Provincial Gov't of Marinduque v. Placer Dome, Inc.

582 F.3d 1083, 39 Envtl. L. Rep. (Envtl. Law Inst.) 20225, 2009 U.S. App. LEXIS 21323, 2009 WL 3086009
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 29, 2009
Docket07-16306
StatusPublished
Cited by415 cases

This text of 582 F.3d 1083 (Provincial Gov't of Marinduque v. Placer Dome, Inc.) 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.

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Provincial Gov't of Marinduque v. Placer Dome, Inc., 582 F.3d 1083, 39 Envtl. L. Rep. (Envtl. Law Inst.) 20225, 2009 U.S. App. LEXIS 21323, 2009 WL 3086009 (9th Cir. 2009).

Opinion

McKEOWN, Circuit Judge:

Under the act of state doctrine, “the acts of foreign sovereigns taken within their own jurisdiction shall be deemed valid.” W.S. Kirkpatrick & Co. v. Environmental Tectonics Corp., 493 U.S. 400, 409, 110 S.Ct. 701, 107 L.Ed.2d 816 (1990). Founded on international law, the doctrine also serves as a basis for federal-question jurisdiction when the plaintiffs complaint challenges the validity of a foreign state’s conduct. We consider here whether the district court had subject-matter jurisdiction over this suit, based upon the act of state doctrine, such that removal from state to federal court was proper. Because none of the referenced conduct by the foreign sovereign — in this case, the Philippine government — is essential to any of the plaintiffs causes of action, we reverse the district court’s exercise of subject-matter jurisdiction under the act of state doctrine.

Background

The Provincial Government of Marinduque (“the Province”) sued Placer Dome Corporation in 2005 in Nevada state court for alleged human health, ecological, and economic damages caused by the company’s mining operations on Marinduque, an island province of the Republic of the Philippines. 1 According to the complaint, Placer Dome severely polluted the lands and waters of Marinduque for some thirty years, caused two cataclysmic environmental disasters, poisoned the islanders by contaminating their food and water sources, and then left the province without cleaning up the mess — all in violation of Philippine law. The Province further alleges that Placer Dome received certain forms of assistance in its mining endeavors from the Philippine government. More particularly, the Province contends that former Philippine President Ferdinand Marcos, in exchange for a personal stake in the mining operations, eased various environmental protections obstructing Placer Dome’s way.

Immediately after the Province filed suit, Placer Dome removed the case to federal district court for the District of Nevada on the basis of federal-question jurisdiction. Specifically, Placer Dome contended that the case “tendered] questions of international law and foreign relations.” The Province moved for an or *1086 der requiring Placer Dome to show cause why the action should not be remanded to the state court due to a lack of subject-matter jurisdiction. The district court denied the Province’s motion, holding that federal-question jurisdiction existed under the act of state doctrine of the federal common law. Placer Dome moved to dismiss the suit for lack of personal jurisdiction and forum non conveniens. The district court granted limited discovery on personal jurisdiction. 2 Before discovery was concluded, in March 2007, the United States Supreme Court issued Sinochem International Co. v. Malaysia International Shipping Corp., announcing that district courts have latitude to rule on the threshold issue of forum non conveniens before definitively ascertaining subject-matter and personal jurisdiction. 549 U.S. 422, 432, 127 S.Ct. 1184, 167 L.Ed.2d 15 (2007). The district court stayed jurisdictional discovery, and ordered briefing on the issue of forum non conveniens. Invoking Sinochem, the district court dismissed the matter on forum non conveniens grounds in favor of a Canadian forum. In ruling on the Province’s motion for reconsideration, the district court affirmed its earlier conclusion that “subject matter jurisdiction does, in fact, exist in this case, based upon the act of state doctrine.”

Analysis

1. Removal to Federal Court

This case was removed from state to federal court under 28 U.S.C. § 1441(a) 3 on Placer Dome’s representation that the Province’s claims implicated the federal common law of foreign relations. Removal was proper only if the district court would have had original jurisdiction over the claims. Placer Dome asserted jurisdiction pursuant to 28 U.S.C. § 1331, which states that federal courts have jurisdiction over cases presenting questions of federal constitutional, statutory, and common law.

Federal courts may exercise federal-question jurisdiction over an action in two situations. First, and most commonly, a federal court may exercise federal-question jurisdiction if a federal right or immunity is “ ‘an element, and an essential one, of the plaintiffs cause of action.’” Franchise Tax Bd. v. Constr. Laborers Vacation Trust for S. Cal., 463 U.S. 1, 11, 103 S.Ct. 2841, 77 L.Ed.2d 420 (1983) (quoting Gully v. First National Bank, 299 U.S. 109, 112, 57 S.Ct. 96, 81 L.Ed. 70 (1936)). Thus, the federal question on which jurisdiction is premised cannot be supplied via a defense; rather, the federal question must “be disclosed upon the face of the complaint, unaided by the answer.” Phillips Petroleum Co. v. Texaco, Inc., 415 U.S. 125, 127-28, 94 S.Ct. 1002, 39 L.Ed.2d 209 (1974) (per curiam). Second, a federal court may have such jurisdiction if a state-law claim “necessarily raise[s] a stated federal issue, actually disputed and substantial, which a federal forum may entertain without disturbing any congressionally-approved balance of federal and state judicial responsibilities.” Grable & Sons Metal Prod., Inc. v. Darue Eng’g & Mfg., 545 U.S. 308, 314, 125 S.Ct. 2363, 162 L.Ed.2d 257 (2005). Such a federal issue must be “a substantial one, indicating a serious fed *1087 eral interest in claiming the advantages thought to be inherent in a federal forum.” Id. at 313, 125 S.Ct. 2363.

The removal statute is strictly construed against removal jurisdiction. Syngenta Crop Prot., Inc. v. Henson, 537 U.S. 28, 32, 123 S.Ct. 366, 154 L.Ed.2d 368 (2002); California ex rel. Lockyer v. Dynegy, Inc., 375 F.3d 831, 838 (9th Cir.2004). The defendant bears the burden of establishing that removal is proper. Id.

II. Determination of Removal Jurisdiction in Light of Sinochem

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582 F.3d 1083, 39 Envtl. L. Rep. (Envtl. Law Inst.) 20225, 2009 U.S. App. LEXIS 21323, 2009 WL 3086009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/provincial-govt-of-marinduque-v-placer-dome-inc-ca9-2009.