Tyrrell Nelson v. BNSF

2016 MT 126
CourtMontana Supreme Court
DecidedMay 31, 2016
Docket14-0825
StatusPublished

This text of 2016 MT 126 (Tyrrell Nelson v. BNSF) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tyrrell Nelson v. BNSF, 2016 MT 126 (Mo. 2016).

Opinion

May 31 2016

DA 14-0825

IN THE SUPREME COURT OF THE STATE OF MONTANA

2016 MT 126

KELLI TYRRELL, as Special Administrator for the Estate of BRENT T. TYRRELL (deceased),

Plaintiff and Appellee,

v.

BNSF RAILWAY CO., a Delaware corporation,

Defendant and Appellant.

-----------------------------------------------------------

ROBERT M. NELSON,

Plaintiff and Appellant,

Defendant and Appellee.

APPEAL FROM: District Court of the Thirteenth Judicial District, In and For the County of Yellowstone, Cause Nos. DV 14-0699 and DV 11-417 Honorable Michael G. Moses and G. Todd Baugh, Presiding Judges

COUNSEL OF RECORD:

For Appellant BNSF Railway Co.:

Jeff Hedger, Michelle T. Friend, Jesse Myers, Hedger Friend P.L.L.C., Billings, Montana

Randy J. Cox (argued), Scott M. Stearns, Boone Karlberg P.C., Missoula, Montana

Chad M. Knight, Cash K. Parker, Hall & Evans, LLC, Denver, Colorado

Anthony M. Nicastro, Jaclyn S. Laferriere, Hall & Evans, LLC, Billings, Montana For Appellant Robert M. Nelson:

Bob Fain, Attorney at Law, Billings, Montana

For Appellee Kelly Tyrrell:

Fredric A. Bremseth, Christopher Moreland (argued), Bremseth Law Firm, P.C., Minnetonka, Minnesota

For Amicus Montana Chamber of Commerce:

J. Daniel Hoven, Browning, Kaleczyc, Berry & Hoven, P.C., Helena, Montana

Argued and Submitted: December 9, 2015

Decided: May 31, 2016

Filed:

__________________________________________ Clerk

2 Justice James Jeremiah Shea delivered the Opinion of the Court.

¶1 The plaintiffs in these consolidated appeals, Robert Nelson and Kelli Tyrrell

(Tyrrell), as Special Administrator of the Estate of Brent Tyrrell (Brent), pled violations

of the Federal Employers’ Liability Act (FELA), 45 U.S.C. §§ 51 through 60, for injuries

allegedly sustained while Nelson and Brent were employed by BNSF Railway Company

in states other than Montana. Both actions were brought in the Thirteenth Judicial

District Court, Yellowstone County. BNSF moved to dismiss both plaintiffs’ claims for

lack of personal jurisdiction. Judge Michael G. Moses, presiding over Tyrrell’s action,

denied BNSF’s motion to dismiss. Judge G. Todd Baugh, presiding over Nelson’s

action, granted BNSF’s motion to dismiss. BNSF appeals Judge Moses’ order, and

Nelson appeals Judge Baugh’s order. The issues on appeal are:

1. Whether Montana courts have personal jurisdiction over BNSF under the FELA.

2. Whether Montana courts have personal jurisdiction over BNSF under Montana law.

¶2 We hold that Montana courts have general personal jurisdiction over BNSF under

the FELA and Montana law. We affirm Judge Moses’ order denying BNSF’s motion to

dismiss Tyrrell’s complaint. We reverse Judge Baugh’s order granting BNSF’s motion to

dismiss Nelson’s complaint. We remand both cases for further proceedings consistent

with this Opinion.

PROCEDURAL AND FACTUAL BACKGROUND

¶3 In March 2011, Nelson, a North Dakota resident, sued BNSF to recover damages

for knee injuries he allegedly sustained while employed by BNSF as a fuel truck driver.

3 BNSF is a Delaware corporation, and its principal place of business is Texas. Nelson’s

complaint did not allege that Nelson ever worked in Montana or was injured in Montana.

