Van HARVILLE, et al., Plaintiffs-Appellants,
v.
JOHNS-MANVILLE PRODUCTS CORP., et al., Defendants-Appellees.
JOHNS-MANVILLE SALES CORP., et al., Third Party-Plaintiffs-Appellants,
v.
YARWAY CORPORATION, et al., Third Party-Defendants-Appellees.
Nos. 82-7167, 82-7197.
United States Court of Appeals,
Eleventh Circuit.
May 7, 1984.
Roy C. Williams, Pascagoula, Miss., Michael J. McElhaney, Jr., Lively M. Wilson, Louisville, Ky., Donald F. Pierce, Mobile, Ala., for Johns-Manville.
Jasper P. Juliano, Jack J. Hall., Birmingham, Ala., for Yarway Corp.
Horace Moon, Jr., Mobile, Ala., for Hopeman Brothers.
Christopher G. Hume, III, Joe H. Little, Jr., Mobile, Ala., for J.P. Stevens & Co., Inc.
J. Jerry Langford, Clifford K. Bailey, III, Jackson, Miss., for Amatex Corp.
James A. Philips, Mobile, Ala., for John Crane Houdaville, Inc.
Robert N. Kelly, Washington, D.C., for United States.
William L. Lee, III, Alan C. Livingston, Dothan, Ala., for Darcoid Co.
Timothy P. McMahon, Mobile, Ala., for Garlock, Inc.
Robert A. Huffaker, Montgomery, Ala., for Sepco-Corp.
E. Elliott Barker, Mobile, Ala., John M. Toriello, Stephen K. Carr, New York City, for Owens Illinois, Inc.
Robert Smith, Mobile, Ala., for Nicolet, Inc.
Peter V. Sintz and Mary Beth Mantiply, Mobile, Ala., for Celotex Corp.
Larry W. Harper, Birmingham, Ala., for Pittsburg Corning.
Thomas W. Tardy, Jackson, Miss., Beth McFadden Rouse, Mobile, Ala., for Combustion Engineering.
John N. Leach, Jr., E.L. McCafferty, Mobile, Ala., for Eagle Picher.
W. Michael Atchison, Birmingham, Ala., for Raybestos-Manhattan (Raymark Industries, Inc.).
Wes Pipes, Walter M. Cook, Jr., Mobile, Ala., for Forty-Eight Insulations, Inc.
James H. Crosby, Vincent A. Noletto, Jr., Mobile, Ala., for Owens Corning Fiberglass Corp.
Frank Grey Reddit, Jr., Mobile, Ala., for H.K. Porter Co.
Richard F. Pate, Pate & Peters, Mobile, Ala., for plaintiffs-appellants.
Appeals from the United States District Court for the Southern District of Alabama.
Before KRAVITCH, JOHNSON and HATCHETT, Circuit Judges.
JOHNSON, Circuit Judge:
This case involves the question whether the maritime jurisdiction of the federal courts encompasses damage claims by land-based ship repair workers against manufacturers and distributors of asbestos products for injuries allegedly induced by exposure to air-borne asbestos fibres. We hold that, because the plaintiffs' claims have insufficient nexus to the traditional concerns of maritime law and because exercise of federal maritime jurisdiction would not advance the policies behind a uniform federal law of admiralty, maritime jurisdiction does not extend to these claims.
I. THE FACTUAL BACKGROUND
This is one of thousands of suits that workers throughout the nation in a variety of occupations have filed seeking compensation for asbestos-related injuries. The plaintiffs are all past or present employees of the Alabama Dry Dock and Shipbuilding Company ("ADDSCO") who worked at ADDSCO's Mobile, Alabama, shipyard. Most of them were employed there for between twenty and forty years. The plaintiffs worked as insulators, pipe-fitters, welders, boilermakers, machinists, foremen, and general laborers in the construction and repair of vessels. Since World War II, the shipyard and most of the plaintiffs have been employed in ship repair and refitting rather than in new vessel construction. The plaintiffs' duties included either tearing out and replacing asbestos insulation or working in a place where insulation was being replaced. During such work they received heavy exposure to, and breathed in large amounts of, air-borne asbestos dust.
