Barry v. Shell Oil Co.
Barry v. Shell Oil Co.
Opinion of the Court
ORDER AND OPINION
[Re: Motion at docket 54]
I. MOTION PRESENTED
At docket 54, Defendants Shell Oil Company (“Shell”), Shell Offshore, Inc. (“Shell Offshore”), and Arctia Offshore, Ltd. (“Arctia”; collectively referred to as “Defendants”) filed a motion to strike the jury demand made by Plaintiff Blane Barry (“Plaintiff’). Plaintiff responds at docket 56, and Defendants reply at docket 57.
II. BACKGROUND
On August 17, 2012, Plaintiff was a crew member aboard the MSY NORDICA, which was in navigable waters in Alaska, when he sustained serious injuries while lifting heavy cables on the vessel. He thereafter filed a series of lawsuits seeking damages. In December 2012 he filed a negligence claim in Harris County, Texas, against Shell and Arctia, but he later voluntarily dismissed the suit after Arctia challenged the court’s personal jurisdiction over it. Plaintiff then filed suit in Orleans Parish, Louisiana, naming Shell, Shell Offshore, Arctia, and the other defendant in this case, Safety Management Systems, LLC (“SMS”), as defendants. After the defendants successfully challenged venue, the case was transferred to East Baton Rouge Parish. Arctia was later dismissed from the case for lack of personal jurisdiction. The state court action is currently pending but only against Shell, Shell Offshore, and SMS.
Plaintiff filed the current action in federal court on July 20, 2015, against Shell and Arctia. The complaint specifically premised the court’s jurisdiction on diversity jurisdiction under 28 U.S.C. § 1332. The complaint contained claims against Shell and Arctia for negligence, negligence per se, and unseaworthiness “under the general
Defendants argue that with the addition of SMS to the action, there is no longer complete diversity of the parties — the parties do not dispute that Plaintiff and SMS are both citizens of Louisiana. Defendants argue that without complete diversity, the only basis for the court’s subject matter jurisdiction is based on admiralty pursuant to 28 U.S.C. § 1383, and they point out that there is no right to a jury trial in admiralty cases. Plaintiff argues that his right to a jury trial should be preserved. Alternatively, he argues that he intends to file a motion to dismiss SMS without prejudice to remedy the complete diversity problem. Defendants reply that SMS cannot or should not be dismissed from the case.
III. STANDARD OF REVIEW
Rule 39 allows a court, on motion or on its own, to find that there is no federal right to a jury trial on some or all issues present in a case.
IV. DISCUSSION.
Under 28 U.S.C. § 1333 federal courts have exclusive jurisdiction over “[a]ny civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled.”
The Ninth Circuit has expanded the rationale in Fitzgerald to situations where admiralty in rem claims are combined with diversity in personam claims. In Ghotra v. Bandila Shipping, Inc.,
The Ghotras invoked the jurisdiction of two historically separate departments in a single action, combining claims at law under diversity jurisdiction with an in rem claim under admiralty jurisdiction. Under the Seventh Amendment, the Ghotras were entitled to a jury trial on the claims brought under the court’s diversity jurisdiction. We find nothing inherently incongruous about bringing an in rem and an in personam claim together before the jury when the claims arise out of a single occurrence. Although the right to jury trial in the instant case derives from the savings to suitors clause rather than a statutory grant such as the Jones Act, the reasoning of Fitzgerald is equally persuasive and justifies a jury trial over all four claims, where the in rem claim arises out of the same factual circumstances as the other three claims. ... In light of the fact that the Ghotras could have brought two separate actions, one consisting of the in personam claims brought under diversity and one consisting solely of the in rem claim, which could then have been consolidated into one action under Federal Rule of Civil Procedure 42(a),5 we find no reason to penalize the Ghotras by ruling that the decision to combine the two into one single action constituted an election to proceed in admiralty alone without the right to jury trial.14
The Fourth Circuit specifically rejected Powell in Vodusek v. Bayliner Marine Corp.
