Nanko Shipping, USA v. Alcoa, Inc.Nanko Shipping, USA v. Alcoa, Inc.
Lead Opinion
Dissenting opinion filed by Circuit Judge BROWN.
The Republic of Guinea is one of the world’s principal sources of bauxite, an aluminum ore. After Guinea declared inde-' pendence from France in the middle of the last century, it sought to ensure that the exploitation of its natural resources would not only provide business for multinational corporations based overseas that invested in the ore’s extraction, but would also benefit the Guinean economy. Plaintiff Nanko Shipping Guiñeé (Nanko) claims to be the beneficiary of one of Guinea’s legal undertakings to that end, and contends in this ease that defendants (collectively, Alcoa) violated corresponding obligations. Other named plaintiffs' — Nanko’s owners, Nanko Shipping USA and Mori Diané, an American of Guinean descent — are not before us, having not appealed the district court’s order dismissing them for lack of standing.
The district cоurt 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 estab-. lishing the Compagnie des Bauxites de Guinde (CBG) for the purpose of developing Guinea’s rich bauxite mines.
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. Sеcond 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, Halco and Alcoa refused to deal with Nanko, offering “only a few limited micro-tender shipping opportunities” that were “substantially less in value and volume than the shipping rights and contracts” to which Nanko claims it is entitled undеr the TAA. Prop. Second Am. Compl. ¶¶ 26, 46. Halco and Alcoa allegedly added insult to injury, posing questions about Nanko’s “background and capacity” that were not asked of other shipping companies and then refusing to credit Nanko’s responses. Id. at ¶¶ 42, 65. Guinea, for its part, “repeatedly urged” Halco and Alcoa to hire Nanko to ship their bauxite. Id. at ¶ 76.
In this action, Nanko initially brought two claims: one for breach of the CBG Agreеment, 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 notеd that if Guinea could be joined the case “would have to be dismissed so that the parties could proceed to mandatory arbitration.” Nanko I,
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.,
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,
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,
At this prеliminary 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
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, Ltd.,
[[Image here]]
For the foregoing reasons, we reverse . the district court’s dismissal of the complaint and remand for further proceedings.
So ordered.
Notes
. Nanko calls this agreement a "convention,” see Appellant's Br. 2, but that term usually denotes an accord between states. The cover page of the agreement describes it as an "Agreement Between the Republic of Guinea and Harvey Aluminum Co. of Delaware.”
Dissenting Opinion
dissenting:
The Court finds the question whether the Foreign Sovereign Immunities Act (“FSIA”) applies — and therefore whether jurisdictional discovery is necessary — was properly presented to the district court. Op. 465-66. Its opinion further holds the district court erred in deciding Nanko failed to state a claim upon which relief can be granted for violations of
The district court specifically noted, “Plaintiffs do not contest the assertion that Guinea is protected from suit by sovereign immunity.” Nanko Shipping, USA v. Alcoa, Inc.,
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.”
Nanko Opp’n to Alcoa Mot. to Dismiss at 24-25, Nanko Shipping, USA v. Alcoa, Inc., No. 14-cv-1301,
The majority points to Nanko’s Motion for Reconsideration filed before the district court, Oр. 465-66, 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.,
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 owns and operates less favorably than similarly situated white-owned companies.” Op. 467. Indеed, Nanko’s complaint recounts multiple incidents, over a three-year period, when Alcoa failed to award bids to Nanko and awarded contracts to white-owned companies instead.
But, as the majority also notes, a
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 beеn 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 сan be characterized by race, and many contracting parties are “harsh, unjust, and rude,” but a failure to do business with a particular African-American individual or company does not automatically constitute a federal civil rights claim. See generally Alfano v. Costello,
The inadequacy of Nanko’s pleading is hardly surprising. Intentional discrimination may be relatively easy to plead via comparator evidence — as Nanko apparеntly 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,
Accordingly, I would affirm the district court’s dismissal of Nanko’s claims pursuant to