Hall v. Environmental Chemical Corp.

• Decision Date: 13 September 1999
• Docket Number: No. Civ.A. G-99-262.,Civ.A. G-99-262.
• Citation: 64 F.Supp.2d 638
• Parties: Gerald HALL, Plaintiff, v. ENVIRONMENTAL CHEMICAL CORP., Defendant.
• Court: U.S. District Court — Southern District of Texas

64 F.Supp.2d 638

Gerald HALL, Plaintiff, v. ENVIRONMENTAL CHEMICAL CORP., Defendant.

No. Civ.A. G-99-262.

United States District Court, S.D. Texas, Galveston Division.

September 13, 1999.

Richard Joseph Plezia, Abraham Watkins Nichols and Friend, Houston, TX, for Gerald Hall, plaintiff.

Thomas C. Fitzhugh, III, Fitzhugh and Elliott, Houston, TX, John C. Elliott, Fitzhugh & Elliott, Houston, TX, for Environmental Chemical Corp, defendant.

ORDER DENYING MOTIONS TO DISMISS OR TRANSFER VENUE

KENT, District Judge.

Plaintiff Hall brings this action against Defendant Environmental Chemical Corp. for personal injuries arising under the Jones Act and general maritime law. The injuries allegedly occurred on November 10, 1997 aboard a barge named PACIFIC. Now before the Court is Defendant's Motion to Dismiss or Transfer filed August 5, 1999. For the reasons stated below, and despite being well prepared and cleverly argued, the Motion to Dismiss or Transfer is DENIED.

I. FACTUAL SUMMARY

In July of 1997, Defendant recruited and hired Plaintiff, who resides in Galveston County, Texas, to work as a machine operator for a remediation project on Palmyra Island, a possession of the United States that lies a thousand miles south of the State of Hawaii. To house its workers, Defendant chartered the barge PACIFIC for use on the waters adjacent to Palmyra Island. For approximately ten days, Plaintiff traveled on a tug boat that transported the PACIFIC from Honolulu, Hawaii to Palmyra Island. Upon arrival at Palmyra Island, Plaintiff alleges that his duties on the barge included operating a crane affixed to the barge, as well as assisting in the mechanical maintenance of the PACIFIC. On November 10, 1997, Plaintiff suffered physical injuries aboard PACIFIC while ascending a ladder that was connected to the barge crane. Upon returning to Texas, Plaintiff began to receive medical care for his alleged injuries, which was initially paid for by Defendant. At the end of 1998, however, Defendant terminated what Plaintiff characterizes as his maintenance and cure benefits. On April 28, 1999, Plaintiff filed suit against Defendant, asserting claims under the Jones Act and general maritime law.

II. SUBJECT MATTER JURISDICTION

Defendant first seeks dismissal based upon a lack of subject matter jurisdiction, pursuant to FED.R.CIV.P. 12(b)(1). The Court finds this assertion patently untenable. For admiralty jurisdiction to exist over a tort action, the claim must have both a maritime locality and a connection to maritime activity. See Jerome B. Grubart, Inc. v. Great Lakes Dredge & Dock Co., 513 U.S. 527, 534, 115 S.Ct. 1043, 1048, 130 L.Ed.2d 1024 (1995). The locality requirement is satisfied when the incident forming the basis of the claim occurs on navigable water. See Three Buoys Houseboat Vacations U.S.A. v. Morts, 921 F.2d 775, 777 (8th Cir.1990). The connection, or nexus, prong is satisfied when the general character of the activity giving rise to the incident bears a "significant relationship to traditional maritime activity" and is of a general type that could have a potentially disruptive impact on maritime commerce. Grubart, 513 U.S. at 538, 539-40, 115 S.Ct. at 1048, 1051 (citing Sisson v. Ruby, 497 U.S. 358, 363, 110 S.Ct. 2892, 2896, 111 L.Ed.2d 292 (1990)).

Here, Defendant attempts to characterize Plaintiff's case as falling beyond the scope of admiralty jurisdiction, alleging that: (1) Plaintiff's injuries suffered aboard PACIFIC did not occur in the scope of employment, (2) the PACIFIC was not engaged in maritime commerce, and (3) Plaintiff's connection with the PACIFIC did not expose him to maritime hazards. However, based upon the facts presently known to the Court, the Court remains utterly unpersuaded by Defendant's arguments. Defendant's Motion does not challenge the locality requirement, therefore, for the purposes of a Rule 12(b)(1) finding, the Court finds sufficient evidence in the Plaintiff's pleadings to support the claim that Plaintiff's injuries occurred on a navigable waterway. The Court also finds that the alleged facts of this case satisfy the maritime nexus prong. Plaintiff alleges that his injuries occurred in direct connection with his operation of a crane attached to the PACIFIC and arose from the unseaworthiness condition of the barge. An injury to a barge crane operator has a potentially disruptive impact on maritime commerce in that it could delay the transfer of goods, material, and cargo to and from the barge. Moreover, given that the barge crane served as the only one in the area, the crane served a vital purpose to Defendant's operation — one commensurate with activities expected to be performed on a barge. See id., at 538, 539-40, 115 S.Ct. at 1051 (explaining that the general character of the activity giving rise to the incident should bear a "substantial relationship to traditional maritime activity"). Hence, the Court finds a sufficient connection to maritime activity to invoke admiralty jurisdiction.¹

Because this cause of action is cognizable under admiralty jurisdiction, the Court accordingly DENIES Defendant's Motion to Dismiss for Lack of Subject Matter Jurisdiction.

