The Pure Oil Company v. Pascual Suarez

346 F.2d 890
CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 7, 1965
Docket21446_1
StatusPublished
Cited by15 cases

This text of 346 F.2d 890 (The Pure Oil Company v. Pascual Suarez) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Pure Oil Company v. Pascual Suarez, 346 F.2d 890 (5th Cir. 1965).

Opinion

GEWIN, Circuit Judge.

The appellee instituted this civil action in the District Court for the Southern District of Florida to recover damages for injuries he received while employed in the capacity of a seaman aboard the vessel S.S. “PURE OIL,” owned and operated by The Pure Oil Company. His complaint proceeded on two theories: (1) negligence under the Jones Act, 46 U.S. C.A. § 688, and (2) breach of the shipowner’s duty to provide a seaworthy vessel. The company moved to transfer the case to the Northern District of Illinois on the ground that venue was not properly laid in the Southern District of Florida. 1 The trial court denied the motion, but certified the question under 28 U.S. C.A. § 1292(b), and this interlocutory appeal ensued.

The relevant provision of the Jones Act, 46 U.S.C.A. § 688, provides as follows:

“Jurisdiction in such actions shall be under the court of the district in which the defendant employer ra *892 sides or in which his principal office is located.” (Emphasis supplied.)

The parties stipulated that The Pure Oil Company “has transacted a substantial amount of business in Florida and the Southern District of Florida, was doing substantial amounts of business in the Southern District of Florida at the time of the commencement of this action, and hopes to continue doing substantial business therein. * * * ” The company also filed an uncontradicted affidavit which states that it is incorporated in Ohio and maintains its principal office in Cook County, Illinois. The sole question for decision is whether the provision of the Jones Act quoted above enables an injured seaman to sue his employer corporation wherever the employer does business or whether his choice of forums is limited to the districts in which the employer is incorporated and maintains its principal office.

Although the quoted provision of the Jones Act literally speaks of “jurisdiction,” it was early held to refer only to proper venue. Panama R. Co. v. Johnson, 265 U.S. 375, 44 S.Ct. 391, 68 L.Ed. 748 (1924). Hence, the privilege need not be given effect unless the defendant insists upon it. E. g., Neirbo Co. v. Bethlehem Shipbuilding Corp., 308 U.S. 165, 60 S.Ct. 153, 84 L.Ed. 167 (1939); Panama R. Co. v. Johnson, supra; Wright Federal Courts 128 (1963). It is established that, in the absence of a statutory directive to the contrary, the “residence” of a corporation for venue purposes is limited to the state of its incorporation. See Suttle v. Reich Bros. Constr. Co., 333 U.S. 163, 68 S.Ct. 587, 92 L.Ed. 614 (1948); Ex parte Shaw (Shaw v. Quincy Mining Co.), 145 U.S. 444, 450, 12 S.Ct. 935, 937, 36 L.Ed. 768, 771 (1892).

The appellee makes two arguments in support of the district court’s denial of the motion to transfer, the first of which can be disposed of in short order. According to appellee, the Jones Act was passed in 1920 to expand and liberalize the relief afforded to seamen for injuries they sustained in their employment. Instead of devising separate standards to be applied in personal injury suits by seamen Congress adopted the expedient of incorporating by reference the more detailed provisions which govern the liability of railroads to their employees. 2 Therefore, appellee argues that the special venue provisions of the Federal Employers Liability Act, under which venue against Pure Oil would undoubtedly be proper in the instant case, 3 are applicable to a civil action under the Jones Act. However, this argument does not adequately accommodate the well-recognized and eminently logical canon of statutory construction that the specific provisions of a statute control exclusively over the broader and more general provisions of another statute which may relate to the same subject matter in the absence of a clear manifestation to the contrary by the legislature. See Bulova Watch Co. v. United States, 365 U.S. 753, 758-759, 81 S.Ct. 864, 867-868, 6 L.Ed.2d 72, 76, (1961); Fourco Glass Co. v. Transmirra Prods. Corp., 353 U.S. 222, 228-229, 77 S.Ct. 787, 791-792, 1 L.Ed.2d 786, 790-791 (1957). As one court has stated, “The short answer to [appellee’s] argument is that Congress has seen fit to impose different venue requirements in Jones Act cases. To now hold that the venue requirements under the Federal Employers’ Liability Act are controlling would negate the plain language of 46 U.S.C. § 688.” Rodriquez v. United Fruit Co., 236 F.Supp. 680, 682 (E.D.Va.1964). We are not persuaded to hold otherwise merely because the two other provisions of 45 U.S.C.A. § 56 have been held appli *893 cable in Jones Act cases. 4 Neither of the subjects covered by those provisions is dealt with specifically in the Jones Act, and they would thus be fairly covered by the general reference to the FELA. See Panama R. Co. v. Johnson, 264 U.S. 375, 392, 44 S.Ct. 391, 396, 68 L.Ed. 748, 755 (1924). 5

Appellee makes a far more appealing argument, at least from the point of view of statutory construction, in its assertion that the definition of the term “residence” which was added to the general venue statute in 1948, 28 U.S.C.A. § 1391 (c), should be read into the Jones Act venue requirements. Prior to 1948 — and, indeed, at the time Congress enacted the Jones Act in 1920 — the general venue statute was geared to the residence of either the defendant or, in diversity cases, the plaintiff as well. The residence of a corporation was uniformly restricted to the state of its incorporation, even in Jones Act suits. E. g., Burris v. Matson Nav. Co. (S.D.N.Y.1940) 37 F.Supp. 648. In the course of the general revision of the Judicial Code in 1948, Congress inserted subsection (c) into the general venue statute. That section provides as follows:

“(c) A corporation may be sued in any judicial district in which it is incorporated or licensed to do business or is doing business, and such judicial district shall be regarded as the residence of such corporation for venue purposes.” (Emphasis supplied.)

It is the last clause of that subsection which concerns us primarily, for if that phrase can be read as defining the residence of a defendant corporation for the purposes of the Jones Act’s venue provisions, then the trial court properly denied Pure Oil’s motion to transfer.

If section 1391(c) and the Jones Act venue provision are viewed together in light of the remedial purposes of the Jones Act, the most logical conclusion might well be that the general venue statute did expand the definition of residence in the Jones Act.

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346 F.2d 890, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-pure-oil-company-v-pascual-suarez-ca5-1965.