Jackson v. North Bank Towing Corp.

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT _______________ m 99-30030 _______________ WARREN ROY JACKSON, Plaintiff-Appellant, VERSUS NORTH BANK TOWING CORPORATION; ET AL, Defendants, NORTH BANK TOWING CORPORATION AND J. RAY MCDERMOTT, INC., Defendants-Appellees. _________________________ Appeal from the United States District Court for the Eastern District of Louisiana _________________________ June 2, 2000 ON PETITION FOR PANEL REHEARING PER CURIAM: The petition for panel rehearing is Before HIGGINBOTHAM and SMITH, GRANTED. The opinion, 201 F.3d 415 (5th Circuit Judges, and FALLON, District Cir. 2000) (per curiam), is VACATED, and Judge.* the following opinion is substituted: Warren Jackson appeals the dismissal of his * foreign law tort claims for negligence and District Judge of the Eastern District of Louisiana, sitting by designation. maintenance and cure. Because Jackson’s claims previously were dismissed in Louisiana IT IS FURTHER ORDERED, state court, res judicata bars relitigation of ADJUDGED AND DECREED, that the them. We therefore affirm the dismissal, but Motion for Reconsideration of the on grounds different from those relied on by Motion for Summary Judgment of the district court. defendants as to any and all Mexican law claims, Honduran law claims or any I. and all foreign law claims is hereby Jackson, a non-resident alien and citizen of granted and those claims are dismissed Honduras, was employed as a seaman by without prejudice, at plaintiff’s sole North Bank Towing Corporation, a Louisiana cost, subject only to plaintiff’s right to corporation, aboard M/V MARTHA EU- pursue such claims in an appropriate GENIA, owned and operated by J. Ray Mc- jurisdiction in Mexico and/or Dermott, Inc. (with North Bank, collectively Honduras; “defendants”). Jackson was injured when he fell aboard the vessel while it was engaged in IT IS FURTHER ORDERED, offshore oil and gas exploration off the coast ADJUDGED AND DECREED, that the of Mexico. Motion for Reconsideration of the Motion for Summary Judgment of the Jackson first sued in state court, alleging a defendants as to any and all Mexican variety of state, federal, and foreign law law claims, Honduran law claims or any maritime and tort claims. Defendants foreign law claims which are not in responded with a motion for summary conflict with 46 U.S.C. §688(b) or gen- judgment on all claims, asserting that § 688(b) eral maritime law is hereby granted and of the Jones Act barred any action by Jackson, those claims are dismissed without absent a showing of no-available-remedy in the prejudice, at plaintiff’s sole cost, pur- courts of the country(ies) with jurisdiction. In suant to Louisiana Code of Civil February 1998, the state court granted the Procedure art. 123 (“foreign non motion to dismiss all United States and inter- conveniens”) subject only to plaintiff’s national maritime claims under § 688(b), but right to pursue such claims in an deferred, pending further argument, decision appropriate jurisdiction in Mexico on the motion to dismiss all other foreign law and/or Honduras. claims. Then, on July 8, 1998, the court granted the motion to dismiss all foreign law (Emphasis added.) Finally, in January 1999, claims as well, based on forum non con- the court clarified that § 688(b), and not forum veniens, stating: non conveniens, was the basis of the July 8 dismissal of all foreign law claims. IT IS HEREBY ORDERED, AD- JUDGED AND DECREED, that all Jackson appealed, arguing that the trial State law claims are hereby dismissed court (1) had improperly invoked forum non with prejudice, at plaintiff’s sole cost, as conveniens and (2) had erred in dismissing his set forth in this Court’s written reasons claims pursuant to § 688(b). In March 1999, for judgment dated February 2, 1998; the court of appeal affirmed the dismissal, rea- soning that § 688 barred both foreign and 2 United States law claims and that Jackson had history of the Jones Act that supported “not shown any evidence of a lack of remedy defendants’ argument that Congress intended in foreign venues.” Jackson v. North Bank for foreign law claims to be foreclosed as well, Towing Corp., 742 So. 2d 1, 7 (La. App. 3d and notwithstanding the fact § 688(b)(2) Cir. 1999). supported an inference that these claims should be available only once the plaintiff In the meantime, however, in January 1998, could establish that foreign fora would not be Jackson had sued in federal court. Jackson available to him. We reasoned that this again asserted negligence claims pursuant to subsection still could have meaning if we the Jones Act and, alternatively, the tort laws applied it only to United States maritime of Mexico and Honduras and the international claims brought by foreign seamen, because lex maritime, and unseaworthiness claims pur- “for a foreign seaman to bring an action under suant to the maritime law of the United States, any maritime law of the United States, he must the laws of Mexico and Honduras, and the in- first establish that foreign law remedies are not ternational lex maritime; additionally, he as- available to him in other fora.” Id. at 417. serted a claim for maintenance and cure under the general maritime law of the United States. Thus, we left it to Congress to amend the plain text of the statute if our result was Then, in October 1998, before the state trial contrary to its intent. We now grant court was affirmed, the defendants moved for defendants’ petition for rehearing, however, summary judgment in federal district court, because we need not have addressed the seeking dismissal of all Jackson’s claims admittedly difficult interpretation question that pursuant to § 688(b). That motion was was previously decided in Louisiana state granted and is the subject of the instant appeal. court. II. III. In our original opinion, we addressed the Although Jackson does not argue that the underlying substantive issue, decided by the claims that were the subject of the earlier state district court, whether 46 U.S.C. § 688(b) bars court lawsuit and dismissal were different from not only claims made pursuant to the Jones those he reasserted in federal district court, he Act or other maritime laws of the United contends that res judicata does not apply, be- States, but also foreign law claims. Because cause the state court dismissed “without the plain text of § 688(b)(1) bars only actions prejudice,” indicating that there should be no brought under the maritime laws of the United preclusive effect under Louisiana