In Re Bomb Disaster at Roseville, Cal., on April 28, 1973

399 F.Supp. 1400 (1975) In re BOMB DISASTER AT ROSEVILLE, CALIFORNIA, ON APRIL 28, 1973. No. 207. Judicial Panel on Multidistrict Litigation. August 15, 1975. *1401 Before ALFRED P. MURRAH, Chairman, and JOHN MINOR WISDOM[*], EDWARD WEINFELD, EDWIN A. ROBSON[*], WILLIAM H. BECKER[*], JOSEPH S. LORD, III, and STANLEY A. WIEGEL, Judges of the Panel. OPINION AND ORDER PER CURIAM. I. Background of the Litigation On April 28, 1973, a day-long series of explosions shook the city of Roseville, California. The explosions, which were caused by the accidental detonation of a train of bomb-laden boxcars, resulted in personal injuries, heavy damage to real and personal property and the evacuation of approximately 35,000 people. According to our records, 71 actions arising from the explosions are currently pending in three federal district courts: 65 in the Eastern District of California, five in the District of Nevada and one in the Central District of California. In addition, several actions are pending in California state courts. Seventy of the federal actions involve claims for damages in the aggregate exceeding $70 million, while the remaining federal action involves a claim for injunctive relief. The plaintiffs in these actions are individuals, businesses and government bodies who allegedly sustained damages as a result of the explosions and insurers who have paid claims arising out of the explosions. The major defendants are the United States of America (maker and owner of the bombs), the Southern Pacific Transportation Company (owner of the train and railroad yard where the detonations occurred) and Pullman-Standard Division of Pullman, Inc. (maker of the boxcars). In one action, Southern Pacific Transportation Co. v. United States of America, D.Nevada, Civil Action No. Civ. R-74-16-BRT, two of these defendants are contesting the issues of liability, indemnification and contribution. II. Proceedings Before the Panel Every federal action is before the Panel for Section 1407 consideration as a result of a motion filed on behalf of plaintiffs in fifteen actions and a show cause order issued by the Panel. The moving plaintiffs urge the Panel to transfer all the actions to the Eastern District of California or, in the alternative, the District of Nevada. Although the Panel received a number of responses from certain plaintiffs either partially or totally opposing the motion, counsel for movants stated during oral argument before the Panel that he was authorized to advise us that all plaintiffs except those in three actions now favor transfer to the Eastern District of California. Defendants United States and Southern Pacific support transfer to that district of all actions except one. Defendant Pullman totally opposes transfer. We find that these actions involve common questions of fact and that their transfer to the Eastern District of California for coordinated or consolidated pretrial proceedings pursuant to 28 U.S. *1402 C. § 1407 will best serve the convenience of the parties and witnesses and promote the just and efficient conduct of the litigation. III. Arguments of the Parties Partially or Totally Opposing the Motion Although both Southern Pacific and the United States admit the existence of numerous common questions of fact among all these actions, they oppose transfer of the Southern Pacific action. They contend that discovery is more advanced in Southern Pacific than in the other actions; that the action will be ready for trial in early 1976; and that its prompt resolution will settle the liability issues between the two primary defendants, which, in turn, will lead to the most expeditious termination of the rest of the litigation. These parties voice the fear that transfer of Southern Pacific will unnecessarily hinder its progress to the detriment of the entire litigation and they suggest that the pretrial proceedings in this action would be delayed by the presence of additional counsel. In addition, Southern Pacific and the United States argue that many of the benefits of transfer are contained in their proposed stipulation that all discovery accomplished in Southern