Agape Flights, Inc. v. Covington Aircraft Engines, Inc.

771 F. Supp. 2d 1278, 2011 U.S. Dist. LEXIS 3559, 2011 WL 97926
CourtDistrict Court, E.D. Oklahoma
DecidedJanuary 12, 2011
DocketCIV-09-492-FHS
StatusPublished
Cited by4 cases

This text of 771 F. Supp. 2d 1278 (Agape Flights, Inc. v. Covington Aircraft Engines, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Agape Flights, Inc. v. Covington Aircraft Engines, Inc., 771 F. Supp. 2d 1278, 2011 U.S. Dist. LEXIS 3559, 2011 WL 97926 (E.D. Okla. 2011).

Opinion

OPINION AND ORDER

FRANK H. SEAY, District Judge.

Before the Court for its consideration is the Motion To Dismiss For Lack Of Personal Jurisdiction (Dkt. No. 88) filed by Third-Party Defendant, Banyan Air Service, Inc. (“Banyan”). Banyan seeks the dismissal of the third-party claims for negligence and contribution filed against it by Defendants/Third-Party Plaintiffs, Pratt & Whitney Canada Corporation (“Pratt & Whitney”) and Hamilton Sundstrand Corporation (“Sundstrand”), and the cross-claims for indemnification and contribution filed against it by Defendant, Covington Aircraft Engines, Inc. (“Covington”). Pratt & Whitney, Sundstrand, and Covington filed responses in opposition Banyan’s motion (Dkt. Nos. 101 and 103). On August 12, 2010, the Court heard arguments on Banyan’s motion. At the conclusion of the hearing, the Court granted Covington leave to engage in limited jurisdictional discovery on the issue of general personal jurisdiction. 1 Deadlines were established for the completion of the limited discovery (October 11, 2010) and for the filing of supplemental briefs by Covington (November 29, 2010) and Banyan (December 13, 2010). 2 Having reviewed and considered *1282 all the materials submitted, the Court finds Banyan’s Motion to Dismiss (Dkt. No. 88) should be granted as this Court finds there is no basis on which to exercise personal jurisdiction over Banyan.

FACTUAL BACKGROUND

This action arises out of the crash of a Cessna Model 208B aircraft, U.S. Registration No. N954PA (the “Aircraft”), on December 20, 2007, in the ocean waters near the Bahamas. The Aircraft was owned and operated by Plaintiff, Agape Flights, Inc. (“Agape”), a Florida corporation with its principal place of business in Venice, Florida. At the time of the crash, the Aircraft was being powered by a PT6A-114A engine, Serial No. PCE-17014 (the “Engine”), which Agape had rented from Covington pursuant to a November 7, 2007, Engine Rental Agreement. Pratt & Whitney is the manufacturer of the Aircraft’s Engine and Sundstrand is the manufacturer of the Fuel Pump, Part No. 025323-150, Serial No. 839 (“Fuel Pump”), which was part of the Aircraft’s Engine. In its Amended Complaint, Agape contends the crash and resultant destruction of the Aircraft was caused by the “defective and unserviceable condition of the Engine, including the fuel pump installed in the Engine.” Amended Complaint (Dkt. No. 60), ¶ 13. In particular, Agape’s investigation has led it to conclude that the crash occurred as a result of an in-flight power loss resulting from the Fuel Pump drive shaft splines being severely worn. Agape seeks to recover from Covington, Pratt & Whitney, Sundstrand, and Kansas Aviation of Independence, LLC (“Kansas Aviation”) for the loss of the Aircraft under theories of negligence, strict products liability, breach of contract, and breach of warranties. 3 In turn, Pratt & Whitney and Sundstrand have asserted third-party claims against Kansas Aviation and Banyan for negligence and contribution. Cov-ington has filed cross-claims against Banyan for indemnification and contribution.

