Sociedad Concesionaria Metropolitana de Salud S.A. v. Webuild S.P.A
CourtCourt of Appeals for the Third Circuit
Date FiledMay 18, 2026
Docket24-3005
StatusPublished
📰 News Coverage: Read the LAWS.com news report on this case
Full Opinion
PRECEDENTIAL
UNITED STATES COURT OF APPEALS
FOR THE THIRD CIRCUIT
______
No. 24-3005
______
SOCIEDAD CONCESIONARIA METROPOLITANA DE
SALUD S.A.,
Appellant
v.
WEBUILD S.P.A
______
On Appeal from the United States District Court
for the District of Delaware
(D.C. Civil No. 1:23-cv-01175)
Chief District Judge: Honorable Colm F. Connolly
______
Argued October 1, 2025
Before: SHWARTZ, MATEY, and FISHER, Circuit Judges.
(Filed: May 18, 2026)
Miguel A. Estrada ARGUED
Gibson Dunn & Crutcher
1700 M Street NW
Suite 900
Washington, DC 20036
Alexandra Ewing
Travis S. Hunter
Richards Layton & Finger
920 N King Street
One Rodney Square
Wilmington, DE 19801
Rahim Moloo
Jason W. Myatt
Gibson Dunn & Crutcher
200 Park Avenue
47th Floor
New York, NY 10166
Counsel for Appellant
Joshua D. Anders
Andreas A. Frischknecht ARGUED
James M. Hosking
Chaffetz Lindsey
1700 Broadway, 33rd Floor
New York, NY 10019
Henry E. Gallagher, Jr.
Alan R. Silverstein
Connolly Gallagher
1201 N Market Street, 20th Floor
Wilmington, DE 19801
Counsel for Appellee
2
______
OPINION OF THE COURT
______
FISHER, Circuit Judge.
In this action brought to confirm, recognize, and enforce
a foreign arbitral award, Sociedad Concesionaria
Metropolitana de Salud S.A. (“SCMS”) attempts to invoke
quasi in rem jurisdiction over property that belongs to an
arbitral-award debtor’s alleged successor in interest. Finding
insufficient contacts between the forum, the successor in
interest, and the underlying controversy, the District Court
found no basis to exercise personal jurisdiction1 and dismissed
SCMS’s petition. SCMS appeals. Because we agree with
SCMS that Shaffer v. Heitner, 433 U.S. 186, 210 n.36 (1977),
authorizes the exercise of traditional quasi in rem jurisdiction
in an action to collect on an already adjudicated liability, we
will vacate and remand.
I.
A.
In 2014, the Chilean Ministry of Public Works awarded
a contract to Astaldi Concessioni S.R.L. to design, construct,
and operate a new hospital project in Santiago, Chile. Later that
year, Astaldi Concessioni S.R.L. assigned the contract to
1
In the modern context, “[j]urisdiction in personam, in
rem, and quasi in rem” are all understood as “forms of personal
jurisdiction.” Restatement (Fourth) of the Foreign Relations
Law of the United States § 422 cmt. a (Am. Law Inst. 2018).
We follow the modern convention and, where necessary, refer
specifically to each historically distinct form.
3
SCMS, a stand-alone Chilean company. In turn, SCMS
contracted with Astaldi Sucursal Chile, the Chilean branch of
Astaldi, S.p.A., an Italian company (together, “Astaldi”), who
assumed SCMS’s design and construction obligations. SCMS
and Astaldi agreed to resolve any dispute in an arbitration
proceeding before the Santiago Center for Arbitration and
Mediation.
In September 2018, while the hospital project was under
construction, Astaldi commenced in Italy a “Concordato”
proceeding—a restructuring process akin to a proceeding
commenced under Chapter 11 of the United States Bankruptcy
Code—that restricted Astaldi’s paying of certain debts. SCMS
determined that Astaldi could not timely complete the project,
and in January 2019, SCMS terminated the contract. An
arbitration ensued in Chile, which resulted in an award in favor
of SCMS and against Astaldi.
During the arbitration proceeding, Astaldi completed
the restructuring process by “spinning off” its operating
business and merging into Webuild S.p.A., an Italian
multinational construction company. Under the proposed
“spin-off” transaction: (1) Astaldi would continue certain
business activities, including construction and infrastructure
projects; (2) Astaldi would liquidate some assets and issue new
shares to satisfy unsecured creditors; and (3) Webuild would
infuse 225 million Euros of capital to compensate Astaldi’s
preferential creditors in exchange for majority control and
ownership of Astaldi. A majority of Astaldi’s creditors
approved the proposal, and an Italian court approved the
restructuring plan in July 2020. On August 1, 2021, Webuild
acquired the majority of Astaldi’s business (namely, the
“building, infrastructure construction, . . . the study, design,
transportation, maintenance, facility management and
operation of complex systems”), App. 291, which purportedly
4
included the “assets and liabilities” of several projects,
including the Santiago hospital project, App. 284.
Under this agreement, “Astaldi’s business” would
“continue as a going concern,” while “integrate[d] . . . within
Webuild,” App. 279, and Astaldi’s “remaining assets” would
“continue their activities . . . for the exclusive benefit of”
Astaldi’s shareholders, App. 802. In other words, Astaldi,
which is presently known as Astaris S.p.A., intended to
liquidate and “wind down” each asset that was not acquired by
Webuild.
In January 2022, Astaldi petitioned the Chilean Court of
Appeals to set aside or modify the arbitral award. Finding that
the arbitrator failed to apply a limitation of liability provision
in the contract between SCMS and Astaldi, the Chilean Court
of Appeals reduced the amount of damages but otherwise
affirmed Astaldi’s obligations under the award. Astaldi
appealed to the Chilean Supreme Court, which held that the
Chilean Court of Appeals’ decision was not subject to
challenge and that Astaldi’s appeal is “inadmissible.” App.
205.
In the United States District Court for the District of
Delaware, SCMS brought this action against Webuild to
confirm, recognize, and enforce the final arbitral award under
9 U.S.C. § 207, the Federal Arbitration Act (“FAA”), which
implements in the United States the Convention on the
Recognition and Enforcement of Foreign Arbitral Awards,
June 10, 1958, 21 U.S.T. 2517 (“New York Convention”).
Trying to collect the arbitral award and alleging that Webuild
is Astaldi’s successor in interest, SCMS attempted to invoke
the District Court’s quasi in rem jurisdiction over Webuild’s
shares in Webuild US Holdings, Inc., a Delaware-based and
wholly owned subsidiary of Webuild.
