Federal Circuits, Second Circuit (September 27, 1993)
Docket number: 1405
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US Code - Title 28: Judiciary and Judicial Procedure - 28 USC 1404 - Sec. 1404. Change of venue
U.S. Code - Title 11: Bankruptcy - 11 USC 362 - Sec. 362. Automatic stay
U.S. Code - Title 11: Bankruptcy - 11 USC 108 - Sec. 108. Extension of time
U.S. Supreme Court - Schiavone v. Fortune, 477 U.S. 21 (1986)
U.S. Court of Appeals for the Second Circuit - Abdur Rahim, Ruhol Quddus Sarkar, Abdul M. Bhuiyan, Sunther Kandaswamy, Md Yusef Ali, Faruque Ahmed, Salah Abdelfattah, Gulam Mohammed Choudhury, Karnail Singh, Mohammed Salimul Alam, Mohammed Omer Mirdha, Abdul Md Wadud, Mohammed Azam Choudhury, Chhotobhai Patel, Johangir Sheikh Ali, Mahbub Ahmed, Khalid Hameed, Syed Solaiman, Jashim Ahmed, Abdul Basher M. Faizullah, Molla Momin, Md Nural Hussain, Nirad Barua, Mustafa Ahmed, Mohammad Akbar, Hassan Abdelghany Mohammed, Roshan Lal Pathak, Plaintiffs-Appellants, v. Gene Mcnary, Commissioner, Immigration & Naturalization Service, Immigration & Naturalization Service, Terrance O'Reilly, Director, Immigration & Naturalization Service, Administrative Appeals Unit, Joseph Cudihy, Chief, Immigration & Naturalization Service, Administrative Appeals Unit, Immigration & Naturalization Service, Administrative Appeals Unit, Immigration & Naturalization Service, Legalization Appeals Unit, Andrea Quarantillo, Director, Immigration & ..., 24 F.3d 440 (2nd Cir. 1994) Ruhol Quddus Sarkar, Abdul M. Bhuiyan, Sunther Kandaswamy, Md Yusef Ali, Faruque Ahmed, Salah Abdelfattah, Gulam Mohammed Choudhury, Karnail Singh, Mohammed Salimul Alam, Mohammed Omer Mirdha, Abdul Md Wadud, Mohammed Azam Choudhury, Chhotobhai Patel, Johangir Sheikh Ali, Mahbub Ahmed, Khalid Hameed, Syed Solaiman, Jashim Ahmed, Abdul Basher M. Faizullah, Molla Momin, Md Nural Hussain, Nirad Barua, Mustafa Ahmed, Mohammad Akbar, Hassan Abdelghany Mohammed, Roshan Lal Pathak, Plaintiffs-Appellants, v. Gene Mcnary, Commissioner, Immigration & Naturalization Service, Immigration & Naturalization Service, Terrance O'Reilly, Director, Immigration & Naturalization Service, Administrative Appeals Unit, Joseph Cudihy, Chief, Immigration & Naturalization Service, Administrative Appeals Unit, Immigration & Naturalization Service, Administrative Appeals Unit, Immigration & Naturalization Service, Legalization Appeals Unit, Andrea Quarantillo, Director, Immigration & ...
Francis J. Dooley, Orange, NJ, for plaintiff-appellant.
