In re Air Crash over Taiwan Straits On May 25

• Decision Date: 20 July 2004
• Docket Number: No. CV 03-3635 MMM (RNBx).,CV 03-3635 MMM (RNBx).
• Citation: 331 F.Supp.2d 1176
• Court: U.S. District Court — Central District of California
• Parties: In re AIR CRASH OVER THE TAIWAN STRAITS ON MAY 25, 2002.

331 F.Supp.2d 1176

In re AIR CRASH OVER THE TAIWAN STRAITS ON MAY 25, 2002.

No. CV 03-3635 MMM (RNBx).

United States District Court, C.D. California.

July 20, 2004.

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Stuart R. Fraenkel, Esq., Gretchen M. Nelson, Esq., Kreindler & Kreindler LLP, Los Angeles, CA, Brian A. Alexander, Esq., Francis G. Fleming, Esq., Kreindler and Kreindler LLP, New York City, Michael Yin-Yam Lo, Michael Lo Law Offices, Alhambra, CA, Steven D. Archer, Esq., Robins, Kaplan, Miller & Ciresi LLP, Los Angeles, CA, Bruce A. Finzen, Esq., Robins, Kaplan, Miller & Ciresi LLP, Washington, DC, John J. Veth, Esq., Douglas W. Schroeder, Esq., Speiser Krause, Irvine, CA, Charles Herrmann, Esq., Herrmann & Associates, Tacoma, WA, for Plaintiffs.

Frank A. Silane, Esq., Richard A. Lazenby, Esq., Condon & Forsyth LLP, Los Angeles, CA, for China Airlines.

Ronald A. McIntire, Esq., Melora M. Garrison, Esq., Perkins Coie LLP, Santa Monica, CA, Thomas J. McLaughlin, Esq., Adam N. Steinman, Esq., Perkins Coie LLP, Seattle, WA, for The Boeing Company.

ORDER GRANTING DEFENDANTS' MOTION TO DISMISS ON FORUM NON CONVENIENS GROUNDS

MORROW, District Judge.

On May 25, 2002, China Airlines flight CI611 crashed while en route from Taipei, Taiwan, to Hong Kong, resulting in the death of all 225 persons aboard. Heirs of 124 of the decedents have filed actions pending in this court against defendants Boeing Company and China Airlines. Both defendants move to dismiss all but three of these actions on forum non conveniens grounds.

I. FACTUAL BACKGROUND

On May 25, 2002, China Airlines flight CI611, a regularly scheduled flight from Taipei, Taiwan to Hong Kong, China,¹ crashed into Taiwanese waters.² All 225 persons on board died in the crash.³ Heirs of 121 of the decedents filed actions that are pending in this court, and that are the subject of defendants' motion to dismiss.⁴ Of these decedents, 111 were Taiwanese.⁵

The aircraft involved in the accident was a Boeing 747-200 aircraft, registration B18255.⁶ China Airlines, a Taiwanese corporation,⁷ purchased the aircraft from defendant Boeing Company in 1979.⁸ Plaintiffs' complaints state claims against Boeing and China Airlines for, inter alia, wrongful death, negligence, and strict products liability.⁹ Both defendants seek dismissal on forum non conveniens grounds. They contend that Taiwan is an available and adequate forum, and that the balance of public and private interests weighs in favor of having the action tried in the Taiwan courts.

II. DISCUSSION

A. Legal Standard Governing Forum Non Conveniens Dismissals

"[T]he standard to be applied [to a motion to dismiss on forum non conveniens grounds] is whether ... defendants have made a clear showing of facts which ... establish such oppression and vexation of a defendant as to be out of proportion to plaintiff's convenience, which may be shown to be slight or nonexistent...." Cheng v. Boeing Co., 708 F.2d 1406, 1410 (9th Cir.1983). Applying this standard, courts treat "forum non conveniens as an exceptional tool to be employed sparingly," and should not "perceive it as a doctrine that compels plaintiffs to choose the optimal forum for their claim." Ravelo Monegro v. Rosa, 211 F.3d 509, 514 (9th Cir.2000), cert. denied, 531 U.S. 1112, 121 S.Ct. 857, 148 L.Ed.2d 771 (2001).

To obtain dismissal on forum non conveniens grounds, a defendant must demonstrate that an adequate alternative forum exists, and that private and public interest factors favor trial there. See Piper Aircraft Co. v. Reyno, 454 U.S. 235, 254, 102 S.Ct. 252, 70 L.Ed.2d 419 (1981); Lueck v. Sundstrand Corp., 236 F.3d 1137, 1143 (9th Cir.2001); Jones v. GNC Franchising, Inc., 211 F.3d 495, 499 n. 22 (9th Cir.2000).

Relevant "private interests" include: (1) the relative ease of access to sources of proof; (2) the availability of compulsory process for unwilling witnesses; (3) the comparative cost of obtaining willing witnesses; (4) the possibility of a view of any affected premises; (5) the ability to enforce any judgment eventually obtained; (6) and "all other practical problems that make trial of a case easy, expeditious and inexpensive." Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 508, 67 S.Ct. 839, 91 L.Ed. 1055 (1947), superseded by statute on other grounds as recognized in Hartford Fire Ins. Co. v. Westinghouse Elec. Corp., 725 F.Supp. 317 (S.D.Miss.1989); see also Rosa, supra, 211 F.3d at 512; Nebenzahl v. Credit Suisse, 705 F.2d 1139, 1140 (9th Cir.1983).

