Servis v. Hiller Systems Inc.

858 F. Supp. 590, 1994 WL 328598
CourtDistrict Court, E.D. Virginia
DecidedJuly 6, 1994
DocketCiv. A. 2:94cv202
StatusPublished
Cited by3 cases

This text of 858 F. Supp. 590 (Servis v. Hiller Systems Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Servis v. Hiller Systems Inc., 858 F. Supp. 590, 1994 WL 328598 (E.D. Va. 1994).

Opinion

OPINION AND ORDER

DOUMAR, District Judge.

This matter is before the Court on defendants’ motions to dismiss and plaintiffs motion to remand the matter to the state court where it was originally filed. The United States made a special appearance in support of the plaintiffs motion to remand. 1

*592 This case concerns the interaction between the saving to suitors clause of 28 U.S.C. § 1333 and the “exclusivity” provision of the Suits in Admiralty Act (“SAA”), 46 U.S.CApp. § 745. The question is whether a plaintiff may save his right to proceed in state court (with a jury) by naming only subcontractors as defendants, or whether these subcontractors should be considered “agents” for the purposes of the SAA and, therefore, the sole remedy should be against the United States in federal court (and without a jury). For the reasons discussed below, this Court holds that subcontractors performing the work contracted for by a prime contractor with the United States should be considered agents for the purpose of the SAA’s exclusivity provision.

I. Facts and Procedural History

A. The Incident

Peter Thomas Humphrey was an electrical technician employed by a subcontractor of Norfolk Shipbuilding and Drydock Company (hereinafter “Norshipeo”). (His employer is not a party to this suit.) At the time of the accident that gives rise to this proceeding, Humphrey was working in the engine room of the “CAPE DIAMOND.” Plaintiff alleges that Humphrey along with a Coast Guard Lieutenant was asphyxiated by the carbon dioxide (“C02”) released into the engine room during a faulty test of the fire suppression equipment. Plaintiff alleges that Humphrey’s death was caused by the negligent acts of Norshipeo and two of Norshipco’s subcontractors, Valcon Sales and Services, Inc. (hereinafter “Valcon”) and Hiller Systems Inc. (hereinafter “Hiller”). Plaintiff also names as defendants three Hiller employees, Jason B. Nuss, Wayne Francis Muth, and Edward Speary, III.

Plaintiff alleges that several errors were made both in the re-installation of the valve which contributed to the accident and in the conduct of the test itself. At the time of the re-installation of the aft tank main shut-off valve, plaintiff alleges several errors were made: 1) the valve was missing an arrow indicator which would permit visual conftr-mation that the valve was closed; 2) two bolts were used that were too long; 3) the valve was covered with lagging (insulation); and 4) the lagging was covered with a % bypass valve which permitted C02 to bypass the main shut-off valve and flow directly into the manifold or header.

A test of the system was scheduled for March 3, 1993. The test requires a release of C02 in various areas of the ship. Norship-eo had previously promulgated a company rule requiring all personnel to be evacuated before any testing of the C02 system.

Wayne Francis Muth and Edward Speary, Hiller employees, conducted the test on March 3, 1993. They decided to test the system in the engine room first. No order was ever given to evacuate the engine room. No effort was made to ensure that the engine room area was evacuated.

They intended to conduct a “puff test” by releasing a small amount of C02 into the engine room. First, one valve was opened to allow C02 to move from the main tank into the manifold or header. This valve was then supposed to be closed. Then a second valve was opened to release the gas into the test area and activate the alarm systems.

The idea was to let a small amount into the manifold using the first valve, to close the first valve, and then conduct the test by opening the second valve, releasing a “puff’ of C02. However, the first valve was not completely closed when the second valve was opened resulting in a massive release of C02 into the test area (the engine room). The C02 asphyxiated plaintiff and a Coast Guard officer.

B. Procedural History

On January 18, 1992, plaintiff filed a motion for judgment in Norfolk Circuit Court naming as defendants Norshipeo, Valcon, Hiller, and Hiller employees, Nuss, Muth, and Speary. Plaintiff alleged that Hiller was both negligent and grossly negligent in the hiring and training and supervision of its employees, in the removal, repair, and re-installation of the valve, in the conduct of the C02 puff test, and in the hiring of subcon *593 tractors and their actions. Plaintiff made the same allegations against the three Hiller employees in their individual capacity. Plaintiff alleged that Valcon was both negligent and grossly negligent in its inspection and repair of the valve and its failure to replace a missing shut-off indicator plate or to warn others dependent on their work. Finally, plaintiff alleged that Norshipco was both negligent and grossly negligent in the hiring and supervision of the subcontractors and in its failure to evacuate the engine room or provide any warning. This complaint did not name the United States in either of its capacities (MARAD or the Coast Guard), nor did it name the prime contractor, MTL.

On February 16, 1992, Norshipco removed this action to this Court alleging that the complaint stated a federal question under the SAA or Public Vessels Act or both and that the exclusive remedy was against the United States in federal court.

Norshipco then filed a third-party complaint against the United States. In that complaint, Norshipco alleged that MARAD, MTL and the Coast Guard failed to provide advance notice of the test so that proper safety precautions could be taken; that MARAD, MTL and the Coast Guard failed to conduct the test in a proper manner and did not take reasonable precautions for the safety of persons on board the ship; and, that the CAPE DIAMOND was unseaworthy.

Subsequent to the removal, all of the defendants filed motions to dismiss the case arguing that plaintiffs sole remedy was against the United States. Plaintiff, however, filed a motion to remand based upon the saving to suitors clause of 28 U.S.C. § 1333 and its interpretation in Romero v. Int’l Terminal Operating Co., 358 U.S. 354, 79 S.Ct. 468, 3 L.Ed.2d 368 (1959). Both the motion to remand and the motions to dismiss turn on the same questions of law presently before the Court.

All parties briefed the issues and on April 21, 1994, this Court heard oral arguments on the issues. After argument, the Court requested that all of the parties submit any additional authority or argument they desired on two issues. First, the Court requested authority on which forum — the state or federal court — was the proper place to resolve these questions. Second, the Court invited the parties to submit any relevant portions of the extensive contractual documentation.

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858 F. Supp. 590, 1994 WL 328598, Counsel Stack Legal Research, https://law.counselstack.com/opinion/servis-v-hiller-systems-inc-vaed-1994.