Webuild moved to dismiss SCMS’s petition for lack of
5
personal jurisdiction. Specifically, Webuild argued that Shaffer
extends the minimum-contacts test of International Shoe Co.
v. Washington, 326 U.S. 310, 322 (1945), to quasi in rem
actions and that SCMS failed to establish minimum contacts
between Delaware, the underlying breach-of-contract action,
and Webuild US—who was a party to neither the arbitration
nor the underlying contract. In response, SCMS argued that
Shaffer’s thirty-sixth footnote expressly permits a court’s
exercising quasi in rem jurisdiction in an action to collect on
an already adjudicated liability. Shaffer’s thirty-sixth footnote
states:
Once it has been determined by a court of
competent jurisdiction that the defendant is a
debtor of the plaintiff, there would seem to be no
unfairness in allowing an action to realize on that
debt in a State where the defendant has property,
whether or not that State would have jurisdiction
to determine the existence of the debt as an
original matter.
Shaffer, 433 U.S. at 210 n.36.
Finding no basis for personal jurisdiction, the District
Court granted Webuild’s motion and dismissed SCMS’s
petition. Sociedad Concesionaria Metropolitana de Salud S.A.
v. Webuild S.p.A, No. CV 23-1175-CFC, 2024 WL 4333144,
at *2 (D. Del. Sept. 27, 2024). First, the District Court held that
Shaffer and its progeny categorically “preclude[] a court from
exercising jurisdiction over a nonresident defendant based
solely on the presence of property in the court’s state that is
unrelated to the action.” Id. Finding that SCMS failed to allege
a relation between Webuild US and the Chilean arbitration, the
District Court found insufficient contacts to support the
exercise of quasi in rem jurisdiction. Id. at *1–2. Second, the
6
District Court alternatively held that, even if SCMS’s
interpretation of Shaffer’s thirty-sixth footnote is correct, the
“exception” to Shaffer’s general rule does not apply to this
action because SCMS did not ask the District Court to
recognize a court of competent jurisdiction’s determination
that Webuild (as opposed to Astaldi) is SCMS’s debtor. Id. at
*2. SCMS appeals each holding.
II.
The District Court exercised subject matter jurisdiction
under 9 U.S.C. § 203 and under 28 U.S.C. § 1331. We exercise
subject matter jurisdiction under 28 U.S.C. § 1291. “We review
the District Court’s dismissal for lack of personal jurisdiction
de novo.” Danziger & De Llano, LLP v. Morgan Verkamp
LLC, 948 F.3d 124, 129 (3d Cir. 2020). Because the District
Court did not conduct an evidentiary hearing, SCMS’s
jurisdictional facts are accepted as true, and SCMS “need only
establish a prima facie case of personal jurisdiction.” See, e.g.
Metcalf v. Renaissance Marine, Inc., 566 F.3d 324, 330 (3d
Cir. 2009) (internal quotation marks omitted).
III.
On appeal, SCMS challenges the District Court’s
primary and alternative holdings. With respect to the primary
holding—that no basis for personal jurisdiction exists—SCMS
contends that, under Shaffer’s thirty-sixth footnote, no
minimum contacts are required for a court to exercise quasi in
rem jurisdiction in an action to collect on an already
7
adjudicated debt.2 Therefore, the question is whether, in an
action to collect on an already adjudicated debt, the mere
presence of a debtor’s property within a forum state establishes
a constitutional basis for which to exercise quasi in rem
jurisdiction.
A.
Personal jurisdiction is a court’s authority to assert
coercive power over a defendant. Historically, personal
jurisdiction fell into one of three categories: one directs power
over persons—in personam jurisdiction—and the other two
direct power over interests in specific property—in rem and
quasi in rem jurisdiction. Shaffer, 433 U.S. at 199; see also
Hanson v. Denckla, 357 U.S. 235, 246 n.12 (1958). Each of
these characterizations is a vestige of a time in which personal
jurisdiction depended on territorial power: if a defendant’s
person or property was located within a state’s geographic
boundaries, a state court could exercise jurisdiction. Id.
(“[U]nder Pennoyer[,] state authority to adjudicate was based
on the jurisdiction’s power over either persons or property.”);
Pennoyer v. Neff, 95 U.S. 714, 722 (1877) (explaining that
personal jurisdiction rests on two “principles of public law”:
(1) “every State possesses exclusive jurisdiction and
sovereignty over persons and property within its territory,” and
(2) “no State can exercise direct jurisdiction and authority over
persons or property without its territory,” i.e., “no tribunal
established by [a state] can extend its process beyond that
2
In the alternative, SCMS contends that, even if Shaffer
requires minimum contacts, the District Court misapplied the
test. Because we agree with SCMS that Shaffer’s thirty-sixth
footnote permits the exercise of quasi in rem jurisdiction to
confirm and enforce a foreign arbitral award, we do not address
SCMS’s alternative argument.
8
territory so as to subject either persons or property to its
decisions”).
Each of the three categories describes the way in which
a court may affect the interests or rights of a defendant. For
example, an in personam judgment “impose[s] a personal
obligation on the defendant in favor of the plaintiff.” Shaffer,
433 U.S. at 199. On the other hand, the effect of an in rem or
quasi in rem judgment is “limited to the property that supports
jurisdiction and does not impose a personal liability on the
property owner, since he is not before the court.” Id.
Accordingly, a defendant’s liability and a plaintiff’s possibility
of recovery are greater if a court exercises in personam
jurisdiction over a defendant.3
3
Modern-day personal jurisdiction is largely occupied
by the principles of specific and general jurisdiction, which
define the type of causes of action for which a particular
defendant is liable. Specific jurisdiction permits a state court to
adjudicate specific claims against a defendant. If the defendant
“purposefully avails itself of the privilege of conducting
activities within the forum State,” Hanson v. Denckla, 357 U.S.
235, 253 (1958), the State’s courts may adjudicate claims that
“‘arise out of or relate to the defendant’s contacts’ with the
forum,” Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct., 592
U.S. 351, 362 (2021) (emphasis omitted) (quoting Bristol-
Myers Squibb Co. v. Superior Ct. of Cal., 582 U.S. 255, 262
(2017)).
9
Also, an in personam judgment provides a winning
party with the possibility of interstate enforcement. An in
personam judgment rendered in any state of the United States
is entitled to full faith and credit in the courts of every sister
state.4 As the Supreme Court explained, “a debtor can[not]
avoid paying his obligations by removing his property to a
State in which his creditor cannot obtain personal jurisdiction
over him. The Full Faith and Credit Clause, after all, makes the
valid in personam judgment of one State enforceable in other
States.” Shaffer, 433 U.S. at 210.
Quasi in rem jurisdiction comes in two types. Type I is
used to determine the ownership of disputed property between
two or more defined parties. Restatement (Second) of
Judgments § 6 cmt. a (Am. Law Inst. 1982). Quasi in rem
General jurisdiction, by contrast, allows a state court to
adjudicate “‘any and all claims’ brought against a defendant.”
Ford Motor, 592 U.S. at 358 (quoting Goodyear Dunlop Tires
Operations, S.A. v. Brown, 564 U.S. 915, 919 (2011)). This
sweeping authority exists only when the defendant is “at
home” in the State. Ford Motor, 592 U.S. at 358 (quoting
Goodyear, 564 U.S. at 919). An individual is usually “at home”
in his domicile, Goodyear, 564 U.S. at 924, and a corporation
is usually “at home” in both its place of incorporation and
principal place of business, Daimler AG v. Bauman, 571 U.S.
