J. MICHAEL SEABRIGHT, District Judge.
On June 1, 2012, Plaintiffs Robert and Joyce Cabasug ("Plaintiffs") filed this action asserting claims for negligence, strict liability, breach of warranty, loss of consortium, and punitive damages against twenty-five Defendants that manufactured, sold and/or supplied various products containing asbestos to the United States Navy. As alleged in the Second Amended Complaint ("SAC"), Robert Cabasug ("Cabasug") was exposed to asbestos contained in Defendants' products while working as a pipefitter and nuclear engineer at the Pearl Harbor Naval Shipyard ("PHNS") from 1973 through 2006, causing him to develop mesothelioma and other asbestos-related diseases.
Currently before the court is Plaintiffs' Motion to Apply the Substantive Law of Hawaii, Doc. No. 406. Plaintiffs argue that Hawaii law, as opposed to admiralty law, applies to this dispute. Based on the following, the court DENIES Plaintiffs' Motion.
Cabasug worked at PHNS from 1973 through 2006, and held positions as a pipefitter; pipefitter limited; pipefitter journeyman; nuclear inspector, Code 139; General Engineer, Code 365; and Test Engineer and Risk Control. Plaintiffs asserts that he was exposed to asbestos up until 1986 when he was promoted to an office job. Doc. No. 406-1, Pls.' Mot. at 2.
Prior to this promotion, Cabasug asserts that he was exposed to asbestos within PHNS working on various ships and submarines under repair and inside Building No. 4 (Shop 56). Id. In total, Cabasug has identified thirty-eight ships and submarines that he worked on at PHNS, see Doc. No. 608-2, Ex. A, and asserts that he spent approximately seventy-five percent of his time on ships in drydock. See Doc. No. 608-3, Ex. 2 at 18.
On January 23, 2012, Cabasug was diagnosed with mesothelioma. Doc. No. 406-6, Pls.' Ex. D.
On June 1, 2012, Plaintiffs filed this action alleging claims for negligence, strict liability, breach of warranty, loss of consortium, and punitive damages against Defendants based on their manufacture, sale and/or supply of various products containing asbestos to the United States Navy.
On April 24, 2013, Plaintiffs filed their Motion to Apply the Substantive Law of Hawaii. Doc. No. 406. Defendants filed Oppositions on June 24-25, 2013, Doc. Nos. 608, 609, 610, 611, and Plaintiffs filed Replies on July 2, 2013. Doc. Nos. 613, 615. A hearing was held on July 23, 2013.
The parties dispute whether Hawaii state law or admiralty law applies to Plaintiff's
Whether admiralty law applies requires Defendants to meet two tests,
Plaintiffs urge this court to apply the connection test as articulated in Myhran v. Johns-Manville Corp., 741 F.2d 1119 (9th Cir.1984), and other cases in the 1980s that addressed the applicability of admiralty law to shipyard asbestos cases. Myhran determined that although the location test was met where plaintiff was exposed to asbestos products during the repair of vessels floating on navigable waters, the connection test was not met. Myhran came to this conclusion by considering four factors: "(1) traditional concepts of the role of admiralty law; (2) the function and role of the parties; (3) the types of vehicles and instrumentalities involved; and (4) the causation and nature of the injury suffered." Id. at 1121-22 (quoting Owens-Illinois, Inc. v. U.S. Dist. Ct., 698 F.2d 967, 970 (9th Cir.1983) (per curiam)).
In comparison, Defendants argue that the factors considered in Myhran have been displaced by Jerome B. Grubart, Inc. v. Great Lakes Dredge & Dock Co., 513 U.S. 527, 115 S.Ct. 1043, 130 L.Ed.2d 1024 (1995). In determining that maritime law applied to flooding of basements on the Chicago River caused by a vessel placing pilings on the shore, Grubart rejected the four-factor test outlined by Myhran and other cases, and instead focused the inquiry on whether (1) the incident has a potentially disruptive impact on maritime commerce; and (2) the general character of the activity giving rise to the incident shows a substantial relationship to traditional maritime activity. Id. at 534, 115 S.Ct. 1043.
