Aerovation, Inc. v. Airtec, Inc.

CourtDistrict Court, D. Maryland
DecidedAugust 16, 2019
Docket8:18-cv-02959
StatusUnknown

This text of Aerovation, Inc. v. Airtec, Inc. (Aerovation, Inc. v. Airtec, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aerovation, Inc. v. Airtec, Inc., (D. Md. 2019).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MARYLAND

AEROVATION, INC., Plaintiff / Counter-Defendant / Third-Party Plaintiff, v. AIRTEC, INC., Civil Action No. TDC-18-2959 Defendant / Counter-Plaintiff, STEVENS AVIATION, INC. and AERY AVIATION, LLC, Third-Party Defendants.

MEMORANDUM OPINION Plaintiff and Third-Party Plaintiff Aerovation, Inc. (“Aerovation”) has filed a civil action against Defendant Airtec, Inc. (“Airtec”) alleging breach of contract. After Airtec filed counterclaims, Aerovation impleaded Aery Aviation, LLC (“Aery”) and Stevens Aviation, Inc. (“Stevens”), alleging Maryland indemnification and contribution claims. Presently pending before the Court are separate Motions to Dismiss filed by Aery and Stevens. Upon reviewing the submitted materials, the Court determines that no hearing is necessary. See D. Md. Local R. 105.6. For the reasons set forth below, Aery’s Motion is DENIED, Stevens’s Motion is GRANTED, and Aerovation’s request for leave to amend the Third-Party Complaint as to Stevens is DENIED. BACKGROUND In early 2018, Airtec and Aerovation entered into a contract for Aerovation to provide materials for the modification of an Airtec Gulfstream aircraft (“the Aerovation Contract”).

Aerovation completed delivery of the materials in April 2018, and Airtec subsequently contracted with Aery to install them. After securing that contract (“the Aery Contract”), Aery subcontracted with Stevens for labor. The installation of the parts was primarily conducted at Stevens’s hangar in South Carolina. Aerovation’s only contract was with Airtec; it did not have a contract with Stevens or Aery. Although Airtec made one payment to Aerovation for the aircraft parts, Airtec did not make full payment to Aerovation as required by the Aerovation Contract. Airtec contends that the strongback component and ventral fin delivered by Aerovation did not meet the contract requirements. 1. Aery Aery, a limited liability company, is headquartered in Newport News, Virginia. It has no offices or employees in Maryland. Aery entered into a contract with Airtec, a Maryland company, in or about early January 2018 to oversee the modification of Airtec’s Gulfstream aircraft. Airtec made the initial contact with Aery to discuss the project in November 2017. In turn, Aery submitted at least three formal proposals to Airtec at its offices in California, Maryland, in January, February, and April 2018. Airtec and Aery communicated by telephone, email, and text to discuss the proposed contract. The Aery Contract was executed on January 5, 2018, and pursuant to the contract, four purchase orders totaling more than $2 million were executed between May and October 2018. After the award of the contract, Aery’s representatives traveled to Airtec’s offices in Maryland six times between January and August 2018. These visits included a meeting within two weeks after the execution of the contract, a meeting to discuss engineering and certification content, a meeting to discuss transportation to the assembly location in Greenville, South Carolina, and separate deliveries of parts, component racks, and a data drive to Airtec.

Aery’s proposals to Airtec sought a Virginia forum selection clause and a choice-of-law clause providing that the contract would be governed by Virginia law. Airtec’s standard purchase order for the receipt of services from Aery, however, contained a Maryland choice-of-law clause and a clause providing for mandatory mediation to occur in Maryland. The actual purchase orders issued by Airtec and accepted by Aery incorporated Airtec’s standard purchase order by reference. After securing the contract for the Gulfstream project at issue, Aery received another contract from Airtec in February 2018, for work referred to as the “King Air” project. I. Stevens Stevens provided engineering labor and facilities during the installation of the aircraft parts Aerovation provided to Airtec. In its Counterclaim, Airtec states that after Stevens engineers had unsuccessfully attempted to install the parts on the Gulfstream aircraft, Airtec communicated to Aerovation that the parts were not suitable and would require further modification or replacement. According to Aerovation, at Airtec’s request, it sent technicians to Stevens’s facilities to “provide technical assistance” during the installation. Third-Party Compl. § 15, ECF No. 11. Aerovation contends that if the parts could not be properly installed on the Gulfstream aircraft, this failure was due to the faulty work performed by Aery, Stevens, or both, rather than any defective manufacture by Aerovation. Aerovation further claims that Stevens’s engineers lacked the capacity to conduct proper installation. Airtec tendered only partial payment for the materials supplied by Aerovation due to the alleged defects. IH. Procedural History On September 25, 2018, Aerovation filed its Complaint against Airtec for breach of contract due to Airtec’s failure to pay for the aircraft parts. Airtec counterclaimed on October 17, 2018 for breach of contract, breach of express warranty, and breach of implied warranty, claiming

the materials did not conform to the contract specifications. In response to Airtec’s Counterclaim, Aerovation impleaded Aery and Stevens as third-party defendants, asserting claims for common law indemnification and contribution against both companies. DISCUSSION In its Motion, Aery seeks dismissal of the claims against it pursuant to Federal Rule of Civil Procedure 12(b)(2) based on a lack of personal jurisdiction. Stevens seeks dismissal of both the indemnification and contribution claims against it pursuant to Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. Each Motion will be discussed in turn. . I. Aery’s Motion to Dismiss A. Legal Standard It is the plaintiff's burden to establish personal jurisdiction. See Mylan Labs. Inc. v. Akzo, N.V., 2 F.3d 56, 59-60 (4th Cir. 1993). To carry that burden at the pleading stage, the plaintiff need only make a prima facie showing that a defendant is properly subject to this Court’s jurisdiction. Jd. In evaluating the plaintiff's showing, this Court must accept the plaintiff's allegations as true, and it must draw all reasonable inferences and resolve any factual conflicts in the plaintiff's favor. Id. The Court may consider evidence outside the pleadings in resolving a Rule 12(b)(2) motion. CoStar Realty Info., Inc. v. Meissner, 604 F. Supp. 2d. 757, 763-64 (D. Md. 2009). Aery, a Virginia-based limited liability company (“LLC”), asserts that its contacts with Maryland are insufficient to allow this Court to exercise personal jurisdiction over it. A district court’s exercise of personal jurisdiction over a non-resident defendant must satisfy both the long- arm statute of the state in which the court sits and the Due Process Clause of the Fourteenth Amendment to the United States Constitution. Carefirst of Md., Inc. v. Carefirst Pregnancy Ctrs.,

Inc., 334 F.3d 390, 396 (4th Cir. 2003). Aerovation asserts that Aery’s business contacts with Maryland are sufficient for the exercise of personal jurisdiction. The Maryland long-arm statute authorizes jurisdiction over a party which “transacts any business or performs any character of work or service in the State.” Md. Code Ann., Cts. & Jud. Proc. § 6-103(b)(1) (West 2011). Because courts have interpreted the Maryland long-arm statute to reach as far as the Constitution allows, the statutory and due process components of the personal jurisdiction analysis merge. ALS Scan, Inc. v. Dig. Serv. Consultants, Inc., 293 F.3d 707, 710 (4th Cir. 2002).

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Aerovation, Inc. v. Airtec, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/aerovation-inc-v-airtec-inc-mdd-2019.