Chen Chun Mei Chang v. Zenith Navigation S.A.

83 F.R.D. 439, 1979 U.S. Dist. LEXIS 9961
CourtDistrict Court, S.D. New York
DecidedSeptember 7, 1979
DocketNo. 77 Civ. 4208 (IBC)
StatusPublished

This text of 83 F.R.D. 439 (Chen Chun Mei Chang v. Zenith Navigation S.A.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chen Chun Mei Chang v. Zenith Navigation S.A., 83 F.R.D. 439, 1979 U.S. Dist. LEXIS 9961 (S.D.N.Y. 1979).

Opinion

OPINION

IRVING BEN COOPER, District Judge.

Defendants move under Rules 12(b)(6) and 56(b), F.R.Civ.P., for an order dismissing the complaint, for failure to state a claim upon which relief may be granted or granting summary judgment on the ground the claims were released. Plaintiffs cross-move for an order granting discovery and inspection of defendants’ corporate books and directing the depositions of Chin Yu Hsu, also known as James Y.S. Chen. For the reasons set forth below, plaintiffs’ motion is granted and defendants’ motions are denied.

The Complaint

The Complaint, which demands a jury trial, alleges that fifteen alien seamen died or were lost at sea on or about December 30, 1976 while engaged in the performance of their duties on board, or following orders to abandon, the merchant vessel Grand Zenith; that the vessel sank in navigable waters (off Cape Cod, Massachusetts); and that the deaths or disappearances were caused by defendants’ negligence (the Jones Act claim) or the unseaworthiness of the vessel (the General Maritime Law and Death on the High Seas Act claim). Plaintiffs are the personal representatives and individual family members of the seamen.

[441]*441Defendants are alleged to be the entities which employed decedents and operated the S/T Grand Zenith under a flag of convenience. Defendant Sea King Corp. is claimed to be a New York corporation; defendant Zenith Navigation S.A., a Panamanian corporation with a principal office in New York. The majority stock of both is alleged to be owned or controlled by U.S. citizens or residents. Further, the Complaint alleges that the principal business and transactions of the defendants, and ports called upon by the Grand Zenith, were in the United States.

Finally, the Complaint seeks over $6,000,-000, in the aggregate, as damages for decedents’ estates and for their families’ loss of their society and comfort. Defendants’ time to answer has been extended pending the outcome of their motion.

Defendants’ Motion Under Rules 12(b)(6) and 56(b)

Defendants’ motion raises, at the threshold of this litigation and before the expenditure of substantial time and cost in its prosecution and defense, the sole question of whether plaintiffs’ claims are barred in their entirety by valid and enforceable releases. All plaintiffs reside abroad, similar claims and defenses arising from the sinking of the S/T Grand Zenith are pending in other actions filed in this District and, aside from matters concerning the alleged negligence of defendants and the unseaworthiness of the vessel, substantial discovery is otherwise anticipated on factual issues concerning the applicability of American law, the status of certain plaintiffs as legal representatives of the decedents and the scope and quantification of damages.

The Court has carefully reviewed the con-clusory affidavits and exhibits submitted, the contentions of the parties and the legal arguments and authorities submitted by memoranda and letters of counsel. Although many material facts seem clearly to be uncontroverted or established, the Court on the limited and uncertain record before it, as set forth more fully below, cannot find in respect of all plaintiffs that the settlements were reached at arms’ length, that plaintiffs knowingly released rights, if any, under American law and that defendants’ agent did not fail, in fact, to clarify or make appropriate representations as to foreign law when he may have been under a duty to do so.

A. Defendants’ Contentions and Proof

Defendants have supplied the Court with copies of executed agreements, in both the Chinese and English languages, between a representative of “Zenith Navigation S.A. owners of S/T ‘Grand Zenith’ ” and statutory heirs of the deceased crewmen1 and receipts for payment pursuant to those agreements.

The agreements, prepared by defendant Zenith Navigation S.A.’s local Taiwan lawyer, are in form and substance identical for all material purposes and in no instance does it appear that a statutory heir separately negotiated the terms.

Each agreement contains a “whereas clause” which recites the loss of the vessel, refers to “negotiations and meetings held by the Chinese Seamen Association” and states that the parties reached agreement “according to the Revised Articles of Agreement for Definite Period as promulgated on July 26, 1976 by Ministry of Communication ((65) No. 06600 order).”2

The agreements then proceed to specify the amount of payments to be made to the [442]*442statutory heirs “in accordance with the Articles of Agreement”3 for death, funeral expenses, donations, condolences, life insurance indemnities, year-end bonus allowances, maintenance, additional compensation and other indemnities. They next provide for the amounts thereunder to be paid into Court or to designated Chinese associations, for crewmen or the ship’s master, if the heirs object or dispute the amount of payments or there is litigation. Then, the agreements set forth the release upon which defendants’ motions are predicated:

“7. [The statutory heir] agrees and acknowledge [sic], has remised released and forever discharged personnel [sic] or legal liabilities of Party A, [the representative of Zenith Navigation S.A.] its agents, servant, employees, underwriters, and guarantors of the S/T ‘Grand Zenith’, Zenith Navigation, S.A. Sea King Corporation, their servants and employees from any and all further demand, suit or suits, civil or criminal, claim or claims, all manner of action or actions cause or caused [sic] of action, including but not limited to court preservation, in or outside of the Republic of China after this agreement becomes effective.” 4

The agreements conclude by providing for the making of multiple copies, their distribution, and the primacy of the Chinese language version.5 The formalities of execution include an endorsement by the District Court, Taiwan “that the Signature/Seal in this document is authentic.”

Appended to the agreements are receipts by the statutory heirs, evidencing their receipt of the amounts set forth in the agreement. They also contain an “acknowledgement” by the heirs that the payment is “the total amount of compensation and indemnity” for the decedent, bear a District Court’s attestation as to the authenticity of the heirs’ Signature/Seal and contain an endorsement that the signing heir “should be fully responsible for any dispute or claim of rights arising between or among all the statutory heirs of the deceased crewmen and there will be no concern with your esteemed company.” Finally, these receipts, unlike the agreements, are witnessed and signed by a Schelling Cheng, identified thereon only as “Attorney-at-law, International Business Law Office.”

Defendants have supplied two affidavits of Schelling Cheng. It is his testimony that he practices law in Taiwan, that he represented defendant Zenith Navigation S.A.

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Bluebook (online)
83 F.R.D. 439, 1979 U.S. Dist. LEXIS 9961, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chen-chun-mei-chang-v-zenith-navigation-sa-nysd-1979.