A.O.A. v. Doe Run Resources Corp.

833 F. Supp. 2d 1126, 2011 WL 2553259, 2011 U.S. Dist. LEXIS 66691
CourtDistrict Court, E.D. Missouri
DecidedJune 22, 2011
DocketCase Nos. 4:11CV44 CDP, 4:11CV45 CDP, 4:11CV46 CDP, 4:11CV47 CDP, 4:11CV48 CDP, 4:11CV49 CDP, 4:11CV50 CDP, 4:11CV52 CDP, 4:11CV55 CDP, 4:11CV56 CDP, 4:11CV59 CDP
StatusPublished
Cited by1 cases

This text of 833 F. Supp. 2d 1126 (A.O.A. v. Doe Run Resources Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.O.A. v. Doe Run Resources Corp., 833 F. Supp. 2d 1126, 2011 WL 2553259, 2011 U.S. Dist. LEXIS 66691 (E.D. Mo. 2011).

Opinion

MEMORANDUM OPINION

CATHERINE D. PERRY, District Judge.

Plaintiffs are numerous Peruvian children who allege that they have been injured by exposure to toxic substances from the La Oroya Complex, a metallurgical smelting and refining complex operating in La Oroya, Peru. Through their next friends, they filed these eleven actions in Missouri state court, alleging state tort claims against the American companies who they say control the mine. Defendants The Renco Group Inc., DR Acquisition Corporation, Renco Holdings Inc., and Ira L. Rennet removed the case on January 7, 2011, claiming that plaintiffs’ actions are related to an arbitration currently set between The Renco Group and the government of Peru, and that the cases are therefore removable under the Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

Plaintiffs move to remand the cases, contending that defendants are procedurally barred from removing the cases under general removal law and that their claims are not related to the pending arbitration between The Renco Group and Peru! I conclude that plaintiffs’ actions are related to the pending arbitration, and that defendants are not procedurally barred from removing these cases. Accordingly, I will [1128]*1128deny plaintiffs’ motions to remand the eases by separate Orders.

Background

The La Oroya Complex has been operating in La Oroya, Peru for almost 100 years. Originally founded in 1922 by a private company, the Complex consists of smelters and refineries that process minerals mined from the Andes mountains into copper, lead, zinc, and other metals. The government of Peru expropriated the Complex in 1974 and transferred its ownership and operations to Centromin, a Peruvian government-owned company. In the 1990s, Centromin began studying the Complex’s environmental impacts on La Oroya and its surrounding area. These studies revealed significant pollution of the environment, including lead contamination in the soil, and culminated in a set of environmental proposals and projects designed to improve the environment. The proposals were codified into Peruvian law as the Programa de Adecación y Manejo Ambiental (PAMA), which required Centromin to complete certain environmental projects around the Complex by 2007.

In 1997, defendant The Renco Group (Renco) and other American investors purchased the Complex from Centromin pursuant to a Share Transfer Agreement. Centromin agreed to continue some environmental clean-up projects begun under PAMA, including remedying the environment around the La Oroya Complex. Centromin also agreed to assume all liability for any claims by third parties arising from their toxic emissions released before the sale. Peru guaranteed Centromin’s agreements in a separate Guaranty. Renco and the investors agreed to continue some clean-up efforts, and to be responsible to third parties for any damages they alone caused.

Plaintiffs are children from La Oroya, Peru who allege they were injured by exposure to toxic substances emitted from the Complex, including lead. For several years they and numerous other Peruvian children have brought claims against the American companies that purchased and invested in the Complex, including defendants The Renco Group, Doe Run Resources Corporation, D.R. Acquisition Corporation, and Renco Holdings. They also have sued several executives at these companies — Marvin Kaiser, Albert Bruce Neil, Jeffrey Zelms, Theodore Fox, Daniel Vornberg, and Ira Rennert. Plaintiffs allege that these defendants are responsible for the toxic emissions that have caused their injuries. Defendants have unsuccessfully attempted removal of the cases several times.

