500. Deduction for income taxes
Deduction of taxes payable on
estimated future earnings from gross income, in determination of damages for
wrongful death in action under 46 USCS Appx § 688, was error under record
showing that estimated annual earnings of decedents did not exceed $ 11,500.
Petition of Marina Mercante Nicaraguense, S.A. (1966, CA2 NY) 364 F2d 118, 3
ALR Fed 187, cert den 385 US 1005, 17 L Ed 2d 544, 87 S Ct 710, reh den 386 US
929, 17 L Ed 2d 803, 87 S Ct 851.
No deduction for income taxes
should be made where annual estimated earnings are not above reach of middle
income scale. Petition of M/V Elaine Jones (1973, CA5 Miss) 480 F2d 11, amd on
other grounds (CA5 Miss) 513 F2d 911, cert den 423 US 840, 46 L Ed 2d 60, 96 S
Ct 71 and (ovrld on other grounds Culver v Slater Boat Co. (CA5 La) 688 F2d
280, op withdrawn, in part (CA5 La) 722 F2d 114, cert den 467 US 1252, 82 L Ed
2d 842, 104 S Ct 3537 and cert den (US) 83 L Ed 2d 37, 105 S Ct 90).
In determining extent of loss
from future earnings of decedents killed in helicopter crash at sea court
stated that no deduction for state and federal income taxes should be made
where yearly estimated earnings are not clearly above reach of middle income
scale. Higginbotham v Mobil Oil Corp. (1973, WD La) 360 F Supp 1140, affd in
part and revd in part on other grounds (Ca5 La) 545 F2d 422 (disagreed with
Smith v M/V Captain Fred (CA5 La) 546 F2d 119) as stated in Longmire v Sea
Drilling Corp. (CA5 La) 610 F2d 1342, reh den (CA5 La) 615 F2d 919 and
(disagreed with on other grounds Steckler v United States (CA10 Colo) 549 F2d
1372, 38 ALR Fed 188 (disagreed with Smith v United States (CA3 Pa) 587 F2d
1013)) and revd on other grounds 436 US 618, 56 L Ed 2d 581, 98 S Ct 2010, on
remand (CA5 La) 578 F2d 565 and reh den 439 US 884, 58 L Ed 2d 200, 99 S Ct
232 and (ovrld on other grounds Culver v Slater Boat Co. (CA5 La) 688 F2d 280,
op withdrawn, in part (CA5 La) 722 F2d 114, cert den 467 US 1252, 82 L Ed 2d
842, 104 S Ct 3537 and cert den (US) 83 L Ed 2d 37, 105 S Ct 90) and
(disapproved on other grounds Jones & Laughlin Steel Corp. v Pfeifer, 462
US 523, 76 L Ed 2d 768, 103 S Ct 2541, on remand (CA3) 711 F2d 570).
501. Personal expenses of
decedent
In action under 46 USCS Appx §
688, personal expenditures of decedent must be deducted from award. Gardner v
National Bulk Carriers, Inc. (1963, ED Va) 221 F Supp 243, affd (CA4 Va) 333
F2d 676.
Before attempting to ascertain
pecuniary loss to widow and children of deceased seaman, it is first necessary
to allocate and deduct seaman's likely personal expenditures. Trexler v Tug
Raven (1968, ED Va) 290 F Supp 429, revd on other grounds (CA4 Va) 419 F2d
536, cert den 398 US 938, 26 L Ed 2d 271, 90 S Ct 1843.
Damages under 46 USCS Appx §
688 reflecting decedent's lost wages must be adjusted to reflect amount
decedent would have spent on himself and as his part of household expenses.
Hebert v Otto Candies, Inc. (1975, ED La) 402 F Supp 503.
502. Actuarial tables
In computing damages due
disabled seaman under Jones Act (46 USCS Appx § 688), District Court erred in
basing award on work-life expectancy of 30.8 years, presumably because seaman
would reach age 65 at that time, where experts in action testified that seaman
had work-life expectancy of 25.8 years, based on rates compiled by Department
of Labor; rates compiled by Department are not conclusive, but such rates
should be followed absent evidence that particular person, by virtue of
health, occupation, or other factors, is likely to live and work longer, or
shorter period than average person. Madore v Ingram Tank Ships, Inc. (1984,
CA5 Tex) 732 F2d 475.
In action brought under 46 USCS
Appx § 688, mortality tables used in computing damages are intended as guide;
to get value of reasonably to be expected contribution, earning power of money
must be considered amount which, if capitalized at reasonable rate of
interest, would yield annually same income person injured might have expected
from deceased. Poindexter v Groves (1951, DC NY) 103 F Supp 657, affd (CA2 NY)
197 F2d 915.
Mortality and annuity tables
are merely guides to assist jury in reaching verdict and do not furnish rules
which jury must necessarily follow; amount to be awarded for future loss of
pecuniary benefits is not to be arrived at by mere ascertainment of monthly
payments and life expectancy, but present value of aggregate future payments
must be ascertained and for this purpose annuity figures are utilized showing
different interest calculations upon which such present value is ascertained.
Holliday v Pacific Atlantic S.S. Co. (1953, DC Del) 117 F Supp 729, affd (CA3
Del) 212 F2d 206.
In action brought under 46 USCS
Appx § 688, mortality and annuity tables may be considered, but are not fixed
rules in computation of damages. Petition of Southern S.S. Co. (1955, DC Del)
135 F Supp 358.
503. Effect of inflation
Taking inflationary trends in
economy into account in computing future lost earnings is approved. Johnson v
Penrod Drilling Co. (1972, CA5 Tex) 469 F2d 897, 16 FR Serv 2d 766, on reh
(CA5 Tex) 510 F2d 234, cert den 423 US 839, 46 L Ed 2d 58, 96 S Ct 68, 96 S Ct
69 Culver v Slater Boat Co. (CA5 La) 722 F2d 114, cert den 467 US 1252, 82 L
Ed 2d 842, 104 S Ct 3537 and cert den (US) 83 L Ed 2d 37, 105 S Ct 90.
In action under 46 USCS Appx §
688, court may include in damage award adjustment of damage computation by
anticipated annual increase in cost of living. Petition of M/V Elaine Jones
(1973, CA5 Miss) 480 F2d 11, amd on other grounds (CA5 Miss) 513 F2d 911, cert
den 423 US 840, 46 L Ed 2d 60, 96 S Ct 71 and (ovrld on other grounds Culver v
Slater Boat Co. (CA5 La) 688 F2d 280, op withdrawn, in part (CA5 La) 722 F2d
114, cert den 467 US 1252, 82 L Ed 2d 842, 104 S Ct 3537 and cert den (US) 83
L Ed 2d 37, 105 S Ct 90).
It is not error for trial court
to refuse to instruct as to inflation or present value. Haupt v Atwood
Oceanics, Inc. (1982, CA5 Tex) 681 F2d 1058, CCH Prod Liab Rep P 9370, 10 Fed
Rules Evid Serv 1643, reh den (CA5 Tex) 688 F2d 840 and reh den (CA5 Tex) 688
F2d 840.
504. --Discount of award
In action by injured seaman
under 46 USCS Appx § 688, in which it was established that injuries were
caused by employer's breach of duty to furnish seaman with reasonably safe
workplace, District Court erred in applying Alaska Rule in calculating
damages, rather than below-market discount method, and by allowing parties
opportunity to introduce evidence of wage increases seaman would have received
as result of factors other than inflation. Ober v Penrod Drilling Co. (1984,
CA5 La) 726 F2d 1035.
In computing damages due
disabled seaman under Jones Act (46 USCS Appx § 688), District Court erred in
applying discount rate of 6.56 percent based on 21 year average of rates paid
on United States Treasury bills, rather than on market rates available at time
of judgment. Madore v Ingram Tank Ships, Inc. (1984, CA5 Tex) 732 F2d 475.
Jury awards made in action
under 46 USCS Appx § 688 are not to be discounted to present values. Ivy v
Security Barge Lines, Inc. (1976, DC Miss) 424 F Supp 1154, revd on other
grounds (CA5 Miss) 585 F2d 732, on reh (CA5 Miss) 606 F2d 524, cert den 446 US
956, 64 L Ed 2d 815, 100 S Ct 2927, reh den 448 US 912, 65 L Ed 2d 1173, 101 S
Ct 27 and on remand (ND Miss) 89 FRD 322.
Survivor's future pecuniary
loss must be discounted to present value for purposes of present payment by
employing appropriate interest rate prevailing at time and place of trial.
Thompson v Offshore Co. (1977, SD Tex) 440 F Supp 752 (disapproved on other
grounds Culver v Slater Boat Co. (CA5 La) 688 F2d 280, op withdrawn, in part
(CA5 La) 722 F2d 114, cert den 467 US 1252, 82 L Ed 2d 842, 104 S Ct 3537 and
cert den (US) 83 L Ed 2d 37, 105 S Ct 90).
505. Distribution of award
Damages to be awarded for death
of seaman in action brought under 46 USCS Appx § 688 need not be apportioned.
Otis v State (1944, Ct Cl) 47 NYS2d 755.
It is not necessary for jury to
apportion verdict between widow and child in action under 46 USCS Appx § 688,
since better practice is to instruct jury to bring in verdict in single lump
sum, leaving distribution or administration of fund for appropriate state
court. Tompkins v Pilots Asso. for Bay & River Delaware (1940, DC Pa) 32 F
Supp 439, 1940 AMC 716.
In action under 46 USCS Appx §
688, pecuniary loss is accepted basis for recovery, and period that such loss
will be sustained must be factor to receive consideration, and apportionment
among several children of decedent should be made depending upon their
different ages and whether they are actually being supported by spouse.
Petition of Southern S.S. Co. (1955, DC Del) 135 F Supp 358.
Widow's recovery in action
brought for recovery of damages resulting from death of husband under 46 USCS
Appx § 688, is limited to amount her husband might reasonably have been
expected to contribute to her had he lived; where decedent is survived by
widow but not by children, widow's recovery should be limited to 50 percent of
decedent's lost earnings. Mpiliris v Hellenic Lines, Ltd. (1969, DC Tex) 323 F
Supp 865, affd (CA5 Tex) 440 F2d 1163.
Distribution of recovery for
death of stevedore is governed by 46 USCS Appx § 688 and not by state law. Re
De Martino's Estate (1932) 142 Misc 431, 254 NYS 862.
Recovery for death is to be
distributed among injured parties in proportion to their loss, and death of
injured party before fixing of damages does not defeat recovery. Re Uravic's
Estate (1932) 142 Misc 775, 255 NYS 638.
