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ProShipLine Inc. v. Aspen Infrastructures Ltd.
609 F.3d 960
9th Cir.
2010
Check Treatment
Docket

*4 ty they seized in accord with that writ. BEEZER, Before ROBERT R. appeal We have over this M. and RICHARD C. RONALD GOULD § pursuant to 28 U.S.C. 1291. We hold TALLMAN, Judges. Circuit first deci- although the district court’s proper, sion was the district court abused ORDER Eq- its discretion the second decision. opinion February The 2010 is filed not have ap- uitable vacatur should been hereby opinion The amended amended. plied against individually. concurrently filed with this order. I petition rehearing The for filed De- 16, 2010 fendants-Appellees February litigants’ legal formally on relationship The 9, 2006, rehearing began April when EP-Team1 petition DENIED. The for companies corporation enterprise ment that works with EP-Team a with its is Delaware Mound, place principal variety of business in Flower across a of business sectors. manage- consulting Texas. EP-Team is a and into Aspen2 and entered the Sales and A Logistics Agreement. Services Under 6, 2007, August On Agreement, ProShipLine,3 as EP-Team’s against Aspen EP-Team filed suit in the designated agent assignee, agreed EP-Team, Southern District of Texas. Aspen’s general act as and port sales ser- Aspen Infrastructure, Inc. v. No. 4:07 agent. ProShipLine vices and EP-Team (S.D.Tex. 2007). Aug. Civ. 2549 Pro- cargo trips solicited for return to India and ShipLine and EP-Team sought declarato- port operations handled .terminal ry relief regarding the construction and Aspen throughout America.4 Agreement enforcement of the and to com- pel arbitration. then stay moved to Agreement parties’ The contains a fo- pending the case parties’ resolution of the that, says rum selection clause that in the disputes through in Singapore. arbitration dispute of a parties, case between the arbi- On December District Texas place Singapore. tration should take granted Aspen’s Court motion and admin- Agreement also includes a choice-of- istratively closed the suit. The court ex- that, providing law clause in such a dis- pressly open option left to reinstate *5 pute, Agreement the should be construed following case the conclusion of the and enforced in English accord with law. proceedings. arbitration ProShipLine’s, EP-Team’s and 7, 2007, On December ProShipLine and contractual in good remained relationship EP-Team a against initiated second action standing year. more a than Aspen in the Southern District of Texas. ProShipLine’s, Aspen's EP-Team’s and ProShipLine, Inc. v. BELUGA REV- M/V relationship became strained in the sum- OLUTION, H-07-4170, No. 2007 WL mer of 2007. Each side blames the other (S.D.Tex. 5397377, 2007). 7, at *1 Dec. In for breaching Agreement.5 We do not action, ProShipLine and EP-Team examine the merit of these contentions. sought an order and writ of maritime at- only We observe that the conflict resulted pursuant tachment to Rule B. The district terminating their business 10, court issued the writ on December 1, relationship on or about August 2007. Aspen 2007. immediately moved to vacate The end of the relationship business conducting writ. After evidentiary an marked the onset of litigation extensive hearing 14, 2007, on December the district Texas, New Washington. York and granted court Aspen’s motion and vacated contracting, 2. At the time Aspen, closely- Aspen of 4. transport charters vessels to wind India, enterprise incorporated held generator components did turbine from India to countries, business under the name of Infra- including Suzlon other the United States. past years, structure Ltd. Over the several In an returning effort to avoid vessels to India handed, changed Suzlon empty Infrastructure Ltd. Aspen its name entered the contract Ltd., Aspen to carriage Infrastructures had cargo its name business to obtain for its re- revert back to Suzlon trips Infrastructure Ltd. and turn to India. changed again Synefra its Engineer- name to ing & Construction Ltd. In the interest of ProShipLine 5. allege and EP-Team that As- simplicity, enterprise we refer to this as "As- pen sought multiple to involve them in trans- pen” regardless of its actual name at different ProShipLine actions that and EP-Team be- points in time. illegal. Aspen alleges lieved were that it had grown ProShipLine’s dissatisfied with ProShipLine corporation is a Nevada performance, with especially regarding EP-Team’s ip Houston, principal place bookkeeping handling business and the aof bank ac- ProShipLine Texas. operated serves as a by ProShipLine contract car- count and EP-Team types cargo. rier for various Aspen. on behalf of ProShipLine appealed Belu- vacated the writ.8 Inc. v. ProShipLine, the writ.6 M/V Revolution, H-07-4170, 2007 WL grant No. of this motion to the district court’s ga 2007). (S.D.Tex. Dec.18, 4481101,at *1 Circuit, which affirmed the dis Second ProShipLine, Aspen trict court. Inc. v. B (2d Ltd., 105, 110 Infrastructures, proceedings place took legal Cir.2009) Similar (affirming “solely ground on the 12, 2007, Aspen York. On October New not err in that the district did con individually EP-Team brought against suit cluding that[ProShipLine Aspen] were (the York District of New the Southern in the present both Southern District of Action”). Aspen “First New York Infra Texas”). Team, Inc., structures, E.P. No. 07 Ltd. v. 8813(RWS), 2008 WL 2963491 Civ. C (S.D.N.Y. 2008). Aug.l, Aspen alleged ad parties brought legal their struggles an order miralty jurisdiction sought Washington on November pursuant attachment and writ of maritime ProShipLine when and EP-Team filed an- B. The court ordered the to Rule district ancillary Rule B action in other the West- and, writ, pursuant to that issuance (the of Washington ‘Washing- ern District writ, EP- belonging funds Aspen seized Action”). ProShipLine, ton See Inc. v. Aspen’s victory only tempo was Team. Infrastructures, No. C07- however, successfully rary, as (WD.Wash. 5660FDB, 2008 WL 859753 moved to vacate writ.7 2008). Mar.28, EP- ProShipLine and inde December On successfully Team obtained writ of mari- *6 against action pendently separate filed a against Aspen. light time attachment In in the Southern District New Aspen order, Aspen posted of the district court’s Action”). (the “Second New York York security pursuant Supplemental to Admi- Aspen v. ProShipLine, Inc. Infrastruc E(5) ralty and Maritime Claims Rule tures, Ltd., 422, F.Supp.2d 533 425 (“Rule E(5)”) in allowing ProShip- lieu of (S.D.N.Y.2008). ProShipLine sought an garnish Line and EP-Team to the fuel and maritime attachment order and writ of Aspen’s one of lube oil aboard chartered B. court to Rule The district pursuant vessels within the district. writ, ProShipLine gar issued the and 2007, a ship In December of second approximately Aspen nished and seized $2 by Aspen, chartered BELUGA M/V million from bank accounts. On (the “Beluga”), FUSION entered the 16, 2008, January Aspen moved to vacate Washington. ProShip Western District of in the the district court’s order Second Aspen garnish to the fuel sought Line and York Action. The district court ruled New 2008, time, 1, Beluga. Aspen February in favor of and and lube oil aboard the This granted Aspen’s writ 8. motion 6. The district court concluded that The district Agreement improperly ProShip- had been issued because because it concluded that the did sufficiently admiralty jurisdiction, give had failed to Line not rise to Aspen present Aspen show that could not be “found’' within were both district, requirement ProShip- a of Rule B. the Southern District of Texas that Pro- Revolution, Line, Beluga parte v. 2007 WL ShipLine Inc. B had abused the ex Rule M/V 4481101, Dec.18, (S.D.Tex. 2007). filing separate against Aspen at *2-*3 process by suit making than a counterclaim in the rather line, order, ProShipLine, Aspen existing Inc. v. In- suit. In a handwritten the district one Ltd., 422, frastructures, F.Supp.2d granted, 427-29 par- both court ordered that "Motion (S.D.N.Y.2008). being ties found in Texas.” security Aspen provide give admiralty jurisdiction, declined to to sub did not rise to garnishment stitute for of those resources. judicata applied res from the Second New 27, 2007, On December the district court York all Action and of the were “emergency” hearing. held an The court present within same district. rejected ProShipLine’s and EP-Team’s ar ProShipLine and EP-Team moved for gument compel Aspen that it could to pro reconsideration ground on the security.9 vide Given the choice to either allegedly district court had awarded dam right garnish property waive their ages Aspen by ordering ProShipLine or take despite alleged the resources im and EP-Team Aspen. to reimburse Pro practicability, ProShipLine and EP-Team ShipLine, Infrastructures, Inc. v. Aspen removed the fuel and lube oil from the Ltd., C07-5660FDB, No. 2008 WL 1757932 Beluga. With the fuel and lube oil in hand 2008). 17, Apr. The district CW-D.Wash. (or container, be), as the case Pro court denied the motion. The court con ShipLine and EP-Team moved for an or cluded that the amount that ProShipLine der to authorize the sale of the property. deposited and EP-Team had into the court 30, 2008, January On the district court registry was less than the market value permitting issued the order sale they agreed upon prior had to garnish garnished property. ProShipLine, Inc. v. ment. Infrastructures, Ltd., No. C0-7 (W.D.Wash. 5660FDB, 2008 WL 276497 2008). property