Nancy J. Heller, New York City (Morris Stern, Stern, Dubrow & Marcus, New York City and Maplewood, NJ, of counsel), for defendants-appellees U.S. Lines, Inc., U.S. Lines (S.A.), Inc. and U.S. Lines, Inc. and U.S. Lines (S.A.), Inc. Reorganization Trust.John J. Wrenn, Brooklyn, NY, for defendant-appellee Brandeis Intsel & Co., Inc.John R. Foster, New York City (Waesche, Sheinbaum & O'Regan, P.C., of counsel), for defendant-appellee Samancor, Ltd.Peter J. Zambito, New York City (Dougherty, Ryan, Giuffra, Zambito & Barra, of counsel), for defendants-appellees South African Container Depots, Ltd., and Rennies Freight Services, Ltd.Before: CARDAMONE and MAHONEY, Circuit Judges, and PARKER, District Judge.*CARDAMONE, Circuit Judge:Emil Aslanidis appeals from twin October 20, 1992 judgments of the United States District Court for the Southern District of New York (Kram, J.), dismissing his claims against defendants in two related suits arising from a toxic fire that occurred aboard an American vessel sailing on the high seas. Aslanidis, a merchant seaman working on the vessel, was injured by the fumes. He alleges the district court wrongly granted summary judgment to the owner of the ship in one suit, and in favor of the manufacturer, packager, transporter and purchaser of the cargo that caught fire in the other.With respect to the first cause of action, when the ship's owner declared bankruptcy, plaintiff petitioned for relief from the automatic stay, wrongly thinking that time was on his side. But, in so doing, he became the clock-setter; so that when he later sued the owner of the ship, time had run out and his claim was barred by the statute of limitations. Time limitations similarly barred Aslandis' second suit. Although his intent to sue the manufacturer--and the other defendants that had charge of the flammable phosphorus--was properly conceived in the womb of time, notice of it to them was too long delayed in delivery. Hence, we affirm both judgments.BACKGROUNDA. The Phosphorus FireIn 1985 Aslanidis was employed as a seaman aboard the S.S. American Rigel (RIGEL), a container vessel owned and operated by United States Lines, Inc. (U.S. Lines). In April of that year, the RIGEL commenced a scheduled three-month voyage from its home port in New York City to South Africa and then to South America before returning. Upon arrival in South Africa, the RIGEL loaded a sea container holding 76 steel drums of phosphorus, a highly flammable chemical element, which must be transported in a water blanket to keep it from coming into contact with the air. Phosphorus exposed to air ignites spontaneously.The phosphorus on the RIGEL was manufactured by Samancor, Ltd. of South Africa; it had been sold to Brandeis Intsel Africa "free-on-board," which company in turn sold the shipment to Brandeis Intsel Ltd., London (Brandeis London) "free-on-board." Brandeis London then sold the shipment to Brandeis Intsel & Co. (Brandeis New York) "cost-insurance-freight (CIF) New York." During these paper transactions, Samancor had kept the phosphorus drums in its South Africa plant stowed in a sea container supplied by U.S. Lines. When the paperwork was completed, the manufacturer arranged with Rennies Freight Services, Ltd. (Rennies) to carry the sea container from its factory to the Durban, South Africa docks for loading on the RIGEL.On April 30, 1985 while the phosphorus shipment was en route to Durban, it was damaged in a motor vehicle accident. Upon learning of the accident, Samancor obtained a replacement sea container from U.S. Lines and contracted with South African Container Depots, Ltd. (SACD) to transfer all 76 drums of phosphorus from the damaged receptacle into the new one. Samancor instructed SACD that the phosphorus needed to be kept under water. The restowing was done carelessly, some of the nails that were hammered into supports within the sea container pierced four of the phosphorus drums and its surrounding water shield, causing the container's liquid blanket to commence leaking.At Samancor's direction, Rennies transported the new container to the port at Durban, where it was loaded on the RIGEL for transport to the United States. On May 22, 1985 while the merchant vessel was in the South Atlantic off the coast of Brazil, the water blanket deflated and phosphorus from the four damaged drums made contact with the air and self-ignited. The resulting fire was quickly extinguished by the ship's crew, but toxic fumes emitted from the smoldering container had been released. Aslanidis alleges in his complaint that these fumes injured him and seven other RIGEL crew members.Following the fire, the RIGEL was diverted to Salvadore, Brazil, where its cargo was off-loaded and examined. The 72 undamaged drums of phosphorus were restowed in another container and returned to the ship for its continuing voyage to New York; the four damaged drums were jettisoned at sea. On