Julio Ignacio Lourido Leon v. Million Air, Inc.

251 F.3d 1305, 2001 U.S. App. LEXIS 10475
Court of Appeals for the Eleventh Circuit·Decided May 21, 2001·No. 00-11938·Published

Opinion

JON O. NEWMAN, Circuit Judge:

This appeal concerns application of the doctrine of forum non conveniens in the context of a fatal airplane crash. The appeal is from the May 17, 1999, order of *1308 the District Court for the Southern District Florida (Lenore C. Nesbitt, District Judge) dismissing on the ground of forum non conveniens a suit by Julio Ignacio Lourido Leon and numerous other plaintiffs, all of whom are' citizens of Ecuador. The suit was brought against Millon Air, Inc. (“Millon Air”), an air cargo carrier and other defendants whom the plaintiffs claim are responsible for the October 22, 1996, crash of a cargo-carrying aircraft owned and operated by Millon Air. The plane, which had no passengers, crashed shortly after take-off' from Manta, Ecuador. In addition to killing the three members of the crew (who are not plaintiffs) the crash killed 30 residents of Ecuador living in the neighborhood of the crash site, and injured many others. The appeal is also from the District Court’s March 29, 2000, order denying the Plaintiffs’ motions for new trial under Fed.R.Civ.P. 59 and 60. We conclude that the District Judge did not exceed her discretion in dismissing the suit, but that the dismissal should have been appropriately conditioned. We therefore modify the order of dismissal, affirm the order as modified, and affirm the denial of the motion for new trial.

Procedural History

More than 700 people allegedly injured by the crash have filed approximately 100 lawsuits in state and federal courts in the United States. In 1997, thirty-six of the cases in the Southern District of Florida were consolidated before Judge Nesbitt under Case No. 96-3165, which is referred to in the pending litigation as Cedeno v. Millon Air (although its caption is Joza, et al. v. Millon Air). On January 12, 1998, Judge Nesbitt dismissed the consolidated Cedeno cases on the ground of forum non conveniens. The Court retained jurisdiction “over the enforcement of the concessions made by the Defendants and approved by this Court.” Cedeno Op. at 12. These were (1) concession of “primary liability for damage caused” by the crash, (2) acceptance of service and jurisdiction of the Ecuadorian courts, (3) waiver of statute of limitations defenses, and (4) satisfaction of any final judgnents entered by the Ecuadorian courts. Id. The Cedeno plaintiffs timely appealed.

On January 27, 1998, the Congress of Ecuador enacted “Law No. 55,” which provides:

Without affecting its literal meaning, articles 27, 28, 29 and 30 of the Civil Procedure Law, are hereby interpreted so that, in case of international concurrent jurisdiction, the plaintiff can freely choose to demand [i.e., to file a complaint], in Ecuador or in another country, with the sole exception of cases which — pursuant to an explicit provision of law, must be resolved by Ecuadorian Judges, like the divorce of an Ecuadorian citizen.... In the case that the demand is filed outside of Ecuador, the national competence and the jurisdiction of the Ecuadorian Judges on the case will be terminated forever.

In December 1997, just prior to the enactment of Law No. 55, a Broward County state court dismissed a consolidated action brought against Millon Air by 106 Ecuadorans allegedly injured by the crash. Some of these plaintiffs subsequently filed suit in an Ecuadorian court of first instance, which in April 1998 dismissed the case because of Law No. 55.

This development prompted the Cedeno plaintiffs in September 1998 to ask this Court to stay the Cedeno appeal and remand the case to the District Court. Meanwhile, on October 13, 1998, the Superior Court of Justice, of Portoviejo (Ecuador) reversed the trial court’s decision in the case involving the 106 plaintiffs in the Broward County suit, holding that Law No. 55 did not apply to cases that a United States court had dismissed because of fo *1309 rum non conveniens. “It should be supposed that law 55 is in effect when a foreign judge has taken up the cause and is hearing it, but not in a case in which the foreign judge has refused to hear the lawsuit, as has done the Broward County Judge in his decision.”

Ultimately, this Court remanded the Ce-deno litigation to the District Court, without adjudicating the correctness of the forum non conveniens dismissal.

On October 15,1998, the Plaintiffs in the pending case (“Plaintiffs” or “Leon Plaintiffs”) filed their complaint in the Southern District of Florida. The Defendants and counsel were the same as in the Cedeno action. In December 1998, the Defendants filed a motion to dismiss the Leon action based on forum non conveniens. The motion included affidavits from American and Ecuadorian lawyers, vouching for the adequacy of the Ecuadorian legal system. In April 1999, the Plaintiffs responded to the Millón Air motion, first by informal letter and then by a formal pleading. In their formal Response, the Plaintiffs argued that the Ecuadorian legal system was so fragile that it was not an effective forum to decide the case. They alleged that the Ecuadorian legal system was in turmoil and had been recently shut down by a strike of the judges. The Plaintiffs said they were “rely[ing] on prior filings” (presumably from the Cedeno case). The Leon plaintiffs also discussed the possibility (in their informal letter, which was appended as an exhibit to the formal pleading) that Law No. 55 had eliminated the jurisdiction of the Ecuadorian courts.

On May 17, 1999, Judge Nesbitt entered an order dismissing the case on the ground of forum non conveniens. Noting the marked similarity between the Leon and the Cedeno cases, she relied primarily on her reasons for dismissing Cedeno (described below), adding only explicit consideration of Law No. 55. On that issue, she acknowledged that Law No. 55 had been enacted since her Cedeno decision, but said that the Ecuadorian appellate court had ruled that Law No. 55 did not bar an Ecuadorian court from hearing claims dismissed because of forum non conveniens. Judge Nesbitt also noted that Millón Air had given the Leon Plaintiffs the same promises given to the Cedeno Plaintiffs. She therefore dismissed the case, although she did not explicitly make Millón Air’s concessions a condition of her dismissal ■order, as she had done in Cedeno.

The Leon Plaintiffs subsequently moved for a new trial, alleging newly discovered evidence that Millón Air had denied liability in one of the Ecuadorian actions, in violation of their Cedeno promise to contest only damages. The District Court rejected this motion, on the ground that the Ecuadorian action where Millón Air was contesting liability did not involve a Cedeno plaintiff.

The Cedeno

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Julio Ignacio Lourido Leon v. Million Air, Inc., 251 F.3d 1305, 2001 U.S. App. LEXIS 10475 (11th Cir. 2001).

251 F.3d 1305 (Julio Ignacio Lourido Leon v. Million Air, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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