The plaintiffs allege that they now suffer a variety of pulmonary diseases as a result of their exposure to asbestos. The former Fifth Circuit described the pathology of one such condition in Borel v. Fibreboard Paper Products Corp.,
The medical testimony adduced at trial indicates that inhaling asbestos dust in industrial conditions, even with relatively light exposure, can produce the disease of asbestosis. The disease is difficult to diagnose in its early stages because there is a long latent period between initial exposure and apparent effect. This latent period may vary according to individual idiosyncrasy, duration and intensity of exposure, and the type of asbestos used. In some cases, the disease may manifest itself in less than ten years after initial exposure. In general, however, it does not manifest itself until ten to twenty-five or more years after initial exposure. This latent period is explained by the fact that asbestos fibers, once inhaled, remain in place in the lung, causing a tissue reaction that is slowly progressive and apparently irreversible. Even if no additional asbestos fibers are inhaled, tissue changes may continue undetected for decades. By the time the disease is diagnosable, a considerable period of time has elapsed since the date of the injurious exposure. Furthermore, the effect of the disease may be cumulative since each exposure to asbestos dust can result in additional tissue changes. A worker's present condition is the biological product of many years of exposure to asbestos dust, with both past and recent exposures contributing to the overall effect. All of these factors combine to make it impossible, as a practical matter, to determine which exposure or exposures to asbestos dust caused the disease.
(footnote omitted). Asbestos-related disease is debilitating and often fatal.
The plaintiffs seek compensation from a number of manufacturers and distributors of asbestos products. They allege that the defendants knew, or should have known, of the dangers associated with exposure to their products. The plaintiffs further allege that the defendants failed to warn them or their employer of the risks of asbestos exposure or of safety measures that might have been taken to minimize those risks. The plaintiffs claim that the defendants' acts and omissions directly caused their injuries.
II. THE PROCEEDINGS BELOW
Harville and other named plaintiffs filed the complaint that began this litigation on November 22, 1978. The original complaint based jurisdiction on diversity, 28 U.S.C.A. Sec. 1332, and asserted only state law causes of action. The magistrate to whom the case was referred ordered the plaintiffs to file written notice of which, if any, of their claims "are governed by the substantive law of admiralty." The plaintiffs complied by filing a statement contending that "all of their claims are governed by the substantive law of admiralty." At the same time, they filed an objection to the magistrate's order, which made clear that their statement of applicable law should not be construed as an election of admiralty procedures under Fed.R.Civ.P. 9(h). Subsequently, the plaintiffs amended their complaint to assert only tort-based theories of recovery and added several claims for relief based explicitly on federal maritime law.
Because the determination of a number of pending motions required prior resolution of the choice of law issue, the magistrate scheduled a hearing under Fed.R.Civ.P. 16 at which the plaintiffs would be required to produce evidence in support of a "prima facie" case for the applicability of admiralty law. The magistrate advised the parties that he intended at the end of this hearing to render a finding of whether the plaintiffs had made out a case for the application of admiralty law. If this finding was adverse to the defendants, they would be permitted to rebut the prima facie case. On March 13, 1981, after conducting the Rule 16 proceedings, the magistrate rendered a "Determination ... of Applicable Law." The magistrate analyzed the choice of law question under the two-part jurisdictional test of Executive Jet Aviation, Inc. v. City of Cleveland,
Consistent with his conclusion that the substantive law of Alabama, rather than federal maritime law, applied to the plaintiffs' claims, the magistrate issued a recommendation that, because Alabama law does not allow contribution among joint tort-feasors, Consolidated Pipe & Supply Co. v. Stockham Valves & Fittings, Inc.,
III. FRAMING THE ISSUE
The issue here is properly stated as one of choice of law rather than of jurisdiction. The defendants have properly invoked the diversity jurisdiction of the federal courts. 28 U.S.C.A. Sec. 1332. They nevertheless ask this Court to apply the substantive federal law of admiralty, rather than the law of Alabama, to their claims.1 The plaintiffs have refrained from asserting admiralty jurisdiction, 28 U.S.C.A. Sec. 1333(1), apparently in order to obtain a jury trial, which, although not generally available in admiralty, can be had if there is also a basis for diversity jurisdiction. Fitzgerald v. United States Lines Co.,
The answer to the question whether admiralty jurisdiction could apply is important to the choice of law issue, however. "[W]hile jurisdiction to decide the litigation may be concurrent with state courts or invoked in a federal court on some independent basis," if the dispute is also within the scope of admiralty jurisdiction, "maritime law determines the rights of the parties." Continental Casualty Co. v. Canadian Universal Insurance Co.,
IV. ADMIRALTY JURISDICTION
A. The Analytical Framework
Article II, Section 2, of the United States Constitution extends the judicial power of the United States "to all Cases of admiralty and maritime Jurisdiction." Congress has effectuated the constitutional grant in 28 U.S.C.A. Sec. 1333(a), which vests federal district courts with original and exclusive jurisdiction over "[a]ny civil case of admiralty or maritime jurisdiction, saving to suitors in all cases all other remedies to which they are otherwise entitled." Because exercise of admiralty jurisdiction and invocation of substantive maritime law may tend to preempt state regulation of matters traditionally within the ambit of local control, the courts have preferred to read congressional grants of admiralty jurisdiction restrictively.
