Bruce A. Bailey, as Special Administrator for the Estate of Joseph Roman Buenaflor, Deceased v. Dolphin International, Inc.

697 F.2d 1268, 1984 A.M.C. 619, 1983 U.S. App. LEXIS 30420
Court of Appeals for the Fifth Circuit·Decided February 17, 1983·No. 82-2060·Published·Cited by 75 cases

Opinion

*1270 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. 1 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. 2 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. 3

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. 4 Also in the Singapore *1271 office, which consisted of eight to ten employees, was M.L. King, 5 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. 6

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. 7 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. 8 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. 9 Buenaflor, however, remained at all times a citizen of the Philippines and maintained his permanent residence there in Cavite City. 10

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Bruce A. Bailey, as Special Administrator for the Estate of Joseph Roman Buenaflor, Deceased v. Dolphin International, Inc., 697 F.2d 1268, 1984 A.M.C. 619, 1983 U.S. App. LEXIS 30420 (5th Cir. 1983).

697 F.2d 1268 (Bruce A. Bailey, as Special Administrator for the Estate of Joseph Roman Buenaflor, Deceased v. Dolphin International, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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