183 A.3d 704
Del.2018Background
- Plaintiffs were workers on Central/South American banana plantations who sued U.S. companies over DBCP exposure as part of a 1993 putative multi-country class (Carcamo/Delgado).
- The consolidated federal action in S.D. Tex. was dismissed for forum non conveniens in July 1995 with a "return jurisdiction" clause saying the court would resume jurisdiction "as if the case had never been dismissed" if foreign fora failed; the order also denied “all pending motions” as moot. A final judgment followed in October 1995.
- Appeals over jurisdiction continued; the Fifth Circuit affirmed jurisdiction in 2000 and certiorari was denied; later U.S. Supreme Court decision in Dole v. Patrickson undermined the FSIA-based removal, and the Texas court remanded matters to state court for further proceedings.
- Plaintiffs sought reinstatement under the return clause; Texas state courts eventually denied class certification on June 3, 2010.
- Multiple follow-on suits were later filed in Delaware; the Delaware Supreme Court was asked (certified) whether class-action tolling ended with the 1995 federal dismissal/order or later, and if later, when it ended.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether class-action tolling ended when the S.D. Tex. court dismissed for forum non conveniens and denied "all pending motions" as moot in July/Oct 1995 | Tolling continues until a sister court clearly and unambiguously denies class status; 1995 orders did not specifically decide class certification, and return clause preserved the class posture | Tolling ends when it is no longer objectively reasonable for absent class members to rely on the putative class — here by, at the latest, the 1995 final judgment | Held: No — tolling did not end in 1995; conditional dismissal and return clause meant class status was not finally denied then. |
| If not 1995, when did tolling end? | Tolling ended when Texas state court denied class certification on June 3, 2010 | (Defendants) tolling already ended earlier; plaintiffs’ 2010 date too late | Held: Tolling ended June 3, 2010, when Texas court plainly denied class certification. |
| Effect of the return-jurisdiction clause | Return clause preserves the action "as if never dismissed," allowing resumption of the putative class and so preserves tolling | Clause was limited or speculative and did not revive class claims for unnamed class members | Held: Clause showed the 1995 dismissal was conditional and permitted resumption of the putative class; it did not finally terminate class status. |
| Standard to govern cross-jurisdictional class tolling end | Require a clear, specific, unambiguous order denying class status to end tolling (promotes certainty; avoids placeholder suits) | Favor an objective-reasonableness rule—tolling ends when absent members can no longer reasonably rely on the putative class | Held: Adopt Delaware rule: tolling ends only when a sister court has clearly, unambiguously, and finally denied class status. |
Key Cases Cited
- American Pipe & Constr. Co. v. Utah, 414 U.S. 538 (U.S. 1974) (established class-action tolling principles)
- Dow Chemical Co. v. Blanco, 67 A.3d 392 (Del. 2013) (Delaware recognizes cross-jurisdictional tolling)
- Reid v. Spazio, 970 A.2d 176 (Del. 2009) (tolling during pendency of discretionary appeal under Delaware law)
- Delgado v. Shell Oil Co., 890 F. Supp. 1324 (S.D. Tex. 1995) (forum non conveniens dismissal with return-jurisdiction clause)
- Dole Food Co. v. Patrickson, 538 U.S. 468 (U.S. 2003) (limits FSIA-based federal jurisdiction over foreign-owned corporations)