Jan. was subse II quently sold.10 an We review order vacating February On Aspen moved to writ of maritime attachment for abuse of vacate the writ that the district court is- discretion. Equatorial Marine Fuel sued in the Washington Action and to ex- Mgmt. Berhad, Servs. Pte Ltd. v. MISC security onerate the by ProShipLine held (9th Cir.2010). We pursuant and EP-Team to that writ. Pro- legal review the supporting conclusions ShipLine, Inc. Aspen Infrastructures, such an order de novo. Id. (W.D.Wash. Mar.28, 2008 WL 859753 *7 We review de novo a 2008). district 28, 2008, On March the district court’s decision that legal lacked the granted court Aspen’s motion and vacated capacity under the Admiralty Rules to the or writ. The district court also ordered der a party ProShipLine post security in lieu of and EP-Team to return the garnishment. full value of garnished See Husain v. property.11 Olympic The Air (9th Cir.2002) district court equitable ways, 829, held that vacatur 835 appropriate was because Agreement (noting that conclusions of law are re- ProShipLine $64,129.50 9. sought security and EP-Team registry the court on March —into 17, they alleged because garnishment that of the 2008. Beluga fuel and lube oil aboard the would be impracticable. Specifically, ProShipLine Specifically, 11. the district court ordered Pro argued complexities EP-Team that ShipLine due to the pay Aspen and EP-Team to an addi removing $28,092.06, involved in the fuel and lube oil tional the difference between the Beluga, from the the cost of ProShipLine removal and amount and EP-Team had de storage would exceed posited the actual value registry into the court and the fair those resources. garnished properly market value of the at the garnished. ProShipLine, time it was Inc. v. sale, 10. Infrastructures, In accord with the Aspen No. C0-7 5660FDB, 1757932, deposited equal an amount to the 2008 WL at *1 (W.D.Wash. 17, price 2008). actual sale of the Apr. fuel and lube oil—