Thus, at issue is whether Myhran, whose facts closely parallel those presented in this action, governs the admiralty law analysis even though Grubart rejected this framework when presented with different facts. In other words, at issue is whether Myhran is still controlling law or has been overruled by Grubart. To resolve this dispute,
The traditional test for determining whether admiralty law applied to a tort case was a simple, bright line locality test — if the tort occurred on navigable waters, "admiralty jurisdiction followed; if it did not, admiralty jurisdiction did not exist." Grubart, 513 U.S. at 531-32, 115 S.Ct. 1043. See also Conner v. Alfa Laval, Inc., 799 F.Supp.2d 455, 461 (E.D.Pa.2011) (asbestos MDL action) (reciting historical development of admiralty law test). This test had limitations — "admiralty courts lacked jurisdiction over, say, a claim following a ship's collision with a pier insofar as it injured the pier, for admiralty law treated the pier as an extension of the land." Grubart, 513 U.S. at 532, 115 S.Ct. 1043. As a result, in 1948 Congress enacted the Extension of Admiralty Jurisdiction Act, to clarify that admiralty jurisdiction includes "all cases of damage or injury, to person or property, caused by a vessel on navigable water, notwithstanding that such damage or injury be done or consummated on land." 46 U.S.C.App. § 740 (1948) (current version at 46 U.S.C. § 30101).
After this statutory change, Executive Jet Aviation, Inc. v. City of Cleveland, 409 U.S. 249, 93 S.Ct. 493, 34 L.Ed.2d 454 (1972), revisited the admiralty law test and rejected that location is the sole criterion for admiralty jurisdiction. Executive Jet involved tort claims stemming from an airplane crash into Lake Erie after it collided with a flock of birds. Although the accident occurred on navigable waters, Executive Jet reasoned that a tort such as an airplane accident is not cognizable in admiralty unless "the wrong bear[s] a significant relationship to traditional maritime activity." Id. at 268, 93 S.Ct. 493. The Supreme Court subsequently clarified that "the Executive Jet requirement that the wrong have a significant connection with traditional maritime activity is not limited to the aviation context." Foremost Ins. Co. v. Richardson, 457 U.S. 668, 674, 102 S.Ct. 2654, 73 L.Ed.2d 300 (1982). Thus, under Executive Jet and Foremost Insurance, the admiralty law test required courts to consider both the location of the wrong (i.e., the "location test") and whether the wrong bears a significant relationship to traditional maritime activity (i.e., the "connection test").
Executive Jet and Foremost Insurance did not provide much guidance as to how courts should determine whether the connection test was met. As a result, circuits developed various multi-factor tests to analyze this inquiry. The Ninth Circuit adopted four factors: "(1) traditional concepts of the role of admiralty law; (2) the function and role of the parties; (3) the types of vehicles and instrumentalities involved; and (4) the causation and nature of the injury suffered." See Myhran, 741 F.2d at 1121-22 (quoting Owens-Illinois, 698 F.2d at 970). The Ninth Circuit applied these factors in a variety of circumstances to determine whether admiralty law applied, including in the asbestos context.
After Myhran and other circuits developed various multi-factor tests, the Supreme Court provided some clarification in Sisson v. Ruby, 497 U.S. 358, 110 S.Ct. 2892, 111 L.Ed.2d 292 (1990). Sisson addressed whether admiralty law applied where a fire on a pleasure boat docked at a marina caused damage to the boat, other boats docked nearby, and the marina. Because the location test was clearly met, the dispute centered on the connection test. Sisson focused on two factors to find that the connection test was met. First, the burning of docked boats at a marina on navigable waters was of a sort "likely to disrupt [maritime] commercial activity." Id. at 363, 110 S.Ct. 2892. Second, "the storage and maintenance of a vessel ... on navigable waters" bore a substantial relationship to "traditional maritime activity." Id. at 366-67, 110 S.Ct. 2892.
In outlining these two inquiries for the connection test, Sisson recognized that circuit courts had developed various multi-factor inquiries, such as Myhran's four-factor inquiry. Id. at 365 n. 4, 110 S.Ct. 2892. Sisson nonetheless left unresolved whether these multi-factor tests would apply under circumstances not presented in Sisson. Rather, Sisson explained that "at least in cases in which all of the relevant entities are engaged in similar types of activity (cf. n. 3, supra),[
After Sisson, courts were left guessing whether Sisson's connection test applies under different facts. For example, in Delta Country Ventures, Inc. v. Magana, 986 F.2d 1260, 1263 (9th Cir. 1993), a houseboat guest sued the owner for his injuries sustained when he dove off the boat and struck and underwater object. Delta Country Ventures determined that
After Delta Country Ventures, Grubart squarely addressed the reach of Sisson. In Grubart, a crane on a barge in the Chicago River was used to drive new pilings into the riverbed and allegedly caused flooding to the basements of several buildings. Petitioners opposed application of Sisson given that all the parties involved were not engaged in similar activity, instead arguing that the Supreme Court should apply the same multi-factor test used in Myhran.