The first case was filed on October 4, 2007 in Missouri state court by Sisters Kate Reid and Megan Heeney as next friends of 137 Peruvian citizens. Doe Run Resources Corporation, D.R. Acquisition Corporation, Marvin Kaiser, Albert Bruce Neil, Jeffrey Zelms, Theodore Fox, Daniel Vornberg, Renco Holdings Inc., and Ira Rennet were named as defendants. Defendants removed the case to this Court on November 2, 2007, alleging that federal question jurisdiction existed because plaintiffs’ claims raised substantial questions relating to the acts and obligations of a foreign state (Peru), international law, and foreign policy issues. That case, bearing cause number 4:07CV 1874 CDP, was remanded to state court for lack of subject-matter jurisdiction on March 18, 2008. See A.A.Z.A. v. Doe Run Res. Corp., Civil Case No. 4:07CV1874 CDP [# 61]. As explained in the Memorandum and Order of Remand, plaintiffs’ complaint only raised state law claims and alleged only acts and damages that occurred when the American defendants owned and controlled the Complex. Although defendants argued that Peru was involved in or respon[1129]*1129sible for some of the activities that caused plaintiffs’ injuries, I held that these arguments constituted defenses under the well-pleaded complaint rule and, accordingly, could not form the basis for federal subject-matter jurisdiction.

Back in state court, plaintiffs amended their petition and added The Renco Group as a corporate defendant. Renco removed the action to this Court for a second time, asserting federal diversity jurisdiction under 28 U.S.C. § 1332(d), because the plaintiffs’ claims constituted a qualifying mass action under the Class Action Fairness Act of 2005 (CAFA). That case was assigned Case Number 4:08CV525 CDP. Plaintiffs again moved for remand. A hearing was set for August 5, 2008, but plaintiffs voluntarily dismissed their claims as of right under Rule 41 (a)(1)(A)(i), Fed. R. Civ. P., two days before. The case was dismissed without prejudice in accordance with plaintiffs’ notice of dismissal on August 6, 2008. See A.A.Z.A. v. Doe Run Res. Corp., Civil Case No. 4:08CV525 CDP.

On August 7, 2008, two new cases brought by the same next Mends on behalf of eight different Peruvian children were filed in Missouri state court, alleging the same facts and asserting the same claims against the same defendants as before. All defendants removed both cases to this Court on September 17, 2008, asserting federal diversity and federal question jurisdiction. Those cases were assigned case numbers 4:08CV1416 CDP and 4:08CV1420 CDP. In their Notices of Removal, defendants contended that these cases were removable because they constituted a qualifying mass action under CAFA, and because the Court had federal-question jurisdiction under the federal common law of foreign relations. I disagreed, and remanded the cases sua sponte on October 9, 2008. See A.O.A. v. Doe Run Res. Corp., Civil Case No. 4:08CV1416 CDP [# 19]; K.G.C. v. Doe Run Res. Corp., Civil Case No. 4:08CV1420 CDP [# 19].

Upon remand, defendants filed a motion to transfer venue of the two cases from the City of St. Louis to St. Louis County on November 21, 2008. Plaintiffs also filed another nine cases (involving seventeen more plaintiffs) on December 9, 2008, raising the same claims against the same defendants. Defendants filed motions to transfer venue in those cases as well. Meanwhile, defendants attempted unsuccessfully to get Peru to enter into these cases and defend them against plaintiffs’ claims. Defendants contend that plaintiffs’ injuries, if any, were caused by exposure to toxic substances emitted by the Complex while Peru owned and operated it through Centromin, and not by any of their actions after purchasing the Complex.

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Bluebook (online)
833 F. Supp. 2d 1126, 2011 WL 2553259, 2011 U.S. Dist. LEXIS 66691, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aoa-v-doe-run-resources-corp-moed-2011.