Pacific may be used in any other action relating to these bomb explosions. Southern Pacific even stipulated at the Panel hearing that it will be bound by any adverse decision in Southern Pacific on the issue of liability and that thereafter the only remaining issue in other actions will be the amount of damages sustained by each plaintiff. Pullman opposes any transfer under Section 1407 and argues that no common factual issues exist, insofar as Pullman is concerned, because the actions in which it is named as a defendant are founded upon legal theories different from those asserted against the other defendants. Pullman maintains that it should not be drawn into complex litigation involving over 70 actions when it is a party in only nine of these actions. Also, it contends that transfer would interfere with the rapid adjudication of all actions, would cause Pullman to incur unnecessary expenses and would not prevent duplicative discovery. The three plaintiffs who oppose transfer argue that the best alternative is to wait for the resolution of Southern Pacific and then proceed individually on the question of damages. IV. The Question of Transfer We are persuaded that all the actions in this litigation, including Southern Pacific, belong in a single district for coordinated or consolidated pretrial proceedings under Section 1407. As all parties except Pullman recognize, every action shares common factual issues inasmuch as they all arose out of a single disaster and contain many similar allegations with respect to the liability of defendants. Although we realize that discovery in Southern Pacific is at a significantly more advanced stage than in the other actions, both of the parties in that action concede that more discovery is required before the action is ready for trial. Hence, the uncompleted discovery therein can be accomplished under the direction of the transferee judge to the benefit of the entire litigation. And in case the parties are unable to effectuate a stipulation that the discovery heretofore completed in Southern Pacific may be used in all other actions, the transferee judge may take measures to make such discovery applicable to those actions by utilizing the procedures recommended in the Manual for Complex Litigation, Part I, § 3.11 (rev. ed. 1973). Thus, transfer of all actions to a single district will ensure the prevention of duplicative discovery and also eliminate the possibility of conflicting pretrial rulings. In addition, we do not perceive any harm that defendant Pullman will suffer by a Section 1407 transfer since the actions in which it is named as a defendant are already pending in the transferee district. Transfer under Section 1407 will have the salutary effect of placing all actions *1403 before a single judge who will be in the best position to determine the manner and extent of coordination or consolidation of the pretrial proceedings for the optimum conduct of the litigation as a whole, especially regarding the processing of Southern Pacific in relation to the rest of the litigation. See In re Equity Funding Corporation of America Securities Litigation, 375 F.Supp. 1378, 1384 (Jud.Pan.Mult.Lit.1974). Too, a single judge with an overall perspective of the entire litigation will be able to formulate a pretrial schedule that will minimize the overall expense to the parties and avoid the delay feared by the defendants. For example, the transferee judge can order the parties to conduct discovery through lead and liaison counsel, thereby resulting in streamlined pretrial proceedings that will accrue to the advantage of everyone concerned. See Manual for Complex Litigation, Part I, §§ 1.90-1.93 (rev. ed. 1973). When Southern Pacific is, in fact, ready for trial, the transferee judge may suggest that the Panel remand the action to the District of Nevada, see R.P. J.P.M.L. 11, 65 F.R.D. 253, 260-63 (1975), or the transferee judge may, if he deems it appropriate, transfer the action for all purposes to the transferee or other district under 28 U.S.C. §§ 1404(a) or 1406, see Pfizer, Inc. v. Lord, 447 F.2d 122 (2d Cir. 1971). V. Selection of the Transferee District Clearly, the Eastern District of