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Seacor Holdings, Inc. v. Mason
819 F.3d 190
| 5th Cir. | 2016
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Background

  • 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)
Read the full case

Case Details

Case Name: Seacor Holdings, Inc. v. Mason
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Apr 6, 2016
Citation: 819 F.3d 190
Docket Number: Nos. 15-30597, 15-30598
Court Abbreviation: 5th Cir.