State court has jurisdiction
under 46 USCS Appx § 688 to determine apportionment among dependents of
seaman. Re Nelson (1938) 168 Misc 161, 5 NYS2d 398, 1938 AMC 1068.
Distribution of award under 46
USCS Appx § 688 is governed by federal law and not state law; statute
applicable is Federal Employers' Liability Act (45 USCS § § 51 et seq.)
incorporated by reference in 46 USCS Appx § 688. Re Cooperman's Estate (1955)
208 Misc 234, 143 NYS2d 196.
Seaman's second marriage being
illegal, having taken place less than one year after divorce decree, court
apportioned damages for his death at sea between children of his first and
second marriages. Re Tufts' Estate (1938) 228 Wis 221, 280 NW 309.
506. Miscellaneous
Measure of damages is
compensation for deprivation of reasonable expectation of pecuniary benefits
that would have resulted from continued life of deceased, and in estimating,
earning power of money must be considered and amount determined which,
capitalized at reasonable rate of interest, would yield annually same income
injured person might have expected from deceased. Sabine Towing Co. v Brennan
(1936, CA5 Tex) 85 F2d 478, cert den 299 US 599, 81 L Ed 441, 57 S Ct 191, reh
den 299 US 624, 81 L Ed 459, 57 S Ct 234.
District Court committed
reversible error when it admitted into evidence, over defendant's objections,
slide-rule type device called "Future Damage Calculator" and took
notice of plaintiff's life expectancy as calculated by device, where no
foundation was laid for exhibit and exhibit was hearsay. Crane v Crest Tankers
(1995, CA8 Mo) 47 F3d 292, 41 Fed Rules Evid Serv 351.
Though local law prohibited
assignment of claim for personal injuries, assignment of proceeds of judgment
received as result of action brought under 46 USCS Appx § 688 was valid.
Sperling v McCarthy (1956, DC NY) 142 F Supp 780.
In claim under 46 USCS Appx §
688 prosecuted for benefit of widow, of decedent seaman, recovery is based
upon and limited by pecuniary loss sustained by spouse; sums paid to widow
under liability insurance policy taken out by shipowner and on which he paid
all premiums must be deducted from award. Petition of Gulf Oil Co. (1963, DC
RI) 221 F Supp 1000.
VII. PRACTICE AND PROCEDURE
A. State Court Actions
507. Generally
Actions under both 46 USCS Appx
§ 688 and 46 USCS Appx § § 761-767 may be brought in state courts. Bugden v
Trawler Cambridge, Inc. (1946) 319 Mass 315, 65 NE2d 533.
Fact that cause of action is
brought in state court under 46 USCS Appx § 688 does not change rules
applying to actions based upon alleged negligence. Edmond v American-Hawaiian
S.S. Co. (1946) 187 Misc 723, 65 NYS2d 433, affd 274 App Div 1035, 85 NYS2d
915.
508. Concurrent state court
jurisdiction
State and federal courts have
concurrent jurisdiction to enforce right of action established by 46 USCS Appx
§ 688. Engel v Davenport (1926) 271 US 33, 70 L Ed 813, 46 S Ct 410.
Provision in 46 USCS Appx §
688 that jurisdiction of actions for personal injuries shall be under court of
district in which defendant employer resides, or in which his principal office
is located, does not restrict enforcement of newly given rights to federal
courts. Panama R. Co. v Vasquez (1926) 271 US 557, 70 L Ed 1085, 46 S Ct 596.
Suit under 46 USCS Appx § 688
may be filed in either federal or state courts, but construction of § 688
rests with federal court. Messel v Foundation Co. (1927) 274 US 427, 71 L Ed
1135, 47 S Ct 695.
Seaman's action under 46 USCS
Appx § 688 to recover for injuries sustained in course of employment may be
brought in state as well as federal courts. Lauritzen v Larsen (1953) 345 US
571, 97 L Ed 1254, 73 S Ct 921.
State and federal courts have
concurrent jurisdiction over Jones Act (46 USCS Appx § 688), which authorizes
seaman who suffers personal injury in course of employment to bring action for
damages at law. American Dredging Co. v Miller (1994, US) 127 L Ed 2d 285, 114
S Ct 981, 94 CDOS 1288, 93 Daily Journal DAR 2371, 1994 AMC 913, 7 FLW Fed S
754.
When seaman sues under 46 USCS
Appx § 688 in state court, concurrent jurisdiction is expressly granted to
enforce this statutory addition to maritime law. Reynolds v Royal Mail Lines,
Ltd. (1956, DC Cal) 147 F Supp 223, 1957 AMC 320, affd (CA9 Cal) 254 F2d 55,
1958 AMC 1668, cert den 358 US 818, 3 L Ed 2d 59, 79 S Ct 28.
State court possesses
jurisdiction of claim under 46 USCS Appx § 688 by seaman injured in course of
employment, jurisdiction of federal courts not being exclusive. Whalen v Twin
City Barge & Gravel Co. (1935) 280 Ill App 596, cert den 297 US 714, 80 L
Ed 1000, 56 S Ct 590.
State and federal courts have
concurrent jurisdictions in actions to recover under 46 USCS Appx § 688 and
under general maritime law, with federal principles of law applying. Keough v
Cefalo (1953) 330 Mass 57, 110 NE2d 919.
State courts have concurrent
jurisdiction with federal courts to try actions brought under 46 USCS Appx §
688 for injuries sustained, and for maintenance and cure under traditional
maritime law. Richards v Dravo Corp. (1977) 249 Pa Super 47, 375 A2d 750.
509. Applicable substantive law
It is incumbent upon State
courts in trying suit under 46 USCS Appx § 688 to proceed in such manner that
all substantive rights of parties under controlling federal law are protected.
Garrett v Moore-McCormack Co. (1942) 317 US 239, 87 L Ed 239, 63 S Ct 246.
Subject matter jurisdiction of
state courts to determine 46 USCS Appx § 688 cases is founded on
"savings to suitors" clause of 28 USCS § 1333. De Court v Beckman
Instruments, Inc. (1973, 4th Dist) 32 Cal App 3d 628, 108 Cal Rptr 109.
Substantive law as developed in
federal cases is controlling of cases under 46 USCS Appx § 688 filed in state
courts. De Court v Beckman Instruments, Inc. (1973, 4th Dist) 32 Cal App 3d
628, 108 Cal Rptr 109.
510. Applicable rules of
procedure
So far as procedure is
concerned, all cases based upon 46 USCS Appx § 688 which are filed in state
courts should be considered as though cause of action arose under statute of
state, since nothing in 46 USCS Appx § 688 conflicts with state law of
procedure. Macomber v De Bardeleben Coal Co. (1941, La App, Orleans) 4 So 2d
483, revd on other grounds 200 La 633, 8 So 2d 624, cert den 317 US 661, 87 L
Ed 532, 63 S Ct 61.
In 46 USCS Appx § 688 case
tried in state court, procedural matters are governed by state law.
Continental Oil Co. v Lindley (1964, Tex Civ App Houston (1st Dist)) 382 SW2d
296, writ ref n r e.
46 USCS Appx § 688 prescribes
substantive rights of parties in cases brought under 46 USCS Appx § 688, but
when such cases are filed in state courts, they are generally to be tried in
accordance with state's own rules of civil procedure. Union Oil Co. v Richard
(1975, Tex Civ App Beaumont) 536 SW2d 955.
511. Sufficiency of contacts
with state
Seaman injured from fall when
valve handwheel he was holding unexpectedly came loose properly sued vessel
owner under 46 USC Appx § 688, where vessel owner's only connection with
Maryland was negotiation of agreement with Maryland based seafarer's union to
supply vessel owner with unlicensed seamen, because personal jurisdiction is
proper under Maryland long-arm statute as vessel owner contracted for services
within state and developed sufficient relationship with Maryland for purposes
of due process. Bass v Energy Transp. Corp. (1992, DC Md) 787 F Supp 530, 1992
AMC 2325.
Seaman, resident of Florida,
injured on board vessel owned and operated by defendant, New Jersey
corporation, could not maintain action under 46 USCS Appx § 688 in New York
Supreme Court. Mowat v United Fruit Co. (1942, Sup) 37 NYS2d 93, 1942 AMC 983.
In action under 46 USCS Appx §
688 for damages resulting from wrongful death of plaintiff's intestate who
lost his life while employed on barge located at pier in Jersey City, New
Jersey, New York Supreme Court could take jurisdiction. Hamilton v Berwind-White
Coal Mining Co. (1945, Sup) 60 NYS2d 561.
In 46 USCS Appx § 688 action
by nonresident seaman against foreign corporation for injuries received while
on vessel of corporation, failure of corporation which had offices in New
York, to show that it does not do business in that state warrants court to use
its discretion to either accept or decline jurisdiction. Seeley v Waterman S.
S. Corp. (1947, Sup) 73 NYS2d 80, revd on other grounds 274 App Div 934, 83
NYS2d 502.
New York court would refuse
jurisdiction of action predicated in part upon provisions of 46 USCS Appx §
688 against New Jersey corporation for injuries sustained by plaintiff during
course of his employment as seaman while at Boston, Massachusetts, no
sufficient special circumstances to warrant retention of jurisdiction having
been disclosed; general appearance of defendant in such action did not
constitute waiver of its right to invoke court's discretion to refuse
jurisdiction. Brandao v United Fruit Co. (1944) 183 Misc 683, 50 NYS2d 886.
512. Suits against United
States
Seaman who sustained injury due
to negligence and unseaworthiness of vessel owned by railroad corporation
owned by United States, could bring action for damages under 46 USCS Appx §
688 in state court; and 28 USCS § § 1346, 1504, 2110, 2671 et seq. did not
affect such right. Wagner v Panama R. Co. (1949) 299 NY 432, 87 NE2d 444.
Where seaman, injured on vessel
owned by United States, sues under 46 USCS § 688 shipping company operating
vessel as agent, as responsible for injury, without including United States as
defendant, suit may be brought in state court for damages. Odgaard v
Cosmopolitan Shipping Co. (1939) 171 Misc 244, 12 NYS2d 389, 1939 AMC 1038.
513. State boards and
commissions
Federal District Court had
jurisdiction under 46 USCS Appx § 688 of libel by seaman for personal
injuries incurred while taking net from nearby warehouse to vessel on which he
was employed as seaman, as against contention that state industrial accident
commission had exclusive jurisdiction of compensation for his injuries. The
Betsy Ross (1944, CA9 Cal) 145 F2d 688, 1944 AMC 1468.