967 25, 644, obligations.” 124 Id. at 125 novo), land-based aff'd, 540 U.S. de viewed (2004). 1221, 157 conceptual approach 1146 385. The ac- L.Ed.2d S.Ct. S.Ct. reality by examin- knowledges this modern Ill the contract references “mari- ing whether or maritime transactions.” time service ProShipLine’s court vacated The district 24, (quoting Pac. attach- Id. at 125 S.Ct. 385 N. writ of maritime EP-Team’s Ry. was v. Hall Brothers Marine it concluded that there Co. & S.S. ment because Co., to ad- giving claim rise 249 Shipbuilding no valid maritime U.S. 39 (1919)). court jurisdiction. The district miralty 63 L.Ed. 510 S.Ct. judicata it was bound res held that also The district court here did not ex fur- The district court to vacate the writ. Agreement required by amine the as Nor im- attachment was concluded that ther The Railway Southern Co. district folk were all of proper because applied analysis employed by court instead District of Texas. in the Southern present a few cases the Southern District of court, offers a to this appeal On suggest New York. These cases that equitable vacatur was fourth reason whether a contract is maritime for the EP- ProShipLine and arguing that proper, admiralty jurisdiction purpose hinges by seeking § violated 9 U.S.C. 8 Team upon specific whether the contract involves diligently without maritime attachment See, specific e.g., vessels and transactions. Singapore. The arbitration pursuing Dev., Invs. v. Dolco Moonriver vacated the writ as properly district (S.D.N.Y.2007). F.Supp.2d 267-68 court, how- The district ProShipLine. The district court concluded that ever, by vacating the abused its discretion Agreement was not a maritime contract to EP-Team individual- pertains writ as it spe it did not make “reference to because ly- voyages.” cific vessels or A deciding, In so the district court abused Railway its discretion. Southern Norfolk B party may only A seek Rule controls and should have been applied Co. underlying if the claim satisfies attachment concep- court. by the district Under admiralty jurisdiction under 28 U.S.C. Court, Supreme adopted tual test Supreme explains § The Court manifestly maritime Agreement has gives claim rise to Section a contractual objective.” “principal commerce as its un admiralty jurisdiction when the Agreement begins by stating that As- in nature.” derlying contract is “maritime to utilize the services of pen [Pro- “seeks Ry. Kirby, N. S. Co. v. James Norfolk *8 and of its ShipLine support EP-Team] 385, 160 L.Ed.2d 283 U.S. 125 S.Ct. space to book on its efforts vessels.” (2004). determination, we To make this ProShipLine’s primary and EP-Team’s examine a contract to determine must obligations Agreement under the are to objective of a con principal “whether the revenue,” freight and associated “secure 25, Id. at tract is maritime commerce.” cargo to “opportunities spe- obtain to add adopting In this frame 125 S.Ct. 385. voyages” cific outbound and handle all work, rejected the Supreme Court handling operations” and terminal “port to deter longstanding “spatial approach” facilitation, including “terminal stevedor- maritime nature of contracts. mining Although lift ing, heavy operations.” 24-25, The Court Id. at 125 S.Ct. 385. many obligations performed of these are approach” “conceptual held that a instead land, question is no their there modern maritime was needed because purpose pos- is to facilitate and make inseparable from some sole commerce “is often 968 oper- infringement

