LANCE M. AFRICK, District Judge.
Before the Court is a motion
Plaintiff alleges that he was "exposed to asbestos and asbestos-containing products manufactured, distributed, and sold" by defendants during the course of his employment from 1963 through 1979, including at the "Avondale Shipyard."
"On November 4, 2013, Plaintiff was deposed and testified that he worked on all Navy destroyer escorts built at Avondale."
Also on December 3, 2013, Foster Wheeler and GE joined in Westinghouse's notice of removal.
The defendant has the burden to establish the existence of federal jurisdiction. Winters v. Diamond Shamrock Chem. Co., 149 F.3d 387, 397 (5th Cir. 1998). Westinghouse, Foster Wheeler, and GE assert that removal is proper pursuant to 28 U.S.C. § 1442, the federal officer removal statute. Section 1442 provides that a civil action commenced in a state court against any agency or officer of the United States or any person acting under that officer may be removed to federal court. 28 U.S.C. § 1442. A defendant may remove a case pursuant to § 1442 if: (1) the defendant is a "person," (2) the defendant acted under the direction of a federal officer, and (3) the defendant raises a colorable federal defense. Winters, 149 F.3d at 397; see also Williams v. Todd Shipyards Corp., No. 97-20442, 1998 WL 526612, at *2 (5th Cir. July 21, 1998).
Regarding the first prong, corporations are considered "persons" for purposes of removal under § 1442. Winters, 149 F.3d at 398.
In order to satisfy the second prong, a defendant must have "acted pursuant to a federal officer's directions and a causal nexus [must] exist[] between the defendants' actions under color of federal office and the plaintiff's claims." Winters, 149 F.3d at 398 (citing Willingham v. Morgan, 395 U.S. 402, 409 (1969)). "That nexus is established by the federal officer's direct and detailed control over the defendant. If a corporation only establishes that the acts occurred under the general auspices of federal direction, however, then it is not entitled to § 1442(a)(1) removal." Green v. Aetna U.S. Healthcare, Inc., No. 00-1292, 2000 WL 1229226, at *1 (N.D. Cal. Aug. 18, 2000) (citations omitted). "[T]he [U.S. Supreme] Court has clarified that the right to removal is not unbounded, and only arises when `a federal interest in the matter' exists." Winters, 149 F.3d at 398.
In order to satisfy the third prong, a defendant "need not prove the asserted defense, but need only articulate its `colorable' applicability to the plaintiff's claims." Id. at 400. "The officer need not win his case before he can have it removed." Willingham, 395 U.S. at 407.
The first prong of the federal officer removal test requires that the defendant be a "person." Plaintiff could not reasonably dispute that Westinghouse is a "person" for the purposes of § 1442, as it is a corporation. See Winters, 149 F.3d at 398.
The second prong requires that Westinghouse show that it "acted pursuant to a federal officer's directions" and that "a causal nexus exists between the defendants' actions under color of federal office and the plaintiff's claims."
Plaintiff's briefing focuses primarily on his failure-to-warn claims. However, the Court need not address whether such claims meet this prong, which is a troubling question for federal district courts;
The U.S. Supreme Court has commented: "The assistance that private contractors provide federal officers goes beyond simple compliance with the law and helps officers fulfill other basic governmental tasks. . . . Moreover, at least arguably, [contractors] perform[] a job that, in the absence of a contract with a private firm, the Government itself would have had to perform." Watson v. Philip Morris Cos., 551 U.S. 142, 153-54 (2007). "In the context of Winters, for example, Dow Chemical fulfilled the terms of a contractual agreement by providing the Government with a product [Agent Orange] that it used to help conduct a war." Id. at 153-54.
A recent example from another section of this Court is Najolia.
It is clear from Westinghouse's exhibits that it was subject to the direct and detailed control with respect to the manufacture of its turbines. The affidavit of James M. Gate,
The affidavit of U.S. Navy Rear Admiral Roger B. Horne,
Just as the court did in Najolia, this Court "finds that there is sufficient proof that, for removal purposes, and without deciding the merits of the proposed defense, [Westinghouse] acted under the direction of the Navy in designing and manufacturing the products at issue." Id.; see also Crocker, 852 F. Supp. at 1326 ("The submission of the Gates affidavit, which is unrebutted, shows clearly that Westinghouse was acting under the direction of the Navy in the construction of the marine turbines."). The work done by Westinghouse went "beyond simple compliance with the law and . . . at least arguably, [Westinghouse] performed a job that, in the absence of a contract with a private firm, the Government itself would have had to perform." See Watson, 551 U.S. at 153-54.
