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494 S.W.3d 728
Tex.
2016
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Background

  • A Mexican-flagged vessel, the Seba’an, caught fire and sank off Mexico while ferrying Mexican workers; one died and others were injured. Most plaintiffs and all crew were Mexican residents; one plaintiff lives in Illinois.
  • Oceanografía S.A. de C.V. (Mexican) operated the vessel; Candies Mexican Investments (CMI, Mexican) owned it; Otto Candies LLC (Louisiana) controlled CMI; OSA International (Texas) was a later-formed marketing affiliate.
  • Plaintiffs (the decedent’s beneficiaries and 91 surviving workers) sued in Cameron County, Texas. Defendants moved to dismiss under Texas forum non conveniens (Tex. Civ. Prac. & Rem. Code §71.051) and Oceanografía filed a special appearance.
  • The trial court denied the special appearance and the motion to dismiss; Oceanografía appealed the jurisdictional ruling and lost; that appeal stayed trial commencement while discovery proceeded and limited depositions occurred.
  • After the appeal concluded, defendants sought reconsideration and mandamus; plaintiffs argued defendants’ delays and incurred litigation expenses made mandamus inappropriate. The trial court refused to dismiss for forum non conveniens; the Supreme Court of Texas granted mandamus relief and directed dismissal for forum non conveniens.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether defendants’ post-appeal delay bars mandamus Defendants slept on rights; delay prejudiced plaintiffs via litigation costs and lost trial prep Delay was reasonable given jurisdictional appeal and changing circumstances; not culpable Delay did not bar mandamus; defendants did not unduly delay and plaintiffs not prejudiced
Whether Mexico is an adequate alternative forum Mexico unsafe/corrupt; plaintiffs would lack adequate remedies or safety Defendants stipulated to Mexican jurisdiction; Mexican courts can provide remedies Mexico is an adequate forum; anecdotal/speculative corruption evidence insufficient
Whether dismissal would cause substantial injustice or undue prejudice Plaintiffs incurred expenses and would lose discovery and witnesses Key witnesses and evidence are in Mexico; defendants would be substantially prejudiced if tried in Texas Maintaining suit in Texas would work substantial injustice to defendants; factors favor dismissal
Whether dismissal would cause unreasonable duplication of litigation or leave defendants beyond Mexico’s jurisdiction Some U.S. nonparty witnesses exist and laws may differ Duplication can be managed; majority of witnesses and facts are Mexican-connected No unreasonable duplication; dismissal appropriate

Key Cases Cited

  • Rivercenter Associates v. Rivera, 858 S.W.2d 366 (Tex. 1993) (delay can bar relief when party unjustifiably sleeps on rights)
  • In re Int’l Profit Associates, Inc., 274 S.W.3d 672 (Tex. 2009) (delays not chargeable when not party’s fault)
  • In re E.I. du Pont de Nemours & Co., 92 S.W.3d 517 (Tex. 2002) (delay in seeking forum non conveniens relief did not preclude review when no prejudice shown)
  • In re Pirelli Tire, LLC, 247 S.W.3d 670 (Tex. 2007) (availability and adequacy of alternative forum shown by defendant’s stipulation)
  • In re Ensco Offshore Int’l Co., 311 S.W.3d 921 (Tex. 2010) (a forum is inadequate only when remedies are essentially nonexistent)
  • In re Bridgestone Americas Tire Operations, LLC, 459 S.W.3d 565 (Tex. 2015) (standards for assessing alternate forum adequacy and private/public interest balance)
  • Vinmar Trade Fin., Ltd. v. Util. Trailers de Mex., S.A. de C.V., 336 S.W.3d 664 (Tex. App.—Houston [1st Dist.] 2010) (courts reject generalized corruption claims absent concrete evidence)
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Case Details

Case Name: in Re Oceanografia, S.A. De C v. Otto Candies LLC, Candies Mexican Investments, and Osa International
Court Name: Texas Supreme Court
Date Published: Jul 1, 2016
Citations: 494 S.W.3d 728; 59 Tex. Sup. Ct. J. 1536; 2016 Tex. LEXIS 614; 14-0963
Docket Number: 14-0963
Court Abbreviation: Tex.
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