Workmen's compensation acts of
state may properly bestow exclusive jurisdiction upon state administrative
tribunal to exclude jurisdiction which formerly rested in Federal District
Courts; this applies to relief for claims otherwise cognizable under 46 USCS
Appx § 688. Surgeon v Alaska Packers Ass'n (1939, DC Cal) 26 F Supp 241.
Since plaintiff was engaged in
work purely local in nature, workmen's compensation laws of California applied
and since by such law Industrial Accident Commission was given exclusive
jurisdiction, federal court had no jurisdiction under 46 USCS Appx § 688.
Surgeon v Alaska Packers Ass'n (1939, DC Cal) 26 F Supp 241, 1939 AMC 474.
Industrial Accident Commission
is not court of state which may give remedies under either 46 USCS Appx § 688
or maritime law for maintenance and cure, its sole power is to apply workmen's
compensation law. Occidental Indem. Co. v Industrial Acci. Com. (1944) 24 Cal
2d 310, 149 P2d 841.
State industrial accident
commission is not state court which may give remedies for injured seaman under
either 46 USCS Appx § 688 or maritime law for maintenance and cure.
Occidental Indem. Co. v Industrial Acci. Com. (1944) 24 Cal 2d 310, 149 P2d
841.
In cases where injured seaman
is performing seaman's duties on navigable water he can bring action for
injuries under 46 USCS Appx § 688 and not under state workmen's compensation
law. Valley Towing Co. v Allen (1959) 236 Miss 51, 109 So 2d 538.
B. Jurisdiction
1. In General
514. Generally
Provision of 46 USCS Appx §
688 that jurisdiction shall be under court of district in which defendant
employer resides or in which his principal office is located, applies only to
federal courts. Bainbridge v Merchants & Miners Transp. Co. (1932) 287 US
278, 77 L Ed 302, 53 S Ct 159.
Assertion that 46 USCS Appx §
688 affords libelant right of recovery for negligence of his employer is alone
sufficient to empower District Court to assume jurisdiction over case and
determine whether in fact 46 USCS Appx § 688 does provide claimed rights.
Romero v International Terminal Operating Co. (1959) 358 US 354, 3 L Ed 2d
368, 79 S Ct 468, reh den 359 US 962, 3 L Ed 2d 769, 79 S Ct 795.
In wrongful death actions for
death of workers killed while working for drilling ship operating in national
waters of Trinidad, dismissal for lack of subject matter jurisdiction is
improper, where court failed to first address whether plaintiffs' decedents
were Jones Act seamen or whether defendants were Jones Act employers. Ali v
Offshore Co. (1985, CA5 La) 753 F2d 1327.
District Court properly
dismissed employer's declaratory judgment action in Jones Act case where there
was pending state court action which would resolve all issues, action strongly
suggests forum shopping by plaintiff, and where permitting declaratory
judgment action would effectively deprive seaman of right to jury trial.
Torch, Inc. v LeBlanc (1991, CA5 La) 947 F2d 193.
Shipowner, naval entity of
foreign nation, did not impliedly waive sovereign immunity in Jones Act case
by filing notice of removal; action was purely defensive to preserve its right
of removal and to avoid possibility of default judgment. Rodriguez v Transnave
Inc. (1993, CA5 Tex) 8 F3d 284.
Suit by general liability
insurer of seaman's employer against seaman to collect worker's compensation
paid to him by employer's other insurance carrier was not improper attempt to
assert subrogation claim for compensation payments; seaman was being asked to
make restitution of worker's compensation benefits to which he was not
entitled and insurer was simply seeking disgorgement. Commercial Union Ins.
Co. v McKinnon (1993, CA8 Mo) 10 F3d 1352.
Pleading stating that deceased
was seaman injured in scope of employment in violation of Jones Act and was
borrowed servant of defendants was sufficient to allege Jones Act and to
trigger nonremovability of suit. Lackey v Atlantic Richfield Co. (1993, CA5
Tex) 983 F2d 620, reh, en banc, den (CA5) 1993 US App LEXIS 4580.
Although Jones Act does not
focus on location of vessel at time of injury, Jones Act jurisdiction still
requires relationship to navigable waters; thus, ship with no connection to
navigable waters is not source of Jones Act jurisdiction. Weaver v Hollywood
Casino-Aurora, Inc. (2001, CA7 Ill) 255 F3d 379.
46 USCS Appx § 688 action
against foreign vessel whose alien owner is absent cannot be maintained. The
Roseville (1935, DC Wash) 11 F Supp 150, 1935 AMC 896.
515. "Jurisdiction"
defined
"Jurisdiction" as
used in 46 USCS Appx § 688 refers solely to venue. Branic v Wheeling Steel
Corp. (1945, CA3 Pa) 152 F2d 887, 1946 AMC 66, cert den 327 US 801, 90 L Ed
1026, 66 S Ct 902; Harmon v Boland (1950, ED NY) 90 F Supp 559; Bailiff v
Storm Drilling Corp. (1972, ED Tex) 356 F Supp 309.
Although 46 USCS Appx § 688
uses term "jurisdiction," it may be construed as venue statute; it
incorporates venue provision of 28 USCS § 1391(c). De Mateos v Texaco, Inc.
(1977, CA3 Pa) 562 F2d 895, cert den 435 US 904, 55 L Ed 2d 494, 98 S Ct 1449.
With regard to 46 USCS Appx §
688 providing that "jurisdiction . . . shall be under court of district
in which defendant employer resides or in which his principal office is
located," term "jurisdiction" means venue. Barrineau v Sub Sea
Int'l (1996, ED Tex) 940 F Supp 153.
516. Admiralty jurisdiction
Admiralty has no jurisdiction
of proceeding by injured seaman for compensation under 46 USCS Appx § 688
which imposes personal liability for such injuries, but gives no lien upon
vessel. Plamals v S. S. Pinar Del Rio (1928) 277 US 151, 72 L Ed 827, 48 S Ct
457 (ovrld on other grounds Mahnich v Southern S. S. Co. 321 US 96, 88 L Ed
561, 64 S Ct 455).
Right of recovery under 46 USCS
Appx § 688 for personal injuries is given to seamen as such, and, as in case
of maintenance and cure, admiralty jurisdiction over suit depends not on place
where injury is inflicted but on nature of service and its relationship to
operation of vessel plying in navigable waters. O'Donnell v Great Lakes Dredge
& Dock Co. (1943) 318 US 36, 87 L Ed 596, 63 S Ct 488; Swanson v Marra
Bros., Inc. (1946) 328 US 1, 90 L Ed 1045, 66 S Ct 869, 1946 AMC 715.
Courts of admiralty are
traditionally sensitive to seamen's rights, and before turning plaintiffs
asserting 46 USCS Appx § 688 claims out of court, will satisfy themselves
that there are no special circumstances which will leave them without adequate
remedy. The Falco (1927, CA2 NY) 20 F2d 362; Jullien v The Marseille (1963, ED
La) 214 F Supp 770, 1963 AMC 890; Volkenburg v Nederland-Amerik. Stoomv. Maats
(1963, DC Mass) 221 F Supp 925, 1964 AMC 53, affd (CA1 Mass) 336 F2d 480, 8 FR
Serv 2d 34.13, Case 12.
Dismissal for lack of
jurisdiction of plaintiff's common law claim is proper absent sufficient nexus
with traditional maritime activities to sustain admiralty and maritime
jurisdiction. Shows v Harber (1978, CA8 Ark) 575 F2d 1253, 25 FR Serv 2d 601.
In action under 46 USCS Appx §
688 brought by merchant seaman, claiming negligence of shipowner and
unseaworthiness of vessel, admiralty court has jurisdiction to entertain
counterclaim, which is in nature of set-off, which shipowner seeks to
interpose, looking for its recovery of maintenance and cure which it claims
was procured by fraud; in interest of judicial economy where same issues are
involved and plaintiff has demanded jury, issues raised in counterclaims may
be determined by jury. Bergeria v Marine Carriers, Inc. (1972, ED Pa) 341 F
Supp 1153, 16 FR Serv 2d 1268.
Jones Act (46 USCS Appx § 688)
claim by seaman is within admiralty jurisdiction, whether injury occurs on
vessel or on land. Koesler v Harvey Applicators, Inc. (1976, ED La) 416 F Supp
872.
Requirement that Jones Act
claimant be seaman to recover benefits is jurisdictional; only one so situated
can show maritime nexus necessary to invoke admiralty jurisdiction of federal
courts. Hines v Saylor Marine Corp. (1985, SD Ga) 615 F Supp 33.
District Court did not have
admiralty jurisdiction over suit by vessel owner to limit its liability for
injuries suffered by crew members in accident in owner's vehicle on way home
45 minutes after they had debarked, even if crew members might have been able
to bring claim against owner under 46 USCS Appx § 688, absent showing that
accident was related to any particular activity aboard ship. In re Luhr Bros.
(2000, ED Mo) 100 F Supp 2d 1156.
517. --Proceedings in admiralty
or at law
Jones Act (46 USCS Appx § 688)
affords injured seaman choice between suit in admiralty without jury and suit
on civil side of docket with jury. Texas Menhaden Co. v Palermo (1964, CA5
Tex) 329 F2d 579.
Seaman having Jones Act (46
USCS Appx § 688) claim may elect remedy of suit in admiralty or civil action
at law. Doucet v Wheless Drilling Co. (1972, CA5 La) 467 F2d 336, 16 FR Serv
2d 971.
Jones Act (46 USCS Appx § 688)
does not withdraw injuries to seamen from reach and operation of maritime law,
but, on contrary, it brings into that law new rules drawn from another system
and extends to injured seamen right to invoke relief accorded by new rules;
its effect is to enable seamen to maintain action for damages at law for
personal injuries which formerly were within exclusive jurisdiction of
maritime courts. Rowley v Sierra S.S. Co. (1942, DC Ohio) 48 F Supp 193.
Despite remedies provided by 46
USCS Appx § 688, jurisdiction in admiralty is quite separate and apart from
jurisdiction at law, and admiralty is still separate field of law and has its
own rules, methods, and procedure. Rowley v Sierra S. S. Co. (1942, DC Ohio)
48 F Supp 193, 1943 AMC 1025.
When plaintiff longshoreman
brought action under 46 USCS Appx § 688 against several defendants, none of
whom was his employer, United States District Court did not have jurisdiction
on civil side, but would have had jurisdiction on admiralty side, under 46
USCS Appx § 741 et seq. Dell v American Export Lines, Inc. (1956, DC NY) 142
F Supp 511, 1956 AMC 1567.