117, 137 (2014). Absent an exceptional circumstance, general
jurisdiction is limited to these locations. Id. at 139 n.19.
4
Under the Full Faith and Credit Clause, U.S. Const.
Art. IV., § 1, and its implementing statute, 28 U.S.C. § 1738,
“that which has been adjudicated in one state [is] res judicata
to the same extent in every other.” Lynne Carol Fashions, Inc.
v. Cranston Print Works Co., 453 F.2d 1177, 1184 (3d Cir.
1972) (citations omitted).
10
type I is most often used in “actions to partition land, quiet title,
or foreclose mortgages.” Linda J. Silberman, Shaffer v.
Heitner: The End of an Era, 53 N.Y.U. L. Rev. 33, 39 (1978).
Also, Quasi in rem type I is distinct from in rem jurisdiction
because in rem jurisdiction determines ownership of property
as against the entire world, but a quasi in rem judgment applies
only to defined parties. Shaffer, 433 U.S. at 199 n.17 (citations
omitted). Quasi in rem type II, the form of jurisdiction SCMS
attempts to invoke here, involves the use of property not to
determine ownership but to serve as the basis for litigation of
some other dispute between the parties. Silberman, 53 N.Y.U.
L. Rev. at 39; Restatement (Second) of Judgments § 8(1)(d)
(Am. Law Inst. 1982). Under type II, the plaintiff concedes the
defendant’s ownership of the attached property and uses that
ownership as the basis for invoking jurisdiction. Shaffer, 433
U.S. at 199 n.17 (citations omitted).
In practice, quasi in rem jurisdiction type II, more
commonly known as attachment jurisdiction, greatly expanded
the reach of personal jurisdiction. Under this category, a court
can exercise jurisdiction over a designated property and can
render a judgment that affects only those interests of particular
individuals in that property. Id. As relevant here, attachment
jurisdiction is invoked to collect from the owner of the property
a debt based on a judgment rendered in a forum where that
owner was subject to personal jurisdiction. Id.; see also CME
Media Enters. B.V. v. Zelenzy, No. 01 Civ. 1733 (DC), 2001
WL 1035138, at *3 (S.D.N.Y. Sept. 10, 2001) (“[Q]uasi in rem
jurisdiction is used to attach property to collect a debt based on
a claim already adjudicated in a forum where there was
personal jurisdiction over the defendant.”). However, unlike an
in personam judgment, “[t]he effect of a judgment in [an
attachment jurisdiction] case is limited to the property that
supports jurisdiction[;] . . . [the judgment] does not impose a
11
personal liability on the property owner, since he is not before
the court.” Shaffer, 433 U.S at 199.
Thus, historically, quasi in rem jurisdiction served both
as a practical complement to in personam judgments and as a
substitute for in personam jurisdiction. For most of our
nation’s history, attachment jurisdiction allowed a creditor to
adjudicate a claim against a fleeing debtor by attaching the
property the debtor left behind. Michael B. Mushlin, The New
Quasi in Rem Jurisdiction: New York’s Revival of a Doctrine
Whose Time Has Passed, 55 Brook. L. Rev. 1059, 1066–67
(1990). Attachment jurisdiction provided to a creditor both a
forum in which to adjudicate his claims against a debtor and a
means with which to satisfy any resulting judgment. Id. For a
time, attachment jurisdiction was considered “indispensable.”
Robert Wyness Millar, Civil Procedure Of The Trial Court In
Historical Perspective 481 (1952).5 Considering that “huge
sections of the continent were underdeveloped, and
transportation and communication among its far flung parts
remained primitive,” without attachment jurisdiction, a
creditor would rarely have occasion to collect on a fleeing
debtor’s debt. Mushlin, 55. Brook. L. Rev. at 1067.
5
Professor Millar noted that, prior to Shaffer,
attachment jurisdiction “blossomed and flourished, to become
an almost indispensable constituent of our procedural
systems.” Id. See also Charles D. Drake, A Treatise On The
Law of Suits By Attachment In The United States 37 (7th ed.
1891) (quoting Pyrolusite M. Co. v. Ward, 73 Ga. 481, 492
(1884), for the proposition that “[n]o one ever dreamed that the
attachment laws of the several States authorizing attachments
against non-resident defendants, were violative of the
Constitution of the United States. Argument is unnecessary.”).
12
B.
As technology advanced and the New World became
smaller, Pennoyer’s framework began to fade. In response to
the ever-increasing situations where a defendant caused injury
in a state where in personam jurisdiction was lacking under
Pennoyer, the Court modified the territorial limits on
jurisdiction. See Shaffer, 433 U.S. at 202 (discussing the
evolution of personal jurisdiction under Pennoyer). Because
these modifications produced inefficient processes that
“absorbed much judicial energy,” id., the Court drastically
shifted the focus of in personam jurisdiction from a court’s
territorial power over a person to the person’s contacts with the
forum state, Int’l Shoe Co., 326 U.S. 310 at 316 (“[D]ue
process requires only . . . that the maintenance of the suit does
not offend traditional notions of fair play and substantial
justice.”) (internal citation and quotation marks omitted). With
respect to in personam jurisdiction, International Shoe
abandoned Pennoyer’s concern for states’ mutually exclusive
sovereignty and mandated an inquiry into “the relationship
among the defendant, the forum, and the litigation.” Shaffer,
433 U.S. at 204.
However, in the three decades after International Shoe,
“[n]o equally dramatic change . . . occurred in the law
governing jurisdiction in rem [or quasi in rem].” Id. at 205.
Despite International Shoe’s abrogation of Pennoyer with
respect to in personam jurisdiction, the traditional basis for
quasi in rem jurisdiction, including attachment jurisdiction,
persisted. Then came Shaffer. In that case, the Supreme Court
extended International Shoe to all forms of personal
jurisdiction, holding that an in rem action is consistent with the
constitutional limits of due process only if the attached
property is the subject of, or related to, the litigation. Id. at 212.
In Shaffer, Heitner, a shareholder of the Greyhound
13
Corporation, brought a derivative suit in Delaware against
Shaffer and other members of the Greyhound board of
directors. Id. at 189–90. According to Heitner, the board’s
unlawful actions subjected Greyhound to liability in a separate
antitrust suit. Id. at 190. The alleged violations, however,
occurred in Oregon, and none of the directors resided in
Delaware. Id. 190–91. The directors were haled into Delaware
court based on their ownership of stock and stock options that,
according to Delaware law, were deemed present in Delaware.
Id. at 191–94. But, as the Court noted, the “property [was] not
the subject . . . of th[e] litigation, nor [was] the underlying
cause of action related to the property.” Id. at 213. Indeed, the
property was “completely unrelated to [the] cause of action . .
