GARWOOD, Circuit Judge:
This is an appeal from an order of the district court conditionally dismissing a maritime wrongful death action brought under the Jones Act, 46 U.S.C. § 688, and alternatively, under the Death on the High Seas Act, 46 U.S.C. § 761, by appellants, the survivors of a Filipino permanent resident and citizen who was drowned off the coast of Balikpapan, Indonesia, when the Bali Dolphin, a nonself-propelled jack-up drilling rig on which the decedent had been a crew member for approximately two years, capsized while being towed a short distance to another offshore drilling site. The primary question is whether American law applies to appellants’ claim, and if not, whether the district court abused its discretion in dismissing the case based on the doctrine of
forum non conveniens.
We hold that, in the context of this case, American law does not govern appellants’ claim, and that the district court did not abuse its discretion in conditionally dismissing the case. However, because we feel that the order of dismissal, though made subject to certain conditions, may fail to adequately protect appellants’ interests, the case is reversed and remanded so that the district court may fashion a more appropriate order.
I.
FACTS
The Bali Dolphin was built in the United States in 1966, and was purchased and refitted by appellee Dolphin International S.A. (“Dolphin S.A.”) in either 1972 or 1973. Since its acquisition by Dolphin S.A., the Bali Dolphin has worked almost exclusively in Southeast Asia. Since 1975, the Bali Dolphin and its nonself-propelled drilling tender vessel, the Green Dolphin, which are operated as a unit, have been stationed off the coast of Indonesia, drilling in the shallow water areas near Balikpapan, East Kalimanton, Indonesia.
Both the Bali Dolphin and the Green Dolphin are registered under the laws of Panama, and they fly the Panamanian flag.
The owner of these vessels, Dolphin S.A., is a Panamanian corporation which is wholly owned by appellee Dolphin International, Inc. (“Dolphin, Inc.’’), a Texas corporation. Dolphin Inc. is a wholly owned subsidiary of Quatro A/S, a Norwegian corporation whose shares are owned entirely by Norwegian citizens.
Both Dolphin S.A. and Dolphin, Inc. maintain their principal places of business at the same address in Houston, Texas. Dolphin, Inc. is a drilling contractor engaged in offshore drilling operations solely in the territorial waters of, and on the Continental Shelf of, the United States, primarily in the Gulf of Mexico. Dolphin S.A., also a drilling contractor, is engaged in offshore drilling operations, with the exception of the United States and its Continental Shelf, throughout the world, primarily in Spain, the North Sea, and Southeast Asia.
From 1973 to 1979, Dolphin S.A.’s Southeast Asia operations were conducted out of Singapore, under the direction of area manager L.F. Anderson.
Also in the Singapore
office, which consisted of eight to ten employees, was M.L. King,
the rig manager and drilling superintendent for the Bali Dolphin, as well as an administrative support staff, all of whom at the time in question lived in Singapore.
In November 1976, Dolphin S.A. entered into an offshore drilling contract with appellee Union Oil Company of Indonesia (“Union-Indonesia”) whereby Dolphin S.A. agreed to drill offshore exploratory wells for Union-Indonesia in its concession areas off the coast of East Kalimanton.
Under this contract, Dolphin S.A. agreed to drill the wells using the Bali Dolphin/Green Dolphin unit. Union-Indonesia agreed to obtain all permits and licenses from the Indonesian government for the drilling operations contemplated by the contract.
The contract between Union-Indonesia and Dolphin S.A. was signed and partially negotiated by Anderson in either Singapore or Djakarta, Indonesia, although it was first approved in principal in the United States. Payments under the contract were made by Union-Indonesia to Dolphin S.A. in Balikpapan.
Union-Indonesia is a California corporation, which conducts its drilling operations solely in Indonesia. It is a wholly owned subsidiary of appellee Union Oil Company of California (“Union-California”) which is also a California corporation. Both corporations maintain their principal places of business in Los Angeles, California, and, like the Dolphin companies, they have the same office address. Union-Indonesia also maintains offices in Djakarta and in Balikpapan.