518. --In rem or in personam
proceedings
Suit under 46 USCS Appx § 688
cannot be brought in admiralty in rem; 46 USCS Appx § 688 does not undertake
to impose liability on ship itself but against seaman's employer. Plamals v S.
S. Pinar Del Rio (1928) 277 US 151, 72 L Ed 827, 48 S Ct 457 (ovrld on other
grounds Mahnich v Southern S. S. Co. 321 US 96, 88 L Ed 561, 64 S Ct 455);
Mahnich v Southern S. S. Co. (1944) 321 US 96, 88 L Ed 561, 64 S Ct 455;
Lauritzen v Larsen (1953) 345 US 571, 97 L Ed 1254, 73 S Ct 921.
Maritime privilege or lien,
though adhering to vessel, may prejudice creditors and purchasers without
notice and is therefore stricti juris and cannot be extended by construction,
analogy, or inference. The Josephine & Mary (1941, CA1 Mass) 120 F2d 459,
1941 AMC 1126.
Jones Act (46 USCS Appx § 688)
modified prior maritime law of United States by giving to seamen injured
through negligence right of action in personam against employer. Pate v
Standard Dredging Corp. (1952, CA5 Tex) 193 F2d 498.
Rights under 46 USCS Appx §
688 may be asserted at law or in personam, in admiralty. Platt v Chesapeake
& O. R. Co. (1948, DC Ohio) 82 F Supp 968.
Libel in rem to recover damages
for death of seaman could not be maintained under 46 USCS Appx § 688.
McLaughlin v Dredge Gloucester (1964, DC NJ) 230 F Supp 623, 1964 AMC 2123.
46 USCS Appx § 688 cases may
be brought in federal courts in personam, but not in rem. Valentine v Wiggins
(1965, ED NC) 242 F Supp 870.
Action brought under 46 USCS
Appx § 688 to recover damages for injuries allegedly sustained in port of New
York by citizen of Barbados who was seaman on vessel owned by British
corporation, was dismissed as against vessel where nothing in record indicated
that plaintiff was proceeding in rem or quasi in rem. Hazell v Booth S. S. Co.
(1977, SD NY) 436 F Supp 561, adhered to (SD NY) 444 F Supp 85.
519. Actions against states
Eleventh Amendment bars federal
jurisdiction over Jones Act claim by state employee against state for injuries
sustained while state employee was assigned to vessel in course of duties as
state agent. Smith v Louisiana, Dept. of Wildlife & Fisheries (1984, ED
La) 586 F Supp 609.
Suit may not be brought against
state in its own courts under 46 USCS Appx § 688 without its consent. Lyons v
Texas A & M University (1976, Tex Civ App Houston (14th Dist)) 545 SW2d
56, writ ref n r e.
520. Choice of law
Similarity in function and
purpose 46 USCS Appx § 688 and general maritime principles of compensation
for personal injury admits of no rational differentiation for choice-of-law
purposes. Romero v International Terminal Operating Co. (1959) 358 US 354, 3 L
Ed 2d 368, 79 S Ct 468, reh den 359 US 962, 3 L Ed 2d 769, 79 S Ct 795.
Choice of law analysis for
suits brought under 46 USCS Appx § 688 and those brought under general
maritime law of United States is same. Vaz Borralho v Keydrill Co. (1983, CA5
Tex) 696 F2d 379, reh den (CA5 Tex) 710 F2d 207 and (disagreed with Tallentire
v Offshore Logistics, Inc. (CA5 La) 754 F2d 1274, revd on other grounds (US)
91 L Ed 2d 174, 106 S Ct 2485).
Test for determining whether
federal maritime law or foreign law governs maritime tort is not mechanical
one in which court simply counts relevant contacts; significance of each
factor must be considered within particular contacts of claim and national
interest served by application of United States law. Fogleman v ARAMCO (1991,
CA5 Tex) 920 F2d 278.
Substantive general federal
maritime law will govern Jones Act (46 USCS Appx § 688) wrongful death claim
brought under District Court's diversity jurisdiction, as opposed to state
wrongful death law, because federal principles of maritime law constitute
intended uniform body of maritime law for nation which should be applied to
maritime claims in all courts. Neal v McGinnis, Inc. (1989, ED Ky) 716 F Supp
996.
521. Parties and standing
In determining whether or not
person is proper party plaintiff or defendant, 46 USCS Appx § 688 and
maintenance and cure cases may be read interchangeably; where there is
negligence, 46 USCS Appx § 688 supplements remedy of maintenance and cure and
employer may be liable under 46 USCS Appx § 688 for negligent failure to
provide employees maintenance and cure. Mahramas v American Export Isbrandtsen
Lines, Inc. (1973, CA2 NY) 475 F2d 165.
Survivors of Brazilian seaman
who died as result of injuries sustained on board submersible drilling rig,
located off Brazilian coast, have no standing to assert that court's
distinction between drilling rigs and seagoing vessels discriminates against
owners of seagoing vessels. Vaz Borralho v Keydrill Co. (1983, CA5 Tex) 696
F2d 379, reh den (CA5 Tex) 710 F2d 207 and (disagreed with Tallentire v
Offshore Logistics, Inc. (CA5 La) 754 F2d 1274, revd on other grounds (US) 91
L Ed 2d 174, 106 S Ct 2485).
Seaman who owned 10 percent of
defendant shipowner corporation along with his family members who owned
remaining 90 percent could sue corporation under Jones Act where he was not
active or influential in affairs of corporation. Rufolo v Midwest Marine
Contractor (1993, CA7 Ill) 6 F3d 448, vacated, remanded 511 US 1050, 128 L Ed
2d 337, 114 S Ct 1609 .
2. Bases of Jurisdiction
522. Sufficiency of contacts
with jurisdiction
Contacts were insufficient to
support personal jurisdiction in Louisiana where plaintiff deckhand alleged
that defendant sold fuel in Louisiana and that he traveled to Louisiana once
on boat operated by defendant. Dalton v R & W Marine, Inc. (1990, CA5 La)
897 F2d 1359.
Due to minimal contacts with
United States, court lacked subject matter jurisdiction over suit for injury
occurring outside United States waters brought by Honduran crew member of
vessel registered in Cyprus by German corporation. Matute v Procoast
Navigation, Ltd. (1991, CA3 NJ) 928 F2d 627, 18 FR Serv 3d 1510.
District Court lacked
jurisdiction to hear plaintiffs claim under 46 USCS Appx § 688, because of
insufficient contacts with jurisdiction despite defendant agent's role in
collecting freight charges in New York and disbursing funds for expenses,
defendant's listing in Manhattan telephone directory at agent's telephone
number, and agent's listing in Journal of Commerce as defendant's general
agent; above facts were insufficient to establish identity of interest between
defendant and agent. Hazell v Booth S. S. Co. (1977, SD NY) 444 F Supp 85.
Personal jurisdiction under 46
USCS Appx § 688 is governed by due process minimum contacts test.
Papaioannoiu v Hellenic Lines, Ltd. (1983, ED Pa) 569 F Supp 724.
Complaint by boat captain is
dismissed for lack of personal jurisdiction in action against foreign
owner/operator corporations arising out of injury sustained while boat was in
Panamanian waters, where contacts in forum state were sparse but captain
contended that minimum contacts should be measured against United States
rather than forum state under aggregate contacts theory, because measurement
of minimum contacts with forum state only is emerging trend, particularly in
maritime cases, and contacts were insufficient to make prima facie case that
foreign corporations were amenable to service and subject to personal
jurisdiction under laws and rules of forum state; federal courts are subject
to same Fourteenth Amendment limitations as state courts when service is made
under Rules 4(d)(3, 7), and 4(e). King v McAllister Bros., Inc. (1987, SD Ala)
659 F Supp 39.
Action is dismissed under 46
USCS Appx § 688, where Greek plaintiffs are suing mostly Greek defendants
concerning aid to crew of Greek flag vessel while in Nigeria, because Greece
is more convenient forum. Damigos v Flanders Compania Naviera, S.A. (1989, SD
NY) 716 F Supp 104.
523. Amount in controversy
Where adequate jurisdictional
amounts are averred under 46 USCS Appx § 688, there can be no question of
right to maintain action, regardless of whether or not there is diversity of
citizenship. Mullen v Fitz Simons & Connell Dredge & Dock Co. (1948,
CA7 Ill) 172 F2d 601, cert den 337 US 959, 93 L Ed 1758, 69 S Ct 1534.
Where plaintiff in action under
46 USCS Appx § 688 for damages elects to bring action at law, he must meet
jurisdictional amount requirements of former 28 USCS § 41(1) (now 28 USCS §
1332). Rowley v Sierra S. S. Co. (1942, DC Ohio) 48 F Supp 193.
Under 46 USCS Appx § 688
seaman has benefit of all United States statutes modifying or extending
common-law right or remedy in cases of personal injury to railway employees,
which includes Federal Employers' Liability Act (45 USCS § § 51 et seq.)
that takes jurisdiction under 28 USCS § 1337 and allegation of jurisdictional
amount required by 28 USCS § 1331 is not required; therefore, federal
District Court had jurisdiction in action under 46 USCS Appx § 688 even
though complaint did not allege damages in excess of $ 10,000. Brown v
Sinclair Refining Co. (1964, SD NY) 227 F Supp 714.
When action is brought in
admiralty under Jones Act (46 USCS Appx § 688), jurisdictional amount is not
required; this also applies to actions brought in suit at law. Richardson v
St. Charles-St. John The Baptist Bridge & Ferry Authority (1967, ED La)
274 F Supp 764, 11 FR Serv 2d 110.
46 USCS Appx § 688 is act of
Congress regulating commerce, and under 28 USCS § 1337 no jurisdictional
amount is necessary. Ballard v Moore-McCormack Lines, Inc. (1968, SD NY) 285 F
Supp 290.
524. Diversity of citizenship
Since 46 USCS Appx § 688
provided independent basis for federal jurisdiction against nondiverse
respondent, dismissal of claims in same action against respondents of diverse
citizenship from seaman was erroneous. Romero v International Terminal
Operating Co. (1959) 358 US 354, 3 L Ed 2d 368, 79 S Ct 468, reh den 359 US
962, 3 L Ed 2d 769, 79 S Ct 795.