. . [T]he only role played by the property [was] to provide a
basis for bringing the defendant into court.” Id. at 209.
Concerned that the persistence of traditional in rem and
quasi in rem jurisdiction undermined the theoretical basis of
International Shoe, the Shaffer Court held: “if a direct assertion
of personal jurisdiction over [a] defendant would violate the
Constitution . . . an indirect assertion of that jurisdiction should
be equally impermissible.” Id. Heitner could not have brought
in Delaware an in personam action against the defendants
because the alleged conduct did not relate to Delaware or to the
defendants’ stock ownership. To permit the exercise of quasi
in rem jurisdiction absent minimum contacts would circumvent
the reasoning of International Shoe; as Shaffer observes, “[t]he
phrase, ‘judicial jurisdiction over a thing’, is a[n] . . . elliptical
way of referring to jurisdiction over the interest of persons in a
thing.” Id. at 207 (quoting Restatement (Second) of Conflict of
Laws § 56, Introductory Note (1971)).
Thus, when “the basis for . . . jurisdiction is completely
unrelated to the plaintiff’s cause of action,” the mere presence
of property within a particular state does not, by itself, support
14
jurisdiction. Id. at 209. “The standard for determining whether
an exercise of jurisdiction over the interests of persons is
consistent with the Due Process Clause is the minimum-
contacts standard elucidated in International Shoe.” Id. at 207.
Therefore, in the context of a plenary action, Shaffer
unequivocally holds that “fair play and substantial justice”
requires a sufficient relation between the property, the cause of
action, and the forum. Id. at 211–12.
C.
Despite Shaffer’s seemingly broad and unequivocal
language, SCMS contends that Shaffer merely “introduce[s] a
narrow constitutional limit” on traditional quasi in rem
jurisdiction. Appellant’s Br. 21. SCMS argues that “Shaffer
extended International Shoe’s minimum-contacts test to
plenary actions that determine a defendant’s initial liability
. . . , but it left property-based jurisdiction in place for
summary proceedings to enforce a previously adjudicated
liability.” Id. at 23. Specifically, SCMS identifies Shaffer’s
thirty-sixth footnote as creating this exception. Webuild
responds that Shaffer establishes “a categorical rule that a
court’s exercise of quasi in rem jurisdiction is governed by the
same, well-established ‘minimum contacts’ standard as in
personam jurisdiction.” Appellee’s Br. 16. As to Shaffer’s
thirty-sixth footnote, Webuild argues that no “court of
competent jurisdiction” has determined that Webuild is liable
for Astaldi’s debt to SCMS. Appellee’s Br. at 16 (quoting
Shaffer, 433 U.S. at 210 n.36).
Although this is a question of first impression in this
15
Court,6 a few of our sister Circuits have considered the effect
of Shaffer’s thirty-sixth footnote, albeit without much
explanation. The Ninth Circuit has invoked the footnote’s
reasoning and determined that a district court can exercise
attachment jurisdiction in a post-judgment action without
regard to minimum contacts. Glencore Grain Rotterdam B.V.
v. Shivnath Rai Harnarain Co., 284 F.3d 1114, 1127 (9th Cir.
2002) (recognizing that “[c]onsiderable authority supports [the
petitioner’s] position that it can enforce the award against [the
arbitral award debtor’s] property in the forum even if the
property has no relationship to the underlying controversy
between parties”); Office Depot Inc. v. Zuccarini, 596 F.3d
696, 700 (9th Cir. 2010) (“In an action to execute on a
judgment, due process concerns are satisfied, assuming proper
notice, by the previous rendering of a judgment by a court of
competent jurisdiction.”); Cerner Middle E. Ltd. v. iCapital,
LLC, 939 F.3d 1016, 1022 (9th Cir. 2019) (holding that a
district court may exercise quasi in rem jurisdiction when “(1)
a court of competent jurisdiction rendered a judgment against
[the defendant], and (2) [the defendant] owns property in the
forum state”).
Similarly, the Second Circuit has endorsed the view that
Shaffer permits a court to exercise attachment jurisdiction to
confirm and enforce a foreign arbitral award. See Frontera Res.
Azerbaijan Corp. v. State Oil Co. of Azerbaijan Republic, 582
F.3d 393, 398 (2d Cir. 2009) (holding that the district court did
6
See Base Metal Trading Ltd. v. OJSC “Novokuznetsky
Aluminum Factory”, 47 F. App’x 73, 77–78 (3d Cir. 2002)
(declining to decide whether the mere presence of an award
debtor’s property in a forum-state is “a sufficient and
independent basis of jurisdiction” in “a proceeding to confirm
and enforce a foreign arbitration award”).
16
not err by requiring jurisdiction over the defendant’s person or
property to enforce a foreign arbitral award). We agree with
our sister Circuits. As explained below, Shaffer’s text
expressly contemplates the continued existence of attachment
jurisdiction in a post-judgment setting and that logic extends
beyond enforcing a sister state’s judgment under full faith and
credit to the enforcement of foreign judgments and foreign
arbitral awards under the New York Convention.
First, Shaffer expressly acknowledged that the Due
Process clause’s fairness requirement is less stringent in an
action to collect an already rendered judgment. Shaffer’s thirty-
sixth footnote provides the Supreme Court’s imprimatur of the
practical relationship between in personam and attachment
jurisdiction in post-judgment actions:
Once it has been determined by a court of
competent jurisdiction that the defendant is a
debtor of the plaintiff, there would seem to be no
unfairness in allowing an action to realize on that
debt in a State where the defendant has property,
whether or not that State would have jurisdiction
to determine the existence of the debt as an
original matter.
Shaffer, 433 U.S. at 210 n.36. Contemplating the enforcement
of a sister state’s judgment under the Full Faith and Credit
Clause, Shaffer’s thirty-sixth footnote embraces a rear-view
mirror approach to personal jurisdiction: if the rendering court
in one state properly exercised personal jurisdiction over the
defendant, a court in a sister state may exercise traditional
attachment jurisdiction to enforce the judgment. See Kulko v.
Superior Court, 436 U.S. 84, 95 (1978) (holding that, although
California’s assertion of personal jurisdiction over a New York
resident was unreasonable, “a New York court would clearly
17
have personal jurisdiction over [the defendant] and, if a
judgment were entered by a New York court . . . , it could
properly be enforced against him in both New York and
California”). Thus, even after Shaffer, attachment jurisdiction
persists as a complement to the enforcement of an in personam
judgment.
Resisting this conclusion, Webuild characterizes
Shaffer’s thirty-sixth footnote as “classic dicta” and argues that
neither this Court nor the Supreme Court has adopted SCMS’s
interpretation of Shaffer. Appellee’s. Br. 29. To support its
argument, Webuild invokes two cases—Rush v. Savchuk, 444
U.S. 320 (1980), and Nehemiah v. Athletics Cong. of U.S., 765
F.2d 42 (3d Cir. 1985)—each of which the District Court cited
below. Both are inapposite.