The power reserved to the states, under the Constitution, to provide for the determination of controversies in their courts may be restricted only by the action of Congress in conformity to the judiciary sections of the Constitution .... Due regard for the rightful independence of state governments, which should actuate federal courts, requires that they scrupulously confine their own jurisdiction to the precise limits which [a federal] statute has defined.
Executive Jet Aviation, Inc. v. City of Cleveland,
Prior to 1972, many federal courts had employed a strict "location-only" test in determining whether a tort claim was subject to the maritime jurisdiction of the United States.4 E.g., Grant Smith-Porter Ship Co. v. Rohde,
The Supreme Court rejected the "location-only" test in Executive Jet Aviation, Inc. v. City of Cleveland, supra. That case involved a private jet that lost power while attempting to take off from the Cleveland municipal airport when its engines scooped up a flock of seagulls. This mishap caused the plane to drop into the waters of Lake Erie and sink. The plaintiffs, owners of the plane, sought to invoke the admiralty jurisdiction of the federal courts in suing the City and others for damages. The Court rejected the plaintiffs' contention that it should focus only on the place where the damage occurred. Instead, it held that
[i]t is far more consistent with the history and purpose of admiralty to require also that the wrong bear a significant relationship to traditional maritime activity. We hold that unless such a relationship exists, claims arising from airplane accidents are not cognizable in admiralty in the absence of legislation to the contrary.
The law of admiralty has evolved over many centuries, designed and molded to handle problems of vessels relegated to ply the waterways of the world, beyond whose shores they cannot go. That law deals with navigational rules--rules that govern the manner and direction those vessels may rightly move upon the waters. When a collision occurs or a ship founders at sea, the law of admiralty looks to those rules to determine fault, liability, and all other questions that may arise from such a catastrophe. Through long experience, the law of the sea knows how to determine whether a particular ship is seaworthy, and it knows the nature of maintenance and cure. It is concerned with maritime liens, the general average, captures and prizes, limitation of liability, cargo damage, and claims for salvage.
Id. at 269-70,
The Supreme Court carefully limited its holding to aviation tort claims, but its rationale applied to any type of tort. Shortly after Executive Jet, the Fifth Circuit held the new nexus requirement applicable in all tort cases. Kelly v. Smith,
Within the past three years, five other Courts of Appeals have had occasion to apply the Executive Jet test in shipyard worker asbestos cases. Lowe v. Ingalls Shipbuilding,
B. The Location Test
Executive Jet did not replace, but rather supplemented, the traditional location requirement for maritime tort jurisdiction. In order for the federal maritime courts to exercise jurisdiction over a tort claim the tort still must occur at a maritime situs. Boudloche v. Conoco Oil Corp.,
This case presents the issue whether the situs test is met when an injury is the result of a number of exposures, only some of which occurred in a maritime situs, and where the effects of the various exposures are indivisible. As the Fifth Circuit noted in Borel, supra, asbestos-related disease is the cumulative result of all the patient's exposures to asbestos, "both past and recent," and it is "impossible, as a practical matter, to determine which exposure or exposures to asbestos dust caused the disease."
We agree with the Second, Fourth, and Ninth Circuits to the extent that they hold a plaintiff's claims have met the jurisdictional location requirement if the plaintiff has been exposed to asbestos on navigable waters regardless of whether he has also suffered exposures on land. As the Fifth Circuit determined in Borel, each exposure causes, or has the potential to cause, injury. Consequently, each exposure must be considered a "wrong" in Executive Jet terms. It is undisputed that the plaintiffs suffered exposures at a maritime situs; so if their claims met Executive Jet 's nexus test, they would be within the ambit of admiralty jurisdiction. It is true, of course, that claims arising from land-based exposures do not meet the situs test, and maritime law does not recognize them. It is also true, as the magistrate points out, that it would be difficult to separate the damage done on land from the injuries that resulted from maritime exposures. But that is a question of damages, not of jurisdiction; difficulty in calculating damages should not determine the jurisdictional issue. We conclude, therefore, that the plaintiffs have met the location test for at least that part of their claims that is the result of exposures that occurred on navigable waters.
