Ganpat v. Eastern Pacific Shipping

Court of Appeals for the Fifth Circuit·Decided May 1, 2024·No. 23-30021·Published

Opinion

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

_____________ FILED May 1, 2024

No. 22-30758

Lyle W. Cayce

consolidated with Clerk No. 23-30021

Kholkar Vishveshwar Ganpat,

Plaintiff—Appellee,

versus

Eastern Pacific Shipping PTE, Limited, doing business as EPS,

Defendant—Appellant.

Appeal from the United States District Court for the Eastern District of Louisiana USDC No. 2:18-CV-13556

Before Dennis, Engelhardt, and Oldham, Circuit Judges. Kurt D. Engelhardt, Circuit Judge:

Defendant-Appellant Eastern Pacific Shipping Pte., Limited (“EPS”), a Singaporean ship management company, appeals the district court’s choice-of-law ruling that the claims asserted by Plaintiff-Appellee Kholkar Vishveshwar Ganpat (“Kholkar”), an Indian citizen, are governed by United States law—the Jones Act and general maritime law. Kholkar’s claims arise from his having contracted malaria in Africa while working as a

No. 22-30758 c/w No. 23-30021

member of the crew of a Liberian ship that EPS manages. We REVERSE and REMAND.

I.

In May 2017, Kholkar, an Indian citizen, contracted a serious form of malaria while in Africa.1 At that time, he worked as a crew member aboard the M/V STARGATE, a Liberian-flagged ship owned by non-party Larchep Shipping, Inc., a Liberian company, but managed by EPS. EPS, an international ship management company, is incorporated in Singapore and has its principal place of business there. Kholkar blames EPS for his having contracted malaria, which ultimately caused him to suffer gangrene and amputation of several toes, as well as hospitalization for 76 days. Specifically, Kholkar contends that EPS (1) failed to adequately provision the M/V STAR- GATE while it was in port in the United States, despite knowing that the ship lacked sufficient antimalarial medication for its upcoming voyage to Gabon, a coastal country in Africa where the risk of contracting malaria is known to generally be high; and (2) failed to dispense appropriate prophylactic antimalarial medication to the ship’s crew before, during, and after the vessel’s time in Gabon.

Contending that EPS owned and/or operated the M/V STARGATE, and was his “borrowed employer,” Kholkar filed this suit against EPS in December 2018. Alleging negligence, unseaworthiness, and that “EPS has willfully and wantonly failed” to promptly provide/pay maintenance and cure, Kholkar seeks relief under the Jones Act and the general maritime law of the United States. He also asserts a contractual claim for disability benefits pursuant to Article 24 of the “TCC Collective Agreement” between the

1 Malaria is most often transmitted to humans bitten by a certain type of mosquito that has been infected by a malaria-causing parasite. Kholkar’s malaria was caused by the Plasmodium falciparum parasite.

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International Transport Workers’ Federation and EPS, which relates to and is made part of Kholkar’s “Seafarer’s Employment Agreement” with Ventnor Navigation, Inc., a Liberian company.

EPS challenges Kholkar’s invocation of United States law, emphasizing that (1) Kholkar is a resident and citizen of the Republic of India; (2) EPS is incorporated under the laws of the Republic of Singapore with its principal place of business in Singapore; (3) Kholkar’s claims arise out of his service to, and EPS’s management of, a Liberian-flagged vessel owned by a Liberian corporation, Larchep Shipping, Inc.; and (4) Kholkar’s employment contract with a Liberian company, Ventnor Navigation, Inc., was signed in India, and contains a provision stating that the “[a]greement shall be governed by and interpreted in accordance with the laws of the state of ships [sic] flag aboard which the [s]eaman is employed,” i.e., Liberia.2 Furthermore, adds EPS, Kholkar contracted malaria while in Africa, became symptomatic as the ship sailed from Owendo, Gabon (Africa) to Rio de Janeiro, Brazil (South America ), and was hospitalized in Brazil before returning to India. Thus, the only connections between the United States and this lawsuit are (1) Kholkar’s choice of forum; (2) EPS’s alleged failure to replenish the M/V STAR- GATE’S antimalarial medications—while the ship was in port in Savannah, Georgia—before it sailed to Barranquilla, Columbia, and then Owendo, Gabon ; and (3) EPS-managed ships’ frequent travel to/from American ports.

The district court initially deferred making a choice-of-law ruling, reasoning that “development of the facts [was] necessary.” Following discovery , however, the parties filed five motions for summary judgment based upon and requiring a choice-of-law determination. The district court

2 See Kholkar’s “Seafarer Employment Agreement” at ¶ 25. The ship aboard which Kholkar was employed, the M/V STARGATE, is registered in and flies the flag of Liberia.

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concluded that the law of the United States (the Jones Act and general maritime law) governs Kholkar’s tort claims and claim for breach of the collective bargaining agreement. See Ganpat v. Eastern Pacific Shipping Pte., Ltd., 642 F. Supp. 3d 524 (E.D. La. 2022). 3 This interlocutory appeal followed.4 II.

In circumstances where multiple nations have a connection to a maritime tort, international maritime law “attempt[s] to avoid or resolve conflicts between competing laws by ascertaining and valuing points of contact between the transaction and the [nations] whose competing laws are involved.” Lauritzen v. Larsen, 345 U.S. 571, 582 (1953). “The criteria, in general, appear to be arrived at from weighing [] the significance of one or more connecting factors between the shipping transaction regulated and the national interest served by the assertion of authority.” Id.

A.

American courts determine whether maritime claims are governed by the law of the United States (the Jones Act and general maritime law), rather than the conflicting law of a foreign nation, utilizing the factors outlined by the Supreme Court’s decisions in Lauritzen v. Larsen; Romero v. International Terminal Operating Co., 358 U.S. 354 (1959); and Hellenic Lines Ltd. v. Rhoditis , 398 U.S. 306 (1970). These factors, which have become to be known as

3 In September 2021, Kholkar amended his complaint to add a claim for “an intentional general maritime law tort” arising from a lawsuit that EPS and its Indian subsidiary, Eastern Pacific Shipping (India) Private, Ltd. (“EPS India”), had filed against him in India. According Kholkar, the Indian suit amounts to “deliberate and malicious efforts to intimidate [him] from seeking legal redress” in the United States. The district court concluded that the law of India governs that claim. 642 F. Supp. 3d at 541–42. That ruling has not been appealed.

4 The district court certified its choice-of-law rulings for interlocutory appeal, pursuant to 18 U.S.C. § 1292(b), and ordered that the case be stayed pending resolution of the appeal. 642 F. Supp. 3d at 543–44.

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the “Lauritzen–Rhoditis factors” are:

(1) the place of the wrongful act; (2) the law of the flag; (3) the allegiance or domicile of the injured worker; (4) the allegiance of the defendant shipowner; (5) the place of the contract; (6) the inaccessibility of the foreign forum; (7) the law of the forum; and (8) the shipowner’s base of operations.

See Rhoditis, 398 U.S. at 309; Solano v. Gulf King 55, 212 F.3d 902, 905 (5th Cir. 2000). Lauritzen identified the first seven factors in 1953. Seventeen years later, the Supreme Court added the eighth factor, in Rhoditis, explaining that the list of seven was not intended to be exhaustive, and the totality of the circumstances must be considered. See Rhoditis, 398 U.S. at 309 (“[T]he shipowner’s base of operations is another factor of importance . . . and there well may be others.”).

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