Seaman may sue under 46 USCS
Appx § 688 in district in which plaintiff resides and defendant has its
principal office, requirement of diversity of citizenship having no
application. Kuhlman v W. & A. Fletcher Co. (1927, CA3 NJ) 20 F2d 465.
Notwithstanding provision
giving federal courts jurisdiction in common-law actions for maritime injuries
only where parties are citizens of different states, action may be brought
under 46 USCS Appx § 688 in district in which employer resides, or in which
his principal office is located, though plaintiff is citizen of the same
state. Johnson v Panama R. Co. (1921, DC NY) 277 F 859.
In action brought under 46 USCS
Appx § 688, power of federal court to exercise jurisdiction over nonresident
defendants in diversity case is governed by law of state in which federal
court sits, with "federal law" applied only for determining whether
state's assertion of jurisdiction violates constitutional guarantees; in cases
arising under Constitution, laws, or treaties of United States, limitations
placed upon courts of state do not apply to federal court sitting in that
state, but if manner of service is not provided for under federal procedures,
state procedures will be followed. Edwards v Gulf Mississippi Marine Corp.
(1978, SD Tex) 449 F Supp 1363.
525. --Pendent, interpleaded,
or joined parties
Federal District Court has no
jurisdiction as between defendant and third person interpleaded as party
primarily liable, both being residents of same state. Wilson v United American
Lines, Inc. (1927, DC NY) 21 F2d 872.
Federal district court did not
have jurisdiction over cause of action based solely upon general maritime law
asserted against nondiversity defendant, by virtue of its joinder with cause
of action under 46 USCS Appx § 688 properly asserted against other
defendants. Maher v Newtown Creek Towing Co. (1961, SD NY) 190 F Supp 933,
1961 AMC 980.
46 USCS Appx § 688 does not
lend itself to finding of congressional permission to assert state law claims
against nondiverse defendants as pendent parties. Wood v Standard Products Co.
(1978, ED Va) 456 F Supp 1098.
526. --Particular circumstances
In action by injured seaman
under Jones Act (46 USCS Appx § 688), District Court in Kentucky has personal
jurisdiction over Indiana corporation which owned barge upon which defendant
was injured, despite fact that corporation's principal place of business was
in West Virginia, where injury occurred in West Virginia waters when seaman
tried to pull "barge wire" aboard barge with assistance of other
seaman. Handley v Indiana & Michigan Electric Co. (1984, CA6 Ky) 732 F2d
1265.
In 46 USCS Appx § 688 action
by alien seaman against alien shipowner for injuries sustained on board alien
ship, diversity to give jurisdiction was lacking. Mproumeriotis v Seacrest
Shipping Co. (1957, DC NY) 149 F Supp 265.
527. Federal question
jurisdiction
Jones Act (46 USCS Appx § 688)
conferred upon seaman right of action which he did not have under general
maritime law and in adjudicating seaman's suit under § 688, District Court
necessarily construes and applies § 688, it will thus be suit arising under
law of United States and subject to federal question jurisdiction. Branic v
Wheeling Steel Corp. (1945, CA3 Pa) 152 F2d 887, cert den 327 US 801, 90 L Ed
1026, 66 S Ct 902.
Where damages claimed in count
under Jones Act (46 USCS Appx § 688) exceeded $ 3,000 (now $ 10,000),
District Court had jurisdiction under 28 USCS § 1331 since it involved
application of law of United States. Jordine v Walling (1950, CA3 Pa) 185 F2d
662.
District Court had subject
matter jurisdiction for negligence claim brought by injured seaman under 46
USCS Appx § 688, where court looked behind facade of operation to actual
operational contacts that ship and owner had with United States. Karvelis v
Constellation Lines S.A. (1986, CA2 NY) 806 F2d 49.
Personal jurisdiction under 46
USCS Appx § 688 is governed by due process minimum contacts test while
subject matter jurisdiction is determined by whether defendant is employer
within meaning of § 688 and if defendant is found to be employer subject to
§ 688, court must then make inquiry as to choice of law applicable in case at
bar; if United States law would not be applied to action, then § 688 does not
apply and there exists no federal question jurisdiction; where important
factors of accident situs and defendant's base of operations weigh in
plaintiff's favor, court may find that plaintiff has carried his burden by
showing preponderance of evidence that federal jurisdiction exists.
Papaioannoiu v Hellenic Lines, Ltd. (1983, ED Pa) 569 F Supp 724.
Seaman seeking recovery for
injuries sustained aboard barge shall either amend his complaint to invoke
jurisdiction over 46 USCS Appx § 688 claim under 28 USCS § 1331 or withdraw
his jury demand, but his demand for jury trial need not be stricken, because
rule in Fitzgeraldprovides right to jury trial of general maritime law claims
brought in admiralty when they are joined with § 688 claims brought on law
side with election of trial by jury. Kathriner v Unisea, Inc. (1990, DC
Alaska) 740 F Supp 768.
528. Pendent jurisdiction
Principles of pendent
jurisdiction permit admiralty matter concerning maintenance and cure to be
pleaded and adjudicated with related Jones Act (46 USCS Appx § 688) claim in
action at law. Leith v Oil Transport Co. (1963, CA3 Pa) 321 F2d 591 (disagreed
with Pure Oil Co. v Suarez (CA5 Fla) 346 F2d 890, affd 384 US 202, 16 L Ed 2d
474, 86 S Ct 1394).
District Court had subject
matter jurisdiction over unseaworthiness claim pendent to its jurisdiction
over claim under Jones Act (46 USCS Appx § 688). Petersen v Chesapeake &
O. R. Co. (1986, CA6 Mich) 784 F2d 732.
Claims against one defendant
under Jones Act and general maritime law can support pendent-party
jurisdiction of state law claim against another, non-diverse defendant.
Feigler v Tidex, Inc. (1987, CA5 La) 826 F2d 1435.
Claims under general maritime
law and for maintenance and cure are regarded as pendent to Jones Act (46 USCS
Appx § 688) claim. Bernardo v Bethlehem Steel Co. (1959, SD NY) 169 F Supp
914, 1 FR Serv 2d 878.
District Court does not have
pendent jurisdiction over action against nondiverse defendant asserted under
general maritime law in action properly brought by plaintiff under Jones Act
(46 USCS Appx § 688) against other defendants. Maher v Newtown Creek Towing
Co. (1961, SD NY) 190 F Supp 933.
Deckhand is granted motion
under 28 USCS § 1447(c) to remand medical malpractice action against
physician and hospital filed in state court, where complaint seek relief
solely under state law, despite defendants' assertion that pendent-party
jurisdiction could be exercised because of close relationship between medical
malpractice action and deckhand's Jones Act action under 46 USCS Appx § 688
against transportation company in which transportation company impleaded
hospital and physician alleging malpractice. Staffer v Staten Island Hospital
(1988, ED NY) 686 F Supp 400.
529. Contacts with United
States required for jurisdiction over foreign parties
Provisions of 46 USCS Appx §
688 are applicable to foreign events, foreign ships, and foreign seamen, only
in accordance with usual doctrine and practices of maritime law; and that
process has been duly served and necessary parties are before court of United
States is not persuasive factor in determining whether application should be
given to 46 USCS Appx § 688 since jurisdiction of maritime cases in all
countries is so wide and nature of its subject matter so far-flung that there
would be no justification for determining law of controversy simply on basis
that local jurisdiction of parties is obtainable; basic criteria upon which to
determine 46 USCS Appx § 688 jurisdiction as affected by nationality of
seaman, vessel owner, or place of injury are: (1) place of wrongful act; (2)
law of flag; (3) allegiance or domicil of injured person; (4) allegiance of
defendant ship owner; (5) place of contract; (6) inaccessibility of foreign
forum; and (7) law of forum. Lauritzen v Larsen (1953) 345 US 571, 97 L Ed
1254, 73 S Ct 921.
District Court acted within its
sound discretion in declining to assume jurisdiction of in rem proceeding by
Brazilian seaman against Swedish vessel for injury allegedly resulting from
negligence and unseaworthiness, especially since Swedish consul stood ready to
compensate seaman for injury. The Falco (1927, CA2 NY) 20 F2d 362, 1927 AMC
1474.
Circumstances sufficient to
commit court to assume personal jurisdiction over shipowner may not be
sufficient to obtain jurisdiction over Jones Act (46 USCS § 688) subject
matter, thus, where shipowner maintains American agent and banking account,
mere service of process does not perfect subject matter jurisdiction and Jones
Act is not applicable. Dassigienis v Cosmos Carriers & Trading Corp.
(1971, CA2 NY) 442 F2d 1016.
Jurisdiction is properly denied
in claim under 46 USCS Appx § 688, where only significant contact was that
place of contract was United States. Fitzgerald v Liberian S/T Chryssi P.
Goulandris (1978, CA4 Va) 582 F2d 312.
In wrongful death action
brought under Jones Act (46 USCS Appx § 688) and general maritime law,
arising out of suffocation of decedent Greek national by carbon dioxide
fire-extinguishing system while combating engine room fire of vessel which was
Liberian owned and Panamanian registered, United States law is properly
applied where accident occurs in American port, where vessel's entire business
activity after purchase by Liberian interests has been in United States, and
where decedent flies to United States to join vessel immediately after being
hired works his entire service on vessel in United States port prior to
accident. Fisher v The Agios Nicolaos V (1980, CA5 Tex) 628 F2d 308, 68 ALR
Fed 342, reh den (CA5 Tex) 636 F2d 1107 and cert den 454 US 816, 70 L Ed 2d
84, 102 S Ct 92, reh den 454 US 1129, 71 L Ed 2d 117, 102 S Ct 982.
Contacts necessary to create
American base of operations must be substantial; foreign owner must be engaged
in extensive business operation in this country; important consideration for
determining base of operations is location at which day-to-day operating
activities are conducted; mere use of American husbanding agents or brokers
who contract in American ports for use of foreign ship's services is
insufficient to establish American base of operations; fact that foreign
vessels have called at United States ports do not support finding of American
base of operations; mere existence of temporary restraining order against
foreign vessel and fact that vessel is plaintiff in another lawsuit has not
relevance to establishment of American base of operations. Diaz v Humboldt
(1984, CA5 La) 722 F2d 1216.
Although not expressly noted in
46 USCS Appx § 688, cause of action does not require presence of navigable
body of water in order to conver federal jurisdiction. Oseredzuk v Warner Co.
