Freeman v. BAE Systems San Diego Ship Repair Inc.

District Court, S.D. California·Decided August 23, 2023·No. 3:22-cv-00934·Unknown

Opinion

LINNEA FREEMAN, KATTI Case No.: 22-cv-0934-L-KSC FREEMAN, & DENNEA FREEMAN, ORDER: Plaintiffs, v. (1) DENYING MOTION TO DISMISS [ECF No. 4] BAE SYSTEMS SAN DIEGO SHIP REPAIR INC. f/k/a SOUTHWEST (2) GRANTING IN PART AND DENYING IN PART MOTION TO INGALLS INCORPORATED f/k/a DISMISS [ECF No. 5] NEWPORT NEWS SHIPBUILDING

(3) GRANTING IN PART AND successor by merger to CONTINENTAL DENYING IN PART MOTION TO MARITIME INDUSTRIES, INC., DISMISS [ECF No. 6] SHIPBUILDING COMPANY, and DOES 1–400, Defendants. Pending before the Court in this wrongful death action are motions to dismiss filed by Defendant BAE Systems San Diego Ship Repair Inc. (“BAE”), Defendant Huntington Ingalls Incorporated (“HIC”), and Defendant National Steel and Shipbuilding Company (“NASSCO”). (ECF Nos. 4, 5, 6.) Plaintiffs Linnea Freeman, Katti Freeman, and Dennea Freeman (collectively, “Plaintiffs”) opposed, (ECF Nos. 11, 12, 13), and Defendants filed replies, (ECF Nos. 14, 15, 16). For the reasons stated below, HIC’s motion to dismiss is denied in full while BAE’s and NASSCO’s motions to dismiss are granted in part and denied in part. According to the allegations in the complaint, Plaintiffs are the surviving heirs of Dennis Freeman (“Decedent”). (ECF No. 1, Compl., at 2.) Decedent worked as an insulation contractor at various shipyards in California, Washington and Hawaii beginning in about 1980 through the mid-1990s. (Id. at 15.) Decedent sustained lung injuries as a result of his inhalation of asbestos fibers released during the handling of asbestos- containing products at these jobsites. (Id.) Plaintiffs allege that Defendants manufactured, distributed, or sold asbestos-containing products and supplied, installed, or maintained such products at Decedent’s worksites which resulted in his prolonged exposure and eventual illness and death. (Id.) Plaintiffs bring four causes of action for: (1) negligence under maritime law; (2) negligence under California law; (3) strict liability under maritime law; and (4) strict liability under California law. (See generally id.) Plaintiff Linnea Freeman, Decedent’s wife, brings an additional claim for loss of consortium. (Id. at 11–12.) All Defendants move to dismiss Plaintiffs’ negligence and strict liability claims for failure to state a claim, and BAE moves additionally to dismiss Linnea’s claim for loss of consortium. BAE also challenges this Court’s subject-matter jurisdiction while HIC contends that this Court lacks personal jurisdiction over it. Finally, BAE seeks dismissal of Plaintiffs’ prayers for damages for fraud and punitive damages while NASSCO attacks Plaintiffs’ specific allegations of fraudulent conduct. The Court begins by addressing the jurisdictional- related matters then turns to the sufficiency of the complaint. A party may challenge the Court’s subject-matter jurisdiction by bringing a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1). White v. Lee, 227 F.3d 1214, 1242 (9th Cir. 2000). “Rule 12(b)(1) jurisdictional attacks can be either facial or factual.” Id. “A ‘facial attack accepts the truth of the plaintiff’s allegations but asserts that they ‘are insufficient on their face to invoke federal jurisdiction.’” Leite v. Crane Co., 749 F.3d 1117, 1121 (9th Cir. 2014) (quoting Safe Air for Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir. 2004)). BAE’s jurisdictional attack is facial, positing that the allegations in the complaint are insufficient to invoke federal jurisdiction. (ECF No. 6, at 12–14.) “The district court resolves a facial attack as it would a motion to dismiss under Rule 12(b)(6): Accepting the plaintiff’s allegations as true and drawing all reasonable inferences in the plaintiff’s favor, the court determines whether the allegations are sufficient as a legal matter to invoke the court's jurisdiction.” Leite, 749 F.3d at 1121. BAE contends that this Court lacks maritime jurisdiction over the present action, (ECF NO. 6, at 12–14), while NASSCO argues the contrary, (ECF No. 5, at 10). The Court agrees with NASSCO. Federal courts have original jurisdiction to hear admiralty and maritime tort claims. U.S. Const. art. III § 2, cl.1; 28 U.S.C. § 1333(1). “[A] party seeking to invoke federal maritime jurisdiction over a tort claim must satisfy both a location test and a connection test.” Gruver v. Lesman Fisheries Inc., 489 F.3d 978, 982 (9th Cir. 2007) (citing Jerome B. Grubart, Inc. v. Great Lakes Dredge & Dock Co., 513 U.S. 527, 534 (1995)). The “location test” turns on “whether the tort occurred on navigable water or whether injury suffered on land was caused by a vessel on navigable water.” Grubart, 513 U.S. at 534. “The connection test raises two issues.” Id. “A court, first, must ‘assess the general features of the type of incident involved,’ to determine whether the incident has ‘a potentially disruptive impact on maritime commerce.’” Id. (quoting Sisson v. Ruby, 497 U.S. 358, 363–64 (1990)). “Second, a court must determine whether ‘the general character’ of the ‘activity giving rise to the incident’ shows a ‘substantial relationship to traditional maritime activity.’” Id. (quoting Sisson, 497 U.S. at 364 & n.2, 365). In regard to the location test, Plaintiffs allege that Decedent was exposed to asbestos at various shipyards. (ECF No. 1, at 15.) It is undisputed that exposure to asbestos during the repair of vessels floating on navigable waters satisfies the location test, Myhran v. Johns-Manville Corp., 741 F.2d 1119, 1121 (9th Cir. 1984), as do injuries incurred during the repair of ships in drydock, Simmons v. The Steamship Jefferson, 215 U.S. 130, 142 (1909); Perry v. Haines, 191 U.S. 17, 34 (1903). With this in mind, and “drawing all reasonable inferences in [Plaintiffs’] favor,” Leite, 749 F.3d at 1121, the Court concludes that Decedent’s exposure through his work as an insulation contractor at various shipyards over the span of over a decade took place, at least in part, on “navigable waters” for purposes of satisfying the location test. Turning to the first prong of the connection test, the Ninth Circuit has “taken an inclusive view of what general features of an incident have a potentially disruptive effect on maritime commerce.” In re Mission Bay Jet Sports, LLC, 570 F.3d 1124, 1128 (9th Cir. 2009). Indeed, in Wallis v. Princess Cruises, Inc., 306 F.3d 827 (9th Cir. 2002), the court held that a cruise ship passenger’s claim for intentional infliction of emotional distress stemming from an employee’s suggestion that her missing husband had likely been “sucked under the ship” and “chopped up by the propellers” fell within maritime jurisdiction because “[a] cruise line’s treatment of paying passengers clearly has potential to disrupt commercial activity.” 306 F.3d at 840–42. Considered alongside the treatment of cruise ship passengers, the Court finds that deadly exposure to asbestos in shipyards certainly falls under the wide umbrella of activities that have the potential to disrupt commercial maritime activity. Next, in order to show a substantial relationship to traditional maritime activity, “the tortfeasor's activity must be ‘so closely related to activity traditionally subject to admiralty law that the reasons for applying special admiralty rules would apply.’” Gruver v. Lesman Fisheries Inc., 489 F.3d 978, 983 (9th Cir. 2007) (quoting Grubart, 513 U.S. at 539).