sible international maritime suits involve of the same (4) right; substantially ations. whether presented same evidence is in the two Contrary to the district court’s conclu- actions. sion, Agreement gives rise to federal v. Mpoyo Electro-Optical Sys., Litton maritime 430 under 28 U.S.C. (9th 985, Cir.2005) § F.3d 987 interpretation Agree- (emphasis 1333. Our of the added). Circuit, ment in accord with the Second Whether two suits arise out of Agreement which that the has concluded the “same transactional depends nucleus” “undeniably maritime flavor” an under the upon they “whether are related to the Railway conceptual Southern Co. they same set of facts and whether could Norfolk ProShipLine, test. Inc. v. conveniently together.” he tried Sys.,W. Infra- (2d structures, Ltd., 105, 585 F.3d 115 Ulloa, (9th 864, Inc. v. 958 F.2d 871 Cir. .2009). Cir 1992) added). (emphasis Reliance on the transactional especially nucleus element is

B appropriate because the element is “out- judicata Res bars a suit when “a come Mpoyo, determinative.” F.3d at 430 judgment final on the merits of an action 988; Karr, see also Int’l Union v. 994 F.2d or their precludes privies from (9th Cir.1993). 1426,1429-30 relitigating issues that or were could have Here, application the district court’s of been raised that action.” Allen v. judicata res was erroneous because there 90, 94, 101 McCurry, 411, 449 U.S. S.Ct. identity is no appeal of claims. The before (1980). L.Ed.2d 308 We have further ex us and the Second York New Action do not plained judicata applies res when arise from the same “transactional nucle- “(1) (2) claims; an identity there is Although us.” both cases involve similar (3) merits; judgment final on the iden facts, sets of the claim this suit could tity privity or parties.” between Stewart not have been tried in the Second New (9th Bancorp, U.S. 297 F.3d all, York Action at much conveniently. less Cir.2002). In bring order to a claim of maritime Circuit,

The district court abused attachment within the Second discretion concluding plaintiff allege that it was bound must that “the defendant’s judicata res to vacate the writ property to con be found within the district” form with the Southern District of New garnishment where the being action is York’s decision to vacate the writ involved brought. Aqua Shipping Stoli Ltd. v. in the Second York New Action. We ex Pty Gardner Smith amine (2d Cir.2006). four factors to determine whether n.& 5 The Southern Dis- there an “identity of claims”: trict of New York is completely unable to

(1) whether entertain a claim seeking admiralty the two suits attach- arise out of facts; vessel, the same ment of property transactional on board a nucleus of such (2) rights whether Beluga, or as the located in the interests estab- Western Dis- lished in the prior judgment trict of Washington. identity would be Absent an destroyed impaired by prosecution claims, or judicata res apply cannot in this *9 (3) action; the second whether the two case.12 parlies

12. The have been solely preclusion inconsistenl in their rests on claim or alternative- judicata” use of the term "res in their brief- ly preclusion. on both claim and issue Inso- ing, referring sometimes to both claim and may far as the district court have relied on preclusion. issue It is also unclear from the preclusion, we issue conclude that none of the district court's order whether its decision district, personam is able to obtain in one

C jurisdiction in over the defendant “the” previously opportunity not had haveWe plaintiff district where the is “located.” vacatur in the upon equitable to elaborate Equitable potentially vacatur is warranted admiralty law. The Second Cir- of context in plaintiff such cases because the is able cuit, however, narrow described three has litigate against the defendant in the when, plaintiff having despite the instances plaintiffs most convenient district. See id. showing of successfully prima made a facie at that situation 444-45. We stress this to a of maritime attach- entitlement writ narrowly refers to “the” district where the ment, may of that writ equitable vacatur located, “any” not “a” or plaintiff is district appropriate: be plaintiff the is located. This district where vacate writ [a district [A] equitable scenario allows for vaca- limited if the defendant attachment] maritime only plaintiff tur when the could obtain in 1) is ... that the defendant sub- shows personam jurisdiction over the defendant adjacent ju- ject in a convenient to suit in plaintiff the federal district where the 2) risdiction; plaintiff could obtain the significant presence. has its most Our over the defen- jurisdiction personam in of the second understanding Aqua Stoli plaintiff in where the dant the district complete agreement with situation is the 3) located; already plaintiff or the has York, District of Southern New which has security po- for the obtained sufficient question. addressed this exact See Peter by attachment or oth- judgment, tential Dohle KG Sesa Goa Schiffahrts erwise. (S.D.N.Y.2009) 216, 224 F.Supp.2d Here, the district court held Id. at 445. (holding Aqua that the second Stoli sce- appropriate vacatur was equitable that ‘the’ nario “references district where the conclusion that the second based on its plaintiff concept closely is located ... [a] by the Second Circuit situation described ”); alignfed] legal term ‘domicile’ with that The district court reasoned applied. Aqua Shipping, see also Stoli 460 F.3d at EP-Team had success- ProShipLine and (noting equitable applies that vacatur jurisdiction personam fully obtained in circumstances”). only “limited District of over the Southern EP- ProShipLine that Texas and framework, analytic Under this in that district. “present” Team were both that correctly the district court concluded agree adopt Although we with equitable vacatur of the writ is warranted equitable vacatur laid out contours ProShipLine. question as to There is no Circuit, disagree we with the the Second ProShipLine that is “located” the South ap- court that the second situation district Texas, ern District of the district where it to EP-Team. plies and most principal place has its business Likewise, significant presence. the record Aqua Shipping

