Court Opinion

ID: 9882097
Source: CourtListenerOpinion
Date Created: 2023-10-05 00:00:32.020339+00
Date Added: 2024-06-11T14:25:10.061498
License: Public Domain

Case: 22-40791         Document: 00516920514             Page: 1      Date Filed: 10/04/2023

              United States Court of Appeals
                   for the Fifth Circuit                                  United States Court of Appeals
                                                                                   Fifth Circuit

                                      ____________                               FILED
                                                                           October 4, 2023
                                        No. 22-40791                        Lyle W. Cayce
                                      ____________                               Clerk

   James Chapoy,

                                                                     Plaintiff—Appellant,

                                             versus

   Union Pacific Railroad, Individually and as Successor-in-Interest to
   Southern Pacific Transportation Company,

                                                Defendant—Appellee.
                      ______________________________

                      Appeal from the United States District Court
                          for the Southern District of Texas
                                USDC No. 3:20-CV-169
                      ______________________________

   Before King, Willett, and Douglas, Circuit Judges.
   Per Curiam:*
          This is a Federal Employers Liability Act (“FELA”) case brought by
   appellant James Chapoy, who worked for Union Pacific Railroad and its
   predecessor between 1972 and 2011. In 2020, Chapoy sued Union Pacific for
   FELA negligence under 45 U.S.C. § 51 after being diagnosed with asbestosis
   in 2012. The district court, ruling on a Federal Rule of Civil Procedure 59(e)

          _____________________
          *
              This opinion is not designated for publication. See 5th Cir. R. 47.5.
Case: 22-40791     Document: 00516920514           Page: 2   Date Filed: 10/04/2023

                                    No. 22-40791

   Motion to Alter or Amend a Judgment, granted summary judgment in favor
   of Union Pacific. It concluded that Chapoy’s lawsuit was untimely under
   FELA’s three-year statute of limitations, tolled by agreement of the parties
   for one year. Finding the agreement to be unambiguous, we hold that there
   remains a question of fact regarding when tolling terminated as to Chapoy,
   rendering summary judgment improper. Accordingly, we VACATE and
   REMAND for proceedings consistent with this opinion.
                                         I.
          In performing his duties for Union Pacific for almost forty years,
   Chapoy alleges he was exposed to asbestos. He was officially diagnosed with
   asbestosis in 2012.
          Years earlier, in 2001, in an effort to resolve hundreds of asbestos
   claims, counsel for claimants (including Chapoy) and counsel for Union
   Pacific reached a mutual solution to address limitations concerns: a Master
   Statute of Limitations Tolling Agreement (“Tolling Agreement”).            As
   described by Chapoy, this arrangement “saved both parties . . . money and
   stress . . . and allowed both parties to remove any limitations concern in any
   individual claim by addressing limitations on a global basis.” The agreement
   was signed by counsel for claimants, Bruce Halstead, and the national lead
   counsel for Union Pacific, Tracy Cowan, who worked together amicably to
   settle many cases over the years.
          The parties do not dispute that the Tolling Agreement was a valid
   contract. Nor do they dispute the date on which the statute of limitations
   commenced.      Instead, the crux of this appeal centers on the proper
   interpretation of the phrase “subject to extension by agreement of the
   parties” in paragraph three of the Tolling Agreement.           The Tolling
   Agreement states in relevant part:

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         1. The parties agree that for the purpose of statute of
         limitations accrual, as that term is defined and interpreted
         under the Federal Employer’s Liability Act, 45 U.S.C. § 51, et
         seq., each claimant’s accrual date shall be deemed to be
         “tolled” or legally suspended for one year from the effective
         “tolling date”, as defined in paragraph[s] two and three.
         2. All claims included and “tolled” under the Agreement shall
         have an effective “tolling date” on the date that the claim
         notification was mailed (properly post marked or labeled for
         private delivery) by counsel for claimants in Houston, Texas.
         3. For purposes of this Agreement, the tolling period, in any
         specific case or group of cases, shall terminate on the one[-]year
         anniversary of the “tolling date”, subject to extension by agreement
         of the parties.
                                         ...
         5. Nothing herein shall be construed to prevent either party
         from terminating this Agreement in the future. If either party
         desires to withdraw from the Agreement, 30 days written
         notice shall be given. Nothing herein shall be construed to
         restrict or otherwise limit plaintiff’s counsel’s practice of law.
         The parties understand and agree that they, in all likelihood
         will disagree on the evaluation of certain claims and that formal
         litigation may be necessary to resolve these claims.
   (emphasis added).
         In Chapoy’s view, ample evidence suggests that both parties viewed
   the Tolling Agreement as “extended indefinitely by agreement” based on
   informal communications between counsel. Union Pacific claims that any
   agreement to extend must be in writing, and that even if a written agreement
   were not required, there is no evidence to suggest that Union Pacific agreed
   to extend the Tolling Agreement to Chapoy beyond the one-year termination
   date in paragraph three.