law. Al- States, and because it made no mention of ternatively, Jackson argues that we should foreign law claims, we held that the district consider this issue waived on appeal, because court had improperly dismissed Jackson’s defendants did not raise it as an affirmative claims brought under the laws of Mexico and defense in the district court, and that we Honduras and the international lex maritime. should not exercise our discretion to consider Jackson v. North Bank Towing Corp., 201 it sua sponte. F.3d 415, 418 (5th Cir. 2000) (per curiam). A. This was so notwithstanding the legislative Our first issue is whether the state court’s 3 dismissal “without prejudice” should have any or Honduran) courts. But notwithstanding the preclusive effect for future claims in Louisiana trial court’s designation of the dismissal as and federal court. Louisiana’s doctrine of res “without prejudice,” the “subject to” language judicata was substantially changed in 1990 by indicates that the dismissal would have new LA. R.S. 13:4231, which “provides a preclusive effects in all but the Mexican or broad application of res judicata; the purpose Honduran courts. is to foster judicial efficiency and protect the defendants from multiple lawsuits.” Fine v. First, this is the natural interpretation of the Regional Transit Auth., 676 So. 2d 1134, court’s language; it would be wholly 1136 (La. App. 4th Cir. 1996). “The statute unnecessary to state that Jackson could refile was amended in 1990 to make a substantive his claims in these foreign courts if the change in the law: a judgment bar to all causes dismissal was to have no preclusive effect. of actions arising out of the same occurrence.” Second, this reading is consistent with the Id. The statute’s broad principle of preclusion court’s finding that Jackson had not made a is subject to exceptions, however, and LA. showing that these foreign courts were R.S. 13:4232 provides: unavailable to him. Thus, it is logical that the trial court would leave open to him this option A judgment does not bar another specifically contemplated by the Jones Act. action by the plaintiff: Finally, the Louisiana courts have (1) When exceptional circumstances jus- interpreted the res judicata rule broadly, while tify relief from the res judicata effect of narrowly constricting § 4232’s exceptions. the judgment; For example, in Centanni v. Ford Motor Co., 636 So. 2d 1153, 1155 (La. App. 3d Cir.), writ (2) When the judgment dismissed the denied, 644 So. 2d 656 (La.1994), the court first action without prejudice; or noted that the exception for dismissals without prejudice “is designed to protect those drawn (3) When the judgment reserved the into error by an awkward factual or legal sce- right of the plaintiff to bring another nario, not by those who can allude to no action. circumstance to justify no action at all.” And under facts slightly different from those Jackson relies on the second of these present here, another Louisiana court of exceptions. But, because the Louisiana trial appeal held that a settlement and dismissal was court’s dismissal also provided that it would res judicata, even though the dismissal was be “subject only to plaintiff’s right to pursue without prejudice. See Medicus v. Scott, 744 such claims in an appropriate jurisdiction in So. 2d 192, 196 (La. App. 2d Cir. 1999). The Mexico and/or Honduras,” the third exception court reasoned that “[p]ublic policy favors is also relevant. compromises and the finality of settlements.” Id. Likewise, the broad application of res jud- Apparently, no Louisiana or Fifth Circuit icata serves the purpose of “foster[ing] judicial cases interpret a similarly-worded dismissal, as efficiency and protect[ing] the defendants from to whether it should operate as a preclusive multiple lawsuits.” Fine, 676 So. 2d at 1136. decision in state and federal (but not Mexican 4 The application of res judicata works no attention to the issue by technically undue hardship on Jackson. Instead, this is a correct and exact pleadings. We do so textbook case for claim preclusion, because sua sponte. both parties had their day in court on these very issues. Moreover, Jackson is not left (Internal citations omitted.) Thus, it follows without a forum, because the Mexican and that we can consider the issue when it Honduran courts are still available to him. As expressly was raised by the defendants, even a result, the Louisiana trial court’s dismissal where they failed to argue it in the district was “without prejudice” only with respect to court. Jackson’s right to bring foreign law claims in Mexican or Honduran courts. In contrast, the Second, other considerations counsel in fa- “subject only to” language indicates that the vor of our considering the res judicata issue. dismissal would be preclusive in state and The reason defendants did not raise this federal courts. argument in the district court is that Jackson’s state case was not yet final at that time. The B. state appeal was still pending when the federal The only remaining issue, then, is whether district court granted the motions for summary defendants have waived this argument by not judgment and dismissed. Consequently, raising it in federal district court. We conclude defendants cannot be blamed for addressing they have not. First, the defendants correctly the matter for the first time on appeal. point out that we can raise this issue sua sponte, even where neither party mentions it. Also, principles of comity counsel that we For example, in Russell v. SunAmerica Sec., should respect the final decisions of the Inc., 962 F.2d 1169, 1172 (5th Cir. 1992), we Louisiana courts, and, as in Russell, we are noted: presented with all the facts necessary to make the res judicata determination. Accordingly, Under Federal Rule of Civil Procedure we vacate our earlier o pinion and affirm the 8(c), the doctrine [of res judicata] must judgment dismissing Jackson’s claims. be affirmatively pled. Failure to so plead usually precludes the district court AFFIRMED. and appellate courts from considering the doctrine. We have held, however, that we may raise the issue of res judicata sua sponte “as a means to affirm the district court decision below.” . . . In the posture of this case, . . . where all of the relevant facts are contained in the record before us and all are uncontro- verted, we may not ignore their legal ef- fect, nor may we decline to consider the application of controlling rules of law to the dispositive facts, simply because nei- ther part y has seen fit to invite our 5