The second Stoli clearly that ProShipLine where a indicates could describes the situation scenario personam a maritime obtain in over As- seeking who is writ plaintiff, ’’present” in the Southern District of Texas is decided in the First New York Action issues preclusive has effect here. of whether EP-Team is irrelevant to issue III.C, First, Part And “located” there. See the district court’s conclusion in infra. third, possibility ProShipLine New York Action that the contract abused Second rejected not a maritime contract was parte nature of Rule B attachment the ex gives appeal and no basis Second Circuit on proceedings of New in the Southern District Second, preclusion. for issue district us. York is also irrelevant to the action before was court’s conclusion *10 970

pen in the District of Aspen personam jurisdic- Southern Texas be- could obtain in ProShipLine repeatedly engaged cause has in tion over EP-Team the district where Aspen litigation Equi- in in that district. Aspen was located. Aspen See Infrastruc- pertains table of the writ as it to tures, vacatur Team, Inc., Ltd. v. E.P. 2008 WL ProShipLine thereby warranted was be- (S.D.N.Y.2008). 2963491, at *1 In a one ProShipLine person- cause could obtain in line, order, handwritten the district court jurisdiction Aspen am over in the district concluded that EP-Team made that show- where is located. ing equitably vacated the writ. Con- assertion, trary Aspen’s po- EP-Team’s analysis This leads to a different sition in that in way suit is no inconsistent regards result in to EP-Team. EP-Team position with its here. Hamp- See New Texas, is located in the Eastern District of Maine, 742, 750-51, shire v. 532 U.S. signifi district where it has its most (2001) 1808,149 S.Ct. L.Ed.2d 968 (holding presence cant due to its principal place of judicial estoppel may if, that be warranted Mound, in business Flower Texas.13 among things, party’s other a posi- later There is no indication in the record that “clearly tion is inconsistent” with earli- its personam juris EP-Team could obtain in There, position). er merely EP-Team in Aspen diction over that district. Based sought to that demonstrate it had suffi- facts, upon entirely undisputed these two presence cient in the Southern District of grant equitable against vacatur EP- Aspen Texas for to exercise personam in individually Team was an abuse of discre Here, it over there. Aspen tion because has not shown that significant asserts that its most presence EP-Team could obtain personam juris in Texas, in diction Aspen over the district Eastern District of where it where EP-Team is located.14 principal place has its of business. These two positions entirely are consistent and disagree We with Aspen’s contention provide judicial no basis estoppel. judicial that estoppel and the outcome of the First compel New York Action a dif- D ferent result. In the First New York Ac- tion, that, EP-Team’s and positions Aspen argues in addition to reversed, EP-Team, prompting were provided by three reasons the district pursuit vacatur, of equitable court, equitable show that vacatur of the writ was joint EP-Team’s significance mistaken statement in its principal place of EP-Team’s business, complaint Washington in the Action as to the we decline to bind EP-Team to its principal place Holder, location of its of business misstatement. See Hoodho v. (2d does not Cir.2009) warrant different conclusion. The F.3d (noting that a record does not indicate may disregard the district stipulation “court if to ac making court relied on the cept misstatement manifestly unjust it would be or if the Moreover, its decision. EP-Team had contrary stipulation little evidence to the is sub suspect (internal reason to principal place that its quotations stantial” and citation omitted)). any bearing upon business would have this matter, considering previous that we had not ly equitable embraced the doctrine of vacatur 14. Because the district court abused its dis- regards EP-Team, to maritime vacating writs and that no cretion in the writ as to circuit court nation had automatically defined the also abused its discretion exact Aqua contours of the second Ship ordering pay Stoli Aspen EP-Team to the market ping situation. undisputed Given the fact value of the attached resources. We need not principal place EP-Team’s ProShipLine's of business is argu- address and EP-Team's Mound, actually in complete Flower lack ment that the order to reimburse con- of reliance entry district court and the novel money judgment. stituted the of a *11 concluding in ProShipLine and its discretion because appropriate also alleged- § by 9 U.S.C. argument EP-Team violated lacks merit. pursuing without a Rule B writ

