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Maritime Preservation Ltd. v. Black Hawk Shipping Enterprises, Inc.

Citations: 212 F. Supp. 3d 273; 2016 U.S. Dist. LEXIS 181290; 2016 WL 7646359Docket: Civil No. 13-1728 (SEC)

Court: District Court, D. Puerto Rico; April 19, 2016; Federal District Court

Narrative Opinion Summary

In this case, Black Hawk Shipping Enterprises, owner of the cargo ship M/V V.I. Pride, contracted Maritime Preservation LTD for repair services but defaulted on the full payment, leading to a legal dispute. Maritime secured a default judgment in Trinidad and Tobago for the outstanding debt and sought to enforce this judgment in Puerto Rico through an exequatur action. The court granted Maritime's motion for summary judgment regarding the exequatur, recognizing the foreign judgment based on criteria including jurisdiction and due process. Black Hawk contested the personal jurisdiction and service of process, but the court found that service was proper under Trinidad and Tobago law and that specific jurisdiction was established through the repair contract and choice-of-law clause. Maritime also pursued a declaratory judgment to hold Black Hawk’s officer, Rosalie Tarbox, personally liable for the debt, citing corporate dissolution. However, the court denied this request, as Black Hawk's reinstatement as a corporation in good standing ratified Tarbox's actions, absolving her of liability. The case underscores the legal principles surrounding foreign judgment enforcement, personal jurisdiction, and corporate officer liability.

Legal Issues Addressed

Corporate Officer Liability for Corporate Debt

Application: The court denies liability for Rosalie Tarbox, Black Hawk’s officer, as her actions were ratified post-reinstatement of the corporation.

Reasoning: The Court finds that Black Hawk indeed ratified Tarbox's actions post-reinstatement, thereby terminating her liability.

Personal Jurisdiction in Exequatur Proceedings

Application: Personal jurisdiction over Black Hawk is established under Trinidad and Tobago law, allowing for the enforcement of the foreign judgment despite challenges regarding service of process.

Reasoning: The Court rejects both arguments. It clarifies that T. T. is not bound by the Hague Convention's service requirements, and in exequatur proceedings, the origin of the judgment is irrelevant as long as personal jurisdiction is established under T. T. law and is constitutionally permissible.

Recognition of Foreign Judgments through Exequatur in Puerto Rico

Application: The court validates a foreign default judgment obtained in Trinidad and Tobago through an exequatur proceeding in Puerto Rico, ensuring jurisdiction and competence criteria are met.

Reasoning: The court grants Maritime's motion for summary judgment regarding the exequatur, validating the foreign judgment.

Service of Process under Trinidad and Tobago Law

Application: Maritime properly served Black Hawk via certified mail and international courier with court approval, fulfilling the service requirements under Trinidad and Tobago law.

Reasoning: Maritime filed a collection action and sought permission to serve Black Hawk via certified mail, which the T. T. court granted.

Specific Jurisdiction and Forum Selection Clause

Application: The choice-of-law clause in the repair contract and Black Hawk's engagement in Trinidad and Tobago establish specific jurisdiction for Maritime's collection action.

Reasoning: Black Hawk's decision to repair its vessel in T. T. and the inclusion of a choice-of-law clause in their contract designating T. T. as the forum confirms this jurisdiction.