(1972, ED Pa) 354 F Supp 453, affd without op (CA3 Pa) 485 F2d 680, cert den
415 US 977, 39 L Ed 2d 873, 94 S Ct 1563.
In Jones Act (46 USCS Appx §
688) personal injury action, jurisdiction under Act does not exist where (1)
accident occurs in Brazilian national waters, (2) accident occurs on vessel
under Panamanian charter, (3) plaintiff is Brazilian citizen, (4) vessel is
operated by Brazilian corporation, and (5) plaintiff executes employment
contract in Brazil; fact that Brazilian employer and operator of vessel is
wholly owned subsidiary of American corporation is insufficient relationship
to warrant application of Jones Act jurisdiction where no facts exist to
negate corporate separateness of Brazilian employer-subsidiary. Dos Santos v
Reading & Bates Drilling Co. (1980, ED La) 495 F Supp 843.
Contacts with United States are
insufficient to subject defendants to jurisdiction in Jones Act (46 USCS Appx
§ 688) action where plaintiff is citizen and resident of Venezuela who seeks
recovery for injuries allegedly suffered while employed on barge owned by
Venezuelean company, which is operated on waters of internal lake in Venezuela
and which can not legally be operated outside of lake. Villalobos v Loffland
Bros. Co. (1981, SD NY) 507 F Supp 904.
Seaman's claim brought pursuant
to Jones Act (46 USCS Appx § 688) is dismissed for lack of subject matter
jurisdiction, where seaman sustained injuries aboard vessel and vessel's
ownership and operation, as well as certification, residence and base of
operations of its owners are all foreign, because facts that Norwegian
national plaintiff had taken up residence in Miami and signed on as First
Assistant Engineer for vessel there are insufficient to supply Jones Act
jurisdiction, particularly since employment contract, expressly made subject
to Norwegian law, required that seaman's dispute with vessel owner be referred
to Norwegian Foreign Service Station and "not be brought before foreign
authorities." Tarasenko v Cardigan Shipping Co. (1987, SD NY) 671 F Supp
997.
Allegations by estate of
deceased seaman are enough to avoid summary dismissal for lack of personal
jurisdiction, where estate asserts that defendant is owner of foreign direct
owner of ship seaman was injured on and that defendant controls large shipping
operation from specific location in New York City, because estate provides
sufficient grounds to allow limited discovery on issues of whether defendant
was beneficial owner of ship and employer of defendant. Gazis v John S.
Latsis, Inc. (1990, SD NY) 729 F Supp 979.
Foreign ship owners' motions to
dismiss were granted in asbestos action brought by widow of seaman, where
shipowners were not doing business in state at time suit was filed as required
by state long-arm statute, since personal jurisdiction under Jones Act (46
USCS Appx § 688) depends on national contacts and on defendant being subject
to jurisdiction of state where court is located. Penny v United Fruit Co.
(1994, ED NY) 869 F Supp 122, 1995 AMC 652.
C. Venue
1. In General
530. Generally
Nothing in legislative history
of venue provision of 46 USCS Appx § 688 indicates that its framers meant to
use term "residence" as anything more than reference to more general
doctrines of venue rules, which might alter in future. Pure Oil Co. v Suarez
(1966) 384 US 202, 16 L Ed 2d 474, 86 S Ct 1394.
Although special venue
provision of 46 USCS Appx § 688 reads in jurisdictional terms, it refers to
venue only; venue provisions of § 688 should receive treatment consistent
with liberal application of that legislation. Penrod Drilling Co. v Johnson
(1969, CA5 Tex) 414 F2d 1217, cert den 396 US 1003, 24 L Ed 2d 495, 90 S Ct
552.
Venue requirement of 46 USCS
Appx § 688 does not dictate only forum in which action may be tried; venue
provisions merely confer upon defendant personal privilege which may be
waived. Hill v Upper Mississippi Towing Corp. (1956, DC Minn) 141 F Supp 692.
531. Applicability to other
actions
Venue provision of 46 USCS Appx
§ 688 is controlling when combined negligence and unseaworthiness claim is
filed as civil action, but is not controlling when same subject matter is
incorporated in libel in admiralty. Leith v Oil Transport Co. (1963, CA3 Pa)
321 F2d 591 (disagreed with Pure Oil Co. v Suarez (CA5 Fla) 346 F2d 890, affd
384 US 202, 16 L Ed 2d 474, 86 S Ct 1394).
Venue of common law action must
be governed by 46 USCS Appx § 688. Wiss v Booth Fisheries Co. (1929, DC Or)
1929 AMC 1477.
When Jones Act (46 USCS Appx §
688) claim is combined with unseaworthiness allegation, and filed as civil
action, venue provisions of § 688 are controlling. White v Waxler Towing Co.
(1965, ND Ill) 250 F Supp 320.
532. --Suits in admiralty
Where seaman commences his
action by libel in admiralty, but properly claims benefits of 46 USCS Appx §
688 in connection therewith, he is not required to follow venue provisions of
46 USCS Appx § 688. Brown v C. D. Mallory & Co. (1941, CA3 Pa) 122 F2d
98; Bennett v Standard Oil Co. (1940, DC Md) 33 F Supp 871; Evans v Nicholson
Transit Co. (1944, DC Ohio) 58 F Supp 82; Paschal v North Atlantic & Gulf
S. S. Co. (1950, DC NY) 95 F Supp 293; Blanco v Gulf Coast Transp., Inc.
(1964, WD La) 235 F Supp 197.
Where suit is brought in
admiralty, and benefit of 46 USCS Appx § 688 is claimed, it is not essential
that suit be brought in district where defendant resides or has his principal
place of business. McDaniel v Baker Sand & Gravel Co. (1928, DC Ala) 24
F2d 987; Frieda (1937, DC Pa) 1937 AMC 227.
In suit in admiralty by seaman
for damages for personal injuries and for award of maintenance, venue rests in
any District Court where process may be served, so long as libellant acts in
good faith and continues to rest in such court within which process has been
served, even though libellant intends to avail himself of additional admiralty
rights bestowed upon seamen by 46 USCS Appx § 688. McKola v McCormick S. S.
Co. (1938, DC Cal) 24 F Supp 378, 1938 AMC 904.
In admiralty suit, venue
provision of 46 USCS Appx § 688 does not apply, and there is no right to jury
trial. Crookham v Muick (1965, WD Pa) 246 F Supp 288, 1966 AMC 1522.
533. State court action
Venue provision of 46 USCS Appx
§ 688 is not applicable when suit is in state court. Engel v Davenport (1926)
271 US 33, 70 L Ed 813, 46 S Ct 410; Panama R. Co. v Vasquez (1926) 271 US
557, 70 L Ed 1085, 46 S Ct 596; Bainbridge v Merchants & Miners Transp.
Co. (1932) 287 US 278, 77 L Ed 302, 53 S Ct 159.
In 46 USCS Appx § 688,
Congress did not by words "the court of the district in which the
employer defendant resides or in which his principal office is located"
mean federal court district when action is brought in state court, and when
action is brought in New York state courts, county in which defendant resides
or has his principal office is district for purpose of determining where
actions are to be brought. Villard v United States Shipping Board Emergency
Fleet Corp. (1924, DC NY) 1 F2d 570.
Provision as to district of
suit is not literally applicable where suit is in state court; even if word
"district" is to be construed as "county" as applied to
state courts, bringing of action in wrong county in New York is not ground for
dismissal, but only for motion to change place of trial. Jacobsen v United
States Shipping Board Emergency Fleet Corp. (1926) 128 Misc 138, 217 NYS 856.
534. Transfer of venue
Plaintiff will not be allowed
to transfer venue in action under 46 USCS Appx § 688 solely by stating that
he resides in other state and that all witnesses and records are located in
other state and it is not alleged that he will be unduly inconvenienced by
litigating case in original forum and furthermore case was 3 years old and at
top of trial list in original forum. Berger v Grace Line, Inc. (1971, ED Pa)
343 F Supp 755, affd (CA3 Pa) 474 F2d 1339.
Venue was transferred from
Eastern District of Pennsylvania to Eastern District of Nort Carolina in
action under 46 USCS Appx § 688 by operation of 28 USCS § 1404(a) where
medical witnesses resided and were subject to jurisdiction of court to which
action was transferred and defendant needed transfer in order to join third
party defendant. Kellum v United States Lines, Inc. (1973, ED Pa) 365 F Supp
1026.
Jones Act action brought in
Pennsylvania would be transferred to New Jersey on motion of defendant where
defendant would be able to implead third-party defendant in latter state and
plaintiff had no important, legally cognizable stake in his choice of
Pennsylvania federal court as forum for action. Biggers v Borden, Inc. (1979,
ED Pa) 475 F Supp 333.
535. --Particular circumstances
Dismissal without prejudice in
district court of crew member's libel in personam against shipowner and in rem
against vessel, without prejudice to permit refiling in another court was not
abuse of discretion. The S.S. Bethflor v Thomas (1966, CA5 Tex) 364 F2d 634,
1966 AMC 1897.
Sailor filed suit for damages
under 46 USCS Appx § 688 to recover from defendant, Delaware corporation,
whose principal office was in Missouri, but which also transacted business in
Louisiana; plaintiff could have filed suit in Louisiana, since corporation can
be sued anywhere it is doing business; hence defendant was entitled to move
for transfer to Louisiana for convenience of parties, and in interest of
justice. Bounds v Streckfus Steamers, Inc. (1950, DC Del) 89 F Supp 242.
In suit by seaman for damages
against owner of vessel, case would be transferred from New York to
California, where plaintiff was California resident defendant maintained its
office in California, and all crew members lived on west coast. Ortiz v Union
Oil Co. (1952, DC NY) 102 F Supp 492.
In motion to transfer under 28
USCS § 1404(a) applicable to action under 46 USCS Appx § 688, defendant has
substantial burden of showing that he is entitled to transfer, on grounds of
inconvenience, plaintiff's residence and fact that accident occurred in India
and bar memberships of plaintiff's counsel are irrelevant to show that
defendant will be inconvenienced by trial in original forum and remaining
contentions of defendant are mere conclusions of expected inconvenience
without showing in which way defendant will be inconvenienced or how
substantially it or any witnesses will be inconvenienced. Rodriguez v American
Export Lines, Inc. (1966, ED Pa) 253 F Supp 36.
46 USCS Appx § 688 action was
transferred from Pittsburgh to Eastern District of Kentucky where accident
occurred in Texas intercoastal canal, home port of vessel was in Kentucky,
defendant was Kentucky corporation having its principal place of business in
Kentucky, most of crew members who would be potential witnesses for defendant
lived in or near Kentucky, and plaintiff was examined by physicians after his
injury in Kentucky. Bishop v Ashland Oil, Inc. (1975, WD Pa) 394 F Supp 203.
