De Aguilar v. Boeing Co.

              IN THE UNITED STATES COURT OF APPEALS

                        FOR THE FIFTH CIRCUIT


                        _____________________

                             No. 92-5099
                        _____________________



ALMA TORREBLANCA DE AGUILAR, ET AL.,

                                                Plaintiffs-Appellants,

                               versus

THE BOEING COMPANY, ET AL.,

                                                Defendants-Appellees.

_________________________________________________________________

      Appeal from the United States District Court for the
                    Eastern District of Texas
_________________________________________________________________
                       (December 22, 1993)

Before SNEED,* REYNALDO G. GARZA, and JOLLY, Circuit Judges.

E. GRADY JOLLY, Circuit Judge:


     The plaintiffs in this case are doggedly determined to find

some court in the United States--any court--in which to try their

foreign-based claims.   Once again they fail.     This suit is but the

latest in a succession of wrongful death litigation arising out of

the crash of a Mexicana Airlines plane in Mexico.        In the first

action, the plaintiffs filed suit in state court in Bexar County,

Texas; the defendants removed to federal district court for the

Western District of Texas; and the district court dismissed the


     *
      Senior Circuit Judge of the Ninth Circuit, sitting by
designation.
action on federal forum non conveniens grounds stating that Mexico

was the appropriate forum.   Rodriguez Diaz v. Mexicana De Avion,

S.A., No. SA-86-CA-1065, 1987 U.S. Dist. LEXIS 13399 (W.D. Tex.

1987), aff'd mem., 843 F.2d 498 (5th Cir.), cert. denied, 488 U.S.

826, 109 S.Ct. 76, 102 L.Ed.2d 53 (1988).    In the second action,

the parties repeated the same pattern in Illinois resulting in

dismissal on federal forum non conveniens law.     In the most recent

action before the instant case,1 the plaintiffs filed suit in

Washington state court, which dismissed the action on state forum

non conveniens grounds.   Wolf v. Boeing Co., 810 P.2d 943 (Wash.

Ct. App.), review denied, 818 P.2d 1098 (1991).2    After the Supreme

Court of Texas ruled that the doctrine of forum non conveniens was

no longer recognized under Texas law for wrongful death actions,

Dow Chemical Co. v. Alfaro, 786 S.W.2d 674 (Tex. 1990), cert.

denied, 498 U.S. 1024, 111 S.Ct. 671, 112 L.Ed.2d 663 (1991), the

plaintiffs filed this suit in state court in Jefferson County,

Texas, without pleading a specific amount of damages.      After the

     1
      The relatives and personal representatives of the estates
of those who perished in the Mexicana Airlines plane crash also
filed suit in California state court against Boeing, Mexicana,
and others while the Illinois action was pending. After the
defendants removed to federal court in California, the plaintiffs
voluntarily abandoned their action against Boeing and the rest of
the defendants, except Mexicana. The Ninth Circuit eventually
held that Mexicana, as a foreign sovereign, was not subject to
suit in the United States. Compania Mexicana de Aviacion, S.A.
v. United States Dist. Court, 859 F.2d 1354 (9th Cir. 1988).
     2
      Claims are currently pending against Mexicana Airlines in
Civil District Court in Mexico by survivors of the victims of the
plane crash.




                               -2-
defendants     removed     to   federal     district        court,   the   plaintiffs

argued, inter alia, that: (1) the district court should remand to

Texas court because the amount in controversy per decedent was less

than     the   minimum     required        for     diversity     jurisdiction;     or

alternatively, (2) the district court should apply Texas law

instead of federal law in resolving the forum non conveniens issue.

The district court denied the motion to remand for lack of subject

matter jurisdiction and dismissed the case based on federal forum

non conveniens law.        Finding no error, we affirm.

                                            I

       On March 31, 1986, a Mexicana Airlines plane manufactured by

the Boeing Company ("Boeing") crashed in Mexico killing all aboard.

The personal representatives of the estates of those killed and the

relatives of the victims filed this wrongful death action in Texas

court.     The plaintiffs did not specify the amount of damages in

their complaint because Texas Rule of Civil Procedure 47(b) forbids

such specificity.          Boeing removed the case to federal district

court pursuant to 28 U.S.C. § 1441.               The plaintiffs moved to remand

arguing that the amount in controversy did not exceed $50,000 per

plaintiff      thus    depriving      the        district    court    of    diversity

jurisdiction.         In   support    of    their     position,      the   plaintiffs

submitted the affidavits of their attorneys stating that the

damages did not exceed $49,000 per plaintiff. Boeing and the other

defendants contested the motion by proffering evidence that the




                                           -3-
plaintiffs in the instant case had claimed damages of up to

$5,000,000 each in the previous actions filed in other courts.