In Rush, the plaintiff brought a negligence action in
Minnesota against a non-resident defendant who injured the
plaintiff in an automobile accident that occurred in Indiana.
444 U.S. at 322. Although the defendant had no contact with
Minnesota, the defendant’s insurer conducted business in
Minnesota. Id. The plaintiff attempted to invoke the Minnesota
court’s quasi in rem jurisdiction over the defendant by
attaching the defendant’s insurance provider’s obligation to
defend and indemnify the defendant. Id. Invoking Shaffer,
Rush acknowledged that “the mere presence of property in a
State does not establish a sufficient relationship between the
owner of the property and the State to support the exercise of
jurisdiction over an unrelated action.” Id. at 328. Because,
among other reasons, the insurance policy was neither the
subject matter of the cause of action nor related to the
defendant’s negligence, the Rush Court determined that no
sufficient contacts existed between the litigation and the forum
state. Id. at 329.
Like the District Court below, Webuild reads Rush to
18
affirm that Shaffer requires minimum contacts for all quasi in
rem actions. But Rush merely interpreted Shaffer to say that a
defendant’s in-state property alone cannot “support the
exercise of jurisdiction over an unrelated cause of action.” Id.
at 328. Rather unremarkably, Rush does nothing more than
describe—and certainly does not expand—Shaffer’s basic
premise: in a plenary action brought quasi in rem to adjudicate
a liability unrelated to the in-forum property, minimum
contacts are required. Rush does not mention, much less
abrogate, Shaffer’s thirty-sixth footnote, which addresses the
jurisdictional requirements in a post-judgment action.
Similarly, Webuild invokes Nehemiah, which holds that
“the minimum contacts test [must] be used to evaluate the
existence of all claims of in rem jurisdiction.” 765 F.2d at 47.
In that case, we held that Shaffer’s “sweeping language”—that
“‘all assertions of state court jurisdiction must be evaluated
according to the standards set forth in International Shoe and
its progeny,’” id. (quoting Shaffer, 433 U.S. at 212)—rendered
unconstitutional the practice of so-called tag jurisdiction,
which establishes jurisdiction over a non-resident defendant
through in-state service, id. As SCMS notes, the Supreme
Court abrogated our holding in Nehemiah and upheld the
practice of tag jurisdiction. Burnham v. Superior Ct. of Cal.,
495 U.S. 604, 615 (1990) (plurality); see also Senju Pharm.
Co., Ltd. v. Metrics, Inc., 96 F.Supp.3d 428, 439 (D.N.J. 2015)
(recognizing that Nehemiah “was cited by the Supreme Court
in Burnham as one of the few opinions that have ‘erroneously’
found the practice of in-state service of process
unconstitutional.” (quoting Burnham, 495 U.S. at 615)). Like
Rush, Nehemiah did not involve an action brought to collect an
already rendered judgment and did not discuss Shaffer’s thirty-
sixth footnote.
In any event, the Supreme Court has cautioned litigants
19
and lower courts against “(mis)reading Shaffer as suggesting
that International Shoe discarded every traditional method for
securing personal jurisdiction that came before.” Mallory v.
Norfolk S. Ry. Co., 600 U.S. 122, 141 (2023) (plurality)
(upholding without regard to minimum contacts personal
jurisdiction over a non-resident defendant corporation that
consented to a state’s general jurisdiction as a condition of
conducting business within the state); see also Burnham, 495
U.S. at 622 (upholding without regard to minimum contacts tag
jurisdiction). After all, the crux of both International Shoe and
Shaffer is that due process requires compliance with
“traditional notions of fair play and substantial justice.” Int’l
Shoe, 326 U.S. at 316 (quoting Milliken v. Meyer, 311 U.S.
457, 463 (1940)). And according to Shaffer’s thirty-sixth
footnote, “there would seem to be no unfairness in allowing an
action to realize on [an adjudicated] debt in a State where the
defendant has property, whether or not that State would have
jurisdiction to determine the existence of the debt as an original
matter.” 433 U.S. at 210 n.36 (emphasis added).
Shaffer condemned “[t]he fiction that an assertion of
jurisdiction over property is anything but an assertion of
jurisdiction over the owner.” Id. at 212. In other words, Shaffer
recognized that in a plenary action, “quasi in rem jurisdiction,
that fictional ‘ancient form,’ and in personam jurisdiction, are
really one and the same and must be treated alike.” Burnham,
495 U.S. at 621 (discussing the holding of Shaffer). But that is
only where quasi in rem jurisdiction is invoked as a substitute,
“i.e., [as] that form of in personam jurisdiction based upon a
‘property ownership’ contact.” Id.
In a post-judgment action, attachment jurisdiction is
invoked merely to enforce an already adjudicated debt. The
exercise of this kind of jurisdiction, like the nature of the cause
of action, is fundamentally different than the exercise of in
20
personam jurisdiction in a plenary action. See Titus v. Wallick,
306 U.S. 282, 291 (1939) (holding that, because the out-of-
state judgment, rather than the underlying cause of action, is
the basis on which the judgment is sought, “the constitutional
mandate requires credit to be given to a money judgment
rendered on a civil cause of action in another state, even though
the forum would have been under no duty to entertain the suit
on which the judgment was founded”). Because the underlying
cause of action merges into a judgment, a new and limited
cause of action to collect on the judgment is created.
Consequently, no justification exists to impose International
Shoe’s litigation-relatedness requirement on a post-judgment
proceeding. Shaffer’s thirty-sixth footnote recognizes this
commonsense exception and expressly preserves attachment
jurisdiction in this limited circumstance.
Although attachment jurisdiction persists as a
complement with which to enforce an in personam judgment,
enforcing a judgment is not necessarily automatic. Under the
Full Faith and Credit Clause, a court must recognize and
enforce a sister state’s judgment only if the sister state’s court
validly exercised personal jurisdiction over the parties. In other
words, an in personam judgment rendered by a court that
lacked personal jurisdiction is not entitled to another state’s full
faith and credit. See World-Wide Volkswagen Corp. v.
Woodson, 444 U.S. 286, 291 (1980) (“A judgment rendered in
violation of due process is void in the rendering State and is
not entitled to full faith and credit elsewhere.” (citing
Pennoyer, 95 U.S. at 732–33)). Otherwise, a valid in personam
judgment rendered by a sister state is subject only to the
21
enforcing state’s bona fide procedural rules.7 See Baker ex rel.
Thomas v. Gen. Motors Corp., 522 U.S. 222, 235 (1998) (“Full
faith and credit, however, does not mean that States must adopt
the practices of other States regarding the time, manner, and
mechanisms for enforcing judgments.”).
D.
