Maria Arlete Vaz Borralho v. Keydril Company, Key International Drilling Company, Ltd. And Key Perfuracoes Maritimas, Ltda.

696 F.2d 379, 1984 A.M.C. 728, 1983 U.S. App. LEXIS 31008
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 27, 1983
Docket81-2436
StatusPublished
Cited by89 cases

This text of 696 F.2d 379 (Maria Arlete Vaz Borralho v. Keydril Company, Key International Drilling Company, Ltd. And Key Perfuracoes Maritimas, Ltda.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maria Arlete Vaz Borralho v. Keydril Company, Key International Drilling Company, Ltd. And Key Perfuracoes Maritimas, Ltda., 696 F.2d 379, 1984 A.M.C. 728, 1983 U.S. App. LEXIS 31008 (5th Cir. 1983).

Opinion

GARWOOD, Circuit Judge:

This is an appeal from a judgment dismissing a wrongful death action brought by the appellants under the Jones Act, 46 U.S.C. § 688, and the general maritime law of the United States, and alternatively under the Death on High Seas Act, 46 U.S.C. § 761, and the Texas Wrongful Death Statute, Tex.Rev.Civ.Stat.Ann. art. 4671. Appellants are the survivors of a Brazilian seaman who died as a result of injuries sustained on board a submersible drilling rig, the KEY WEST, located off the Brazilian coast. The district court dismissed appellants’ action against appellees on the ground of forum non conveniens. The primary question is whether the fact that American-based corporations owned the business entities which employed the decedent and owned the drilling rig upon which he was injured constitutes a substantial contact with the United States warranting the application of American law to appellants’ lawsuit. We hold that, in the context of this case, the contacts with the United States are insubstantial when compared with those to Brazil, and that the district court, in dismissing appellants’ action, did not abuse its discretion. However, because the order of dismissal was made unconditionally, we reverse and remand the case so that the district court may adequately protect the appellants’ interests by fashioning an order of dismissal based upon appropriate conditions.

I.

FACTS

The KEY WEST was built in the United States in 1974. Ever since its construction, the KEY WEST has been stationed off the coast of Brazil, first at Belem and then, sometime after the incident in suit, at Fortaleza, drilling for petroleum products for the Brazilian national oil company, Petrobas, under a charter agreement between Petrobas and the owner of the KEY WEST, *383 appellee Key International Drilling Company, Ltd. (“KIDC”). KIDC is a Bermudian corporation whose shares are ultimately owned by Gulf Oil Corporation (“Gulf”). Although owned by a Bermudian corporation, the KEY WEST is registered in Liberia and flies the Liberian flag.

KIDC ,and appellee Keydril Company (“Keydril”), a Delaware corporation, whose shares are also owned by Gulf, owned appellee Key Perfuracoes Marítimas, Ltda. (“KPM”), a Brazilian limited liability business entity, which was formed at Petrobas’s insistence apd was under contract to it to drill for petroleum products, using the KEY WEST as the drilling rig. KIDC guaranteed KPM’s performance under this contract.

On February 18,1974, the decedent, Prisco Da Silva Borralho (“Borralho”), a resident and citizen of Brazil, entered into a contract with KPM in Belem, Brazil, which obligated him to work as its employee on board the KEY WEST. This contract, which was written in Portuguese, provided, among other things, that Belem would be the forum for “all questions derived or resulting from” the contract. On or about March 1, 1977, Borralho injured his leg on board the KEY WEST. He was taken ashore for treatment and died in a Brazilian hospital two days later from an embolism.

Appellants, 1 who are all Brazilian citizens and residents of Para, Brazil, filed suit against Keydril, KIDC, and KPM in the federal district court for the Southern District of Texas for damages arising out of Borralho’s injuries and death under the Jones Act and the general maritime law of the United States, and alternatively under the Death on the High Seas Act and “the Wrongful Death Statutes of the State of Texas.” 2 Appellants, however, asserted no claim under Brazilian law.

Appellees responded to appellants’ complaint by interposing various defenses under Fed.R.Civ.P. 12(b) 3 in their answers, and afterwards, together they filed a motion to dismiss the complaint based on the doctrine of forum non conveniens. In support of their motion, appellees filed the affidavit of Virgil Stone, the President of Keydril and KIDC, whose deposition was later taken by appellants and filed with the district court. 4 Stone’s testimony revealed that KPM was not qualified to do business in the United States; that neither KPM nor KIDC derived any income from operations conducted in the United States; and that KPM had “shoreside managerial people” in Brazil “who directed] the operation of” the KEY WEST. 5

After considering the choice of law factors of Lauritzen v. Larsen, 345 U.S. 571, 73 *384 S.Ct. 921, 97 L.Ed. 1254 (1952) and Hellenic Lines, Ltd. v. Rhoditis, 398 U.S. 306, 90 5. Ct. 1731, 26 L.Ed.2d 252 (1970), the district court decided that American law did not apply to the appellants’ lawsuit. The court then considered the forum non conveniens factors of Gulf Oil Corporation v. Gilbert, 330 U.S. 501, 506-507, 67 S.Ct. 839, 842, 91 L.Ed. 1055 (1947), and dismissed the case without prejudice. The order of dismissal was made unconditionally.

II.

STANDARD OF REVIEW

Before a district court dismisses a case based on the doctrine of forum non conveniens, it should first ascertain whether American or foreign law governs the lawsuit. 6 If American law applies, then the district court should normally retain jurisdiction and proceed with the case. If, however, foreign law does apply and the foreign forum is accessible, then the district court should determine in which forum the case should be tried, and if it decides that the lawsuit should be tried in the. foreign forum, then the court should decline to exercise jurisdiction over the case. Fisher v. Agios Nicolaos V, 628 F.2d 308, 315 (5th Cir.1980), cert. denied, sub nom, Valmas Brothers Shipping, S.A. v. Fisher, 454 U.S. 816, 102 S.Ct. 92, 70 L.Ed.2d 84 (1981).

While the choice of law determination is generally subject to our de novo review, Phillips v. Amoco Trinidad Oil Company, 632 F.2d 82, 84 (9th Cir.1980), cert, denied, sub nom, Romilly v. Amoco Trinidad Oil Company, 451 U.S. 920, 101 S.Ct. 1999, 68 L.Ed.2d 312 (1981), “the forum non conveniens determination is committed to the sound discretion of the trial court.” Piper *385 Aircraft Company v. Reyno, 454 U.S. 235, 257, 102 S.Ct. 252, 266, 70 L.Ed.2d 419, 436 (1981).

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696 F.2d 379, 1984 A.M.C. 728, 1983 U.S. App. LEXIS 31008, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maria-arlete-vaz-borralho-v-keydril-company-key-international-drilling-ca5-1983.