Seacor Holdings, Inc. v. Mason
819 F.3d 190
| 5th Cir. | 2016Background
- Duwayne Mason, a Seacor crew member on the M/V SEACOR VANGUARD, sued Seacor for personal injuries allegedly sustained during Deepwater Horizon response/cleanup operations; his claims were consolidated into the MDL.
- BP negotiated the Medical Benefits Settlement Agreement (B3 bundle) covering cleanup workers (Apr 20, 2010–Apr 16, 2012); the Agreement released claims against many parties, including Seacor; opt-out procedure required a signed written request by the class member.
- The district court preliminarily approved the Agreement, set an opt-out deadline (ultimately Nov 1, 2012), and later granted final approval; the Agreement became effective Feb 12, 2014.
- Before the opt-out deadline expired, Mason’s counsel moved to sever Mason’s claims from the MDL; the motion was not signed by Mason and counsel admits he did not discuss opting out with Mason before the deadline.
- After the deadline, the court denied severance, Mason attempted other post-deadline steps (contacting claims administrator, motion to reconsider, extension request), and the district court granted Seacor summary judgment based on the settlement release; Mason appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Mason’s pre-deadline motion to sever constituted an effective informal opt-out | Mason: the motion to sever (filed before the opt-out deadline) manifested an intent to opt out | Seacor: the motion was not a signed, unequivocal opt-out and counsel did not have Mason’s express consent; allowing it would invite gamesmanship in a massive MDL | Court: abuse-of-discretion standard; district did not abuse discretion—motion to sever was not a valid informal opt-out (no client signature, counsel admitted no discussion, not unequivocal) |
| Whether notice of the Medical Benefits Settlement was constitutionally sufficient to bind Mason | Mason: inadequate notice — counsel did not receive electronic filings or the class notice and Mason lacked actual notice of inclusion/release of Jones Act claims | Seacor: counsel had actual notice and had investigated the Agreement; notice to counsel is imputable to client; published/class notice procedures were upheld | Court: notice was sufficient—Mason’s counsel had actual notice (imputed to Mason), satisfying due process; collateral attack on class judgment barred |
Key Cases Cited
- In re Nissan Motor Corp. Antitrust Litig., 552 F.2d 1088 (5th Cir. 1977) (district courts possess broad discretion managing class actions)
- In re Four Seasons Sec. Litig., 493 F.2d 1288 (10th Cir. 1974) (reasonable indication of intent to opt out can suffice)
- In re Deepwater Horizon, 739 F.3d 790 (5th Cir. 2014) (district court approval of Medical Benefits Settlement and notice procedures affirmed)
- Juris v. Inamed Corp., 685 F.3d 1294 (11th Cir. 2012) (absent class members may collaterally challenge judgment for lack of adequate notice)
- Kemp v. Birmingham News Co., 608 F.2d 1049 (5th Cir. 1979) (class judgments generally bind members; due-process exception for inadequate notice)
- Link v. Wabash R.R. Co., 370 U.S. 626 (U.S. 1962) (notice to attorney is imputed to client)
- United Student Aid Funds, Inc. v. Espinosa, 559 U.S. 260 (U.S. 2010) (receipt of actual notice satisfies due process)
- Ayers v. Thompson, 358 F.3d 356 (5th Cir. 2004) (abuse-of-discretion review for denial of opt-out in Rule 23(b)(2) context)
