In re Bridgestone/Firestone

• Decision Date: 15 September 2008
• Docket Number: No. W2006-02550-COA-R9-CV.,W2006-02550-COA-R9-CV.
• Citation: 286 S.W.3d 898
• Parties: In re BRIDGESTONE/FIRESTONE and Ford Motor Company Litigation.
• Court: Tennessee Court of Appeals

286 S.W.3d 898

In re BRIDGESTONE/FIRESTONE and Ford Motor Company Litigation.

No. W2006-02550-COA-R9-CV.

Court of Appeals of Tennessee, Western Section, at Jackson.

January 25, 2008 Session.

September 15, 2008.

Permission to Appeal Denied by Supreme Court March 23, 2009.

Steven A. Riley and Salvador M. Hernandez, Nashville, TN, for the appellant Bridgestone Corporation; James F. Sanders and A. Scott Ross, Nashville, TN, for the appellant Bridgestone Firestone North American Tire, LLC; and Stephen A. Marcum, Huntsville, TN, and Craig A. Morgan, Austin, TX, for the appellant Ford Motor Company.

Steve North, Madison, TN; Richard L. Denney and Lydia JoAnn Barrett, Norman, OK; Robert L. Langdon and J. Kent

Emison, Lexington, MO; John M. Merritt, Oklahoma City, OK; and Richard L. Lagarde, Houston, TX, for the appellees.

OPINION

HOLLY M. KIRBY, J., delivered the opinion of the Court, in which ALAN E. HIGHERS, P.J., W.S., and DAVID R. FARMER, joined.

The second appeal in this case involves the effect of a previous forum non conveniens dismissal. The plaintiffs, residents and citizens of Mexico, were injured in automobile accidents that took place in Mexico. They filed multiple lawsuits against several American corporate defendants, alleging that the accidents were the result of defects in the vehicles' tires. The corporate defendants moved for dismissal on the ground of forum non conveniens. The trial court denied the motions, and the defendants were granted permission to file an interlocutory appeal. The Court of Appeals reversed the trial court and dismissed the consolidated case on the ground of forum non conveniens, based on the availability of Mexico as a more convenient forum for litigation of the plaintiffs' claims. Subsequently, the plaintiffs filed numerous lawsuits in several Mexican trial courts. These cases were all dismissed, and the dismissals were affirmed on appeal. The plaintiffs then filed new lawsuits in Davidson County Circuit Court against the same defendants, which were again consolidated for pretrial purposes. The defendants filed motions to dismiss on grounds of issue preclusion, arguing that the issues of forum non conveniens and the availability of Mexico as an available alternate forum had been determined in their favor in the first appeal. The trial court denied the motion to dismiss, finding that Mexico was not, in fact, an available forum, as evidenced by the numerous dismissals by the Mexican tribunals. The defendants were granted permission for this interlocutory appeal. On appeal, we address the effect of our previous decision and vacate the order denying the defendants' motion to dismiss, and remand the cause to the trial court for further proceedings on the availability of Mexico as an alternate forum for the plaintiffs' claims.

FACTS AND PROCEEDINGS BELOW

This is the second appeal of these consolidated lawsuits, still at the pretrial stage, arising out of vehicular accidents that occurred in Mexico in 2000. In 2001, the plaintiff Mexican citizens and residents ("Plaintiffs") filed thirty-one lawsuits against Bridgestone Corporation ("Bridgestone"), Bridgestone/Firestone North American Tire, L.L.C. ("Firestone"),¹ and Ford Motor Company ("Ford")² in the Circuit Court for Davidson County, Tennessee. The Plaintiffs' complaints alleged that the accidents were caused by defects in the tires on the automobiles, which were manufactured by Firestone and installed on Ford sport utility vehicles. The Plaintiffs stated claims of negligence, strict liability, violation of the Tennessee Consumer Protection Act, and civil conspiracy. On May 21, 2001, all of the cases pending were consolidated for pre-trial purposes by the Circuit Court for Davidson County.

On August 16, 2001, Firestone and Ford filed motions to dismiss the consolidated action on grounds of forum non conveniens, arguing that the Plaintiffs' claims should be litigated in Mexico.³ The trial court denied the motion, and its order of denial stated that Firestone and Ford had "not convinced [the] Court that the courts in Mexico would provide a truly adequate alternative forum. . . ." The trial court also found that the defendants had failed to establish the elements necessary for dismissal on the ground of forum non conveniens. The trial court's order concluded, "[I]t appears that the interests of justice would be best and most efficiently served by conducting the trials in the cause in Nashville, Tennessee."

