Gray H. Miller, Senior United States District Judge.
Pending before the court is a motion to dismiss filed by defendants U.S. Department of Homeland Security, Rear Admiral Paul Thomas, U.S. Coast Guard, and Lead Investigating Officer Bruce Davies (collectively, "Defendants"). Dkt. 7. Plaintiffs Bouchard Transportation Co., Inc., B. No. 255 Corp., and Tug Buster Bouchard Corp. (collectively, "Plaintiffs") responded. Dkt. 9. Defendants replied. Dkt. 11. Having considered the motion, response, reply, the complaint, and the applicable law, the court is of the opinion that the motion to dismiss should be GRANTED.
This case arises from an explosion on a vessel that resulted in two marine casualties. Dkt. 1 at 2. Plaintiffs owned and operated the vessel.
Under Rule 12(b)(1), a party can seek dismissal of an action for lack of subject matter jurisdiction. Fed. R. Civ. P. 12(b)(1). "Federal courts have original jurisdiction over all civil actions `arising under the Constitution, laws, or treaties of the United States.'" Willis of Texas, Inc. v. Stevenson, Civil Action No. H-09-cv-404, 2009 WL 7809247, at *1, *4 (S.D. Tex. May 26, 2009) (Ellison, J.) (citing 28 U.S.C. § 1331). Federal question jurisdiction exists "only in those cases in which a well-pleaded complaint establishes either that federal law creates the cause of action or the plaintiff's right to relief necessarily depends on resolution of a substantial question of federal law." Id.
"In determining whether the court has subject matter jurisdiction, [it] must accept as true the allegations set forth in the complaint." Crane v. Johnson, 783 F.3d 244, 251 (5th Cir. 2015) (citation omitted). "[A] trial court has the power to dismiss for lack of subject matter jurisdiction on any one of three separate bases: (1) the complaint alone; (2) the complaint supplemented by undisputed facts evidenced in the record; or (3) the complaint supplemented by undisputed facts plus the court's resolution of disputed facts." Id.
Defendants move to dismiss all of Plaintiffs' claims on the ground that the district court lacks subject matter jurisdiction under the Administrative Procedure Act ("APA"). See Dkt. 7. The APA authorizes judicial review of final agency action when a relevant administrative agency
Generally, a final agency action must: 1) "mark the `consummation' of the agency's decisionmaking process, it must not be of a merely tentative or interlocutory nature," and 2) "be one by which rights or obligations have been determined, or from which `legal consequences will flow.'" Bennett v. Spear, 520 U.S. 154, 178-79, 117 S.Ct. 1154, 137 L.Ed.2d 281 (1997) (internal quotations and citations omitted). However, 46 C.F.R. § 1.03-15(j) states that "[a]ny decision made by" "the Assistant Commandant for Prevention Policy" is "final agency action." Dkt. 9 at 17-18.
Initially, Plaintiffs objected to the scope of the investigation to the lead investigator, who overruled the objections. Dkt. 9 at 12.
While this decision fits the plain language of a "final agency action" under the regulation, under the Fifth Circuit's interpretation of the APA, "agency action that is `merely, procedural, or intermediate' is subject to judicial review at the termination of the proceeding in which the interlocutory ruling is made." Am. Airlines, 176 F.3d at 288 (citing 5 U.S.C. § 704).
Plaintiffs attempt to distinguish Veldhoen by arguing that the sailors in Veldhoen filed their petition in district court at the start of the inquiry and did not appeal to the Assistant Commandant. Dkt. 9 at 21. While here Plaintiffs seek judicial review after a nearly year-long investigation and they did appeal to the Assistant Commandant. Id.
Here, the Assistant Commandant's decision merely affirms the decision to continue with the investigation. The decision is not the consummation of the agency's decisionmaking process, and the investigation's conclusions will not fix any legal rights nor impose any obligations. Therefore, there is no final agency action under the APA.
Further, although courts have acknowledged some exceptions to the finality rule, none apply here. For instance, "[a] claim that an agency action is in plain contravention of a statutory mandate ... may present one of the extraordinary exceptions to the finality requirement." Veldhoen, 35 F.3d at 225. This exception applies only in"very narrow situation[s]," when there is a "`plain' violation of an unambiguous and mandatory provision of the statute. Am. Airlines, 176 F.3d at 293. 6301. Plaintiffs argue that the Coast Guard has plainly exceeded its statutory authority because it is using its investigatory powers for casualty investigations to investigate Plaintiffs' compliance with the Safety Management System ("SMS") in other vessels. Dkt. 9 at 14.
Defendants argue that they are acting in accordance with 46 U.S.C § 6301 and the Marine Safety Manual ("Manual") as investigators try to determine the cause of the casualty as required by the statute. Dkt. 11-1 at 9. 46 U.S.C. § 6101(f)(1) authorizes the Coast Guard to investigate a "marine casualty involving a United States citizen on a foreign passenger vessel." Additionally, it is directed to determine "as closely as possible, the cause of the casualty, including the cause of any death." 46 U.S.C. § 6301. Based on this authority, the Manual advises investigating offices that there are "many causal factors" that contribute to an accident. Dkt. 7-1 at 24. It lists organizational factors that commonly occur in system accidents such as "organizational structure," "operational culture," and "safety management." Id. at 17. Defendants contend that the Coast Guard's actions fall within the Manual's guidance.
The court finds that the Manual is persuasive and is entitled to deference. It is reasonable for the Coast Guard to consider factors, such as the SMS and noncompliance with the SMS on other vessels, when determining the cause of the marine casualties. Additionally, looking at the SMS is consistent with the purpose of the investigation, which is to prevent similar future accidents. See 46 U.S.C. § 6301 (stating that the investigation will help determine whether there is a need for new laws "to prevent the recurrence of the casualty"). The Coast Guard's actions are therefore not so outside their statutory authority so as to warrant an extraordinary exception to the finality doctrine.
Defendants' motion to dismiss (Dkt. 7) is GRANTED. All of Plaintiffs' claims are DISMISSED WITHOUT PREJUDICE.