Loya v. Starwood Hotels

CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 2, 2009
Docket07-35571
StatusPublished

This text of Loya v. Starwood Hotels (Loya v. Starwood Hotels) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loya v. Starwood Hotels, (9th Cir. 2009).

Opinion

FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

GILLIAN B. LOYA, as Personal  representative of the Estate of Ricardo D. Loya, deceased and as Litigation Guardian Ad Litem for I.L. and G.L., the surviving minor children of the decedant, Ricardo D. Loya; Estate of RICHARD D. LOYA, Plaintiffs-Appellants, v. STARWOOD HOTELS & RESORTS WORLDWIDE, INC., doing business as Westin Hotel Company, doing business as Westin Regina Golf No. 07-35571 Beach Resort and Club Regina Westin Hotel Company doing  D.C. No. CV-06-00815-MJP business as Westin Regina Golf OPINION and Spa Resort; CORPORATION MEXITURE SA DE CV, doing business as Xplora Adventours Los Cabos; PADI WORLDWIDE; PADI AMERICAS; JOHN DOES; RAINTREE RESORTS INTERNATIONAL INC, doing business as Club Regina WESTIN HOTEL MANAGEMENT LP; WHISKI JACK RESORTS AND CLUB Consent to Service; RESORT CONDOMINIUMS INTERNATIONAL LLC; DOUGLAS BECH; RAINTREE VACATION CLUB; WALKER HARMON, Defendants-Appellees.  14249 14250 LOYA v. STARWOOD HOTELS & RESORTS Appeal from the United States District Court for the Western District of Washington Marsha J. Pechman, District Judge, Presiding

Argued and Submitted October 21, 2008 Submission Vacated October 30, 2008 Resubmitted August 21, 2009 Seattle, Washington

Filed October 2, 2009

Before: Diarmuid F. O’Scannlain, Pamela Ann Rymer, and Andrew J. Kleinfeld, Circuit Judges.

Opinion by Judge Rymer; Dissent by Judge Kleinfeld LOYA v. STARWOOD HOTELS & RESORTS 14253

COUNSEL

Scott E. Stafne, Stafne Law Firm, Arlington, Washington, (argued); Martin D. Fox, Martin D. Fox, Inc., Seattle, Wash- ington, for the plaintiffs-appellants.

Melissa O. White (argued) and Rodney Q. Fonda, Cozen O’Connor, Seattle, Washington, for the defendants-appellees.

OPINION

RYMER, Circuit Judge:

This appeal involves applicability of the doctrine of forum non conveniens to claims arising out of the death of a Wash- ington resident while scuba diving off the coast of Mexico on an expedition arranged by the resort at which he was staying in Cabo San Lucas. In particular, it poses the question whether a claim implicating the Death on the High Seas Act (DOHSA), 46 U.S.C. § 30301 et seq., is subject to dismissal on the basis of forum non conveniens. The district court, rely- 14254 LOYA v. STARWOOD HOTELS & RESORTS ing on the D.C. Circuit’s opinion in Pain v. United Tech. Corp., 637 F.2d 775, 780-81 (D.C. Cir. 1980), held that DOHSA actions are within the admiralty jurisdiction of the federal courts, and are subject to discretionary dismissal. It dismissed this action after considering the private and public interest factors that inform a forum non conveniens decision. We agree that the doctrine of forum non conveniens may be invoked in this case, and conclude that the district court did not clearly abuse its discretion in applying it. Accordingly, we affirm.

I

Gillian Loya’s husband, Ricardo, died in a scuba diving accident off the Mexican coast where he was vacationing at the Westin Resort & Spa Los Cabos (a Starwood Hotel and Resorts Worldwide hotel1) in San Jose del Cabo, Baja Califor- nia Sur. The Loyas went to Cabo with friends who exchanged a timeshare they had at Whistler for one at Club Regina Los Cabos, the timeshare portion of the Westin resort that is owned by Raintree Resorts International. The scuba diving trip was arranged through Xplora Adventours Los Cabos, which worked in Cabo with the Westin. Allegedly, the guide was underage by PADI standards (PADI certifies dive cen- ters), abandoned Ricardo, and failed to rescue him. Loya, a Washington resident, filed an action against these entities and others in Washington state court for dereliction of duty that resulted in her husband’s wrongful death. The complaint also asserted claims under the Washington Consumer Protection Act (WCPA) and the Washington Timeshare Act (WTA) for falsely advertising that the Westin Resort provided safe scuba diving activities. Starwood removed on the basis of diversity and admiralty jurisdiction. Loya then amended the complaint to charge Raintree with violating the WTA and WCPA by failing to consent to personal jurisdiction in Washington. 1 Starwood takes the lead on appeal, and we refer to all defendants col- lectively as “Starwood.” LOYA v. STARWOOD HOTELS & RESORTS 14255 When Loya sought partial summary judgment on her state law claims, Starwood cross-moved for dismissal on the ground of forum non conveniens. The district court denied Loya’s motion but granted Starwood’s. In doing so, the court rejected Loya’s argument that the doctrine of forum non con- veniens is inapplicable because DOHSA provides the exclu- sive remedy for American beneficiaries and mandates venue in a United States district court. Instead, relying on Pain, the court held that DOHSA actions are within the admiralty juris- diction of the federal courts and, whether or not DOHSA applies to this action, the Act does not preclude forum non conveniens dismissal. The court then ruled that an adequate alternative forum was available. After considering private and public interest factors, it concluded that dismissal was appro- priate for the main reasons that Baja California Sur, Mexico is a more convenient forum, and the nucleus of Loya’s case is the place where the accident occurred.

Loya timely appeals.2

II

At its core, Loya’s position is that DOHSA effectively pre- cludes dismissal on grounds of forum non conveniens. As she recognizes, nothing in DOHSA says so, but she maintains that Congress did not intend for the forum non conveniens doc- trine to eliminate access by an American beneficiary to a rem- edy under DOHSA for the wrongful death of an American on the high seas.

DOHSA was enacted in 1920 to overrule the Supreme Court’s decision in The Harrisburg, 119 U.S. 199 (1886), that admiralty afforded no remedy for wrongful death in the 2 After argument we requested and received supplemental briefing on the substantive law that may govern Loya’s claim for wrongful death, and its implications for the forum non conveniens analysis. We appreciate both parties’ response. 14256 LOYA v. STARWOOD HOTELS & RESORTS absence of an applicable state or federal statute. 46 U.S.C. § 761 et seq. The Act created a remedy in admiralty for wrongful deaths more than “a marine league” from shore (§ 761), limited the class of beneficiaries (§ 761), established a two-year period of limitations (§ 763), and provided that the recovery shall be a “fair and just compensation” for the pecu- niary loss sustained by the persons for whose benefit the suit is brought (§ 762). It also preserved the right to maintain suit in admiralty in the courts of the United States whenever a right of action for wrongful death is granted by the law of a foreign state. Id., § 764. DOHSA was amended in 2006 and recodified at 46 U.S.C. § 30301 et seq. Although the language changed somewhat, the changes are not material for purposes of this appeal.

[1] Loya argues that the district court’s foundational error was following Pain, which erroneously led it to conclude at the outset that dismissal was an option, instead of applying a choice of law analysis under Zipfel v. Haliburton Co., 832 F.2d 1477 (9th Cir. 1987), as modified, 851 F.2d 565 (9th Cir.

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