Henry Kalama v. Matson Navigation Co.

875 F.3d 297
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 13, 2017
Docket16-3408
StatusUnpublished
Cited by13 cases

This text of 875 F.3d 297 (Henry Kalama v. Matson Navigation Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henry Kalama v. Matson Navigation Co., 875 F.3d 297 (6th Cir. 2017).

Opinions

ROGERS, J., delivered the opinion of the court in which COOK and STRANCH, JJ„ joined. STRANCH, J. (pgs. 309-10),. delivered,a separate, concurring opinion.

OPINION

ROGERS, Circuit Judge.

■This case arose in the late 1980s, when merchant marine plaintiffs began filing asbestos-liability ’ suits against ship-owner and manufacturer defendants- in the Northern District of Ohio. At that time, the N.D. of Ohio ruled that it lacked personal jurisdiction over many of the defendants and indicated that it would transfer the relevant cases to scattered venues with proper jurisdiction. Eventually, the cases were consolidated into multidistrict litigation in the Eastern District of Pennsylvania. The E.D. of Pennsylvania held again in 2013 that the N.D. of Ohio lacks personal jurisdiction over the relevant defendants and that those defendants had not waived or forfeited their personal-jurisdiction defense. The E.D. of Pennsylvania accordingly dismissed thousands of parties. Now, ten plaintiffs appeal the E.D. of Pennsylvania’s decision as it relates to nineteen defendants. The E.D. of Pennsylvania did not abuse its discretion when it decided that the nineteen defendant-appellees did not waive or forfeit their personal-jurisdiction defense in the ten plaintiff-appellants’ suits.

I.

Numerous merchant marine plaintiffs began suing various ship-owners and asbestos manufacturers and suppliers in the late 1980s in the N.D. of Ohio for injuries related to asbestos exposure on commercial vessels. In re Asbestos Prods. Liab. Litig. (No. VI) (Bartel Opinion), 965 F.Supp.2d 612, 614-15 (E.D. Pa. 2013). These plaintiffs became known as the maritime docket (“MARDOC”) plaintiffs, and Judge Thomas Lambros presided over their cases in the N.D. of Ohio at that time.1 Id. at 615. Among the earliest filings in the N.D. of Ohio were ship-owner defendants’ motions to dismiss for lack of personal jurisdiction.

Judge Lambros held a hearing on these motions to dismiss on October 31, 1989, at which he ruled that a significant number of the defendants were not subject to personal jurisdiction in Ohio. It is undisputed that defendant-appellees are among the group of defendants who had no specific contacts with the state of Ohio and therefore were not subject to personal jurisdiction there under Judge Lambros’s ruling. Instead of granting the defendants’ motions to dismiss, however, Judge Lambros announced that the relevant cases should be transferred to a venue with proper jurisdiction. At a later hearing, on November 21, 1989, Judge Lambros indicated that, if a defendant did not wish to be transferred, it could “waive the in personam jurisdiction problem” by filing an answer with the court by January 5,1990.

Judge Lambros formalized these rulings in two orders. Order No. 40, issued on November 22,1989, incorporated the October 31 and November 21 rulings, instructed the MARDOC plaintiffs to “report the choice of forum as to those cases which are” subject to transfer for lack of personal jurisdiction, and stated that “[pjarties who, upon reconsideration of their motions to dismiss or transfer, wish to remain in this jurisdiction need only file answers to the complaints” by January 5, 1990. Order No. 41 followed on December 29,1989. The order transferred numerous cases “as to defendant shipowners which were determined not to be subject to in personam jurisdiction” to various federal district courts with personal jurisdiction over those defendants. The order also states: “Shipowner defendants, not subject to this transfer order, shall file answers by January 5, 1990 in accordance with the Order issued at the November 21, 1989 MAR-DOC conference.” Although Order No. 41 purported to transfer cases to scattered courts across the country, those transfers never actually occurred.

The ship-owner defendants did two things on December 29, 1989, in response to Judge Lambros’s orders. First, they moved the N.D. of Ohio to certify Order No. 40 for immediate interlocutory review. Second, they filed two master answers, both of which expressly preserved the defendants’ personal-jurisdiction defense. Master Answer No. 2, the more detailed of the two, reads:

In response to defendants’ motion to dismiss for lack of personal jurisdiction, the Court has issued MARDOC Order Nos. 40 and 41 which transfer the numerous cases against defendant to multiple jurisdictions, up to and including thirteen separate districts around the nation. Each defendant maintains that the transfers are contrary to law. -A motion to certify the order of transfer for interlocutory appeal has been filed on behalf of defendant, and in order to preserve the status quo pending appellate review of such order, defendant files its answer to the complaints as directed by MARDOC Order Nos. 40 and 41 under protest, so that said cases will not be transferred automatically pursuant to MARDOC Order No. 40 prior to completion of appellate review. By filing its answer, defendant specifically does not waive its defense of lack of personal jurisdiction or waive its objections to the propriety of the transfers.

The court never ruled on the defendants’ motion to certify Order No. 40 for interlocutory appeal.

The MARDOC plaintiffs were also unhappy with Judge Lambros’s decision to transfer their claims across the country and on February 13,1990, filed a motion to transfer all defendants to a single forum. All ship-owner defendants represented by Thompson Hine vehemently opposed the motion to transfer in toto. Their brief in opposition states:

Several nonresident defendants, although not subject to the personal jurisdiction of this Court, nevertheless agreed to waive their personal jurisdiction defense as the quid pro quo to avoid the expense of litigating these cases in as many as 13 different jurisdictions simultaneously, and to take advantage of the consolidated handling available in this Court.
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Furthermore, some nonresident defendants who are not subject to the personal jurisdiction of this Court elected to waive that valuable due process right and submit themselves to the Court’s jurisdiction to take advantage of this Court’s experience in the handling of mass tort litigation, the consolidated handling of cases available in this Court, and to avoid the inconvenience of litigating these cases simultaneously in 13 scattered jurisdictions. After having pressured those defendants into submitting to jurisdiction here, plaintiffs now seek to turn the tables on them and scatter the cases against them to the four winds on the basis that a court may transfer a case under Sec. 1404(a) where the court has jurisdiction over the defendant. The interests of justice do not favor such tactics.

Judge Lambros denied the motion to transfer in toto.

As the litigation continued in the N.D. of Ohio, a group of twenty cases was set to be tried together there. After four of the twenty had been tried, Judge Lambros held a hearing on January 8, 1991, to discuss the remaining sixteen. After deciding that a magistrate judge would oversee the remaining sixteen cases, Judge Lam-bros turned his attention at the hearing to two groups of forty-four cases each, one assigned to Ohio and one assigned to Michigan. In the ensuing discussion, a Thompson Hine attorney asserted:

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875 F.3d 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henry-kalama-v-matson-navigation-co-ca6-2017.