Free access — add to your briefcase to read the full text and ask questions with AI

Freeman v. BAE Systems San Diego Ship Repair Inc., (S.D. Cal. 2023).

Freeman v. BAE Systems San Diego Ship Repair Inc. (Freeman v. BAE Systems San Diego Ship Repair Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Hulsecamp v. Teel
2 U.S. 358 (Supreme Court, 1796)
The Steamship Jefferson
215 U.S. 130 (Supreme Court, 1909)
International Shoe Co. v. Washington
326 U.S. 310 (Supreme Court, 1945)
Kermarec v. Compagnie Generale Transatlantique
358 U.S. 625 (Supreme Court, 1959)
Moragne v. States Marine Lines, Inc.
398 U.S. 375 (Supreme Court, 1970)
Mobil Oil Corp. v. Higginbotham
436 U.S. 618 (Supreme Court, 1978)
Burger King Corp. v. Rudzewicz
471 U.S. 462 (Supreme Court, 1985)
Miles v. Apex Marine Corp.
498 U.S. 19 (Supreme Court, 1990)
Yamaha Motor Corp., USA v. Calhoun
516 U.S. 199 (Supreme Court, 1996)
Norfolk Shipbuilding & Drydock Corp. v. Garris
532 U.S. 811 (Supreme Court, 2001)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Atlantic Sounding Co. v. Townsend
557 U.S. 404 (Supreme Court, 2009)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
United States v. Gandia-Maysonet
227 F.3d 1 (First Circuit, 2000)
Mavrix Photo, Inc. v. Brand Technologies, Inc.
647 F.3d 1218 (Ninth Circuit, 2011)