Appellants’ decedent, Joseph Roman Buenaflor (“Buenaflor”) was hired by Dolphin S.A. in Singapore on August 2, 1974, to work as an electrician. Buenaflor signed a standard expatriate employment contract, which was written in English. The contract provided, among other things, that Buenaflor was covered by the company’s group insurance plan, which was placed with Philadelphia Life Insurance Company. Pursuant to Buenaflor’s request at the time he was hired, Dolphin S.A. deposited his paychecks, which were drawn on its bank account at Capital National Bank in Houston and made payable in U.S. currency, into an account maintained by Buenaflor at the Bank of America in San Francisco, California.
Buenaflor, however, remained at all times a citizen of the Philippines and maintained his permanent residence there in Cavite City.
After being hired by Dolphin S.A., Buenaflor was assigned to the Green Dolphin, which subsequently joined with the Bali Dolphin. After 1975, the Green Dolphin and the Bali Dolphin were stationed in shallow water areas off the coast of Balikpapan, in the Makasar Strait.
Buenaflor would work on either the rig or the tender, wherever electrical problems arose. On the morning of September 16, 1977, the Bali Dolphin capsized and sank while being towed a short distance to a new drilling site in the Makasar Strait.
The sinking occurred about five miles from the shore in Indonesian territorial waters. The rig was being towed by three tug boats, the Permina Supply No. 6, the Permina Supply No. 15, and the Permina Supply Sentoso, each owned, operated, and crewed by P.T. Pertamina Tongkang (“Pertamina”), an Indonesian corporation which was an affiliate of the Indonesian National Oil Company, P.N. Pertambangan Minjak Dan Gas Bumi Nasional. Dave Hill, at that time an employee of Union-Indonesia who was on board the Bali Dolphin when the accident occurred, was in command of the rig and was coordinating the movements of the tugs which, under the Dolphin S.A.-Union-Indonesia drilling contract, was Union-Indonesia’s responsibility. Also on board the Bali Dolphin were five Dolphin S.A. “expatriate employees,” among them Buenaflor, and Harold Ogden, who in King’s absence was the acting rig manager, and seven Dolphin S.A. Indonesian (or local) employees.
It is undisputed that Buenaflor was drowned in the sinking while in the course and scope of his employment with Dolphin S.A. He had been on board that day so as to be able to moniter the electrical equipment when the rig reached its new location and was jacked up.
At the time of the accident, the day-today decisions, supervision, and control of the activities and operations of the Bali Dolphin, and the implementation of policy or decisions made in Houston, were carried out and made in Singapore or Indonesia by Anderson and his staff.
On September 14, 1978, appellant Bruce A. Bailey, as special administrator of the estate of Buenaflor,
filed a wrongful
death suit in the federal district court for the Northern District of California against Dolphin, Inc., Union-Indonesia, Pertamina, the three tug boats involved in the accident, and Insurance Company of North America (“INA”).
Dolphin, Inc. filed a motion for dismissal which attacked both the personal and subject matter jurisdiction of the court, venue, and alleged a failure to state a claim upon which relief could be granted. Fed.R. Civ.P. 12(b). The district court, without acting on the other grounds in the motion, found that it lacked personal jurisdiction over Dolphin, Inc., and therefore transferred the entire case to the Southern District of Texas, Houston Division, pursuant to 28 U.S.C. § 1406(a).
Thereafter, appellants amended their complaint to add as defendants, Dolphin S.A. and Union-California. Pertamina and its three tugs were voluntarily dismissed.
Appellees then moved to dismiss the action based on the doctrine of
forum non
conveniens,
The Texas district court, after first applying the choice of law factors of
Lauritzen v. Larsen,
345 U.S. 571, 73 S.Ct. 921, 97 L.Ed. 1254 (1953), and
Hellenic Lines, Ltd. v. Rhoditis,
398 U.S. 306, 90 S.Ct. 1731, 26 L.Ed.2d 252 (1970), determined that
American law did not apply to appellants’ claim.