Grubart outlined that under this framework, "a party seeking to invoke federal admiralty jurisdiction pursuant to 28 U.S.C. § 1333(1) over a tort claim must satisfy conditions both of location and of connection with maritime activity." Id. at 534, 115 S.Ct. 1043. Under the location test, the court must determine "whether the tort occurred on navigable water or whether injury suffered on land was caused by a vessel on navigable water." Id. Under the connection test, the court must address two issues:
Id.
Since Grubart, the Ninth Circuit has applied the Sisson/Grubart framework to a number of different circumstances. See, e.g., In re Mission Bay Jet Sports, LLC, 570 F.3d 1124, 1128 (9th Cir.2009) (applying Grubart to jetski accident to determine that admiralty law governs); Gruver v. Lesman Fisheries Inc., 489 F.3d 978, 982
Based on this history, the court can now answer the question raised by the parties — whether, in light of Sisson and Grubart, Myhran still informs the court's analysis of whether admiralty law applies to this asbestos shipyard tort action.
The court finds that in light Grubart's specific rejection of the four-factor test and the subsequent caselaw applying the Sisson framework, the multi-factor connection test applied in Myhran has been effectively overruled by Sisson and Grubart. See Miller v. Gammie, 335 F.3d 889, 893 (9th Cir.2003) (en banc) (holding that only when "the reasoning or theory of ... prior circuit authority is clearly irreconcilable" with subsequent changes in law should a court "reject the prior circuit opinion as having been effectively overruled"); see also McClenahan v. Paradise Cruises, Ltd., 888 F.Supp. 120, 123 (D.Haw.1995) (determining that Grubart overruled the multi-factor Ninth Circuit test for the connection test such that the district court is not bound by those earlier decisions).
Beyond Myhran's four-factor test, however, Plaintiffs argue that Myhran is still good law for its overall determination that asbestos exposure during construction
Plaintiffs' argument ignores that although Myhran was directed to the same objective as Sisson and Grubart, its inquiry in reaching this objective is totally different — Myhran determined that asbestos exposure during Navy ship construction does not bear a significant relationship to traditional maritime activity based on the very four-factor test that Grubart rejected. Myhran explained that admiralty law did not apply to this shipyard asbestos action because (1) admiralty law is not concerned with asbestos tort claims where it involves the same issues that are presented in purely state law action; (2) the plaintiff's function and role as a pipefitter in a shipyard does not fall within the traditional concerns of admiralty where he was not a seaman and did not perform the work of a seaman; (3) the involvement of ships was at most tangential given that the plaintiff would be in the same position had his asbestos exposure occurred during construction of ships on land; and (4) exposure to asbestos does not bear any inherent relationship to maritime activity. 741 F.2d at 1122-23.
Myhran's weighing of these detailed and specific facts is the very problem Grubart found with the four-part test — that it is "hard to apply, jettisoning relative predictability for the open-ended rough-and-tumble of factors, inviting complex argument in a trial court and a virtually inevitable appeal." 513 U.S. at 547, 115 S.Ct. 1043. In comparison, the second connection test of the Sisson/Grubart framework asks whether the general character of the activity giving rise to the incident shows a substantial relationship to traditional maritime activity. Id. at 534, 115 S.Ct. 1043. The focus is "on the `general character of the activity,'" as opposed to the "precise factual antecedents of the incident at issue," which Myhran weighed in its analysis. See Gruver, 489 F.3d at 985 (quoting Sisson, 497 U.S. at 364-65, 110 S.Ct. 2892).
Thus, Myhran and Grubart are at odds, and the court is not bound by Myhran's determination regarding whether shipyard asbestos actions are substantially related to traditional maritime activity. See Gammie, 335 F.3d at 899 ("[C]ircuit precedent, authoritative at the time it was issued, can be effectively overruled by subsequent Supreme Court decisions that `are closely on point,' even though those decisions do not expressly overrule the prior circuit precedent.") (quoting Galbraith v. Cnty. of Santa Clara, 307 F.3d 1119, 1123 (9th Cir. 2002)). The court therefore does not rely on Myhran in determining whether admiralty law applies to this action.
The court applies the the Sisson/Grubart framework to determine whether admiralty law applies to this action.