Action under 46 USCS Appx §
688 brought by cadet-trainee at United States Merchant Marine Academy for
injuries received while aboard defendant's vessel would not be transferred to
Eastern District of Louisiana site of defendant's headquarters, where
plaintiff has substantial connection with forum district and where defendant
accepts cadets from academy on regular basis giving rise to reasonable
expectations that suits by cadet-trainees will be instituted in this forum
even though most witnesses are in Lousisiana. Drees v Lykes Bros. S.S. Co.
(1980, SD NY) 500 F Supp 15.
536. Waiver of objection to
venue
Defect as to venue may be
waived and state court procedure governs as to waiver. Mannion v United States
Shipping Bd. Emergency Fleet Corp. (1925, CA2 NY) 9 F2d 894.
Jurisdiction under 46 USCS Appx
§ 688 is exclusively in court of district of defendant's residence or
principal office and cannot be conferred on court of another district by
waiver. Barrington v Pacific S. S. Co. (1922, DC Or) 282 F 900.
In action under 46 USCS Appx §
688, venue requirements may be waived. Goetz v Interlake S.S. Co. (1931, DC
NY) 47 F2d 753; Burris v Matson Nav. Co. (1940, DC NY) 37 F Supp 648, 1941 AMC
121.
In libel in admiralty by seaman
to recover damages under 46 USCS Appx § 688, service of process on statutory
resident agent of nonresident employer was good, appointment of statutory
resident agent being equivalent to waiver of venue limitation of 46 USCS Appx
§ 688. Bennett v Standard Oil Co. (1940, DC Md) 33 F Supp 871, 1940 AMC 1141.
Provisions of 46 USCS Appx §
688 that "Jurisdiction in such actions shall be under the court of the
district in which the defendant employer resides or in which his principal
office is located" is venue provision which may be waived, and, under
analogous law dealing with nonresident motorists, was waived by defendant's
use of waterways of Illinois. Frase v Columbia Transp. Co. (1957, DC Ill) 158
F Supp 858, 1957 AMC 2438.
537. --Absence or form of
appearance
Objection that action was not
brought in district of defendant's residence or principal office goes to venue
only and may be waived by general appearance. Panama R. Co. v Johnson (1924)
264 US 375, 68 L Ed 748, 44 S Ct 391, 1924 AMC 551.
Defense of improper venue was
not waived by special appearance of defendant and posting of bond to dissolve
attachment. Branic v Wheeling Steel Corp. (1945, CA3 Pa) 152 F2d 887, 1946 AMC
66, cert den 327 US 801, 90 L Ed 1026, 66 S Ct 902.
Since defendant did not appear
generally or answer, he waives all defenses or objections to service of
summons, or venue. Zwerling v New York & Cuba Mail S.S. Co. (1940, DC NY)
33 F Supp 721, 1941 AMC 155.
2. Bases of Venue
538. Generally
Where plaintiff commenced
action in district where he lived, by virtue of diversity jurisdiction, basing
his claim both on unseaworthiness and 46 USCS Appx § 688, complaint must be
dismissed unless plaintiff abandons his cause of action under 46 USCS Appx §
688, where defendant neither resided nor had principal office in district
where plaintiff sued. Branic v Wheeling Steel Corp. (1945, CA3 Pa) 152 F2d
887, cert den 327 US 801, 90 L Ed 1026, 66 S Ct 902.
46 USCS Appx § 688 action must
be brought in district in which defendant employer resides or in which his
principal office is located. Peters v Detroit v Cleveland Nav. Co. (1927, DC
NY) 24 F2d 454; Bannon v Seaboard A. L. R. Co. (1930, DC Ga) 52 F2d 886, 1931
AMC 1263; Davenport v Sinclair Nav. Co. (1939, DC Pa) 30 F Supp 191; Smith v
Nicholson Universal S. S. Co. (1941, DC NY) 42 F Supp 1001, 1942 AMC 466;
Macomber v De Bardeleben Coal Co. (1941, La App, Orleans) 4 So 2d 483, 1942
AMC 41, revd on other grounds 200 La 633, 8 So 2d 624, cert den 317 US 661, 87
L Ed 532, 63 S Ct 61.
539. Partnerships and
unincorporated associations
Alternative "principal
office" venue provision of 46 USCS Appx § 688, although superfluous as
regards corporate employers, continues to serve its original purpose when
defendant employer is not corporation. Pure Oil Co. v Suarez (1966) 384 US
202, 16 L Ed 2d 474, 86 S Ct 1394.
Under venue provision of 46
USCS Appx § 688, action against partnership may be brought either in district
where principal office of partnership is located, or in district where any
partner resides. McCullough v Jannson (1923, CA9 Or) 292 F 377, error dismd
267 US 608, 69 L Ed 812, 45 S Ct 350.
For venue purposes there is no
recognizable difference between unincorporated partnership and unincorporated
association; multistate unincorporated business organization has residence for
venue purposes in district in which it is doing business even though not
location of its principal office or place where its owner-partners live.
Penrod Drilling Co. v Johnson (1969, CA5 Tex) 414 F2d 1217, cert den 396 US
1003, 24 L Ed 2d 495, 90 S Ct 552.
Action under 46 USCS Appx §
688 against partnership employer brought in district where it had its
principal place of business must be dismissed for want of proper venue, where
such employer's "principal office" was shown to be in another
district. Harmon v Boland (1950, DC NY) 90 F Supp 559.
540. Corporate defendants
Record showed that steamship
company incorporated under laws of New York had office in New York, and
therefore, court would assume, in absence of objection, that its principal
office was located in New York. Carroll v United States (1943, CA2 NY) 133 F2d
690, 1943 AMC 339.
Federal court in New York was
without jurisdiction of action under 46 USCS Appx § 688 by Louisiana citizen
against New Jersey corporation with place of business in Massachusetts.
Summerall v United Fruit Co. (1935, DC NY) 11 F Supp 963, 1935 AMC 1202, affd
(CA2 NY) 80 F2d 1020, 1936 AMC 199, cert den 298 US 658, 80 L Ed 1384, 56 S Ct
680.
Federal District Court for
northern district of California did not have jurisdiction of action brought
against corporation located and doing business in southern district of that
state. Spence v Lawrence-Phillips S. S. Co. (1935, DC Cal) 1935 AMC 215.
Complaint alleging that
defendant was incorporated in state other than Pennsylvania and had its
principal office in Texas was dismissed by district court in Pennsylvania for
improper venue under 46 USCS Appx § 688. Hartley v Sioux City & New
Orleans Barge Lines, Inc. (1965, WD Pa) 247 F Supp 1015, 1966 AMC 649, affd
(CA3 Pa) 379 F2d 354, 10 FR Serv 2d 33, 1968 AMC 474.
541. --Applicability of 28 USCS
§ 1391
Definition of residence in
general venue statute, 28 USCS § 1391(c), providing that corporation may be
sued in any judicial district in which it is doing business, is applicable to
seaman's action under 46 USCS Appx § 688 against corporation, notwithstanding
venue provision thereof conferring jurisdiction upon court of district in
which defendant employer resides or in which his principal office is located.
Pure Oil Co. v Suarez (1966) 384 US 202, 16 L Ed 2d 474, 86 S Ct 1394.
Venue provisions of 28 USCS §
1391(c) apply to actions under 46 USCS Appx § 688. Pierce v Elk Towing Co.
(1966, CA3 Pa) 364 F2d 504; De Mateos v Texaco, Inc. (1977, CA3 Pa) 562 F2d
895, cert den 435 US 904, 55 L Ed 2d 494, 98 S Ct 1449.
Venue is proper under 28 USCS
§ 1391(c), and consequently 46 USCS Appx § 688 in every district of state in
which corporate defendant is incorporated. Davis v Hill Engineering, Inc.
(1977, CA5 Tex) 549 F2d 314, reh den (CA5 Tex) 554 F2d 1065 and (ovrld on
other grounds Culver v Slater Boat Co. (CA5 La) 688 F2d 280, op withdrawn, in
part (CA5 La) 722 F2d 114, cert den 467 US 1252, 82 L Ed 2d 842, 104 S Ct 3537
and cert den (US) 83 L Ed 2d 37, 105 S Ct 90).
Defendant corporation in
proceeding under 46 USCS Appx § 688 may be sued in any district where it is
incorporated or is doing business, pursuant to provisions of 28 USCS § §
1391 et seq., and 1651 et seq. Leffellad v Detroit & Cleveland Nav. Co.
(1926, DC NY) 16 F2d 1011; Bagner v Blidberg Rothchild Co. (1949, DC Pa) 84 F
Supp 973; Mincy v Detroit & Cleveland Navigation Co. (1950, DC NY) 94 F
Supp 456, 1950 AMC 1843; Phillips v Pope & Talbot, Inc. (1952, DC NY) 102
F Supp 51.
Provision of 28 USCS § 1391(c)
expanding definition of residence of corporation to include districts in which
it is doing business, is applicable to cases under 46 USCS Appx § 688 and
authorizes bringing of action in court of district other than one in which
corporate employer has its principal place of business. Garland v Alaska S. S.
Co. (1961, DC Alaska) 194 F Supp 792, 1963 AMC 2616.
Since United States Supreme
Court has held that definition of "residence" in 28 USCS § 1391(c)
applies to venue provision in 46 USCS Appx § 688 permitting suit in
"district in which the defendant employer resides" and since
defendant was incorporated or licensed to do business in Texas, venue in
Eastern District of Texas was proper as corporation incorporated or licensed
to do business in state may be sued in each district of that state;
defendant's contention that venue was proper only in Southern District of
Texas, residence of defendant's agent for service of process, was mistaken.
Bailiff v Storm Drilling Corp. (1972, ED Tex) 356 F Supp 309.
542. --"Principal
office" defined
Maintenance of office merely
for solicitation of business by officers or agents, orders to be executed at
home office, did not amount to having principal office or regular and
established place of business within district. Stein v Standard Oil Co. (1929,
DC NY) 36 F2d 258, 1929 AMC 1524.
Principal office as applied to
corporations means head office, place where principal officers generally
transact business, and place to which reports are made and from which orders
emanate. Ebanks v Grace Line, Inc. (1947, DC NY) 73 F Supp 749.
