In re:
No. 09-50109
United States Court of Appeals for the Fifth Circuit
December 16, 2009
Opinion 580 F.3d 308 (Aug. 21, 2009)
Before SMITH, STEWART, and SOUTHWICK, Circuit Judges.
FILED December 16, 2009 Charles R. Fulbruge III Clerk
Petition for Writ of Mandamus to the United States District Court for the Western District of Texas No. 2:03-CV-100
ON PETITION FOR REHEARING EN BANC
Before SMITH, STEWART, and SOUTHWICK, Circuit Judges.
PER CURIAM:
Treating the petition for rehearing en banc as a petition for panel rehearing, the petition for panel rehearing is DENIED. No member of the panel or judge in regular active service having requested that the court be polled on rehearing en banc (
The following opinion is substituted for the original opinion for the purpose of correcting minor factual errors and providing additional explanation. No further request for rehearing or rehearing en banc will be permitted.
* * * * * * * * * *
Before SMITH, STEWART, and SOUTHWICK, Circuit Judges.
JERRY E. SMITH, Circuit Judge:
Ford Motor Company (“Ford“) and Bridgestone/Firestone North American Tire LLC (“Firestone“)1 requested that the district court reconsider a pretrial forum non conveniens (“FNC“) motion that had been denied by a multidistrict litigation (“MDL“) court. The district court declined the request, so petitioners seek a writ of mandamus. We grant the writ.
I.
Plaintiffs are several Mexican citizens who were injured in Mexico in vehicle accidents involving Ford sport utility vehicles and Firestone tires. They sued Petitioners in Val Verde County, Texas, state court, and petitioners removed to federal court in the Western District of Texas (sometimes referred to as the “Western District“). The case was transferred, under
Before considering the plaintiffs’ case, the MDL court examined the merits of a FNC motion in Manez. Petitioners (who were also the defendants in Manez) filed the FNC motion, claiming that Mexico was an available—and more appropriate—forum. The defendants “stipulated that they [would] submit to personal jurisdiction in Mexico.” Id. at 932. The court stated, relying on Fifth Circuit precedent, that “[n]umerous cases have held Mexico to be an adequate forum for tort litigation involving American-made products, despite differences in Mexican and U.S. substantive and procedural law.” Id. (citing Gonzalez v. Chrysler Corp., 301 F.3d 377, 379-83 (5th Cir. 2002)). The MDL court granted the FNC motion in Manez. Id. at 939.
The Manez plaintiffs appealed to the Seventh Circuit Court of Appeals, as is proper under MDL procedure. See In re Bridgestone/Firestone, Inc., 420 F.3d 702 (7th Cir. 2005). On appeal, the court noted that the district court‘s FNC decision was “quite reasonable” and said that “this case looks like an easy candidate for a straightforward affirmance.” Id. at 704-05. The court then noted, however, that there was a “wrinkle” that prevented the easy affirmance: two ex parte Mexican court decisions that stated the case could not be tried in Mexican courts. Id. at 705. The court noted that it had “substantial misgivings about the plaintiffs’ actions” in submitting the orders but held that it did “not have an adequate record to assess whether the plaintiffs’ actions were taken in good faith.” Id. at 706. It remanded for the MDL district court “thoroughly [to] explore the circumstances” surrounding the Mexican decisions. Id.
On remand, the district court “conducted an evidentiary hearing to thoroughly explore the circumstances surrounding the [Mexican] courts’ decisions.” In re Bridgestone/Firestone, Inc. Tires Prods. Liab. Litig., 470 F. Supp. 2d 917, 919 (S.D. Ind. 2006). The court concluded that in seeking the Mexican dismissal order, “the attorneys for Plaintiffs acted with the clear purpose of having the case dismissed[] and, in seeking that result, manipulated the process to insure that the dismissal would be based on a particular reason that was calculated to improve the chances of the dismissal being sustained on appeal.” Id. at 920. Specifically, it noted e-mails between attorneys discussing how one Mexican judge “confirmed that she will throw out the suit according to what we planned.” Id. at 925. The MDL court dismissed the case on FNC grounds, and the decision was not appealed. The MDL court later sanctioned the Manez plaintiffs’ expert witness, Dr. Leonel Pereznieto, noting that he was “the apparent mastermind behind these frauds on the U.S. and Mexican courts.” In re Bridgestone/Firestone, Inc., Tires Prods. Liab. Litig., 470 F. Supp. 2d 931, 933 (S.D. Ind. 2006).3
After that dismissal, the MDL court asked all parties to show cause why their cases should not be dismissed. Plaintiffs did not initially respond, but another plaintiff did submit a reply. Petitioners responded to that reply and specifically asked that plaintiffs’ case be dismissed.
