Stevens v. Morrison-Knudsen Saudi Arabia Consortium

576 F. Supp. 516, 1983 U.S. Dist. LEXIS 10767
CourtDistrict Court, D. Maryland
DecidedDecember 15, 1983
DocketCiv. H-82-74
StatusPublished
Cited by18 cases

This text of 576 F. Supp. 516 (Stevens v. Morrison-Knudsen Saudi Arabia Consortium) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stevens v. Morrison-Knudsen Saudi Arabia Consortium, 576 F. Supp. 516, 1983 U.S. Dist. LEXIS 10767 (D. Md. 1983).

Opinion

ALEXANDER HARVEY, II, District Judge.

In this civil action, three construction workers 1 are attempting to hold their private employers legally responsible for alleged violations of their federal constitutional rights occurring in Saudi Arabia. Plaintiffs were prosecuted and punished under the law of Saudi Arabia by Saudi authorities when they were found in possession of marijuana while employed in that kingdom by the American firms named here as defendants.

The narrow question presented at this stage of the case is whether a private company operating under a contract with the federal government may be sued for alleged violations by it of the constitutional rights of its employees occurring in a foreign country. The three plaintiffs were working in Saudi Arabia, as employees of defendant Morrison-Knudsen Saudi Arabia Consortium (hereinafter “MKSAC”), which is comprised of defendants Morrison-Knudsen of Arabia, Inc., Fischbach and Moore International Corp., and Interbeton Construction N.V., Curacao. Also named as a defendant is Morrison-Knudsen Company, Inc. (hereinafter “M-K Co.”), the parent of Morrison-Knudsen of Arabia, Inc. which is the controlling partner of MKSAC. 2

*518 This suit arises out of a series of events which took place in Saudi Arabia in 1980-81, culminating in plaintiffs’ prosecution by Saudi authorities and subsequent imprisonment in a jail in that kingdom for possession of marijuana. Suing here directly under the United States Constitution, plaintiffs have charged MKSAC, their employer, with violations of various constitutional rights guaranteed to them under the Fourth, Fifth and Sixth Amendments. In addition, they seek recoveries from defendants under various theories of state law. 3 Compensatory damages in the amount of $1,000,000 and punitive damages in the amount of $2,500,000 are sought in Count One which alleges plaintiffs’ federal claim. Jurisdiction has been asserted under 28 U.S.C. § 1331 and also under 28 U.S.C. § 1332.

Presently before the Court are various motions for summary judgment. Defendant MKSAC seeks summary judgment on the grounds that as a private entity it cannot be held liable for constitutional torts, that diversity jurisdiction does not exist, and that plaintiffs’ pendent state claims should likewise be dismissed. Defendant M-K Co. has filed a separate motion for summary judgment, relying on the same grounds as has defendant MKSAC and also contending that as the parent of a partner of MKSAC, it cannot be held responsible for the acts of that entity. Plaintiffs themselves have filed a cross motion for partial summary judgment, asking this Court to find that MKSAC was sufficiently involved with the federal government to become a so-called “state actor.” Extensive briefs have been filed in support of and in opposition to thesé motions, and oral argument has been heard in open court. For the reasons to be herein stated, this Court will grant summary judgment in favor of all defendants and will deny plaintiffs’ motion for partial summary judgment.

I

Background Facts

As disclosed by the extensive discovery undertaken to date, the essential facts are not in dispute. At the time that the events in question occurred, MKSAC was under contract with the United States Army Corps of Engineers (hereinafter “the Corps”) to construct a significant portion of the King Khalid Military City (hereinafter “KKMC”) for the Saudi Arabian government. The KKMC was being built for the Saudi Arabian Ministry of Defense and Aviation pursuant to an agreement between the United States and Saudi Arabia known as the Engineer Assistance Agreement of 1965 (hereinafter “The EAA”). Under this Agreement, the United States undertook to provide engineering and construction management services for the building of military facilities for the Saudi government. The Corps was designated to carry out the responsibilities of the United States under this Agreement. Various contracts were awarded by the Corps for the performance of this work, including one to MKSAC. The construction work in question was performed at the KKMC site located in the desert in northeastern Saudi Arabia. Plaintiffs and other employees lived at the site in prefabricated housing constructed by MKSAC.

In February 1980, security forces of MKSAC, acting on a tip that plaintiffs were using illegal drugs, searched their rooms. Although some dispute exists concerning whether plaintiffs freely consented to the search, it appears that plaintiffs did permit MKSAC representatives to search the rooms. Marijuana was found in each man’s room. The plaintiffs were interrogated by representatives of MKSAC, and statements were obtained from two plaintiffs admitting to the use and possession of marijuana. MKSAC immediately terminated plaintiffs’ employment, and they prepared to return to the United States. Pursuant to their contracts of employment plain *519 tiffs could be terminated for using narcotics.

Approximately one week after the searches were conducted, plaintiffs were informed that the Saudi government had become involved and that plaintiffs would be required to surrender their passports and remain at KKMC. Thereafter, MKSAC furnished the Saudi authorities with the evidence it had gathered including the marijuana itself and the statements of the plaintiffs.

Ten days later, plaintiffs were arrested by Saudi authorities, were charged with narcotics violations and were incarcerated. In early June 1980, plaintiffs were tried, convicted and sentenced by a Saudi court in Dammam. The original sentence was flogging and deportation. Upon review by the Saudi Royal Family, the sentences were increased, and a two year term of imprisonment was added. However, plaintiffs remained in prison only until January, 1981 when they were released and returned to the United States.

This suit was filed on January 12, 1982. Federal jurisdiction is asserted directly under the Constitution and is based on plaintiffs’ claims that MKSAC as a “state actor” violated their constitutional rights by, inter alia, searching their rooms without a warrant, eliciting involuntary confessions, confining them to house arrest at KKMC, and confiscating their passports. Various other claims are asserted by plaintiffs under state tort and contract law. 4

II

Plaintiffs’ Federal Claim

Count One of the complaint alleges that actions of MKSAC taken under color of law deprived plaintiffs of various rights guaranteed by the United States .Constitution.

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Bluebook (online)
576 F. Supp. 516, 1983 U.S. Dist. LEXIS 10767, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-v-morrison-knudsen-saudi-arabia-consortium-mdd-1983.