Exxon Shipping Co. v. Airport Depot Diner, Inc.

On this appeal we must decide whether the district court properly granted a declaratory judgment summarily adjudicating certain issues relating to claims against Exxon in a parallel federal proceeding and in hypothetical state court litigation.

I.

In March 1989, the EXXON VALDEZ ran aground, causing a massive oil spill in Alaska territorial waters. Numerous commercial fishermen, local business owners, state and local governments, and Native American corporations, among others, brought suit against Exxon in state and federal court, seeking relief on various federal and state law theories. 1 The federal actions were eventually consolidated in a single action, In re Exxon Valdez, Case No. 89-95, while the state court actions were consolidated in Alaska Superior Court.

In May 1991, Exxon filed this declaratory relief and interpleader action against some 4,000 plaintiffs alleged to have asserted claims against Exxon in state and federal court, seeking a judgment that would bind plaintiffs in federal and state court alike. The complaint alleged federal question, diversity and maritime jurisdiction, 28 U.S.C. §§ 1331 , 1332,1346. The plaintiffs moved to dismiss or stay the action,…