     The district court denied the motion to remand for lack of

subject matter jurisdiction because the court found the amount in

controversy at the time of removal exceeded $50,000.                The court

further held that the attorney affidavits constituted subsequent

events that could not divest the court of jurisdiction.                  It then

dismissed    the   case   on    two   alternative     grounds:     First,    the

preclusive effect of the prior adjudications of the plaintiffs'

forum non conveniens issue; and second, even if not bound by the

other judgments, the federal law of forum non conveniens required

dismissal in this case.        The plaintiffs appeal this ruling.

                                      II

                                       A

     The    plaintiffs    contend     that   the    district     court    lacked

diversity jurisdiction and, thus, should have remanded the case to

Texas state court, because the amount in controversy did not exceed

$50,000, as shown by their attorney's affidavits.              Plaintiffs rely

on Asociacion Nacional De Pescadores A Pequena Escala O Artesanales

De Colombia (ANPAC) v. Dow Quimica De Columbia S.A., 988 F.2d 559,

566 (5th Cir. 1993), for the proposition that their attorney's

affidavits are dispositive of the jurisdictional question.                   The

plaintiffs' argument fails because it overestimates the reach of

Dow Quimica.

     In Dow Quimica, we stated:




                                      -4-
     [A]t least where the following circumstances are present,
     [the removing party's burden to establish jurisdiction]
     has not been met: (1) the complaint did not specify an
     amount of damages, and it was not otherwise facially
     apparent that the damages sought or incurred were likely
     above $50,000; (2) the defendants offered only a
     conclusory statement in their notice of removal that was
     not based on direct knowledge about the claims; and (3)
     the plaintiffs timely contested removal with a sworn,
     unrebutted affidavit indicating that the requisite amount
     in controversy was not present.

Dow Quimica, 988 F.2d at 566 (emphasis added).

First, although the complaint in the instant case did not specify

an amount of damages, it is facially apparent that damages sought

by the plaintiffs here exceed $50,000.          Unlike Dow Quimica, id. at

565, which involved damages for the skin rashes and lost income of

small-scale Columbian fishermen, the instant case involves, inter

alia, a claim for wrongful death.        It is facially apparent that the

claims   in    this   case--claims     for    wrongful      death,    terror   in

anticipation     of   death,   loss     of    companionship,       and   funeral

expenses--did exceed $50,000 at the time of removal.                  Thus, the

necessary predicate for consideration of the attorney affidavits

under Dow Quimica is absent in this case and, consequently, the

district court properly disregarded the affidavits.

     Alterntively, even if the amount in controversy were not

facially      apparent,   plaintiffs'       reliance   on    Dow     Quimica   is

nevertheless misplaced because the attorney affidavits that the

plaintiffs offered in support of their motion to remand were

rebutted by the defendant.        Clearly, the affidavit of a lawyer

without personal knowledge of the extent of each of the plaintiffs'




                                      -5-
claims    sheds   little,    if    any,    light    on    the   actual   amount    in

controversy.3     In Dow Quimica, 988 F.2d at 565-66, however, this

court    had   before   it   only       the     unrebutted      affidavit   of    the

plaintiffs' attorneys and the defendant's conclusory statement in

their notice of removal, i.e., a mere scintilla of evidence on each

side of the amount in controversy issue.                  Left with nothing but

minimal offsetting evidence, the Dow Quimica Court, id. at 566,

held that the removing parties, the defendants, had not met their

burden to establish that the amount in controversy exceeded $50,000

and remanded to state court.            In contrast, the defendants in the

instant case offered testimonial evidence and published precedent

showing that damages in the instant case and in similar cases would

probably exceed $50,000 per plaintiff.                   Further, the defendants

offered evidence that the plaintiffs in this action claimed damages

of up to $5,000,000 in other courts for the same injuries.                        The

inconsistency     between    the    plaintiffs'      prior      claims   and   their

current    claims--at   least      as     represented      by    the   post-removal

attorney affidavits--may indicate that the plaintiffs, rather than

trying to clarify the actual amount in controversy, engaged in

artful post-removal pleading in order to avoid the consequences of

     3
      Further, St. Paul Mercury Indemnity Co. v. Red Cab Co., 303
U.S. 283, 292-93, 58 S.Ct. 586, 592, 82 L.Ed. 845 (1938) struck
the tactic of using stipulations or affidavits to reduce the
amount of the claims below the jurisdictional requisite after
removal. See Reisman v. New Hampshire Fire Ins. Co., 312 F.2d
17, 19 (5th Cir. 1963) ("The decisions under 28 U.S.C.A. § 1447
make it clear that once jurisdiction has attached, it cannot be
subsequently divested").