California is the most appropriate transferee forum for this litigation. A vast majority of the actions are already pending in that district. And much of the discovery will occur there because it is the situs of the explosions and the residence of many of the parties and witnesses. Moreover, Chief Judge Thomas J. MacBride, to whom most of the actions in the Eastern District of California are assigned, has become acquainted with the issues involved in this litigation, which will enable him to supervise it toward its most just and expeditious conclusion. Furthermore, since several actions are pending in California state courts, transfer of all federal actions to California will provide an opportunity for the federal and California state courts to coordinate the discovery efforts in the two jurisdictions and thereby greatly facilitate the processing of the various actions arising out of the explosions. See In re Air Crash Disaster Near Silver Plume, Colorado, on October 2, 1970, 352 F.Supp. 968, 969 (Jud.Pan.Mult.Lit.1972); cf. In re Air Crash Disaster at Florida Everglades on December 29, 1972, 360 F.Supp. 1394, 1395-96 (Jud.Pan.Mult.Lit.1973). It is therefore ordered that the actions listed on the following Schedule A and pending in districts other than the Eastern District of California be, and the same hereby are, transferred to the Eastern District of California and, with the consent of that court, assigned to the Honorable Thomas J. MacBride for coordinated or consolidated pretrial proceedings pursuant to 28 U.S.C. § 1407 with the actions pending in that district and listed on Schedule A. SCHEDULE A Central District of California Los Angeles By-Products Co. Civil Action v. United States of America No. Civ. 75-886-AAH District of Nevada John Bracy, et al. v. United Civil Action States of America, et al. No. R75-10-BRT Southern Pacific Transportation Civil Action Co. v. United States of No. R74-16-BRT America The Old Republic Insurance Civil Action Co. v. United States of America No. R-75-15-BRT Safeway Stores, Inc. v. United Civil Action States of America No. R-75-22-BRT Martin Bechtel, et al. v. United Civil Action States of America No. R-75-35-BRT Eastern District of California Allstate Insurance Co., et al. Civil Action v. United States of America, No. Civ. S74-722 et al. Pedro Ayala, et al. v. United Civil Action States of America, et al. No. Civ. S74-172 Martin Bechtel, et al. v. United Civil Action States of America, et al. No. Civ. S74-599 Charles L. Bobbitt, et al. v. Civil Action United States of America, et No. Civ. S74-111 al. *1404 Margarito S. Chavez v. Southern Civil Action Pacific Transportation No. Civ. S74-78 Co. Margarito S. Chavez v. United Civil Action States of America No. Civ. S74-681 Nina D. Compo, etc. v. United Civil Action States of America No. Civ. S74-724 Karel Harrod, et al. v. United Civil Action States of America No. Civ. S75-156 George A. Leggett v. Southern Civil Action Pacific Transportation Co. No. Civ. S3005 National American Insurance Civil Action Co. of Omaha, et al. v. United No. Civ. S74-632 States of America, et al. Joseph M. Pujals, et al. v. Civil Action Southern Pacific Transportation No. Civ. S-2911 Co., et al. Reserve Insurance Co. v. United Civil Action States of America No. Civ. S75-84 Sentry Insurance Co. v. United Civil Action States of America, et al. No. Civ. S75-180 Darla Mae Walker v. Southern Civil Action Pacific Transportation Co. No. Civ. S74-128 John Belche, et al. v. The Civil Action United States of America, et No. Civ. S74-148 al. James B. Adams, et al. v. Civil Action United States of America, et No. Civ. S74-268 al. Norman Edwards v. The United Civil Action States of America, et al. No. Civ. S74-211 Robert A. Durgin, et al. v. Civil Action United States of America, et No. Civ. S74-124 al. Marion Louise Campos v. United Civil Action States of America, et al. No. Civ. S74-170 Myron L. Fulkerson, et al. v. Civil Action United States of America, et No. Civ. S74-171 al. Unigard Insurance Group v. Civil Action Southern Pacific Transportation No. Civ. S74-551-TJM Co., et al. Pacific Gas & Electric Co. v. Civil Action United States of America, et No. Civ. S74-731-PCW