Hill v. Majestic Blue Fisheries, LLC

District Court, D. Guam·Decided April 12, 2013·No. 1:11-cv-00034·Unknown

Opinion

AMY HILL, as Personal Representative of the Estate of DAVID HILL, deceased, and in CIVIL CASE NO. 11-00034 AMY HILL’s capacity as an Individual,

Plaintiff, ORDER AND OPINION RE: vs. DEFENDANT DONGWON INDUSTRIES CO., LTD’S RENEWED MAJESTIC BLUE FISHERIES, LLC, a MOTION TO DISMISS PLAINTIFF’S Delaware Limited Liability Company, and COMPLAINT DONGWON INDUSTRIES CO., LTD., a

Foreign Corporation incorporated under the laws of Korea, Defendants. Before the court is a Renewed Motion to Dismiss Plaintiff’s Complaint (“the Motion”) filed by Dongwon Industries Co., Ltd. (“Dongwon”). See ECF No. 166. Defendant Dongwon moves to dismiss Plaintiff’s Complaint (“the Complaint”) pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. See id. at 3. Plaintiff Amy Hill (“Plaintiff”) opposes the Motion, and, in the alternative, moves for leave to amend the Complaint. See ECF No. 168. After reviewing the parties’ briefs, and relevant cases and statutes, and having heard argument from counsel on the matter, the court hereby DENIES the Motion for the reasons stated herein. On October 13, 2009, Captain David Hill executed a contract with Majestic Blue Fisheries, LLC (“Majestic”) to act as captain of the F/V Majestic Blue (“the Vessel”). Compl. ¶ 48, ECF No. 1. The contract was for three months onboard the Vessel followed by three months of vacation, after which Captain Hill would return for another three months on the Vessel. Id. ¶ 51. Majestic is a Delaware limited liability company and at all relevant times was the record owner of the Vessel. Id. ¶ 9. Majestic was formed by Dongwon, a foreign corporation

incorporated under the laws of Korea. Id. ¶ 10. Dongwon acquired StarKist to expand its global reach and penetrate the U.S. tuna market through a recognized brand. Id. ¶ 35. In furtherance of this plan, Dongwon formed Majestic so that it could act as record owner of the Vessel. This would allow the Vessel to fly a U.S. flag instead of a Korean flag, conferring certain benefits. Id. ¶ 37(a). Dongwon then transferred the Vessel to Majestic for ten dollars. Id. ¶ 37(c). Although Majestic was the record owner of the Vessel, the relationship between Dongwon and Majestic continued after transfer of the Vessel. Id. ¶¶ 9, 37. Dongwon directly paid all employees of Majestic at all relevant times, including Captain Hill when he was captain of the Vessel.1 Id. ¶¶ 37(d), 37(e). Dongwon employees also directly communicated with Captain Hill regarding issues related to his employment with Majestic, and made travel and other

logistical arrangements for the crew. Id. ¶¶ 37(k), 37(o). Dongwon paid to provision and bunker the Vessel. Id. ¶ 37(f). It also made major operational decisions regarding the Vessel, including maintenance, onboard policies and procedures, its daily operations, and the disposition of the entire catch. Id. ¶¶ 37(g), 37(h). Aside from the captains and crewmembers of the Vessel, Majestic only had one 1 The Complaint alleges, however, that Majestic also compensated Captain Hill for his employment. Compl. ¶ 28. employee, who reported directly to and took orders from Dongwon. Id. ¶¶ 37(l), 37(i). Upon transferring the Vessel to Majestic, Dongwon had required Majestic to retain most of the crewmembers who had worked onboard the Vessel prior to the transfer. Id. ¶ 37(n). Both Majestic and Dongwon utilized employment websites to recruit American captains and crewmembers for the Vessel. Id. ¶¶ 27(c), 43(b). Captain Hill commenced his second term as captain on or about May 9, 2010, when he arrived in Guam to relieve Captain Thomas Ridenour and meet the Vessel before it departed on the tuna fishing expedition during which the Vessel eventually sank. Id. ¶¶ 52, 73. Immediately