Plaintiffs then filed a response, insisting that Mexico was not an available forum. Filed with the response were several dismissal orders, obtained ex parte from Mexican courts, that allegedly claimed that foreign defendants cannot be sued in Mexico for tort cases, even if they submit to jurisdiction there.4
The MDL court agreed with plaintiffs that Mexico is not an available forum; it denied petitioners’ motion to dismiss. The court then ordered a conditional return of the case to the Western District.
Petitioners filed a motion for reconsideration, an alternative motion to certify the issue for interlocutory appeal to the Seventh Circuit, and an objection to the conditional remand order. Plaintiffs opposed all the motions; the MDL court did not rule on any of them before the MDL panel returned the case to the Western District. Six weeks after that occurred, the MDL court dismissed all of the motions as moot.
II.
The issue—whether we can grant mandamus on a district court‘s refusal to reconsider a pretrial MDL decision—is one of first impression in this circuit. We examine the question in two parts. First, we see whether the district court improperly denied the motion for reconsideration. If we decide that the district court did err, we next look to see whether we can properly grant mandamus in the procedural posture of Judge Hudspeth‘s denial of reconsideration.
A.
We begin by addressing how MDL transferor courts review the pretrial determinations of transferee MDL courts.5 We have not established a standard for review of this question, though we note that authorities are unanimous that some deference must be given to the transferee court‘s decisions.
[I]t would be improper to permit a transferor judge to overturn orders of a transferee judge even though error in the latter might result in reversal of the final judgment of the transferor court. If transferor judges were permitted to upset rulings of transferee judges, the result would be an undermining of the purpose and usefulness of transfer under [28 U.S.C. §] 1407 for coordinated or consolidated pretrial proceedings because those proceedings would then lack the finality (at the trial court level) requisite to the convenience of witnesses and parties and to efficient conduct of actions.6
That view is nothing short of a bright-line rule that a transferor court cannot overrule a transferee court. Several courts have cited this maxim.7
Other commentators and courts, however, have rejected a bright-line approach and instead have advocated only substantial deference to the transferee court.
Instead of promoting general deference, others have stated that the “law of the case” should apply where a transferor court is deciding whether to overturn the decision of a transferee court. “Although the transferor judge has the power to vacate or modify rulings made by the transferee judge, subject to comity and ‘law of the case’ considerations, doing so in the absence of a significant change of circumstances would frustrate the purposes of centralized pretrial proceedings.” MANUAL FOR COMPLEX LITIGATION § 20.133. Some courts have agreed with this viewpoint.8
The better view is the latter—that transferor courts should use the law of the case doctrine to determine whether to revisit a transferee court‘s decision. Moreover, a bright-line rule cannot be reconciled with our precedent in similar situations: “The revisitation by the court of [an] earlier order . . . was not error because...a court may correct its own errors. The fact that [the judge] was not correcting his own error, but that of another judge who initially had been in charge of the case, is no moment.” Fernandez-Montes v. Allied Pilots Ass‘n, 987 F.2d 278, 284 (5th Cir. 1993) (citation omitted).
We have also used the law of the case doctrine when examining a situation “in which one judge has rendered an order or judgment and the case is then transferred to another judge.” United States v. O‘Keefe, 128 F.3d 885, 892 (5th Cir. 1997) (citing Abshire v. Seacoast Prods., 668 F.2d 832, 838 (5th Cir. 1982)). “Under the law of the case doctrine and general principles of comity, a successor judge has the same discretion to reconsider an order as would the first judge, but should not overrule the earlier judge‘s order or judgment merely because the later judge might have decided matters differently.” Id. (citing Loumar, Inc. v. Smith, 698 F.2d 759, 762-63 (5th Cir. 1983)).
In reviewing transferee court decisions under the law of the case doctrine, transferor courts should rarely reverse, because any widespread overturning of transferee court decisions would frustrate the principle aims of the MDL process and lessen the system‘s effectiveness. The law of the case doctrine “requires attention to the special authority granted to the multidistrict transferee judge” and ensures that transferor courts respect the transferee court‘s decisions. Multi-Piece Rim, 653 F.2d at 678. That doctrine also has the virtue of allowing transferor courts to correct serious errors of the transferee court.
B.
The law of the case doctrine requires that courts not revisit the determinations of an earlier court unless “(i) the evidence on a subsequent trial was substantially different, (ii) controlling authority
Instead, we conclude that the transferee court‘s FNC decision is so clearly erroneous that it would work manifest injustice in this case. Because the transferor court should have recognized its serious error, its decision not to vacate its decision regarding FNC was also clearly erroneous.