The Full Faith and Credit Clause and its implementing
statute do not apply to foreign judgments or to foreign arbitral
awards. Aetna Life Ins. Co. v. Tremblay, 223 U.S. 185, 190
(1912) (“No such right, privilege, or immunity . . . is conferred
by the Constitution or by any statute of the United States in
respect to the judgments of foreign states or nations . . . .”);
McDonald v. City of West Branch, 466 U.S. 284, 288 (1984)
(“Arbitration is not a ‘judicial proceeding’ and, therefore, §
1738 does not apply to arbitration awards.”). However, a
similar mechanism exists for both foreign judgments and
foreign arbitral awards. For example, a court will credit a
7
Congress has provided for the interdistrict registration
of federal-court judgments for recovery of money or property.
28 U.S.C. § 1963 (upon registration, the judgment “shall have
the same effect as a judgment of the district court of the district
where registered and may be enforced in like manner”). A
similar interstate registration procedure has been adopted by
most states as a result of the widespread adoption of the
Uniform Enforcement of Foreign Judgments Act, 13 U.L.A.
149 (1964). Uniform Law Commission, Enactment History,
Enforcement of Foreign Judgments Act,
https://www.uniformlaws.org/committees/community-
home?communitykey=e70884d0-db03-414d-b19a-
f617bf3e25a3 [https://perma.cc/RN72-ZFDB] (last updated
Mar. 27, 2026).
22
foreign judgment to the extent that recognition comports with
judicial comity. See Hilton v. Guyot, 159 U.S. 113, 202–03
(1895).8
More than a century ago, the Supreme Court
recognized:
[Once] there has been opportunity for a full and
fair trial abroad before a court of competent
jurisdiction, conducting the trial upon regular
proceedings, after due citation or voluntary
appearance of the defendant, and under a system
of jurisprudence likely to secure an impartial
administration of justice between the citizens of
its own country and those of other countries, and
there is nothing to show either prejudice in the
court, or in the system of laws under which it was
sitting . . . or any other special reason why the
comity of this nation should not allow it full
effect, the merits of the case should not . . . be
tried afresh . . . .
Id. Guided by this principle, state legislatures across the United
States have enacted legislation to enable the recognition and
8
The Supreme Court has said that comity determines
“[t]he extent to which the law of one nation . . . shall be allowed
to operate within the dominion of another nation.” Hilton v.
Guyot, 159 U.S. 113, 163 (1895).
23
enforcement of foreign judgments.9 Although courts are “quite
liberal in their recognition and enforcement of foreign
judgments,” Ronald A. Brand, Recognition and Enforcement
of Foreign Judgments at 2 (Fed. Judicial Center April 2012),10
a defendant may challenge the recognition and enforcement of
a foreign judgment if the foreign court rendered the judgment
under conditions that fail to satisfy basic requirements of due
process, see, e.g., Uniform Foreign Money-Judgments
Recognition Act § 4(a)(1) (1962) (UFMJRA 1962); Uniform
Foreign-Country Money Judgments Recognition Act § 4(b)(1)
(2005) (UFMJRA 2005); Restatement (Third) Foreign
Relations Law § 482(1)(a) (1986).
As with a judgment rendered by a sister state, if the
rendering court lacked personal jurisdiction, the defendant may
challenge the enforcement of the judgment in the enforcing
court. UFMJRA 1962 § 4(a)(2); UFMJRA 2005 § 4(b)(2);
Restatement (Third) Foreign Relations Law § 482(1)(b). In
9
In 2005, the National Conference of Commissioners
on Uniform State Laws completed the 2005 Uniform Foreign-
Country Money Judgments Recognition Act, which is an
updated version of the 1962 Uniform Foreign-Money
Judgments Recognition Act. According to the Uniform Law
Commission, thirty-nine jurisdictions have adopted at least one
version. Uniform Law Commissioners, Enactment History,
Uniform Foreign-Country Money Judgments Recognition Act,
https://www.uniformlaws.org/committees/community-
home?communitykey=ae280c30-094a-4d8f-b722-
8dcd614a8f3e [https://perma.cc/82T6-4EVP] (last updated
Mar. 27, 2026).
10
Available at
https://www.fjc.gov/sites/default/files/2012/BrandEnforce.pdf
[https://perma.cc/PE58-HV75] (last visited Mar. 26, 2026).
24
other words, the enforcement of foreign judgments in the
United States complies with the constitutional requirements of
due process in the same way that domestic counterparts do. For
that reason, other courts have not limited the logic of Shaffer’s
thirty-sixth footnote to the enforcement of a sister state
judgment under full faith and credit; if a foreign court properly
exercised personal jurisdiction over a defendant, an enforcing
court can exercise attachment jurisdiction over a defendant’s
assets to enforce a foreign judgment. See, e.g., Pure Fishing,
Inc, v. Silver Star Co., 202 F. Supp. 2d 905, 912 & n.3 (N.D.
Iowa 2002) (holding that a court may recognize and enforce a
foreign judgment against a judgment-debtor’s property located
in the state in the same manner that it would a judgment of a
sister state); Electrolines, Inc. v. Prudential Assurance Co.,
677 N.W.2d 874, 885 (Mich. App. 2003) (same).11
11
Other jurisdictions have gone even further and held
that neither minimum contacts nor the presence of in-forum
assets is necessary for a court to confirm a foreign arbitral
award. Lenchyshyn v. Pelko Elec., Inc., 723 N.Y.S.2d 285, 286
(N.Y. App. Div. 2001) (holding that “the judgment debtor need
not be subject to personal jurisdiction in New York” and that
the Due Process Clause does not require “that the New York
Court have a jurisdictional basis for proceeding against [the]
judgment debtor”); Haaksman v. Diamond Offshore
(Bermuda), Ltd., 260 S.W.3d 476, 481 (Tex. App. 2008)
(holding that “even if a judgment debtor does not currently
have property in Texas, a judgment creditor should be allowed
the opportunity to obtain recognition of his foreign-money
judgment and later pursue enforcement if or when the
judgment debtor appears to be maintaining assets in Texas”).
25
E.
This begs the question: why should a court treat the
enforcement of foreign judgments differently than the
confirmation and enforcement of foreign arbitral awards? We
do not find a principled reason to do so. Both the logic and
spirit of Hilton and Shaffer’s thirty-sixth footnote extend to the
recognition and enforcement of a foreign arbitral award.12
First, the procedure to enforce a foreign arbitral award
guarantees the protection of an award debtor’s due process
rights. Of course, as mentioned above, arbitral awards are not
subject to the Full Faith and Credit Clause and its
implementing statute, which apply only to “judicial
proceedings.” See McDonald, 466 U.S. at 287 (citation
omitted). Because an “[a]rbitration is not a ‘judicial
proceeding’ . . . [,] § 1738 does not apply to arbitration
awards.” Id. at 288. And unlike a foreign or domestic
judgement, an arbitral award is not rendered by a judge.13
To the extent that these decisions hold that no
jurisdiction whatever is required to enforce a foreign
judgement (or arbitral award), they are constitutionally
suspect, and we do not endorse them. Neither the New York
Convention nor its implementing legislation removed the
district courts’ obligation to find personal jurisdiction over the
defendant or its property in suits brought to confirm and
enforce arbitral awards.