ly seeking IV Singapore. in The district arbitration by Aspen’s ar- was “not convinced” court ProShipLine and EP-Team con Neither are we. gument. the court tend that district also erred concluding that a district court the lacks provides: Section 8 Admiralty under the legal capacity Rules a cause of If the basis of be party post security a in lieu to order to of admiralty, in justiciable action otherwise conclu garnishment. The district court’s claiming aggrieved to be party ... the sion was correct. hereunder may begin proceeding his other and seizure of the vessel or libel Supplemental Admiralty and Maritime party other ... and the property of the E(4)(b) (“Rule E(4)(b)”) Rule states Claims jurisdiction to di- shall then have court warrant, may, pursuant that a marshal to a proceed with the arbi- rect the to possession tangible property take of .... tration custody or, in “possession safe cases where inter- Supreme § 8. The Court 9 U.S.C. impracticable,” may copy “affix a the [of Congressional a declara- prets Section 8 as to the in a property conspicuous warrant] admiralty procedure tion that “traditional E(5) place.” provides Rule that the “own- security its concomitant should be with any general file a er of vessel bond or despite aggrieved party” available to the to stipulation” cause the execution of all “parties agreed fact that the had to the vessel, processes against gar- the such as Sugar v. Am. arbitrate.” The Anaconda nishment, stayed provided to be that the Co., Refining 322 U.S. 64 S.Ct. stipulation or bond is sufficient. (1944). ability pur- The to L.Ed. 1117 that, ProShipLine argue and EP-Team attachment, however, maritime does sue aggregate, empower these Rules a “obligation to arbitrate party’s not lessen a a party post district to order to grievance.” Aspen argues Id. [its] security garnishment. in lieu of Neither properly the district court vacated writ provision remotely grants even district and EP-Team have because E(4)(b) authority. courts such Rule refers diligent pursuing not been arbitration impracticability only to the sense that it Singapore. a proper- allows marshal to leave notice on Aspen’s argument is weak on several ty that to Rule “impracticable” possess. plain text of Section 8 counts. Neither E(5) permissive gar- is a rule that allows interpretation Supreme nor Court’s security post having nishees to in lieu of suggests permits that the Section dis- property garnished. ProShipLine’s their B if it trict court to vacate Rule writ argument that and EP-Team’s novel these plaintiff pursuing deems that is not compel provisions post- allow courts salvage arbitration. also fails to its ing security garnishment in lieu of argument by citing any support case in of impracticability completely instances understanding novel of Section More- misinterprets underlying rules. over, if adopt Aspen’s even we were to interpretation, apply it still would not here y ambiguous because the record is as district court abused its discretion party actually has been at fault for

which by vacating pertains the -writ as it to EP- progress Singapore of the arbitra- the slow within Team. The writ shall be reinstated tion. The district court acted well *12 972 (9th 1208, Cir.2010), specified 1210 the individually. Because we