The court then considered the
forum non conveniens
factors of
Gulf Oil Corporation v. Gilbert,
330 U.S. 501, 67 S.Ct. 839, 91 L.Ed. 1055 (1947), and decided that appellant’s claim could be “more conveniently tried in some other forum and that an injustice would follow if this Court were to retain jurisdiction.” The court, however, conditioned the dismissal on the following:
“Defendants are to submit to service of process in an appropriate foreign court within ninety (90) days of the date of this order; defendants are to waive any statute of limitations defense; and defendants must agree to satisfy any judgment rendered by such court. Should defendants fail to meet any of these conditions, this court will resume jurisdiction over the case.”
II.
STANDARD OF REVIEW
Before a district court dismisses a case based on the doctrine of
forum non conveniens,
it should first ascertain whether American law or foreign law governs the plaintiff’s claim. If American law applies, then the district court should normally retain jurisdiction and proceed with the case. If, however, foreign law applies and the foreign forum is accessible, then the district court should determine in which forum the case should be tried, and if it decides that the lawsuit should be tried in the foreign forum, then the court should decline to exercise jurisdiction over the case.
Fisher v. Agios Nicolaos IV,
628 F.2d 308, 315 (5th Cir.1980),
cert. denied, sub nom., Valmas Brothers Shipping, SA v. Fisher,
454 U.S. 816, 102 S.Ct. 92, 70 L.Ed.2d 84 (1981).
While the choice of law determination is subject to our
de novo
review,
Phillips
v.
Amoco Trinidad Oil Company,
632 F.2d 82, 84 (9th Cir.1980),
cert. denied, sub nom., Romilly v. Amoco Trinidad Oil Company,
451 U.S. 920, 101 S.Ct. 1999, 68 L.Ed.2d 312 (1981), “the
forum non conveniens
determination is committed to the sound discretion of the trial court.”
Piper Aircraft Company v. Reyno,
454 U.S. 235, 257, 102 S.Ct. 252, 266, 70 L.Ed.2d 419, 436 (1981). We may reverse a district court’s decision on a motion to dismiss based on
forum non conveniens
only if its action constitutes a clear abuse of discretion.
Chiazor v. Transworld Drilling Company,
648 F.2d 1015, 1017-18 (5th Cir.1981),
cert. denied,
455 U.S. 1019, 102 S.Ct. 1714, 72 L.Ed.2d 136 (1982).
III.
CHOICE OF LAW
Respecting the district court’s choice of law determination, appellants make essentially two contentions: first, that the district court erred in failing to find that the law of the flag of the Bali Dolphin was really American, and that Dolphin S.A.’s base of operations was in the United States, and that these were substantial contacts with this country warranting the application of American law to their claim; and second, that the district court erred in not finding that Buenaflor’s allegiance was to the United States, and that this too was a substantial contact with this country. After considering the record before us, we disagree with these contentions.
In
Chiazor,
the decedent, a Nigerian seaman, died from injuries he received while working on a submersible drilling rig sta
tioned off the coast of Nigeria. The district court dismissed the wrongful death action brought by the decedent’s representatives based on
forum non conveniens.
In affirming the lower court, this Court drew a distinction for choice of law purposes between “a true maritime vessel, one plying the seas as an integral part of the shipping industry” and a submersible drilling rig, a “vessel” of the type concerned here. Respecting such a nontraditional maritime vessel, this Court said:
“Hence, such factors as place of wrongful act, allegiance or domicile of the injured, and place of contract, which may be less substantial in the shipping context, tend to take on added significance under the present circumstances.”