Covington, an Oklahoma corporation with its principal place of business in Ok-mulgee, Oklahoma, operates a business of aircraft maintenance, repair, and overhaul. As part of its operations, Covington provides customers, such as Agape, with rental engines for their aircraft while the customer’s primary engine is being serviced by Covington. As noted above, at the time of the crash on December 20, 2007, the Aircraft was being powered by the Engine, which was a rental engine Covington had provided to Agape pursuant to the November 7, 2007, Engine Rental Agreement. Prior to the Engine being placed on the Aircraft, the Engine’s Fuel Pump was serviced, at the request of Covington, by Kansas Aviation. Kansas Aviation is in the business of repairing and overhauling engine accessories, including fuel pumps. On or about February 10, 2006, Kansas Aviation overhauled the Fuel Pump for Coving-ton at its Kansas facility and shipped the Fuel Pump back to Covington in Oklahoma. 4 Covington placed the overhauled Fuel Pump in the Engine and the Engine was maintained in Covington’s rental pool.

On March 26, 2007, Covington entered into a Engine Rental Agreement with Cap-cana S.A./Africair, Inc. (“Capeana”) for the rental of the Engine to be used and installed on Capcana’s aircraft while Capcana’s engine was being overhauled by Coving-ton. At Capcana’s direction, the Engine *1283 was shipped to Banyan’s Fort Lauderdale, Florida, facility in order for Banyan to install the Engine on Capcana’s aircraft. Banyan is an FBO, or fixed based operator, located at Fort Lauderdale Executive Airport. Banyan provides comprehensive aviation services to general aviation aircraft operators. After the installation of the Engine on Capcana’s aircraft, Capcana experienced performance issues with the Engine and Capcana returned its aircraft to Banyan’s Fort Lauderdale facility for service. Banyan’s inspection of the Engine led to the removal of the Fuel Pump and the fuel control unit. Due to the Engine being a rental from Covington, Banyan contacted Covington via telephone in late July or early August 2007 and determined that the fuel control unit needed to be replaced. The old fuel control unit was shipped by Banyan to Covington and Covington arranged for a new fuel control unit to be shipped to Banyan through International Governor Service (“International Governor”), a Bloomfield, Colorado, company. Banyan received the new fuel control unit on or about August 2, 2007, and Banyan thereafter installed the new fuel control unit and reinstalled the Fuel Pump on the Capcana aircraft. After Capcana’s engine was overhauled by Cov-ington, the Engine was returned to Cov-ington by Capcana and it was ultimately placed in Agape’s Aircraft on or about November 7, 2007, pursuant to Agape’s engine rental agreement with Covington.

The additional discovery conducted by Covington was an attempt to determine Banyan’s business contacts and connections with Oklahoma. Covington attempted to determine the gross revenues Banyan derived from Oklahoma customers for the period 2005 through 2009. These revenues were generated through purchases by Oklahoma customers on Banyan’s interactive website, www.banyanair.com, which contains an online store, Tropic Aero at www.tropicaero.com. The statistical data was broken down by categories: (1) gross revenue and transactions from aircraft/avionies sales to Oklahoma based entities (“Category 1”) and (2) gross revenue and transactions from aircraft/avionics sales to Oklahoma based entities, but actually shipped to a state other than the State of Oklahoma (“Category 2”). 5 For 2005, Banyan’s Oklahoma activity was as follows: Category 1 activity of $8,267.83 in gross revenue and seven (7) transactions and Category 2 activity of $69.12 in gross revenue and one (1) transaction. For 2006, Banyan’s Oklahoma activity was as follows: Category 1 activity of $8,386.26 in gross revenue and nine (9) transactions and Category 2 activity of $94.50 in gross revenue and two (2) transactions.

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Cite This Page — Counsel Stack

Bluebook (online)
771 F. Supp. 2d 1278, 2011 U.S. Dist. LEXIS 3559, 2011 WL 97926, Counsel Stack Legal Research, https://law.counselstack.com/opinion/agape-flights-inc-v-covington-aircraft-engines-inc-oked-2011.