Under the location test, the court must determine "whether the tort occurred on navigable water or whether injury suffered on land was caused by a vessel on navigable water." Grubart, 513 U.S. at 543, 115 S.Ct. 1043. District courts since Grubart have determined that "in the case of asbestos-related disease arising from work on or around ships ... the locality test is satisfied as long as some portion of the asbestos exposure occurred on a vessel on navigable waters." See Conner, 799 F.Supp.2d at 466. In comparison, "work performed in other areas of the shipyard or on a dock, (such as work performed at a machine shop in the shipyard, for example...) is land-based work." Lewis v. Todd Shipyard Corp., 2013 WL 1880792, at *1 n. 1 (E.D.Pa. Apr. 4, 2013); see also Faddish, 881 F.Supp.2d at 1367 (citing Conner).
Cabasug was exposed to asbestos while working on vessels in drydock at PHNS. It is well-settled that vessels in drydock are still considered to be in "navigable waters" for purposes of admiralty jurisdiction.
This inquiry "turns ... on a description of the incident at an intermediate level of possible generality," requiring the court to ask "whether the incident could be seen within a class of incidents that posed more than a fanciful risk to commercial shipping." Grubart, 513 U.S. at 538-39,
A description of the "type of the incident involved" in this case is something along the lines of "injury to workers on Navy ships on navigable waters allegedly caused by defective parts" or "exposure to allegedly defective products on or around Navy ships on navigable waters." However defined, it is clear that the incident involves injury on Navy ships. Given these descriptions, "at any reasonable level of generality the incident had a `potentially disruptive impact on maritime commerce.'" See Taghadomi, 401 F.3d at 1086. As explained in the MDL asbestos case Conner, such incident could disrupt maritime commerce a number of ways:
In opposition, Plaintiffs argue that the use of asbestos-containing parts on Navy ships provides no more than a fanciful risk to commercial shipping given that the Navy does not engage in maritime commerce and the effects of asbestos exposure take decades and impact only a small percentage of exposed persons. See Doc. No. 613, Pls.' Reply at 8. The court rejects this argument.
As an initial matter, the analysis is not limited to whether the vessels at issue (Navy ships) themselves participated in maritime commerce. Rather, the relevant inquiry is "whether the incident could be seen within a class of incidents that posed more than a fanciful risk to commercial shipping." Grubart, 513 U.S. at 538-39, 115 S.Ct. 1043. Indeed, as Foremost Insurance explains:
457 U.S. at 674-75, 102 S.Ct. 2654. As stated above, the incident at issue in this case — injury to workers on Navy ships on
The court further declines Plaintiffs' suggestion that the incident should be defined specific to asbestos exposure. Circuit courts applying Grubart have declined to define the "incident" at issue in such narrow terms. For example, in Scarborough v. Clemco Indus., 391 F.3d 660 (5th Cir.2004), Scarborough worked aboard an abrasive sandblasting vessel which employed silica and other materials to maintain protective coatings of offshore oil platforms. After Scarborough passed away many years later, his family brought an action alleging that the safety hoods that he wore were defective and caused him to inhale silica and other materials for almost ten years. Id. at 665. Rather than characterize the incident specific to exposure to silica or contracting silicosis, Scarborough described the incident as "injury to a Jones Act seaman due to the negligence of a non-employer."
Plaintiffs also argue that the court should follow the distinction made in Conner between active-duty sailors and land-based shipyard workers who are exposed to asbestos. Specifically, Conner determined
For this second inquiry, "[t]o warrant jurisdiction, the tortfeasor's activity must be `so closely related to activity traditionally subject to admiralty law that the reasons for applying special admiralty rules would apply.'" Gruver, 489 F.3d at 983 (quoting Grubart, 513 U.S. at 539, 115 S.Ct. 1043). "As a first step, [the court] must define what constitutes the `activity giving rise to the incident.'" Id. (quoting Grubart, 513 U.S. at 534, 115 S.Ct. 1043). In identifying the activity, the court must "focus on the `general character of the activity,'" as opposed to the "precise factual antecedents of the incident at issue." Id. at 985 (quoting Sisson, 497 U.S. at 364-65, 110 S.Ct. 2892). With that said, however, the court must not characterize the activity "so generally as to ignore the maritime context." Id. at 986.
Applying these principles, the court finds that the general activity giving rise to the incident is the manufacture of products for use on vessels. See Conner, 799 F.Supp.2d at 469. This description of the activity focuses on its general character, while at the same time acknowledging the applicable maritime context.
In sum, the court finds that each of the Sisson/Grubart factors is met. As a result, Plaintiffs' claims are subject to admiralty law.
Based on the above, the court DENIES Plaintiffs' Motion to Apply the Substantive
IT IS SO ORDERED.
497 U.S. at 365 n. 3, 110 S.Ct. 2892.