C. The Nexus Test
Nevertheless, we hold maritime jurisdiction inapplicable to the plaintiffs' claims because those claims do not "bear a significant relationship to traditional maritime activity." The Fifth Circuit, in the leading case of Kelly v. Smith, supra, set out four factors as relevant in analyzing the relationship a given claim bears to traditional maritime activity: "the functions and roles of the parties; the types of vehicles and instrumentalities involved; the causation and the type of injury; and traditional concepts of the role of admiralty law."
The five other Courts of Appeals that have faced this issue have demonstrated little agreement about those factors that are critical to the "nexus" analysis. In White II, supra, the Fourth Circuit held that admiralty did recognize claims of shipyard workers similar to those asserted by the plaintiffs here. That court focused on the "function of these shipyard workers,"
The function and roles of the parties. Kelly suggests that the function and role of each of the parties is an important consideration, and exclusive attention to the type of employment in which the plaintiffs were engaged is therefore incorrect. In Sperry Rand Corp. v. RCA,
As our review of the cases above indicates, most other circuits considering the issue have focused almost exclusively on the role and function of the plaintiffs in determining whether their claims bear sufficient relationship to maritime activity. Those cases have, however, emphasized different aspects of the plaintiffs' employment in arriving at their conclusions. Here the plaintiffs' occupations were undeniably connected to maritime commerce; indeed, the plaintiffs' work is vital to the shipping industry. But importance to maritime commerce is not alone sufficient to bring an activity within the scope of admiralty jurisdiction. In Hollister v. Luke Construction Co.,
The types of vehicles and instrumentalities involved. As in Kelly, "the vehicle involved was a boat, not an automobile or airplane, whose function was transportation across navigable waters, a traditional role of watercraft,"
The other instrumentality involved, asbestos insulation, like iron or the electronic devices in Sperry, is used in the construction and repair of ships but has no uniquely maritime character. As we concluded above, this fact is not dispositive, but it does suggest that the dispute may not be within admiralty jurisdiction.
The causation and type of injury. The non-maritime nature of the plaintiffs' injuries, injuries that now afflict thousands of land-based workers as well, militates strongly against application of maritime jurisdiction. Like the gunshot wounds in Kelly, the plaintiffs' maladies may not be "so inherently indigenous to land as to preclude any maritime connection,"
Traditional concepts of the role of admiralty law. Of the four factors set out in Kelly, this is clearly the most important. The Kelly Court itself relied heavily on the policies of maritime jurisdiction in deciding to apply the law of admiralty. Id. More recently, the Supreme Court in Foremost Insurance Co. v. Richardson,
Admiralty's purposes are various but limited. In Executive Jet the Supreme Court described admiralty as dealing with navigational rules, apportionment of liability for maritime disasters, protection of seamen aboard ship, and establishment of uniform rules for maritime liens, captures of prizes, liability for cargo damage, and claims for salvage.
Admiralty law is not concerned with claims such as those of the plaintiffs. We can foresee no way in which a result in this case in favor of either the land-based shipyard workers or the asbestos manufacturing defendants will have any more than the most attenuated impact on maritime commerce. None of the issues that the Supreme Court listed in Executive Jet are involved. Rather, the issues that this litigation presents are identical to those presented in countless other asbestos suits; they involve questions of tort law traditionally committed to local resolution. Absent congressional action, the federal interest in these claims is insufficient to justify federal courts supplanting state law with the federal common law of admiralty. See Executive Jet,
The plaintiffs have suggested several federal interests that they believe justify application of maritime laws. The first is uniformity. Although uniformity of the law governing maritime matters is an important purpose of federal admiralty jurisdiction, Peytavin, supra, that policy is not implicated by claims that bear no relationship to maritime matters. As we have suggested, this is such a case. The federal government may or may not have an interest in maintaining uniform rules for resolving asbestos injury claims, but such an interest would be for Congress, not this Court, to articulate. Moreover, if the federal government had such an interest, we would hardly advance it by applying federal substantive law in the small percentage of asbestos cases involving shipyard workers; "for this Court to uphold federal admiralty jurisdiction in a few wholly fortuitous [asbestos] cases would be a most quixotic way of approaching that goal." Executive Jet,
Our review of the four Kelly v. Smith factors indicates that there is little support for the application of maritime jurisdiction to the plaintiffs' claims. On the other hand, a number of factors, including the function and role of the defendants, the injuring instrumentality, the nature of the injury, and most importantly the relationship between the claims and the traditional purposes of admiralty law, militate strongly in favor of the conclusion that admiralty jurisdiction does not recognize the plaintiffs' claims. Accordingly, we hold that this case is outside the maritime jurisdiction of the federal courts.9
V. CONCLUSION
Because the plaintiffs' claims are not cognizable under federal maritime jurisdiction, there is no justification for supplanting state tort law with the substantive law of admiralty. Consequently, although we do not agree with its analysis, we hold that the district court's conclusion that the law of the State of Alabama applies to this case is correct. Also correct are the district court's dismissals of the plaintiffs' claims based on the law of admiralty and of those third-party claims that were based on contribution theories. For the foregoing reasons we AFFIRM the judgments of the district court.
