Keach v. Canadian Pacific Railway Co.

574 B.R. 381, 2017 Bankr. LEXIS 1945
CourtUnited States Bankruptcy Court, D. Maine
DecidedJuly 7, 2017
DocketCase No. 13-10670; Adv. Proc. No. 14-1001
StatusPublished
Cited by2 cases

This text of 574 B.R. 381 (Keach v. Canadian Pacific Railway Co.) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keach v. Canadian Pacific Railway Co., 574 B.R. 381, 2017 Bankr. LEXIS 1945 (Me. 2017).

Opinion

MEMORANDUM OF DECISION

Peter G. Cary, Judge

Pending before me is Canadian Pacific Railway Company and Soo Line Railroad Company’s (“CP” and “Soo Line,” .respectively and the “Defendants,” jointly) Motion to Dismiss Plaintiff Robert J. Reach’s (the “Estate Representative”) Third Amended Complaint (Docket Entry “DE” 230) (the “Complaint”).1 This motion (the “Motion to Dismiss”) is predicated on two general grounds: forum non conveniens and multiple theories contesting the adequacy of the Complaint under Fed. R. Civ. P. 12(b)(6), made applicable to this proceeding by Fed. R. Bankr. P. 7012(b). For the reasons set forth below, I will grant the Motion to Dismiss as to Count II and deny it as to the remaining Counts of the Complaint.

1. Facts.

The facts that give rise to the Complaint are not really in dispute. Instead, the parties disagree about how to view those facts in light of the Counts in the Complaint. At the motion to dismiss stage, I take the facts alleged in the Complaint as true. Rederford v. U.S. Airways, Inc., 589 F.3d 30, 34-35 (1st Cir. 2009).

On or about June 29, 2013, multiple truckloads of crude oil were loaded into seventy-two DOT-111 tank cars (the “Train”) in New Town, North Dakota, bound for an oil refinery in Saint John, New Brunswick, Canada. The transport of the Train was in accordance with a bill of lading in which the shipper, Western Petroleum Co., accepted the terms and conditions of CP for the shipment of the freight (the “Bill of Lading”).2 CP and its subsidiary Soo Line, the co-issuers of the Bill of Lading, were responsible for operating and transporting the Train from North Dakota to Cote, Saint-Luc, Quebec. On July 5, 2013, they transferred control of the Train to the debtor, Montreal, Maine & Atlantic Railway, Ltd.' (“MMA”). No new bill of lading was issued. MMA commenced the second leg of the Train’s transport towards its ultimate destination [385]*385in Saint John, New Brunswick. Late in the evening of July 5, 2013, while the Train was in the control of MMA, it was parked and left unattended on MMA’s subsidiary Montreal, Maine & Atlantic Canada Co.’s (“MMA-Canada”) track in Nantes, Quebec. At around 1:00 the next morning, the unattended Train began to roll downhill and soon after derailed in downtown Lac-Megantic, Quebec, killing forty-seven people and causing massive explosions, uncontrolled fire, and extensive property and environmental damage (the “Derailment”). The Derailment has been (and remains) the subject of many lawsuits in both the United States and Canada. Shortly after the Derailment, in August of 2013, MMA filed a Chapter 11 bankruptcy petition in this Court. MMA’s Chapter 11 Plan was confirmed on October 9, 2015, and the Estate Representative now serves as the representative of the post-effective date estate of MMA.

On January 30, 2014, the Estate Representative, then serving as Trustee, of the MMA bankruptcy estate, filed the initial complaint in this proceeding against several defendants no longer parties to this action.3 (DE 1.) Throughout 2014, the case remained in a holding pattern while the parties conducted settlement negotiations. On January 9, 2015, the Estate Representative while acting as Trustee, filed the First Amended Complaint which added CP and Irving Oil Ltd. as defendants. (DE 95.) Six days later, CP moved to withdraw the reference, which motion was denied by the United States District Court for the District of Maine on June 8, 2015. Keach v. World Fuel Services, Corp. (In re Montreal Me. & Atl. Ry., Ltd.) No. 1:15-mc-22-NT, 2015 WL 3604335 (D. Me. June 8, 2015). Following the District Court’s ruling, CP filed its first motion to dismiss in this Court, which I denied on August 20, 2015. (DE 157.) CP then filed its answer to that complaint. In February of 2016, having reached settlements with all of the non-CP defendants, the Estate Representative either moved to dismiss or filed stipulations of dismissal with respect to all of the non-CP defendants. On June 16, 2016, CP filed its second motion to withdraw the reference, on the grounds that all of the wrongful death and personal injury lawsuits against MMA and others had been consolidated in the District Court and those cases alleged the same basic facts as those alleged in this case. The District Court denied the second motion to withdraw the reference on September 28, 2016. Keach v. Canadian Pac. Ry. Co., No. 1:16-mc-00180-JDL, 2016 WL 5416456 (D. Me. Sept. 28, 2016).

On September 29, 2016, after receiving approval from me over CP’s objection, the Estate Representative filed the Complaint, adding Soo Line as a defendant.4 (DE 230.) The Complaint contains four counts:. Negligence (Count I), Breach of Contract/Breach of Warranty (Count II), Negligent Misrepresentation (Count III), and Disallowance of Ciato'—namely CP’s proof of claim in the bankruptcy case (Count IV). On October 7, 2016, CP and Soo Line filed the Motion to Dismiss, seeking dismissal on the grounds of forum non conve-niens and failure to state a claim which entitles the Estate Representative to relief. Oral arguments were held on December 20, 2016.

[386]*386II. Motion to Dismiss Standard.

When considering the Motion to Dismiss, I must accept as true the factual allegations of the Complaint, and draw all reasonable inferences in favor of the plaintiff, the' Estate Representative. Trans-Spec Truck Serv., Inc. v. Caterpillar, Inc., 524 F.3d 315, 320 (1st Cir. 2008). So considered, the Complaint must include “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). A claim is facially plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). “[Evaluating the plausibility of a legal claim ‘requires the reviewing court to draw on its judicial experience and common sense.’ ” Ocasio-Hernandez v. Fortuno-Burset, 640 F.3d 1, 12 (1st Cir. 2011) (quoting Iqbal, 556 U.S. at 679, 129 S.Ct. 1937). However, “[i]f the factual allegations in the complaint are too meager, vague, or conclusory to remove the possibility of relief from the realm of mere conjecture, the complaint is open to dismissal.” Haley v. City of Boston, 657 F.3d 39, 46 (1st Cir. 2011) (quotation marks omitted).

III. Analysis.

A. Forum non conveniens.

The doctrine of forum non con-veniens is a discretionary tool that permits a court to dismiss a claim, even though it has jurisdiction,'because there is a better venue in which the parties may seek resolution of their conflict.

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