¶4 BNSF filed a M. R. Civ. P. 12(b)(2) motion to dismiss Nelson’s complaint for lack

of personal jurisdiction. Judge Baugh granted BNSF’s motion, stating: “I believe 3

Judges in this District have faced similar Motions which they have denied based on

applicable precedent. Their rulings seem sound but do not look at whether based on

common sense it may be time to reassess FELA cases in Montana which have no forum

related connection.” Judge Baugh then relied upon a recent United States Supreme Court

decision, Daimler AG v. Bauman, ___ U.S. ___, 134 S. Ct. 746 (2014) (discussed in our

resolution of Issue 1), to hold that BNSF’s “due process rights prevent this Court from

exercising general all-purpose jurisdiction over [BNSF] and this Court does not have

specific jurisdiction.” Nelson appeals Judge Baugh’s order granting BNSF’s motion to

dismiss.

¶5 In May 2014, Tyrrell sued BNSF for injuries Brent allegedly sustained during the

course of his employment with BNSF. The complaint alleged that, while working for

BNSF, Brent was exposed to various carcinogenic chemicals that caused him to develop

kidney cancer and ultimately led to his death. The complaint did not allege that Brent

ever worked for BNSF in Montana or that any of the alleged chemical exposures

occurred in Montana.

¶6 BNSF filed a M. R. Civ. P. 12(b)(2) motion to dismiss Tyrrell’s complaint for lack

of personal jurisdiction. Judge Moses denied BNSF’s motion. He adopted and

incorporated Montana Thirteenth Judicial District Court, Yellowstone County Judge

4 Gregory R. Todd’s ruling on BNSF’s M. R. Civ. P. 12(b)(2) motion to dismiss in Jesse R.

Monroy v. BNSF Ry. Co., Cause No. DV 13-799 (Aug. 1, 2014). In Monroy, Judge Todd

found:

BNSF has established 40 new facilities in Montana since 2010 and invested $470 million dollars in Montana in the last four years. . . . In 2010, Montana shipped by BNSF 35.2 million tons of coal, 8.5 million tons of grain and 2.9 million tons of petroleum. . . . In the last year approximately 57,000 BNSF rail cars of grain per year rode the rails in Montana and 230,000 BNSF rail cars of coal per year go out of Montana. In October 2013, BNSF opened an economic development office in Billings, Montana, because of the heightened amount of business not only for coal and grain in Montana, but in particular the Bakken oil development.1

Judge Todd analyzed Montana and United States Supreme Court precedent interpreting

the FELA. He concluded that, under Montana’s long-arm statute, M. R. Civ. P. 4(b)(1),

BNSF “does meet the criteria of being found within Montana and having substantial,

continuous and systematic activities within Montana for general jurisdiction purposes.”

BNSF appeals Judge Moses’ order denying BNSF’s motion to dismiss, which adopted

and incorporated Judge Todd’s analysis in Monroy.

STANDARD OF REVIEW

¶7 “The existence of personal jurisdiction is a question of law, which we review de

novo.” Tackett v. Duncan, 2014 MT 253, ¶ 16, 376 Mont. 348, 334 P.3d 920.

1 BNSF has not disputed any of these facts.

5 DISCUSSION

¶8 1. Whether Montana courts have personal jurisdiction over BNSF under the FELA.

¶9 Congress enacted the FELA in 1908. The Act was “an avowed departure from the

rules of common law,” in response to “the special needs of railroad workers who are

daily exposed to the risks inherent in railroad work and are helpless to provide adequately

for their own safety.” Sinkler v. Mo. Pac. R.R. Co., 356 U.S. 326, 329, 78 S. Ct. 758, 762

(1958). In keeping with Congressional intent, “[t]he United States Supreme Court has

repeatedly noted that the FELA is to be given a liberal construction in favor of injured

railroad employees so that it may accomplish humanitarian and remedial purposes.”

Labella v. Burlington N., 182 Mont. 202, 205, 595 P.2d 1184, 1186 (1979) (citing Urie v.

Thompson, 337 U.S. 163, 69 S. Ct.

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