al. A. J. Labruzzo v. United Civil Action States of America, et al. No. Civ. S74-661-TJM Ohio Casualty Insurance Co., Civil Action et al. v. Southern Pacific Railroad, No. Civ. S74-734-TJM et al. Antonio C. Bermudez, Jr., et Civil Action al. v. Southern Pacific Transportation No. Civ. S74-733-TJM Co., et al. Philip L. Ott & Son, Inc. v. Civil Action United States of America, et No. Civ. S75-35-TJM al. Doyle Brown v. United States Civil Action of America, et al. No. Civ. S74-149 People of the State of California, Civil Action etc. v. The United No. Civ. S75-15-TJM States of America, et al. Mission Insurance Co. v. United Civil Action States of America, et al. No. Civ. S74-716 Herman Klein, et al. v. United Civil Action States of America, et al. No. Civ. S75-143-TJM United Services Automobile Civil Action Assn., et al. v. United States No. Civ. S75-20-PCW Department of Navy, et al. Charles Sales, Jr. v. The Civil Action United States of America, et No. Civ. S74-703-TJM al. Leora M. Farmer v. Southern Civil Action Pacific Railroad Co., et al. No. Civ. S74-169 Noni Seeger, et al. v. The Civil Action United States of America, et No. Civ. S75-186-TJM al. Laurel Stizzo v. United States Civil Action of America, et al. No. Civ. S75-260 The American Star Ins. Co., Civil Action etc. v. United States of America, No. Civ. S75-253-TJM et al. Robert T. Baker, et al. v. Civil Action The United States of America, No. Civ. S74-178-TJM et al. George N. Spurr, et al. v. Civil Action The United States of America, No. Civ. S75-115-TJM et al. Bessie Sutter v. The United Civil Action States of America, et al. No. Civ. S75-116-TJM Richard Eugene Todd, et al. Civil Action v. The United States of America, No. Civ. S75-214-TJM et al. Jo Ellen Nordyke v. The United Civil Action States of America, et al. No. Civ. S75-215-TJM Annie Barca v. The United Civil Action States of America, et al. No. Civ. S75-216-TJM George G. Barca, et al. v. Civil Action The United States of America, No. Civ. S75-213-TJM et al. Teresa Urban v. United States Civil Action of America, et al. No. Civ. S74-562 Juanita Blount v. United Civil Action States of America, et al. No. Civ. S74-563 Irene Anderson, et al. v. The Civil Action United States of America No. Civ. S74-177 Mary N. Davidson, et al. v. Civil Action United States of America No. Civ. S74-672-TJM David Dashnaw, et al. v. The Civil Action United States of America, et No. Civ. S74-176 al. Herman L. Perkins, et al. v. Civil Action Southern Pacific Transportation No. Civ. S74-146 Co., et al. Herman L. Perkins, et al. v. Civil Action The United States of America, No. Civ. S74-147 et al. Leota F. Odle, et al. v. The Civil Action United States of America, et No. Civ. S74-165 al. Doyle B. James, et al. v. Civil Action Southern Pacific Railroad Co., No. Civ. S74-163 et al. Doyle B. James, et al. v. The Civil Action United States of America, et No. Civ. S74-164 al. Oscar B. Williams, et al. v. Civil Action Southern Pacific Railroad Co., No. Civ. S74-168-TJM et al. *1405 Oscar B. Williams, et al. v. Civil Action The United States of America, No. Civ. S74-167 et al. Oma A. James v. The United Civil Action States of America No. Civ. S74-175 Bonnie L. Worthington v. Civil Action Southern Pacific Transportation No. Civ. S74-174-TJM Co., et al. Irving Gum v. The United Civil Action States of America No. Civ. S74-607-TJM Ruby Elaine Underwood v. Civil Action Southern Pacific Transportation No. Civ. S74-173-TJM Co., et al. Barbara Ann Ashburn v. Civil Action Southern Pacific Transportation No. Civ. S74-162 Co., et al. Northwestern National Insurance Civil Action Group, et al. v. United No. Civ. S75-50-TJM States of America Barbara E. Compton v. The Civil Action United States of America, et No. Civ. S74-179 al. County of Sacramento, etc. v. Civil Action United States of America, et No. Civ. S74-538-TJM al. Mary D. Bennett v. United Civil Action States of America, et al. No. Civ. S74-561 Leota F. Odle, et al. v. Civil Action Southern Pacific Railroad No. Civ. S74-166 Co., et al. NOTES [*] Although Judges Wisdom, Robson and Becker were unable to attend the Panel hearing, they have, with the consent of all parties, participated in this decision.