We have held in numerous cases that Mexico is an available forum for tort suits against a defendant that is willing to submit to jurisdiction there. In Vasquez v. Bridgestone/Firestone, Inc., 325 F.3d 665, 671 (5th Cir. 2003), we examined a case in which the defendant had stipulated to the jurisdiction of Mexican courts.11 The district court found that the “stipulation... made Mexico an available forum.” Id. We agreed with that conclusion, noting that there was no dispute regarding whether Mexico was available as long as the defendant submitted to jurisdiction. Id.
Again, in Gonzalez v. Chrysler Corp., 301 F.3d 377, 380 n.3 (5th Cir. 2002), we held that “[i]t is undisputed that Mexico is an amenable forum because the defendants have agreed to submit to the jurisdiction of the Mexican courts.” Both Vasquez and Gonzalez involved torts against foreign defendants—the same kind of suit that the instant plaintiffs allege is not available in Mexico even where a defendant submits to jurisdiction.
Finally, in DTEX, LLC v. BBVA Bancomer, S.A., 508 F.3d 785, 804 (5th Cir. 2007), we agreed with the district court‘s finding that “Mexico is an adequate and available forum.” Other district courts have also concluded that Mexi-co is an available forum in such cases.12 Similarly, a “defendant‘s submission to the jurisdiction of an alternative forum renders that forum available for the purposes of [FNC] analysis.” Veba-Chemie A.G. v. M/V GETAFIX, 711 F.2d 1243, 1245 & n.3 (5th Cir. 1983).13
District courts do not have to start from scratch each time they consider a forum‘s availability; if we have found a forum to be available in earlier cases, district courts can rely on our precedent in similar cases to hold that it is still available. Unless plaintiffs can show evidence distinguishing this case from our precedent, an order from a Mexican court dismissing this exact case for lack of jurisdiction, or reliable evidence of some subsequent change in Mexican law that calls our earlier determinations into serious question, plaintiffs cannot prevail in their FNC defense. Because no such evidence was presented, the transferee and transferor courts clearly erred in refusing to grant the FNC dismissal.15
Along with failing to consider our earlier binding opinions, the MDL court erred when it relied solely on the plaintiffs’ ex parte orders from Mexican courts without any expert testimony. At oral argument, plaintiffs’ counsel conceded that they had submitted only two experts to the MDL court: Leonel Pereznieto and Mexican Judge Garcia Estrada. Counsel also admitted that the MDL court struck both Pereznieto‘s and Estrada‘s testimony. Thus, plaintiffs had no experts on whom to rely. Instead, they submitted only ex parte orders allegedly showing Mexico is not an available forum. The MDL court relied on those orders in denying petitioners’ FNC motion.
The MDL court erred twice in using the ex parte orders to reach its decision. First, the court should have required expert testimony to analyze the ex parte
Finally, but importantly, we note that petitioners were and are willing to submit to a return jurisdiction clause. As we noted for the plaintiff in Vasquez, “[t]here is no guarantee that [Mexico] will remain an available forum or that defendants will submit to its jurisdiction. A return jurisdiction clause remedies this concern by permitting parties to return to the dismissing court should the lawsuit become impossible in the foreign forum.” Vasquez, 325 F.3d at 675. Petitioners stated that they will accept a return jurisdiction clause, and this weighs heavily in favor of finding that the MDL court erred.
The evidence put before the MDL court was rather equivocal on whether Mexico was an available forum; both sides submitted experts,17 code provisions, court decisions, and orders showing Mexico to be either an available or unavailable forum. With such uncertainty, a return-jurisdiction clause must weigh heavily in favor of granting the FNC motion. That clause will allow both sides—rather than just plaintiffs—to go before a judge in Mexico and find out whether this specific suit can be tried there. If Mexico will not hear the case, plaintiffs can re-file in Texas and proceed to trial. In the face of evidence and caselaw showing Mexico to be an available forum, it was clear error for the MDL court to reject this option.
For all of these reasons, under the law of the case doctrine, the transferor court should have reconsidered the MDL court‘s FNC decision for manifest injustice. In light of the binding caselaw, the lack of expert evidence, and the willingness of the petitioners to submit to a return jurisdiction clause, Mexico was the proper forum. Having found that there was manifest injustice and that the transferor court clearly erred in not reconsidering the MDL court‘s FNC decision, we now must see whether this case meets our criteria for granting mandamus relief.
III.
