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Hyundai Merchant Marine Co. v. Grand China Shipping (Hong Kong) Co.

Citations: 878 F. Supp. 2d 1252; 2013 A.M.C. 866; 2012 U.S. Dist. LEXIS 93788; 2012 WL 2870703Docket: Civil Action No. 12-0095-CG-C

Court: District Court, S.D. Alabama; July 6, 2012; Federal District Court

Narrative Opinion Summary

This case involves a dispute over the application of the Hague Service Convention in the context of a maritime attachment claim. The plaintiff, seeking to recover over $19 million in unpaid charter hire, initiated a maritime attachment against foreign defendants, including Chinese corporations. The defendants contested the personal jurisdiction of the court, arguing that the service of process via Federal Express did not comply with the Hague Service Convention, which China has adopted with objections to service by mail. The court reviewed the Magistrate Judge's recommendation to grant the motion to dismiss for lack of personal jurisdiction while allowing the maritime attachment to proceed under Supplemental Rule B, provided notice requirements were met. The plaintiff's mailing did not constitute proper service under the Hague Convention, thus failing to establish personal jurisdiction. However, the court determined that the Convention does not govern notice for maritime attachments, allowing for Rule B attachments if notice requirements are satisfied separately. Ultimately, the court partially granted the motion, acknowledging the lack of personal jurisdiction but preserving the validity of the maritime attachment. The decision underscores the nuanced interplay between international service conventions and domestic admiralty rules in cross-border litigation.

Legal Issues Addressed

Circuit Split on Article 10(a) Interpretation

Application: The court does not resolve the circuit split on whether 'send' implies formal service under Article 10(a) due to its determination on the Convention's broader applicability.

Reasoning: The Supreme Court has not yet interpreted this article, leading to a circuit split: the Ninth and Second Circuits argue that 'send' implies formal service, while the Fifth and Eighth Circuits maintain that it does not.

Hague Service Convention Applicability

Application: The case examines whether the Hague Service Convention's requirements apply to notifying defendants abroad of maritime attachments.

Reasoning: The report concludes that the Hague Service Convention does not dictate how defendants abroad are notified of maritime attachments.

Interpretation of Article 10(a) of the Hague Convention

Application: The interpretation of 'sending' in Article 10(a) impacts whether mailing judicial documents constitutes formal service.

Reasoning: The excerpt highlights several key legal points regarding the application of the Hague Service Convention and the implications for service of process in a maritime attachment case.

Personal Jurisdiction and Service of Process

Application: The court must determine whether proper service under the Hague Service Convention was executed to establish personal jurisdiction over foreign defendants.

Reasoning: The plaintiff's counsel conceded that the Court lacks personal jurisdiction over the Moving Defendants due to improper service under the Service Convention.

Supplemental Rule B and Notice Requirements

Application: The court analyzes whether the mailing of documents complies with Supplemental Rule B's notice requirements in maritime attachment cases.

Reasoning: The court record does not clarify whether the Plaintiff sent the Federal Express package to the Defendant with a return receipt requested, raising concerns about compliance with Rule B's notification procedures.