Regarding a shipowner’s base of operations, the Court held that in the context of the case before it, even if it was assumed that the shipowner’s base of operations was in the United States, such was not “the sole controlling factor.” Likewise, in
Phillips v. Amoco Trinidad Oil Co.,
632 F.2d 82 (9th Cir.1980),
cert. denied, sub nom., Romilly v. Amoco Trinidad Oil Co.,
451 U.S. 920, 101 S.Ct. 1999, 68 L.Ed.2d 312 (1981), the Ninth Circuit held, in the offshore drilling context, that the law of the flag (in that case American) “should not be accorded controlling weight because of the facts of this case.” The Court reasoned:
“In
Lauritzen,
the Court stated that the law of the flag has traditionally been accorded great weight ‘on the pragmatic basis that there must be some law on shipboard, that it cannot change at every change of waters, and no experience shows a better rule than that of the state that owns her.’ 345 U.S. at 585, 73 S.Ct. at 930. This rationale does not apply to a drilling vessel whose operations are at a fixed location....” 632 F.2d at 87.
Chiazor
and
Phillips,
in effect, redistributed the weight to be given the choice of law factors of
Lauritzen
and
Rhoditis
in cases concerning nontraditional maritime vessels not engaged in shipping.
See Phillips,
632 F.2d at 85 (“Factors that have little significance in one factual setting may warrant greater weight in another”).
Here, the vessel involved is a non-self-propelled jack-up drilling rig, a nontraditional vessel much like the submersible drilling rig in
Chiazor.
The district court found that the wrongful act occurred in Indonesian territorial waters; that the allegiance and domicile of Buenaflor was the Philippines; and that the place of the contract of employment between Dolphin S.A. and Buenaflor was Singapore.
The district court further found that the Bali Dolphin was a Panamanian flag vessel, and that Dolphin S.A.’s base of operations, on a day-to-day basis, was in Singapore.
These findings are supported by the record before
us and are not clearly erroneous.
Although appellants contend that the conditions of Buenaflor’s employment, his treatment by his employer, and his ties to the United States, show that he should be treated as an American seaman with allegiance to the United States rather than to the Philippines,
the district court found and
the record before us
conclusively
shows that Buenaflor remained a Filipino citizen all of his life and that he maintained his
permanent
residence in the Philippines at all times.
Appellants, however, argue that
Chiazor
is distinguishable from the instant case and that its reasoning is inapplicable here, because that case concerned a local national, who was employed locally by a local concern, and was injured in the territorial waters of his own country while serving as a member of the crew of a United States offshore drilling vessel; whereas here, the case concerns a Third Country national, who was injured while working off the coast of a foreign country for an American company on an American drilling rig. Appellants, in effect, assert (1) that the holding of
Chiazor
is binding only where the plaintiff’s allegiance, the place of the employment contract, and the place of the wrongful act all coincide, and (2) that the weight given the factors respecting ownership of the vessel and its base of operations is increased when those factors coexist in the United States and where none of the other factors coexist in any other country. We do not find these considerations to be controlling here.
There is nothing in the
Chiazor
opinion which affirmatively indicates that the analysis and the result respecting the application of American law would have been any different had Chiazor been a citizen and domiciliary of a foreign country other than Nigeria, where all the other choice of law factors remained the same, or that all of the factors emphasized and given added significance in
Chiazor
must coincide in a
single
nation in order to retain their significance as concerns the choice of law analysis respecting nontraditional vessels. As pointed out in
Chiazor
and
Phillips,
the distinction made there is based on the fact that unlike traditional maritime vessels, the operations of offshore drilling rigs tend to be conducted in a more permanent fashion off the coast of a foreign country, and the “fortuitous circumstances” respecting the place of wrongful act and the place of contract that were given lesser significance in connection with traditional maritime vessels in
Lauritzen
are not present in the offshore drilling rig context. Appellants, however, argue that the weight given the factors in
Chiazor
should not apply here because Buenaflor worked internationally for Dolphin S.A., and the place of his death and his contract was therefore fortuitous. Yet the record shows that Buenaflor had worked offshore East Kalimanton, Indonesia on the Bali Dolphin/Green Dolphin unit for about two years before his death, except for one relatively brief trip to the United States in another connection. See note 10,
supra.