543. --Point in time at which
corporation is doing business in district
Summons and complaint served on
state official and copy mailed to defendant foreign corporation in compliance
with state statute was valid service, and federal District Court had
jurisdiction over foreign corporation in diversity action for damages under 46
USCS Appx § 688 even though corporation which had been doing business in
state at time of injury was not doing business in state at time of
commencement of action or at the time of such service of process. Bloomfield v
Paramount Pictures Corp. (West Coast Studios) (1964, DC Hawaii) 228 F Supp
715, 1966 AMC 827.
Venue of action under 46 USCS
Appx § 688 was properly laid under 46 USCS Appx § 688 and 45 USCS § 56 in
district in which defendant was doing business at commencement of action.
Blanco v Gulf Coast Transp. Inc. (1964, WD La) 235 F Supp 197, 1965 AMC 2406.
Jones Act (46 USCS Appx § 688)
claim brought by father of drowned seaman will not be dismissed for improper
venue, where it is unclear from fishing vessel lease extent to which
defendants maintained control over or responsibility for leased vessel and its
Texas operations, because it is impossible at this stage to determine whether
defendants were "doing business" in coastal waters of Texas during
1998 red snapper season. Ghio v Jambon (1998, SD Tex) 23 F Supp 2d 724.
544. --Agents for corporation
Summons was served on manager
of company, subagents for corporation, at its office in Providence; defendant
moved to vacate and quash attempted service of summons and to dismiss case for
want of jurisdiction because defendant was Washington corporation and not
doing business in Rhode Island; motion was granted on testimony of manager,
upon whom service was made, that he had no instructions with regard to vessel
from corporation and that his company was acting as agent for vessel under
appointment from another steamship line which was acting as agent of
corporation. Andrade v American Mail Lines, Ltd. (1947, DC RI) 71 F Supp 201.
545. --Alien corporations
Jurisdictional provision of 46
USCS Appx § 688 must be liberally construed; consequently alien corporation
with branch office at United States port may be sued there or any other place
where it does business and service may be had on its authorized agent. Arthur
v Compagnie Generale Transatlantique (1934, CA5 Canal Zone) 72 F2d 662, 1934
AMC 1199.
46 USCS Appx § 688 permits
suit against corporation of another country at place where such corporation
has its principal office in United States. Stewart v Pacific Steam Navigation
Co. (1924, DC NY) 3 F2d 329, 1924 AMC 1272.
546. --Dissolved corporations
Venue provisions of 46 USCS
Appx § 688 apply to dissolved corporation or one in process of dissolution.
Antonana v Ore S.S. Corp. (1956, DC NY) 144 F Supp 486; Maitland v C.D.
Mallory and Co. (1941, DC NY) 1941 AMC 885.
3. Forum Non Conveniens
547. Generally
While underlying principles of
forum non conveniens doctrine are well established, each case must be decided
on its peculiar factual setting and District Court's determination that
defendant shipowner has substantial base of operations in United States is
factual finding that should not be disturbed on review unless clearly
erroneous. Szumlicz v Norwegian America Line, Inc. (1983, CA11 Fla) 698 F2d
1192.
Because forum non conveniens
was defense solely available to foreign defendant in federal forum, and
because they did not waive that defense by untimely assertion, District Court
erred in permitting plaintiff to voluntarily dismiss federal claim without
prejudice to bringing action in state that does not recognize that defense;
this was so despite fact that state's position was clearly in conflict with
federal law, because court will not make defendants guinea pigs in effort to
overturn state law. Ikospentakis v Thalassic S.S. Agency (1990, CA5 La) 915
F2d 176.
Doctrine of forum non
conveniens is inapplicable to Jones Act, which contains special provision
mandating venue in United States courts. Creative Technology v Aztech Sys. PTE
(1995, CA9 Cal) 61 F3d 696, 95 CDOS 5751, 95 Daily Journal DAR 9814, 35 USPQ2d
1590.
State rules on forum non
conveniens govern in actions under 46 USCS Appx § 688. Norfolk & W. R.
Co. v Beatty (1975, SD Ill) 400 F Supp 234, affd 423 US 1009, 46 L Ed 2d 381,
96 S Ct 439.
Doctrine of forum non
conveniens raises issue of choice of law, thus, whether court maintains
jurisdiction or dismisses case depends upon substantiality of contacts between
injury and United States. Iriah v J. Ray McDermott & Co. (1979, DC Tex)
1979 AMC 1219.
Jones Act does not preclude
dismissal of case under doctrine of forum non conveniens. Sherrill v
Brinkerhoff Maritime Drilling (1985, ND Cal) 615 F Supp 1021.
548. Applicability of doctrine
where Jones Act applies
Federal law does not pre-empt
state law regarding doctrine of forum non conveniens in admiralty cases filed
in state court under Jones Act (46 USCS Appx § 688), which authorizes seaman
who suffers personal injury in course of employment to bring action for
damages at law, and clause of 28 USCS § 1333(1) which provides for exclusive
federal jurisdiction over admiralty cases while "saving to suitors"
all other remedies to which they are otherwise entitled. American Dredging Co.
v Miller (1994, US) 127 L Ed 2d 285, 114 S Ct 981, 94 CDOS 1288, 93 Daily
Journal DAR 2371, 1994 AMC 913, 7 FLW Fed S 754.
District Court has no power to
dismiss on grounds of forum non conveniens where 46 USCS Appx § 688 is
applicable. Antypas v Cia. Maritima San Basilio, S. A. (1976, CA2 NY) 541 F2d
307, cert den 429 US 1098, 51 L Ed 2d 545, 97 S Ct 1116 and (disagreed with De
Mateos v Texaco, Inc. (CA3 Pa) 562 F2d 895, cert den 435 US 904, 55 L Ed 2d
494, 98 S Ct 1449) and (disagreed with Chiazor v Transworld Drilling Co. (CA5
La) 648 F2d 1015, reh den (CA5 La) 659 F2d 1075 and cert den 455 US 1019, 72 L
Ed 2d 136, 102 S Ct 1714) as stated in Vaz Borralho v Keydril Co. (CA5 Tex)
696 F2d 379, reh den (CA5 Tex) 710 F2d 207 and (disagreed with Tallentire v
Offshore Logistics, Inc. (CA5 La) 754 F2d 1274, revd on other grounds (US) 91
L Ed 2d 174, 106 S Ct 2485) and (disagreed with Cruz v Maritime Co. of
Philippines (CA2 NY) 702 F2d 47 (disagreed with Pereira v Utah Transport, Inc.
(CA9 Cal) 764 F2d 686, cert dismd (US) 89 L Ed 2d 362, 106 S Ct 1253)).
Jones Act (46 USCS Appx § 688)
does not prohibit District Court from dismissing case on ground of forum non
conveniens; District Court no longer need first determine whether Jones Act
applies before resolving forum non conveniens motion. Cruz v Maritime Co. of
Philippines (1983, CA2 NY) 702 F2d 47 (disagreed with Pereira v Utah
Transport, Inc. (CA9 Cal) 764 F2d 686, cert dismd (US) 89 L Ed 2d 362, 106 S
Ct 1253).
If Jones Act applies to
seamen's claim, dismissal for forum non conveniens is precluded. Zipfel v
Halliburton Co. (1987, CA9 Cal) 820 F2d 1438.
When Jones Act applies to
seaman's claim, claim may not be dismissed on ground of forum non conveniens.
Zipfel v Halliburton Co. (1987, CA9 Cal) 832 F2d 1477.
Court has no power to dismiss
case on grounds of forum non conveniens action where Jones Act (46 USCS Appx
§ 688) is otherwise found applicable, no matter how inconvenient forum may be
to parties or to witnesses. Pavlou v Ocean Traders Marine Corp. (1962, SD NY)
211 F Supp 320.
549. Discretion of court
Dismissal of Jones Act suit
does not rest in discretion of trial judge, since facts of case either warrant
application of Act or they do not; once Act is found applicable, court's power
to adjudicate must be exercised. Bartholomew v Universe Tankships, Inc. (1959,
CA2 NY) 263 F2d 437, 1 FR Serv 2d 621, cert den 359 US 1000, 3 L Ed 2d 1030,
79 S Ct 1138 and (disagreed with on other grounds De Mateos v Texaco, Inc.
(CA3 Pa) 562 F2d 895, cert den 435 US 904, 55 L Ed 2d 494, 98 S Ct 1449) and
(disagreed with on other grounds Chiazor v Transworld Drilling Co. (CA5 La)
648 F2d 1015, reh den (CA5 La) 659 F2d 1075 and cert den 455 US 1019, 72 L Ed
2d 136, 102 S Ct 1714) as stated in Vaz Borralho v Keydril Co. (CA5 Tex) 696
F2d 379, reh den (CA5 Tex) 710 F2d 207 and (disagreed with Tallentire v
Offshore Logistics, Inc. (CA5 La) 754 F2d 1274, revd on other grounds (US) 91
L Ed 2d 174, 106 S Ct 2485).
When court determines that
foreign law applies to case, it should consider various private and public
interest involved before dismissing case for forum non conveniens; this
determination is committed to sound discretion of trial court and on appeal,
court may reverse District Court's decision on motion to dismiss for forum non
conveniens only if its action constitutes clear abuse of discretion. Diaz v
Humboldt (1984, CA5 La) 722 F2d 1216.
District Court abused its
discretion by deciding forum non conveniens motions in 3 consolidated personal
injury admiralty suits without first making choice of law determination.
McClelland Engineers, Inc. v Munusamy (1986, CA5 Tex) 784 F2d 1313.
District Court has no
discretion under doctrine of forum non conveniens to dismiss or transfer 46
USCS § Appx 688 claim where American contacts are sufficient to warrant
application of American law. Mattes v National Hellenic American Line, S. A.
(1977, SD NY) 427 F Supp 619.
In action where plaintiff
asserts that 46 USCS Appx § 688 and general maritime law of United States
governs case, and where defendant asserts that law of foreign nation apply, if
§ 688 and general maritime law of United States apply, then court is without
power to dismiss on grounds of forum non conveniens but if on other hand,
foreign nation law applies, then court is required to exercise its discretion
to determine whether or not matter should be dismissed and parties directed to
litigate in different forum. Cruz v Maritime Co. of Philippines (1982, SD NY)
549 F Supp 285, affd (CA2 NY) 702 F2d 47 (disagreed with Pereira v Utah
Transport, Inc. (CA9 Cal) 764 F2d 686, cert dismd (US) 89 L Ed 2d 362, 106 S
Ct 1253).