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