Opinion ID: 815021
Heading Depth: 2
Heading Rank: 4

Heading: International Seeks Declaratory Judgment

Text: In December 2009, Delta sued International in Texas state court for breaching the VSA, including for failing to timely remit multiple charter payments. The VSA’s forum selection clause mandates the parties resolve their dispute in the United States District Court for the Eastern District of Louisiana. Therefore, International filed the instant suit, seeking a declaratory judgment that it had not breached the VSA and that the LD Provision was an unenforceable penalty as a matter of law. Delta counterclaimed for breach of contract, seeking enforcement of the LD Provision. Judge McNamara was assigned to the case. The parties engaged in discovery, including conducting depositions. On March 11, 2011, in a detailed and well-reasoned Order and Reasons,2 Judge McNamara granted Delta’s motion for summary judgment in part and denied International’s motion, finding the LD Provision was enforceable. The McNamara Order declined to resolve the issue of damages. Subsequently, Judge McNamara retired, and the case was reassigned to Judge Fallon. International then filed a Motion to Vacate pursuant to Federal Rule of Civil Procedure 60(b) and a Motion to Reconsider based on additional testimony obtained from Delta’s former damages expert and Chief Operating Officer, Barry Matherne, who had left Delta since his previous deposition. On February 13, 2012, the district court denied International’s motion in its entirety and reaffirmed that the LD Provision was enforceable.3 The Fallon Order specifically declined to revisit the merits of the McNamara Order, and instead focused on whether the new 2 Hereinafter, we will refer to this order as the “McNamara Order.” 3 Hereinafter, we will refer to this order as the “Fallon Order.” 5 Case: 12-30280 Document: 00512105709 Page: 6 Date Filed: 01/08/2013 No. 12-30280 Matherne deposition changed the analysis as to whether the LD Provision was enforceable. The Fallon Order concluded that it did not. International then moved for Judge Fallon to certify the judgment as final or for interlocutory appeal. On March 16, 2012, Judge Fallon certified the Fallon Order as a final judgment pursuant to Federal Rule of Civil Procedure 54(b). International timely appealed.3