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          The district court granted summary judgment to Union Pacific,
   determining that the FELA statute of limitations was jurisdictional, and that
   Chapoy could not recover because his claim was not filed before the three-
   year statute of limitations bar, regardless of whether the parties agreed to
   extend. The case was reassigned, and pursuant to a Rule 59(e) Motion to
   Alter or Amend a Judgment, the district court concluded that although the
   original motion for summary judgment erroneously concluded that the
   statute of limitations was jurisdictional, Chapoy was still not entitled to
   recover.
          The district court concluded that the one-year agreement to toll in
   paragraph one did not save Chapoy from the three-year FELA statute of
   limitations: “To hold otherwise would render the clause terminating the
   agreement after one year meaningless. To a reasonable reader, the agreement
   provides that the statute of limitations is tolled for one year, and the parties
   can opt out earlier or agree to extend it later if they choose.” Though it did
   not address whether it found evidence of an agreement to extend, the district
   court concluded that the Tolling Agreement terminated after one year, so
   Chapoy was still over five years late in the filing of his lawsuit. The district
   court concluded that Chapoy’s claim was barred by the statute of limitations
   and that summary judgment in favor of Union Pacific was proper.
                                         II.
          We review a grant of summary judgment de novo. Dewan v. M-I,
   L.L.C., 858 F.3d 331, 334 (5th Cir. 2017). “When summary judgment is
   sought on an affirmative defense, as here, the movant ‘must establish beyond
   peradventure all of the essential elements of the claim or defense to warrant
   judgment in his favor.’” Id. (quoting Fontenot v. Upjohn Co., 780 F.2d 1190,
   1194 (5th Cir. 1986)). Further, as this court recently noted, “[u]nder the
   FELA, awarding summary judgment to the defendant railroad is appropriate

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   ‘[o]nly when there is a complete absence of probative facts’ to support a jury
   verdict in the plaintiff’s favor.” Gray v. Ala. Great S. R.R., 960 F.3d 212, 216
   (5th Cir. 2020) (quoting Lavender v. Kurn, 327 U.S. 645, 653 (1946)). “This
   standard is highly favorable to the plaintiff and recognizes that the FELA is
   protective of the plaintiff’s right to a jury trial.” Id. (quoting Wooden v. Mo.
   Pac. R.R., 862 F.2d 560, 561 (5th Cir. 1989)).
                                         III.
          There is a three-year statute of limitations for claims brought under
   FELA. 45 U.S.C. § 56. Specifically, “[n]o action shall be maintained under
   this chapter unless commenced within three years from the day the cause of
   action accrued.” Id. Before proceeding to the parties’ arguments, we note
   that the district court correctly concluded that FELA’s statute of limitations
   is not jurisdictional and can therefore be waived or extended by agreement of
   the parties.
          The Supreme Court has held that if limitations are jurisdictional,
   courts must enforce them “even if the other party has waived any timeliness
   objection.” United States v. Wong, 575 U.S. 402, 409 (2015). But a statute
   of limitations is jurisdictional only if Congress has offered a “clear
   statement” of its intent to make it so. Id. at 409-10. “[M]ost time bars are
   nonjurisdictional.” Id. at 410. This is so “even when the time limit is
   important (most are) and even when it is framed in mandatory terms (again,
   most are).” Id. “Congress must do something special, beyond setting an
   exception-free deadline, to tag a statute of limitations as jurisdictional and so
   prohibit a court from tolling it.” Id. Nothing in 45 U.S.C. § 56 or elsewhere
   in FELA reveals that Congress meant the FELA limitations provision to be
   jurisdictional.
          Further, the Supreme Court has expressly held, at least twice, that the
   FELA limitation period is not inflexible and may be extended beyond three

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   years. See Burnett v. N.Y. Cent. R.R., 380 U.S. 424, 427 (1965); Glus v.
   Brooklyn E. Dist. Terminal, 359 U.S. 231, 234-35 (1959). Accordingly, the
   Tolling Agreement was a valid contract extending the statute of limitations
   for FELA claims.
          Turning to the parties’ contentions, Chapoy argues that his claim was
   continuously tolled from October 2014, when he submitted his claim for
   asbestosis to Union Pacific through his counsel, until July 2020, when
   Chapoy gave written notice pursuant to paragraph five that he was
   withdrawing from the Tolling Agreement. Chapoy reads paragraph three as
   a provision addressing automatic termination “subject to extension by
   agreement of the parties.”          Chapoy contends that this language
   unambiguously allows the parties to extend the tolling agreement informally,
   and the court should consider the parties’ course of dealing and course of
   performance to confirm whether the parties indeed extended the tolling
   agreement.
          Union Pacific argues that any agreement to toll the statute of
   limitations must be in writing, and there was no written agreement by the
   parties to toll the limitations period beyond the one-year period in the Tolling
   Agreement. It states that the district court found that Chapoy “adduced no
   evidence at all suggesting that Union Pacific ever agreed to extend the Tolling
   Agreement to Appellant, let alone agreed to an indefinite extension as
   argued.” Further, Union Pacific urges that any argument that the parties
   were required to affirmatively take action to withdraw from the Tolling
   Agreement ignores the explicit text of the Tolling Agreement that it “shall”
   terminate in one year. Claiming the Tolling Agreement is unambiguous,
   Union Pacific argues that we may not consider any parol evidence, including
   the parties’ course of dealing and performance.