Notes
The plaintiffs seek to apply federal maritime law in order to avoid the Alabama statute of limitations, which may preclude some plaintiffs' claims. Sections 6-2-30 and 6-2-39 of the Code of Alabama require plaintiffs to commence tort actions within one year "after the cause of action has accrued." Ala.Code Sec. 6-2-30(a). The Alabama Supreme Court has held that a cause of action based on exposure to a "latent, insidious agent" accrues, and "the statute of limitations of one year [begins] to run when plaintiff was last exposed ... and plaintiff's ignorance of the tort or injury, there being no fraudulent concealment, does not postpone the running of the statute until the tort or injury is discovered." Tyson v. Johns-Manville Sales Corp.,
In Bonner v. City of Prichard,
Another issue we need not reach: Defendant Johns-Manville Corp. has filed for bankruptcy under Chapter 11 of the Revised Bankruptcy Act, 11 U.S.C.A. Sec. 101 et seq., and obtained a restraining order barring further judicial proceedings against it. In re Johns-Manville Corp.,
The courts have applied different jurisdictional tests to contract disputes, generally focussing on the subject matter of the contract. As the Supreme Court summarized in Grant Smith-Porter Co. v. Rohde,
There are some exceptions to the requirement that torts must have occurred on navigable waters to be cognizable by maritime law. Maritime law has traditionally afforded a seaman a remedy for injuries suffered in the course of service to his vessel that occur on land. Executive Jet,
Congress overruled this distinction when it enacted the Admiralty Extension Act. 46 U.S.C.A. Sec. 740. That section extends admiralty jurisdiction to cover claims for on-shore injuries caused by a vessel on navigable waters. Because the land-based exposures the plaintiffs suffered in this case occurred on vessels that were in dry-dock and outside navigable waters, the Admiralty Extension Act does not apply maritime jurisdiction to claims resulting from the plaintiffs' land-based exposures. Boudloche, supra
The magistrate's report can be read to rely on the mixed-situs problem as a rationale only for invoking the "maritime and local" doctrine to apply state law. Because we decide that admiralty jurisdiction does not apply to these claims, we need not delve into the complexities of the maritime and local doctrine
Both the appellees and the First Circuit rely heavily on cases involving the scope of the remedy for unseaworthiness, such as Halecki and West v. United States,
The plaintiffs contend that Section 5(b) of the Longshoremen's and Harbor Workers' Compensation Act extends maritime jurisdiction to their claims. That section provides in part:
In the event of injury to a person covered under this chapter caused by the negligence of a vessel, then such person, or anyone otherwise entitled to recover damages by reason thereof, may bring an action against such vessel as a third party in accordance with the provisions of section 933 of this title, and the employer shall not be liable to the vessel for such damages ....
33 U.S.C.A. Sec. 905(b). The plaintiffs contend in their brief that "it can accurately be asserted that each of these Plaintiffs' law suits arises out of the LHWCA and pursuant to Section 905(b) their third party law suits must be governed by the substantive law of admiralty." The contention is faulty for at least two reasons. First, and most obviously, Section 5(b) applies only to suits against vessels. Because the plaintiffs are asserting their claims against third parties other than vessels, the section is not relevant. See Austin,
While on the subject of the LHWCA, we should point out that this litigation is not the only source of compensation available to the plaintiffs. Each of the plaintiffs has claimed benefits under the LHWCA.