Thus, the greater weight given by the district court to the place of the wrongful act, and to the place of contract was proper since the fact that Buenaflor was drowned off Indonesia, where the drilling operations were conducted and where he performed his contract for some two years, was clearly not fortuitous.
It is certainly true that where the factors emphasized in
Chiazor
all coincide in one country, the choice of law determination points strongly to the application of that country’s law, but it does not follow that the application of American law is required, as if by default, where these fac
tors are spread among several other foreign countries, and the only contact with the United States remains ultimate American ownership or control of the business ventures engaged in the drilling operation.
In other words, the substantiality of the base of operations factor or the law of the domicile of the ultimate owner, in an offshore drilling rig-nontraditional maritime context, does not increase merely because the factors given added significance in
Chiazor
are spread among more than one foreign nation. This is illustrated by
Martyn v. Transworld Drilling Company, Ltd.,
No. 78-3423 (E.D.La., November 29, 1979),
aff’d,
619 F.2d 82 (5th Cir.1980), and by
Zekic v. Reading & Bates Drilling Co.,
536 F.Supp. 23 (E.D.La.1981),
aff’d,
680. F.2d 1107 (5th Cir.1982).
In
Martyn,
the plaintiff was a citizen of Ireland, who was injured while working on a drilling platform located in the North Sea off the coast of the United Kingdom. It was unclear whether plaintiff’s employment contract was signed in Ireland or in the United Kingdom, yet the district court held that the contacts with the United States were insufficient to warrant the application of American law even though both plaintiff’s employer and the rig owner, as here, were subsidiaries of American-based corporations. In
Zekic,
the plaintiff was a citizen of Yugoslavia who was injured while working aboard a jack-up drilling rig in Italian territorial waters. Plaintiff’s employment contract was signed in Italy. The rig flew the American flag. Both plaintiff’s employer and the rig owner were American corporations. Relying on
Ghiazor,
the district court held that Italian, not American, law applied and dismissed the case. This Court affirmed the district court’s dismissal in both cases.
In view of the circumstances of this case and their similarity to
Chiazor, Martyn,
and
Zekic,
we hold that the district court correctly concluded that American law did not apply to appellants’ claim. The contacts with Indonesia, Singapore, and the Philippines are clearly more substantial than those with the United States.
IV.
FORUM NON CONVENIENS
In reaching its decision to conditionally dismiss the case based on the doctrine of
forum non conveniens,
the district court found (1) that many of the crucial witnesses to the accident lived in Southeast Asia; (2) that Pertamina, the Indonesian towing company which owned and operated the three tugs that were towing the Bali Dolphin when she capsized and sank, was not amenable to process in the Southern District of Texas; (3) that all the real plaintiffs in interest, Buenaflor’s widow and her children, lived in the Philippines; and (4) that the Bali Dolphin was still operating in Southeast Asia. The court also noted that retention of the case would require it to apply foreign law, and that the case would add to the court’s already congested docket.
Appellants do not seriously dispute the above-referenced findings, but basically argue that the court erred in dismissing the ease because it was fully developed under American law for trial in an American forum. The record, however, shows that only two of the witnesses that had been deposed were examined regarding the merits of the case,
and that many of the other important witnesses, including Dave Hill who was coordinating the towing activities on board the Bali Dolphin and the Indonesian crew members of the tugs that were towing her when she sank, had not been deposed. Moreover, the order of dismissal was conditioned on appellees’ agreement to accept all of the deposition testimony and other documentary proof in all three foreign forums.
Appellants also argue that the inability of the appellees to file a third-party action against Pertamina is not an appropriate ground for dismissing the case. In
Reyno,
however, the Supreme Court recognized that the availability of impleader is one of the considerations which may be taken into account in determining whether a case should be dismissed under the doctrine of
forum non conveniens. See also Olympic Corp. v. Societe Generale, A/S,
462 F.2d 376, 379 (2d Cir.1972);
Shepard Niles Crane & Hoist Corp. v. Fiat, S.p.A.,
84 F.R.D. 299, 305 (W.D.N.Y.1979). While this consideration alone may not warrant dismissal of the case, it may in a close case support a dismissal.