III. JURISDICTIONAL ISSUES RELATED TO 48 U.S.C. § 644a

Defendant next argues that jurisdiction over this dispute lies exclusively in the District Court of Hawaii. This Court disagrees. Although Defendant points with sincerity to the legislative history of 48 U.S.C. § 644a, Defendant's argument is simply not supported by the plain language of the statute. Section 644a provides, in relevant part, that "[t]he jurisdiction of the United States District Court for the District of Hawaii is extended to all civil and criminal cases arising on or within ... Palmyra Island...." 48 U.S.C. § 644a. Despite whatever arguments Defendant derives from the legislative history of this statute, it remains clear that if Congress desired to vest exclusive jurisdiction in the District Court of Hawaii, it could easily have included language indicating as much. In fact, Congress has in the past taken particular care to denote when specific courts have exclusive jurisdiction. See e.g., 12 U.S.C. § 2278b-4(b) (1994) (granting exclusive jurisdiction to the United States District Court for the District of Columbia over civil actions taken against Board members of the Farm Credit Administration's Financial Assistance Corporation); 15 U.S.C. § 719h(c)(1) (1994) (extending exclusive jurisdiction to the United States Court of Appeals for the District of Columbia as a Special Court in certain matters relating to claims brought against the Federal Power Commission for activities related to the construction and operation of the Alaska Natural Gas Pipeline Transportation System); 31 U.S.C. § 301(b)(1) (1994) ("The United States District Court for the District of Columbia shall have exclusive jurisdiction over [civil actions taken against the Secretary of the Treasury], without regard to the sum or value of the matter in controversy."); 44 U.S.C. § 301 (Sec.105(a) ("The United States District Court for the District of Columbia shall have exclusive jurisdiction to hear challenges to the legal or constitutional validity of this title or of any regulation issued under the authority granted by this title....").

In this situation, however, a careful examination of 48 U.S.C. § 644a reveals that Congress chose not to insert a provision designating the District Court of Hawaii as possessing exclusive jurisdiction to resolve disputes relating to activities occurring on the waters adjacent to Palmyra Island. C.f. H.R.REP. No. 76-2573, at 1 (1940) (noting that the primary concern for enacting the original legislation revolved around providing a forum for litigation that would apply United States law to actions committed on United States possessions such as Palmyra Island); see also Jackman v. Asiatic Petroleum Corp., 34 Misc.2d 492, 228 N.Y.S.2d 720, 723 (N.Y.Sup.Ct.1962) (recognizing that § 644a lacks "an express statutory provision that the jurisdiction of the Hawaiian District Court shall be exclusive"). Consequently, Defendant's contention, under 48 U.S.C. § 644a, that this Court lacks jurisdiction to preside over this case is DENIED.

IV. PERSONAL JURISDICTION

Defendant is a Kentucky corporation with its principal place of business outside of Texas. Defendant seeks dismissal pursuant to FED.R.CIV.P. 12(b)(2), contending that this Court lacks personal jurisdiction over it. In federal court, personal jurisdiction over a nonresident defendant is proper when: (1) the defendant is amenable to service of process under the forum state's long-arm statute, and (2) the exercise of personal jurisdiction over the defendant is consistent with due process. See Jones v. Petty-Ray Geophysical Geosource, Inc., 954 F.2d 1061, 1067 (5th Cir. 1992). The Texas long-arm statute authorizes service of process on a nonresident defendant if the defendant is determined to be "doing business" in Texas. See TEX. CIV.PRAC. & REM.CODE ANN. § 17.042. Because the phrase "doing business" has been interpreted to reach as far as the United States Constitution permits, the jurisdictional inquiry under the Texas long-arm statute collapses into a single due process inquiry. See Ruston Gas Turbines, Inc. v. Donaldson Co., 9 F.3d 415, 418 (5th Cir.1993); Schlobohm v. Schapiro, 784 S.W.2d 355, 356-57 (Tex.1990).

Whether the exercise of personal jurisdiction over Defendant is consistent with the Due Process Clause of the United States Constitution likewise requires a two-pronged inquiry. First, the Court must conclude that Defendant has "minimum contacts" with Texas. See International Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945). Second, the Court must determine that requiring Defendant to litigate in Texas does not offend "traditional notions of fair play and substantial justice." Id.; see also Wilson v. Belin, 20 F.3d 644, 647 (5th Cir.1994); Ruston, 9 F.3d...