                                          -6-
federal forum non conveniens law. Diversity jurisdiction, however,

derives from    Article    III    of   the   Constitution,   is    defined     by

Congress, and is not subject to delimitation by such imaginative

post-hoc tactics of litigants.

                                        B

     Even if our precedent in Dow Quimica does not require our

reversal of the district court, the plaintiffs nevertheless contend

that the district court's denial of their motion to remand must be

reversed because the removing parties have not met their burden of

proving to a legal certainty that the amount in controversy exceeds

$50,000. When the plaintiff's complaint does not allege a specific

amount   of   damages,    the    removing    defendant   must     prove   by   a

preponderance of the evidence that the amount in controversy

exceeds $50,000.    See Gaus v. Miles, Inc., 980 F.2d 564, 567 (9th

Cir. 1992); Garza v. Bettcher Indus., Inc., 752 F.Supp. 753, 763

(E.D. Mich 1990).    Here, the defendants easily met this burden by

showing that many of the same plaintiffs in this action pled

damages of up to $5,000,000 in other forums for the same injuries.

                                        C

     The plaintiffs also contend that the district court erred in

applying federal law to resolve the forum non conveniens issue

instead of Texas law.      We have previously held:

     [A] federal court sitting in a diversity action is
     required to apply the federal law of forum non conveniens
     when addressing motions to dismiss a plaintiff's case to
     a foreign forum.




                                       -7-
In re Air Crash Near New Orleans, La. on July 9, 1982, 821 F.2d
1147, 1159 (5th Cir. 1987), vacated on other grounds sub nom., Pan
American World Airways, Inc. v. Lopez, 490 U.S. 1032, 109 S.Ct.
1928, 104 L.Ed.2d 400, reinstated save as to damages under original
nom., 883 F.2d 17 (5th Cir. 1989).

We recently confirmed this view in Villar v. Crowley Maritime

Corp., 990 F.2d 1489, 1498 (5th Cir. 1993).       Accordingly, the

district court did not err in applying the federal law of forum non

conveniens.

                                D

     The plaintiffs proffer several other arguments on appeal; each

is without merit.   The plaintiffs argue that the district court

should have remanded to state court once it had decided that it

would decline jurisdiction under forum non conveniens.        This

argument is without merit because the power to invoke forum non

conveniens presupposes the existence of federal jurisdiction and

thus does not require remand to an equally inconvenient forum.

Nolan v. Boeing Co., 919 F.2d 1058, 1070 (5th Cir. 1990).    Next,

the plaintiffs contend that the district court erred in holding

that issue preclusion required dismissal because the prior courts

did not address whether Texas forum non conveniens law should apply

to the case.   This contention fails both because the plaintiffs

have made no showing of "objective facts that materially alter the

considerations underlying the previous resolutions," and because,

in any event, federal forum non conveniens law applies in federal

district court.   Id. (quoting Exxon Corp. v. Chick Kam Choo, 817

F.2d 307, 314 (5th Cir. 1987), rev'd on other grounds, 486 U.S.




                               -8-
140, 108 S.Ct. 1684, 100 L.Ed.2d 127 (1988)).          Finally, the

plaintiffs contend that the district court misapplied the federal

forum non conveniens factors of Gulf Oil Corp. v. Gilbert, 330 U.S.

501, 67 S.Ct. 839, 91 L.Ed. 1055 (1947).   We hold that the district

court's agreement with the other courts that have ruled that Mexico

is a more convenient forum was not an abuse of discretion.    Piper

Aircraft Co. v. Reyno, 454 U.S. 235, 257, 102 S.Ct. 252, 266, 70

L.Ed.2d 419 (1981).

                               III

     For the foregoing reasons, the district court's judgment

denying the plaintiffs' motion to remand and dismissing the action

is

                                                   A F F I R M E D.




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