Department of Justice Once Again Proves Its Loyalty to the President, Not the Rule of Law

AUSTIN SARAT

Austin Sarat—Associate Provost, Associate Dean of the Faculty, and William Nelson Cromwell Professor of Jurisprudence and Political Science at Amherst College—comments on the recent news that the Justice Department will seek dismissal of charges against Michael Flynn. Sarat suggests that because the decision does not seem to advance the fair administration of justice in this case, the court should take the unusual step of refusing to grant the prosecutor’s motion to dismiss.

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Fortune Laurel, LLC v. High Liner Foods (USA), Incorporated, Trustee

Docket: 2019-0307

Opinion Date: May 8, 2020

Judge: Donovan

Areas of Law: Business Law, Civil Procedure, Contracts

Yunnan New Ocean Aquatic Product Science and Technology Group Co., Ltd. and subsidiaries (YOK defendants) appealed a New Hampshire superior court order attaching funds held by High Liner Foods (USA), Inc. (High Liner USA), the trustee defendant. The YOK defendants argued the trial court erred by maintaining quasi in rem jurisdiction over the funds despite concluding that it lacked personal jurisdiction over them in the underlying action. In 2012, Fortune Laurel, LLC, a Massachusetts company, entered into contracts with the YOK defendants to broker the sale of fish processed by the YOK defendants to companies in the United States and Canada. One company was located in Massachusetts, (later acquired by a Canadian company, High Liner Foods, Inc. (Canada)). High Liner Canada rebranded its corporate acquisition High Liner Foods (USA) and moved to Portsmouth. High Liner USA solicited fish from High Liner Canada, which procured the fish from international sellers, including the YOK defendants. The YOK defendants shipped the fish to High Liner USA in Massachusetts or Virginia. Upon High Liner USA’s acceptance of the fish, the YOK defendants invoiced High Liner USA and the invoice was paid by High Liner Canada, which then invoiced High Liner USA. After the written contract between Fortune Laurel and the YOK defendants expired, the YOK defendants continued to use Fortune Laurel to broker its sales with High Liner USA until 2017, when “the YOK defendants decided to exclude [Fortune Laurel] from the relationship.” Fortune Laurel claimed that the YOK defendants failed to pay commissions in 2017, improperly caused High Liner Canada to revoke its access to High Liner’s online tracking system, sold it fish for resale in Massachusetts that failed to meet applicable standards, and made fraudulent insurance claims that have negatively affected its business. Fortune Laurel also filed a petition for an ex parte attachment of funds that High Liner USA owed YOK as payment for shipments. The trial court found that several of Fortune Laurel’s claims were “wholly unrelated” to New Hampshire and thus that “dismissal for lack of personal jurisdiction was appropriate.” Nonetheless, the trial court ruled that it could continue to exercise quasi in rem jurisdiction over the attached funds. The New Hampshire Supreme Court affirmed because the trial court’s limited exercise of jurisdiction over the attached funds comported with due process requirements.