Plaintiff's arguments that these turbines are sometimes sold to other buyers as "off the shelf" items oversimplifies the nature of the equipment at issue, and such an argument does not rebut the strength of this evidence for removal purposes. See Kerstetter v. Pac. Scientific Co., 210 F.3d 431, 437 (5th Cir. 2000) ("[T]he government procurement officer did not order [the equipment] in the same way he would order light bulbs, but rather, government engineers approved the inclusion of these specific components into a complex piece of equipment."); Vedros v. Northrop Grumman Shipbuilding, Inc., No. 11-67281, 2012 WL 3155180, at *6 (E.D. Pa. Aug. 2, 2012). Accordingly, the Court finds that Westinghouse "acted pursuant to a federal officer's directions" when it manufactured turbines for the Navy. See Winters, 149 F.3d at 398.
Of course, it is not enough to show merely that Westinghouse acted pursuant to a federal officer's direction—such actions must have a causal nexus to plaintiff's claims. With respect to the circumstances of plaintiff's exposure to asbestos, the notice of removal states: "Between 1967 and 1973, a number of Navy destroyer escorts were constructed at Avondale, including the U.S.S. Connole (DE 1056). Upon information and belief, at least some of these Navy vessels were outfitted with asbestos-containing or asbestos-insulated turbines which were manufactured and supplied to the Navy by Westinghouse."
Plaintiff's own testimony, however, establishes the connection between his claims and Westinghouse's actions. Plaintiff stated in his deposition: "[On] December 13th of '67 I started working there again and worked on the — on the — all of the destroyer escorts they built there. I think we built 27. I worked in the engine rooms."
This testimony clearly shows that plaintiff's work in the engine rooms of ships manufactured at Avondale, including destroyer escorts, brought him into direct contact with Westinghouse's, Foster Wheeler's, and GE's asbestos-containing equipment. Plaintiff is correct that Westinghouse has not produced any documents showing that its products were installed on the destroyers at Avondale, but plaintiff's own testimony establishes that the turbines were manufactured either by Westinghouse or by GE, who joined in Westinghouse's notice of removal. Accordingly, there is some "federal interest in the matter," and the required causal nexus is established. See Winters, 149 F.3d at 398. The Court finds that Westinghouse has met the second requirement for federal officer removal.
Westinghouse asserts that it is entitled to a government contractor defense with respect to plaintiff's design-defect claims.
First, "[t]he `reasonably precise' standard is satisfied as long as the specifications address, in reasonable detail, the product design feature[] alleged to be defective." Kerstetter, 210 F.3d at 438. "[T]he mere fact that a corporation participates in a regulated industry is insufficient to support removal, absent a showing that the particular conduct is closely linked to detailed and specific regulations." Williams, 1998 WL 526612, at *4. For the reasons discussed above in connection with the "acting under" requirement, Westinghouse has made a sufficient showing that it was required to follow "reasonably precise" specifications by the U.S. Navy. See Kerstetter, 210 F.3d at 438. Accordingly, Westinghouse has made a colorable showing with respect to the first element.
Second, Westinghouse must show that "the item conformed to those specifications." Miller, 275 F.3d at 419. The Horne affidavit makes clear that each of Westinghouse's turbines was subject to rigorous testing and that any non-conforming turbine would be rejected.
Third, Westinghouse must demonstrate that it "inform[ed] the Government of any dangers in the use of equipment that are known to [it], but not known to the Government." Williams, 1998 WL 526612, at *4 (citing Boyle, 487 U.S. at 512). Horne attests, "The Navy has been aware of the health risk of exposure to asbestos dust since at least the 1920s."
Westinghouse had no responsibility to warn the Navy regarding dangers about which it was already aware. Stout v. Borg-Warner Corp., 933 F.2d 331, 336 (5th Cir. 1991) ("[The manufacturer] only had the duty to warn the government of dangers of which the government had no knowledge."). Plaintiff asserts, without citation to any authority, that Westinghouse must "establish that the Navy had more knowledge than [it] did regarding the hazards of asbestos,"
For the foregoing reasons, Westinghouse has made a sufficient showing with respect to plaintiff's design-defect claims to entitle it to removal pursuant to § 1442. Because the Court finds that Westinghouse properly removed the case from state court, it need not further consider GE's or Foster Wheeler's joinder in the notice of removal. See, e.g., Ely Valley Mines, Inc. v. Hartford Accident & Indem. Co., 644 F.2d 1310, 1315 (9th Cir. 1981) ("[The federal officer] alone can remove without other defendants joining in the petition, and the entire case is removed to the federal court."). Accordingly,