Mandamus is an appropriate remedy for “exceptional circumstances amounting to a judicial usurpation of power or a clear abuse of discretion.” Cheney v. U.S. Dist. Ct., 542 U.S. 367, 380 (2004) (citations and internal quotation marks omitted); see In re Volkswagen of Am., Inc., 545 F.3d 304, 309 (5th Cir. 2008) (en banc), cert. denied, 129 S. Ct. 1336 (2009). Plainly, a transferor court‘s refusal to reexamine a transferee
In Volkswagen, we noted that an abuse of discretion occurs where a court “(1) relies on clearly erroneous factual findings; (2) relies on erroneous conclusions of law; or (3) misapplies the law to the facts.” Id. at 310 (citation omitted). “On mandamus review, we review for these types of errors, but we only will grant mandamus relief when such errors produce a patently erroneous result.” Id. Showing that there was a clear abuse of discretion, however, is not enough: The Supreme Court has established three requirements that must be met before a writ may issue: (1) the party seeking issuance of the writ must have no other adequate means to attain the relief he desires—a condition designed to ensure that the writ will not be used as a substitute for the regular appeals process; (2) the petitioner must satisfy the burden of showing that [his] right to issuance of the writ is clear and indisputable; and (3) even if the first two prerequisites have been met, the issuing court, in the exercise of its discretion, must be satisfied that the writ is appropriate under the circumstances. Id. at 311. (citation, internal quotation marks and brackets omitted). “These hurdles, however demanding, are not insuperable.” Id. (citation omitted).
For the reasons we have explained, there was a clear abuse of discretion, because the transferor court refused to alter a transferee court‘s decision that relied on an erroneous conclusion of law. Petitioners submitted to jurisdiction in Mexico, and our caselaw plainly holds that Mexico is an available forum. It was patently erroneous for the MDL court to ignore this binding precedent and equally erroneous for the transferor court to accept that decision.
We additionally find comfort in granting mandamus in light of the fact that this is an extraordinary case. Snippets of the record that counsel that result include, in no particular order of significance, the fact that plaintiffs’ expert on Mexican law was the same person who had been employed by the Manez plaintiffs and who had been sanctioned by the MDL court for bad faith and fraudulent conduct. Moreover, to show that Mexico was unavailable, plaintiffs submitted ex parte dismissal orders that were suspiciously similar to orders proffered in Manez, in which the MDL court had declared that those plaintiffs had deliberately and fraudulently obtained the dismissals for the express purpose of defeating an FNC motion. Then, on the same day it denied the FNC motion, the MDL court suggested to the JPML that the cases be remanded immediately to the district courts a quo. As a result of that remand, the MDL court never ruled on petitioners’ motion to reconsider, but just dismissed the motion as moot long after the matter had been remanded to the transferor court and after the MDL court no longer had jurisdiction.18 The transferor court never considered
Petitioners also lack any other adequate means to attain relief. They attempted to have the MDL court‘s decision certified for appeal to the Seventh Circuit and asked for reconsideration by both the MDL court and the transferor court. All of these attempts were rejected.20 We also held en banc in Volkswagen that, in these FNC cases, mandamus is appropriate on this prong because, if the issue is argued only on any eventual direct appeal, there is no way to show that the outcome of the case would have been different, and any inconvenience to the parties “will already have been done by the time the case is tried and appealed.” Id. at 318-19. “[T]he writ is not here used as a substitute for an appeal, as an appeal will provide no remedy for a patently erroneous failure to transfer venue.” Id. at 319. We were straightforward in Volkswagen that these FNC cases are in the “no other means to attain relief” category. Id. at 318.
Additionally, the petitioners have a clear and indisputable right to the writ. That follows from our finding of a clear abuse of discretion: “If the district court clearly abused its discretion . . . in denying [the] motion, then [the petitioners‘] right to issuance of the writ is necessarily clear and indisputable.” Id. at 311. There was a clear abuse of discretion, so petitioners are entitled to a writ of mandamus.
Finally, we must be satisfied that the writ is appropriate in this circumstance. A writ of mandamus is “supervisory in nature and [is] particularly appropriate when the issues also have an importance beyond the immediate case.” Id. at 319 (citation omitted). There are at least two other similar cases pending in the MDL court that were initially filed in Texas. In addition, other suits may be filed in our district courts involving the question whether Mexico is an available forum in our circumstances. This issue is not specific to this case but is relevant for a variety of similar cases that have arisen or
For all of the above reasons, the district court erred in not overruling the MDL court‘s FNC decision, and that error is serious enough to require manda-mus as the appropriate relief. We direct the district court to render a judgment of dismissal without prejudice, because Mexico is an available and appropriate forum. Plaintiffs can re-file this suit and proceed to trial in the Western District of Texas on a sufficient showing that the Mexican courts are unavailable for this litigation despite petitioners’ submission to jurisdiction there. Plaintiffs must litigate in good faith in Mexican courts, and evidence showing otherwise may justify sanctions against plaintiffs and their counsel.
The petition for writ of mandamus is GRANTED.