The Ninth Circuit has not weighed in on the issue of whether complete diversity is required in order to proceed with a jury trial in a mixed admiralty-diversity case. That is, it has not ruled on whether a plaintiff can receive a jury trial in a mixed admiralty-diversity case when admiralty is invoked to include a non-diverse defen
Neither party specifically discussed the split between the Fourth and Fifth Circuits on this issue that is directly related to the motion at hand. However, the court notes that unlike the plaintiff in Vodusek, Plaintiff did not separate his claims against the diverse defendants from his claims against the non-diverse defendants; nor did he specify that the jurisdictional basis was different. Rather, he simply indicated that jurisdiction was based on diversity without anticipating the complete diversity problem. Even if Plaintiff could simply remedy that distinction through an amendment, the court concludes that the Ninth Circuit’s opinion in Ghotra should not be extended to allow him to do so given dicta in the case. The court noted that by allowing a jury trial on in rem claims, when combined with in personam diversity claims, the court was not “opening] the floodgates” to allow jury trials in all maritime cases.
Plaintiff stated in his response brief that he would be filing a motion to dismiss SMS from the complaint in order to fix the complete diversity requirement. No such motion has yet been filed. Defendants -argue in their reply that SMS is a required party under Rule 19 and therefore cannot be dismissed. Without a motion and full briefing on the issue from both sides, the eourt declines to rule on the issue of whether SMS can be dismissed or whether it is a required party. Therefore, given that SMS is still a party to the complaint and its presence destroys complete diversity, Plaintiffs demand for a jury trial must be stricken at this time. However, the court notes that it could reassess the issue of a jury trial if SMS .is allowed to be dismissed or if the presence of the cross-claim affects the issue of whether a jury trial is allowed.
Based on the preceding discussion, Defendants’ motion to strike Plaintiffs jury demand at docket 54 is GRANTED.
. Fed. R. Civ. P. 39(a)(2) ("When a jury trial has been demanded under Rule 38 ... [t]he trial on all issues so demanded must be by jury unless: ,.. the court, on motion or on its own, finds that on some or all of those issues there is no federal right to a jury trial.”)
. S.E.C. v. Rind, 991 F.2d 1486, 1493 (9th Cir. 1993).
. 28 U.S.C. § 1333(1).
. Ghotra v. Bandila Shipping, Inc., 113 F.3d 1050, 1054 (1997) (internal quotation marks omitted).
. Id.
. Id.
. Id. at 1056.
. Id. at 1054.
. See Moreno v. Ross Island Sand & Gravel Co., No. 2:13-cv-00691, 2015 WL 5604443, at *17 (E.D.Cal. Sept. 23, 2015) (discussing development of court of admiralty and the reason for not providing a common law right to a jury trial in admiralty cases).
. 374 U.S. 16, 83 S.Ct. 1646, 10 L.Ed.2d 720 (1963).
. Id. at 18, 83 S.Ct. 1646.
. Id. at 21, 83 S.Ct. 1646.
. 113 F.3d 1050 (9th Cir. 1997).
. Id. at 1057.
. 635 F.3d 181 (5th Cir. 2011).
. 702 F.2d 585, 588 (5th Cir. 1983).
. 803 F.2d 845 (5th Cir. 1986).
. Luera, 635 F.3d at 190-91.
. 644 F.2d 1063 (5th Cir. 1981).
. Id. at 1068-69.
. 71 F.3d 148 (4th Cir. 1995).
. Id. at 154.
. Id.
.As noted above, in Luera the Fifth Circuit later clarified the holdings of those two cases and held that a plaintiff has a right to a jury where he alleges both an in personam and in rem claim so long as the plaintiff properly stated that tire in personam claims were being . based solely on diversity jurisdiction.
. 113 F.3d at 1057-58.
. Id.
. Cf. Wilmington Tr. v. U.S. Dist. Court, 934 F.2d 1026, 1031 (9th Cir. 1991) (holding that the plaintiffs election to proceed in admiralty did not deprive the defendant of the right to
Reference
- Full Case Name
- Blane BARRY v. SHELL OIL COMPANY, ARCTIA OFFSHORE, LTD., Shell Offshore Inc., and Safety Management Systems, LLC
- Status
- Published