Marriott v. Sedco Forex International Resources, Ltd.

827 F. Supp. 59, 1993 A.M.C. 2949, 1993 U.S. Dist. LEXIS 10259
CourtDistrict Court, D. Massachusetts
DecidedJuly 22, 1993
DocketCiv. A. 89-2689-Y, 89-2690-Y
StatusPublished
Cited by11 cases

This text of 827 F. Supp. 59 (Marriott v. Sedco Forex International Resources, Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marriott v. Sedco Forex International Resources, Ltd., 827 F. Supp. 59, 1993 A.M.C. 2949, 1993 U.S. Dist. LEXIS 10259 (D. Mass. 1993).

Opinion

MEMORANDUM AND ORDER

YOUNG, District Judge.

In this consolidated action, an American seaman and three foreign seamen seek to recover damages under American law from their employer, a British Virgin Islands corporation, for emotional distress they allegedly suffered after finding they had been inoculated with a vaccine testing positive for the Human Immunodeficiency Virus (HIV), the virus which causes the Acquired Immune Deficiency Syndrome (AIDS). The seamen were inoculated with the contaminated vaccine while working for their employer aboard an oil rig located off the coast of India. The seamen have tested HIV-negative' to date, but seek to recover for the severe anxiety and trauma they allegedly suffered as a result of their fear of having contracted HIV and thus AIDS.

The plaintiffs assert Jones Act negligence claims, unseaworthiness, claims under the general maritime law, and also related punitive damages claims. The defendant employer has moved for summary judgment on several grounds, first suggesting that neither United States law nor a United States forum is appropriate here, and on the basis that the plaintiffs fail to state a claim under the Jones Act and the general maritime law arising from the fear of contracting AIDS. The case *62 presents novel and interesting issues regarding the accessibility of American maritime law and an American forum to American and foreign seamen stationed overseas, and challenges the boundaries of allowable recovery under maritime law for emotional distress without attendant physical injury.

I. FACTUAL BACKGROUND 1

A THE PLAYERS

The plaintiff Paul J. McGourty (“MeGourty,” or the “American seaman”) is a citizen and permanent resident of the United States residing in Braintree, Massachusetts. The plaintiffs Danna Marriott (“Marriott”) and James Slowey (“Slowey”) are citizens of the United Kingdom born in England, "with residence in South Africa. James Mathieson (“Mathieson,” and collectively with Marriott and Slowey, the “foreign seamen”) is a citizen of the United Kingdom born in Scotland, also with residence in South Africa.

The defendant Sedco Forex International Resources, Limited (“Sedco”), the plaintiffs’ employer, is a corporation organized and existing under the laws of the British Virgin Islands. Sedco is a wholly owned subsidiary of Sedco Forex International, Inc. (“Sedco International”), a corporation organized and existing under the laws of Panama. Neither Sedco nor Sedco International has offices in or performs work in the United States. Sed-eo International is a wholly owned subsidiary of Schlumberger Limited (“Schlumberger”), a publicly traded corporation organized and existing under the laws of the Netherland Antilles with principal offices in New York and Paris. At- no material time did Sedco, Sedco International, or Schlumberger have any officers or directors in common.

Schlumberger owns several hundred subsidiaries throughout the world involved in a variety of businesses. Sedeo and Sedeo International are among Schlumberger’s “Sed-eo Forex” group of subsidiaries, a group of companies involved in the oil and gas drilling business. 2 The Sedeo Forex group engages in operations all over the world, including in and around the United States, but these operations are concentrated, if anywhere, in the Southern Asia and Middle East territorial. and oceanic regions. (See Map, Stip. Ex. 30 at 26-27.) Schlumberger provides numerous centralized services to the Sedeo Forex companies, including informational publications, and pension, profit sharing, and stock purchase plans. Many of these benefit plans and publications are administered and published in the United States, and Sedeo subscribed to, and the plaintiffs belonged to, several of these benefits plans. 3

Prior to 1984, the plaintiffs worked for Sedeo, Inc., an independent Texas corporation involved in the oil and gas drilling business. On or about December 24, 1984, Sed-eo, Inc. was purchased by Schlumberger Technology Corporation (“Schlumberger Technology”), a Schlumberger subsidiary organized and existing under the laws of Texas. From January 1,1985 to December 31, 1985, the plaintiffs were employed by Sehlumber-ger Technology. 4 After January 1, 1986 and during all relevant events, the plaintiffs were employed by Sedeo.

*63 Hiteeh Drilling Services Indian Private, Limited. (“Hiteeh”) is a publicly traded corporation organized and existing under the laws of India engaged in the exploration and production of petroleum, gas, water, and other substances in and around India. Hitech’s offices and operations are in India, and it performs no work in the United States. At all relevant times, thirty six percent (36%) of Hitech’s stock was owned by Sedeo Forex International Drilling (“Sedeo Drilling”), 5 a Schlumberger subsidiary organized and existing under the laws of Panama which also has no offices in and conducts no business in the United States. The remaining sixty four percent (64%) of Hitech’s stock was at all relevant times owned by members of the Indian public or by Indian corporations.

B. THE OVERSEAS EVENTS

On March 30, 1987, Sedeo entered into an agreement with Hiteeh under which Sedeo agreed to provide Hiteeh with technical personnel for use in Hitech’s exploration of India’s land and continental shelf for the presence of petroleum and gas products. Pursuant to this agreement, Sedeo assigned all four plaintiffs to work aboard Hitech’s drill rig TAHARA, a vessel owned by Hiteeh and maintained under Liberian registry. 6 The relevant employment contracts signed between the plaintiffs and Sedeo for the TA-HARA expedition are dated July 1, 1987. Sedeo signed these contracts in London, England, but it is not clear when and where the plaintiffs signed them. There is no evidence that the plaintiffs signed these contracts in the United States. At all material times while aboard the TAHARA, the plaintiffs were under the direct supervision of Sedeo personnel with respect to the day to day operations of the TAHARA, but the overall management of the TAHARA, including when and where the TAHARA was to conduct its operations, remained with Hiteeh.

On January 5, 1989, while the TAHARA was engaged in operations above India’s continental shelf, Dr. Jagdale, an Indian national employed by Hiteeh, discovered that one of the TAHARA’s catering staff had developed hepatitis. Dr. Jagdale recommended that all crew members, including the plaintiffs, be inoculated against the Hepatitis virus. In response to this recommendation, fifty-five (55) vials of Globunal immunaglobulin (“Glo-bunal”), manufactured in India in 1988, and fifty-five (55) syringes, were delivered to the TAHARA. At or about this time, Dr. Jag-dale’s tour of duty on the TAHARA ended, and he was replaced by Dr. M.H. Baig, also an Indian national employed by Hiteeh. On or about January 14, 1989, all members of the crew then onboard the TAHARA, including the plaintiffs, received Globunal injections, inoculating them against Hepatitis. One vial of Globunal, the fifty-fifth, remained.

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Bluebook (online)
827 F. Supp. 59, 1993 A.M.C. 2949, 1993 U.S. Dist. LEXIS 10259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marriott-v-sedco-forex-international-resources-ltd-mad-1993.