12
Because the controversy before us concerns only a
foreign arbitral award, nothing in this opinion should be
construed as necessarily applying to the enforcement of a
domestic arbitral award.
13
The Supreme Court has recognized at least one
difference between an arbitrator and a judge:
26
Notwithstanding this fact, arbitrators resolve disputes.
Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc., 473
U.S. 614, 626 (1985) (“By agreeing to arbitrate a . . . claim, a
party does not forgo . . . [its] substantive rights . . . ; it only
submits to their resolution in an arbitral, rather than a judicial,
forum.”). An arbitration can provide just as fair a procedure as
any judicial proceeding:
[S]hort of authorizing trial by battle or ordeal or,
more doubtfully, by panel of three monkeys,
parties can stipulate to whatever procedures they
want to govern the arbitration of their disputes;
parties are as free to specify idiosyncratic terms
of arbitration as they are to specify any other
terms in their contract.
Baravati v. Josephthal, Lyon & Ross, Inc., 28 F.3d 704, 709
(7th Cir. 1994). If the parties agree to the terms of an arbitral
clause, an arbitral award that results from arbitration is almost
certainly fair.
This fairness is guaranteed by procedure. First, a party
that agrees to arbitration consents to the jurisdiction of the
arbitral tribunal and, to the extent that an arbitral award debtor
[A]rbitrators cannot sever all their ties with the
business world, since they are not expected to get
all their income from their work deciding cases.
. . . [W]e should . . . be even more scrupulous to
safeguard the impartiality of arbitrators than
judges, since the former have completely free
rein to decide the law as well as the facts and are
not subject to appellate review.
Commonwealth Coatings Corp. v. Cont’l Cas. Co., 393 U.S.
145, 148–49 (1968).
27
resists recognition and enforcement to avoid confirmation, the
debtor may furnish proof of one of the five affirmative
defenses, including that the arbitration agreement is invalid
“under the law of the country where the award was made.”14
New York Convention, art. V(1)(a). As when a defendant
resists the enforcement of a foreign or domestic judgment, the
New York Convention and its implementing legislation ensure
that the arbitral award debtor’s due process rights are
protected.
Second, beyond adjudicating the narrow defenses
described above, a court that confirms and enforces a foreign
arbitral award has a very limited role. As with enforcement
actions brought under the Full Faith and Credit Clause,
petitions under the FAA to confirm foreign arbitral awards
result in “summary proceedings that do not require [a] district
court to carry on a formal judicial proceeding.” Jiangsu Beier
Decoration Materials Co. v. Angle World LLC, 52 F.4th 554,
560 (3d Cir. 2022) (internal citation omitted; alteration in
original). And “[b]y [requiring only] a truncated summary
proceeding, the FAA directs district courts to give their
imprimatur to arbitration awards by converting them into
enforceable judgments.” Teamsters Loc. 177 v. United Parcel
Serv., 966 F.3d 245, 255 (3d Cir. 2020).
Only a summary proceeding is required because, like a
judgment rendered by the court of a sister state, an
unconfirmed arbitral award is the source of a new cause of
action that is res judicata. Florasynth, Inc. v. Pickholz, 750
F.2d 171, 176 (2d Cir. 1984) (explaining that confirmation of
an award is “a summary proceeding that merely makes what is
14
A court may also reject a petition if recognition or
enforcement of the award would be contrary to domestic public
policy. New York Convention, art. V(2)(b).
28
already a final arbitration award a judgment of the court”);
Lynne Carol Fashions, Inc. v. Cranston Print Works, Co., 453
F.2d 1177, 1179 (3d Cir. 1972) (“[R]es judicata . . . operates to
destroy causes of action by merger or bar”). This preclusive
effect, although less forceful in this context, mirrors that of a
domestic judgment and illustrates why attachment jurisdiction
persists as a complement to, rather than a substitute for, in
personam jurisdiction. And the fact that SCMS brings this
proceeding to confirm and enforce a foreign arbitral award,
rather than to adjudicate the underlying merits, “rightly colors
our analysis.” Telcordia Tech Inc. v. Telkom SA Ltd., 458 F.3d
172, 178 (3d Cir. 2006).
Finally, through the adoption and implementation of the
New York Convention, Congress has unmistakably recognized
an “emphatic federal policy in favor of arbitral dispute
resolution” that applies “with special force in the field of
international commerce” and that endorses “the efficacy of
arbitral procedures for the resolution of international
commercial disputes.” Mitsubishi Motors, 473 U.S. at 631.
Like the Full Faith and Credit Clause and its implementing
statute that apply to the enforcement of a sister state judgment,
and like the several state laws that apply to the enforcement of
foreign judgments, the New York Convention imposes on
United States courts an obligation to “recognize arbitral awards
as binding and [to] enforce them.” New York Convention, art.
III; 9 U.S.C. § 201 (providing that foreign arbitral awards
rendered under the New York Convention “shall be enforced
in United States courts”). Congress has enacted for foreign
arbitral awards an enforcement scheme that closely resembles
the Full Faith and Credit Clause and to which the logic of
Shaffer’s thirty-sixth footnote comfortably extends.
Afterall, the concern that undergirds Shaffer’s thirty-
sixth footnote is that “a wrongdoer should not be able to avoid
29
payment of his obligations by the expedient of removing his
assets to a place where he is not subject to an in personam suit.”
Shaffer, 433 U.S. at 210 (internal quotation marks omitted).
This justification is no less relevant in permitting a court to
enforce a previously rendered foreign arbitral award as it is in
authorizing enforcement of a previously rendered judicial
judgment. Holding otherwise would allow arbitral debtors to
deliberately locate assets where courts would lack personal
jurisdiction over them—an outcome that does not comport
with “fair play” or “substantial justice.” Int’l Shoe, 326 U.S. at
316. Consequently, we join several other courts in holding that
the logic of Shaffer’s thirty-sixth footnote extends to an action
to confirm and enforce an arbitral award under the New York
Convention.15 See, e.g., Crescendo Mar. Co. v. Bank of
Commc’ns Co., No. 15 CIV. 4481 (JFK), 2016 WL 750351, at
*5 (S.D.N.Y. Feb. 22, 2016) (discussing Shaffer in the context
of confirming a foreign arbitral award and determining that
“[a]lthough the Shaffer Court was referring to the enforcement
of sister-state judgments under the Full Faith and Credit Clause
of the Constitution, the same reasoning applies here”); Swiss
Marine Servs. S.A. v. Louis Dreyfus Energy Servs. L.P., 598 F.
