Coto v. J. RAY McDERMOTT, SA

709 So. 2d 1023, 1998 A.M.C. 1471, 1998 WL 129068
CourtLouisiana Court of Appeal
DecidedMarch 18, 1998
Docket96-CA-2701, 96-CA-2702
StatusPublished
Cited by5 cases

This text of 709 So. 2d 1023 (Coto v. J. RAY McDERMOTT, SA) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coto v. J. RAY McDERMOTT, SA, 709 So. 2d 1023, 1998 A.M.C. 1471, 1998 WL 129068 (La. Ct. App. 1998).

Opinion

709 So.2d 1023 (1998)

Odilon Chacha COTO, et al.
v.
J. RAY McDERMOTT, S.A., et al.
Mario Arturo MARTINEZ, et al.
v.
J. RAY McDERMOTT, S.A., et al.

Nos. 96-CA-2701, 96-CA-2702.

Court of Appeal of Louisiana, Fourth Circuit.

March 18, 1998.
Rehearing Denied April 30, 1998.

*1025 Russ M. Herman, Herman, Herman, Katz & Cotler, New Orleans, and Randy J. Ungar, Randy J. Ungar & Associates, New Orleans, for Plaintiffs/Appellants.

Edward J. Koehl, Jr., Scott A. Decker, Jones, Walker, Waechter, Poitevent, Carrere & Denegre, L.L.P., New Orleans, for Defendants/Appellees J. Ray McDermott, S.A., et al.

James Sentner, Orin H. Lewis, Gardere Wynne Sewell & Riggs, L.L.P., Houston, TX, and George J. Fowler, III, Paul N. Vance, Edward F. LeBreton, III, Rice & Fowler, New Orleans, for Defendants/Appellees Gulf Technical Services Corporation, CCC Fabricaciones Y Construcciones, S.A. de C.V., Corporacion de Industrias Y Construcciones, S.A. de C.V.

Before BARRY, WALTZER and LANDRIEU, JJ.

LANDRIEU, Judge.

Appellants are citizens of Mexico. They are surviving crew-members and representatives of deceased crew-members of the Derrick Lay Barge 269, which sank off the Yucatan Peninsula in the Bay of Campeche on October 15, 1993, during Hurricane Roxanne. Approximately 250 people were aboard as crew, including United States citizens and Louisiana residents. At the time the vessel sank, it was under tow by the M/V Captain John and the M/V North Carolina.

The appellants filed suit against a number of defendants, including two Panamanian companies with headquarters in New Orleans,[1] two Mexican corporations,[2] a Louisiana corporation, a Florida partnership, and a Texas corporation. The appellants sought damages under the Jones Act and general maritime law or, alternatively, under Louisiana law or other appropriate laws, namely the law of Mexico. The defendants filed exceptions of no cause of action and no right of action, and a motion to dismiss on the grounds of forum non conveniens, directed to the appellants.

By a judgment signed April 25, 1996, the district court denied the exception of no cause of action, but it maintained the exception of no right of action and dismissed the appellants' Jones Act and general maritime claims pursuant to 46 U.S.C.App. § 688(b).[3] The court reasoned that (1) the appellants were Mexican citizens and not permanent resident aliens of the United States, (2) they were employed in an enterprise engaged in *1026 the exploration, development, or production of offshore mineral or energy resources, (3) the enterprise was located on the outer continental shelf of a nation other than the United States, and (4) they had a remedy under Mexican law in Mexico. The appellants do not appeal that ruling.

The district court, however, delayed its ruling on the appellants' causes of action asserted under Louisiana law and Mexican law. On September 4, 1996, the district court maintained the exception of no right of action, dismissing the Louisiana law claims with prejudice and dismissing the Mexican law claims without prejudice to refiling them in Mexico. The appellants appeal this ruling.

The district court found that the Louisiana and Mexican law claims could proceed in this case only under the "saving to suitors" clause of 28 U.S.C. § 1333(1).[4] The district court reasoned, however, that the Louisiana and Mexican law claims did not satisfy the "saving to suitors" exception because such claims would directly contradict that body of law as defined by Congress in 46 U.S.C.App. § 688(b). See n. 3, supra. The district court observed that the appellants could proceed with this action in Mexico.

The appellants assert the district court erroneously determined the scope and interpretation of 46 U.S.C.App. § 688(b). They maintain that the section does not reference and has no application (either expressly or implicitly) to claims asserted under state or foreign law. They further argue that the section is simply a statutory choice-of-law provision which limits the application of "American" law in certain cases involving foreign offshore oil exploration. The appellants contend Section 688(b) was not intended to preclude foreign seamen from asserting foreign and state law claims in the courts of the United States. They note that, even though the federal courts do not have subject matter jurisdiction to hear legal actions where at least one of the plaintiffs and one of the defendants are aliens, state courts do have such subject matter jurisdiction, subject to the authority to dismiss the action under the doctrine of forum non conveniens. The appellants emphatically point out that the common law doctrine of forum non conveniens has limited application in the courts of Louisiana.[5]

When it amended the Jones Act in 1982, Congress expressly eliminated a Jones Act remedy, as well as any other remedy under the general maritime law of the United States, to a foreign seaman employed in the offshore mineral extraction industry who is injured on waters overlying the outer continental shelf of a nation other than the United States, unless neither the country which had *1027 sovereignty over the outer continental shelf where the injury occurred nor the seaman's home country provides a remedy. 46 U.S.C.App. § 688(b). The purpose of the amendment was to protect United States companies active in the offshore oil and mineral extraction industry from the competitive disadvantage that may develop when foreign workers are allowed to forego the remedy available in their own or another country to pursue a claim in a court in the United States in the hope of availing themselves of either substantive or procedural advantages. See H.R.Rep. No. 97-863, at 2-4 (1982); c.f. Vaz Borralho v. Keydril Co., 710 F.2d 207 (5th Cir.1983). If we accept the appellants' proposition that a maritime tort claim barred by virtue of Section 688(b) may be entertained in any United States court under state or foreign law, the intent of Congress in amending the Jones Act in 1982 would be defeated. See 128 Cong. Rec. H7631-38 (daily ed. Sept. 28, 1982). We thus hold that the appellants have no Louisiana or Mexican law remedy in a Louisiana state court because the Jones Act and Congress's amendment thereof preempted any state or foreign law remedy that might have otherwise been available.

Commentators have opined that Section 688(b) effectively codified prior federal jurisprudence on choice of law, see, e.g., Schoenbaum, Admiralty and Maritime Law, 2d ed., § 6-13 (1994); though, it did so with respect only to "certain alien" plaintiffs. 46 U.S.C.App. § 688(b). Because of the historical interplay between choice of law and forum non conveniens, see, e.g., Camejo v. Ocean Drilling & Exploration, 838 F.2d 1374, 1378-79 (5th Cir.1988), it has also been suggested, perhaps more correctly, that the provision was a codification of forum non conveniens as applied to certain foreign seamen. See Robertson & Speck, "Access to State Courts in Transnational Personal Injury Cases: Forum Non Conveniens and Antisuit Injunctions," 68 Tex. L.Rev. 937, 975, n. 56 (1990); see also Vaz Borralho,

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