Deutsch v. Turner Corp.

324 F.3d 692, 2003 U.S. App. LEXIS 3937
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 21, 2003
DocketNos. 00-56673, 01-17115, 01-17116, 01-17123, 01-17124, 01-17134, 01-17155, 01-17157, 01-17160, 01-17172, 01-17176, 01-17177, 01-17185, 01-17189, 01-17195, 01-17197, 01-17201, 01-17203, 01-17204, 01-17207, 01-17210, 01-17211, 01-17230, 01-17243, 01-17251, 01-17252, 01-17260, 01-17265, 01-17499
StatusPublished
Cited by106 cases

This text of 324 F.3d 692 (Deutsch v. Turner Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deutsch v. Turner Corp., 324 F.3d 692, 2003 U.S. App. LEXIS 3937 (9th Cir. 2003).

Opinion

ORDER

The opinion filed January .21, 2003 is hereby amended as follows:

1. Slip op. at 991, second full paragraph, line 6, after “because a state is,” insert “generally.”

2. Slip op. at 991, replace the last sentence (beginning “Because section 354.6 is substantive law”), including footnote 4, with the following:

Nevertheless, that distinction does not affect the outcome here. Our determination of the foreign affairs doctrine issue does not depend on our conclusion that section 354.6 is substantive law. Whether substantive or procedural, section 354.6 creates a special rule that applies only to a newly defined class of tort actions — actions brought by Second World War slave labor victims against the entities that enslaved them. This new rule profoundly alters the likelihood that such actions will succeed, by not only extending the statute of limitations for claims that were timely when the statute took effect (although we doubt that any such claims existed), but, far more important, by reviving claims that were already time-barred. In the latter instance, the statute upset the repose of potential defendants. Such a revival of liability — even civil liability — is troubling and raises serious due process questions. We need not address those questions here, however. The important point for our foreign affairs analysis is that the California legislature created — or at least resurrected — a special class of tort actions, with the aim of rectifying wartime wrongs committed by our enemies or by parties operating under our enemies’ protection.

3. Immediately following the passage inserted above (after “under our enemies’ protection”) add a new footnote containing the following text: [703]*703Two decisions of the California Court of Appeal, one by the Second Appellate District and one by the Fourth, have recently addressed whether section 354.6 is substantive or procedural in nature. The decisions reached opposite conclusions. Compare Mitsubishi Materials Corp. v. Superior Court, 130 Cal.Rptr.2d 734, 2003 WL 253877, slip op. at 2 (Cal.Ct.App.2003) (“The legislation actually creates a state law claim which otherwise would not exist ....”) with Taiheiyo Cement Corp. v. Superior Court, 129 Cal. Rptr.2d 451, 2003 WL 124284, slip op. at 24 (Cal.Ct.App.2003) (“The sole purpose of section 354.6 is to extend the statute of limitations for common law claims for unpaid labor and, personal injuries arising out of slave or forced labor.”). Both decisions were issued after our opinion was sent to the Clerk for filing.

4. Slip op. at 1005, replace the first full paragraph with the following:

Section 354.6 runs afoul of the restriction on the exercise of foreign affairs powers by the states. Because California lacks the power to create a right of action — or, alternatively, to resurrect time-barred claims — in order to provide its own remedy for war-related injuries inflicted by our former enemies and those who operated in their territories, we hold that section 354.6 is unconstitutional.

With these amendments, the panel has voted unanimously to deny the petitions for rehearing and rehearing en banc. The full court has been advised of the petitions for rehearing en banc, and no active judge has requested a vote on whether to rehear the matter en banc. Fed. R.App. P. 35. The petitions for rehearing and rehearing en banc are denied.

The mandate will be held pending a decision in American Insurance Association v. Garamendi, — U.S. -, 123 S.Ct. 817, 154 L.Ed.2d 768 (2003) (No. 02-722) (granting certiorari).

OPINION

REINHARDT, Circuit Judge.

Plaintiffs-Appellants in these consolidated cases allege that they were forced to work as slave laborers for German and Japanese corporations during the Second World War. They seek damages and other remedies for lost wages and for other atrocious injuries they suffered in the course of their forced labor. Defendants-Appel-lees are corporations (or successors or affiliates of those corporations) that allegedly committed these atrocities.

A California statute passed in 1999 creates a cause of action against such defendants for claims involving Second World War slave labor.1 CaLCode Civ. Proc. § 354.6. Under the statute, these claims are not time-barred if commenced on or before December 31, 2010. Id. Although Appellants assert a variety of statutory and common law claims for relief, all raise section 354.6 as the primary basis for bringing their suits so many years after the alleged wrongs were committed. Reluctantly, we hold that section 354.6 is invalid under the United States Constitution and that in its absence Appellants’ remaining claims are time-barred. Background

These cases concern the terrible abuses that German and Japanese corporate interests inflicted both on civilians and on [704]*704soldiers captured by German and Japanese military forces during the Second World War. The corporations and their managers, with the cooperation and encouragement of their governments, subjected many individuals to vicious cruelties and forced them to work long hours without pay. The slave workers were often underfed, physically beaten, exposed to dangerous conditions, and denied medical care; many were murdered, and others died as a result of the maltreatment they suffered. Among these slave laborers were, tragically, many who became victims of the Holocaust, the most atrocious act ever perpetrated by a civilized (or uncivilized) people, an act unparalleled in history. Indeed, the Holocaust represents the worst historic manifestation of the perpetual human condition known as antisemitism, a phenomenon that is still thriving in all too many parts of the world today.2

1. The Cases

A. Deutsch v. Turner

The suit by Appellant Josef Tibor Deutsch (“Deutsch”) is the only action before us concerning wrongs committed by German rather than Japanese corporations and the only action that was not consolidated with other cases by the district court. It is, in other words, the only Holocaust case at issue here, and it, unlike most of the Japanese cases, involves only a single plaintiff.

Currently a resident of California, Deutsch, a Jew, was born and raised in Hungary. Deutsch asserts that, in 1944, when he was a child, the Nazis took over his town and transported him and his brother Georg to Auschwitz. There the brothers were tortured and forced to work as slaves for 14-hour days, seven days a week. Their work was for the benefit of private corporations, which entered into agreements with the Nazi government, whereby they paid the Nazis less than the prevailing wage for the work of the slaves. The corporations for which the Deutsch children labored included Appellee Ho-chtief AG (“Hochtief’), one of Germany’s largest and oldest construction companies. A civilian employee of Hochtief overseeing the slave laborers in their work for Ho-chtief beat Deutsch’s brother Georg. Georg ultimately died from his injuries. By a stroke of good fortune, Deutsch, unlike most of his co-religionists, survived.

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Bluebook (online)
324 F.3d 692, 2003 U.S. App. LEXIS 3937, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deutsch-v-turner-corp-ca9-2003.