In re Sinking of the Motor Vessel Ukola

462 F. Supp. 385, 1980 A.M.C. 1472, 1978 U.S. Dist. LEXIS 7223
CourtUnited States Judicial Panel on Multidistrict Litigation
DecidedDecember 15, 1978
DocketNo. 354
StatusPublished
Cited by3 cases

This text of 462 F. Supp. 385 (In re Sinking of the Motor Vessel Ukola) is published on Counsel Stack Legal Research, covering United States Judicial Panel on Multidistrict Litigation primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Sinking of the Motor Vessel Ukola, 462 F. Supp. 385, 1980 A.M.C. 1472, 1978 U.S. Dist. LEXIS 7223 (jpml 1978).

Opinion

OPINION AND ORDER

Before JOHN MINOR WISDOM, Chairman, and EDWARD WEINFELD, EDWIN A. ROBSON, STANLEY A. WEIGEL, ANDREW A. CAFFREY and ROY W. HARPER, Judges of the Panel.

PER CURIAM.

I. BACKGROUND

This litigation consists of eleven actions pending in five districts: tnree each in the Southern District of Florida and the District of Puerto Rico, two each in the Southern District of Texas and the Southern District of New York, and one in the Eastern District of Louisiana.1 Each of these actions involves the January 1977 sinking of the motor vessel Ukola in the Gulf of Mexico, approximately 200 miles west of Key West, Florida. As a result of this disaster, twenty of the Ukola’s crewmen were killed, and the vessel and its cargo of sugar were lost.

The actions are of three types. Seven of the actions have been brought by, or on behalf of the estates of, crew members on the Ukola; one action has been brought to recoup the value of the lost cargo; and three actions are interpleader actions that have been brought by insurers of the Ukola.

A. Crew Member Actions

The two New York actions, the Louisiana action, two of the Florida actions, one of the Texas actions and one of the Puerto Rico actions have been brought by, or on behalf of the estates of, crew members. Plaintiffs in these seven actions include one surviving crew member and representatives of the estates of fifteen deceased crew members. Many of these representatives have filed more than one action; for example, eight representatives are plaintiffs in an action in each of the five districts in which crew member actions are pending. Defendants include a variety of individuals and foreign and domestic corporations that allegedly owned, operated, chartered, controlled and/or acted as agent for the Ukola, as well as two insurance companies. In each crew member action, plaintiffs allege that the Ukola was unseaworthy and that the negligence of the owner-operator defendants caused the sinking. Plaintiffs seek to recover damages under, inter alia, the Jones Act, the Death on the High Seas Act and/or state wrongful death statutes.

Only minimal discovery and other pretrial proceedings have taken place in most of these crew member actions. In the Texas crew member action, however, the court has entered orders of default on the issue of liability against Arosa Mercantil, S.A. (Arosa) and Inversiones Calmer S.A. (Inversiones), two of the three defendants in that action, because Arosa and Inversiones failed to comply with certain orders of the court concerning discovery. In addition, many defendants in the Florida crew member actions have filed motions to quash service of process and to dismiss for lack of in person-am jurisdiction.

B. Lost Cargo Action

Plaintiffs in the third Florida action are the shipper, the consignee and the insurer of the Ukola’s cargo of sugar. Defendants in this action include many of the defendants named in the crew member actions, as well as an individual who was allegedly the Ukola’s master at the time of her sinking. Plaintiffs allege that defendants were negligent in the care, custody and control of the cargo, and plaintiffs seek recovery of the value of the lost cargo. As in the Florida crew member actions, numerous defendants in the lost cargo action have filed motions to quash service of process and to dismiss for lack of in personam jurisdiction.

C. Interpleader Actions

The second Texas action and the two other Puerto Rico actions have been filed as interpleader actions under 28 U.S.C. § 1335. Plaintiff in the Texas interpleader action is an insurance company that provided insurance to cover “Protection and Indemnity” risks for the Ukola. The two Puerto Rico interpleader actions were commenced by different groups of insurance underwriters and/or insurance companies which were involved in reinsuring, respectively, a policy [387]*387of freight insurance and a policy of hull, machinery and increased value insurance on the Ukola. Defendants in these three inter-pleader actions include ah parties to the other actions before the Panel, as well as additional surviving crew members of the Ukola and the personal representatives of other deceased crew members.

Pretrial proceedings in the Texas inter-pleader action are in an incipient stage. In the Puerto Rico interpleader actions, the court has ordered plaintiffs to deposit the reinsurance proceeds into the registry of the court, and initially restrained defendants from instituting or prosecuting any proceeding in any state or federal court concerning the reinsurance proceeds. This restraining order has now been modified to allow the other actions in this litigation to proceed.

II. PROCEEDINGS BEFORE THE PANEL

Representatives of the estates of seven crew members have moved the Panel, pursuant to 28 U.S.C. § 1407, to transfer all actions pending in districts other than the Southern District of Florida to that district for coordinated or consolidated pretrial proceedings with the actions pending there. Representatives of the estates of an additional nine crew members, one surviving crew member, plaintiffs in the Florida lost cargo action, Arosa and Inversiones favor this motion. One of the corporations that allegedly owned or controlled the Ukola, the insurance company that filed the Texas interpleader action, and another insurance company oppose transfer as premature.

At the hearing on this matter, the plaintiffs in, inter alia, the Texas crew member action moved the Panel to exclude the claims in that action against defendants Arosa and Inversiones from any order of transfer under Section 1407. No party opposes that motion.

We find that these actions involve common questions of fact and that centralization of these actions in the Southern District of Florida for coordinated or consolidated pretrial proceedings at this time will serve the convenience of the parties and witnesses and promote the just and efficient conduct of the litigation. We also conclude, however, that inclusion in those proceedings of the claims in the Texas crew member action against defendants Arosa and Inversiones would not accomplish the goals of Section 1407 and, accordingly, we sever those claims and remand them to the Southern District of Texas for further proceedings.

III. THE QUESTION OF TRANSFER

The opponents of transfer contend that until the pending motions to quash service of process and to dismiss for lack of in personam jurisdiction in the Florida actions are resolved, Section 1407 transfer would be premature.

We do not find these arguments persuasive. As no party disputes, the actions before us involve numerous common questions of fact concerning (1) the seaworthiness of the Ukola; (2) the alleged negligence of several parties; (3) the relationship of various parties to the ownership, control or operation of the Ukola; and (4) insurance coverage. Transfer for coordinated or consolidated pretrial proceedings is thus necessary in order to prevent duplicative discovery, eliminate the possibility of conflicting pretrial rulings, and conserve the time of the parties and the judiciary.

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Bluebook (online)
462 F. Supp. 385, 1980 A.M.C. 1472, 1978 U.S. Dist. LEXIS 7223, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-sinking-of-the-motor-vessel-ukola-jpml-1978.