June 6, 1985 the RIGEL arrived at the Howland Hook Marine Terminal in Staten Island, New York, where the phosphorus-bearing container was stripped by personnel from the New York City Fire Department, U.S. Lines, and its insurers. An ensuing investigation found several of the drums to be leaking, but determined that the chemical material inside was sound. Nevertheless, Brandeis New York indicated it would not accept the shipment, and Samancor agreed to take back the damaged cargo and replace it with conforming goods.B. Proceedings Below1. Action Against U.S. LinesAfter the May 1985 fire, plaintiff Aslanidis attempted to file suit against U.S. Lines but was prevented from doing so because on November 24, 1986 the owner of the RIGEL and its parent company sought bankruptcy protection in the Southern District of New York and were granted an automatic stay of all claims under 11 U.S.C. 362 (1988). As a result, Aslanidis petitioned the Southern District Bankruptcy Court (Blackshear, J.) pursuant to 11 U.S.C. 108(c) (1988) for limited relief from the stay. On November 27, 1991 the bankruptcy court granted Aslanidis such relief, permitting him to pursue the instant claim.On January 24, 1992--58 days after the bankruptcy court's action--Aslanidis commenced suit against U.S. Lines under general maritime law and the Jones Act, 46 U.S.C.App. § 688 (1988), in the Southern District of New York. In his complaint Aslanidis alleged that U.S. Lines was negligent in its handling of the phosphorus cargo, breached the warranty of seaworthiness of the RIGEL, and violated its duty of maintenance and cure while its employee seaman was unfit for duty. U.S. Lines responded by moving for dismissal of the complaint under Fed.R.Civ.P. 12(b)(6), or in the alternative, for summary judgment under Fed.R.Civ.P. 56 because Aslanidis' action was barred under the three-year statutes of limitations found in the Uniform Statute of Limitations for Maritime Torts, 46 U.S.C.App. § 763a (1988), and the Jones Act. Aslanidis countered that these applicable time bars were "tolled" or suspended while U.S. Lines was protected by the automatic stay provision of the Bankruptcy Code.In an order dated October 16, 1992 Judge Kram granted U.S. Lines' motion for summary judgment. In so doing, she held the bankruptcy court's stay did not toll the two maritime statutes of limitations. According to the district court, Aslanidis was required to commence his action within three years of the date of his alleged injury, or within 30 days of the lifting of the automatic stay under the Bankruptcy Code. Aslanidis' January 24, 1992 complaint--filed over six years after the ship fire and 58 days after the lifting of the bankruptcy stay--was not timely under either measure and, accordingly, it granted the motion terminating Aslanidis' action against U.S. Lines.2. Action Against the Other PartiesMeanwhile, Aslanidis had filed a separate complaint on May 23, 1988 in the United States District Court for the District of New Jersey, against various parties--other than U.S. Lines--that had handled the phosphorus. Aslanidis alleged they were negligent and reckless and thus liable for the injuries he incurred as a result of the May 22, 1985 fire on the RIGEL. In this complaint, Aslanidis named as defendants Brandeis New York, Union Carbide Corp. (which by consent order was subsequently released from the action), and three "John Does." Aslanidis maintains he employed the "John Doe" pleading because he was unable to ascertain the names of the other defendants involved in the transportation and packaging of the phosphorus.Following January 1990 discovery, Brandeis New York filed a third-party complaint against the phosphorus manufacturer, Samancor, and the South African transporters and repackagers, Rennies and SACD. Brandeis New York's pleading apparently alerted Aslanidis to the identities of the parties that had handled the sea container, and on May 25, 1990, he amended his complaint to substitute Rennies, SACD, and Samancor for the "John Does." These three new defendants were served by mail in June 1990. All four replied to Aslanidis' amended complaint with motions to dismiss this complaint, which in June 1990 had been transferred from the District of New Jersey to the Southern District of New York pursuant to 28 U.S.C. 1404(a) (1988).On October 16, 1992 Judge Kram issued an opinion and order granting defendants' motions in this other action. She granted Rennies' and SACD's motion to dismiss Aslanidis' complaint pursuant to Fed.R.Civ.P. 12(b)(5) and (6) because she found plaintiff had failed to demonstrate in personam jurisdiction over either South African defendant. She also granted summary judgment to Rennies, SACD, and Samancor under Fed.R.Civ.P. 56 because defendants had been served with the amended complaint five years after the fire and the alleged injury--well beyond the expiration of the three-year