Supp. 2d 414, 420 n.5 (S.D.N.Y. 2008) (“This Court believes
that the Shaffer rational [as articulated in its thirty-sixth
footnote] would apply with equal force to the enforcement of
foreign arbitral awards.”). Without regard to minimum
contacts, a district court can exercise traditional attachment
jurisdiction to enforce a foreign arbitral award. See CME
Media Enters., 2001 WL 1035138, at *3 (“Minimum contacts
are not required because an arbitration panel with personal
jurisdiction over [the defendant] has already adjudicated [the
15
Indeed, counsel for Webuild essentially recognized as
much at oral argument. Oral Arg. Tr. At 20:8–16.
30
petitioner]’s claims against [the defendant] and determined that
he is a debtor of [the petitioner]; the purpose of the instant
proceeding is to collect on that debt.”). In other words, a court
can exercise attachment jurisdiction based on the mere
presence within the forum of an arbitral-award debtor’s
property, and the property does not need any relation to the
underlying cause of action.
IV.
Shaffer’s thirty-sixth footnote does not preclude the
District Court from determining whether Webuild is Astaldi’s
successor in interest (and thus, the arbitral award debtor). The
District Court, assuming that Shaffer’s thirty-sixth footnote
creates an exception permitting a court to exercise traditional
attachment jurisdiction in a post-judgment action, alternatively
held that “[b]ecause [SCMS] has not asked me to recognize, let
alone enforce, in this action a determination by a court of
competent jurisdiction that Webuild is its debtor . . . such an
exception would not apply here.” Sociedad, 2024 WL
4333144, at *2. But, as we have now held, Shaffer’s thirty-
sixth footnote applies to enforcement of foreign arbitral
awards, not just court judgments. And nothing in Shaffer’s
thirty-sixth footnote precludes the District Court from
determining whether Webuild assumed Astaldi’s obligation
under the award. SCMS brought this action and alleged that
Webuild is Astaldi’s successor in interest. In turn, Webuild
raised as an affirmative defense that the District Court lacked
personal jurisdiction. Once this defense is raised, the District
Court must first determine whether the defense is meritorious,
which includes considering evidence on the subject. United
States v. Ruiz, 536 U.S. 622, 628 (2002) (“[A] federal court
always has jurisdiction to determine its own jurisdiction.”). If
the District Court determines that Webuild is Astaldi’s
successor in interest, then a “court of competent jurisdiction”
31
will have determined that “the defendant is a debtor of the
plaintiff.” Shaffer, 433 U.S. at 210 n.36.
The District Court has both the power and the obligation
to determine whether Webuild is Astaldi’s successor in
interest. First, “federal courts have a ‘virtually unflagging
obligation’ to exercise jurisdiction” where it exists. Rarick v.
Federated Serv. Ins. Co., 852 F.3d 223, 227 (3d Cir. 2017)
(quoting Colo. River Water Conservation Dist. v. United
States, 424 U.S. 800, 817 (1976)). A court must determine
disputed jurisdictional facts, and this obligation extends as far
as “conduct[ing] a plenary trial on the contested facts,” if
necessary, “prior to making a jurisdictional determination.”
Schuchardt v. President of the U.S., 839 F.3d 336, 343 (3d Cir.
2016) (quoting Gould Elecs. v. United States, 220 F.3d 169,
177 (3d Cir. 2000)). Considering these principles together,
because the District Court’s jurisdiction depends on whether
Webuild is Astaldi’s successor in interest, the District Court
has the power and the obligation to decide this question,
regardless of how complex it may be.
Because the arbitrator already resolved the underlying
controversy—SCMS’s breach of contract claims against
Astaldi—the only question left for the District Court to
determine is whether Webuild is Astaldi’s successor in interest.
To the extent that Webuild characterizes this issue as a merits
question, it makes no difference. The obligation to determine
jurisdiction remains, even when the “merits and
jurisdiction . . . come intertwined.” Bolivarian Republic of
Venezuela v. Helmerich & Payne Int’l Drilling Co., 581 U.S.
170, 178 (2017). Successor jurisdiction applies in all
jurisdictional contexts, including to a case where jurisdiction
depends on minimum contacts and a case (like this one) where
minimum contacts are not required. In re Nazi Era Cases
Against German Defendants Litig., 153 F. App’x 819, 824 (3d
32
Cir. 2005) (minimum contacts); Patin v. Thoroughbred Power
Boats Inc., 294 F.3d 640, 649–55 (5th Cir. 2002) (waiver);
Bunge S.A. v. Pac. Gulf Shipping (Singapore) Pte. Ltd., No.
3:19-CV-00491-SB, 2020 WL 1528250, at *2 (D. Or. Mar. 31,
2020) (quasi in rem); cf. Transfield ER Cape Ltd. v. Indus.
Carriers, Inc., 571 F.3d 221, 224 (2d Cir. 2009) (“general alter
ego principles . . . in the context of maritime attachments”);
NYKCool A.B. v. Pac. Int’l Servs., Inc., No. 12 CIV. 5754 LAK
AJP, 2013 WL 6799973, at *10 (S.D.N.Y. Dec. 20, 2013)
(finding general jurisdiction over the alter ego and/or successor
in interest of judgment debtor that does business in the forum
state). And the District Court may exercise personal
jurisdiction over a successor in interest even if it would have
lacked personal jurisdiction over the predecessor. See, e.g.,
Gorton v. Air & Liquid Sys. Corp., 303 F. Supp. 3d 278, 301
(M.D. Pa. 2018); In re DES Cases, 789 F. Supp. 552, 591
(E.D.N.Y. 1992). By failing to first determine whether
Webuild is Astaldi’s successor in interest, the District Court
erred.
We decline SCMS’s invitation to decide on appeal for
the first time the complex, heavily factual successor-in-interest
question. “When a district court has failed to reach a question
below that becomes critical when reviewed on appeal, an
appellate court may sometimes resolve the issue on appeal
rather than remand to the district court.” Hudson United Bank
v. LiTenda Mortg. Corp., 142 F.3d 151, 159 (3d Cir. 1998).
Generally, this procedure is “appropriate when the factual
record is developed” and the issue is purely legal. Id. Here, the
factual record is developed but not in the manner that Hudson
contemplates. This record is “developed” in the sense that it is
enormous: the parties submitted more than 150 pages of briefs
and expert declarations, along with hundreds of pages of
exhibits, devoted solely to whether Webuild assumed liability
33
for the award. App. 41–362, 367–844. However, Webuild’s
status as successor in interest likely requires delving into
several underlying complexities, including whether Delaware
or Italian law applies, the relation between the Italian
Concordata and the Chilean arbitration, and the niceties of a
multi-billion-dollar two-step merger and spin-off transaction
that occurred in Italy. Therefore, the District Court should
resolve this question in the first instance. See Gov’t of Virgin
Islands v. Martinez, 780 F.2d 302, 310 (3d Cir. 1985) (“It is
not our role to find facts and resolve factual issues at the
appellate level.”).
V.
For these reasons, we will vacate the District Court’s
dismissal for lack of personal jurisdiction and remand to the
District Court to determine whether Webuild is Astaldi’s
successor in interest and to conduct any other proceedings
consistent with this opinion.
34