory, decision-making process. Everyone can be characterized by race, and many contracting parties are “harsh, unjust, and rude,” but a failure to do business with a
The inadequacy of Nanko‘s pleading is hardly surprising. Intentional discrimination may be relatively easy to plead via comparator evidence—as Nanko apparently attempts to do—in the employment discrimination context, where a plaintiff is keenly aware of his coworkers’ performance and familiar with his employers’ policies. See Brown v. Sessoms, 774 F.3d 1016, 1023 (D.C. Cir. 2014) (pleading the underlying facts necessary to rely on comparator evidence in an employment case). In the commercial context, however, it is often very difficult to plead facts raising an inference of racially discriminatory intent. See Denny v. Elizabeth Arden Salons, Inc., 456 F.3d 427, 429–31, 435 (4th Cir. 2006) (finding a viable
Accordingly, I would affirm the district court‘s dismissal of Nanko‘s claims pursuant to