maritime statute of limitations. See 46 U.S.C.App. § 763a. The district court further found that Brandeis New York, as the consignee, could not reasonably have been expected to know whether the goods in question were loaded in a proper manner and thus could not be held liable. Accordingly, it also granted Brandeis New York's motion for summary judgment.On October 20, 1992 the district court handed down two final judgments terminating plaintiff's cases against both U.S. Lines and the other defendants. Aslanidis appeals from both final judgments, raising objections as to each of the district court's rulings. In the interest of judicial economy, we consider both of Aslanidis' appeals together.DISCUSSIONI Summary JudgmentWe review de novo the district court's grant of summary judgment to defendants. See Brass v. American Film Technologies, Inc., 987 F.2d 142, 146 (2d Cir.1993). Summary disposition is appropriate when all the papers before a trial court show that there are no genuine issues of material fact. Fed.R.Civ.P. 56(c). A litigant seeking such relief bears the initial burden of demonstrating the absence of any genuine factual issues. See Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986). Once this burden is met, the non-moving party is obligated to produce probative evidence supporting its view that a genuine factual dispute exists. To do so successfully, the non-moving party must demonstrate more than "some metaphysical doubt as to the material facts, ... [it] must come forward with 'specific facts showing that there is a genuine issue for trial.' " Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986) (quoting Fed.R.Civ.P. 56(e)).Our role is to determine whether the district court correctly concluded that there were no genuine issues for trial as to Aslanidis' claims, thereby entitling the appellees to "judgment as a matter of law." H.L. Hayden Co. of N.Y., Inc. v. Siemens Medical Sys., Inc., 879 F.2d 1005, 1011 (2d Cir.1989). In carrying out this task, we view the evidence in a light most favorable to appellant, the non-moving party, and draw all reasonable inferences in his favor. See United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 993, 8 L.Ed.2d 176 (1962) (per curiam).II Tolling the Maritime Statutes of LimitationsAppellant initially asserts that the district court erred in granting U.S. Lines' motion for summary judgment on the grounds that the seaman's cause of action against the shipping company was barred by the three-year maritime statutes of limitations. He contends the limitations periods found in the Uniform Statute of Limitations for Maritime Torts, 46 U.S.C.App. § 763a, and the Jones Act, 46 U.S.C.App. § 688, were tolled while U.S. Lines was under protection of the bankruptcy court stay. Since 18 months remained under the time bars--within which he was required to commence his personal injury action--when U.S. Lines initially entered bankruptcy protection, appellant posits that this period continued to be available to him to file his claim after the bankruptcy stay was lifted.Aslanidis' argument is predicated in large part on his reading of the "Extension of Time" provision of the Bankruptcy Code, 11 U.S.C. 108(c), which he believes provides for tolling of all externally imposed statutes of limitations while a debtor is in bankruptcy. This code section states, in pertinent part:[I]f applicable nonbankruptcy law ... fixes a period for commencing or continuing a civil action in a court other than a bankruptcy court on a claim against the debtor ... and such period has not expired before the date of the filing of the petition, then such period does not expire until the later of-- (1) the end of such period, including any suspension of such period occurring on or after the commencement of the case; or (2) 30 days after notice of termination or expiration of the stay under section 362....11 U.S.C. 108(c) (emphasis added).Analysis of this provision must commence with the language of the statute itself because, when looking at its language, a court should presume that the statute says what it means. See Connecticut Nat'l Bank v. Germain, --- U.S. ----, ----, 112 S.Ct. 1146, 1149, 117 L.Ed.2d 391 (1992). If the words of a statute are unambiguous, judicial inquiry should end, and the law interpreted according to the plain meaning of its words. See Rubin v. United States, 449 U.S. 424, 430, 101 S.Ct. 698, 701, 66 L.Ed.2d 633 (1981); Sturges v. Crowninshield, 17 U.S. (4 Wheat.) 122, 202, 4 L.Ed. 529 (1819) (Marshall, Ch.J.). Only where doubt or ambiguity resides in a Congressional enactment--i.e., the legislature's finished product--may legislative history and other tools of interpretation beyond a plain reading of the statute's words be utilized to shed light on verbiage that is unclear. See, e.g., SEC v. Robert Collier & Co.,Try vLex for FREE for 3 days
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