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            Texas law guides our interpretation of the contract. See Instone Travel
   Tech Marine & Offshore v. Int’l Shipping Partners, Inc., 334 F.3d 423, 428 (5th
   Cir. 2003). Under Texas law, “[o]ur primary concern when interpreting a
   contract is to ascertain and give effect to the intent of the parties” as
   expressed in the contract. Seagull Energy E & P, Inc. v. Eland Energy, Inc.,
   207 S.W.3d 342, 345 (Tex. 2006). “Contract terms are given their plain,
   ordinary, and generally accepted meanings”, and contracts are to be
   construed as a whole, “to harmonize and give effect to all the provisions.”
   Valence Operating Co. v. Dorsett, 164 S.W.3d 656, 662 (Tex. 2005). A contract
   is ambiguous if it is “susceptible to more than one reasonable meaning after
   application of established rules of construction.” Univ. Health Servs. Inc. v.
   Renaissance Women’s Grp., P.A., 121 S.W.3d 742, 746 (Tex. 2003). But
   “courts will enforce an unambiguous instrument as written” because
   ordinarily, “the writing alone will be deemed to express the intention of the
   parties.” Sun Oil Co. (Delaware) v. Madeley, 626 S.W.2d 726, 728 (Tex.
   1981).
            Here, the Tolling Agreement is unambiguous.            Paragraph one
   establishes a tolling period of one year. Paragraph two defines the tolling date
   as the date that the claim notification was mailed. Paragraph three, the
   source of contention, specifically states that the tolling period shall terminate
   on the one-year anniversary of the tolling date, “subject to extension by
   agreement of the parties.” The plain language of paragraph three creates an
   automatic termination date of one year unless the parties agree otherwise.
   The Tolling Agreement does not specify the form that agreement must take.
   It does, however, speak to withdrawing from the agreement in paragraph five.
   There, it states that a party may withdraw with “30 days written notice”
   given.
            The express requirement of “written notice” for termination in
   paragraph five, but the lack of such a requirement in paragraph three, gives

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   rise to a presumption that the parties did not intend to require written notice
   under paragraph three. See Frew v. Janek, 820 F.3d 715, 729 n.60 (5th Cir.
   2016) (applying Texas law) (citing Taracorp, Inc. v. NL Indus., Inc., 73 F.3d
   738, 744 (7th Cir. 1996) (“[W]hen parties to the same contract use such
   different language to address parallel issues . . . it is reasonable to infer that
   they intend this language to mean different things.”)); see also Vendura v.
   Boxer, 845 F.3d 477, 485 (1st Cir. 2017) (“When a contract uses different
   language in proximate and similar provisions, we commonly understand the
   provisions to illuminate one another and assume that the parties’ use of
   different language was intended to convey different meanings.”) (internal
   citation and quotations omitted)). This is not to suggest that differently
   worded provisions will inevitably receive different constructions. Sometimes
   parties rephrase and reinforce what they agree to, and sometimes omissions
   and elisions are purely accidental. But given the proximity of paragraphs
   three and five (on the same page and separated by only one paragraph) and
   the closeness of the issues they address (termination and tolling), we can only
   infer that the parties’ decision to omit a writing requirement in paragraph
   three was deliberate. To the extent the district court concluded otherwise,
   that was error.
           Accordingly, the question on remand is whether the parties agreed, in
   writing or otherwise, to extend the tolling period. This requires the district
   court to look at the evidence put forth by the parties to determine whether
   such an agreement existed.1

           _____________________
           1
            Such an agreement may be express or implied under Texas law. Haws & Garrett
   Gen. Contractors, Inc. v. Gorbett Bros. Welding, 480 S.W.2d 607, 609 (Tex. 1972). An
   implied agreement may be established by looking to the parties’ course of dealing and
   performance, as Chapoy urges. See, e.g., Emmer v. Phillips Petroleum Co., 668 S.W.2d 487,
   490 (Tex. App.—Amarillo 1984, no writ); Double Diamond, Inc. v. Hilco Elec. Coop., Inc.,
   127 S.W.3d 260, 265-67 (Tex. App.—Waco 2003, pet. denied); Celadon Trucking Servs.,

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                                           IV.
          This question of fact—whether the parties agreed to extend the
   Tolling Agreement as to Chapoy such that it did not terminate after one
   year—rendered summary judgment in favor of Union Pacific improper.
   Accordingly, we VACATE and REMAND for the district court to address
   this question in the first instance.

          _____________________
   Inc. v. Lugo’s Sec. Agency, No. 04-05-00018-CV, 2005 WL 2401886, at *2 (Tex. App.—San
   Antonio 2005, no pet.).

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