Appellants’ final argument is that the district court abused its discretion by not specifying which of the three other forums was the most convenient one to try the case. We hold, however, that the district court was not required to specify in which forum appellants should file suit. It was within the district court’s discretion to leave that decision to appellants where, as here, the order of dismissal was conditioned on appellees’ agreement to submit to service of process in any of the three other foreign forums.
In
Overseas Programming Company, Ltd. v. Cinematographische Commerzanstalt,
684 F.2d 232 (2d Cir.1982), the Second Circuit held that the district court erred in failing to designate a more convenient forum to which the parties should be relegated. In that case, however, lawsuits regarding the rights in issue were already in progress in three foreign countries, and the Second Circuit felt that the district court had not weighed the relevant advantages of each forum but had only considered the drawbacks of the American forum.
Overseas,
684 at 234-35.
See also Founding Church of Scientology v. Verlag,
536 F.2d 429, 436 (D.C.Cir.1976). Although not expressly stated in the district court’s order, it is clear that in this case the district court implicitly determined that any of the three Southeast Asia forums—Indonesia, Singapore, or the Philippines—were more convenient than the Southern District of Texas. Moreover, “[t]he objective is not to locate the
forum conveniens,
but to avoid the
forum non conveniens.”
Casad,
Long Arm and Convenient Forum,
20 Kan.L.Rev. 1-14 (1971).
V.
THE ORDER OF DISMISSAL
Although we hold that the district court did not abuse its discretion in not specifying the particular forum in which appellants’ claim should be tried, we understand appellants’ uneasiness, and we feel that, in view of the peculiar circumstances of this case, the order of dismissal should have been more carefully drafted to protect appellants’ interests. We have therefore decided to reverse and remand the case so that the district court may revise its order
to base it upon appropriate conditions. We suggest that the district court give consideration to conditioning the dismissal on the following: that appellees submit to service of process and jurisdiction in the appropriate court in any of the three forums in which appellants shall have filed suit within ninety days of the order of dismissal; that if the appropriate court in any one or two of such foreign forums declines to take or exercise jurisdiction in such a suit filed within the above-mentioned ninety-day period, or within the ninety-day period provided in this clause, that appellees submit to service of process and jurisdiction in the appropriate court in any remaining of such foreign forums in which appellants shall have filed suit within ninety days after the other such foreign forum has finally so declined to take or exercise jurisdiction; that appellees formally waive in each proceeding where suit may be filed in accordance with the herein provided time limits any statute of limitations defense that has matured since the commencement of this action in the Southern District of Texas; that appellees formally agree in the foreign forum where the claim is to be tried, pursuant to suit timely commenced in accordance herewith, to make available in that forum all relevant witnesses or, in lieu thereof, to schedule depositions at a reasonable time and place, and to make available any documents within their control and that any depositions, answers to interrogatories, requests for admission and the like filed herein may be used in the foreign proceeding to the same extent as if they had originated therein; that appellees formally agree in the foreign forum where the claim is tried, pursuant to suit timely commenced in accordance herewith, to satisfy . any final judgment rendered by that court; and that should appellees fail to promptly meet any of these conditions, the district court will resume jurisdiction over the case. The conditional order might also provide that it can be made final by appellees (1) if appellants do not file suit in an appropriate foreign court within the various ninety-day time limits above provided, or (2) if the case is timely filed, that appellees have complied with all of the conditions of the order and the appropriate foreign court has not finally declined jurisdiction. Notice of a motion to make the conditional order final, of course, should be given appellants, and appellants given the opportunity to resist the motion on grounds of noncompliance only.
The district court’s order of dismissal is reversed and remanded.
REVERSED AND REMANDED.