behalf of elements for a Rule B writ of attachment: to EP- improperly the writ was vacated as “(1) prima Plaintiff has a valid facie admi- Team, to reimburse for the order (2) defendant; ralty against claim the de- property also garnished the value of the fendant cannot be found within the dis- improper. (3) trict; can property of the defendant be on on party Each shall bear its costs (4) district; within the and there is found appeal. statutory no or maritime law bar to the part, in AFFIRMED REVERSED (citing Aqua Ship- attachment.” Id. Stoli part and REMANDED. Pty ping Ltd. Gardner Smith 460 (2d 434, Cir.2006); Fed.R.CivJP., F.3d 445 TALLMAN, Judge, concurring Circuit B). Supp. Noticeably missing R. the from part, dissenting part: security satisfy list is a a need future agree majority’s analysis I with the re- Indeed, judgment. specifically B lim- Rule garding ProShipLine, and concur in the its the use of attachment to those situa- affirming the vacatur of the mari- opinion tions in which the defendant “is not found against company. time attachment that district,” words, within other when However, I disagree the writ of at- (yet) the court personam does not have in appropriate tachment was as to EP-Team jurisdiction over the defendant. Attach- (and majority’s with the conclusion solely ment to ensure satisfaction of a fu- it), in vacating the district court erred judgment ture a is not basis for Rule B portion opinion, as to that of our court’s I attachment.1 respectfully dissent. I would hold that the Turning from issuance of a writ of at- late Franklin Judge Burgess D. did not err it, tachment to vacatur of Ninth Circuit under Rule E B vacating the Rule writ jurisprudence interpreting when a Rule E of attachment against EP-Team. vacatur is warranted is not well developed. The writ of attachment in maritime law Fuel, In Equatorial Marine we concluded See, e.g., has ancient roots. Manro v. may that a court order vacatur a B of Rule (10 Wheat.) Almeida, 473, 23 U.S. 6 L.Ed. Supplemental attachment under Rule (1825). Historically, the writ served E(4)(f) “plaintiff if the failed to meet one of (1) dual purposes: personam to obtain in the four conditions for attachment” out- (2) respondent, over the to lined above. 591 at (citing Aqua F.3d availability satisfy ensure the of assets to 445). Shipping, Stoli 460 F.3d at Howev- judgment plaintiff in case the succeeds er, any we did not discuss other instance the merits. & Co. Packers v. Com Swift where vacatur might appropriate be an Caribe, S.A, pania Colombiana Del 339 remedy. U.S. 70 S.Ct. 94 L.Ed. 1206 Because of the absence of Ninth Circuit (1950); Shipping Polar Ltd. v. Oriental caselaw, my colleagues quite appropriately (9th Shipping Corp., 680 F.2d 636-37 considerably turned to a court with more Cir.1982). B, “In Rule entitled Personam experience guid- with Rule E vacatur for Garnishment,” Actions: Attachment and ance, adopted propounded by the test ability plaintiff codifies the of a seek in Aqua Shipping. Second Circuit Stoli in admiralty. writ attachment Specifically, majority endorsed the In Equatorial Marine Mgmt. Fuel listing specific Second Circuit’s instanc- Berhad, Servs. Pte Ltd. v. equitable MISC es when vacatur appro- be B(l)(e) specifies proper- 1. Rule that seizure of erned instead Federal Rule of Civil Proce- ty judgment gov- to secure satisfaction of a dure 64. “1) subject phrase defendant is to suit district” and “located” “the priate: 2) jurisdiction; adjacent plaintiff district where is located.” in a convenient ju- Maj. op. at 969. A careful personam reading could obtain in plaintiff *13 however, Aqua Shipping, in the district Stoli over the defendant shows that risdiction 3) located; preci- or the the Second Circuit intended no such plaintiff the is where sion, limit already application sufficient se- nor did it its to “the has obtained plaintiff potential judgment, by plaintiff at- federal district where the has its curity for the Maj. Maj. at op. significant presence.” op. or otherwise.” 969 most at tachment 460 at 969. Before (quoting Aqua Shipping, propounding prongs Stoli F.3d the three 445). test, Unfortunately, majority the me- of its the Second first noted Circuit chanically formulation then that maritime attachment “[a] recited this would like- apply- properly plaintiff rationale when wise be vacated if the promptly ignored to the of this case. and defendant are in ing present the law facts both the subject same district and would be ju- to mari- explained, As the Second Circuit there, risdiction but the plaintiff goes to time attachments arose because maritime another district to attach the defendant’s “peripatetic,” availability are so the Aqua Shipping, assets.” Stoli 460 F.3d at per- of a writ of attachment to obtain in added). 444-45 (emphasis That is what jurisdiction party over a avoids re- sonam happened here. quiring plaintiff globe a to “scour the to proper property Aqua Shipping find a suit or of Whether the Stoli bases forum for satisfy judg- literally defendant sufficient to a for vacatur are read the or more added). I (emphasis broadly, my colleagues’ recognition ment.” Id. at 443 share jurisdiction obtaining personam is that is located in the Since South- justification authorizing a ern District of that principal a Texas and is attachment, subject personam jurisdiction it to in prejudgment writ follows there. juris- plaintiff Accordingly, equitable appro- that if the can secure such vacatur was to priate ProShipLine. part ways, over the defendant some other as We diction means, however, opinion then there no need to attach when the court’s con- is Indeed, con- that there a property. the Second Circuit cludes is dearth of evidence in support finding that vacatur of a writ of attachment the record to a the cluded “may ju- be warranted when the defendant Southern District of Texas would have EP-Team, subject it be to risdiction over thus concluding can show would jurisdiction jurisdic- in another personam that we must reinstate the writ as to that plaintiff.” party. tion convenient to the Id. at added). (emphasis Starting

444 from this First, EP-Team the Aqua meets Stoli Shipping premise, Aqua Stoli Shipping “present test because listed three then circumstances which same Aspen] [as district defendant equitable appropriate vacatur be —the subject jurisdiction would be to there.” quoted circumstances three above—includ- at 444-45. Id. EP-Team acceded to in ing two in which a defendant would be personam jurisdiction in the Southern jurisdiction in subject personam to in a by choosing District of Texas to file the plaintiff. convenient to district underlying against Aspen in that lawsuit district, only my colleagues fail to and EP-Team’s counsel conceded Not do consid- jurisdiction argument. at It er the rationale behind the Second Cir- there oral list, they personal jurisdiction juris- its formu- tenet of rigidly cuit’s adhere to basic Indeed, majority prudence subjects devotes an that one himself to the lation. jurisdiction page parsing meaning brings of “the of the court where he entire See, e.g., Light peatedly alleged, Merchants’ Heat & the federal district court suit. Sons, only B. in Houston is Co. v. James Clow & U.S. some miles from (1907) Tacoma, 51 L.Ed. 488 headquarters. 27 S.Ct. EP-Team’s (“[B]y setting up its counterclaim de- Washington, courthouse where this action turn, plaintiff hand, in its in- began, fendant became on the other is 2100 miles of the court in the Further, voked headquarters. from EP-Team’s action, and, by invoking, submitted same always as EP-Team has retained the same it.”); Ross, 1130, 1149 SEC v. attorneys co-plaintiff as ProShipLine, (9th Cir.2007) (“[A] party cannot simulta- Houston, which is located it is unclear *14 neously from a seek affirmative relief jurisdiction what could be more convenient object court that court’s exercise of and to And, than ProShip- Southern Texas. as jurisdiction.”). Line was created EP-Team and head- in quartered specifically carry Houston to jurisdiction

