In Re: In the Matter of American River Transportation Co. LLC.

CourtDistrict Court, E.D. Louisiana
DecidedApril 7, 2021
Docket2:18-cv-02186
StatusUnknown

This text of In Re: In the Matter of American River Transportation Co. LLC. (In Re: In the Matter of American River Transportation Co. LLC.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re: In the Matter of American River Transportation Co. LLC., (E.D. La. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA IN THE MATTER OF AMERICAN CIVIL ACTION RIVER TRANSP. CO. LLC, AS OWNER AND OERATOR OF THE NO: 18-2186 M/V LOUISIANA LADY, PRAYING FOR EXONERATION FROM OR LIMITATION OF LIABILITY SECTION: "S" (2) ORDER AND REASONS IT IS HEREBY ORDERED that defendant LG Chem Ltd.'s Rule 12(b)(2) and 12(b)(6) Motion to Dismiss the complaints of claimants Ronald D. Neal and Philip Graves and Rebecca Whaley Graves, (Rec. Doc. 162) is DENIED. The Rule 12(b)(2) motion may be re-urged following completion of discovery limited to the issue of personal jurisdiction. BACKGROUND On September 3, 2017, the M/V LOUISIANA LADY, an inland tug owned and operated by American River Transportation Company ("ARTCO"), caught fire when it was doing fleet work on the Mississippi River. The fire broke out in the deck locker on the vessel's main deck. Two crew members, Spencer Graves and Ronald D. Neal, who were in their crew quarters on the main deck, suffered smoke inhalation and loss of consciousness. Graves, who was a Jones Act seaman aboard the vessel, died as a result of the accident. Neal, who was also a Jones Act seaman aboard the vessel, sustained injuries as a result of the accident. On March 1, 2018, ARTCO filed the instant petition for limitation of liability pursuant to 46 U.S.C. § 30501, et seq. and within the meaning of Rules 9(h) and F of the Supplemental Rules of Admiralty or Maritime Claims and Asset Forfeiture Actions seeking exoneration from or limitation of liability for the September 3, 2017, accident. Philip and Rebecca Whaley Graves, Spencer Graves' parents, filed a claim in their individual capacities and as representatives of Spencer Graves' estate. Neal also filed a claim. On September 3, 2018, the claimants filed claims pursuant to the Louisiana Products Liability Act, La. R.S. 9:2800.51 et seq., and the general maritime law. In their complaint, which they denominated as a third-party complaint, the claimants (hereinafter, "plaintiffs") alleged, inter alia, that an electronic cigarette with a lithium battery exploded on a shelf in the deck locker, ignited, caught fire, and was propelled around the room, causing the fire that resulted in

Graves' death Ronald Neal's injuries. They further alleged, inter alia, that the defective lithium ion battery, which was responsible for the subject fire and claimants' resulting injuries and death, was designed, manufactured and/or distributed by LG Electronics U.S.A., Inc. On December 10, 2018, plaintiffs amended to substitute LG Chem America, Inc. for LG Electronics, USA, Inc., alleging that LG Chem America, Inc., a wholly-owned subsidiary of LG Chem Ltd., manufactured the lithium ion battery in question. On October 14, 2020, plaintiffs filed a second supplemental and amending complaint ("second amended complaint"), alleging that LG Chem, Ltd. ("LG Chem") was the

manufacturer, designer, patent holder, seller, and distributor of the subject lithium ion batteries which exploded, causing the fire. The second amended complaint further alleges that co-claimant, John Wolfe, purchased the e-cigarette mod and lithium ion batteries from Epic E-Cigs in Prairieville, Louisiana, and the "LG chem lithium ion batteries housed inside the e- 2 cigarette mod exploded," causing the fire and resulting injuries and death.1

LG Chem has filed the instant motion to dismiss under Federal Rule 12(b)(2) arguing that it is not subject to personal jurisdiction. In support of this motion, it has supplied the declaration of Kyung Taek Oh, a sales professional at LG Energy Solution, Ltd. a newly-formed spin-off and wholly owned subsidiary of LG Chem. Oh declares that LG Chem is a Korean company with its headquarters and principal offices in Seoul, South Korea, and that "as of November 30, 2020, LG Chem did not have an office in the United States, was not registered to do business in the United States, did not have a registered agent for service of process in the United States, or have employees who worked in the United States."2 He further declared that he had "no reason to

believe that LG Chem currently has" an office, business registration, a registered agent, or employees in the United States. Id. Oh further declared that LG Chem previously manufactured 18650-sized lithium-ion batteries for use in "specific applications by sophisticated companies," and "no longer manufactures or sells lithium-ion battery cells."3 Oh stated that "LG chem never designed, manufactured, distributed, advertised or sold 18650 lithium-ion cells for sale to or use by individual consumers as standalone, removable batteries," or authorized any other entity to do so.4

1Rec. Doc. 148, ¶ 8. 2Rec. Doc. 162-2, Decl., ¶¶ 7-11. 3Id. at ¶ 18. 4Id. 3 LG Chem has also filed an alternative motion under Rule 12(b)(6) seeking dismissal on the grounds that the claims against LG Chem are too late, and do not relate back to the original filing date, and, further, that there is no valid procedural vehicle for plaintiffs' third-party claims against LG Chem. Plaintiffs oppose the Rule 12(b)(2) motion, arguing that LG Chem has consented to personal jurisdiction in another district, and further, that additional discovery on personal jurisdiction is required to establish the extent and contours of LG Chem's activities and corporate structure, and to resolve the question whether LG Chem delivered the product into the stream of commerce with the expectation that it would be used in Louisiana. LG Chem further argues that

the second amended complaint relates back to the date of the claimants' original filing, and that their claims are properly brought as a third-party complaint within this limitation action. DISCUSSION I. Motion to Dismiss under Federal Rule 12(b)(2) A. Legal Standards Personal jurisdiction “is an essential element of the jurisdiction of a district court, without which it is powerless to proceed to an adjudication.” Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 584(1999) (internal quotation omitted). Rule 12(b)(2) of the Federal Rules of Civil

Procedure provides that a defendant can move to dismiss an action against it for lack of personal jurisdiction. “The plaintiff bears the burden of establishing [personal] jurisdiction but is required to present only prima facie evidence.” Seiferth v. Helicopteros Attuneros, Inc., 472 F.3d 266, 270 (5th Cir. 2006). The allegations of the complaint, except as controverted by opposing 4 affidavits, are taken as true and all factual conflicts are resolved in the plaintiff’s favor. Thompson v. Chrysler Motors Corp., 755 F.2d 1162, 1165 (5th Cir. 1985). In resolving a motion to dismiss for lack of personal jurisdiction, the court may consider “affidavits, interrogatories, depositions, oral testimony, or any combination of the recognized methods of discovery.” Revell v. Lidov, 317 F.3d 467, 469 (5th Cir. 2002) (quotations omitted). Further, courts may permit discovery to allow the parties to ascertain facts relevant to determining personal jurisdiction. See Oppenheimer Fund, Inc. v. Sanders, 437 U.S. 340, 351 & n. 13 (1978). Personal jurisdiction over a non-resident defendant is determined by the state’s long-arm statute and the due process clause. ICEE Distrib., Inc. v. J&J Snack Foods, 325 F.3d 586, 591

(5th Cir. 2003).

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In Re: In the Matter of American River Transportation Co. LLC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-in-the-matter-of-american-river-transportation-co-llc-laed-2021.