Bunge S.A. v. Pacific Gulf Shipping (Singapore) Pte Ltd., Pacific Gulf Shipping Co. Limited, and Does 1 through 100

At a glance

Parties

Bunge S.A. v. Pacific Gulf Shipping (Singapore) Pte Ltd., Pacific Gulf Shipping Co. Limited, and Does 1 through 100

Case no.

U.S. District Court, District of Oregon, No. 3:19-cv-00491-SB

Court

U.S. District Court for the District of Oregon (District Judge Karin J. Immergut)

Underlying award(s)

London arbitration award under a charter party between Bunge S.A. and Pacific Gulf Shipping (Singapore) Pte Ltd.

Treaty

New York Convention (9 U.S.C. § 201 et seq.)

Sector

Maritime shipping; charter party

Outcome

The Court adopted the Magistrate Judge's Findings and Recommendation and granted default judgment confirming the award against both defendants (31 March 2020).

Amount

Award: USD 2,116,351 plus interest and costs. Judgment: USD 2,240,809.94.

The dispute

Bunge S.A. obtained an arbitration award in London of USD 2,116,351, plus interest and costs, against Pacific Gulf Shipping (Singapore) Pte Ltd. (PGS-S) for payment due under a charter party. Bunge sued in Oregon to confirm the award under the New York Convention. It also named Pacific Gulf Shipping Co. Limited (PGSC-MI), which it alleged was PGS-S's alter ego. Bunge chose Oregon because PGSC-MI was the plaintiff in a separate action in that district (the Vigorous Shipping action), where it had obtained a Rule B maritime attachment, later replaced by USD 9.5 million on deposit with the court. The defendants did not appear and defaulted. The question was whether the Court had quasi in rem jurisdiction to enter default judgment.

Key holdings

1. On a motion for default judgment, the court must itself confirm that it has jurisdiction over the defaulted party. The Findings and Recommendation had not addressed personal jurisdiction, so the Court examined it. p. 3
2. Type II quasi in rem jurisdiction to enforce an award requires (1) a judgment by a competent tribunal and (2) property of the defendant in the forum. The London tribunal had jurisdiction over PGS-S, which consented in Clause 84 of the charter party. It also had jurisdiction over PGSC-MI: the two are alter egos and can be treated as a single entity for jurisdiction, following Ranza v. Nike. p. 4
3. PGSC-MI's chose in action in the Vigorous Shipping action, which is being litigated in the District, is property in Oregon. Under O.R.S. 18.615, a debt owed to the debtor is attachable property. It does not matter that the asset is intangible or unrelated to the dispute. p. 5
4. Due process was satisfied. There was a prior judgment by a competent tribunal, and notice was adequate: after the hearing, Bunge's counsel contacted PGSC-MI's attorneys in the Vigorous Shipping action, and PGSC-MI had actual notice of these proceedings. p. 6
5. The Court adopted the Findings and Recommendation in full, including the alter-ego finding. It granted default judgment against PGS-S and PGSC-MI for USD 2,240,809.94. p. 7

Procedural history

1. 31 March 2019The Clerk entered the default of PGS-S and PGSC-MI. Bunge then moved for default judgment.
2. 17 December 2019Magistrate Judge Stacie F. Beckerman issued Findings and Recommendation to grant default judgment. No party objected.
3. 28 February 2020Hearing on the motion. The Court asked for supplemental briefing on personal jurisdiction and notice.
4. 13 March 2020Bunge filed a supplemental brief and two declarations.
5. 31 March 2020Opinion and Order: the Findings and Recommendation were adopted and default judgment was granted for USD 2,240,809.94.

Tribunal, counsel and experts

Decided by

• Karin J. Immergut Judge, U.S. District Court for the District of Oregon
• Stacie F. Beckerman Judge, U.S. District Court for the District of Oregon (Magistrate Judge; issued the Findings and Recommendation)

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Keywords

• New York Convention
• confirmation of award
• enforcement
• default judgment
• quasi in rem jurisdiction
• alter ego
• chose in action
• Rule B maritime attachment
• charter party
• London arbitration
• due process notice
• Vigorous Shipping
• personal jurisdiction
• maritime
• O.R.S. 18.615

Summary generated with AI from the published documents — refer to the award for the authoritative text.