prior to Captain Hill’s arrival in Guam, the Vessel had undergone maintenance work at a Chinese shipyard. Id. ¶ 52. Captain Ridenour had directly observed the maintenance work performed on the Vessel, and according to him, the maintenance work was below industry standard and would not pass a detailed inspection. Id. ¶¶ 53, 54, 56. Captain Ridenour stated that lack of time, planning, communication, and coordination on the part of Dongwon and Majestic, and the poor quality of the shipyard’s maintenance work all contributed to causing serious problems for the Vessel. Id. ¶ 55. On or about May 20, 2010, the Vessel departed Guam to begin a tuna fishing expedition. Id. ¶ 73. Captain Hill was the only United States national onboard. Id. ¶ 61. All the other officers were Korean nationals, and the remaining crewmembers were either nationals of Korea or of

Southeast Asian countries. Id. ¶ 62. Although only a handful of people onboard the Vessel spoke English, no translator was provided as was standard practice on other similar vessels. Id. ¶ 61. Other officers of the Vessel were unqualified and/or incompetent. For example, the “Fishing Master” directed the Vessel in the wrong direction when leaving the port of Guam and the Vessel was forced to turn back. Id. ¶ 63. The Radio Officer was unable to perform his function properly, which resulted in Captain Hill having difficulty with transmitting required reports about the Vessel’s location and status to Majestic and Dongwon. Id. ¶ 65. Furthermore, the other officers and crewmembers routinely and deliberately ignored the orders of Captain Hill and violated international pollution treaties. Id. ¶ 67. Captain Hill’s attempts to exercise control over the other officers and crewmembers were futile. Id. ¶64. The Fishing Master was treated as the de facto captain of the Vessel. Dongwon and Majestic were aware of these violations as previous captains had reported these problems to them, and one even filed suit,2 alleging mutiny, abuse by crew, and violations of the International Convention for the Prevention of Pollution from Ships (MARPOL). Id. ¶ 69.

On or about June 10 or 13, 2010, the Vessel sank in the West Pacific Ocean after it began taking on water in calm seas and good weather. Id. ¶¶ 8, 74, 76. Twenty-two of the twenty-four crewmembers onboard had abandoned ship and were later rescued by the F/V Pacific Breeze. Id. ¶ 75. After two days of search and rescue by the United States Coast Guard, the two remaining crewmembers, Captain Hill (“Decedent”) and the Vessel’s chief engineer, were not found. Id. ¶ 77. On October 26, 2010, Plaintiff filed the Complaint against Dongwon and Majestic (collectively “Defendants”) in the U.S. District Court for the Southern District of Florida. See ECF No. 1. Plaintiff alleged six claims: (1) Survival Action for Negligence for Pre-Death Pain

and Suffering Under the Jones Act Against Majestic and Dongwon; (2) Claim for Wrongful Death Under the General Maritime Law Against Dongwon and Majestic; (3) Claim for Wrongful Death Under the Death on the High Seas Act (“DOHSA”) Against Dongwon and Majestic; (4) Claim for Negligence Causing Wrongful Death Under the Jones Act Against Dongwon and Majestic; (5) Claim for Intentional Infliction of Emotional Distress Against Dongwon and 2 Majestic Blue Fisheries, LLC v. Pine, Civil Case No. 10-00004 (D. Guam). Majestic for Amy Hill; and (6) Claim for Invasion of Privacy Against Dongwon and Majestic for Amy Hill.3 On November 22, 2010, Majestic filed a motion to dismiss the Complaint for lack of jurisdiction. See ECF No. 4. On November 30, 2010, Majestic filed an alternative motion for change of venue. See ECF No. 5. On January 18, 2011, Dongwon filed its motion to dismiss for lack of jurisdiction, or in the alternative, motion for change of venue. See ECF No. 41. On September 6, 2011, the U.S. District Court for the Southern District of Florida issued an order transferring the case to the District of Guam. See ECF No. 149. The order noted that by

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