Firestone and Ford sought permission from the trial court to file an interlocutory order; its request was denied. Firestone and Ford were then granted permission by the Court of Appeals to file an extraordinary appeal under Rule 10 of the Tennessee Rules of Appellate Procedure.

On appeal, we reversed the trial court's denial of the defendants' motions and dismissed the case. In re Bridgestone/Firestone, 138 S.W.3d 202, 210 (Tenn.Ct.App. 2003), app. denied (June 1, 2004). Noting that the trial court's denial of the motions to dismiss was based on the perceived inadequacy of the alternate forum in Mexico, we held, inter alia, that a trial court considering a motion to dismiss on the basis of forum non conveniens should consider the availability of an alternate forum, not the adequacy of the alternate forum. Id. at 207 ("The relevant inquiry encompasses the availability of an alternative forum, but not its adequacy."). The appellate opinion went on to say: "In the present matter, the record indicates that both Ford and Firestone have consented to waive any jurisdictional defenses, including any applicable statutes of limitations, if plaintiffs file suit in Mexico. As such, the courts of Mexico provide an available alternative forum." Id. at 206-07. It then considered the factors set forth in Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 67 S.Ct. 839, 91 L.Ed. 1055 (1947), used to determine whether, aside from the availability of an alternate forum, a case is appropriate for a dismissal on the basis of forum non conveniens. Id. at 207-10. We found that, on balance, these factors weighed in favor of dismissal. Accordingly, the trial court's denial of the motions to dismiss was reversed and the consolidated cases were dismissed. Id. at 210. Our Supreme Court denied the plaintiffs' application for permission to appeal further.

Subsequently, several of the plaintiffs filed separate lawsuits in various Mexican trial courts. Ultimately, all of these cases were dismissed. Some of these dismissals were appealed; all that were appealed were affirmed.

The majority of the lawsuits filed in Mexico were dismissed for lack of jurisdiction.⁴ Some of the Mexican trial court orders and appellate opinions indicated that the Plaintiffs had notified the Mexican courts that Ford, Firestone, and Bridgestone had agreed not to raise any jurisdictional challenges.⁵ The Mexican orders and opinions also indicated that the Plaintiffs may not have followed the proper procedure for submitting to the particular court's jurisdiction.

After the dismissals in the various Mexican courts, the Plaintiffs/Appellants in the case at bar filed new complaints in the Circuit Court for Davidson County. In total, twenty-six new lawsuits were filed against Ford, Bridgestone,⁶ and Firestone, asserting claims for negligence, strict liability, civil conspiracy, violation of the Tennessee Consumer Protection Act, and breach of an implied warranty of merchantability. Ford and Firestone answered the complaints, raising the defenses of res judicata and collateral estoppel. The Plaintiffs filed a motion to strike those defenses, and Ford and Firestone filed motions to dismiss on grounds of res judicata and collateral estoppel.

In the motions to dismiss, Ford and Firestone cited the opinion in the first appeal, arguing that the availability of Mexico as an alternate forum had already been litigated and decided. Accordingly, they contended, the doctrine of collateral estoppel precluded the Plaintiffs from claiming that the Mexican forum was unavailable. The Plaintiffs contended that the dismissal of their lawsuits filed in various Mexican courts showed that Mexico was unavailable as an alternate forum. They argued that Mexico's demonstrated unavailability made the doctrine of collateral estoppel inapplicable under the circumstances. They asserted that the dismissal of their prior cases on the ground of forum non conveniens had an implied "return jurisdiction" clause, which would serve to allow the Tennessee court to exercise jurisdiction in the event Mexico refused to do so.

On November 20, 2006, the trial court denied the motions to dismiss filed by Ford and Firestone, and granted the Plaintiffs' motion to strike the affirmative defenses of collateral estoppel and res judicata. In its order, the trial court explained that res judicata was not applicable because the lawsuits filed before the first appeal were not decided on the merits. It found that collateral estoppel was likewise not applicable because the issue of Mexico's availability as an alternate forum was not conclusively determined. The trial court stated, "Since the existence of jurisdiction of Mexican courts is a matter for them alone to decide, this issue has not been conclusively decided by Tennessee courts and principles of collateral estoppel do not apply." The trial court also found that a return jurisdiction clause was implicit in this Court's prior dismissal of the first consolidated cases.

Defendants Ford and Firestone sought interlocutory appeal of the order denying their motions to dismiss, pursuant to Rule 9 of the Tennessee Rules of Appellate Procedure. The trial court granted permission to file the interlocutory appeal and consolidated the cases for purposes of the appeal. Firestone and Ford then filed an application with this Court for permission to appeal under Rule 9, which Bridgestone joined as to those cases in which it was a party. We granted permission to file this interlocutory appeal.

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