Ninth Circuit Holds that Death on the High Seas Act Preempts Alien Tort Statute - But Not Always

By Lafcadio Darling

The Ninth Circuit Court of Appeals recently held that the specific provisions of the federal Death on the High Seas Act (DOHSA) preempted a wrongful death claim under the more general Alien Tort Statute (ATS).  However, the court also held that this preemption was not absolute.

Bowoto v. Chevron arose out of a protest aboard an oil rig nine miles off the Nigerian coast.  When the owner of the rig (a subsidiary of oil giant Chevron) authorized Nigerian Government  Security Forces to move in, the incident turned deadly and numerous protesters were killed or injured.  Several injured protesters and the estate of one of those killed sued in U.S. federal court, claiming that Chevron and related companies were liable under the ATS.  The case was ultimately tried to a jury, who found in favor of Chevron on all claims.

One of the issues on appeal was the trial court's pre-trial ruling that the DOHSA preempted wrongful death claims under the ATS.  The court affirmed this outcome, but in a qualified way.  After summarizing the history of the DOHSA and Supreme Court case law, the Ninth Circuit  held that, in this case, the wrongful death claim was precluded by the more detailed provisions of the DOHSA.  However, the court refused to rule out the possibility of a such a wrongful death claim under the ATS, finding that  "[t]here may .. be situations where a plaintiff can simultaneously pursue claims under both DOHSA and the ATS." 

While the outcome of this case is not surprising--particularly in light of the facts and the jury verdict in favor of Chevron--the Ninth Circuit's ruling that DOHSA does not totally preclude a concurrent death claim under the ATS is more intriguing.  The Bowoto court gave little guidance as to when a plaintiff might be able to bring concurrent DOHSA and ATS claims; rather, the it simply pointed to the Supreme Court's recognition that "DOHSA does not address every issue of wrongful death law" and refused to rule out the possibility.

It will be interesting to see whether future plaintiffs will try to assert concurrent ATS and DOHSA claims and, if they do, how those claims will be handled by the federal courts.  While this author suspects that such concurrent DOHSA/ATS cases will be rare indeed, only time and jurisprudence will provide the answer.

 

 

Second Circuit Deals Another Blow to Rule B Claimants

The fallout from the Second Circuit Court of Appeals' overturning of the now-infamous Winter Storm case continues.

As had been previously discussed on this blog, the Second Circuit's ruling in Winter Storm, Ltd. v. TPI authorized claimants from around the world to use Admiralty Rule B to attach Electronic Fund Transfers (EFTs) passing through New York banks.  This was significant because many US-Dollar funds transfers--even those involving totally foreign transactions--often will instantaneously pass through intermediary banks in New York.  As a result of the Winter Storm ruling, parties could obtain security for their claims by seeking a Rule B attachment in New York and tying up funds held by the opposing party, no matter where the dispute was being decided or where the EFTs were headed.

This Rule B procedure had developed into a cottage industry for many New York maritime attorneys, but in October 2009 the Second Circuit reversed course in the case of The Shipping Corporation of India v. Jaldhi Overseas PTE, Ltd., overruling Winter Storm and holding that EFTs cannot be attached under Rule B.  This case, which was also reported on this blog, generated a lot of comment and subsequent litigation on the status of the thousands of Rule B cases that were pending in New York federal courts.

Now the Second Circuit has weighed in again, giving courts a free hand in managing these Rule B cases.  In the recent decision of Sinoying Logistics Pte Ltd. v. Yi Da Xin Trading Corp., the Second Circuit upheld the District Court's sua sponte dismissal of a Rule B attachment of EFTs and dismissal of the case on jurisdictional grounds.  The appeals court found that the District Court acted properly when finding that no Rule B jurisdiction existed and, in the absence of any proof of further property located in the district, dismissal of the complaint was correct. 

Although this is not a surprising result, this case is another confirmation that the death knell for Rule B attachments of EFTs has been sounded by the Second Circuit.  The hopes, held by some, that courts would retreat from the Jaldhi ruling or limit its scope have surely been dashed.  It also confirms that courts in the Second Circuit will have no obligation to protect claimants who used this mechanism in reliance on the Winter Storm and who are now left without security for their claims.

Lafcadio Darling specializes in maritime and commercial litigation, representing a wide variety of business and consumer clients.  In addition to being licensed in Washington and California, Lafcadio also holds a LL.M. from University College London and is a licensed solicitor in England & Wales