EP-Team’s consent to was requirements Agreement out the of its merely not that it “allegation” some was Aspen subject with ultimate of this subject in that It willingly to suit district. —the has, dispute already and in fact process power availed itself of the of —EP-Team created, already substantial contacts with that choosing complaint court to file its of Southern District Texas that it lacks against Aspen It there. should not now be in the Washington. Western District of permitted “present” to claim that it is not The Southern District of Texas is conve- or “located” the Southern District of EP-Team; indeed, nient to “the district Texas when it initiated the underlying enough has been convenient for [EP- very claim case in that in this court. Free to have chosen to litigation Team] initiate Co., 448, 454, man v. Bee Mach. 319 U.S. against Aspen separate in two actions (1943) (ex 63 S.Ct. 87 L.Ed. 1509 ProShipLine, there.” Inc. v. that plaining corporation is found or Infra- structures, Ltd,., (2d present in a purposes district for all of a Cir.2009). jurisdiction suit once it has invoked the of court). reason, the federal that For EP- Additionally, the underlying rationale candidly, Team’s counsel appropriate for the issuance of a writ of maritime ly, personam conceded in at attachment was absent from this case argument. oral beginning. already since the EP-Team had Moreover, personam jurisdiction obtained in over As- the evidence that the South- pen in sought Texas when it attach- ern District of Texas is a this more convenient goal ment. The avoiding forum than the the need for Western District of Wash- ington globe EP-Team to “scour the against for EP-Team’s action As- find a pen is forum overwhelming. proper already Even if for suit” had been EP-Team’s principal fact, place of business2 is in achieved.3 In EP-Team candidly Flower ac- Mound, Texas, District, knowledged the Eastern it sought the writ “to rather than Houston as EP-Team has re- make likely any more the collection” of Supreme 2. recently Court has clarified meets this definition —or needs to—with re- Mound, Texas, "principal place that means, term spect claim that Flower business" purposes diversity juris for of federal principal place is its of business. diction, "corporation’s the locale where a direct, control, high company providing global logistics level officers For a and coordi activities,” services, Texas, corporation's management nate the with often called offices in Florida, Connecticut, Friend, - Netherlands, Corp. "nerve center." Hertz -, France, U.S. Italy, Germany, Singapore, 130 S.Ct. -L.Ed.2d - (2010). It company is unclear whether EP-Team which contracted an with Indian to obtain per- arbitration award —not jurisdiction.

sonam

Finally, strongly suggests the record being maritime attachments are em- by ProShipLine and EP-Team for

ployed harassing Aspen purpose

the vexatious advantage a tactical in the gain

in order to

pending disputes among commercial I Singapore and Houston. that fact alone sufficient as a

would hold granting equitable vaca-

separate basis such Equity

tur. should not countenance tactics,

litigation even a maritime case. not

The district did abuse its dis- equitable

cretion when found vacatur

appropriate as to both majority

EP-Team. Because the holds EP-Team, I respectfully

otherwise as to part opin-

dissent from that of the court’s

ion. TIRE AMER-

TOYO HOLDINGS OF INC.,

ICAS as successor interest

Toyo International, Inc., Tire Plain-

tiff-Appellant, TIRE AMER-

CONTINENTAL NORTH

ICA, INC., as successor interest Inc.; Corpo-

General Tire Yokohama America; Co.;

ration of Tire GTY 1-100, Defendants-Appellees.

Does

No. 10-55145. Appeals,

United States Court

Ninth Circuit.

Argued and Submitted June 2010.

Filed June Indeed, agreed Singapore voluntarily to arbitration in follow- EP-Team has scoured this law, ing English “scouring country it is unclear that to attach assets wherever globe” present hardship. they may would much of a be found.

Case Details

Case Name: ProShipLine Inc. v. Aspen Infrastructures Ltd.
Court Name: Court of Appeals for the Ninth Circuit
Date Published: Jun 8, 2010
Citation: 609 F.3d 960
Docket Number: 08-35337
Court Abbreviation: 9th Cir.
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