Sea Hawk Seafoods, Inc. v. Alyeska Pipeline Service Co.

206 F.3d 900, 2000 Daily Journal DAR 2827, 2000 Cal. Daily Op. Serv. 2067, 2000 U.S. App. LEXIS 3984
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 16, 2000
DocketNos. 98-35796, 98-35807, 98-36087, and 98-36117
StatusPublished
Cited by5 cases

This text of 206 F.3d 900 (Sea Hawk Seafoods, Inc. v. Alyeska Pipeline Service Co.) 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
Sea Hawk Seafoods, Inc. v. Alyeska Pipeline Service Co., 206 F.3d 900, 2000 Daily Journal DAR 2827, 2000 Cal. Daily Op. Serv. 2067, 2000 U.S. App. LEXIS 3984 (9th Cir. 2000).

Opinion

KLEINFELD, Circuit Judge:

This is one of several appeals before this panel relating to the Exxon Valdez oil spill litigation. The subject of this appeal is whether the $5 billion punitive damages verdict against Exxon, and the $5,000 punitive damages award against Hazelwood, should be set aside because of irregularities during jury deliberations. We affirm the district court order that it should not. This decision goes only to the motion to vacate the judgment for irregularities during jury deliberations. It does not purport to decide the issue of the amount of damages, compensatory and punitive, awarded to the plaintiffs.

I. Facts.

This case was tried in three separate phases. The phase with which this appeal is concerned was the punitive damages determination. After the jury awarded $5 billion, defendants filed numerous motions, and appealed from the judgment and from denial of its motion for new trial. While that appeal was pending, newly discovered evidence persuaded the district judge, and [904]*904us, that remand was appropriate, under Crateo, Inc. v. Intermark, Inc.,2 for consideration in the trial court. We remanded for consideration of the Rule 60(b)(2) motion for relief from judgment based on the newly discovered evidence. This appeal concerns only the second motion for new trial, based on the newly discovered evidence, not the first motion for new trial, so we do not discuss the facts and legal determinations raised in the earlier motion. Captain Hazelwood, who piloted the Exxon Valdez in the accident, appeals, but simply joins in the arguments by Exxon Corporation and Exxon Shipping Company, so we describe the appellants collectively as “Exxon.”

A retired police officer from Florida served as a Court Security Officer during the trial and deliberations. He was experienced and much decorated, as a police officer and before that in the military. He acted as one of the bailiffs, maintaining security for the jury room, escorting the jury, attending to its requests for food and other needs, and receiving its communications. The punitive damages phase of the trial took more than four months, so all the participants had considerable contact with each other.

An Anchorage newspaper published a story after the trial describing the extremely stressful summer in the jury room.3 One of the jurors, Juror A, was especially distressed and was not getting along well with the rest of the jury. That had been obvious to all participants, because she cried in the hall and otherwise acted distressed, and because the jury sent out notes expressing concern about her mental condition. Based on some of the allegations in the article, the district court held an evidentiary hearing in which the jurors were questioned by the judge under oath in open court with counsel present about possible irregularities.

One juror, Juror B, testified that the bailiff motioned him aside as he came to deliberations one morning and “said something about, you know, you guys, you’re really having problems with her, or something like that, pulled his gun out, took a bullet out and said maybe if you put her out of her misery or something.” Juror B said he might have told the jury foreman about it, but told no one else, and “it really shook me up.” Juror B perceived the remark as a tasteless joke rather than as a threat or serious suggestion. The bailiff testified under oath that “I haven’t heard anything so absurd in my life. Nothing like that ever came from me.” The district judge ruled that “the court is not convinced that the incident ever occurred,” but that if it did, it did not warrant a new trial, because Juror A never learned of the communication, and Juror B and the jury foreman did not understand it to be a threat directed at them.

The United States Marshal in Anchorage, John R. Murphy, directed the investigation of the alleged incident. Juror B passed a lie detector examination, and the bailiffs he detector examination “indicated deception” in the opinion of the polygraph examiner, Investigator Robert Sheldon. Sheldon later confronted the bailiff about aspects of his interrogation that appeared contradictory. The bailiff then admitted that the bullet incident occurred as Juror B described it, but that he “was joking” and that “nothing was meant to be ... a threat or intimidation.” Marshal Murphy told the bailiff that because he had lied, the Marshals Service would pursue terminating him unless he resigned. The bailiff turned in a written resignation within five minutes. Marshal Murphy did not tell the district judge or the lawyers that Juror B had been telling the truth and that the bailiff had lied. The bailiff died of a heart attack a few months after being forced to resign, prior to adjudication of the second motion to vacate the judgment. At the time the district court denied Exxon’s mo[905]*905tion, partly on the basis of believing the bailiffs false testimony, all these events had already transpired, and the Marshal knew the bailiff was lying and that the gun incident had occurred. But the judge did not.

Exxon’s lawyers did not know anything about the Marshal’s investigation of and report on the bailiff. It was secret. But a lawyer in Fairbanks happened to be representing a woman there in a wrongful termination case in which the bailiff figured, and he had done discovery that disclosed the existence (but not the contents) of the report. He wrote Exxon’s lawyers, assuming they knew more than he did, and saying that he had found out in discovery that a supervisor of the bailiff had written in his notes that the report was “potentially explosive” but claimed not to recall why, and the United States Attorney’s office objected to disclosing the report or to deposing Marshals Service personnel about it. He hoped to obtain a copy of it from Exxon’s lawyers, not realizing that he knew much more about it (such as that it existed) than they did.

After following up on this tip, Exxon filed a second motion for new trial. Though the gun incident described above brought about the motion, Exxon claims that additional incidents also entitle it to relief. In addition to the remark and display of the gun to Juror B, the bailiff had had other contacts with the jurors that Exxon claims entitle it to a new trial. Also, Juror A testified that when she asked the bailiff what would happen if she simply refused to come to the courthouse and deliberate any more, he told her that she could be arrested and put in jail. Also, she testified that one of the other jurors made a remark to her which she understood as a threat to harm her daughters if she did not say that she agreed with the verdict when the jury was polled.

ANALYSIS

A. The bailiff’s gun remark.

Exxon argues that the bailiff’s remark to Juror B, in the context of other contacts that it argues were inappropriate for a bailiff, entitles it to have the $5 billion punitive damages verdict vacated and a new trial ordered.

The district judge held extensive eviden-tiary proceedings, and made extensive findings of fact in support of its denial of the motion for new trial. On the second motion, after the bailiff had been forced to resign for lying, the court found that the incident occurred as Juror B had described it.

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206 F.3d 900, 2000 Daily Journal DAR 2827, 2000 Cal. Daily Op. Serv. 2067, 2000 U.S. App. LEXIS 3984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sea-hawk-seafoods-inc-v-alyeska-pipeline-service-co-ca9-2000.