"Public interest factors," by contrast, include: (1) court congestion; (2) the unfairness of burdening citizens in an unrelated forum with jury duty; (3) the interest in having localized controversies decided at home; (4) the interest in trying the case in a forum familiar with the applicable law; and (5) the interest in avoiding unnecessary conflicts of laws. Gilbert, supra, 330 U.S. at 508-09, 67 S.Ct. 839; Rosa, supra, 211 F.3d at 512. Defendant bears the burden of showing, in light of these factors, that "exceptional circumstances" warrant dismissal on forum non conveniens grounds. See Ioannidis/Riga v. M/V Sea Concert, 132 F.Supp.2d 847, 861 (D.Or.2001); Magellan Real Estate, Investment Trust v. Losch, 109 F.Supp.2d 1144, 1148 (D.Ariz.2000). Ultimately, the determination is one that is committed to the sound discretion of the district court. Lueck, supra, 236 F.3d at 1143.

1. Whether Taiwan Is An Adequate Forum

To demonstrate that Taiwan is an adequate forum, defendants must show that "(1) they are amenable to process [there], and (2) [that] the subject matter of the lawsuit is cognizable [there] so as to provide plaintiff appropriate redress." Bodner v. Banque Paribas, 114 F.Supp.2d 117, 132 (E.D.N.Y.2000); see also Piper, supra, 454 U.S. at 254 n. 22, 102 S.Ct. 252; AAR International, Inc. v. Nimelias Enterprises S.A., 250 F.3d 510, 524 (7th Cir.2001) ("The court must first determine that an adequate alternative forum is available to hear the case, meaning that all parties are within the jurisdiction of the alternative forum and amenable to process there, and that the parties would not be treated unfairly or deprived of all remedies if the case were litigated in the alternative forum"); Aguinda v. Texaco, Inc., 142 F.Supp.2d 534, 539 (S.D.N.Y.2001) ("The requirement of an adequate alternative forum `ordinarily ... will be satisfied when the defendant is "amenable to process" in the other jurisdiction'"), aff'd. as modified, 303 F.3d 470 (2d Cir.2002).¹⁰

a. Defendants Are Subject To The Jurisdiction Of The Taiwan Courts And Amenable To Process There

The parties do not dispute that Taiwan courts will be able to assert personal jurisdiction over China Airlines, and China Airlines has stated that it is amenable to process in Taiwan.¹¹ This satisfies the first prong of the adequate alternative forum test as respects China Airlines. See Aguinda, supra, 142 F.Supp.2d at 539.

Boeing has stated that it will accept service of process and submit to the jurisdiction of the Taiwanese courts.¹² Plaintiffs nonetheless contend "there are serious questions as to whether jurisdiction would exist" over claims asserted against Boeing. Specifically, they note that Boeing is not authorized to do business in Taiwan; that it does not have a principal place of business in Taiwan; that the crash occurred outside Taiwan's territorial waters; and that they allege product liability claims arising from conduct that occurred in the United States.¹³

In response, defendants submit declarations and deposition testimony indicating that Taiwanese courts have jurisdiction over claims if they have either subject matter jurisdiction over the claim or personal jurisdiction over the defendant.¹⁴ They also proffer evidence that, as respects plaintiffs' claims against Boeing, Taiwanese courts may have both types of jurisdiction. Defendants cite the deposition testimony of plaintiffs' experts, both of whom state that under Article 25 of Taiwan's Code of Civil Procedure, Taiwanese courts will accept a defendant's consent to jurisdiction.¹⁵ Boeing has represented that it will consent to the jurisdiction of a Taiwan court if these actions are dismissed on forum non conveniens grounds.¹⁶ Additionally, defendants adduce evidence that the crash of flight CI611 occurred in Taiwanese territorial waters.¹⁷ Because Taiwanese courts have subject matter jurisdiction over an action if either a wrongful act occurred in Taiwan or such an act caused a result in Taiwan,¹⁸ it appears that the Taiwanese courts would have subject matter jurisdiction over claims against Boeing arising out of the crash.¹⁹ Finally, defendants proffer evidence that Taiwanese courts can assert subject matter jurisdiction over claims that a defendant's acts caused or contributed to damage to Taiwanese plaintiffs in Taiwan.²⁰ This evidence, coupled with the fact that China Airlines is subject to personal jurisdiction in Taiwan because it is a resident, suffices to satisfy the first prong of the adequate alternative forum test. See Aguinda, supra, 142 F.Supp.2d at 539.

b. Whether Plaintiffs' Claims Are Cognizable In Taiwan

To demonstrate that plaintiffs' claims are cognizable in Taiwan's courts, such that those courts can afford appropriate redress, defendants must establish that Taiwan permits litigation of the subject matter of the dispute, that it provides adequate procedural safeguards, and that the remedy available there is not so inadequate as to amount to no remedy at all. See Piper, supra, 454 U.S. at 255 n. 22, 102 S.Ct. 252 ("dismissal would not be appropriate where the alternative forum does not permit litigation of the subject matter of the dispute"); Lueck, supra, 236 F.3d at 1143 ("The foreign forum must provide the plaintiff with some remedy for his wrong in order for the alternative forum to be adequate.... However, it is only in `rare circumstances ... where the remedy provided by the alternative forum ... is so clearly inadequate...